Sunac China Holdings Limited — Proxy Solicitation & Information Statement 2017

May 25, 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 Sunac China Holdings Limited, you should at once hand this circular, together with the enclosed form of proxy, to the purchaser or 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 onward 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.

SUNAC CHINA HOLDINGS LIMITED 融創中國控股有限公司

(incorporated in the Cayman Islands with limited liability)

(Stock Code: 01918)

MAJOR TRANSACTION ACQUISITION OF FURTHER SHARES IN JINKE PROPERTY

Capitalised terms used on this cover page have the same meaning as defined in the section headed “Definitions” in this circular, unless the context requires otherwise.

A letter from the Board is set out on pages 3 to 11 of this circular.

The Initial Acquisition has been approved by written shareholder’s approval obtained from Sunac International, the controlling shareholder of the Company, pursuant to Rule 14.44 of the Listing Rules in lieu of a general meeting of the Company. This circular is being dispatched to the Shareholders for information only.

26 May 2017

CONTENTS

				Page
Definitions	. . . . . .		. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	1
Letter from the Board . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .				3
Appendix I		—	Financial Information of the Group . . . . . . . . . . . . . . . . . . . . . . . .	12
Appendix II		—	Financial Information of Jinke Property . . . . . . . . . . . . . . . . . . . . .	15
Appendix III		—	Management Discussion and Analysis of Jinke Property . . . . . . . .	516
Appendix IV		—	Unaudited Pro Forma Financial Information of the Group . . . . . .	698
Appendix V		—	General information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	704

— i —

DEFINITIONS

In this circular, the following expressions shall have the meanings set out below unless the context requires otherwise:

“Acquisitions” the Initial Acquisition and the Further Acquisition “Announcement” the announcement of the Company dated 24 January 2017 “Board” the board of Directors

“close associate(s)” has the meaning ascribed to it under the Listing Rules

“Company” Sunac China Holdings Limited, a company incorporated in the Cayman Islands with limited liability, and the issued Shares of which are listed on the Main Board of the Stock Exchange (stock code: 1918)

“connected person(s)” has the meaning ascribed to it under the Listing Rules

• “controlling shareholder(s)” has the meaning ascribed to it under the Listing Rules

“Director(s)” directors of the Company “Further Acquisition” the acquisition of an aggregate of 98,950,296 Jinke Shares by an indirect wholly-owned subsidiary of the Company (namely, Runding Property) through the open market from 14 April 2017 to 28 April 2017

• “Group” the Company and its subsidiaries

• “HK$” Hong Kong dollars, the lawful currency of Hong Kong

“HKFRS” the Hong Kong Financial Reporting Standards issued by the Hong Kong Institute of Certified Public Accountants from time to time “Hong Kong” the Hong Kong Special Administrative Region of the PRC “Initial Acquisition” the acquisition of an aggregate of 329,862,211 Jinke Shares by the indirect wholly-owned subsidiaries of the Company (namely, Runze Property and Runding Property) through the open market from 11 November 2016 to 24 January 2017

“Jinke Property” Jinke Property Group Co., Ltd.* (金科地產集團股份有限公 司) “Jinke Shares” the shares in the share capital of Jinke Property

— 1 —

DEFINITIONS

“Jujin Property”	Tianjin Jujin Property Management Ltd.* (天津聚金物業管理	Tianjin Jujin Property Management Ltd.* (天津聚金物業管理
	有限公司), an indirect wholly-owned subsidiary of	the
	Company established in the PRC
“Latest Practicable Date”	23 May 2017, being the latest practicable date for the purpose
	of ascertaining certain information for inclusion in	this
	circular
“Listing Rules”	the Rules Governing the Listing of Securities on the Stock
	Exchange
“PRC”	the People’s Republic of China
“PRC GAAP”	the generally accepted accounting principles in the PRC
“PRC GAAS”	the generally accepted auditing standards in the PRC
“RMB”	Renminbi, the lawful currency of the PRC
“Runding Property”	Tianjin Runding Property Management Ltd.* (天津潤鼎物業
	管理有限公司), an indirect wholly-owned subsidiary of	the
	Company established in the PRC
“Runze Property”	Tianjin Runze Property Management Ltd.* (天津潤澤物業管
	理有限公司), an indirect wholly-owned subsidiary of	the
	Company established in the PRC
“Share(s)”	ordinary share(s) of HK$0.1 each in the share capital of	the
	Company
“Shareholder(s)”	holder(s) of the Share(s)
“Stock Exchange”	The Stock Exchange of Hong Kong Limited
“Subscription”	the subscription of 907,029,478 Jinke Shares by Jujin
	Property, details of which are set out in the Company’s
	announcement dated 21 September 2016
“substantial shareholder(s)”	has the meaning ascribed to it under the Listing Rules
“Sunac International”	Sunac International Investment Holdings Ltd., a company
	incorporated in the British Virgin Islands with limited
	liability, which is the controlling shareholder of the Company
“%”	per cent.

* For identification purposes only

— 2 —

LETTER FROM THE BOARD

SUNAC CHINA HOLDINGS LIMITED 融創中國控股有限公司

(incorporated in the Cayman Islands with limited liability)

(Stock Code: 01918)

Executive Directors: Mr. SUN Hongbin (Chairman) Mr. WANG Mengde (Chief Executive Officer) Mr. JING Hong Mr. CHI Xun Mr. TIAN Qiang Mr. SHANG Yu Mr. HUANG Shuping

Independent non-executive Directors:

Mr. POON Chiu Kwok Mr. ZHU Jia Mr. LI Qin Mr. MA Lishan Mr. TSE Chi Wai

Registered Office: 190 Elgin Avenue George Town Grand Cayman KY1- 9005 Cayman Islands

Head Office: 10/F, Building C7 Magnetic Plaza Binshuixi Road Nankai District Tianjin 300381 PRC

Principal Place of Business in Hong Kong: 36/F, Tower Two, Times Square 1 Matheson Street Causeway Bay Hong Kong

26 May 2017

To the Shareholders

Dear Sir/Madam,

MAJOR TRANSACTION ACQUISITION OF FURTHER SHARES IN JINKE PROPERTY

INTRODUCTION

Reference is made to the Announcement in relation to, among other matters, the Initial Acquisition which involved the acquisition of in aggregate 329,862,211 Jinke Shares by the indirect wholly-owned subsidiaries of the Company (namely, Runze Property and Runding Property) through the open market from 11 November 2016 to 24 January 2017 and, after aggregation with the Subscription, constituted a major transaction of the Company under Chapter 14 of the Listing Rules.

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LETTER FROM THE BOARD

This circular is despatched to the Shareholders for information purposes only. No general meeting will be convened to approve the Initial Acquisition as the Company had obtained written approval for the Initial Acquisition in accordance with Rule 14.44 of the Listing Rules from Sunac International, the controlling shareholder of the Company, which held approximately 52.89% of the issued share capital of the Company as at the date of such written approval. In addition, to the best of the Directors’ knowledge, information and belief, after having made all reasonable enquiries, none of the Shareholders had any material interest in the Initial Acquisition and therefore no shareholder would be required to abstain from voting if the Company were to convene a general meeting for the approval of the Initial Acquisition.

From 14 April 2017 to 28 April 2017, the Group further acquired 98,950,296 Jinke Shares at a total consideration of RMB596,267,496.13 through the open market. Such Further Acquisition is not required to comply with the reporting, announcement and shareholders’ approval requirements under Chapter 14 of the Listing Rules.

As at the Latest Practicable Date, the Company indirectly held 1,335,841,985 Jinke Shares, representing approximately 25% of the total issued shares of Jinke Property.

The purpose of this circular is to provide you with, among others, (i) further details of the Acquisitions; (ii) the financial information of the Group; (iii) the financial information of Jinke Property; (iv) the unaudited pro forma financial information of the Group; and (v) other information as required under the Listing Rules.

THE INITIAL ACQUISITION

Reference is made to the Company’s announcement dated 21 September 2016 in relation to the Subscription pursuant to which a wholly-owned subsidiary of the Company subscribed for 907,029,478 Jinke Shares at a total consideration of RMB3,999,999,997.98.

The Board announced on 24 January 2017 that during the period from 11 November 2016 to 24 January 2017, the Group further acquired an aggregate of 329,862,211 Jinke Shares through the open market at the then prevailing market prices, representing approximately 6.17% of the total issued shares of Jinke Property as at the Announcement date, at a total consideration of approximately RMB1,723,421,192.05. The consideration for the Initial Acquisition had been settled by the internal resources of the Group.

After the Initial Acquisition and taking into account the Subscription, the Company indirectly held a total of 1,236,891,689 Jinke Shares, representing approximately 23.15% of the total issued shares of Jinke Property as at the Announcement date. The total consideration paid by the Group for such Jinke Shares amounted to approximately RMB5,723,421,190.03.

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LETTER FROM THE BOARD

Jinke Property remained as an associate of the Company after the Initial Acquisition.

As the Initial Acquisition was made through the open market, the Company is unable to identify the market vendors. To the best of the knowledge, information and belief of the Directors, having made all reasonable enquiries, the market vendors are independent of the Company and connected persons of the Company.

THE FURTHER ACQUISITION

From 14 April 2017 to 28 April 2017, the Group further acquired through the open market in aggregate 98,950,296 Jinke Shares at a total consideration of RMB596,267,496.13 at the then prevailing market prices. The consideration for such on-market acquisitions had been settled by the internal resources of the Group. As such acquisitions were made through the open market, the Company is unable to identify the market vendors. To the best of the knowledge, information and belief of the Directors, having made all reasonable enquiries, the market vendors are independent of the Company and the connected persons of the Company.

As at the Latest Practicable Date, the Company indirectly held 1,335,841,985 Jinke Shares, representing approximately 25% of the total issued shares of Jinke Property. The total consideration paid by the Group for such Jinke Shares amounted to approximately RMB6,319,688,686.16. In accordance with applicable laws of the PRC, the 907,029,478 Jinke Shares subscribed in the Subscription may not be disposed within 12 months upon completion of their issue, while the aggregate of 428,812,507 Jinke Shares acquired in the Initial Acquisition and the Further Acquisition by the Company, a shareholder with more than 5% shareholding in Jinke Property, may not be disposed within 6 months after the last batch of the Acquisitions.

Jinke Property remains as an associate of the Group after the Further Acquisition and all the Jinke Shares held by the Group are accounted for by the Company as equity investment.

INFORMATION ON JINKE PROPERTY

General

Jinke Property has been listed on the Shenzhen Stock Exchange (stock code: 000656) since 1996 and is a diversified comprehensive enterprise focusing on real estate development. The real estate projects of Jinke Property are mainly located in the regions of “Three Circles and One Belt”, namely, the Yangtze River Delta Economic Circle, Beijing-Tianjin-Hebei Economic Circle, Chengdu-Chongqing Economic Circle and Yangtze River Economic Belt, covering cities such as Chongqing, Beijing, Tianjin, Suzhou, Nanjing, Chengdu and Wuhan. Based on publicly available information, Jinke Property currently has about 72 real estate projects under construction, and its land reserves available for construction exceed 18.46 million sq.m..

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LETTER FROM THE BOARD

Financial information

Based on publicly available information, the audited consolidated total net asset of Jinke Property as at 31 December 2016 was approximately RMB22,532 million, and the audited net profits of Jinke Property for the three financial years ended 31 December 2016 were as follows:

			For the year ended	For the year ended	For the year ended
			31 December 2014	31 December 2015	31 December 2016
			(approximate	(approximate	(approximate
			RMB’000)	RMB’000)	RMB’000)
Net	profit	before taxation	753,433.77	1,784,680.15	2,231,467.50
Net	profit	after taxation	863,039.06	1,233,646.81	1,790,348.97

Please refer to Appendices II and III to this circular for the audited consolidated financial statements and management discussion and analysis on the results of operations of Jinke Property for the three years ended 31 December 2016 as extracted from the published reports of Jinke Property.

Property interests

Please refer to “(5) Other descriptions” under Note 6 “Inventories” to the audited consolidated financial statements of Jinke Property for the year ended 31 December 2016 in pages 405 to 414 of Appendix II and “2. Operation and development of the Company’s real estate projects during the reporting period” in pages 639 to 648 of Appendix III to this circular for an overview of the property interests of Jinke Property as at 31 December 2016 as extracted from the annual report of Jinke Property for the year ended 31 December 2016.

FINANCIAL EFFECTS OF THE ACQUISITIONS

Based on the annual report of the Group for the year ended 31 December 2016, as at 31 December 2016, the Group had total assets, total liabilities and net assets of approximately RMB293,183 million, RMB257,772 million and RMB35,411 million respectively.

Based on the growth prospects of Jinke Property and the positive financial performance of Jinke Property with rising net profit for the past three years, the Directors believe that the Acquisitions would bring good investment return to the Group and have a positive impact on the profits of the Group. As the consideration payable by the Group for the Acquisitions was paid to the respective market vendors in cash, and the Group’s interests in Jinke Property are recognized in the Group’s consolidated financial statements using the equity method whereby the assets (including the book value of cash) of Jinke Property will not be consolidated into the financial statements of the Group, the Directors believe that upon completion of the Acquisitions which were settled in cash, there was an immediate negative impact on the the Group’s cashflow, however with the strong operating performance of Jinke Property and dividends which may be distributed by Jinke Property to its shareholders from time to time, the Acquisitions would have positive impact on the cashflows of the Group in the long run, and would have no material impact on the gearing ratio of the Group.

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LETTER FROM THE BOARD

For details of the unaudited pro forma financial information on the Group following completion of the Acquisitions, please refer to Appendix IV to this circular.

REASONS FOR THE ACQUISITIONS

Jinke Property is a listed company primarily engaged in property development, supplemented with diversified operations in, inter alia, community lifestyle services, hotel operation management, gardening and decoration services. Jinke Property and its subsidiaries have Class 1 or Class A qualifications in the areas of, inter alia, property development, property management, gardening and greening, landscaping design and architectural decoration works. The real estate business of Jinke Property is mainly distributed in the regions of “Three Circles and One Belt”, namely, the Yangtze River Delta Economic Circle, Beijing-Tianjin-Hebei Economic Circle, Chengdu-Chongqing Economic Circle and Yangtze River Economic Belt, its development projects are mainly concentrated in major first-tier and second-tier cities, such as Chongqing, Beijing, Tianjin, Suzhou, Nanjiang, Chengdu and Wuhan, with abundant land bank resources. Under the leadership of the current management team of Jinke Property, Jinke Property has established core competitiveness in, inter alia, precise strategic planning capabilities, sustainable product innovation capabilities, quality customer service capabilities and solid cost control capabilities. The Company is optimistic about the future prospects of Jinke Property and believes that the investment will bring good investment returns to the Company.

Given that the Acquisitions were made through the open market at the then prevailing market prices, the Directors (including the independent non-executive Directors) consider that the Acquisitions were made on normal commercial terms which are fair and reasonable and is in the interest of the Company and the Shareholders as a whole.

POSSIBLE FUTURE ACQUISITIONS

Within the next 12 months, the Company plans to continue acquiring not less than 20,000,000 shares in Jinke Property at the price range authorized by the Board and such possible future acquisitions will depend on, among other factors, the then prevailing share price and business development conditions of Jinke Property and the financing arrangement of the Company.

INFORMATION ON THE COMPANY

The Company is a company incorporated in the Cayman Islands with limited liability, and the shares of which are listed on the Main Board of the Stock Exchange. As specialized in integrated development of residential and commercial properties, the Company is one of the leading real estate developers in the PRC. In line with its regional focus and high-end positioning strategy, the Company has developed or is developing many high-quality property projects ranging from high-rise residences, detached villas, retail properties and offices in tier 1 cities, surrounding cities of tier 1 cities and core cities in the PRC.

LISTING RULES IMPLICATIONS

The Initial Acquisition, on a standalone basis, constitutes a discloseable transaction for the Company under Chapter 14 of the Listing Rules as one or more of the applicable percentage ratios

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LETTER FROM THE BOARD

(pursuant to Rule 14.07 of the Listing Rules) in respect of the Initial Acquisition are more than 5% but less than 25%. By virtue of Rule 14.22 of the Listing Rules, the Initial Acquisition and the Subscription are aggregated for the purpose of Chapter 14 of the Listing Rules as these transactions involve the acquisition of equity interest in the same entity (that is, Jinke Property) completed within 12 months. As one or more of the applicable percentage ratios in respect of the Initial Acquisition and the Subscription, after aggregation, are more than 25% but less than 100%, the Initial Acquisition constitutes a major transaction for the Company under Chapter 14 of the Listing Rules and is subject to the reporting, announcement and shareholders’ approval requirements pursuant to Chapter 14 of the Listing Rules.

In respect of the Further Acquisition, on a standalone basis, the applicable percentage ratios (pursuant to Rule 14.07 of the Listing Rules) are less than 5%. In addition, aggregation of the Further Acquisition with the Initial Acquisition and the Subscription would not cause any of the applicable percentage ratios to exceed 100%. In light of the foregoing, the Further Acquisition is not required to comply with the reporting, announcement and shareholders’ approval requirements under Chapter 14 of the Listing Rules.

WRITTEN SHAREHOLDER’S APPROVAL

Pursuant to Rule 14.44 of the Listing Rules, in lieu of a resolution to be passed at a general meeting of the Company, written shareholder’s approval for the Initial Acquisition had been obtained from the controlling shareholder of the Company, namely Sunac International, which held 2,042,623,884 Shares, representing approximately 52.89% of the issued share capital of the Company as at the date of such written approval. To the best of the Directors’ knowledge, information and belief, after having made all reasonable enquiries, none of the Shareholders had any material interest in the Initial Acquisition and therefore no shareholder would be required to abstain from voting if the Company were to convene a general meeting for the approval of the Initial Acquisition.

WAIVER FROM STRICT COMPLIANCE WITH THE REQUIREMENTS UNDER THE LISTING RULES

Waiver from strict compliance with Rule 14.67(6)(a)(i) of the Listing Rules

Pursuant to Rule 14.67(6)(a)(i) of the Listing Rules, the Company is required to include in this circular an accountant’s report on Jinke Property prepared in accordance with Chapter 4 of the Listing Rules. The accounts on which such report is based must relate to a financial period ended six months or less before this circular is issued, and the financial information on Jinke Property must be prepared using accounting policies which should be materially consistent with those of the Company. In this regard, the Company is required under Chapter 4 of the Listing Rules to include an accountant’s report on Jinke Property with the financial information of Jinke Property for the three financial years ended 31 December 2016 prepared under HKFRS.

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LETTER FROM THE BOARD

As the Company considers that the strict compliance with Rule 14.67(6)(a)(i) of the Listing Rules would be unduly burdensome, the Company has applied for waiver from strict compliance of the aforesaid Listing Rules on the following grounds:

• (a) Jinke Property is listed on the Shenzhen Stock Exchange. Jinke Property is required to publish its audited financial statements, on a regular basis, for each financial year. The audited financial statements of Jinke Property for the three (3) financial years ended 31 December 2014, 2015 and 2016 (the “ Jinke Property Audited Accounts ”) were published and made available at the websites of Jinke Property (http://www.jinke.com/investors/dqbg/) and the Shenzhen Stock Exchange (http://disclosure.szse.cn/m/drgg_search.htm?secode=000656). The Jinke Property Audited Accounts have been prepared and audited in accordance with PRC GAAP and are audited by the independent auditors of Jinke Property, 天健會計師事 務所 (Pan-China Certified Public Accountants) (“ Pan-China CPA ”) following PRC GAAS. Pan-China CPA has expressed an unqualified opinion on the Jinke Property Audited Accounts.

• (b) Upon completion of the Acquisitions, Jinke Property will not become a subsidiary of the Company, and the results of Jinke Property will not be consolidated into the financial statements of the Company. With only a minority shareholding in Jinke Property, the Jinke Shares acquired by the Company under the Acquisitions, together with those Jinke Shares already held by the Company, will be accounted for by the Company only as equity investment.

• (c) Jinke Property has published its audited consolidated financial statements pursuant to the applicable requirements in the PRC and does not agree to re-state and re-audit its consolidated financial statements in accordance with the HKFRS, the standards which have been adopted by the Company. Even assuming Jinke Property is prepared to provide extensive access to its accounting records and provide explanations in relation to the same, the Company would have to incur substantial cost and expense to re-audit the financial data and information contained in such audited financial statements and re-state them in accordance with the HKFRS. Moreover, such re-audit and re-statement would produce no material increase in benefit to the Shareholders and potential investors of the Company.

Waiver from strict compliance with Rule 5.02 of the Listing Rules

Pursuant to Rule 5.02 of the Listing Rules, it is required that the valuation of the properties of Jinke Property be included in this circular as it is principally engaged in real estate development in the PRC and its assets comprise mainly of property interests.

The Company has applied to the Stock Exchange for a waiver in relation to Rule 5.02 of the Listing Rules by reason of the fact that, amongst others, Jinke Property is a listed company whose financial and other information is already generally available to the public, Jinke Property will not become a subsidiary of the Company and its results not be consolidated into the financial statements of the Company, and Jinke Property has no obligation to assist the Company in preparing valuation of Jinke Property’s property interests.

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LETTER FROM THE BOARD

Alternative disclosures

The Company has included the following information in this circular as alternative disclosure of an accountant’s report under Chapter 4 of the Listing Rules and a valuation report under Chapter 5 of the Listing Rules.

• (a) the audited financial statements of Jinke Property for the years ended 31 December 2014, 2015 and 2016 as extracted from the published documents of Jinke Property, which are set out under “EXTRACT OF AUDITED FINANCIAL STATEMENTS OF JINKE PROPERTY” (pages 15 to 512) in Appendix II to this circular;

• (b) the management discussion and analysis of the results of operations of Jinke Property for the years ended 31 December 2014, 2015 and 2016 as extracted from the published documents of Jinke Property, which are set out in Appendix III to this circular (pages 516 to 697);

• (c) an analysis on the accounting policies adopted by Jinke Property and those adopted by the Company as to whether material differences exist between them, which is reported on by Pan-China CPA in accordance with Hong Kong Standard of Assurance Engagement 3000. Such analysis is set out under “ANALYSIS ON THE ACCOUNTING POLICIES ADOPTED BY THE COMPANY (HKFRS) AND JINKE PROPERTY (PRC GAAP)” in Appendix II to this circular (pages 513 to 516); and

• (d) an overview of the property interests of Jinke Property as at 31 December 2016 as extracted from the published report of Jinke Property for the year ended 31 December 2016, as contained in (i) “(5) Other descriptions” under Note 6 “Inventories” to the audited consolidated financial statements of Jinke Property for the year ended 31 December 2016 in pages 405 to 414 of Appendix II and (ii) “2. Operation and development of the Company’s real estate projects during the reporting period” in pages 639 to 648 of Appendix III to this circular.

The Company considers that the alternative disclosures described above would provide relevant, meaningful and reliable information on the financial position of Jinke Property for the financial years ended 31 December 2014, 2015 and 2016 and property interests of Jinke Property as at 31 December 2016, and the preparation of the accountant’s report and valuation report of Jinke Property for inclusion in this circular in strict compliance with the requirements of Rules 14.67(6)(a)(i) and 5.02 of the Listing Rules would be unduly burdensome and would result in unnecessary time and effort being incurred that may not add much value to the Shareholders in understanding the financial position and property interests of Jinke Property.

Based on the information provided by the Company and the alternative disclosures described above, the Stock Exchange has granted the Company waiver from strict compliance with the requirements under Rules 14.67(6)(a)(i) and 5.02 of the Listing Rules.

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LETTER FROM THE BOARD

RECOMMENDATION

The Directors (including the independent non-executive Directors) consider that the terms of the Acquisitions are fair and reasonable and the Acquisitions are in the interest of the Company and the Shareholders as a whole. Although a general meeting will not be convened by the Company to approve the Acquisitions, if such a general meeting were to be convened by the Company, the Board would recommend the Shareholders to vote in favour of the resolution to approve the Acquisitions.

ADDITIONAL INFORMATION

Your attention is also drawn to the additional information set out in the appendices to this Circular.

By Order of the Board Sunac China Holdings Limited SUN Hongbin Chairman

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FINANCIAL INFORMATION OF THE GROUP

APPENDIX I

1. FINANCIAL INFORMATION OF THE GROUP

The audited consolidated financial statements of the Group for the three years ended 31 December 2014, 2015 and 2016 together with the relevant notes thereto are disclosed in the following documents which have been published on the website of the Stock Exchange (www.hkexnews.hk) and the website of the Company (http://www.sunac.com.cn):

• pages 58 to 140 in the annual report of the Company for the year ended 31 December 2014 published on 16 April 2015;

• pages 71 to 154 in the annual report of the Company for the year ended 31 December 2015 published on 18 April 2016; and

• pages 98 to 196 in the annual report of the Company for the year ended 31 December 2016 published on 18 April 2017.

Each of the said consolidated financial statements of the Group is incorporated by reference to this circular and forms part of this circular. The management discussion and analysis of the Company for the years ended 31 December 2014, 2015 and 2016 and are disclosed in the published annual reports of the Company for the relevant period. Please also see below the links to the relevant annual reports of the Company:

• Annual report of the Company for the year ended 31 December 2014 :

http://www.hkexnews.hk/listedco/listconews/SEHK/2015/0416/LTN20150416362.pdf

• Annual report of the Company for the year ended 31 December 2015 :

http://www.hkexnews.hk/listedco/listconews/SEHK/2016/0418/LTN20160418433.pdf

• Annual report of the Company for the year ended 31 December 2016

http://www.hkexnews.hk/listedco/listconews/SEHK/2017/0418/LTN20170418616.pdf

2. INDEBTEDNESS STATEMENT

(i) Borrowings and debts

As at the close of business on 31 March 2017, being the latest practicable date for the purpose of this statement of indebtedness prior to the printing of this circular, the Group had outstanding borrowings of approximately RMB138,587.2, of which RMB109,457.0 were secured or jointly secured by properties under development, completed properties held for sale and certain equity interests of the Company’s subsidiaries (including those legally transferred as collateral).

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FINANCIAL INFORMATION OF THE GROUP

APPENDIX I

The Group’s contingent liabilities at the close of 31 March 2017 are as follows:

	RMB million
Guarantees in respect of mortgage facilities for certain purchasers
of the Group’s properties	19,043.1
Guarantees in respect of borrowings owed by joint ventures and
associates of the Group	14,332.5

(ii) General

Save as disclosed above and apart from intra-group liabilities and normal trade payables in the normal course of business, as at the close of business on 31 March 2017, the Group did not have any debt securities issued and outstanding, and authorised or otherwise created but unissued, bank overdrafts, charges or debentures, mortgages, loans or other similar indebtedness or any finance lease commitments, hire purchase commitments, liabilities under acceptances (other than normal trade bills), acceptance credits or any guarantees.

The Directors have confirmed that there have been no material changes in the indebtedness and contingent liabilities of the Group since 31 March 2017.

3. MATERIAL ADVERSE CHANGE

The Company is 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 financial statements of the Company were made up.

4. WORKING CAPITAL

The Directors are of the opinion that, after taking into account the financial resources available to the Group including the available credit facilities and the Group’s internally generated funds and the cash flow impact of the Acquisitions, the Group has sufficient working capital to satisfy its requirements for at least the next 12 months following the date of this circular.

5. FINANCIAL AND TRADING PROSPECTS OF THE GROUP

The Group will continue to insist on the strategy of regional in-depth development to further consolidate and develop its market position and influence in the existing regions and cities. On the other hand, the Group will continue to focus on the development and management of high-end properties and focus on building high-end premium properties for customers in a persistent way.

— 13 —

FINANCIAL INFORMATION OF THE GROUP

APPENDIX I

The unaudited consolidated pro forma financial information of the Group illustrating the financial impact of the Acquisitions on the assets and liabilities of the Group is set out in Appendix IV to this circular. The pro forma financial information of the Group has been prepared for illustrative purpose only, based on the judgments and assumptions of the Directors, and, due to its hypothetical nature, it may not give a true picture of the financial position of the Group as at the date of completion of the Acquisitions or any future date.

— 14 —

FINANCIAL INFORMATION OF JINKE PROPERTY

APPENDIX II

1. EXTRACT OF AUDITED FINANCIAL STATEMENTS OF JINKE PROPERTY

The following is an extract of the audited financial statements of Jinke Property for the years ended 31 December 2014, 2015 and 2016, which were prepared in accordance with the PRC GAAP, as extracted from the respective annual reports and financial statements of Jinke Property for the years ended 31 December 2014, 2015 and 2016. These financial statements were issued in Chinese and the English translated version is provided for information purposes only. In case of discrepancies between the two versions, the Chinese version shall prevail.

The annual reports and financial statements of Jinke Property for the years ended 31 December 2014, 2015 and 2016 are available at the websites of Jinke Property (http://www.jinke.com/investors/dqbg/) and the Shenzhen Stock Exchange (http://disclosure.szse.cn/m/drgg_search.htm?secode=000656).

AUDITED FINANCIAL STATEMENTS OF JINKE PROPERTY FOR THE YEAR ENDED 31 DECEMBER 2014

I. Audit report

Type of audit opinions Standard unqualified audit opinions Signing date of the audit report 29 March 2015 Name of auditing body Pan-China Certified Public Accountants (special general partnership) No. of audit report Tian Jian Shen No. 8-77 [2015] Name of CPA Liang Zhengyong, Cheng Lan

Audit Report

Tian Jian Shen No. 8-77 [2015]

All shareholders of Jinke Property

Group Co., Ltd.:

We have audited the attached financial statements of Jinke Property Group Co., Ltd. (hereinafter referred to as “Jinke Co., Ltd.”), including the consolidated and the parent company’s balance sheets as at 31 December 2014, the consolidated and the parent company’s income statements of 2014, consolidated and the parent company’s cash flow statements, consolidated and the parent company’s statements of changes in owners’ equity and notes to financial statements.

I. Responsibility of the management for the financial statements

Preparing and fairly presenting financial statements are responsibilities of the management of Jinke Co., Ltd. These responsibilities include: (1) preparing financial statements in accordance with Accounting Standards for Business Enterprises, which achieve fair presentation in the mean time; and (2) designing, implementing and maintaining necessary internal control to avoid material misstatement resulting from fraudulence or mistakes.

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FINANCIAL INFORMATION OF JINKE PROPERTY

APPENDIX II

II. Responsibility of CPAs

Our responsibility is to provide audit opinions on the financial statements based on our audit. We conducted our audit pursuant to China’s Independent Auditing Standards. The standards contained thereof require that we shall abide by professional ethics code for CPAs of China, plan and perform the audit to obtain reasonable assurance about whether or not the financial statements are free from material misstatement.

Our audit work includes implementing the audit procedure to obtain audit evidence relating to the amounts and disclosure of the financial statements. The audit procedure selected depends on the judgment of the CPAs, including assessment of the risk of material misstatement resulting from fraudulence or mistakes. While engaging in risk evaluation, CPAs took into consideration the internal control related to preparing and fairly presenting financial statements, with the purpose of designing proper audit procedure. The audit also includes assessing the appropriateness of accounting principles used and the rationality of the accounting estimates made by the management, as well as evaluating the overall financial statement presentation.

We believe the audit evidence we obtained is adequate and appropriate and provides a basis for us to give our opinions.

III. Auditors’ Opinions

In our opinion, Jinke Co., Ltd.’s financial statements are, in all material respects, prepared in accordance with Accounting Standards for Business Enterprises, and fairly present the consolidated and parent company’s financial position of Jinke Co., Ltd. as at 31 December 2014 as well as the consolidated and parent company’s operation performance and cash flow in 2014.

Pan-China Certified Public Accountants (special general partnership) Hangzhou, China

Certified Public Accountant of China: Liang Zhengyong

Certified Public Accountant of China: Cheng Lan 29 March 2015

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FINANCIAL INFORMATION OF JINKE PROPERTY

APPENDIX II

II. Financial statement

Unit: RMB

1. Consolidated balance sheet

Prepared by: Jinke Property Group Co., Ltd.

31 December 2014

Item Current assets: Monetary fund Settlement provision Lendings Financial assets at fair value through profit or loss Derivative financial assets Notes receivable Accounts receivable Advance payments Premiums receivable Reinsurance accounts receivable Reinsurance contract reserves receivable Interests receivable Dividends receivable Other receivables Financial assets held under resale agreements Inventories Assets classified as held for sale Non-current assets maturing within one year Other current assets Total current assets	Balance at the end of the period 7,527,131,604.31 — — — — 15,300,000.00 709,008,179.14 796,701,986.10 — — — — — 1,737,074,275.37 — 62,262,559,625.16 — — 2,136,948,630.59 75,184,724,300.67	Unit: RMB Balance at the beginning of the period 6,364,503,639.90 — — 2,340,000.00 — 1,050,000.00 210,514,538.67 1,191,785,760.11 — — — — — 1,823,074,182.38 — 45,996,490,254.23 — — 1,579,795,621.08
		57,169,553,996.37

— 17 —

FINANCIAL INFORMATION OF JINKE PROPERTY

APPENDIX II

Item Non-current assets: Issue of loans and advances Available-for-sale financial assets Held-to-maturity investment Long-term receivables Long-term equity investments Investment properties Fixed assets Construction in progress Project materials Disposal of fixed assets Production-type biological assets Oil and gas assets Intangible assets Development expenses Goodwill Long-term prepaid expenses Deferred tax assets Other non-current assets Total non-current assets Total assets	Balance at the end of the period — — — — 336,774,746.08 2,905,436,061.00 1,132,931,471.61 653,283,292.96 — — — — 60,534,955.03 — 591,144,730.77 21,437,885.95 1,179,539,241.37 — 6,881,082,384.77 82,065,806,685.44	Balance at the beginning of the period — 22,705,783.60 — — 804,998,882.41 2,778,096,875.94 542,938,144.86 3,861,892.25 — — — — 48,858,096.68 — 7,368,391.71 20,812,716.14 995,860,472.35 —
		5,225,501,255.94
		62,395,055,252.31

— 18 —

FINANCIAL INFORMATION OF JINKE PROPERTY

APPENDIX II

Item Current liabilities: Short-term borrowings Borrowings from the central bank Deposits accepted and deposits from banks and other financial institutions Placements from banks and other financial institutions Financial liabilities measured at fair value through profit or loss Derivative financial liabilities Notes payable Accounts payable Advance receipts Financial assets sold for repurchase Fees and commissions payable Payroll payable Taxes payable Interest payable Dividends payable Other payables Reinsurance accounts payable Insurance contract reserve Funds from securities trading agency Funds from securities underwriting agency Liabilities classified as held for sale Non-current liabilities maturing within one year Other current liabilities Total current liabilities	Balance at the end of the period 2,206,670,000.00 — — — — — 1,361,651,268.76 7,174,548,574.62 22,430,623,471.25 — — 223,355,293.73 513,991,683.18 347,675,641.14 23,912,698.46 2,595,649,056.46 — — — — — 8,831,319,600.00 — 45,709,397,287.60	Balance at the beginning of the period 1,980,000,000.00 — — — — — 1,667,451,647.10 4,676,239,383.01 18,668,331,885.17 — — 186,060,616.51 876,080,517.34 114,532,803.87 23,912,698.46 3,377,557,908.15 — — — — — 5,673,860,000.00 —
		37,244,027,459.61

— 19 —

FINANCIAL INFORMATION OF JINKE PROPERTY

APPENDIX II

Item Non-current liabilities: Long-term borrowings Bonds payable Including: Preferred shares Perpetual bonds Long-term payables Long-term payroll payable Special payables Foreseeable liabilities Deferred earnings Deferred tax liabilities Other non-current liabilities Total non-current liabilities Total liabilities	Balance at the end of the period 21,311,210,000.00 — — — — — — 72,928,871.54 516,060,205.86 1,290,000,000.00 23,190,199,077.40 68,899,596,365.00	Balance at the beginning of the period 12,660,654,672.00 — — — — — — 62,807,756.66 505,051,678.82 1,995,000,000.00
		15,223,514,107.48
		52,467,541,567.09

— 20 —

APPENDIX II

FINANCIAL INFORMATION OF JINKE PROPERTY

Item Owners’ equity: Share capital Other equity instruments Including: Preferred shares Perpetual bonds Capital reserves Less: Treasury shares Other comprehensive income Special reserves Surplus reserves General risk reserves Undistributed profits Total equity attributable to owners of the parent company Minority interests Total owners’ equity Total liabilities and owners’ equity	Balance at the end of the period 1,378,540,051.00 — — 2,102,318,777.08 — 594,504,975.70 — 161,768,591.16 — 6,292,813,928.44 10,529,946,323.38 2,636,263,997.06 13,166,210,320.44 82,065,806,685.44	Balance at the beginning of the period 1,158,540,051.00 — — 175,205,436.32 — 559,740,586.31 — 301,114,786.54 — 5,657,563,669.18
		7,852,164,529.35
		2,075,349,155.87
		9,927,513,685.22
		62,395,055,252.31

Legal representative: Person in charge of accounting: Huang Hongyun Li Hua

Officer-in-charge of accounting institution: Liu Shaojun

— 21 —

APPENDIX II

FINANCIAL INFORMATION OF JINKE PROPERTY

1. Balance sheet of parent company

Item Current assets: Monetary fund Financial assets measured at fair value through profit or loss Derivative financial assets Notes receivable Accounts receivable Advance payments Interests receivable Dividends receivable Other receivables Inventories Assets classified as held for sale Non-current assets maturing within one year Other current assets Total current assets	Balance at the end of the period 817,641,069.73 — — — 13,226,300.73 289,593.47 — 878,442,799.70 13,837,733,512.10 369,449,025.12 — — 17,871,232.94 15,934,653,533.79	Unit: RMB Balance at the beginning of the period 607,646,368.24 — — — 466,603.16 604,272,700.18 — — 18,585,274,622.91 433,510,324.62 — — 8,410,765.90
		20,239,581,385.01

— 22 —

FINANCIAL INFORMATION OF JINKE PROPERTY

APPENDIX II

Item Non-current assets: Available-for-sale financial assets Held-to-maturity investment Long-term receivables Long-term equity investments Investment properties Fixed assets Construction in progress Project materials Disposal of fixed assets Production-type biological assets Oil and gas assets Intangible assets Development expenses Goodwill Long-term prepaid expenses Deferred tax assets Other non-current assets Total non-current assets Total assets	Balance at the end of the period — — — 11,152,637,847.75 1,383,785,332.99 7,564,875.95 — — — — — 6,997,070.72 — — 7,873,890.52 47,051,284.06 — 12,605,910,301.99 28,540,563,835.78	Balance at the beginning of the period — — — 7,347,713,887.44 1,309,198,073.35 9,531,138.78 — — — — — 7,829,404.85 — — 9,752,838.00 66,908,396.00 —
		8,750,933,738.42
		28,990,515,123.43

— 23 —

FINANCIAL INFORMATION OF JINKE PROPERTY

APPENDIX II

Item Current liabilities: Short-term borrowings Financial liabilities measured at fair value through profit or loss Derivative financial liabilities Notes payable Accounts payable Advance receipts payroll payable Taxes payable Interest payable Dividends payable Other payables Liabilities classified as held for sale Non-current liabilities maturing within one year Other current liabilities Total current liabilities Non-current liabilities: Long-term borrowings Bonds payable Including: Preferred shares Perpetual bonds Long-term payables Long-term payroll payable Special payables Foreseeable liabilities Deferred earnings Deferred tax liabilities Other non-current liabilities Total non-current liabilities Total liabilities	Balance at the end of the period — — — — 118,388,278.36 16,048,916.32 38,408,756.89 24,292,499.79 244,431,917.27 — 10,475,670,626.08 — 1,190,900,000.00 — 12,108,140,994.71 8,205,510,000.00 — — — — — 1,067,146.07 280,352,330.40 — 8,486,929,476.47 20,595,070,471.18	Balance at the beginning of the period 200,000,000.00 — — — 246,557,143.11 97,362,576.02 42,201,513.00 197,148,293.57 54,218,509.43 — 20,773,492,932.73 — 1,375,800,000.00 —
		22,986,780,967.86
		880,000,000.00 — — — — — 1,104,400.00 261,558,988.10 300,000,000.00
		1,442,663,388.10
		24,429,444,355.96

— 24 —

APPENDIX II

FINANCIAL INFORMATION OF JINKE PROPERTY

Item Owners’ equity: Share capital Other equity instruments Including: Preferred shares Perpetual bonds Capital reserves Less: Treasury shares Other comprehensive income Special reserves Surplus reserves Undistributed profits Total owners’ equity Total liabilities and owners’ equity	Balance at the end of the period 1,378,540,051.00 — — 4,274,916,595.71 — 21,261,250.12 — 291,337,386.02 1,979,438,081.75 7,945,493,364.60 28,540,563,835.78	Balance at the beginning of the period 1,158,540,051.00 — — 2,322,583,765.52 — 6,237,411.13 — 157,728,312.61 915,981,227.21
		4,561,070,767.47
		28,990,515,123.43

— 25 —

FINANCIAL INFORMATION OF JINKE PROPERTY

APPENDIX II

1. Comprehensive income statement

			Unit: RMB
		Amount incurred	Amount incurred
		in the current	in the last
Item		period	period
I.	Total operating revenue	17,323,507,266.17	16,069,615,178.82
	Including: Operating revenue	17,323,507,266.17	16,069,615,178.82
	Interest income	—	—
	Earned premium	—	—
	Fee and commission income	—	—
II.	Total operating cost	16,867,066,319.18	14,903,232,865.07
	Including: Operating cost	13,336,658,521.21	11,886,281,912.99
	Interest expenses	—	—
	Fee and commission expense	—	—
	Surrender value	—	—
	Net amount of compensation payout	—	—
	Net amount of reserves for insurance contract	—	—
	Policy dividend payment	—	—
	Reinsurance cost	—	—
	Business taxes and surcharges	1,240,540,387.97	1,625,381,132.31
	Selling expenses	638,071,318.92	645,840,934.87
	Administrative expenses	719,321,145.66	636,295,217.46
	Financial expenses	162,979,839.75	84,635,369.58
	Assets impairment loss	769,495,105.67	24,798,297.86
	Add: gains on change in fair
	value (“-” for loss)	54,312,554.05	47,742,213.50
	Investment income (“-” for loss)	44,747,997.06	-6,274,698.22
	Including: investment income in associates and
	joint ventures	29,781,399.44	-8,467,049.49
	Exchange gains (“-” for loss)	—	—
III.	Operating profit (“-” for loss)	555,501,498.10	1,207,849,829.03
	Add: Non-operating income	237,589,741.41	103,135,282.55
	Including: Gain from disposal of non-current
	assets	1,005,175.42	517,095.03
	Less: Non-operating expense	39,657,472.26	43,672,335.90
	Including: Loss from disposal of non-current
	assets	394,476.81	374,948.00
IV.	Total profit (“-” for total loss)	753,433,767.25	1,267,312,775.68
	Less: Income tax expense	-109,605,297.61	321,028,636.15

— 26 —

FINANCIAL INFORMATION OF JINKE PROPERTY

APPENDIX II

			Amount incurred	Amount incurred
			in the current	in the last
Item			period	period
V.	Net profit (“-” for net loss)		863,039,064.86	946,284,139.53
	Net	profit attributable to owners of the parent
	company		907,884,138.79	984,071,530.24
	Gains/losses of minority shareholders		-44,845,073.93	-37,787,390.71
VI.	After-tax net amount of other comprehensive income		39,849,817.53	1,477,610.18
	After-tax net amount of other comprehensive
	income attributable to owners of the parent
	company		34,764,389.39	1,477,610.18
	(I)	Other comprehensive income that cannot be
		reclassified into profits/losses
		1. Changes arising from re-measurement of
		net liabilities or net assets of defined
		benefit plan	—	—
		2. Share in other comprehensive income of
		the investee that cannot be reclassified
		into profits/losses under the equity
		method	—	—
	(II)	Other comprehensive income that will be
		reclassified into profits/losses	34,764,389.39	1,477,610.18
		1. Share in other comprehensive income of
		the investee that will be reclassified into
		profits/losses under the equity method	—	—
		2. Gains/losses from change in fair value of
		available-for-sale financial assets	-529,337.70	529,337.70
		3. Held-to-maturity investment reclassified
		as profit/loss from available-for-sale
		financial assets	—	—
		4. Operational factors of cash flow hedging
		gains/losses	—	—
		5. Translation difference of foreign-currency
		financial statements	—	—
		6. Others	35,293,727.09	948,272.48
	After-tax net amount of other comprehensive
	income attributable to minority shareholders		5,085,428.14	—
VII.	Total	comprehensive income	902,888,882.39	947,761,749.71
	Total	comprehensive income attributable to owners of
	the	parent company	942,648,528.18	985,549,140.42
	Total	comprehensive income attributable to minority
	shareholders		-39,759,645.79	-37,787,390.71

— 27 —

FINANCIAL INFORMATION OF JINKE PROPERTY

APPENDIX II

		Amount incurred	Amount incurred
		in the current	in the last
Item		period	period
VIII. Earnings per share:
(I)	Basic earnings per share	0.78	0.85
(II)	Diluted earnings per share	0.78	0.85

For merger of enterprises under the same control in the current period, net profit realized by the merged party before merger was RMB:0; net profit realized by the merged party in the last period was RMB:0.

Legal representative: Person in charge of accounting: Huang Hongyun Li Hua

Officer-in-charge of accounting institution: Liu Shaojun

— 28 —

APPENDIX II

FINANCIAL INFORMATION OF JINKE PROPERTY

1. Income statement of the parent company

			Unit: RMB
		Amount incurred	Amount incurred
		in the current	in the last
Item		period	period
I.	Operating revenue	510,724,913.79	1,760,311,646.05
	Less: Operating cost	118,064,611.75	673,319,958.04
	Business taxes and surcharges	-15,758,057.48	173,412,680.68
	Sales expenses	12,108,061.83	7,458,562.41
	Management expenses	240,387,022.01	203,008,185.73
	Financial expenses	48,934,662.38	10,622,329.75
	Assets impairment loss	1,641,499.03	3,979,060.89
	Add: Revenue from change in fair value (“-” for
	loss)	34,628,039.64	35,767,627.87
	Return on investment (“-” for loss)	1,100,284,004.11	301,502,155.33
	Including: Return on investment in associated
	enterprises and joint ventures	2,107,366.93	4,376,255.33
II.	Operating profit (“-” for loss)	1,240,259,158.02	1,025,780,651.75
	Add: Non-operating revenue	37,231,550.72	35,366,173.39
	Including: Gain from disposal of non-current
	assets	—	—
	Less: Non-operating expense	5,952,997.10	10,925,400.24
	Including: Loss from disposal of non-current
	assets	807.86	59,901.97
III.	Total profit (“-” for total loss)	1,271,537,711.64	1,050,221,424.90
	Less: Income tax expense	-64,553,022.43	191,952,913.58
IV.	Net profit (“-” for net loss)	1,336,090,734.07	858,268,511.32

— 29 —

APPENDIX II

FINANCIAL INFORMATION OF JINKE PROPERTY

				Amount incurred	Amount incurred
				in the current	in the last
Item				period	period
V.	After-tax		net amount of other comprehensive income	15,023,838.99	—
	(I)	Other comprehensive income that cannot be
		reclassified into profits/losses		—	—
		1.	Changes arising from re-measurement of
			net liabilities or net assets of defined
			benefit plan	—	—
		2.	Share in other comprehensive income of
			the investee that cannot be reclassified into
			profits/losses under the equity method	—	—
	(II)	Other comprehensive income that will be
		reclassified into profits/losses		15,023,838.99	—
		1.	Share in other comprehensive income of
			the investee that will be reclassified into
			profits/losses under the equity method	—	—
		2.	Gains/losses from change in fair value of
			available-for-sale financial assets	—	—
		3.	Held-to-maturity investment reclassified as
			profit/loss from available-for-sale financial
			assets	—	—
		4.	Operational factors of cash flow hedging
			gains/losses	—	—
		5.	Translation difference of foreign-currency
			financial statements	—	—
		6.	Others	15,023,838.99	—
VI.	Total	comprehensive income		1,351,114,573.06	858,268,511.32
VII.	Earnings		per share:
	(I)	Basic earnings per share		1.15	0.74
	(II)	Diluted earnings per share		1.15	0.74

— 30 —

FINANCIAL INFORMATION OF JINKE PROPERTY

APPENDIX II

1. Consolidated cash flow statement

Item I. Cash flows from operating activities: Cash received from sales of goods and provision of labor Net increase in deposits from customers and banks and other financial institutions Net increase in borrowings from the central bank Net increase in placements from other financial institutions Premiums received from original insurance contracts Net cash received from reinsurance business Net increase in deposits from policyholders and investment funds Net increase from disposal of financial assets measured at fair value through profit or loss Cash received from interests, fees and commissions Net increase in placements from banks and other financial institutions Net increase in repurchase business capital Tax refund received Other cash received relating to operating activities Subtotal of cash inflows from operating activities Cash paid for purchase of goods and acceptance of labor service Net increase in loans and advances to customers Net increase in deposits with central bank and other financial institutions Original insurance contract claims paid Cash paid for interests, fees and commissions Cash paid for policy dividends Cash paid to and for employees Taxes paid Other cash paid relating to operating activities Subtotal of cash outflows for operating activities Net cash flows from operating activities	Amount incurred in the current period 20,711,909,925.44 — — — — — — — — — — — 3,782,473,605.06 24,494,383,530.50 24,557,039,151.05 — — — — — 1,139,400,330.72 2,420,978,446.03 4,761,728,602.78 32,879,146,530.58 -8,384,763,000.08	Unit: RMB Amount incurred in the last period 17,785,664,260.13 — — — — — — — — — — — 2,600,343,184.53
		20,386,007,444.66 18,744,042,885.52 — — — — — 880,744,767.17 2,030,629,008.26 3,248,596,837.86
		24,904,013,498.81
		-4,518,006,054.15

— 31 —

FINANCIAL INFORMATION OF JINKE PROPERTY

APPENDIX II

Item II. Cash flows from investing activities: Cash received from taking back investment Cash received from return on investment Net cash received from disposal of fixed assets, intangible assets and other long-term assets Net cash received from disposal of subsidiaries and other operating units Other cash received relating to investing activities Subtotal of cash inflows from investing activities Cash paid for purchase and construction of fixed assets, intangible assets and other long-term assets Cash paid for investment Net increase in pledge loans Net cash paid for acquisition of subsidiaries and other operating units Other cash paid relating to investing activities Subtotal of cash outflows for investing activities Net cash flows from investing activities III. Cash flows from financing activities: Cash received from introducing investment Including: Cash received by subsidiaries from investments of minority shareholders Cash received for obtaining loans Cash received from issue of bonds Other cash received relating to financing activities Subtotal of cash inflows from financing activities Cash paid for repayment of debts Cash paid for distribution of dividend and profit or repayment of interest Including: Dividend and profit paid by subsidiaries to minority shareholders Other cash paid relating to financing activities Subtotal of cash outflows for financing activities Net cash flows from financing activities IV. Effect of exchange rate change on cash and cash equivalents V. Net increase in cash and cash equivalents Add: Opening balance of cash and cash equivalents VI. Ending balance of cash and cash equivalents	Amount incurred in the current period 559,703,656.49 4,461,147.22 1,708,875.92 — — 565,873,679.63 104,806,293.62 809,915,355.59 — 332,027,088.53 — 1,246,748,737.74 -680,875,058.11 --------------------- ----------------------------------------------------------------------------------- 2,859,600,000.00 685,800,000.00 23,274,120,000.00 — 5,558,872,094.80 31,692,592,094.80 11,965,494,672.00 2,674,531,925.89 23,184,644.41 6,894,458,765.81 21,534,485,363.70 10,158,106,731.10 1,092,468,672.91 4,712,813,588.73 5,805,282,261.64	Amount incurred in the last period 96,692,393.23 11,900,472.59 2,586,237.32 — —
		111,179,103.14 77,772,727.05 615,000,000.00 — 142,863,976.43 28,692,773.83
		864,329,477.31
		-753,150,374.17 --------------------- ----------------------------------------------------------------------------------- 929,643,294.12 929,643,294.12 20,000,580,000.00 — 6,054,273,645.99
		26,984,496,940.11 13,023,635,328.00 1,889,171,246.30 — 8,578,032,000.00
		23,490,838,574.30
		3,493,658,365.81
		-1,777,498,062.51 6,490,311,651.24
		4,712,813,588.73

— 32 —

FINANCIAL INFORMATION OF JINKE PROPERTY

APPENDIX II

6. Cash flow statement of the parent company

Item I. Cash flows from operating activities: Cash received from sales of goods and provision of labor Tax refund received Other cash received relating to operating activities Subtotal of cash inflows from operating activities Cash paid for purchase of goods and acceptance of labor service Cash paid to and for employees Taxes paid Other cash paid relating to operating activities Subtotal of cash outflows for operating activities Net cash flows from operating activities II. Cash flows from investing activities: Cash received from taking back investment Cash received from return on investment Net cash received from disposal of fixed assets, intangible assets and other long-term assets Net cash received from disposal of subsidiaries and other operating units Other cash received relating to investing activities Subtotal of cash inflows from investing activities Cash paid for purchase and construction of fixed assets, intangible assets and other long-term assets Cash paid for investment Net cash paid for acquisition of subsidiaries and other operating units Other cash paid relating to investing activities Subtotal of cash outflows for investing activities Net cash flows from investing activities	Amount incurred in the current period 422,069,949.98 27,926,289,810.25 28,348,359,760.23 159,799,872.28 160,644,339.64 183,323,035.93 31,669,072,978.89 32,172,840,226.74 -3,824,480,466.51 10,000,000.00 4,461,147.22 268,579.31 4,315,526.75 — 19,045,253.28 4,608,583.09 3,236,232,830.19 — — 3,240,841,413.28 -3,221,796,160.00	Unit: RMB Amount incurred in the last period 461,158,625.10 18,943,201,046.72
		19,404,359,671.82 141,420,236.79 123,560,349.96 109,162,017.51 18,576,207,223.37
		18,950,349,827.63
		454,009,844.19
		— 11,900,472.59 282,000.00 — —
		12,182,472.59 8,940,545.36 604,200,000.00 — —
		613,140,545.36
		-600,958,072.77

— 33 —

FINANCIAL INFORMATION OF JINKE PROPERTY

APPENDIX II

Item III. Cash flows from financing activities: Cash received from introducing investment Cash received for obtaining loans Cash received from issue of bonds Other cash received relating to financing activities Subtotal of cash inflows from financing activities Cash paid for repayment of debts Cash paid for distribution of dividend and profit or repayment of interest Other cash paid relating to financing activities Subtotal of cash outflows for financing activities Net cash flows from financing activities IV. Effect of exchange rate change on cash and cash equivalents V. Net increase in cash and cash equivalents Add: Opening balance of cash and cash equivalents VI. Ending balance of cash and cash equivalents	Amount incurred in the current period Amount incurred in the last period 2,173,800,000.00 — 8,445,860,000.00 1,270,000,000.00 — — — — 10,619,660,000.00 1,270,000,000.00 2,634,230,000.00 14,200,000.00 729,615,550.56 337,766,420.73 — 718,120,000.00 3,363,845,550.56 1,070,086,420.73 7,255,814,449.44 199,913,579.27 209,537,822.93 52,965,350.69 607,388,628.17 554,423,277.48 816,926,451.10 607,388,628.17	Amount incurred in the current period Amount incurred in the last period 2,173,800,000.00 — 8,445,860,000.00 1,270,000,000.00 — — — — 10,619,660,000.00 1,270,000,000.00 2,634,230,000.00 14,200,000.00 729,615,550.56 337,766,420.73 — 718,120,000.00 3,363,845,550.56 1,070,086,420.73 7,255,814,449.44 199,913,579.27 209,537,822.93 52,965,350.69 607,388,628.17 554,423,277.48 816,926,451.10 607,388,628.17
		1,270,000,000.00 14,200,000.00 337,766,420.73 718,120,000.00
		1,070,086,420.73
		199,913,579.27
		52,965,350.69 554,423,277.48
		607,388,628.17

— 34 —

APPENDIX II

FINANCIAL INFORMATION OF JINKE PROPERTY

Unit: RMB			Minority General	shareholders’ Total owners’ risk Undistributed	equity equity reserves profits	— 5,657,563,669.18 2,075,349,155.87 9,927,513,685.22	— — — —		— — — —		— — — —	— — — —		— 5,657,563,669.18 2,075,349,155.87 9,927,513,685.22		— 635,250,259.26 560,914,841.19 3,238,696,635.22	— 907,884,138.79 -39,759,645.79 902,888,882.39		— — 623,859,131.39 2,498,017,203.36		— — 281,715,920.43 2,454,048,750.62		— — — —			— — — —	— — 342,143,210.96 43,968,452.74	— -272,633,879.53 -23,184,644.41 -162,209,450.53	— -133,609,073.41 — —		— — — —		— -139,024,806.12 -23,184,644.41 -162,209,450.53	— — — —
				Surplus	reserves	301,114,786.54	—		—		—	—		301,114,786.54		-139,346,195.38	—		-272,955,268.79		—		—			—	-272,955,268.79	133,609,073.41	133,609,073.41		—		—	—
				Special	reserves	—	—		—		—	—		—		—	—		—		—		—			—	—	—	—		—		—	—
	Current period	Equity attributable to owners of the parent company	Less: Other	Capital Treasury comprehensive	reserves shares income Others	— 175,205,436.32 — 559,740,586.31	— — — —		— — — —		— — — —	— — — —		— 175,205,436.32 — 559,740,586.31		— 1,927,113,340.76 — 34,764,389.39	— — — 34,764,389.39		— 1,927,113,340.76 — —		— 1,952,332,830.19 — —		— — — —			— — — —	— -25,219,489.43 — —	— — — —	— — — —		— — — —		— — — —	— — — —
			Other equity instruments	Preferred Perpetual	shares bonds	— —	— —		— —		— —	— —		— —		— —	— —		— —		— —		— —			— —	— —	— —	— —		— —		— —	— —
					Share capital	1,158,540,051.00	—		—		—	—		1,158,540,051.00		220,000,000.00	—		220,000,000.00		220,000,000.00		—			—	—	—	—		—		—	—
					Item	I. Ending balance of last year	Add: Changes in accounting policies		Correction of previous errors	Merger of enterprises under the same	control	Others	II. Opening balance of the current	year	III. Increase/decrease of the current	period (“-” for decrease)	(I) Total comprehensive income	(II) Owners’ capital injected and	reduced	1. Ordinary shares invested by	shareholders	2. Capital invested by holders of	other equity instruments	3. Amounts of share-based	payments included in owners’	equity	4. Others	(III) Profit distribution	1. Withdrawal of surplus reserves	2. Withdrawal of general risk	provisions	3. Distribution to owners (or	shareholders)	4. Others

— 35 —

APPENDIX II

FINANCIAL INFORMATION OF JINKE PROPERTY

		Minority	shareholders’ Total owners’ Undistributed	equity equity profits		— — —		— — —		— — —		— — —		— — —	— — —	— — —	— — —		6,292,813,928.44 2,636,263,997.06 13,166,210,320.44
		General	risk	reserves		—		—		—		—		—	—	—	—		—
			Surplus	reserves		—		—		—		—		—	—	—	—		161,768,591.16
			Special	reserves		—		—		—		—		—	—	—	—		—
Current period	Equity attributable to owners of the parent company	Less: Other	Capital Treasury comprehensive	reserves shares income Others		— — — —		— — — —		— — — —		— — — —		— — — —	— — — —	— — — —	— — — —		— 2,102,318,777.08 — 594,504,975.70
		Other equity instruments	Preferred Perpetual	shares bonds		— —		— —		— —		— —		— —	— —	— —	— —		— —
				Share capital		—		—		—		—		—	—	—	—		1,378,540,051.00
				Item	(IV) Internal carryover of owners’	equity	1. Transfer of capital reserves into	paid-in capital (or share capital)	2. Transfer of surplus reserves into	paid-in capital (or share capital)	3. Surplus reserves for making up	losses	4. Others	(V) Special reserves	1. Withdrawal in the current year	2. Use in the current period	(VI) Others	IV. Ending balance of the current	period

— 36 —

APPENDIX II

FINANCIAL INFORMATION OF JINKE PROPERTY

Unit: RMB			Minority General	shareholders’ Total owners’ risk Undistributed	equity equity reserves profits	— 4,875,172,995.17 1,013,143,874.40 7,959,158,131.04	— — — —		— — — —		— — — —	— — — —	— 4,875,172,995.17 1,013,143,874.40 7,959,158,131.04		— 782,390,674.01 1,062,205,281.47 1,968,355,554.18	— 984,071,530.24 -37,787,390.71 947,761,749.71	— — 1,099,992,672.18 1,136,447,809.57		— — 1,174,643,294.10 1,174,643,294.10		— — — —			— — — —	— — -74,650,621.92 -38,195,484.53	— -201,680,856.23 — -115,854,005.10	— -85,826,851.13 — —		— — — —		— -115,854,005.10 — -115,854,005.10	— — — —
				Surplus	reserves	215,287,935.41	—		—		—	—	215,287,935.41		85,826,851.13	—	—		—		—			—	—	85,826,851.13	85,826,851.13		—		—	—
				Special	reserves	—	—		—		—	—	—		—	—	—		—		—			—	—	—	—		—		—	—
	Last period	Equity attributable to owners of the parent company	Less: Other	Capital Treasury comprehensive	reserves shares income Others	— 138,750,298.93 — 558,262,976.13	— — — —		— — — —		— — — —	— — — —	— 138,750,298.93 — 558,262,976.13		— 36,455,137.39 — 1,477,610.18	— — — 1,477,610.18	— 36,455,137.39 — —		— — — —		— — — —			— — — —	— 36,455,137.39 — —	— — — —	— — — —		— — — —		— — — —	— — — —
			Other equity instruments	Preferred Perpetual	shares bonds	— —	— —		— —		— —	— —	— —		— —	— —	— —		— —		— —			— —	— —	— —	— —		— —		— —	— —
					Share capital	1,158,540,051.00	—		—		—	—	1,158,540,051.00		—	—	—		—		—			—	—	—	—		—		—	—
					Item	I. Ending balance of last year	Add: Changes in accounting policies		Correction of previous errors	Merger of enterprises under the same	control	Others	II. Opening balance of the current year	III. Increase/decrease of the current	period (“-” for decrease)	(I) Total comprehensive income	(II) Owners’ capital injected and reduced	1. Ordinary shares invested by	shareholders	2. Capital invested by holders of other	equity instruments	3. Amounts of share-based payments		included in owners’ equity	4. Others	(III) Profit distribution	1. Withdrawal of surplus reserves	2. Withdrawal of general risk	provisions	3. Distribution to owners (or	shareholders)	4. Others

— 37 —

APPENDIX II

FINANCIAL INFORMATION OF JINKE PROPERTY

		Minority General	shareholders’ Total owners’ risk Undistributed	equity equity reserves profits	— — — —		— — — —		— — — —		— — — —	— — — —	— — — —	— — — —	— — — —	— — — —	— 5,657,563,669.18 2,075,349,155.87 9,927,513,685.22
			Surplus	reserves	—		—		—		—	—	—	—	—	—	301,114,786.54
			Special	reserves	—		—		—		—	—	—	—	—	—	—
Last period	Equity attributable to owners of the parent company	Less: Other	Capital Treasury comprehensive	reserves shares income Others	— — — —		— — — —		— — — —		— — — —	— — — —	— — — —	— — — —	— — — —	— — — —	— 175,205,436.32 — 559,740,586.31
		Other equity instruments	Preferred Perpetual	shares bonds	— —		— —		— —		— —	— —	— —	— —	— —	— —	— —
				Item Share capital	(IV) Internal carryover of owners’ equity —	1. Transfer of capital reserves into	paid-in capital (or share capital) —	2. Transfer of surplus reserves into	paid-in capital (or share capital) —	3. Surplus reserves for making up	losses —	4. Others —	(V) Special reserves —	1. Withdrawal in the current year —	2. Use in the current period —	(VI) Others —	IV. Ending balance of the current period 1,158,540,051.00

— 38 —

APPENDIX II

FINANCIAL INFORMATION OF JINKE PROPERTY

	Unit: RMB		Total	Undistributed owners’	profits equity	915,981,227.21 4,561,070,767.47	— —	— —	— —	915,981,227.21 4,561,070,767.47		1,063,456,854.54 3,384,422,597.13	1,336,090,734.07 1,351,114,573.06	— 2,172,332,830.19	— 2,172,332,830.19		— —		— —	— —	-272,633,879.53 -139,024,806.12	-133,609,073.41 —	-139,024,806.12 -139,024,806.12	— —
				Surplus	reserves	157,728,312.61	—	—	—	157,728,312.61		133,609,073.41	—	—	—		—		—	—	133,609,073.41	133,609,073.41	—	—
				Special	reserves	—	—	—	—	—		—	—	—	—		—		—	—	—	—	—	—
			Other	comprehensive	income	6,237,411.13	—	—	—	6,237,411.13		15,023,838.99	15,023,838.99	—	—		—		—	—	—	—	—	—
		Current period	Less:	Treasury	shares	—	—	—	—	—		—	—	—	—		—		—	—	—	—	—	—
				Capital	reserves	2,322,583,765.52	—	—	—	2,322,583,765.52		1,952,332,830.19	—	1,952,332,830.19	1,952,332,830.19		—		—	—	—	—	—	—
					Others	—	—	—	—	—		—	—	—	—		—		—	—	—	—	—	—
			Other equity instruments	Preferred Perpetual	shares bonds	— —	— —	— —	— —	— —		— —	— —	— —	— —		— —		— —	— —	— —	— —	— —	— —
Amount in the current period		Item		Share	capital	I. Ending balance of last year 1,158,540,051.00	Add: Changes in accounting policies —	Correction of previous errors —	Others —	II. Opening balance of the current year 1,158,540,051.00	III. Increase/decrease of the current period	(“-” for decrease) 220,000,000.00	(I) Total comprehensive income —	(II) Owners’ capital injected and reduced 220,000,000.00	1. Ordinary shares invested by shareholders 220,000,000.00	2. Capital invested by holders of other equity	instruments —	3. Amounts of share-based payments	included in owners’ equity —	4. Others —	(III) Profit distribution —	1. Withdrawal of surplus reserves —	2. Distribution to owners (or shareholders) —	3. Others —

— 39 —

APPENDIX II

FINANCIAL INFORMATION OF JINKE PROPERTY

	Total	owners’	equity	—		—		—	—	—	—	—	—		—	7,945,493,364.60
		Undistributed	profits	—		—		—	—	—	—	—	—		—	1,979,438,081.75
		Surplus	reserves	—		—		—	—	—	—	—	—		—	291,337,386.02
		Special	reserves	—		—		—	—	—	—	—	—		—	—
	Other	comprehensive	income	—		—		—	—	—	—	—	—		—	21,261,250.12
Current period	Less:	Treasury	shares	—		—		—	—	—	—	—	—		—	—
		Capital	reserves	—		—		—	—	—	—	—	—		—	4,274,916,595.71
			Others	—		—		—	—	—	—	—	—		—	—
	Other equity instruments	Preferred Perpetual	shares bonds	— —		— —		— —	— —	— —	— —	— —	— —		— —	— —
		Share	capital	—		—		—	—	—	—	—	—		—	1,378,540,051.00
Item				(IV) Internal carryover of owners’ equity	1. Transfer of capital reserves into paid-in	capital (or share capital)	2. Transfer of surplus reserves into paid-in	capital (or share capital)	3. Surplus reserves for making up losses	4. Others	(V) Special reserves	1. Withdrawal in the current year	2. Use in the current period		(VI) Others	IV. Ending balance of the current period

— 40 —

APPENDIX II

FINANCIAL INFORMATION OF JINKE PROPERTY

Unit: RMB		Total	Undistributed owners’	profits equity	259,393,572.12 3,818,656,261.25	— —		— —	— —	259,393,572.12 3,818,656,261.25		656,587,655.09 742,414,506.22	858,268,511.32 858,268,511.32	— —	— —		— —		— —	— —	-201,680,856.23 -115,854,005.10	-85,826,851.13 —	-115,854,005.10 -115,854,005.10	— —
			Surplus	reserves	71,901,461.48	—		—	—	71,901,461.48		85,826,851.13	—	—	—		—		—	—	85,826,851.13	85,826,851.13	—	—
			Special	reserves	—	—		—	—	—		—	—	—	—		—		—	—	—	—	—	—
		Other	comprehensive	income	6,237,411.13	—		—	—	6,237,411.13		—	—	—	—		—		—	—	—	—	—	—
	Last period	Less:	Treasury	shares	—	—		—	—	—		—	—	—	—		—		—	—	—	—	—	—
			Capital	reserves	2,322,583,765.52	—		—	—	2,322,583,765.52		—	—	—	—		—		—	—	—	—	—	—
				Others	—	—		—	—	—		—	—	—	—		—		—	—	—	—	—	—
		Other equity instruments	Preferred Perpetual	shares bonds	— —	— —		— —	— —	— —		— —	— —	— —	— —		— —		— —	— —	— —	— —	— —	— —
			Share	capital	1,158,540,051.00	—		—	—	1,158,540,051.00		—	—	—	—		—		—	—	—	—	—	—
	Item				I. Ending balance of last year	Add: Changes in accounting policies		Correction of previous errors	Others	II. Opening balance of the current year	III. Increase/decrease of the current period	(“-” for decrease)	(I) Total comprehensive income	(II) Owners’ capital injected and reduced	1. Ordinary shares invested by shareholders	2. Capital invested by holders of other equity	instruments	3. Amounts of share-based payments	included in owners’ equity	4. Others	(III) Profit distribution	1. Withdrawal of surplus reserves	2. Distribution to owners (or shareholders)	3. Others

— 41 —

APPENDIX II

FINANCIAL INFORMATION OF JINKE PROPERTY

	Total	owners’	equity	—		—		—	—	—	—	—	—		—	4,561,070,767.47
		Undistributed	profits	—		—		—	—	—	—	—	—		—	915,981,227.21
		Surplus	reserves	—		—		—	—	—	—	—	—		—	157,728,312.61
		Special	reserves	—		—		—	—	—	—	—	—		—	—
	Other	comprehensive	income	—		—		—	—	—	—	—	—		—	6,237,411.13
Last period	Less:	Treasury	shares	—		—		—	—	—	—	—	—		—	—
		Capital	reserves	—		—		—	—	—	—	—	—		—	2,322,583,765.52
			Others	—		—		—	—	—	—	—	—		—	—
	Other equity instruments	Preferred Perpetual	shares bonds	— —		— —		— —	— —	— —	— —	— —	— —		— —	— —
		Share	capital	—		—		—	—	—	—	—	—		—	1,158,540,051.00
Item				(IV) Internal carryover of owners’ equity	1. Transfer of capital reserves into paid-in	capital (or share capital)	2. Transfer of surplus reserves into paid-in	capital (or share capital)	3. Surplus reserves for making up losses	4. Others	(V) Special reserves	1. Withdrawal in the current year	2. Use in the current period		(VI) Others	IV. Ending balance of the current period

— 42 —

FINANCIAL INFORMATION OF JINKE PROPERTY

APPENDIX II

Notes to Financial Statements of Jinke Property Group Co., Ltd.

2014

Unit: RMB

I. General information about the Company

Formerly Chongqing Dong Yuan Industry Development Co., Ltd. (formerly known as Chongqing Dong Yuan Steel Co., Ltd.), Jinke Property Group Co., Ltd. (hereinafter referred to as the Company) was established upon restructuring from the former Forth Iron and Steel Plant of Chongqing Iron and Steel Company as approved by Chongqing Municipal People’s Government in Doc. Chong Fu Fa (1986) No. 290 and was registered with Chongqing Administration for Industry and Commerce on 29 March 1994, with its headquarters in Jiangbei District, Chongqing. The Company now holds the business license with registration No.: 500000000007018, its registered capital is 1,378,540,051, and the total shares are 1,378,540,051 (with a par value of RMB1 each), including 459,716,011 tradable shares with sale limitations and 918,824,040 tradable shares without sale limitations.

As a real estate developer, the Company mainly engages in real estate development, property management, installation of mechanical and electrical equipment (the abovementioned operating activities should be carried out with qualification certificate); sales of buildings, decorative materials and chemicals (excluding hazardous chemicals) and hardware; rental of self-owned houses; corporate management consulting service, imports & exports of goods and technologies (for items prohibited by laws and regulations, relevant operating activities should not be carried out; for items restricted by laws and regulations, relevant operating activities may be carried out only after relevant license or approval is obtained). Main products or labor services provided include sales of real estate, wind power investment and development, property management, hotel operation, landscaping engineering, doors & windows engineering, decoration engineering, and sales of materials.

The Financial Statements were approved to be disclosed to the public at the 15th meeting of the 9th Board of Directors of the Company on 29 March 2015. The Company incorporated 115 subsidiaries including Chongqing Jinke Real Estate Development Co., Ltd., Chongqing Jinke Industrial Group Hongjing Real Estate Development Co., Ltd. and Wuxi Jinke Kerun Real Estate Development Co., Ltd. into the scope of the consolidated financial statements for the current period, with details set out in the change in the consolidation scope and description of interests in other entities in the Notes to the Financial Statements.

II. Basis for preparation of the financial statements

(I) Preparation basis

The Company’s financial statements are prepared on the going-concern basis.

— 43 —

FINANCIAL INFORMATION OF JINKE PROPERTY

APPENDIX II

(II) Evaluation of going-concern ability

The Company is not involved in any events or conditions that may cast significant doubt about the going-concern assumptions for 12 months after the end of the reporting period.

III. Critical accounting policies and accounting estimates

(I) Statement of compliance with the Accounting Standards for Business Enterprises

The financial statements prepared by the Company comply with the Accounting Standards for Business Enterprises and give a true and complete view of the financial position, operating results and cash flow of the Company.

(II) Accounting period

The Company takes the Gregorian calendar year as the fiscal year, i.e. from 1 January to 31 December.

(III) Recording currency

The Company uses Renminbi as the recording currency.

• (IV) Accounting for merger of enterprises under and not under the same control

1. Accounting for merger of enterprises under the same control

The assets and liabilities acquired by the Company through merger with other enterprise are measured as per the book value of the merged party in the consolidated financial statements of the ultimate controller on the date of merger. The Company adjusts the capital reserve based on the difference between the share of the book value of the owners’ equity of the merged party in the consolidated financial statements of the ultimate controller and the book value of the paid consideration for merger or the aggregate book value of shares issued; in case of capital reserve insufficient for writedown, the retained earnings will be adjusted.

2. Accounting for merger of enterprises not under the same control

The difference of the merger cost of the Company above the share of the fair value of identifiable net assets of the acquired party obtained through merger on the date of acquisition is recognized as goodwill; in case of the difference of the merger cost of the Company below the share of the fair value of identifiable net assets of the acquired party obtained through merger, the measurement of the fair value of various obtained identifiable assets, liabilities and contingent liabilities of the acquired party and the merger cost should be reviewed first, and if the merger cost is still lower than the share of the fair value of identifiable net assets of the acquired party obtained through merger after review, the difference is stated as current gain/loss.

— 44 —

FINANCIAL INFORMATION OF JINKE PROPERTY

APPENDIX II

• (V) Preparation method of consolidated financial statements

The parent company incorporates all subsidiaries under its control into the consolidation scope of the consolidated financial statements. Based on the financial statements of the parent company and subsidiaries thereof, the consolidated financial statements are prepared by the parent company according to other relevant data and the Accounting Standards for Business Enterprises No. 33 — Consolidated Financial Statements .

(VI) Classification of joint arrangement and accounting for joint operation

1. Joint arrangement is classified as either a joint operation or a joint venture.

2. When the Company is a joint operator, the following items relating to the interests in the joint operation are recognized:

3. (1) Recognize the assets held separately, as well as the assets held jointly as per the shares;

4. (2) Recognize the liabilities assumed separately, as well as liabilities shared commonly as per the shares;

5. (3) Recognize the revenue from sales of shares of the joint operation held by the Company;

6. (4) Recognize the revenue from sales of assets of the joint operation as per the shares held by the Company;

7. (5) Recognize the expenses incurred separately, as well as expenses incurred to the joint operation as per the shares held by the Company.

(VII) Standards for determining cash and cash equivalents

Cash stated in the cash flow statement refers to cash on hand and deposits that can be readily withdrawn on demand. Cash equivalent refers to investment that is short in term, highly mobile, easily convertible into given amount of cash and subject to an insignificant risk of change in value.

(VIII) Translation of foreign currency businesses and foreign currency financial statements

1. Translation of foreign currency businesses

At the time of initial recognition, foreign currency transactions are translated into RMB amount at the spot exchange rate on the date of transaction. On the balance sheet date, foreign currency monetary items are translated at the spot exchange rate on that date, and the exchange difference arising from different exchange rates is stated as current gain/loss except the exchange difference arising from the specific-purpose foreign currency loan principals and interests relating to setup of assets meeting the capitalization conditions; foreign currency non-monetary items measured at

— 45 —

FINANCIAL INFORMATION OF JINKE PROPERTY

APPENDIX II

historical cost are translated at the spot exchange rate on the date of transaction, without changing its RMB amount; foreign currency non-monetary items measured at fair value are translated at the spot exchange rate on the date of determination of fair value, with the difference stated as current gain/loss or other comprehensive income.

2. Translation of foreign currency financial statements

The assets and liabilities in the balance sheet are translated at the spot exchange rate on the balance sheet date; the owners’ equity excluding “undistributed profit” is translated at the spot exchange rate on the transaction date; and the revenues and expenses in the income statement are translated at the exchange rate approximate to the spot exchange rate on the transaction date. The aforesaid translation differences in foreign currency financial statements are stated as other comprehensive income.

(IX) Financial instruments

1. Classification of financial assets and financial liabilities

At the time of initial recognition, financial assets are classified into financial assets measured at fair value through profit or loss (including tradable financial assets and financial assets specified to be measured at fair value through profit or loss at the time of initial recognition), held-to-maturity investments, loans and receivables, and available-for-sale financial assets.

At the time of initial recognition, financial liabilities are classified into financial liabilities measured at fair value through profit or loss (including tradable financial liabilities and financial liabilities specified to be measured at fair value through profit or loss at the time of initial recognition), and other financial liabilities.

2. Recognition basis, measurement method and conditions for derecognition of financial assets and financial liabilities

A financial asset or financial liability is recognized when the Company becomes a party to the contract of financial instrument. At the time of initial recognition, financial assets or financial liabilities are measured at fair value; the relevant transaction expenses relating to financial assets and financial liabilities measured at fair value through profit or loss are directly stated as current gains/losses; the relevant transaction expenses relating to other financial assets or financial liabilities are stated as initially recognized amount.

The Company makes subsequent measurement on the financial assets at fair value and does not deduct any transaction expenses arising in future due to disposal of the financial assets, except in the following circumstances:

• (1) held-to-maturity investments and loans and receivables are measured at amortized cost by the actual interest rate;

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• (2) equity instrument investment which has no quote in an active market and the fair value of which cannot be measured reliably and derivative financial assets that relate to the equity instrument and should be settled by delivery of the equity instrument are measured on the basis of cost. The Company makes subsequent measurement on the financial liabilities at amortized cost by the actual interest rate, except in the following circumstances:

• (1) financial liabilities measured at fair value through profit or loss are measured at fair value, and any transaction expenses which may arise at the settlement of financial liabilities in future are not deducted;

• (2) derivative financial liabilities, which relate to equity instrument which has no quote in an active market and the fair value of which cannot be measured reliably, and which should be settled by delivery of the equity instrument are measured on the basis of cost;

• (3) for the financial guarantee contracts which are not financial liabilities designated to be measured at fair value through profit or loss, or the loan commitments which are not designated to be measured at fair value through profit or loss and which will enjoy a loan interest rate lower than the market level, a subsequent measurement should be made by the higher of the following two amounts after the initial recognition:

  • 1) amount determined according to the Accounting Standards for Business Enterprises No. 13 — Contingencies ;

  • 2) balance of the initially recognized amount minus the accumulative amortization amount determined according to the Accounting Standards for Business Enterprises No. 14 — Revenue .

Gains or losses arising from change in fair value of financial assets or financial liabilities other than those relating to hedging are disposed of as follows:

• (1) gains or losses arising from change in fair value of financial assets or financial liabilities measured at fair value through profit or loss are stated as revenues from change in fair value; interest or cash dividend obtained while the assets are held is recognized as return on investment; at the time of disposal, the difference between the amount actually received and the amount initially entered into account is recognized as return on investment, and the revenue from change in fair value is adjusted at the same time.

• (2) Change in fair value of available-for-sale financial assets is stated as other comprehensive income; interest calculated by actual interest rate method during the holding period is stated as return on investment; cash dividend of available-for-sale equity instrument investment is stated as return on investment when the invested entity announces distribution of dividend; at the time of disposal, the difference between the amount actually received and the book value minus the accumulative amount of the change in fair value originally stated as owners’ equity is stated as return on investment.

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FINANCIAL INFORMATION OF JINKE PROPERTY

If the contract right to collect cash flow from a certain financial asset is terminated or if almost all the risks and returns relating to the ownership of the financial asset have been transferred, the financial asset should be derecognized; if the current obligation of a financial liability is exempted in part or in whole, the financial liability or part thereof should be derecognized accordingly.

3. Recognition basis and measurement method of transfer of financial assets

If the Company has transferred almost all the risks and returns relating to the ownership of a financial asset to the transferee, it should derecognize the financial asset; if the Company reserves almost all the risks and returns relating to the ownership of a financial asset, it should continue to recognize the transferred financial asset and recognize the consideration received as a financial liability. If the Company has neither transferred nor reserved almost all the risks and returns relating to the ownership of a financial asset, relevant disposal should be made as follows, respectively:

• (1) if the Company gives up the control over the financial asset, it should derecognize the financial asset;

• (2) if the Company does not give up the control over the financial asset, it should recognize the relevant financial asset according to the extent of its continuous involvement in the transferred financial asset, and the relevant liability should be recognized accordingly. If the transfer of an entire financial asset satisfies the conditions for derecognition, the difference between the amounts of the following two items should be stated as current gain/loss:

• (1) the book value of the transferred financial asset;

• (2) the sum of consideration received from the transfer and the accumulative amount of the change in fair value originally stated as owners’ equity. If the transfer of partial financial asset satisfies the conditions for derecognition, the entire book value of the transferred financial asset should, between the portion which has been derecognized and the portion which has not been derecognized, be amortized according to their respective fair values, and the difference between the amounts of the following two items should be stated as current gain/loss:

  • (1) the book value of the portion which has been derecognized;

  • (2) the sum of consideration of the portion which has been derecognized and the accumulative amount of the change in fair value originally stated as owners’ equity, corresponding to the portion which has been derecognized.

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APPENDIX II

1. Determination methods of fair value of financial assets and financial liabilities

The Company uses evaluation techniques which apply to the current circumstance and are supported by enough available data and other information to determine the fair value of relevant financial assets and financial liabilities. The Company divides the input values used by evaluation techniques into the following levels and uses them in sequence:

• (1) The input value at the first level is the unadjusted quote in an active market for the same assets or liabilities which can be obtained on the date of measurement;

• (2) The input value at the second level is the directly or indirectly observable input value of relevant assets or liabilities other than the input value at the first level, including quote for similar assets or liabilities in an active market; quote for identical or similar assets or liabilities in a market that is not active; other observable input value other than quote, e.g. interest rates and yield curves observable at commonly quoted intervals; market-corroborated input value;

• (3) The input value at the third level is the unobservable input value of relevant assets or liabilities, including interest rate which cannot be observed directly or corroborated by observable market data, stock volatility, future cash flow of retirement obligation assumed during merger of enterprises, financial forecast made based on its own data, etc.

• Impairment test of financial assets and method of withdrawal of provision for impairment

• (1) The Company should check the book value of financial assets other than those measured at fair value through profit or loss on the balance sheet date, and the provision for impairment should be withdrawn if there is objective evidence showing the financial assets have suffered impairment.

• (2) For held-to-maturity investments, loans and receivables, the financial asset whose amount is significant individually should experience the independent impairment test; the financial asset whose amount is insignificant individually may experience the impairment test independently or be included in portfolios of financial assets with similar credit risk features so as to carry out an impairment test; if, upon the independent test, the financial assets (including those financial assets whose amount is significant and insignificant individually) have not been impaired, they should be included in portfolios of financial assets with similar credit risk features so as to conduct an impairment test. If the test result shows impairment has happened, the impairment loss is determined as per the difference of the book value above the present value of the expected future cash flow.

• (3) Available-for-sale financial assets

  • 1) Objective evidence showing investment in available-for-sale debt investment has been impaired includes:

    • ① Serious financial difficulty of the debtor;

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APPENDIX II

• ② A breach of contract by the debtor, such as a default or delay in interest or principal payment;

• ③ The Company, for economic and legal reasons relating to the debtor’s financial difficulty, granting a concession to the debtor;

• ④ It becoming probable that the debtor will enter bankruptcy or other financial reorganization;

• 5 The disappearance of an active market for the debt instrument because of financial difficulties of the debtor;

• ⑥ Other evidence showing the available-for-sale debt instrument has been impaired.

• 2) Objective evidence showing available-for-sale equity instrument investment has been impaired includes the significant or non-transient drop in the fair value of investment in equity instrument and significant adverse change in the technical, market, economic or legal environment, etc. in which the invested entity operates, indicating that the cost of the investment may not be recovered by the Company.

If the available-for-sale financial assets measured at fair value have been impaired, accumulative loss arising from decrease in fair value originally stated as other comprehensive income should be transferred out and stated as impairment loss. For the available-for-sale debt instrument investment of which impairment loss has been recognized, the recognized impairment loss should be reversed and stated as current gain/loss when the fair value increases in the subsequent period and the change in fair value is objectively related to the event incurred after the initial recognition of impairment loss. The available-for-sale equity instrument investment of which impairment loss has been recognized should be directly stated as other comprehensive income when the fair value increases in the subsequent period.

If the available-for-sale equity instrument measured at cost has been impaired, the difference between the book value of the equity instrument investment and the present value of the future cash flow discounted at the current market yield rate of similar financial assets is recognized as impairment loss and stated as current gain/loss, and the impairment loss incurred should not be restated once recognized.

(X) Receivables

1. Receivables whose amount is significant individually and for which provision for bad debts is withdrawn individually

Basis or amount standard for determining RMB10 million or above a receivable with significant amount Withdrawal method for receivables whose Impairment test is conducted separately, and amount is significant individually and for provision for bad debts is withdrawn as per which provision for bad debts is the difference of the present value of the withdrawn individually future cash flow below the book value.

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APPENDIX II

1. Receivables for which the provision for bad debts is withdrawn by combination of credit risk features

2. (1) Specific combination and withdrawal method for provision for bad debts

Basis for combination determination

Age combination

Receivables with same account age have similar credit risk features

Cash deposit portfolio Combination of transactions with connected parties in the consolidation scope

Deposits

Receivables from connected parties in the consolidation scope

Withdrawal method for provision for bad debts by combination of credit risk features

Age combination

Age analysis method

Cash deposit portfolio Impairment test is conducted separately, and provision for bad debts is withdrawn as per the difference of the present value of the future cash flow below the book value.

Combination of transactions with Impairment test is conducted separately, and connected parties in the consolidation provision for bad debts is withdrawn as per scope the difference of the present value of the future cash flow below the book value.

• (2) Age analysis method

	Withdrawal	Withdrawal
	percentage of	percentage of
	accounts receivable	other receivables
Age	(%)	(%)
Within 1 year (inclusive, same below)	1	1
1-2 years	5	5
2-3 years	20	20
3-5 years	50	50
Above 5 years	100	100

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1. Receivables whose amount is insignificant individually but for which provision for bad debts is withdrawn individually

Reasons for withdrawing provision for bad debts individually

The present value of the future cash flow of receivables significantly differs from that of the receivable combination with age as credit risk feature

Withdrawal method for provision for bad debts

Provision for bad debts is withdrawn as per the difference of the present value of the future cash flow below the book value.

For other receivables including notes receivable, interests receivable, long-term receivables, provision for bad debts is withdrawn as per the difference of the present value of the future cash flow below the book value.

(XI) Inventories

1. Classification of inventories

Inventories include the land for development held for sale or use during development and operation, developed products, developed products which are intended to be sold but are temporarily rented, short-term house, material inventory, equipment inventory and low-value consumables, as well as development cost during development.

1. Method for appraising outgoing inventories

2. (1) Outgoing materials and equipment should be appraised by weighted average method at the end of month.

3. (2) During project development, the land for development should be amortized as per the land area of the developed products and be stated in the development cost of the project.

4. (3) Accounting for the developed products should be carried out by floor area averaging method.

5. (4) The developed products which are intended to be sold but are temporarily rented are amortized evenly on a straight line basis over the expected service life of the Company’s fixed assets of the same type.

6. (5) If the public supporting facilities are completed earlier than relevant developed products, after completion settlement, the public supporting facilities should be amortized as per floor area of relevant development project and be stated in the development cost of relevant development project; if the public supporting facilities are completed later than relevant developed products, the expenses for public supporting facilities should be accrued by relevant developed products first, and then the cost of relevant developed product should be adjusted as per the difference between the actual amount and the accrued amount after completion settlement of the public supporting facilities.

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3. Determination basis of net realizable value of inventories

On the balance sheet date, inventories are measured by the lower of cost and net realizable value, and provision for inventory depreciation is withdrawn as per the difference by which the inventory cost is higher than the net realizable value. The net realizable values of inventories for direct sales are determined by the estimated selling prices of the inventories minus estimated sales expenses and related taxes during normal production and operation; the net realizable values of inventories needing to be processed are determined by the estimated selling prices of finished goods made from the said inventories minus the estimated costs to be incurred until completion, estimated sales expenses and related taxes during normal production and operation; in case the price of part of an inventory is specified in the contract but that of the other parts under the same account is not specified in the contract by the balance sheet date, their net realizable values are determined separately and compared with their corresponding costs in order to determine the amount for withdrawal or reversal of provision for inventory depreciation.

1. Stocktaking system for inventories

Stocktaking is based on perpetual inventory system.

1. Amortization of low-value consumables

Low-value consumables are amortized by lump sum.

(XII) Assets classified as held-for-sale assets

The Company classifies the non-current assets (excluding financial assets) meeting the following conditions as held-for-sale assets: 1. the component part must be available for immediate sales under the current conditions merely according to general and common terms on sale of the component part; 2. a resolution has been made regarding disposal of the component part; 3. an irrevocable transfer agreement has been signed with the transferee; 4. the transfer is very likely to be completed within a year.

(XIII) Long-term equity investment

1. Determination of joint control and significant influence

Joint control is the contractually agreed sharing of control over an arrangement, and exists only when the activities relating to the arrangement require the unanimous consent of the parties sharing control. Significant influence is the power to participate in decisions of the financial and operating policies of the invested entity but is not control or joint control over formulation of those policies with other parties.

1. Determination of investment cost

2. (1) Regarding merger of enterprises under the same control, the merging party takes cash payment, transfer of non-cash assets, bearing of liability, or issue of equity securities as

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FINANCIAL INFORMATION OF JINKE PROPERTY

consideration for merger, the share of the book value of owners’ equity of the merged party obtained on the date of merger in the consolidated financial statements of the ultimate controller is taken as the initial investment cost thereof. The capital reserve is adjusted as per the difference between the initial investment cost of the long-term equity investments and the book value of the paid consideration for merger or the aggregate book value of shares issued; in case of capital reserve insufficient for writedown, the retained earnings will be adjusted.

When long-term equity investment is obtained through merger of enterprises under the same control achieved by multiple transactions in stages, the Company determines whether it is a “package deal”. If it is a “package deal”, various transactions are considered as a transaction for acquisition of control in accounting. If it is not a “package deal”, on the date of merger, the initial investment cost is recognized at the share of the book value of net assets of the merged party in the consolidated financial statements of the ultimate controller. The capital reserve is adjusted as per the difference between the initial investment cost of the long-term equity investments on the date of merger and the sum of the book value of the long-term equity investment before merger and the book value of the paid consideration for the newly acquired shares on the date of merger; in case of capital reserve insufficient for writedown, the retained earnings will be adjusted.

• (2) For the merger of enterprises not under the same control, the fair value of the paid consideration for merger is taken as the initial investment cost on the date of acquisition.

When the long-term equity investment is obtained through merger of enterprises not under the same control achieved by multiple transactions in stages, the Company determines whether it is stated in a stand-alone financial statement or the consolidated financial statements in accounting.

• 1) In a stand-alone financial statement, the sum of the book value of the previously held equity investments and the new investment cost is taken as the initial investment cost stated by cost method.

• 2) In the consolidated financial statements, the Company determines whether it is a “package deal”. If it is a “package deal”, various transactions are considered as a transaction for acquisition of control in accounting. If it is not a “package deal”, for the equity of the acquired party held before the date of acquisition should be re-measured at the fair value of the equity on the date of acquisition, and the difference between the fair value and the book value is stated as current return on investment; if the equity of the acquired party held before the date of acquisition involves other comprehensive income stated by equity method, other comprehensive income relating thereto should be reclassified as current revenue on the date of acquisition, excluding other comprehensive income arising from change in net liabilities or net assets from remeasurement of defined benefit plan by the invested party.

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FINANCIAL INFORMATION OF JINKE PROPERTY

• (3) Long-term equity investment obtained through ways other than merger of enterprises: For acquisition by cash payment, the acquisition price actually paid is taken as the initial investment cost; for acquisition by issue of equity securities, the fair value of the equity securities issued is taken as the initial investment cost; for acquisition by debt reorganization, the initial investment cost is determined in accordance with the Accounting Standards for Business Enterprises No. 12 — Debt Reorganization ; for acquisition by exchange of non-monetary assets, the initial investment cost is determined in accordance with the Accounting Standards for Business Enterprises No. 7 — Exchange of Non-monetary Assets .

3. Subsequent measurement and method for recognizing gain/loss

Long-term equity investments in invested entities are stated using the cost method; long-term equity investments in associated enterprises and joint ventures are stated using the equity method.

1. Accounting for disposal of investments in subsidiaries through multiple transactions in stages, resulting in loss of control

2. (1) Stand-alone financial statement

The difference between the book value of the disposed equity and the consideration actually obtained is stated as current gain/loss. The remaining equity in the invested entities with material impact or joint control with other party is stated by the equity method; the remaining equity in the invested entities without control, joint control or material impact is recognized as financial assets and stated in accordance with relevant provisions of the Accounting Standards for Business Enterprises No. 22 — Recognition and Measurement of Financial Instruments .

• (2) Consolidated financial statements

• 1) Disposal of investments in subsidiaries through multiple transactions in stages resulting in loss of control, which transactions are not “package deal”. Before loss of control, the capital reserve (capital premium) should be adjusted as per the difference between the disposal price and net asset share continuously calculated as from the date of acquisition or merger and held in the subsidiaries after disposal of long-term equity investment. If the capital premium is insufficient for writedown, the retained earnings should be written down. If the control over the original subsidiaries is lost, the remaining equity should be recalculated as per its fair value on the date when the control is lost. The difference obtained after the sum of consideration obtained from disposal of equity and fair value of the remaining equity is subtracted by the share of net assets that are continuously calculated as per the original shareholding percentage as from the date of acquisition or merger and should be enjoyed in the original subsidiaries should be stated as investment income in the period when the control is lost and be used for writedown of goodwill. Other comprehensive income related to the original subsidiaries’ equity investment should be converted into current return on investment at the time of loss of control.

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FINANCIAL INFORMATION OF JINKE PROPERTY

• 2) Disposal of investments in subsidiaries through multiple transactions in stages resulting in loss of control, which transactions are “package deal”. Various transactions should be accounted by taking them as a deal of disposal of the subsidiaries resulting in loss of control. However, before loss of control, the difference between each disposal consideration and net asset share that should be enjoyed in the subsidiaries after disposal of investment should be recognized as other comprehensive income in the consolidated financial statements and be converted into current gain/loss at the time of loss of control.

(XIV) Investment properties

1. Investment properties include the right to use land already rented, the right to use land held and prepared for transfer after appreciation and buildings already rented.

2. Investment properties are initially measured at cost and subsequently measured as per the fair value pattern. For investment properties subsequently measured as per the fair value pattern, the basis for selection of accounting policies is:

3. (1) There is an active real estate transaction market at the location of the investment properties.

4. (2) The Company can obtain the market price and other relevant information of the same type or similar type of real estate from the real estate transaction market, so as to make a reasonable estimate of the fair value of the investment properties.

The Company neither withdraws provisions for depreciation of investment properties nor amortizes investment properties. It adjusts the book values of the investment properties based on their fair values on the balance sheet date and the difference between fair value and the original book value should be stated as current gain/loss.

When the Company has concrete evidence showing that the purpose of the investment properties is changed and transforms the investment properties into self-used properties, the book value of the self-used properties is the fair value on the date of transformation and the difference between the fair value and the original book value should be stated as current gain/loss. When the Company transforms self-used properties or inventories into investment properties measured as per the fair value pattern, the investment properties should be measured as per the fair value on the date of transformation. If the fair value on the date of transformation is less than the original book value, the difference should be stated as current gain/loss. If the fair value on the date of transformation is more than the original book value, the difference should be stated as capital reserve.

(XV) Fixed assets

1. Conditions for recognition of fixed assets

Fixed assets are tangible assets held for the purpose of commodity production, labor provision, lease or operation management and used for more than one fiscal year. Fixed assets are recognized when economic benefits are likely to flow in and their costs can be measured reliably.

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FINANCIAL INFORMATION OF JINKE PROPERTY

1. Method of depreciation of fixed assets

				Annual
		Term of	Residual	depreciation
		depreciation	rate	rate
Category	Method of depreciation	(year)	(%)	(%)
Houses and buildings	Average service life method	35	5	2.71
Decoration of houses	Average service life method	6		16.67
and buildings
Machinery & equipment	Average service life method	10	5	9.5
Power generation related	Average service life method	20	5	4.75
equipment
Electronic equipment	Average service life method	5	5	19
Household appliances	Average service life method	5	5	19
Means of transport	Average service life method	5	5	19
Other equipment	Average service life method	5	5	19

(XVI) Construction in progress

1. Construction in progress is recognized when economic benefits are likely to flow in and their costs can be measured reliably. Construction in progress is measured as per the actual cost incurred before the said assets built reach their intended condition for use.

2. When the construction in progress has reached the intended condition for use, it will be treated as fixed assets as per the actual construction cost. If the construction in progress has reached the intended condition for use but completion accounting is not carried out, the construction in progress should be first treated as fixed assets as per the estimated value. After completion accounting is carried out, the original estimated value should be adjusted as per the actual cost, but the provision for depreciation withdrawn should not be adjusted.

(XVII) Borrowing costs

1. Principle for recognition of capitalization of borrowing costs

If the borrowing costs incurred to the Company can be directly attributed to purchase and construction or production of assets qualified for capitalization, they should be capitalized and stated as relevant asset costs. Other borrowing costs should be recognized as expenses at the time of incurrence and stated as current gains/losses.

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1. Capitalization period of borrowing costs

2. (1) When the borrowing costs meet the following conditions simultaneously, they should be capitalized:

   • 1) asset expenditure has occurred;

   • 2) borrowing cost has occurred;

   • 3) the purchase and construction or production activities needed for bringing the assets into their intended condition for use or sale have been commenced.

3. (2) If the purchase and construction or production of the assets qualified for capitalization are discontinued abnormally, and the discontinuation lasts for over three months, capitalization of the borrowing costs should be suspended. Borrowing costs incurred during discontinuation should be recognized as current expenses until the purchase and construction or production activities resume.

4. (3) When the assets qualified for capitalization under purchase and construction or production reach their intended condition for use or sale, capitalization of the borrowing costs should be ceased.

5. Capitalization rate and amount of borrowing costs

If special loans are borrowed for purchase and construction or production of assets qualified for capitalization, the amount obtained after the interest expenses (including amortization of discount or premium determined by the effective interest rate method) actually incurred in the period when the special loans are borrowed are subtracted by the interest income from depositing the unused borrowings in the bank or return on temporary investment with the unused borrowings should be recognized as the interest amount that should be capitalized. If the general loans are occupied for the purchase and construction or production of assets qualified for capitalization, the interest amount of general loans that should be capitalized should be calculated and determined based on the weighted average of the surplus between accumulated asset expenditure and the asset expenditure of special loans times the capitalization rate of the occupied general loans.

(XVIII) Intangible assets

1. Intangible assets including land use right, software and trademark right should be initially measured as per cost.

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FINANCIAL INFORMATION OF JINKE PROPERTY

1. Intangible assets with limited service life should be amortized systematically and reasonably in their service lives as per the expected form of realization economic benefits relating to the said intangible assets. If the form of realization cannot be reliably determined, the intangible assets should be amortized on a straight-line basis. Specific service lives are as follows:

	Amortization
Item	period (years)
Land use right	30-50
Software	5
Trademark right	5

(XIX) Impairment of some long-term assets

If there are signs that impairment of long-term assets such as long-term equity investments, fixed assets, construction in progress and intangible assets with limited service life may occur on the balance sheet date, their recoverable amount should be estimated. Regarding goodwill resulting from business merger and intangible assets with indefinite service life, impairment test should be conducted every year regardless whether there is any sign of impairment. The goodwill should, together with the related asset group or combination of asset group, be subject to the impairment test.

If the recoverable amount of the abovementioned long-term assets is lower than their book value, the difference should be recognized as provision for impairment and stated as current gain/loss.

(XX) Long-term prepaid expenses

Long-term prepaid expenses refer to expenses incurred which have an amortization term of more than one year (exclusive). Long-term prepaid expenses are stated at the amount actually incurred, and amortized evenly by stages in the benefit period or specified period. If long-term prepaid expenses are not beneficial to subsequent accounting periods, the remaining value of the items after amortization should be stated as current gain/loss.

(XXI) Remuneration of employees

1. Remuneration of employees includes short-term remuneration, post-employment benefits, termination benefits and other long-term employee benefits.

2. Accounting for short-term remuneration

During the accounting period when the employees serve the Company, the short-term remuneration actually incurred should be recognized as liability and stated as current gain/loss or relevant asset cost.

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APPENDIX II

1. Accounting for post-employment benefits

Post-employment benefits include defined contribution plan and defined benefit plan.

• (1) During the accounting period when the employees serve the Company, the amount to be contributed as calculated according to the defined contribution plan should be recognized as liability and stated as current gain/loss or relevant asset cost.

• (2) Accounting for defined benefit plan should usually include the following procedures:

• 1) According to the expected cumulative unit credit method, relevant demographic variable and financial variable should be estimated based on unbiased and mutually consistent actuarial assumption, so as to calculate the obligations resulting from the defined benefit plan and determine the period of relevant obligations. Meanwhile, the obligations resulting from the defined benefit plan are discounted so as to determine the present value of obligations resulting from the defined benefit plan and current service cost;

• 2) If the defined benefit plan has assets, the deficit or surplus obtained after the present value of obligations resulting from the defined benefit plan is subtracted by the fair value of assets of the defined benefit plan should be recognized as a net liability or net asset of the defined benefit plan. If the defined benefit plan has surplus, the net assets of the defined benefit plan should be measured based on the lower of surplus and asset limit of the defined benefit plan;

• 3) At the end of the period, the employee remuneration cost resulting from the defined benefit plan should be recognized as service cost, net interest of net liabilities or net assets of the defined benefit plan, and change resulting from recalculation of net liabilities or net assets of the defined benefit plan. In particular, the service cost and the net interest of the net liabilities or net assets of the defined benefit plan should be stated as current gain/loss or relevant asset cost. Change resulting from recalculation of the net liabilities or net assets of the defined benefit plan should be stated as other comprehensive income and should not be converted into gain/loss in subsequent accounting period, but the amount recognized as other comprehensive income may be transferred within the equity scope.

4. Accounting for termination benefit

Regarding termination benefits provided to the employees, liabilities of employee remuneration resulting from termination benefits should be recognized at the earlier of the following dates and stated as current gains/losses:

• (1) when the Company cannot unilaterally cancel the termination benefits provided due to cancellation of labor relation plans or cutdown proposals;

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APPENDIX II

• (2) when the Company recognizes costs or expenses relating to restructuring involving payment of termination benefits.

• Accounting for other long-term employee benefits

If other long-term benefits provided to employees comply with defined contribution plan, accounting should be carried out according to the relevant provisions of the defined contribution plan; Other long-term benefits should be accounted according to the relevant provisions of the defined benefit plan. To simplify accounting, the employee remuneration cost arising therefrom should be recognized as service cost, and the sum of the net interest of net liabilities or net assets of other long-term employee benefits and change resulting from recalculation of net liabilities or net assets of other long-term employee benefits should be stated as current gain/loss or relevant asset cost.

(XXII) Estimated liabilities

1. Obligations resulting from contingencies such as provision of external guarantee, litigation matters, product quality assurance and loss contract are present obligations of the Company. Performance of the said obligations may lead to outflow of economic benefits from the Company. Moreover, when the amount of the said obligations can be measured reliably, the Company should recognize the obligations as estimated liabilities.

2. The Company should initially measure the estimated liabilities based on the best estimate it needs to pay for performance of relevant present obligations and review the book value of the estimated liabilities on the balance sheet date.

(XXIII) Accounting for maintenance funds

According to the relevant provisions at the location of the developed projects, the maintenance funds should be collected from the house buyer or withdrawn and stated by the Company as development costs of relevant developed projects at the time of sale (presale) of the developed projects and uniformly turned in to the maintenance fund management department.

(XXIV) Accounting for quality assurance funds

The quality assurance funds should be deducted from the project payment for the construction unit according to the construction contracts. Maintenance expense incurred in the warranty period of the developed projects should be written down by the quality assurance funds. The balance of the quality assurance funds should be returned to the construction unit upon expiry of the specified warranty period of the developed projects.

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FINANCIAL INFORMATION OF JINKE PROPERTY

(XXV) Other financial instruments including preferred stocks and perpetual bonds

According to standards relating to financial instruments and Provisions on the Distinction between Financial Liability and Equity Instruments and the Relevant Accounting Treatment (Cai Kuai [2014] No. 13), regarding the financial instruments like perpetual bonds, the Company should, according to the contract terms of the financial instruments issued and the economic essence they reflect rather than based on legal form only, and with reference to the definitions of financial assets, financial liabilities and equity instruments, classify such financial instruments or their constituents as financial assets, financial liabilities or equity instruments at the time of initial recognition. On the balance sheet date, regarding financial instruments classified as equity instruments, their interest expense or dividend payout should be used for the Company’s profit distribution and their repurchase and cancellation should be taken as equity change; regarding financial instruments classified as financial liabilities, their interest expense or dividend payout should be taken as borrowing cost and the gains or losses resulting from their repurchase or redemption should be stated as current gains/losses.

(XXVI) Revenue

1. Revenue from real estate sales

When the developed projects are completed and pass acceptance inspection, the sales contract is signed, the obligations specified in the contract are fulfilled, the major risks and rewards concerning the ownership of the developed projects are transferred to the buyers, the Company should no longer reserve continuous management right generally related to ownership or implement effective control over the developed projects sold. That is, when the procedures for delivery of houses are completed or the customers can be deemed as having received the houses according to the conditions specified in the sales contract, the amount of revenue can be measured reliably and relevant economic benefits are likely to flow in, namely, the buyers’ payment proof is obtained (usually, it means the down payment in the sales contact has been received and the arrangements for the remaining house payment have been confirmed), and relevant costs incurred or to be incurred can be measured reliably, sales revenue should be recognized.

Sale of self-used houses: When major risks and rewards concerning the ownership of the self-used houses are transferred to the buyers, the Company should not reserve continuous management right generally related to ownership or implement effective control over the developed projects sold. When the amount of revenue can be measured reliably, relevant economic benefits are likely to flow in, and relevant costs incurred or to be incurred can be measured reliably, the sales revenue should be recognized.

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APPENDIX II

2. Sales of commodities

Revenue from sales of commodities should be recognized when the following conditions are simultaneously satisfied:

• (1) the major risks and rewards concerning the ownership of the commodities are transferred to the buyers;

• (2) the Company no longer reserves the continuous management right generally related to ownership, or implements effective control over the commodities sold;

• (3) the amount of revenue can be measured reliably;

• (4) relevant economic benefits are likely to flow in;

• (5) relevant costs incurred or to be incurred can be measured reliably.

• Provision of labor

If the transaction result of provision of labor can be measured reliably on the balance sheet date (the amount of revenue can be measured reliably, relevant economic benefits are likely to flow in, the progress of completion of transaction can be determined reliably, and the costs incurred and to be incurred can be measured reliably), the revenue from provision of labor should be recognized by the percentage-of-completion method. If the transaction result of provision of labor cannot be measured reliably on the balance sheet date, and the labor cost incurred can be made up upon prediction, the amount of the labor cost incurred should be recognized as revenue from provision of labor and the labor cost should be carried over as per the same amount. If the labor cost incurred cannot be made up upon prediction, the labor cost incurred should be stated as current gain/loss and the labor revenue should not be recognized.

Regarding property management, the property management revenue should be recognized when the property management service has been provided, the economic benefits relating to property management may flow into the enterprise and the costs relating to property management can be measured reliably.

4. Transfer of right to use assets

Revenue from transfer of right to use assets should be recognized when relevant economic benefits are likely to flow in and the amount of revenue can be measured reliably. Interest revenue should be determined as per the time of use of the Company’s monetary funds by others and the actual interest rate. Royalty revenue should be calculated and determined as per the charging time and method specified in relevant contract or agreement.

Regarding property lease, revenue from property lease should be recognized as per the lease term and rent specified in the lease contract or agreement when relevant economic benefits are likely to flow in.

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APPENDIX II

5. Construction contracts

If the result of the construction contracts can be measured reliably on the balance sheet date, the contract revenue and contract expenses should be recognized by the percentage-of-completion method. If the result of the construction contracts cannot be measured reliably on the balance sheet date, and the contract cost can be recovered, the contract revenue should be recognized as per the actual contract cost that can be recovered and the contract cost should be recognized as contract expense in the period when it is incurred. If the contract cost cannot be recovered, it should be immediately recognized as contract expense when it is incurred and the contract revenue should not be recognized.

If the estimated total contract cost exceeds the total contract revenue on the balance sheet date, the estimated loss should be recognized as current expense. Regarding construction contracts under performance, the difference thereof should be withdrawn for provisions for inventory depreciation. Regarding onerous contract to be performed, the difference thereof should be recognized as estimated liability.

Operating revenue of houses and projects subject to agency construction should be recognized by the percentage-of-completion method when an irrevocable construction contract has been signed for the houses and projects subject to agency construction, the economic benefits relating to the houses and projects subject to agency construction can flow into the enterprise, the stage of completion of the houses and projects subject to agency construction can be measured reliably, and the relevant costs of the houses and projects subject to agency construction can be measured reliably.

6. Revenue from electricity sales

Revenue from electricity sales should be recognized when the electricity is supplied to the provincial grid company at the location of the power plant. The Company should recognize the amount of revenue from electricity sales as per the fair value of the received or receivable contract or agreement price.

7. Revenue from other businesses

According to the provisions of relevant contract or agreement, revenue from other businesses should be recognized when the economic benefits relating to the transaction can flow into the enterprise and the revenue-related cost can be measured reliably.

(XXVII) Government subsidies

1. Judgment basis and accounting for assets-related government subsidies

The assets-related government subsidies refer to the government subsidies obtained by the Company and used for purchasing and constructing or otherwise forming long-term assets. The assets-related government subsidies are recognized as deferred incomes, evenly allocated in the service life of relevant assets, and stated as current gains/losses. However, the government subsidies measured as per nominal amount are directly stated as current gains/losses.

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APPENDIX II

1. Judgment basis and accounting for income-related government subsidies

The income-related government subsidies refer to government subsidies other than assets-related government subsidies. The income-related government subsidies should be recognized as deferred incomes if they are used for making up relevant expenses or losses in the subsequent period and should be stated as current gains/losses during the period when relevant expenses are recognized. The income-related government subsidies used for making up relevant expenses or losses incurred should be directly stated as current gains/losses.

(XXVIII) Deferred tax assets and deferred tax liabilities

1. According to the difference between the book values of the assets and liabilities and their tax basis (if the tax basis for items not recognized as assets and liabilities can be determined according to tax law, the difference is that between the tax basis and their book values), the deferred tax assets or deferred tax liabilities should be calculated and recognized as per the prevailing tax rate during the period when the assets are expected to be recovered or the liabilities are liquidated.

2. Deferred tax assets should be recognized when it is likely to obtain the taxable income used for deducting a deductible temporary difference. If, on the balance sheet date, there is concrete evidence showing that it is likely to obtain sufficient taxable income for deducting a deductible temporary difference in the future, the deferred tax assets unrecognized in the previous accounting periods should be recognized.

3. If, upon review of the book value of the deferred tax assets on the balance sheet date, it is unlikely to obtain sufficient taxable income for deducting the benefit of deferred tax assets in the future, the book value of the deferred tax assets should be written down. If sufficient taxable income is likely to be obtained, the amount written down will be restated.

4. The Company’s current income tax and deferred income tax should be taken as income tax expense or gain and stated as current gain/loss, but income tax resulting from the following circumstances should be excluded:

5. (1) M&A of enterprise;

6. (2) transactions or matters directly recognized in the owner’s equity.

(XXIX) Operating lease

If the Company is a lessee, the rent should be stated as relevant asset cost or recognized as current gain/loss on a straight-line basis in various periods of the lease period, and the initial direct cost should be directly stated as current gain/loss. Contingent rents should be stated as current gains/losses when they are actually incurred. If the Company is a lessor, the rent should be stated as current gain/loss on a straight-line basis in various periods of the lease period, and the initial direct expense incurred should be directly stated as current gain/loss except the large amount that will be capitalized and stated as gain/loss by stages. Contingent rents should be stated as current gains/losses when they are actually incurred.

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FINANCIAL INFORMATION OF JINKE PROPERTY

APPENDIX II

(XXX) Significant accounting policy changes

(1) Contents of and reasons for the changes in accounting policies

From 1 July 2014, the Company began to implement the following accounting standards issued by the Ministry of Finance in 2014, including the Accounting Standards for Business Enterprises No. 39 — Fair Value Measurement, Accounting Standards for Business Enterprises No. 40 — Joint Venture Arrangements , Accounting Standards for Business Enterprises No. 41 — Interests in Other Subjects in the Disclosure , and the revised Accounting Standards for Business Enterprises No. 2 — Long-term Equity Investments , Accounting Standards for Business Enterprises No. 9 — Employee Compensation , Accounting Standards for Business Enterprises No. 30 — Presentation of Financial Statements , and Accounting Standard for Business Enterprises No. 33 — Consolidated Financial Statements . In the meantime, the Company also adopted the Accounting Standards for Enterprises No. 37 — Presentation of Financial Instruments revised by the Ministry of Finance in 2014 in the Financial Statements. The said changes in accounting policies were approved by the Company at the 9th meeting of the 9th Board of Directors.

(2) Report items and amounts that are significantly affected

Report items that are significantly affected	Amount affected	Notes
Items in the balance sheet dated 31 December 2013
Capital reserves	-559,740,586.31	[Note 1]
Other comprehensive income	559,740,586.31	[Note 1]
Deferred earnings	62,807,756.66	[Note 2]
Other non-current liabilities	-62,807,756.66	[Note 2]

• [Note 1] According to the revised Accounting Standards for Business Enterprises No. 39 — Fair Value Measurement and Accounting Standards for Business Enterprises No. 30 — Presentation of Financial Statements , the Company shifted the gains/losses from change in fair value of available-for-sale financial assets and the difference between the fair value and book value of investment property converted from inventories from the item “capital reserves” to the item “other comprehensive income for accounting.

• [Note 2] According to the revised Accounting Standards for Business Enterprises No. 30 — Presentation of Financial Statements , the Company shifted the assets-related government subsidies from the item “other non-current liabilities” to the item “deferred earnings” for accounting.

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FINANCIAL INFORMATION OF JINKE PROPERTY

APPENDIX II

IV. Taxes

(I) Principal taxes and tax rates

Taxes	Tax basis	Tax rates
VAT	Sale of goods or provision of	3%, 6%, 13%, 17%
	taxable services
Business tax	Taxable turnover	3%, 5%
Land appreciation tax	Appreciation value resulting	30%-60% of super-rate
	from paid transfer of use right	progressive tax rate
	of state-owned land, and
	property right of above-ground
	structures and other attachments
	Prepaid VAT: payment for	1%-5%
	commodity houses collected in
	advance
Property tax	For ad valorem collection, 1.2%	1.2%, 12%
	of the remaining value after 30%
	of the original value of the
	property is deducted by lump
	sum; for rent-based collection,
	12% of the rental income
Municipal maintenance and	Amount of turnover tax payable	5%, 7%
construction tax
Education surcharge	Amount of turnover tax payable	3%
Local education surcharge	Amount of turnover tax payable	2%
Enterprise income tax	Taxable income	16.5%, 25%

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FINANCIAL INFORMATION OF JINKE PROPERTY

APPENDIX II

Corporate income tax rate of taxpayers entitled to different tax rates

	Income
Name of taxpayer	tax rate
Chongqing Jinke Real Estate Development Co., Ltd. (hereinafter referred to	15%
as Chongqing Jinke)
Chongqing Hechuan Jinke Hejun Real Estate Co., Ltd. (hereinafter referred to	15%
as Hejun Real Estate)
Chongqing Bozhan Real Estate Development Co., Ltd. (hereinafter referred to	15%
as Bozhan Real Estate)
Chongqing Jinke Xingju Real Estate Co., Ltd. (hereinafter referred to as	15%
Xingju Real Estate)
Chongqing Zhongxun Property Development Co., Ltd. (hereinafter referred to	15%
as Zhongxun Property)
Chongqing Tianyuansheng Real Estate Development Co., Ltd. (hereinafter	15%
referred to as Tianyuansheng Real Estate)
Chongqing Bishan Jinke Zhongxi Real Estate Co., Ltd. (hereinafter referred	15%
to as Zhongxi Real Estate)
Chongqing Jiale Jiulong Real Estate Development Co., Ltd. (hereinafter	15%
referred to as Jiale Jiulong)
Chongqing Jinke Junyao Real Estate Development Co., Ltd. (hereinafter	15%
referred to as Junyao Real Estate)
Chongqing Jinke Shangzun Real Estate Co., Ltd. (hereinafter referred to as	15%
Shangzun Real Estate)
Chongqing Jinke Tuhong Real Estate Co., Ltd. (hereinafter referred to as	15%
Tuhong Real Estate)
Chongqing Jinke Hotel Co., Ltd. (hereinafter referred to as Jinke Hotel)	15%
Chongqing Kelsinki Landscaping Co., Ltd. (hereinafter referred to as	15%
Kelsinki)
Chongqing Zhanhong Landscaping Co., Ltd. (hereinafter referred to as	15%
Zhanhong Landscaping)
Chongqing Qingke Trading Co., Ltd. (hereinafter referred to as Qingke	15%
Trading)
Chongqing Jinke Property Service Co., Ltd. (hereinafter referred to as Jinke	15%
Property)
Xinjiang Huaran Oriental New Energy Co., Ltd. (hereinafter referred to as	[Note 1]
Xinjiang Huaran)
Jinyu Holdings Group Co., Ltd. (hereinafter referred to as Jinyu Holdings)	[Note 2]
Hong Kong Junde International Trade Co., Limited (hereinafter referred to as	16.5%
Hong Kong Junde)
Other taxpayers than the abovementioned ones	25%

[Note 1] Refer to the tax preferences for taxes in the notes to the financial statements for details.

[Note 2] Jinyu Holdings is registered in British Virgin Islands and regularly pays annual government fees according to the laws and regulations of British Virgin Islands.

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FINANCIAL INFORMATION OF JINKE PROPERTY

APPENDIX II

• (II) Tax preferences

1. VAT

According to the Notice about Policies regarding the Value Added Tax on Products Made through Comprehensive Utilization of Resources and Other Products (Cai Shui [2008] No. 156) issued by the Ministry of Finance and the State Administration of Taxation, the VAT on the power projects generated by Xinjiang Huaran with wind power is subject to policy of 50% immediate refund upon collection.

2. Enterprise income tax

According to the Catalogue of Industries Encouraged to Develop in the Western Region (Fa Gai Wei Ling No. 15 [2014]) issued by National Development and Reform Commission, Notice on Tax Policy Issues Concerning Further Implementing the Western China Development Strategy (Cai Shui No. 58 [2011]) of the Ministry of Finance and the State Administration of Taxation and replies from competent tax authorities, in 2014 an enterprise income tax rate of 15% was temporarily imposed on Chongqing Jinke, Hejun Real Estate, Bozhan Real Estate, Xingju Real Estate, Zhongxun Property, Tianyuansheng Real Estate, Zhongxi Real Estate, Jiale Jiulong, Junyao Real Estate, Shangzun Real Estate, Tuhong Real Estate, Jinke Hotel, Kelsinki, Zhanhong Landscaping, Qingke Trading and Jinke Property.

According to NDRC’s Reply Concerning Approval of 2 Million KW Wind Power Project in Southeast Wind Region in Hami, Xinjiang (Fa Gai Neng Yuan No. 2561 [2012]), Yandun-based 6[th] Wind Power Plant Project was invested and constructed by Xinjiang Huaran. Xinjiang Huaran’s main business is “generation and supply of electric power (wind power)”, which falls under the “new wind power generation projects” under the category of electric power of List of Public Infrastructure Projects Enjoying Enterprise Income Tax Preferences (Version 2008) . Therefore, Xinjiang Huaran was exempt from enterprise income tax from 2014 (when it obtained the first revenue) to 2016 and was allowed a 50% reduction in enterprise income tax from 2017 to 2019.

• (III) According to the Enterprise Income Tax Law of the People’s Republic of China , the branches of Jinke Property shall, on a consolidated basis, declare and pay enterprise income tax to the tax authority where Jinke Property is registered rather than to the tax authority at their locations. These branches include Beijing Branch, Wuxi Branch, Jiangyin Branch, Kaixian Branch, Chenzhou Branch, Hunan Branch, Chengdu Branch, Neijiang Branch, Suzhou Branch, Fuling Branch, Wujiang Branch, Nantong Branch, Zhangjiagang Branch, Shandong Branch, Rugao Branch, Wuxi Nanchang Branch, West Chongqing Branch, Beijing Changping Branch, Shaanxi Branch, Wujiaqu Property Company, Zunyi Branch, Qingdao Branch and Yunnan Branch. Jinke Property and its Chongqing Branch shall pay enterprise income tax at a rate of 15% and other branches at a rate of 25%.

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FINANCIAL INFORMATION OF JINKE PROPERTY

APPENDIX II

V. Notes to items in the consolidated financial statement

• (I) Notes to items in the consolidated balance sheet

1. Monetary funds

Item Cash on hand Bank deposit Other monetary funds Total Including: Total of deposits with overseas bank	Amount at the end of the period 1,223,580.13 5,804,058,681.51 1,721,849,342.67 7,527,131,604.31 1,019,777.25	Amount at the beginning of the period 3,505,688.92 4,709,307,899.81 1,651,690,051.17
		6,364,503,639.90
		1,024,692.82

1. Financial assets at fair value through profit or loss

	Amount at the	Amount at the
	end of the	beginning of the
Item	period	period
Financial assets at fair value through profit or loss	—	2,340,000.00
Including: Others	—	2,340,000.00
Total	—	2,340,000.00

3. Notes receivable

• (1) Details

Item Bank acceptance bill Total	Amount at the end of the period Book balance Provision for bad debts Book value 15,300,000.00 — 15,300,000.00 15,300,000.00 — 15,300,000.00	Amount at the beginning of the period Book balance Provision for bad debts Book value 1,050,000.00 — 1,050,000.00 1,050,000.00 — 1,050,000.00	Amount at the beginning of the period Book balance Provision for bad debts Book value 1,050,000.00 — 1,050,000.00 1,050,000.00 — 1,050,000.00
			1,050,000.00

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APPENDIX II

FINANCIAL INFORMATION OF JINKE PROPERTY

• (2) Notes receivable which had been endorsed or discounted by the Company at the end of the period and were not mature by the balance sheet date

	Amount	Amount not
	derecognized	derecognized
	at the end of the	at the end of the
Item	period	period
Bank acceptance bill	2,184,485.15	—
Subtotal	2,184,485.15	—

1. Accounts receivable

2. (1) Details

3. 1) Classified details

		**Amount at the end of the **	**Amount at the end of the **	period
	Book balance		**Provision for **	bad debts
				Provision
				withdrawal
		Percentage		percentage
Classification	Amount	(%)	Amount	(%)	Book value
Accounts receivable whose
amount is significant
individually and for which
provision for bad debts is
withdrawn individually	—	—	—	—		—
Accounts receivable for which
provision is withdrawn for bad
debts in portfolio by credit
risks	732,311,933.05	100.00	23,303,753.91	3.18	709,008,179.14
Accounts receivable whose
amount is insignificant
individually but for which
provision for bad debts is
withdrawn individually	—	—	—	—		—
Total	732,311,933.05	100.00	23,303,753.91	3.18	709,008,179.14

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APPENDIX II

FINANCIAL INFORMATION OF JINKE PROPERTY

Classification Accounts receivable whose amount is significant individually and for which provision for bad debts is withdrawn individually Accounts receivable for which provision is withdrawn for bad debts in portfolio by credit risks Accounts receivable whose amount is insignificant individually but for which provision for bad debts is withdrawn individually Total	Amount at the end of the period Book balance Provision for bad debts Amount Percentage (%) Amount Provision withdrawal percentage (%) — — — — 222,696,986.63 100.00 12,182,447.96 5.47 — — — — 222,696,986.63 100.00 12,182,447.96 5.47	Book value — 210,514,538.67 —
		210,514,538.67

• 2) Accounts receivable for which provision is withdrawn for bad debts as per age analysis method in portfolio

Age Within 1 year 1-2 years 2-3 years 3-5 years Over 5 years Subtotal	Amount at the end of the period Book balance Provision for bad debts Provision withdrawal percentage (%) 656,224,972.95 6,562,249.73 1.00 36,552,828.43 1,827,641.43 5.00 25,458,432.05 5,091,686.41 20.00 8,507,046.57 4,253,523.29 50.00 5,568,653.05 5,568,653.05 100.00 732,311,933.05 23,303,753.91 3.18	Amount at the end of the period Book balance Provision for bad debts Provision withdrawal percentage (%) 656,224,972.95 6,562,249.73 1.00 36,552,828.43 1,827,641.43 5.00 25,458,432.05 5,091,686.41 20.00 8,507,046.57 4,253,523.29 50.00 5,568,653.05 5,568,653.05 100.00 732,311,933.05 23,303,753.91 3.18
		3.18

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FINANCIAL INFORMATION OF JINKE PROPERTY

APPENDIX II

• (2) Provision for bad debts withdrawn, recovered or reversed in the current period

• 1) The amount withdrawn for bad debts in the current period is RMB10,677,881.65.

• (3) Top five entities in amount of accounts receivable

Entity name Customer 1 Customer 2 Customer 3 Customer 4 Customer 5 Subtotal	Book balance Percentage in balance of accounts receivable (%) Provision for bad debts 44,342,430.00 6.06 443,424.30 42,132,966.39 5.75 421,329.66 25,658,028.54 3.50 256,580.29 13,698,086.00 1.87 136,980.86 12,990,591.00 1.77 129,905.91 138,822,101.93 18.95 1,388,221.02	Book balance Percentage in balance of accounts receivable (%) Provision for bad debts 44,342,430.00 6.06 443,424.30 42,132,966.39 5.75 421,329.66 25,658,028.54 3.50 256,580.29 13,698,086.00 1.87 136,980.86 12,990,591.00 1.77 129,905.91 138,822,101.93 18.95 1,388,221.02
		1,388,221.02

1. Advance payments

2. (1) Age analysis

3. 1) Details

	Amount at the end of the period	Amount at the end of the period	Amount at the end of the period		**Amount at the beginning **	**Amount at the beginning **	of the period	of the period
			Provision				Provision
	Book	Percentage	for bad	Book	Book	Percentage	for bad	Book
Age	balance	(%)	debts	value	balance	(%)	debts	value
Within 1 year	748,135,341.27	93.90		748,135,341.27	1,168,798,025.54	98.07		1,168,798,025.54
1-2 years	32,525,117.42	4.08		32,525,117.42	14,320,938.96	1.20		14,320,938.96
2-3 years	7,702,677.79	0.97		7,702,677.79	3,077,335.10	0.26		3,077,335.10
Over 3 years	8,338,849.62	1.05		8,338,849.62	5,589,460.51	0.47		5,589,460.51
Total	796,701,986.10	100.00		796,701,986.10	1,191,785,760.11	100.00		1,191,785,760.11

• 2) Reasons for delayed settlement of material advance payments maturing in more than one year

Entity name

Amount at the end Reason for delayed of the period settlement

Chengdu Urban Gas Co., Ltd. 10,091,250.00 Conditions for settlement are not met yet Neijiang China Resources Gas Co., Conditions for settlement are Ltd. 4,787,440.00 not met yet Subtotal 14,878,690.00

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FINANCIAL INFORMATION OF JINKE PROPERTY

APPENDIX II

• (2) Top five entities in amount of advance payments

Entity name Comprehensive Trading Center of Public Resources of Chongqing Wanzhou District Chengdu Public Resources Trading and Service Center Suining Public Resources Trading and Service Center Chongqing Administration of Land, Resources and Housing Sanyo Elevator (Zhuhai) Co., Ltd. Subtotal	Book balance Percentage in balance of advance payments (%) 270,000,000.00 33.89 124,556,650.00 15.63 100,000,000.00 12.55 100,000,000.00 12.55 36,175,306.70 4.54 630,731,956.70 79.16	Book balance Percentage in balance of advance payments (%) 270,000,000.00 33.89 124,556,650.00 15.63 100,000,000.00 12.55 100,000,000.00 12.55 36,175,306.70 4.54 630,731,956.70 79.16
		79.16

1. Other receivables

2. (1) Details

3. 1) Classified details

		**Amount **	at the end of the period	at the end of the period
	Book balance		Provision for bad debts
				Provision
				withdrawal
		Percentage		percentage
Classification	Amount	(%)	Amount	(%)	Book value
Receivables whose amount is
significant individually and
for which provision for bad
debts is withdrawn
individually	—	—	—	—	—
Receivables for which
provision is withdrawn for
bad debts in portfolio by
credit risks	1,817,727,098.28	100.00	80,652,822.91	4.44	1,737,074,275.37
Receivables whose amount is
insignificant individually but
for which provision for bad
debts is withdrawn
individually	—	—	—	—	—
Total	1,817,727,098.28	100.00	80,652,822.91	4.44	1,737,074,275.37

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APPENDIX II

FINANCIAL INFORMATION OF JINKE PROPERTY

			**Amount at **	the beginning of the period	the beginning of the period
			Book balance	Provision for bad debts
					Provision
					withdrawal
			Percentage		percentage
Classification		Amount	(%)	Amount	(%)	Book value
Receivables whose amount is
significant individually and for
which provision for bad debts
is withdrawn individually		190,000,000.00	10.12	3,000,000.00	1.58	187,000,000.00
Receivables for which provision
is withdrawn for bad debts in
portfolio by credit risks	1,686,779,552.31		89.88	50,705,369.93	3.01	1,636,074,182.38
Receivables whose amount is
insignificant individually but
for which provision for bad
debts is withdrawn individually		—	—	—	—	—
Total	1,876,779,552.31		100.00	53,705,369.93	2.86	1,823,074,182.38

• 2) Other receivables for which provision is withdrawn for bad debts as per age analysis method in portfolio

	**Amount at the end of the **	**Amount at the end of the **	period
			Provision
		Provision for	withdrawal
Age	Book balance	bad debts	percentage (%)
Within 1 year	939,354,971.86	9,393,549.72	1.00
1-2 years	202,067,295.39	10,103,364.76	5.00
2-3 years	99,436,941.57	19,887,388.31	20.00
3-5 years	20,848,987.45	10,424,493.73	50.00
Over 5 years	30,844,026.39	30,844,026.39	100.00
Subtotal	1,292,552,222.66	80,652,822.91	6.24

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FINANCIAL INFORMATION OF JINKE PROPERTY

APPENDIX II

• 3) Other receivables for which provision is withdrawn for bad debts as per other methods in portfolio

	**Amount at the end of the **	**Amount at the end of the **	period
			Provision
		Provision for	withdrawal
Portfolio name	Book balance	bad debts	percentage (%)
Cash deposit portfolio	525,174,875.62	—	—
Subtotal	525,174,875.62	—	—

• (2) Provision for bad debts withdrawn, recovered or reversed in the current period

• 1) The amount withdrawn for bad debts in the current period is RMB29,943,532.23 and the amount of provision recovered or reversed for bad debts in the current period is RMB3,000,000.00.

• 2) Material provision for bad debts recovered or reversed in the current period

	Amount of provision	Method of
Entity name	recovered or reversed	recovery
Chongqing Jiayihua Technology Industrial Co., Ltd.	3,000,000.00	[Note]
Subtotal	3,000,000.00	—

• [Note] For details about the method of recovery, please refer to Connected Parties and Connected Transactions — Fulfillment of Commitments by Connected Parties in the Notes to the Financial Statements.

• (3) Other receivables classified by payment properties

	Amount at the	Amount at the
	end of the	beginning of the
Payment properties	period	period
Cash deposit	525,174,875.62	599,018,647.68
Land funds	422,305,499.31
Land reclamation funds	166,033,635.00	563,153,672.50
Project cooperation funds	203,977,438.90	40,000,000.00
Receivable suspense payments	354,911,006.55	538,143,996.75
Others	145,324,642.90	136,463,235.38
Total	1,817,727,098.28	1,876,779,552.31

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FINANCIAL INFORMATION OF JINKE PROPERTY

• (4) Top five entities in amount of other receivables

				Percentage
				in balance
				of other	Provision
	Payment	Book		receivables	for bad
Entity name	properties	balance	Age	(%)	debts
People’s Government of	Land funds	422,305,499.31	Within 1 year	23.23	4,223,054.99
Guandu District,
Kunming City
[Note 1]
Liuyang Agricultural	Land reclamation	166,033,635.00	Within 1 year,	9.13	14,698,247.40
Development Co., Ltd.	funds		1-2 years, 2-3 years,
[Note 2]			3-4 years
Chongqing Zhongjun	Project cooperation	148,977,438.90	Within 1 year	8.20	1,489,774.39
Investment Co., Ltd.	funds
[Note 3]
Jinan Real Estate	Advance supervision	118,054,565.00	Within 1 year,	6.49	—
Association [Note 4]	deposit		1-2 years
Suzhou Land Reserve	Bidding deposit	85,500,000.00	Within 1 year	4.70	—
Center [Note 5]
Subtotal		940,871,138.21		51.75	20,411,076.78

• [Note 1] According to the Agreement on Recovery of the Right to Use State-owned Land signed between subsidiary Yunnan Jinke Xinhaihui Real Estate Co., Ltd. (hereinafter referred to as “Jinke Xinhaihui”) and People’s Government of Guandu District, Kunming City on 31 December 2014, People’s Government of Guandu District, Kunming City, in view of planning adjustments, recovered Land KCGD2014-2-A1 won by Jinke Xinhaihui through open bidding at the price specified in the original Contract for Assignment of the Right to Use State-owned Land . People’s Government of Guandu District, Kunming City should return the land transfer price and subsidiary fees already paid by Jinke Xinhaihui.

• [Note 2] which is the expenses on comprehensive land reclamation for the Liuyang Xianrenhu Lake Reservoir Project paid according to the Comprehensive Land Reclamation Agreement and Supplementary Agreement signed between the Company and Liuyang Municipal People’s Government.

• [Note 3] which are the cooperation funds for Zhaomushan O Subregion Project paid according to the Zhaomushan O Subregion Project Cooperation Investment Agreement signed between subsidiary Chongqing Jinke Zhongjun Real Estate Development Co., Ltd. and Chongqing Zhongjun Investment Co., Ltd. as well as the fees for capital occupation specified in the said agreement.

• [Note 4] which is the advance supervision deposit paid by subsidiary Jinan Jinke Xicheng Real Estate Development Co., Ltd. according to the Implementation Rules of Supervision on Advance Deposit for Commodity Houses in Jinan .

• [Note 5] which is the bidding deposit paid by subsidiary Wuxi Jinke Real Estate Development Co., Ltd. for Lands Su Di No. 2014-G-68 and No. 2014-G-73.

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FINANCIAL INFORMATION OF JINKE PROPERTY

7. Inventories

(1) Details

	**Amount **	**at the end of the **	**at the end of the **	period	**Amount at **	the beginning of the period	the beginning of the period	the beginning of the period
			Provision			Provision
Item	Book balance	**for **	depreciation	Book value	Book balance	for depreciation		Book value
Raw materials	15,429,819.05			15,429,819.05	13,630,452.92		—	13,630,452.92
Low-cost consumables	943,041.52			943,041.52	422,780.12		—	422,780.12
Commodities in stock	145,480,490.16			145,480,490.16	90,840,884.13		—	90,840,884.13
Development cost	50,003,146,889.13	404,426,799.14		49,598,720,089.99	36,898,744,032.94		—	36,898,744,032.94
Products to be
developed	2,550,963,644.71			2,550,963,644.71	1,268,717,524.40		—	1,268,717,524.40
Developed products	9,935,240,517.09	327,446,892.65		9,607,793,624.44	7,443,623,834.40		—	7,443,623,834.40
Leased products
developed	300,439,758.97			300,439,758.97	210,112,828.52		—	210,112,828.52
Project construction	42,789,156.32			42,789,156.32	70,397,916.80		—	70,397,916.80
Total	62,994,433,316.95	731,873,691.79		62,262,559,625.16	45,996,490,254.23		—	45,996,490,254.23

(2) Provision for inventory depreciation

1) Details

	Amount	Increase in the		Decrease in the
	at the	current period		current period		Amount at the
	beginning of			Reversal or		end of the
Item	the period	Withdrawal	Others	charge-off	Others	period
Development cost	—	404,426,799.14	—	—	—	404,426,799.14
Developed products	—	327,446,892.65	—	—	—	327,446,892.65
Subtotal	—	731,873,691.79	—	—	—	731,873,691.79

[Note] As at 31 December 2014, based on current market prices and actual sales performance of the project and after conducting an impairment test on cashable net value of the project, subsidiaries Wuxi Jinke Kerun Real Estate Development Co., Ltd., Wuxi Jinke Jiarun Real Estate Development Co., Ltd. and Hunan Jinke Real Estate Development Co., Ltd. had withdrawn a provision for inventory depreciation of RMB82,953,378.01, RMB586,990,392.46 and RMB61,929,921.32 respectively for their projects Wuxi • Milan Garden A, Wuxi • Chengnan Aristocratic Family and Changsha • Flourishing Oriental Courtyard.

— 78 —

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FINANCIAL INFORMATION OF JINKE PROPERTY

• 2) Specific basis for determining cashable net value. As for remaining developed products of real estate projects completed by the end of period, their cashable net value is estimated selling price minus estimated sales expenses and relevant taxes; for development cost and products to be developed of real estate projects not completed by the end of period, their cashable net value is estimated selling price minus the cost after completion, estimated sales expenses and relevant taxes. Estimated selling prices include those for pre-sold products and those for unsold products; estimated selling prices of pre-sold products are determined based on the actual contract price while estimated selling prices of unsold products are determined based on recent average selling prices or market prices of similar property products and their positioning, quality and sales plan.

• (3) Capitalization of borrowing costs

In the current period, capitalization of borrowing costs of the Company amounted to RMB2,689,628,800 in total.

• (4) Other descriptions

• 1) Inventories — development cost

			Estimated
		Estimated time	total	Amount at	Amount at the
	Commencement	of completion	investment	the end of the	beginning of the
Project name	time	[Note 1]	(RMB’0,000)	period	period
Chongqing • Jinke World City	November 2011	May 2014	213,108.00	—	693,980,676.16
Chongqing Hechuan • Jinke World City	March 2012	February 2015	112,358.00	426,651,314.11	718,689,737.61
Chongqing Hechuan • Nature City Project	May 2014	June 2016	80,000.00	336,486,208.92	—
Chongqing • Jinke Jiangjin World City	April 2013	May 2015	133,672.00	900,389,854.66	535,106,321.62
Chongqing Jiangjin • Jinke Central Park	August 2013	September 2015	210,840.80	960,095,973.30	84,031,429.77
Chongqing • Jinke Oriental Palace	July 2010	June 2015	174,999.00	11,753,779.05	1,073,747,355.77
Chongqing • Jinke Bridge Village	July 2010	February 2015	720,000.00	2,022,784,003.04	2,043,660,366.28
Chongqing • Jinke Sun Coast	November 2009	September 2015	200,000.00	9,683,033.13	286,497,950.47
Chongqing • Jinke Leijiaqiao	July 2011	January 2015	359,831.00	2,095,272,962.89	1,890,365,214.68
Chongqing Bishan • Jinke Central Park	January 2012	June 2015	306,011.00	1,135,459,315.13	1,402,159,385.26
Chongqing Beibei • Jinke City	July 2013	December 2015	358,772.00	1,812,720,965.28	1,258,246,097.74
Chongqing • Wansheng Jinke China
Health City	June 2013	January 2015	104,600.00	660,625,696.56	280,856,046.07
Chongqing • Jinke Times Center	April 2013	November 2015	387,420.00	1,687,052,315.43	1,276,346,586.47
Chongqing • Xiyong Tianchen	April 2014	August 2016	465,800.00	1,788,403,203.92	—
Chongqing • Jinke Konggang City	June 2014	July 2017	190,000.00	230,171,631.43	—
Chongqing • Jinke Central Washington	October 2014	July 2016	128,000.00	396,024,942.54	—
Chongqing Nanchuan • Jinke World City	August 2014	July 2016	290,000.00	412,447,852.38	—
Chongqing Kaixian • Jinke Kaizhou City	July 2011	May 2016	287,247.52	901,291,456.39	782,492,898.07
Chongqing • Kaixian Jinke Grand Hotel	September 2012	December 2014	38,000.00	—	82,324,636.70
Chongqing Kaixian • Jinke Wealth Center	October 2012	August 2015	187,599.38	855,248,063.92	479,919,513.60
Chongqing Yunyang • Jinke World City	February 2014	September 2016	304,850.00	1,000,477,160.54	—
Chongqing • Jinke Lake Town	September 2009	April 2015	91,000.00	25,595,836.11	28,335,093.28

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FINANCIAL INFORMATION OF JINKE PROPERTY

			Estimated
		Estimated time	total	Amount at	Amount at the
	Commencement	of completion	investment	the end of the	beginning of the
Project name	time	[Note 1]	(RMB’0,000)	period	period
Chongqing Fuling • Jinke Central Park	August 2011	September 2015	246,593.00	586,063,438.45	148,149,749.11
Chongqing Changshou • Jinke Sunshine
Town	July 2012	March 2015	160,539.00	659,807,195.52	945,525,192.61
Chongqing Fuling • Jinke Nature City	April 2013	May 2015	165,000.00	934,355,506.60	535,039,595.72
Chongqing Changshou • Jinke World City	June 2013	April 2016	494,499.00	1,335,247,102.80	832,558,766.27
Chongqing Fengdou • Jinke Golden Coast	July 2014	October 2016	250,000.00	399,010,336.02	—
Chongqing Yongchuan • Jinke Central Park	August 2010	December 2016	154,244.00	14,757,296.00	13,918,068.14
Chongqing Yongchuan • Jinke Sunshine
Town	December 2010	July 2015	148,650.00	407,345,102.10	367,416,134.99
Chongqing Yongchuan • Jinke Park Palace	June 2014	September 2016	150,000.00	488,557,079.82	—
Chongqing Rongchang • Jinke World City	October 2011	July 2015	429,228.00	652,482,051.70	941,898,509.33
Chongqing Dazu • Jinke Central Park	December 2012	May 2015	240,392.00	1,093,224,144.28	677,932,724.92
Chengdu • Jinke Center	December 2012	July 2015	125,000.00	908,928,187.59	626,452,521.32
Chengdu • Jinke Bridge Village	April 2010	May 2016	198,982.00	309,240,864.22	934,402,864.45
Chengdu • Jinke Nature City	July 2011	October 2014	127,700.00	—	647,405,151.33
Chengdu • Jinke Oriental Elegance County	December 2014	November 2016	150,000.00	402,207,357.67	—
Neijiang • Jinke Central Park	July 2012	October 2015	170,000.00	337,942,743.65	654,910,151.82
Neijiang • New City Center	October 2013	September 2016	350,000.00	1,296,988,655.99	606,679,195.21
Neijiang • Times Center	April 2014	August 2016	127,400.00	403,689,135.60	—
Beijing • Jinke Napa House	October 2010	August 2015	486,191.00	1,368,593,378.36	2,754,053,001.22
Beijing • Jinke Bridge Garden	October 2011	March 2015	258,077.00	870,060,619.03	741,160,308.61
Beijing • Jinke Center	December 2014	February 2017	325,126.00	2,680,890,589.62	—
Jinan • Jinke World City	April 2013	January 2016	956,673.00	2,677,753,334.77	2,171,345,491.72
Qingdao • Jinke Sunshine Town	April 2014	April 2016	175,000.00	443,768,564.79	—
Changsha • Flourishing Oriental Courtyard	April 2009	June 2015	209,369.40	149,757,890.63	165,915,329.08
Liuyang • Tianhu New City	October 2011	April 2015	175,338.00	1,004,342,104.94	774,070,309.19
Changsha • Jinke World City	January 2009	January 2016	161,197.34	624,349,838.06	488,195,091.93
Changsha • Jinke Center	April 2013	January 2016	229,411.00	1,040,895,435.65	563,673,327.39
Chenzhou • Central Park	February 2014	October 2016	100,000.00	384,731,278.17	—
Chenzhou • Nanling Eco-city “By the
Water Side”	November 2012	January 2015	80,000.00	304,910,899.03	292,260,428.14
Wuxi • Milan Garden B	August 2010	July 2016	77,166.00	38,666,426.47	30,639,260.58
Wuxi • Milan Garden A	August 2010	January 2015	157,849.33	364,821,744.70	328,903,330.27
Wuxi • Chengnan Aristocratic Family	June 2010	November 2015	515,579.11	1,183,389,913.92	1,821,776,825.51
Wuxi • Wealth Commercial Plaza	January 2013	December 2015	144,310.39	1,031,003,814.79	697,853,272.54
Jiangyin • Oriental Mansion	May 2010	June 2015	187,048.01	363,550,307.15	439,476,199.17
Zhangjiagang • Bridge Court	July 2012	December 2015	187,276.00	707,244,541.16	755,525,179.51
Zhangjiagang • Bridge Mansion	August 2013	January 2016	112,552.00	449,149,142.53	315,364,753.42
Jiangsu Rugao • Jinke World City	July 2013	December 2015	114,192.00	809,737,923.46	417,984,371.14
Suzhou • Scene Mansion	September 2010	June 2015	370,598.00	1,038,617,247.93	803,777,816.40
Suzhou • Nature Garden	April 2013	October 2015	158,618.00	1,115,429,219.48	737,648,204.98
Suzhou • World View	October 2014	January 2017	150,000.00	516,378,519.08	—
Nantong • Bridge Waterfront	April 2012	June 2015	139,452.00	457,378,000.90	649,566,032.96
Xi’an • Jinke Nature City	November 2013	August 2016	226,414.56	983,762,166.34	732,642,846.92

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FINANCIAL INFORMATION OF JINKE PROPERTY

Project name Commencement time Estimated time of completion [Note 1] Xianyang • Jinke World City November 2014 November 2018 Zunyi • Jinke Central Park November 2013 October 2016 Xinjiang • Jinke Household Appliances Expo June 2013 May 2016 Xinjiang • Jinke Bridge Village June 2013 September 2015 Xinjiang • Jinke Central Asia Household Appliances Expo Park June 2013 August 2016 Subtotal	Estimated total investment (RMB’0,000) 337,391.33 255,744.00 126,168.00 219,615.00 197,737.00 15,855,314.16	Amount at the end of the period 457,316,719.57 364,258,956.35 112,916,777.42 431,124,214.07 129,865,554.02 50,003,146,889.13	Amount at the beginning of the period — 164,562,482.27 33,167,125.08 88,483,088.66 81,652,021.48
			36,898,744,032.94

• [Note 1] If the project is developed and delivered by phases, estimated time of completion shall be based on the building which is completed most recently from the balance sheet date.

2) Inventories — products to be developed

			Estimated
	Estimated	Estimated time of	total	Amount at the	Amount at the
	commencement	completion	investment	end of the	beginning of the
Project name	time	[Note 1]	(RMB’0,000)	period	period
Chongqing Fuling • Jinke Nanhu Project	Agust 2015	July 2017	240,000.00	385,454,976.00	—
Chengdu • Jinke Star City	May 2015	January 2017	100,000.00	218,046,839.63	—
Chenzhou • Central Park	February 2014	April 2016	164,113.80	—	121,693,170.54
Qingdao • Jinke Sunshine Town	April 2014	September 2016	175,000.00	—	293,725,570.61
Chongqing • Xiyong Tianchen	April 2014	March 2016	505,149.00	—	706,640,151.00
Chongqing Yunyang • Jinke World City	February 2014	October 2016	524,310.78	—	146,658,632.25
Yunnan • Jinke Times Center	April 2015	February 2017	220,000.00	639,855,393.83	—
Chongqing • Jinke Star	July 2015	February 2017	90,943.00	152,110,294.17	—
Xiyong Tianchen (Phase II)	October 2015	September 2017	380,000.00	1,155,496,141.08	—
Subtotal			2,399,516.58	2,550,963,644.71	1,268,717,524.40

• [Note 1] If the project is developed and delivered by phases, estimated time of completion shall be based on the building which is completed most recently from the balance sheet date.

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3) Inventories — developed products

	Time of	Amount at the	Increase	Decrease	Amount at
	completion	beginning of the	in the current	in the current	the end of the
Project name	[Note 1]	period	period	period	period
Chongqing • Jinke Garden	December 2003	120,652.58	—	120,652.58	—
Chongqing • Jinke VISAR
International	November 2012	45,857,424.80	—	5,928,842.89	39,928,581.91
Chongqing • Ants SOHO	April 2008	28,773,816.23	—	3,884,690.46	24,889,125.77
Chongqing • Eastern Palace	November 2008	28,718,710.30	—	2,225,367.76	26,493,342.54
Chongqing • Jinke Oriental
Elegance County	June 2010	7,382,812.35	—	4,191,235.78	3,191,576.57
Chongqing • Jinke Sunshine Town	December 2013	289,690,403.62	72,449,140.08	119,104,552.35	243,034,991.35
Chongqing • Tianhu Town	November 2009	41,445,998.24	—	—	41,445,998.24
Chongqing • Jinke World City	July 2014	251,248,915.94	889,529,334.43	818,792,260.43	321,985,989.94
Chongqing Hechuan • Jinke World
City	October 2014	—	481,734,710.21	403,671,244.20	78,063,466.01
Chongqing • Xiangjiang Garden	September 2002	2,728,703.35	—	—	2,728,703.35
Chongqing • Jinke Oriental Palace	September 2014	43,709,434.18	1,295,900,913.15	1,143,921,003.93	195,689,343.40
Chongqing • Jinke Bridge Village	October 2014	355,148,241.59	1,150,463,424.45	1,015,851,974.41	489,759,691.63
Chongqing • Jinke Small Town
Story	January 2010	8,357,318.31	—	1,238,865.63	7,118,452.68
Chongqing • Jinke Sun Coast	November 2014	171,343,782.15	384,170,207.09	312,376,247.44	243,137,741.80
Chongqing • Jinke Xicheng
Courtyard	March 2012	127,148,157.68	23,484,120.00	3,344,023.89	147,288,253.79
Chongqing • Jinke Leijiaqiao	July 2014	—	527,649,140.18	316,612,980.57	211,036,159.61
Chongqing Bishan • Jinke Central
Park	August 2014	—	842,422,473.76	712,127,100.66	130,295,373.10
Chongqing • Jinsha Waterfront	August 2006	15,545,015.76	—	89,019.53	15,455,996.23
Chongqing • Yunhu City	January 2010	53,896,148.80	—	4,148,776.75	49,747,372.05
Chongqing • Bridge Waterfront	June 2009	3,706,644.80	—	1,834,537.45	1,872,107.35
Chongqing • Green Park	December 2009	36,067,464.70	—	—	36,067,464.70
Chongqing • Jinke Ten Years City	November 2013	136,926,231.13	—	23,772,580.55	113,153,650.58
Chongqing • China Town	October 2005	43,795,063.38	—	51,975.60	43,743,087.78
Chongqing Kaixian • Jinke
Kaizhou City	February 2014	44,949,389.10	569,591,258.81	489,535,904.38	125,004,743.53
Chongqing Kaixian • Jinke Grand
Hotel	December 2014	—	249,268,500.00	249,268,500.00	—
Chongqing • Jinke Lake Town	June 2011	1,661,399.31	—	-1,131,217.50	2,792,616.81
Chongqing Fuling • Jinke World
Corridor B	September 2012	79,033,735.46	—	32,917,418.15	46,116,317.31
Chongqing Fuling • Jinke Central
Park	December 2013	54,369,372.00	—	23,078,696.65	31,290,675.35
Chongqing Fuling • Jinke World
Corridor A	October 2013	273,932,146.73	—	67,211,531.80	206,720,614.93
Chongqing Changshou • Jinke
Sunshine Town	October 2014	—	620,488,793.14	379,596,067.55	240,892,725.59
Chongqing Yongchuan • Jinke
Central Park	February 2014	418,431,720.81	49,041,911.52	327,845,593.86	139,628,038.47

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FINANCIAL INFORMATION OF JINKE PROPERTY

	Time of	Amount at the	Increase	Decrease	Amount at
	completion	beginning of the	in the current	in the current	the end of the
Project name	[Note 1]	period	period	period	period
Chongqing Yongchuan • Jinke
Sunshine Town	October 2014	333,086,817.17	177,025,334.74	376,464,747.21	133,647,404.70
Chongqing Rongchang • Jinke
World City	July 2011	217,415,164.10	627,507,767.26	543,916,936.57	301,005,994.79
Chengdu • Jinke Yicheng	December 2012	71,616,943.75	—	58,293,232.02	13,323,711.73
Chengdu • Jinke Bridge Village	January 2014	319,940,649.77	967,622,749.01	482,906,307.17	804,657,091.61
Chengdu • Jinke Nature City	November 2014	109,833,712.68	859,858,661.42	763,306,320.14	206,386,053.96
Neijiang • Jinke Central Park	November 2013	—	744,782,383.68	515,681,221.89	229,101,161.79
Beijing • Patio Palace	January 2011	31,920,107.53	—	20,840,283.60	11,079,823.93
Beijing • Jinke Napa House	May 2014	642,684,380.27	1,682,650,633.49	1,159,614,078.47	1,165,720,935.29
Beijing • Jinke Bridge Garden	October 2011	18,282,949.82	96,612,302.12	70,277,239.30	44,618,012.64
Changsha • Flourishing Oriental
Courtyard	June 2014	191,700,456.83	148,394,972.19	59,933,983.39	280,161,445.63
Liuyang • Tianhu New City	July 2014	—	20,669,203.57	20,669,203.57	—
Chenzhou • Nanling Eco-city “By
the Water Side”	October 2014	—	123,685,903.50	26,505,659.83	97,180,243.67
Wuxi • Jinke Eastern Palace	January 2013	71,616,584.33	—	17,055,018.17	54,561,566.16
Wuxi • Jinke Dream House	January 2013	65,054,323.50	—	31,308,817.17	33,745,506.33
Wuxi • Jinke Wanbo Plaza	January 2013	201,430,236.62	—	11,406,473.60	190,023,763.02
Wuxi • Milan Garden B	August 2012	108,343,417.20	—	17,837,158.66	90,506,258.54
Wuxi • Milan Garden A	August 2014	174,645,430.32	133,305,862.12	210,252,664.35	97,698,628.09
Wuxi • Chengnan Aristocratic
Family	August 2014	1,115,884,948.63	970,824,402.03	691,610,450.40	1,395,098,900.26
Jiangyin • Fairview Garden	June 2012	9,333,758.79	—	-2,114.07	9,335,872.86
Jiangyin • Oriental Courtyard	October 2012	21,470,176.07	—	538,760.27	20,931,415.80
Jiangyin • Oriental Mansion	December 2014	333,901,838.45	249,757,236.59	347,821,968.81	235,837,106.23
Zhangjiagang • Bridge Court	December 2014	—	521,394,703.62	350,037,752.67	171,356,950.95
Suzhou • Scene Mansion	August 2014	834,754,242.15	184,554,654.70	155,565,527.08	863,743,369.77
Nantong • Bridge Waterfront	December 2014	—	415,680,169.88	195,452,066.03	220,228,103.85
Chongqing • Meishe Project	October 2005	6,718,993.12	—	—	6,718,993.12
Subtotal		7,443,623,834.40	15,080,520,866.74	12,588,904,184.05	9,935,240,517.09

[Note 1] If the project is developed and delivered by phases, time of completion shall be based on the building which is completed most recently from the balance sheet date.

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FINANCIAL INFORMATION OF JINKE PROPERTY

• 4) Inventories — leased products developed

Project name Chongqing • Jinsha Waterfront Chongqing • Yunhu City Chongqing • Bridge Waterfront Chongqing • Jinke Ten Years City Chongqing • Jinke Xicheng Courtyard Chongqing • Jinke VISAR International Chongqing • Jinke Sunshine Town Chongqing • Meishe Project Chongqing • Jinke Bridge Village Chongqing Fuling • Jinke Golden Coast Chongqing • Jinke Lake Town Chongqing Fuling • Jinke World Corridor A Liuyang • Tianhu New City Chongqing Yongchuan • Jinke Central Park Chongqing Yongchuan • Jinke Sunshine Town Subtotal	Amount at the beginning of the period Increase in the current period Decrease in the current period 9,338,992.63 — 323,797.20 33,253,542.76 — 1,105,058.76 4,506,204.65 — 149,333.52 22,704,400.82 — 687,094.08 29,760,746.96 — 850,544.04 20,790,495.28 — 564,313.44 12,176,009.46 — 490,784.32 2,751,708.82 — 27,441.24 24,914,817.47 17,596,290.40 980,782.09 3,668,008.37 — 102,337.92 6,520,551.93 — 409,858.00 — 45,698,685.03 1,240,392.8 — 20,669,203.57 380,949.01 39,727,349.37 13,200,194.26 1,409,991.83 — 1,944,010.95 58,775.47 210,112,828.52 99,108,384.21 8,781,453.76	Amount at the beginning of the period Increase in the current period Decrease in the current period 9,338,992.63 — 323,797.20 33,253,542.76 — 1,105,058.76 4,506,204.65 — 149,333.52 22,704,400.82 — 687,094.08 29,760,746.96 — 850,544.04 20,790,495.28 — 564,313.44 12,176,009.46 — 490,784.32 2,751,708.82 — 27,441.24 24,914,817.47 17,596,290.40 980,782.09 3,668,008.37 — 102,337.92 6,520,551.93 — 409,858.00 — 45,698,685.03 1,240,392.8 — 20,669,203.57 380,949.01 39,727,349.37 13,200,194.26 1,409,991.83 — 1,944,010.95 58,775.47 210,112,828.52 99,108,384.21 8,781,453.76	Amount at the end of the period 9,015,195.43 32,148,484.00 4,356,871.13 22,017,306.74 28,910,202.92 20,226,181.84 11,685,225.14 2,724,267.58 41,530,325.78 3,565,670.45 6,110,693.93 44,458,292.19 20,288,254.56 51,517,551.80 1,885,235.48
		8,781,453.76	300,439,758.97

8. Other current assets

Item Pending turnover taxes [note] Land quota Total	Amount at the end of the period 2,136,948,630.59 — 2,136,948,630.59	Amount at the beginning of the period 1,527,760,421.08 52,035,200.00
		1,579,795,621.08

[Note] The business tax, city maintenance and construction tax, education surcharge, local education surcharge and land value added tax paid as per the statutory tax rate for the not-carried-over income from advance payments for commodity houses as well as deductible VAT input tax were stated as other current assets.

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APPENDIX II

FINANCIAL INFORMATION OF JINKE PROPERTY

9. Available-for-sale financial assets

Amount at the end of the period Amount at the beginning of the period Provision for Provision for Item Book balance impairment Book value Book balance impairment Book value Others — — — 22,705,783.60 — 22,705,783.60 Total — — — 22,705,783.60 — 22,705,783.60

1. Long-term equity investment

2. (1) Classified details

Amount at the end of the period Amount at the beginning of the period Provision for Provision for Item Book balance impairment Book value Book balance impairment Book value Investment in associated enterprises 326,780,241.00 326,780,241.00 796,011,805.82 796,011,805.82 Investment in joint ventures 9,994,505.08 9,994,505.08 8,987,076.59 8,987,076.59 Total 336,774,746.08 336,774,746.08 804,998,882.41 804,998,882.41

— 85 —

APPENDIX II

FINANCIAL INFORMATION OF JINKE PROPERTY

(2) Details

Invested entity Joint ventures Yunnan Jinke Xinhaihui Real Estate Co., Ltd. Yunnan Jinwanzhong Real Estate Development Co., Ltd. Subtotal Associated enterprises USUM Investment Group Co., Ltd. Chongqing Zhanhe Agriculture Development Co., Ltd. Chongqing Yinhai Finance Leasing Co., Ltd. Wujiang Jinke Yangzi Real Estate Development Co., Ltd. Subtotal Total	Amount at the beginning of the period 8,987,076.59 — 8,987,076.59 579,260,089.65 13,955,684.33 73,931,962.89 128,864,068.95 796,011,805.82 804,998,882.41	Increase/decrease in the current period Investment Added Investment reduced Investment gains/losses recognized based on equity method Adjustments to other comprehensive income — — -752,584.25 — 10,000,000.00 — -5,494.92 — 10,000,000.00 — -758,079.17 — — -489,137,062.87 23,491,091.84 — — — 1,955,576.07 — — — 10,113,456.59 — — — -11,193,479.23 — — -489,137,062.87 24,366,645.27 — 10,000,000.00 -489,137,062.87 23,608,566.10 —	Increase/decrease in the current period Investment Added Investment reduced Investment gains/losses recognized based on equity method Adjustments to other comprehensive income — — -752,584.25 — 10,000,000.00 — -5,494.92 — 10,000,000.00 — -758,079.17 — — -489,137,062.87 23,491,091.84 — — — 1,955,576.07 — — — 10,113,456.59 — — — -11,193,479.23 — — -489,137,062.87 24,366,645.27 — 10,000,000.00 -489,137,062.87 23,608,566.10 —
			—

— 86 —

APPENDIX II

FINANCIAL INFORMATION OF JINKE PROPERTY

Invested entity Increase/decrease in the current period Other equity changes Cash dividends or profits announced to be distributed Provision withdrawn for impairment Others Joint ventures Yunnan Jinke Xinhaihui Real Estate Co., Ltd. — — — -8,234,492.34 Yunnan Jinwanzhong Real Estate Development Co., Ltd. — — — — Subtotal — — — -8,234,492.34 Associated enterprises USUM Investment Group Co., Ltd. — — — — Chongqing Zhanhe Agriculture Development Co., Ltd. — — — — Chongqing Yinhai Finance Leasing Co., Ltd. — -4,461,147.22 — — Wujiang Jinke Yangzi Real Estate Development Co., Ltd. — — — — Subtotal — -4,461,147.22 — — Total — -4,461,147.22 — -8,234,492.34	Invested entity Increase/decrease in the current period Other equity changes Cash dividends or profits announced to be distributed Provision withdrawn for impairment Others Joint ventures Yunnan Jinke Xinhaihui Real Estate Co., Ltd. — — — -8,234,492.34 Yunnan Jinwanzhong Real Estate Development Co., Ltd. — — — — Subtotal — — — -8,234,492.34 Associated enterprises USUM Investment Group Co., Ltd. — — — — Chongqing Zhanhe Agriculture Development Co., Ltd. — — — — Chongqing Yinhai Finance Leasing Co., Ltd. — -4,461,147.22 — — Wujiang Jinke Yangzi Real Estate Development Co., Ltd. — — — — Subtotal — -4,461,147.22 — — Total — -4,461,147.22 — -8,234,492.34	Amount at the end of the period Balance of provision for impairment at the end of the period — — 9,994,505.08 — 9,994,505.08 — 113,614,118.62 — 15,911,260.40 — 79,584,272.26 — 117,670,589.72 — 326,780,241.00 — 336,774,746.08 —
	-8,234,492.34

(3) Other descriptions

According to the Supplementary Agreement to the Cooperation Development Agreement on the Project in Liujia Street, Guandu District, Kunming City signed among the Company, Xiamen Xinhaihui Investment Management Co., Ltd., Yunnan Wannian Investment Co., Ltd., Kunming Yisenying Trade Co., Ltd. (hereinafter referred to as “Yisen Trade”), Xinghe (Shenzhen) Enterprise Management Consulting Co., Ltd. and subsidiary Chongqing Jinke as well as the Equity Transfer Agreement signed between subsidiary Chongqing Jinke and Yisen Trade, in the current period subsidiary Chongqing Jinke was assigned 1% equity held by Yisen Trade in Yunnan Jinke Xinhaihui Real Estate Co., Ltd. (hereinafter referred to as “Jinke Xinhaihui”) at a price of RMB200,000. After the equity transfer, Chongqing Jinke held 51% equity of Jinke Xinhaihui and most board members of Jinke Xinhaihui were appointed by Chongqing Jinke. Chongqing Jinke completed relevant ownership transfer formalities by the end of May 2014, so Jinke Xinhaihui had changed from an associated enterprise into a subsidiary under the consolidated financial statements as from May 2015.

— 87 —

FINANCIAL INFORMATION OF JINKE PROPERTY

APPENDIX II

1. Investment property

2. (1) Details

	Houses and
Item	buildings	Total
Amount at the beginning of the period	2,778,096,875.94	2,778,096,875.94
Changes in the current period
Add: Inventory transfer	96,670,751.01	96,670,751.01
Less: Other transfers (out)	23,484,120.00	23,484,120.00
Change in fair value	54,152,554.05	54,152,554.05
Amount at the end of the period	2,905,436,061.00	2,905,436,061.00

• (2) Information on investment properties to which a certificate of title has not been obtained

		Reasons why the
		certificate of title
		has not been
Item	Book value	obtained
Houses and buildings	26,151,398.24	In process
Subtotal	26,151,398.24

(3) Other descriptions

To meet operation needs, the Company’s President’s Office Association decided to hold 5,708.46 m[2] of commercial houses on floor B1 of Chongqing Jinke Sunshine Town, 4,700.93 m[2] of shopping mall and warehouse on floor B1 of Congqing Hechuan Jinke World City and 4,481.24 m[2] of shopping mall and warehouse on floor B1 of Chongqing Kaixian Jinke Kaizhou City for long term for lease in the current period and state them under investment property, and decided to sell 2,415.88 m[2] of commercial houses of Chongqing Jinke Xicheng Courtyard in the current period which were supposed to be held for long term and state them under inventories — developed products. At the end of the period the Company entrusted Chongqing Huakang Asset & Land & Real Estate Valuation Co., Ltd. to evaluate its self-held investment property to determine the fair value of the investment property and issued Asset Evaluation Report on the Fair Value of Investment Property of Jinke Property Group Co., Ltd. (Chong Kang Ping Bao Zi No. 2 [2015]).

— 88 —

APPENDIX II

FINANCIAL INFORMATION OF JINKE PROPERTY

		Power	generation	Household related	appliances equipment Total		17,049,483.11 — 720,311,573.59	2,400,721.34 333,991,377.10 659,500,275.85	2,387,121.34 — 26,518,472.90		13,600.00 — 53,818,268.25	— 333,991,377.10 341,825,585.41	237,337,949.29	189,838.00 — 5,373,429.88	189,838.00 — 5,373,429.88	19,260,366.45 333,991,377.10 1,374,438,419.56		6,859,796.31 — 177,373,428.73	2,535,816.70 11,897,719.55 68,749,087.77	2,535,816.70 — 56,393,885.04	— 11,897,719.55 12,355,202.73	146,352.04 — 4,615,568.55	146,352.04 — 4,615,568.55	9,249,260.97 11,897,719.55 241,506,947.95		— — —	— — —	— — —	— — —	— — —	— — —	— — —	10,011,105.48 322,093,657.55 1,132,931,471.61	10,189,686.80 — 542,938,144.86
			Decoration of	Other houses and	equipment buildings		24,538,448.08 200,871,065.30	3,346,572.02 54,173,841.03	2,817,387.13 1,400,522.76		19,480.78 52,773,318.27	509,704.11 —		754,877.63 2,700.00	754,877.63 2,700.00	27,130,142.47 255,042,206.33		14,790,215.09 64,567,070.12	3,134,100.11 21,417,567.56	3,050,993.57 21,417,567.56	83,106.54 —	723,702.17 1,537.50	723,702.17 1,537.50	17,200,613.03 85,983,100.18		— —	— —	— —	— —	— —	— —	— —	9,929,529.44 169,059,106.15	9,748,232.99 136,303,995.18
				Means of	transport		45,656,865.37	9,791,289.72	8,079,632.13		—	1,711,657.59		2,712,251.75	2,712,251.75	52,735,903.34		20,196,260.42	7,672,487.55	7,433,243.04	239,244.51	2,133,255.08	2,133,255.08	25,735,492.89		—	—	—	—	—	—	—	27,000,410.45	25,460,604.95
				Electronic	equipment		76,371,085.95	10,604,577.89	10,242,191.28		151,740.00	210,646.61		1,546,541.22	1,546,541.22	85,429,122.62		39,684,356.13	10,269,567.41	10,230,661.97	38,905.44	1,474,686.56	1,474,686.56	48,479,236.98		—	—	—	—	—	—	—	36,949,885.64	36,686,729.82
				Machinery &	equipment		27,958,355.77	2,050,366.01	1,190,236.81		860,129.20	—		167,221.28	167,221.28	29,841,500.50		8,589,308.05	2,791,031.64	2,791,031.64	—	136,035.20	136,035.20	11,244,304.49		—	—	—	—	—	—	—	18,597,196.01	19,369,047.72
				Houses and	buildings		327,866,270.01	243,141,530.74	401,381.45		—	5,402,200.00	237,337,949.29	—	—	571,007,800.75		22,686,422.61	9,030,797.25	8,934,570.56	96,226.69	—	—	31,717,219.86		—	—	—	—	—	—	—	539,290,580.89	305,179,847.40
12. Fixed assets	(1) Details				Item	Original book value	Amount at the beginning of the period	Increase in the current period	1) Purchase	2) Carried over from construction in	progress	3) Increase from merger of enterprises	4) Inventory transfer	Decrease in the current period	1) Disposal or scrapping	Amount at the end of the period	Cumulative depreciation	Amount at the beginning of the period	Increase in the current period	1) Withdrawal	2) Increase from merger of enterprises	Decrease in the current period	1) Disposal or scrapping	Amount at the end of the period	Provision for impairment	Amount at the beginning of the period	Increase in the current period	1) Withdrawal	Decrease in the current period	1) Disposal or scrapping	Amount at the end of the period	Book value	Book value at the end of the period	Book value at the beginning of the period

— 89 —

APPENDIX II

FINANCIAL INFORMATION OF JINKE PROPERTY

• (2) Information on fixed assets to which a certificate of title has not been obtained

		Reasons why the
		certificate of title has
Item	Book value	not been obtained
Houses and buildings	242,643,922.60	In process
Subtotal	242,643,922.60

13. Construction in progress

(1) Details

Item Amount at the end of the period Amount at the beginning of the period Book balance Provision for impairment Book value Book balance Provision for impairment Book value Hotel renovations 37,469,156.39 37,469,156.39 3,376,382.50 3,376,382.50 The sixth Wind Farm (200 MW) project in Yandun, Hami 612,835,176.98 612,835,176.98 — — Fragmentary projects 2,978,959.59 2,978,959.59 485,509.75 485,509.75 Total 653,283,292.96 653,283,292.96 3,861,892.25 3,861,892.25 (2) Changes of important construction in progress in the current period Project name Budget Amount at the beginning of the period Increase in the current period Transferred to fixed assets Other decreases Amount at the end of the period Hotel renovations 3,376,382.50 87,578,427.44 53,485,653.55 — 37,469,156.39 The sixth Wind Farm (200 MW) project in Yandun, Hami — 612,835,176.98 — — 612,835,176.98 Fragmentary projects 485,509.75 4,622,413.79 332,614.70 1,796,349.25 2,978,959.59 Subtotal 3,861,892.25 705,036,018.21 53,818,268.25 1,796,349.25 653,283,292.96 Project name Percentage of total project investment to budget (%) Construction progress (%) Accumulated amount of capitalized interest Amount of capitalized interest in the current period Interest capitalization rate in the current period (%) Fund source Hotel renovations — Self-raised The sixth Wind Farm (200 MW) project in Yandun, Hami 11,463,066.67 Self-raised Fragmentary projects — Self-raised Subtotal 11,463,066.67	Item Amount at the end of the period Amount at the beginning of the period Book balance Provision for impairment Book value Book balance Provision for impairment Book value Hotel renovations 37,469,156.39 37,469,156.39 3,376,382.50 3,376,382.50 The sixth Wind Farm (200 MW) project in Yandun, Hami 612,835,176.98 612,835,176.98 — — Fragmentary projects 2,978,959.59 2,978,959.59 485,509.75 485,509.75 Total 653,283,292.96 653,283,292.96 3,861,892.25 3,861,892.25 (2) Changes of important construction in progress in the current period Project name Budget Amount at the beginning of the period Increase in the current period Transferred to fixed assets Other decreases Amount at the end of the period Hotel renovations 3,376,382.50 87,578,427.44 53,485,653.55 — 37,469,156.39 The sixth Wind Farm (200 MW) project in Yandun, Hami — 612,835,176.98 — — 612,835,176.98 Fragmentary projects 485,509.75 4,622,413.79 332,614.70 1,796,349.25 2,978,959.59 Subtotal 3,861,892.25 705,036,018.21 53,818,268.25 1,796,349.25 653,283,292.96 Project name Percentage of total project investment to budget (%) Construction progress (%) Accumulated amount of capitalized interest Amount of capitalized interest in the current period Interest capitalization rate in the current period (%) Fund source Hotel renovations — Self-raised The sixth Wind Farm (200 MW) project in Yandun, Hami 11,463,066.67 Self-raised Fragmentary projects — Self-raised Subtotal 11,463,066.67	Item Amount at the end of the period Amount at the beginning of the period Book balance Provision for impairment Book value Book balance Provision for impairment Book value Hotel renovations 37,469,156.39 37,469,156.39 3,376,382.50 3,376,382.50 The sixth Wind Farm (200 MW) project in Yandun, Hami 612,835,176.98 612,835,176.98 — — Fragmentary projects 2,978,959.59 2,978,959.59 485,509.75 485,509.75 Total 653,283,292.96 653,283,292.96 3,861,892.25 3,861,892.25 (2) Changes of important construction in progress in the current period Project name Budget Amount at the beginning of the period Increase in the current period Transferred to fixed assets Other decreases Amount at the end of the period Hotel renovations 3,376,382.50 87,578,427.44 53,485,653.55 — 37,469,156.39 The sixth Wind Farm (200 MW) project in Yandun, Hami — 612,835,176.98 — — 612,835,176.98 Fragmentary projects 485,509.75 4,622,413.79 332,614.70 1,796,349.25 2,978,959.59 Subtotal 3,861,892.25 705,036,018.21 53,818,268.25 1,796,349.25 653,283,292.96 Project name Percentage of total project investment to budget (%) Construction progress (%) Accumulated amount of capitalized interest Amount of capitalized interest in the current period Interest capitalization rate in the current period (%) Fund source Hotel renovations — Self-raised The sixth Wind Farm (200 MW) project in Yandun, Hami 11,463,066.67 Self-raised Fragmentary projects — Self-raised Subtotal 11,463,066.67
	1,796,349.25	653,283,292.96
		Fund source Self-raised Self-raised Self-raised

— 90 —

FINANCIAL INFORMATION OF JINKE PROPERTY

APPENDIX II

14. Intangible assets

(1) Details

			Trademark
Item	Land use right	Software	right	Total
Original book value
Amount at the beginning of the
period	37,724,469.74	22,447,526.65	69,200.00	60,241,196.39
Increase in the current period	11,930,550.71	5,384,353.72	37,735.85	17,352,640.28
1) Purchase	—	5,384,353.72	37,735.85	5,422,089.57
2) Inventory transfer	11,930,550.71	—	—	11,930,550.71
Decrease in the current period	—	35,002.13	—	35,002.13
1) Disposal	—	35,002.13	—	35,002.13
Amount at the end of the period	49,655,020.45	27,796,878.24	106,935.85	77,558,834.54
Accumulated amortization	—	—	—	—
Amount at the beginning of the
period	2,226,172.69	9,136,513.58	20,413.44	11,383,099.71
Increase in the current period	998,151.72	4,632,902.33	17,613.59	5,648,667.64
1) Withdrawal	998,151.72	4,632,902.33	17,613.59	5,648,667.64
Decrease in the current period	—	7,887.84	—	7,887.84
1) Disposal	—	7,887.84	—	7,887.84
Amount at the end of the period	3,224,324.41	13,761,528.07	38,027.03	17,023,879.51
Provision for impairment	—	—	—	—
Amount at the beginning of the
period	—	—	—	—
Increase in the current period
1) Withdrawal	—	—	—	—
Decrease in the current period
1) Disposal	—	—	—	—
Amount at the end of the period	—	—	—	—
Book value	—	—	—	—
Book value at the end of the
period	46,430,696.04	14,035,350.17	68,908.82	60,534,955.03
Book value at the beginning of
the period	35,498,297.05	13,311,013.07	48,786.56	48,858,096.68

— 91 —

FINANCIAL INFORMATION OF JINKE PROPERTY

APPENDIX II

• (2) Information on land use right to which a certificate of title has not been obtained

Item Land use right Subtotal	Book value Reasons why the certificate of title has not been obtained 11,930,550.71 In process 11,930,550.71

15. Goodwill

• (1) Original book value of goodwill

					Goodwill formed	Goodwill formed
			**Amount **	at	by merger of			Decrease in the			Amount at
Name of invested entity or matters			the beginning		enterprises in the			current period			the end of
forming goodwill			of the period		current period		Disposal			Others	the period
Chongqing Qingheng Trading Co., Ltd.			98,151.81			—		—		—	98,151.81
Chongqing Qingke Trading Co., Ltd.			30,000.00			—		—		—	30,000.00
Chongqing New Start Decorative
Engineering Co., Ltd.			859,680.06			—		—		—	859,680.06
Chongqing Zhanhong Garden Co., Ltd.			2,525,698.65			—		—		—	2,525,698.65
Chongqing Tianhao Menchuang Co.,
Ltd.			3,869,524.97			—		—		—	3,869,524.97
Chongqing Yuanhao Decorative
Engineering Co., Ltd.			113,488.03			—		—		—	113,488.03
Xinjiang Huaran Oriental New Energy
Co., Ltd.				—	583,776,339.06			—		—	583,776,339.06
Total			7,496,543.52		583,776,339.06			—		—	591,272,882.58
(2) _Provision for impairment _		of goodwill
			Amount
			at the
	beginning				Increase in the			Decrease in the			Amount at
Name of invested entity or			of the		current period			current period			the end of
matters forming goodwill			period	Withdrawal		Others		Disposal		Others	the period
Chongqing Qingheng Trading
Co., Ltd.		98,151.81			—		—		—	—	98,151.81
Chongqing Qingke Trading
Co., Ltd.		30,000.00			—		—		—	—	30,000.00
Subtotal	128,151.81				—		—		—	—	128,151.81

— 92 —

FINANCIAL INFORMATION OF JINKE PROPERTY

APPENDIX II

• (3) Goodwill impairment testing process, parameters and methods of recognizing goodwill impairment loss

Treat Xinjiang Huaran Oriental New Energy Co., Ltd. and Chongqing Tianhao Menchuang Co., Ltd. as different asset groups. According to the expected future cash flow generated during the continuous use or final disposal of the asset groups, determine the discounted cash with an appropriate pre-tax discount rate as the asset groups’ recoverable amount, and compare it with their book value. The results show that there is no new impairment loss in the two asset groups.

16. Long-term prepaid expenses

• (1) Details

				Amortization
		Amount at	Increase in	in the		Amount at
		the beginning	the current	current	Other	the end of
Item		of the period	period	period	decreases	the period
Expense	for decoration	19,863,549.65	8,782,301.63	7,987,131.78	—	20,658,719.50
Property	insurance	949,166.49	850,000.20	1,020,000.24	—	779,166.45
Total		20,812,716.14	9,632,301.83	9,007,132.02	—	21,437,885.95

• (2) Other descriptions

The expense for decoration is the amount used by the Company and its subsidiaries for decoration of offices leased.

— 93 —

FINANCIAL INFORMATION OF JINKE PROPERTY

APPENDIX II

1. Deferred tax assets and deferred tax liabilities

2. (1) Deferred tax assets not offset

Item Provision for asset impairment Estimated profit as calculated based on advance sale income of real estate enterprises Deductible loss Unrealized profit of internal transaction Land premium amortization Payroll payable Others Total	Amount at the end of the period Deductable temporary difference Deferred tax assets 459,941,614.07 113,122,753.79 1,854,739,761.17 384,429,396.31 1,003,244,583.16 234,707,433.94 156,967,551.63 39,241,887.91 543,801,481.26 135,950,370.32 114,039,595.98 23,369,038.15 1,285,220,386.69 248,718,360.95 5,417,954,973.96 1,179,539,241.37	Amount at the end of the period Deductable temporary difference Deferred tax assets 459,941,614.07 113,122,753.79 1,854,739,761.17 384,429,396.31 1,003,244,583.16 234,707,433.94 156,967,551.63 39,241,887.91 543,801,481.26 135,950,370.32 114,039,595.98 23,369,038.15 1,285,220,386.69 248,718,360.95 5,417,954,973.96 1,179,539,241.37	Amount at the beginning of the period Deductable temporary difference Deferred tax assets 62,736,960.75 14,959,175.59 1,593,808,200.86 398,452,050.22 511,206,525.76 126,633,033.28 140,915,404.50 35,228,851.13 506,582,358.06 126,645,589.52 106,718,449.98 24,919,845.17 1,076,087,709.59 269,021,927.44 3,998,055,609.50 995,860,472.35	Amount at the beginning of the period Deductable temporary difference Deferred tax assets 62,736,960.75 14,959,175.59 1,593,808,200.86 398,452,050.22 511,206,525.76 126,633,033.28 140,915,404.50 35,228,851.13 506,582,358.06 126,645,589.52 106,718,449.98 24,919,845.17 1,076,087,709.59 269,021,927.44 3,998,055,609.50 995,860,472.35
	5,417,954,973.96	1,179,539,241.37		995,860,472.35

• (2) Deferred tax liabilities not offset

Item Investment property measured through the fair value pattern Others Total	Amount at the end of the period Taxable temporary differences Deferred tax liabilities 2,039,324,006.32 500,591,958.62 61,872,988.90 15,468,247.24 2,101,196,995.22 516,060,205.86	Amount at the end of the period Taxable temporary differences Deferred tax liabilities 2,039,324,006.32 500,591,958.62 61,872,988.90 15,468,247.24 2,101,196,995.22 516,060,205.86	Amount at the beginning of the period Taxable temporary differences Deferred tax liabilities 1,883,648,823.21 470,912,205.81 136,557,892.01 34,139,473.01 2,020,206,715.22 505,051,678.82	Amount at the beginning of the period Taxable temporary differences Deferred tax liabilities 1,883,648,823.21 470,912,205.81 136,557,892.01 34,139,473.01 2,020,206,715.22 505,051,678.82
		516,060,205.86		505,051,678.82

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FINANCIAL INFORMATION OF JINKE PROPERTY

• (3) Details of unrecognized deferred tax assets

		Amount at the
	Amount at the end	beginning of the
Item	of the period	period
Deductable temporary difference
Provision for asset impairment	375,888,654.54	3,150,857.14
Deductible loss	245,224,927.91	16,882,518.29
Provision for impairment of goodwill	128,151.81	128,151.81
Estimated profit as calculated based on advance sale
income of real estate enterprises	46,267,437.40	—
Payroll payable	2,886,697.39	—
Others	7,614,175.07	—
Subtotal	678,010,044.12	20,161,527.24

• (4) Other descriptions

Others include deductible fees, taxes not put into the treasury, deferred income and other temporary differences.

18. Short-term loans

Item Amount at the end of the period Guaranteed loan 1,420,000,000.00 Pledged loan 548,670,000.00 Mortgaged loan 40,000,000.00 Pledged and guaranteed loan Mortgaged and guaranteed loan 198,000,000.00 Total 2,206,670,000.00	Amount at the beginning of the period 1,310,000,000.00 — 190,000,000.00 480,000,000.00 —
	1,980,000,000.00

19. Notes payable

Item Amount at the end of the period Bank acceptance bill 1,361,651,268.76 Total 1,361,651,268.76	Amount at the beginning of the period 1,667,451,647.10
	1,667,451,647.10

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FINANCIAL INFORMATION OF JINKE PROPERTY

20. Accounts payable

Amount at the Amount at the end beginning of the Item of the period period Project accounts payable 6,783,171,536.06 4,295,374,342.20 Payment for materials and equipment payable 391,377,038.56 380,865,040.81 Total 7,174,548,574.62 4,676,239,383.01

Item

21. Advance receipts

• (1) Details

Amount at the Amount at the end beginning of the Item of the period period Advance receipts of commodity housing 22,295,042,146.77 18,568,922,206.70 Others 135,581,324.48 99,409,678.47 Total 22,430,623,471.25 18,668,331,885.17

Item

• (2) Other descriptions

Payment collection of the advance-sale commodity housing

		Amount at the
	Amount at the end	beginning of the
Item name	of the period	period
Chongqing • Jinke Garden	277,962.00	250,000.00
Chongqing • Jinke VISAR International	3,558,611.00	8,608,157.00
Chongqing • Ants SOHO	48,483.56	3,048,483.56
Chongqing • Eastern Palace	30,419.46	487,363.46
Chongqing • Jinke Oriental Elegance County	496,112.80	2,145,783.80
Chongqing • Jinke Sunshine Town	11,637,327.50	82,822,788.20
Chongqing • Tianhu Town	1,535,491.72	1,535,491.72
Chongqing • Jinke World City	31,242,572.00	726,683,767.00
Chongqing Hechuan • Jinke World City	461,633,358.00	705,335,678.20
Chongqing Hechuan • Nature City Project	82,905,655.00	—
Chongqing • Jinke Jiangjin World City	422,455,507.00	189,980,971.00
Chongqing Jiangjin • Jinke Central Park	500,195,502.00	57,074,335.00

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APPENDIX II

FINANCIAL INFORMATION OF JINKE PROPERTY

		Amount at the
	Amount at the end	beginning of the
Item name	of the period	period
Chongqing • Xiangjiang Garden	558,824.00	477,100.00
Chongqing • Jinke Oriental Palace	47,411,464.00	999,795,494.00
Chongqing • Jinke Bridge Village	1,908,076,569.04	2,065,533,395.00
Chongqing • Jinke Small Town Story	91,201.00	217,001.00
Chongqing • Jinke Sun Coast	38,879,451.00	173,101,614.00
Chongqing • Jinke Xicheng Courtyard	31,606,041.50	22,856,238.00
Chongqing • Jinke Leijiaqiao	1,085,282,700.48	643,148,291.56
Chongqing Bishan • Jinke Central Park	389,720,539.79	862,734,933.00
Chongqing Beibei • Jinke City	876,999,753.00	94,229,255.06
Chongqing • Wansheng Jinke China Health City	126,790,090.00	88,401,097.00
Chongqing • Jinke Times Center	1,104,854,985.68	251,220,248.00
Chongqing • Jinsha Waterfront	19,289,108.92	19,290,441.44
Chongqing • Yunhu City	1,079,554.03	3,632,387.83
Chongqing • Bridge Waterfront	1,166,757.58	2,202,074.58
Chongqing • Green Park	2,357,458.69	2,367,458.69
Chongqing • Jinke Ten Years City	264,426.00	8,585,012.00
Chongqing • China Town	1,211,820.52	1,491,360.52
Chongqing • Xiyong Tianchen	168,049,124.00	—
Chongqing • Jinke Central Washington	2,553,679.00	—
Chongqing Nanchuan • Jinke World City	45,209,709.00	—
Chongqing Kaixian • Jinke Kaizhou City	1,261,736,594.30	1,087,287,636.30
Chongqing Kaixian • Jinke Wealth Center	851,578,336.00	178,914,459.00
Chongqing Yunyang • Jinke World City	376,527,758.00	—
Chongqing Fuling • Jinke Golden Coast	30,898.38	31,776.03
Chongqing Fuling • Jinke Bridge Waterfront	—	230,289.60
Chongqing • Jinke Lake Town	28,284,334.28	6,718,201.09
Chongqing Fuling • Jinke World Corridor B	1,979,785.16	102,945.88
Chongqing Fuling • Jinke Central Park	76,413,664.32	6,067,971.09
Chongqing Fuling • Jinke World Corridor A	138,869,661.12	142,043,679.71
Chongqing Changshou • Jinke Sunshine Town	395,437,833.07	664,453,977.20
Chongqing Fuling • Jinke Nature City	779,343,491.80	127,099,700.40
Chongqing Changshou • Jinke World City	339,226,984.21	—
Chongqing Fengdou • Jinke Golden Coast	18,310,053.60	—
Chongqing Yongchuan • Jinke Central Park	15,791,892.15	334,243,304.29
Chongqing Yongchuan • Jinke Sunshine Town	382,768,975.24	295,853,974.30
Chongqing Yongchuan • Jinke Park Palace	16,017,161.50	—
Chongqing Rongchang • Jinke World City	264,142,958.99	449,056,507.51
Chongqing Dazu • Jinke Central Park	680,746,641.06	227,559,710.00
Chengdu • Jinke Yicheng	451,346.60	1,117,084.60

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APPENDIX II

FINANCIAL INFORMATION OF JINKE PROPERTY

Item name Amount at the end of the period Chengdu • Jinke Center 911,740,777.00 Chengdu • Jinke Bridge Village 106,100,933.97 Chengdu • Jinke Nature City 20,861,896.00 Neijiang • Jinke Central Park 207,764,495.16 Neijiang • New City Center 194,269,742.00 Neijiang • Times Center 37,180,951.00 Beijing • Patio Palace 6,196,324.52 Beijing • Jinke Napa House 329,584,048.00 Beijing • Jinke Bridge Garden 1,321,567,302.32 Jinan • Jinke World City 1,211,364,910.00 Changsha • Flourishing Oriental Courtyard 57,495,755.00 Liuyang • Tianhu New City 56,322,598.33 Changsha • Jinke World City 125,299,580.00 Changsha • Jinke Center 254,333,618.83 Chenzhou • Central Park 25,309,724.00 Chenzhou • Nanling Eco-city “By the Water Side” 38,474,433.00 Wuxi • Jinke Eastern Palace 18,257,566.00 Wuxi • Jinke Dream House 1,366,991.01 Wuxi • Jinke Wanbo Plaza 5,352,498.00 Wuxi • Milan Garden B 1,201,295.00 Wuxi • Milan Garden A 64,629,911.99 Wuxi • Chengnan Aristocratic Family 311,177,794.40 Wuxi • Wealth Commercial Plaza 886,276,314.00 Jiangyin • Fairview Garden 2,051,444.00 Jiangyin • Oriental Courtyard 747,512.00 Jiangyin • Oriental Mansion 342,133,403.49 Zhangjiagang • Bridge Court 587,748,840.00 Zhangjiagang • Bridge Mansion 227,043,580.03 Jiangsu Rugao • Jinke World City 182,192,098.00 Suzhou • Scene Mansion 369,145,039.89 Suzhou • Nature Garden 851,980,396.28 Suzhou • World View 3,912,695.00 Nantong • Bridge Waterfront 8,885,236.10 Xi’an • Jinke Nature City 127,363,531.00 Zunyi • Jinke Central Park 146,250,428.00 Xinjiang • Jinke Household Appliances Expo 3,945,000.00 Xinjiang • Jinke Bridge Village 247,287,025.00 Chongqing • Meishe Project 7,097,829.40 Subtotal 22,295,042,146.77

Amount at the beginning of the period 453,760,693.00 511,952,828.54 838,836,339.00 567,553,083.00 — — 2,895,340.52 1,343,564,836.10 835,150,559.00 450,203,802.00 57,547,599.00 38,889,658.00 — — — 46,375,773.00 19,808,646.00 1,486,673.01 9,315,872.00 4,396,530.00 191,389,109.50 489,778,911.64 220,547,080.00 2,085,112.00 1,302,986.00 425,754,215.49 782,404,473.00 47,682,040.00 23,608,282.00 189,202,509.78 180,701,235.00 — 287,392,753.10 — — — — 7,297,829.40

18,568,922,206.70

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FINANCIAL INFORMATION OF JINKE PROPERTY

APPENDIX II

22. Payroll payable

• (1) Details

	Amount at the			Amount at the
	beginning of the	Increase in the	Decrease in the	end of the
Item	period	current period	current period	period
Short-term remuneration	185,830,008.22	1,097,696,376.13	1,061,118,668.66	222,407,715.69
Post-employment benefit - defined
contribution plan	230,608.29	78,998,631.81	78,281,662.06	947,578.04
Total	186,060,616.51	1,176,695,007.94	1,139,400,330.72	223,355,293.73

(2) Details of short-term remuneration

	Amount at the			Amount at the
	beginning of the	Increase in the	Decrease in the	end of the
Item	period	current period	current period	period
Salary, bonus, subsidy and grant	147,324,519.75	964,436,460.13	942,872,766.53	168,888,213.35
Employee welfare	—	23,419,974.62	23,419,974.62	—
Social insurance premium	267,541.54	37,860,307.73	37,860,655.15	267,194.12
Including: medical insurance	250,734.26	32,082,101.76	32,082,113.39	250,722.63
Work-related injury insurance
premium	8,844.46	2,990,568.12	2,990,813.78	8,598.80
Childbearing insurance premium	7,962.82	2,787,637.85	2,787,727.98	7,872.69
Housing provident fund	711,166.17	36,792,259.92	36,599,382.92	904,043.17
Trade union fee and staff
education fee	37,526,780.76	33,703,190.94	18,881,706.65	52,348,265.05
Termination benefit	—	1,484,182.79	1,484,182.79	—
Subtotal	185,830,008.22	1,097,696,376.13	1,061,118,668.66	222,407,715.69

(3) Details of defined contribution plan

	Amount at the			Amount at the
	beginning of the	Increase in the	Decrease in the	end of the
Item	period	current period	current period	period
Basic retirement insurance	193,101.06	73,322,698.47	72,612,610.20	903,189.33
Unemployment insurance premium	37,507.23	5,675,933.34	5,669,051.86	44,388.71
Subtotal	230,608.29	78,998,631.81	78,281,662.06	947,578.04

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FINANCIAL INFORMATION OF JINKE PROPERTY

23. Taxes payable

		Amount at the
	Amount at the end	beginning of the
Item	of the period	period
Business tax	169,465,202.92	126,464,669.04
VAT	11,503,142.10	7,955,085.01
Municipal maintenance and construction tax	12,678,835.82	10,456,411.39
Education surcharge	5,633,139.88	4,131,636.81
Local education surcharge	3,781,578.54	2,198,413.62
Land appreciation tax	104,859,847.48	80,633,541.91
Enterprise income tax	184,623,770.08	632,261,351.67
Withholding and paying personal income tax	7,666,097.47	5,192,941.12
Property tax	1,467,582.09	1,137,929.36
Land use tax	7,285,481.35	1,770,524.65
Others	5,027,005.45	3,878,012.76
Total	513,991,683.18	876,080,517.34

24. Interest payable

		Amount at the
	Amount at the end	beginning of the
Item	of the period	period
Interest of long-term loans with interest paid by
instalments and entire principal paid when due	107,635,618.29	78,869,294.18
Interest payable of short-term loans	5,702,036.23	4,178,129.69
Interest of trust funds	234,337,986.62	31,485,380.00
Total	347,675,641.14	114,532,803.87

25. Dividends payable

(1) Details

					Amount at the
				Amount at the end	beginning of the
Item				of the period	period
Dividends	from	ordinary	shares	23,912,698.46	23,912,698.46
Total				23,912,698.46	23,912,698.46

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FINANCIAL INFORMATION OF JINKE PROPERTY

• (2) Important dividends payable aged 1 year or above

Item	Amount not paid	Relevant reason	Relevant reason
Hong Kong Grandview International Co., Ltd.	23,912,698.46	The	other party did
		not	urge repayment
Subtotal	23,912,698.46
26. Other payables
(1) Details
			Amount at the
	Amount at the end		beginning of the
Item	of the period		period
Cash deposit	349,468,372.97		304,154,748.01
Equity transfer price payable	380,000,000.00		—
Borrowings	242,309,289.39		876,261,147.49
Temporary receipts payable	373,776,947.75		786,736,020.77
Customers’ accounts collected and remitted	525,681,096.14		456,667,541.65
Others	724,413,350.21		953,738,450.23
Total	2,595,649,056.46		3,377,557,908.15

• (2) Nature or content of other significant payables

Amount at the end Entity name of the period Nature or content Xinjiang China Merchants Kunlun Capital 380,000,000.00 [Note] Investment Joint Venture (limited partnership) Chongqing USUM Investment Holdings Group 117,898,000.00 Borrowings of the Co., Ltd. subsidiary’s shareholders Jinan Xicheng Investment Development Group 76,201,527.60 Borrowings of the Co., Ltd. subsidiary’s shareholders Chongqing Kunji Real Estate Development Co., 75,476,350.00 Intercourse funds of the Ltd. subsidiary’s shareholders Chongqing Janxi Investment Development Co., 72,000,000.00 Intercourse funds of the Ltd. subsidiary’s shareholders Subtotal 721,575,877.60

— 101 —

APPENDIX II

FINANCIAL INFORMATION OF JINKE PROPERTY

• [Note] The equity transfer price paid in installments as specified under the Equity Transfer Agreement signed by the subsidiary Jinke New Energy Co., Ltd. and Xinjiang China Merchants Kunlun Capital Investment Joint Venture (limited partnership).

27. Non-current liabilities maturing within one year

(1) Details

Item Amount at the end of the period Long-term loans maturing within one year 7,596,319,600.00 Creditor’s right maturing within one year and trust fund of the right of return on equity 1,050,000,000.00 Other non-current liabilities maturing within one year 185,000,000.00 Total 8,831,319,600.00	Amount at the beginning of the period 5,444,880,000.00 228,980,000.00 —
	5,673,860,000.00

(2) Other descriptions

1) Creditor’s right maturing within one year and trust fund of the right of return on equity

	Start date	Maturity		Amount at the
Loan unit	of loan	date of loan	Currency	end of the period	Notes
Tianjin Trust Co., Ltd.	2013-9-18	2015-9-16	RMB	150,000,000.00	[Note 1]
Chongqing International Trust
Co., Ltd.	2013-3-29	2015-3-29	RMB	300,000,000.00	[Note 2]
China Orient Asset Management
Co., Ltd. Zhengzhou Office	2013-9-26	2015-9-25	RMB	400,000,000.00	[Note 3]
Sichuan Trust Co., Ltd.	2013-12-9	2015-12-9	RMB	200,000,000.00	[Note 4]
Subtotal				1,050,000,000.00

• [Note 1] According to the Contract on Transfer (Repurchase) of the Right of Return on Equity of Tianhao Menchuang signed by the Company, Chongqing Tianhao Menchuang Co., Ltd. (hereinafter referred to as Tianhao Menchuang), Chongqing Jinke Investment Holding (Group) Co., Ltd. (hereinafter referred to as Jinke Investment), Huang Hongyun and Tianjin Trust Co., Ltd. (hereinafter referred to as Tianjin Trust), the Company transferred the right of return on its 100% equity in Tianhao Menchuang to Tianjin Trust at the price of RMB150 million, and the Company should charge capital occupation fees according to the agreed interest rate. The transfer period of the said right of return on equity is 24 months, and after maturity, the Company will receive the said right of return on equity at the agreed price. In respect of the aforesaid repurchase of right of return on equity, the Company’s shareholder Jinke Investment and Huang Hongyun provided joint liability guaranty.

• [Note 2] According to the Agreement on Acquisition of Receivables signed by the Company, Chongqing Qingke Trading Co., Ltd. (hereinafter referred to as Qingke Trading), Chongqing Jinke Xingju Real Estate Co., Ltd. (hereinafter

— 102 —

APPENDIX II

FINANCIAL INFORMATION OF JINKE PROPERTY

referred to as Xingju Real Estate) and Chongqing International Trust Co., Ltd. (Chongqing Trust), Qingke Trading transferred the creditor’s rights of RMB500 million receivable by it from Xingju Real Estate to Chong Trust, and Xingju Real Estate should pay capital occupation fees according to the agreed interest rate. The transfer period of the said receivables is 24 months, and after maturity, the Company will receive the creditor’s right of Xingju Real Estate at the price agreed under the contract. As of 31 December 2014, Qingke Trading has received the first payment of RMB300 million for creditor’s right from Chongqing Trust. In respect of the aforesaid transfer of creditor’s right, the Company’s shareholder Jinke Investment, and the Company’s actual controllers Huang Hongyun and his wife Tao Hongxia provided joint liability guaranty.

• [Note 3] According to the Creditor’s Right Transfer Agreement signed by the Company, Hunan Jinke Real Estate Development Co., Ltd. (hereinafter referred to as Hunan Jinke), Hunan Liangxing Real Estate Development Co., Ltd. (hereinafter referred to as Liangxing Real Estate) and China Orient Asset Management Co., Ltd. Zhengzhou Office (hereinafter referred to as Orient Management), Hunan Jinke transferred the creditor’s right of RMB501 million receivable by it from Liangxing Real Estate to Orient Management at the consideration of RMB500 million, and Liangxing Real Estate should pay capital occupation fees according to the agreed interest rate. The transfer period of the said receivables is 24 months, and after maturity, the Company will receive the creditor’s right of Liangxing Real Estate at the price agreed under the contract. As at 31 December 2014, the Company has paid RMB100 million. In respect of the aforesaid transfer of creditor’s right, Hunan Jinke provided its 80% equity in Liangxing Real Estate as a pledge guarantee, and the Company’s actual controllers Huang Hongyun and his wife Tao Hongxia provided joint liability guaranty.

• [Note 4] According to the Agreement on Transfer and Repurchase of Receivables signed by Qingke Trading, Xingju Real Estate and Sichuan Trust Co., Ltd. (hereinafter referred to as Sichuan Trust), Qingke Trading transferred the creditor’s right of RMB200 million (among RMB500 million in total) receivable by it from Xingju Real Estate to Sichuan Trust, and Qingke Trading should pay capital occupation fees according to the agreed interest rate. The transfer period of the said receivables is 24 months, and after maturity, Qingke Trading will receive the creditor’s right of Xingju Real Estate at the price agreed under the contract. In respect of the aforesaid transfer of creditor’s right, the Company’s shareholder Jinke Investment, and the Company’s actual controllers Huang Hongyun and his wife Tao Hongxia provided joint liability guaranty.

• 2) For other non-current liabilities maturing within one year, refer to the call loans with connected parties in the notes to connected parties and connected transactions in the Notes to the Financial Statements.

28. Long-term loans

Item Amount at the end of the period Guaranteed loan 9,296,900,000.00 Mortgaged loan 3,758,750,000.00 Mortgaged and guaranteed loan 5,956,300,000.00 Pledged and guaranteed loan 1,499,260,000.00 Mortgaged, pledged and guaranteed loan 800,000,000.00 Total 21,311,210,000.00	Amount at the beginning of the period 2,280,800,000.00 4,462,254,672.00 5,412,600,000.00 500,000,000.00 5,000,000.00
	12,660,654,672.00

— 103 —

FINANCIAL INFORMATION OF JINKE PROPERTY

APPENDIX II

1. Deferred earnings

2. (1) Details

Amount at the Increase in Decrease in Amount at beginning of the current the current the end of the Item the period period period period Forming reason Government subsidies 62,807,756.66 15,656,105.00 5,534,990.12 72,928,871.54 Special fiscal subsidy for charges for infrastructure construction Total 62,807,756.66 15,656,105.00 5,534,990.12 72,928,871.54

• (2) Details of government subsidies

Amount

stated as

nonIncreased operating Amount at subsidies in revenue in Amount at Related to the beginning the current the current Other the end of assets/related to Item of the period period period changes the period revenues Special fiscal 62,807,756.66 15,656,105.00 5,534,990.12 72,928,871.54 Related to assets subsidy for charges for infrastructure construction Subtotal 62,807,756.66 15,656,105.00 5,534,990.12 72,928,871.54

30. Other non-current liabilities

• (1) Details

Amount at the Amount at the end beginning of the Item of the period period Creditor’s right, equity and trust fund of the right of return on equity 1,290,000,000.00 1,800,000,000.00 Others — 195,000,000.00 Total 1,290,000,000.00 1,995,000,000.00

Item

— 104 —

FINANCIAL INFORMATION OF JINKE PROPERTY

APPENDIX II

• (2) Other descriptions

• 1) Details about creditor’s right, equity and trust fund of the right of return on equity

	Start date	Maturity		Amount at the end
Loan unit	of loan	date of loan	Currency	of the period	Notes
Xinjiang Huarong Tianjin
Investment Partnership (limited
partnership) (hereinafter
referred to as Huarong
Investment)	2014-4-30	2016-4-28	RMB	490,000,000.00	[Note 1]
China Orient Asset Management
Co., Ltd. Zhengzhou Office
(hereinafter referred to as
Orient Management)	2014-3-20	2016-3-20	RMB	800,000,000.00	[Note 2]
Subtotal				1,290,000,000.00

• [Note 1] According to the Capital Increase Agreement and Supplemental Agreement to the Capital Increase Agreement signed by Huarong Investment, the Company, Chongqing Jinke Zhongjun Real Estate Development Co., Ltd. (hereinafter referred to as Zhongjun Real Estate), and Chongqing Zhongjun Investment Co., Ltd. (hereinafter referred to as Zhongjun Investment), Huarong Investment subscribed RMB60 million new registered capital of Zhongjun Real Estate at the price of RMB490 million. After the completion of capital increase, the registered capital of Zhongjun Real Estate rose to RMB256,078,431.37, which has been registered with the industrial and commercial authority. During the period when Huarong Investment held the equity of Zhongjun Real Estate, Zhongjun Real Estate paid capital occupation fees to Huarong Investment at the agreed time and annual yield. Shareholders of Zhongjun Real Estate agreed and had the obligation to repurchase Zhongjun Real Estate’s equity held by Huarong Investment on 28 April 2016 in the form agreed through consultation by the two parties. The said equity trust was classified as financial liabilities at the time of initial recognition and was stated under other non-current liabilities. In respect of the said equity trust, Chongqing Jinke provided the RMB99.36 million registered capital of Zhongjun Real Estate held by it, and Zhongjun Investment provided the RMB95.4584 million registered capital of Zhongjun Real Estate held by it, as the maximum pledge guarantee. In the meantime, Jinke Investment and Huang Hongyun provided the maximum warranty liability guarantee.

• [Note 2] According to the Creditor’s Right Transfer Agreement signed by the Company, Hunan Jinke, Changsha Jinke Real Estate Development Co., Ltd. (hereinafter referred to as Changsha Jinke) and Oriental Management, Hunan Jinke transferred the creditor’s right of RMB801.8 million receivable by it from Changsha Jinke to Oriental Management at the consideration of RMB800 million, and Changsha Jinke should pay capital occupation fees according to the agreed interest rate. The transfer period of the said receivables is 24 months, and after maturity, the Company will receive the creditor’s right of Changsha Jinke at the price agreed under the contract. In respect of the aforesaid equity transfer, Hunan Jinke provided its 100% equity in Changsha Jinke as a pledge guarantee, and Jinke Investment, Huang Hongyun and his wife Tao Hongxia provided joint liability guaranty.

— 105 —

FINANCIAL INFORMATION OF JINKE PROPERTY

APPENDIX II

31. Share capital

• (1) Details

			Increase/decrease in the current period (“-” for decrease)	Increase/decrease in the current period (“-” for decrease)	Increase/decrease in the current period (“-” for decrease)	Increase/decrease in the current period (“-” for decrease)	Increase/decrease in the current period (“-” for decrease)
		Amount at the			Transfer			Amount at the
		beginning of the	Issuance of	Bonus	from capital			end of the
Item		period	new shares	shares	reserves	Others	Subtotal	period
Total	shares	1,158,540,051.00	220,000,000.00				220,000,000.00	1,378,540,051.00

(2) Other descriptions

Upon approval by the China Securities Regulatory Commission in the Reply Concerning Approval of Non-public Issuance of Stocks of Jinke Property Group Co., Ltd. (Zheng Jian Xu Ke [2014] No. 987), the Company issued 220,000,000 ordinary shares in RMB (RMB1/per share), raising funds of RMB2,200,000,000.00. After deducting the issue expense of RMB27,667,169.81, the net raised funds amounted to RMB2,172,332,830.19, of which RMB220,000,000.00 was included in the share capital, and RMB1,952,332,830.19 was included in the capital premium (share premium). The capital increase has been verified by Pan-China Certified Public Accountants (special general partnership), which issued the Capital Verification Report (Tian Jian Yan [2014] No. 8-57).

32. Capital reserves

(1) Details

	Amount at the
	beginning of the	Increase in the	Decrease in the	Amount at the
Item	period	current period	current period	end of the period
Capital premium (share
premium)	71,049,489.43	1,998,216,234.55	71,102,893.79	1,998,162,830.19
Other capital reserve	104,155,946.89	—	—	104,155,946.89
Total	175,205,436.32	1,998,216,234.55	71,102,893.79	2,102,318,777.08

• (2) Other descriptions

• 1) The capital premium for the current period increased by RMB1,998,216,234.55, of which: RMB1,952,332,830.19 was attributed to the non-public issuance of shares; and shareholders of the Company’s subsidiary Chongqing Jinke Junwei Real Estate Development Co., Ltd. (hereinafter referred to as Jinke Junwei) increased capital and transferred minority equity of the Company’s subsidiary Chongqing Jinke Juncheng Real Estate Development Co., Ltd. (hereinafter referred to as Juncheng Real Estate) increased capital premium of RMB45,883,404.36.

— 106 —

FINANCIAL INFORMATION OF JINKE PROPERTY

APPENDIX II

• 2) The capital premium for the current period decreased by RMB71,102,893.79. For details, please refer to the surplus reserves in the notes to the consolidated financial statements in the Notes to the Financial Statements for details.

• Other comprehensive income

					Amount incurred in the current period	Amount incurred in the current period	Amount incurred in the current period	Amount incurred in the current period
					Less: Those
					included in
						other
				comprehensive
					income in the
				previous period				The amount	**The **	amount
				but transferred				after tax	after tax
	Amount at the	Pre-tax amount		into the profit				attributed to	attributed to		Amount at the
	beginning of	**in **	the current		**or **	loss in the	Less: Income	the parent	minority		end of the
Item	the period		period	current period			tax expense	company	shareholders		period
Other
comprehensive
income will be
reclassified
into profit and
loss	559,740,586.31	49,435,409.98				705,783.60	8,879,808.85	34,764,389.39	5,085,428.14		594,504,975.70
Of which: The
difference
between the
fair value and
book value of
investment
property
converted from
inventories	559,211,248.61	49,435,409.98				—	9,056,254.75	35,293,727.09	5,085,428.14		594,504,975.70
Gains/losses from
change in fair
value of
available-for-sale
financial assets	529,337.70		—			705,783.60	-176,445.90	-529,337.70		—		—
Other
comprehensive
income	559,740,586.31	49,435,409.98				705,783.60	8,879,808.85	34,764,389.39	5,085,428.14		594,504,975.70

1. Surplus reserve

2. (1) Details

			Amount at the
			beginning of the	Increase in the	Decrease in the	Amount at the
Item			period	current period	current period	end of the period
Statutory	surplus	reserve	301,114,786.54	133,609,073.41	272,955,268.79	161,768,591.16
Total			301,114,786.54	133,609,073.41	272,955,268.79	161,768,591.16

— 107 —

FINANCIAL INFORMATION OF JINKE PROPERTY

APPENDIX II

• (2) Other descriptions

• 1) The increase in the current period is the RMB133,609,073.41 statutory surplus reserve withdrawn according to 10% of the net profit of the parent company.

• 2) The decrease in the current period is RMB344,058,162.58 (including capital premium of RMB71,102,893.79 and surplus reserve of RMB272,955,268.79), which is ascribable to the acquisition of minority equity of the Company’s subsidiaries Chongqing Bishan Jinke Zhongxi Real Estate Co., Ltd., Chongqing Jinke Junyao Real Estate Development Co., Ltd. and Shaanxi Haoyuefu Real Estate Development Co., Ltd. as well as equity transaction of capital increase by shareholders of the Company’s subsidiary Juncheng Real Estate.

• Undistributed profits

Item Undistributed profits at the beginning of the year Add: Net profit attributable to owners of the parent company in the current period Less: Statutory surplus reserve Common stock dividends payable Undistributed profits at the end of the period	Amount in the current period 5,657,563,669.18 907,884,138.79 133,609,073.41 139,024,806.12 6,292,813,928.44	Amount in the same period of preceding year 4,875,172,995.17 984,071,530.24 85,826,851.13 115,854,005.10
		5,657,563,669.18

(II) Notes to consolidated statement of income

1. Operating revenue/cost

2. (1) Details

Item Revenue from main businesses Revenue from other businesses [Note] Total	Amount in the current period Revenue Cost 17,072,075,914.64 13,251,834,856.09 251,431,351.53 84,823,665.12 17,323,507,266.17 13,336,658,521.21	Amount in the same period of preceding year Revenue Cost 15,933,064,691.54 11,878,365,053.90 136,550,487.28 7,916,859.09 16,069,615,178.82 11,886,281,912.99	Amount in the same period of preceding year Revenue Cost 15,933,064,691.54 11,878,365,053.90 136,550,487.28 7,916,859.09 16,069,615,178.82 11,886,281,912.99
			11,886,281,912.99

• [Note] In the current period, the Company’s revenues from other businesses tallied RMB251,431,351.53 and the costs of other businesses amounted to RMB84,823,665.12, indicative of high margin, which is mainly because the Company adopted the fair value method in the subsequent measurement of external transfer of land ticket and investment properties, and did not provide depreciation for investment properties for rent.

— 108 —

APPENDIX II

FINANCIAL INFORMATION OF JINKE PROPERTY

• (2) Revenue from/cost of main businesses (by sector)

Name of region Chongqing Sichuan Jiangsu Beijing Hunan Internal elimination Subtotal	Amount in the current period Revenue Cost 12,737,670,545.39 9,665,447,800.76 2,118,001,376.90 1,820,187,081.22 2,514,342,102.42 2,028,884,543.14 1,267,717,026.00 1,250,731,601.37 93,419,566.00 86,439,643.22 -1,659,074,702.07 -1,599,855,813.62 17,072,075,914.64 13,251,834,856.09	Amount in the same period of preceding year Revenue Cost 9,627,458,689.87 6,900,413,719.00 478,013,379.02 429,339,479.67 4,617,949,813.34 3,704,323,049.11 2,000,600,944.57 1,667,510,778.90 377,379,450.96 314,350,996.53 -1,168,337,586.22 -1,137,572,969.31 15,933,064,691.54 11,878,365,053.90	Amount in the same period of preceding year Revenue Cost 9,627,458,689.87 6,900,413,719.00 478,013,379.02 429,339,479.67 4,617,949,813.34 3,704,323,049.11 2,000,600,944.57 1,667,510,778.90 377,379,450.96 314,350,996.53 -1,168,337,586.22 -1,137,572,969.31 15,933,064,691.54 11,878,365,053.90
			11,878,365,053.90

2. Business taxes and surcharges

Item Business tax Municipal maintenance and construction tax Education surcharge Local education surcharge Land appreciation tax Property tax Others Total	Amount in the current period 885,723,539.91 59,309,778.56 27,409,552.21 18,369,107.70 236,351,457.00 11,715,772.90 1,661,179.69 1,240,540,387.97	Amount in the same period of preceding year 829,960,891.86 54,402,886.76 25,331,729.94 15,735,066.61 692,200,777.30 7,238,314.66 511,465.18
		1,625,381,132.31

1. Sales expenses

Item Advertising & publicity expenses Remuneration of employees Others Total	Amount in the current period 316,126,287.10 194,157,520.18 127,787,511.64 638,071,318.92	Amount in the same period of preceding year 344,685,349.87 174,269,893.17 126,885,691.83
		645,840,934.87

— 109 —

APPENDIX II

FINANCIAL INFORMATION OF JINKE PROPERTY

1. Management expenses

Item Remuneration of employees Office administrative expense Taxes Impairment of fixed assets Others Total	Amount in the current period 440,897,346.91 141,080,380.94 24,783,210.24 33,175,858.38 79,384,349.19 719,321,145.66	Amount in the same period of preceding year 343,743,736.65 130,917,359.36 66,919,447.13 22,021,458.52 72,693,215.80
		636,295,217.46

1. Financial expenses

Item Interest expenses Less: interest income Others Total	Amount in the current period Amount in the same period of preceding year 186,257,367.15 119,761,404.52 97,022,701.19 63,090,235.62 73,745,173.79 27,964,200.68 162,979,839.75 84,635,369.58	Amount in the current period Amount in the same period of preceding year 186,257,367.15 119,761,404.52 97,022,701.19 63,090,235.62 73,745,173.79 27,964,200.68 162,979,839.75 84,635,369.58
		84,635,369.58

1. Assets impairment loss

Item Loss from bad debts Inventory impairment loss Total	Amount in the current period Amount in the same period of preceding year 37,621,413.88 24,798,297.86 731,873,691.79 — 769,495,105.67 24,798,297.86	Amount in the current period Amount in the same period of preceding year 37,621,413.88 24,798,297.86 731,873,691.79 — 769,495,105.67 24,798,297.86
		24,798,297.86

1. Revenue from change in fair value

		Amount in the
	Amount in the	same period of
Item	current period	preceding year
Financial assets at fair value through profit or loss	160,000.00	1,052,763.78
Investment property measured by fair value	54,152,554.05	46,689,449.72
Total	54,312,554.05	47,742,213.50

— 110 —

FINANCIAL INFORMATION OF JINKE PROPERTY

APPENDIX II

1. Return on investment

		Amount in the
	Amount in the	same period of
Item	current period	preceding year
Long-term equity investment return stated by equity
method	29,781,399.44	-8,467,049.49
Investment return generated by disposal of long-term
equity investment	14,295,198.13	—
Gains generated by revaluation of the remaining equity
based on the fair value after losing control	—	2,721,031.90
Others	671,399.49	-528,680.63
Total	44,747,997.06	-6,274,698.22

1. Non-operating revenue

2. (1) Details

Item Gain from disposal of non-current assets Including: Gain from disposal of fixed assets Government subsidies Revenues from fines and liquidated damages Revenues from disposal of waste and old materials Others Total	Amount in the current period 1,005,175.42 1,005,175.42 202,178,584.12 28,069,969.45 301,908.87 6,034,103.55 237,589,741.41	Amount in the same period of preceding year Amount stated as non-recurring gains/losses in the current period 517,095.03 1,005,175.42 517,095.03 1,005,175.42 77,258,290.98 202,178,584.12 18,980,402.59 28,069,969.45 — 301,908.87 6,379,493.95 6,034,103.55 103,135,282.55 237,589,741.41	Amount in the same period of preceding year Amount stated as non-recurring gains/losses in the current period 517,095.03 1,005,175.42 517,095.03 1,005,175.42 77,258,290.98 202,178,584.12 18,980,402.59 28,069,969.45 — 301,908.87 6,379,493.95 6,034,103.55 103,135,282.55 237,589,741.41
			237,589,741.41

(2) Details of government subsidies

Subsidy programs Financial subsidies [Note] Others Subtotal	Amount in the current period Amount in the same period of preceding year Related to assets/ related to revenues 183,936,700.00 60,285,867.00 Related to revenues 18,241,884.12 16,972,423.98 Related to revenues 202,178,584.12 77,258,290.98

— 111 —

APPENDIX II

FINANCIAL INFORMATION OF JINKE PROPERTY

[Note] They are financial subsidies received by the Company from Changsha Economic and Technological Development Zone and financial subsidies received by the Company’s subsidiaries Chongqing Jinke Industrial Group Kerun Real Estate Development Co., Ltd. and Chongqing Jinke Kunhe Investment Co., Ltd. from Chongqing Fuling Finance Financial Bureau and Management Committee of Fuling New City Area, Chongqing.

10. Non-operating expenditure

			Amount stated as
		Amount in the	non-recurring
	Amount in the	same period of	gains/losses in the
Item	current period	preceding year	current period
Loss from disposal of non-current
assets	394,476.81	374,948.00	394,476.81
Including: Loss on the disposal of
fixed assets	394,476.81	374,948.00	394,476.81
Donation	18,552,475.20	25,193,914.86	18,552,475.20
Expenditure of compensation	14,882,831.10	14,197,170.22	14,882,831.10
Expenditure of late fee	401,733.09	111,270.27	401,733.09
Others	5,425,956.06	3,795,032.55	5,425,956.06
Total	39,657,472.26	43,672,335.90	39,657,472.26

11. Income tax expense

(1) Details

Item Current income tax expense Deferred income tax expense Total	Amount in the current period 71,944,753.22 -181,550,050.83 -109,605,297.61	Amount in the same period of preceding year 546,420,567.99 -225,391,931.84
		321,028,636.15

— 112 —

APPENDIX II

FINANCIAL INFORMATION OF JINKE PROPERTY

• (2) Accounting profit and adjustment process of income tax expense

Item Total profit Income tax expense calculated by statutory / applicable tax rates Impact of application of different tax rates by subsidiaries Impact of adjustment in previous income tax Impact of non taxable income Impact of non-deductible costs, expenses and losses Impact of using deductible loss of previous unrecognized deferred tax assets Impact of deductable temporary difference or deductible loss of unrecognized deferred tax assets in the current period Others [note] Income tax expense	Amount in the current period 753,433,767.25 188,358,441.81 -159,333,890.20 8,357,584.23 -7,445,349.86 9,808,113.87 —
	125,521,395.81 -274,871,593.26
	-109,605,297.61

• [Note] In 2011 -2013, the green ecological residence communities developed by the Company and some of its subsidiaries complied with the encouraged industries (namely construction of urban landscaping and ecological communities) specified under the Directory Catalogue on Readjustment of Industrial Structure (Version 2005) (Fa Gai Wei Ling No. 40 [2005]) and the Directory Catalogue on Readjustment of Industrial Structure (Version 2011) (Fa Gai Wei Ling No. 9 [2011]). According to the Notice on Enterprise Income Tax Issues Concerning Further Implementing the Western China Development Strategy (Bulletin [2012] No. 12 of the State Administration of Taxation), the Company and relevant subsidiaries can enjoy a reduced enterprise income tax rate of 15% temporarily. As the Catalogue of Industries Encouraged to Develop in the Western Region has not yet been published, it is uncertain whether the Company and relevant subsidiaries can enjoy the preferential treatments in enterprise income tax in 2011-2013 due to the impact of macro-control policies of the State. So in 2011-2013, the income tax of the Company and relevant subsidiaries is temporarily calculated and recognized at a rate of 25%.

On 20 August 2014, the Catalogue of Industries Encouraged to Develop in the Western Region (Fa Gai Wei Ling No. 15 [2014]) issued by the National Development and Reform Commission has specified that the “construction of urban landscaping and ecological communities” is still the industry encouraged by the State; meanwhile, the Company and relevant subsidiaries have again applied to the competent tax authorities for confirmation of preferential policies on enterprise income tax that they have enjoyed. The competent tax authorities have confirmed that the Company and relevant subsidiaries will enjoy a reduced enterprise income tax rate of 15% in 2011-2013. The impact of changing income tax rate from 25% to 15% for calculation of income tax expenses of the Company and relevant subsidiaries in 2011-2013 is -RMB274,871,600, including: current income tax expense of -RMB460,574,600 and deferred income tax expense of RMB185,703,000.

— 113 —

FINANCIAL INFORMATION OF JINKE PROPERTY

APPENDIX II

1. After-tax net amount of other comprehensive income

For after-tax net amount of other comprehensive income, please refer to the comprehensive income in the notes to the consolidated balance sheet in the Notes to the Financial Statements.

(III) Notes to consolidated statement of cash flow

1. Other cash received relating to operating activities

Item Funds flow between units Customers’ accounts collected and remitted Cash deposit Finance subsidies Interest income from funds Others Total	Amount in the current period 1,838,284,970.31 551,766,744.77 690,085,673.88 212,299,699.00 97,022,701.19 393,013,815.91 3,782,473,605.06	Amount in the same period of preceding year 1,187,672,164.00 514,357,374.75 406,320,783.42 98,273,098.75 63,090,235.62 330,629,527.99
		2,600,343,184.53

1. Other cash paid relating to operating activities

Item Funds flow between units Customers’ accounts collected and remitted Cash deposit Out-of-pocket expenses Others Total	Amount in the current period 2,218,841,930.80 482,753,190.28 698,099,247.91 753,250,103.27 608,784,130.52 4,761,728,602.78	Amount in the same period of preceding year 1,036,303,500.00 434,768,018.90 723,959,853.90 648,255,790.36 405,309,674.70
		3,248,596,837.86

1. Other cash paid relating to investing activities

		Amount in the
	Amount in the	same period of
Item	current period	preceding year
Net cash from disposal of subsidiaries and other
operating units	—	28,692,773.83
Total	—	28,692,773.83

— 114 —

APPENDIX II

FINANCIAL INFORMATION OF JINKE PROPERTY

1. Other cash received relating to financing activities

Item Collection of financing bill discounted Loans of entities Loans and financing bills against a pledge of time deposit certificates and net reduction in security deposit Total	Amount in the current period 5,367,372,094.80 191,500,000.00 — 5,558,872,094.80	Amount in the same period of preceding year 4,089,078,856.08 787,671,237.00 1,177,523,552.91
		6,054,273,645.99

1. Other cash paid relating to financing activities

Item Increase in acceptance of financing bills Principal of equity trust Loans of entities Loans and financing bills against a pledge of time deposit certificates and net increase in security deposit Others Total	Amount in the current period 5,717,500,000.00 — 1,070,368,244.93 106,590,520.88 — 6,894,458,765.81	Amount in the same period of preceding year 4,422,575,000.00 1,968,590,000.00 1,682,250,000.00 — 504,617,000.00
		8,578,032,000.00

— 115 —

FINANCIAL INFORMATION OF JINKE PROPERTY

APPENDIX II

1. Supplementary information of cash flow statement

2. (1) Supplementary information of cash flow statement

Supplementary information 1) Reconciliation of net profit to cash flows from operating activities: Net profit Add: Provision for asset impairment Impairment of fixed assets, oil and gas assets and production-type biological assets Amortization of intangible assets Amortization of long-term prepaid expenses Loss from disposal of fixed assets, intangible assets and other long-term assets (“-” for gain) Loss on scrapping of fixed assets (“-” for gains) Loss from change in fair value (“-” for gain) Financial expense (“-” for gain) Loss from investment (“-” for gain) Decrease in deferred tax assets (“-” for increase) Increase in deferred tax liabilities (“-” for decrease) Decrease in inventories (“-” for increase) Decrease in operating receivables (“-” for increase) Increase in operating payables (“-” for decrease) Others Net cash flows from operating activities 2) Significant investing and financing activities not involving cash receipts and payments: Debts changed to capital Convertible corporate bonds maturing within one year Fixed assets acquired under finance lease 3) Net changes in cash and cash equivalents: Ending balance of cash Less: Opening balance of cash Add: Ending balance of cash equivalents Less: Opening balance of cash equivalents Net increase in cash and cash equivalents	Amount in the current period 863,039,064.86 769,495,105.67 56,393,885.04 5,648,667.64 9,007,132.02 -610,698.61 — -54,312,554.05 186,257,367.15 -44,747,997.06 -183,678,769.02 2,128,718.19 -14,308,314,222.51 -208,527,568.87 4,523,458,869.47 -8,384,763,000.08 — — — 5,805,282,261.64 4,712,813,588.73 — — 1,092,468,672.91	Amount in the same period of preceding year 946,284,139.53 24,798,297.86 38,993,659.19 4,207,565.53 6,194,620.17 -142,147.03 — -47,742,213.50 119,761,404.52 6,274,698.22 -246,260,907.33 20,868,975.50 -12,008,384,512.47 111,678,007.82 6,505,462,357.84 -4,518,006,054.15 — — — 4,712,813,588.73 6,490,311,651.24 — — -1,777,498,062.51

— 116 —

FINANCIAL INFORMATION OF JINKE PROPERTY

APPENDIX II

• (2) Net cash paid for acquisition of subsidiaries in the current period

Item

Amount in the current period

Cash and cash equivalents paid for merger of enterprises in the current period 372,200,000.00 Including: Xinjiang Huaran Oriental New Energy Co., Ltd. 320,000,000.00 Shaanxi Jinrunda Real Estate Development Co., Ltd. 52,000,000.00 Yunnan Jinke Xinhaihui Real Estate Co.，Ltd. 200,000.00 Less: Cash and cash equivalents held by subsidiaries on the date of acquisition 40,172,911.47 Including: Xinjiang Huaran Oriental New Energy Co., Ltd. 23,423,833.25 Shaanxi Jinrunda Real Estate Development Co., Ltd. 520,829.56 Yunnan Jinke Xinhaihui Real Estate Co.，Ltd. 16,228,248.66 Add: Cash and cash equivalents paid for merger of enterprises in the — previous period Net cash received from subsidiaries 332,027,088.53

• (3) Composition of cash and cash equivalents

		Amount at the
	Amount at the end	beginning of the
Item	of the period	period
1) Cash	5,805,282,261.64	4,712,813,588.73
Including: Stock cash	1,223,580.13	3,505,688.92
Bank deposits used for payment at any time	5,804,058,681.51	4,709,307,899.81
2) Cash equivalents	—	—
Including: Bond investments maturing within three
months	—	—
3) Ending balance of cash and cash equivalents	5,805,282,261.64	4,712,813,588.73
Including: Cash and cash equivalents restrictedly used
in the parent company or subsidiaries	1,721,849,342.67	1,651,690,051.17

(4) Description of supplementary information of cash flow statement

As at 31 December 2014, other monetary funds included pledged time deposits of RMB214,250,000.00, bank acceptance deposits of RMB793,413,558.87, L/C guarantee deposits of RMB250,000,000.00, loan deposits of RMB322,805,967.97, mortgage deposits of RMB130,000,206.56, and guarantee deposits of RMB11,379,609.27.

In the preparation of the cash flow statement, the Company has removed items not tallying with cash and cash equivalents from the cash flow statement.

— 117 —

FINANCIAL INFORMATION OF JINKE PROPERTY

APPENDIX II

(IV) Others

1. Assets with ownership or right of use restricted

Item the Monetary fund Accounts receivable Inventories Investment properties Fixed assets Construction in progress Intangible assets Total	Book value at end of the period Reason for restriction 1,721,849,342.67 Margin deposit 346,808,430.00 Pledged loan 19,766,160,882.27 Mortgaged loan 1,739,433,040.23 Mortgaged loan 576,989,350.87 Mortgaged loan 612,835,176.98 Mortgaged loan 28,171,281.17 Mortgaged loan 24,792,247,504.19

2. Foreign currency monetary items

	Foreign currency
	balance at the end
Item	of the period	Exchange rate	RMB equivalent
Monetary fund
Including: HKD	1,292,706.34	0.78887	1,019,777.25
Other payables
Including: HKD	1,306,248.55	0.78887	1,030,460.29

— 118 —

APPENDIX II

FINANCIAL INFORMATION OF JINKE PROPERTY

VI. Change in the consolidation scope

• (I) Merger of enterprises not under the same control

• Merger of enterprises not under the same control in the current period

Unit: RMB’0,000

			Percentage
			of equity
Name of the acquired party	Acquisition time	Acquisition cost	acquired (%)	Way of acquisition
Shaanxi Jinrunda Real Estate	30 April 2014	10,200.00	51.00	Equity transfer +
Development Co., Ltd.				capital increase
(hereinafter referred to as
Jinrunda Real Estate)
[note 1]
Xinjiang Huaran Oriental New	31 December 2014	70,000.00	100.00	Equity transfer
Energy Co., Ltd.
(hereinafter referred to as
Xinjiang Huaran) [note 2]
Yunnan Jinke Xinhaihui Real	15 May 2013	1,000.00	50.00	Establishment by
				capital contribution
Estate Co., Ltd. (hereinafter	31 May 2014	20.00	1.00	Equity transfer
referred to as Jinke
Xinhaihui)
			Revenue of
			the acquired
			party from	Net profit of the
			the date of	acquired party for
		Determination	acquisition to	the date of
Name of the purchased	Date of	basis for the date	the end of	acquisition to the
party	acquisition	of acquisition	the period	end of the period
Shaanxi Jinrunda Real Estate	30 April 2014	Handover date of		-721,595.44
Development Co., Ltd.		property right
(hereinafter referred to as
Jinrunda Real Estate)
Xinjiang Huaran Oriental New	31 December 2014	Handover date of
Energy Co., Ltd.		property right
(hereinafter referred to as
Xinjiang Huaran)
Yunnan Jinke Xinhaihui Real	31 May 2014	Handover date of		-13,771,735.68
Estate Co., Ltd. (hereinafter		property right
referred to as Jinke
Xinhaihui)

— 119 —

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FINANCIAL INFORMATION OF JINKE PROPERTY

• [Note 1] According to the Cooperative Development Agreement on the Urban Village Reconstruction Project in Lijiazhuang, Fengxi New City and the Supplemental Agreement signed by the Company, Shaanxi Tongzhi Real Estate Development Co., Ltd., Chang’an International Trust Co., Ltd., Xi’an Hongze Industrial Co., Ltd., Miao Runxuan and Pan Li, the Company injected RMB50 million in Jinrunda Real Estate to hold 25% equity therein; meanwhile, Chang’an International Trust Co., Ltd. transferred its 26% equity in Jinrunda Real Estate to the Company at a price of RMB52 million. After completion of the aforesaid capital increase and equity transfer, the Company held 51% equity in Jinrunda Real Estate and obtained effective control thereover. When the long-term equity investment obtained through merger of enterprises not under the same control achieved by the Company by multiple transactions in stages is a “package deal”, the aforesaid transactions are considered as a transaction for acquisition of control in accounting.”

• [Note 2] Data of Xinjiang Huaran in the consolidated financial statements also include the data of the subsidiary Kumul Huaran Oriental Jingxia Wind Power Generation Co., Ltd.

2. Merger cost and goodwill

(1) Details

Unit: RMB’0,000

	Jinrunda Real
Item	Estate	Xinjiang Huaran	Jinke Xinhaihui
Merger cost
Cash	10,200.00	70,000.00	20.00
Fair value of the previously held
equity on the date of
acquisition			823.45
Total merger cost	10,200.00	70,000.00	843.45
Less: Share of the fair value of the
acquired identifiable net assets	10,200.00	11,622.37	843.45
Amount of goodwill/merger cost
below the share of the fair value
of the acquired identifiable net
assets		58,377.63

(2) Contingent consideration and changes thereof

According to the Equity Transfer Agreement and the Performance Commitment and Compensation Agreement signed by the subsidiary Jinke New Energy Co., Ltd. (hereinafter referred to as Jinke New Energy) and Xinjiang China Merchants Kunlun Capital Investment Joint Venture (limited partnership) (hereinafter referred to as “CMK Capital”), CMK Capital transfers its 90% equity in Xinjiang Huaran to Jinke New Energy at the price of RMB630 million, which will be paid in four installments; CMK Capital has made a commitment regarding Xinjiang Huaran’s results in 2015, 2016 and 2017: if Xinjiang Huaran’s actual net profit in 2015 is lower than the committed amount in 2015 and/or the cumulative sum of the actual net profits in 2016 and 2017 are lower than

— 120 —

APPENDIX II

FINANCIAL INFORMATION OF JINKE PROPERTY

the committed amounts in 2016 and 2017, CMK Capital will calculate the committed compensation according to the Performance Commitment and Compensation Agreement and make the committed compensation within the sum of the first and second installments of equity transfer deposits and the fourth installment of equity transfer payment, totaling RMB200 million.

(3) Major causes for large-value goodwill

The Company’s acquisition of Xinjiang Huaran is mainly reliant on its overall corporate value including good wind power resources, franchise, human resources, special management mode and management means and other intangible assets failing to be fully reflected in the book.

3. Identifiable assets and liabilities of the acquired party as of the date of acquisition

Unit: RMB’0,000

	Jinrunda Real Estate	Jinrunda Real Estate	**Xinjiang **	Huaran	Jinke Xinhaihui	Jinke Xinhaihui
	Fair value on	Book value	Fair value on	Book value	Fair value on	**Book **	value
	the date of	on the date	the date of	on the date	the date of	on the date
Item	acquisition	of acquisition	acquisition	of acquisition	acquisition	of acquisition
Assets
Monetary fund	52.08	52.08	2,342.38	2,342.38	1,622.82	1,622.82
Accounts receivable	—	—	4,389.90	4,389.90	—		—
Advance payments	16,320.35	16,320.35	108.36	108.36	13.60		13.60
Other receivables	9,800.00	9,800.00	38.81	38.81	12.60		12.60
Inventories	18.00	18.00	—	—	—		—
Other current assets	—	—	11,151.79	11,151.79	—		—
Fixed assets	—	—	32,945.12	32,945.12	1.80		1.80
Construction in progress	—	—	61,387.65	61,387.65	—		—
Liabilities
Accounts payable	—	—	85,226.24	85,226.24	—		—
Payroll payable	—	—	116.76	116.76	—		—
Taxes payable	—	—	0.93	0.93	3.62		3.62
Other payables	6,194.90	6,194.90	15,397.71	15,397.71	0.30		0.30
Net assets	19,995.53	19,995.53	11,622.37	11,622.37	1,646.90	1,646.90
Less: Minority interests	—	—	—	—	—		—
Net assets acquired	19,995.53	19,995.53	11,622.37	11,622.37	1,646.90	1,646.90

— 121 —

FINANCIAL INFORMATION OF JINKE PROPERTY

APPENDIX II

1. Gains or losses arising from remeasuring the equity held prior to the date of acquisition at fair value

					Amount of
					change in other
					comprehensive
					income and
				Determination	other owners’
				method and	equity relating
			Gains or losses	major	to the previously
			arising from	assumptions for	held equity
	Book value of	Fair value of	remeasuring the	the fair value of	transferred into
	the previously	the previously	equity held	the previously	return on
	held equity on	held equity on	prior to the date	held equity on	investment
Name of the	the date of	the date of	of acquisition at	the date of	before the date
acquired party	acquisition	acquisition	fair value	acquisition	of acquisition
Jinke Xinhaihui	8,234,492.34	8,234,492.34

• (II) Change in the consolidation scope for other reason

• Increase of the consolidation scope

			Contribution
	Way of		amount
Company name	acquisition	Acquisition time	(RMB’0,000)	Percentage (%)
Chongqing Jinke Hongrui Real
Estate Development Co., Ltd.	New establishment	9 April 2014	6,000.00	60.00
Chongqing Jinke Jinyu Real
Estate Development Co., Ltd.	New establishment	11 August 2014	3,000.00	100.00
Chongqing Jinke Yijia Real
Estate Development Co., Ltd.	New establishment	28 May 2014	3,000.00	100.00
Chongqing Jinke Kunji Real
Estate Development Co., Ltd.	New establishment	9 April 2014	5,100.00	51.00
Chengdu Jinke Zhuorui Real
Estate Development Co., Ltd.	New establishment	12 September 2014	10,000.00	100.00
Beijing Jinke Zhanhao Real
Estate Co., Ltd.	New establishment	29 April 2014	10,000.00	100.00
Chongqing Kangcheng
International Travel Agency
Co., Ltd.	New establishment	22 August 2014	30.00	100.00
Chongqing Jinke Zhengtao Real
Estate Development Co., Ltd.	New establishment	29 May 2014	3,000.00	100.00

— 122 —

FINANCIAL INFORMATION OF JINKE PROPERTY

APPENDIX II

			Contribution
	Way of		amount
Company name	acquisition	Acquisition time	(RMB’0,000)	Percentage (%)
Jinke Group Suzhou Baijun
Real Estate Development
Co., Ltd.	New establishment	13 August 2014	2,000.00	100.00
Jinke Industrial Investment
Development Company
Limited	New establishment	3 November 2014	50,000.00	100.00
Jinke Cultural Tourism
Investment & Development
Co., Ltd.	New establishment	12 December 2014	50,000.00	100.00
Chengdu Jinke Junfeng Real
Estate Development Co., Ltd.	New establishment	3 December 2014	5,000.00	100.00
Chongqing Jinke Junkai Real
Estate Development Co., Ltd.	New establishment	29 December 2014	5,000.00	100.00
Neijiang Jinke Liju Real Estate
Development Co., Ltd.	New establishment	5 March 2014	5,000.00	100.00
Shandong Baijun Real Estate
Development Co., Ltd.	New establishment	5 December 2014	1,000.00	100.00
Xinjiang Jinke Yukun Real
Estate Development Co., Ltd.	New establishment	7 May 2014	2,000.00	100.00
Chongqing Guoguan
Eco-agriculture Development
Co., Ltd.	New establishment	11 September 2014	2,000.00	100.00
Chongqing Huidian Business
Management Co., Ltd.	New establishment	17 February 2014	110.00	100.00
Chengdu Jinchen Real Estate
Development Co., Ltd.	New establishment	28 July 2014	5,000.00	100.00
Jinke New Energy Co., Ltd.	New establishment	14 October 2014	200,000.00	100.00
Tianjin Jinke Bozhi Real Estate
Co., Ltd.	New establishment	12 December 2014	9,000.00	90.00

1. Decrease of the consolidation scope

Net profit from the beginning of Net assets on the the period to the Company name Way of disposal Disposal time date of disposal date of disposal Tangshan Jinke Real Estate Liquidation of Development Co., Ltd. subsidiary 28 November 2014 — -1,021,110.33

— 123 —

FINANCIAL INFORMATION OF JINKE PROPERTY

APPENDIX II

VII. Interests in other entities

• (I) Interests in significant subsidiaries

• Significant subsidiaries

				Shareholding	Shareholding
	Principal	Place of	Business	percentage (%)		Way of
Subsidiary name	operating base	registration	nature	Direct	Indirect	acquisition
Chongqing Jiangjin Jinke	Jiangjin District,	No. 9, Block B2,	Real estate	70.00	30.00	Establishment
Guojun Real Estate Co.,	Chongqing	Zone B, Times
Ltd. (hereinafter referred to		Shopping Plaza,
as Guojun Real Estate)		Jijiang, Jiangjin
		District,
		Chongqing
Chongqing Bishan Jinke	Bishan County,	2/F, No. 129	Real estate	100.00		Merger of
Zhongxi Real Estate Co.,	Chongqing	Jinjian Road,				enterprises under
Ltd. (hereinafter referred to		Bicheng Street,				the same control
as Zhongxi Real Estate)		Bishan County,
		Chongqing
Chongqing Jinke Junyao Real	Kai County,	Binhu Road,	Real estate	55.00	45.00	Merger of
Estate Development Co.,	Chongqing	Yunfeng, Kai				enterprises under
Ltd. (hereinafter referred to		County,				the same control
as Junyao Real Estate)		Chongqing (Jinke
		Kaizhou City)
Chongqing Jinke Real Estate	Yubei District,	No. 161-197-2,	Real estate	100.00		Merger of
Development Co., Ltd.	Chongqing	Shuangning Road,				enterprises under
(hereinafter referred to as		Renhe Town,				the same control
Chongqing Jinke)		Yubei District,
		Chongqing
Chongqing Jinke Industrial	Jiangbei District,	Commercial	Real estate	100.00		Merger of
Group Hongjing Real Estate	Chongqing	Building, No. 19,				enterprises under
Development Co., Ltd.		Wuhong Road,				the same control
(hereinafter referred to as		Jiangbei District,
Hongjing Real Estate)		Chongqing
Chongqing Jinke Shangzun	Yongchuan	Building 5, No.	Real estate		100.00	Merger of
Real Estate Co., Ltd.	District,	177 Honghe				enterprises under
(hereinafter referred to as	Chongqing	Middle Road,				the same control
Shangzun Real Estate)		Yongchuan
		District
Wuxi Jinke Kerun Real Estate	Wuxi New	Xinfang Road,	Real estate	51.00	49.00	Merger of
Development Co., Ltd.	District	Fangqian, Jiangxi				enterprises under
(hereinafter referred to as		Street, Wuxi New				the same control
Wuxi Kerun)		District

— 124 —

APPENDIX II

FINANCIAL INFORMATION OF JINKE PROPERTY

				Shareholding	Shareholding
	Principal	Place of	Business	percentage (%)		Way of
Subsidiary name	operating base	registration	nature	Direct	Indirect	acquisition
Wuxi Jinke Jiarun Real Estate	Wuxi	No. 501, Nanhu	Real estate		100.00	Merger of
Development Co., Ltd.		Avenue, Wuxi				enterprises under
(hereinafter referred to as						the same control
Wuxi Jiarun)
Jiangyin Jinke Real Estate	Jiangyin	Yushanwan Club,	Real estate	98.00	2.00	Merger of
Development Co., Ltd.		Yunting Street,				enterprises under
(hereinafter referred to as		Jiangyin				the same control
Jiangyin Real Estate)
Chongqing Jinke Industrial	Fuling District,	No. 9, Zhongshan	Real estate	100.00		Merger of
Group Kerun Real Estate	Chongqing	Road, Fuling				enterprises under
Development Co., Ltd.		District,				the same control
(hereinafter referred to as		Chongqing
Chongqing Kerun)
Hunan Jinke Real Estate	Yuelu District,	No. 299, Leifeng	Real estate	100.00		Merger of
Development Co., Ltd.	Changsha	Avenue, Qingshan				enterprises under
		Village, Yuelu				the same control
		District,
		Changsha
Chongqing Qingke Trading	Fuling District,	No. 88, Xingyi	Commercial	88.00	12.00	Merger of
Co., Ltd. (hereinafter	Chongqing	South Road, Yihe				enterprises under
referred to as Qingke		Town, Fuling				the same control
Trading)		District,
		Chongqing

— 125 —

APPENDIX II

FINANCIAL INFORMATION OF JINKE PROPERTY

2. Significant non-wholly owned subsidiaries

			Dividend
		Gains/losses	announced to
		attributable to	be distributed	Balance of
	Shareholding	minority	to minority	minority
	percentage of	shareholders in	shareholders in	interests at the
	minority	the current	the current	end of the
Subsidiary name	shareholders	period	period	period
Chongqing Hechuan Jinke
Hejun Real Estate Co.,
Ltd. (hereinafter referred
to as Hejun Real Estate)	49.00%	54,853,468.67	—	56,409,688.78
Chongqing Jinke Zhongjun
Real Estate Development
Co., Ltd. (hereinafter
referred to as Zhongjun
Real Estate)	49.00%	-9,842,058.78	—	272,219,896.90
Jinan Jinke Xicheng Real
Estate Development Co.,
Ltd. (hereinafter referred
to as Jinan Jinke)	49.00%	-18,707,005.11	—	456,710,094.87
Chongqing Jinke Hexu Real
Estate Development Co.,
Ltd. (hereinafter referred
to as Hexu Real Estate)	49.00%	-6,467,150.28	—	286,633,643.08

1. Main financial information of significant non-wholly owned subsidiaries

2. (1) Assets and liabilities

Unit: RMB’0,000

Amount at the end of the period

	Current	Non-current		Current	Non-current	Total
Subsidiary name	assets	assets	Total assets	liabilities	liabilities	liabilities
Hejun Real Estate	158,756.19	3,864.50	162,620.69	150,925.35	183.15	151,108.50
Zhongjun Real Estate	398,029.78	3,450.56	401,480.34	201,925.26	95,000.00	296,925.26
Jinan Jinke	338,279.68	2,506.37	340,786.05	177,579.91	70,000.00	247,579.91
Hexu Real Estate	152,002.23	840.42	152,842.65	54,342.28	40,003.70	94,345.98

— 126 —

APPENDIX II

FINANCIAL INFORMATION OF JINKE PROPERTY

		**Amount **	at the beginning of the period	at the beginning of the period	at the beginning of the period
	Current	Non-current		Current	Non-current	Total
Subsidiary name	assets	assets	Total assets	liabilities	liabilities	liabilities
Hejun Real Estate	130,053.42	1,657.02	131,710.44	132,430.69	—	132,430.69
Zhongjun Real Estate	211,330.99	899.78	212,230.77	111,667.10	43,000.00	154,667.10
Jinan Jinke	258,238.68	1,226.04	259,464.72	152,440.82	10,000.00	162,440.82
Hexu Real Estate	86,231.51	64.56	86,296.07	26,479.58	—	26,479.58

• (2) Gains/losses and cash flows

Unit: RMB’0,000

	**Amount in the **	**Amount in the **	current period	current period	**Amount in **	the same period of preceding year	the same period of preceding year	the same period of preceding year
				Cash flows				Cash flows
			Total	from			Total	from
	Operating	comprehensive		operating	Operating	comprehensive		operating
Subsidiary name	revenue	Net profit	income	activities	revenue	Net profit	income	activities
Hejun Real Estate	60,000.97	11,194.59	11,194.59	1,743.34	15.63	-1,676.53	-1,676.53	15,315.08
Zhongjun Real
Estate	23.09	-2,008.58	-2,008.58	-64,755.05	0.01	-1,256.52	-1,256.52	-84,825.48
Jinan Jinke	15.34	-3,817.76	-3,817.76	-55,459.68	—	-2,879.48	-2,879.48	-99,424.12
Hexu Real Estate	7.37	-1,319.83	-1,319.83	-23,826.45	—	-183.51	-183.51	-9,679.68

• (II) Control over subsidiaries’ transactions despite change in owners’ equity in subsidiaries

• Descriptions of change in owners’ equity in subsidiaries

		Shareholding	Shareholding
		percentage	percentage
Subsidiary name	Change time	before change	after change
Chongqing Bishan Jinke Zhongxi Real Estate Co.,
Ltd. (hereinafter referred to as Zhongxi Real
Estate)	May 2014	55.56%	100.00%
Chongqing Jinke Junwei Real Estate Development
Co., Ltd. (hereinafter referred to as Jinke Junwei)	April 2014	100.00%	60.00%
Chongqing Jinke Junyao Real Estate Development
Co., Ltd. (hereinafter referred to as Junyao Real
Estate)	May 2014	55.56%	100.00%
Shaanxi Haoyuefu Real Estate Development Co.,
Ltd. (hereinafter referred to as Haoyuefu Real
Estate)	June 2014	90.00%	100.00%

— 127 —

APPENDIX II

FINANCIAL INFORMATION OF JINKE PROPERTY

1. Impact of transactions on minority interests and equity attributable to owners of the parent company

Item Acquisition cost/disposal consideration Cash Total acquisition cost/disposal consideration Less: Share in net assets of subsidiaries calculated in proportion to the equity acquired/disposed Difference Including: Adjusted capital reserve Adjusted surplus reserve	Zhongxi Real Estate 240,000,000.00 240,000,000.00 124,452,511.93 -115,547,488.07 — -115,547,488.07	Jinke Junwei 320,000,000.00 320,000,000.00 319,946,595.64 53,404.36 53,404.36 —	Junyao Real Estate Haoyuefu Real Estate 511,815,355.59 2,000,000.00 511,815,355.59 2,000,000.00 286,793,781.62 1,140,345.50 -225,021,573.97 -859,654.50 -71,102,893.79 — -153,918,680.18 -859,654.50	Junyao Real Estate Haoyuefu Real Estate 511,815,355.59 2,000,000.00 511,815,355.59 2,000,000.00 286,793,781.62 1,140,345.50 -225,021,573.97 -859,654.50 -71,102,893.79 — -153,918,680.18 -859,654.50
				-859,654.50

• (III) Interests in joint ventures or associated enterprises

• Significant joint ventures or associated enterprises

							Accounting for
							investment in
				Shareholding			joint venture or
Name of joint venture or	Principal	Place of	Business	percentage (%)			associated
associated enterprise	operating base	registration	nature	Direct	Indirect		enterprise
USUM Investment Group Co.,	Chongqing	Beibei District,	Investment,	—	3.248		Equity method
Ltd. (hereinafter referred to		Chongqing	construction				[note]
as USUM Investment
Group)
Chongqing Yinhai Finance	Chongqing	Beibu New	Similar	5.51		—	Equity method
Leasing Co., Ltd.		District,	financial				[note]
(hereinafter referred to as		Chongqing	industry
Yinhai Finance Leasing)

• [Note] The Company has appointed representatives to the Boards of Directors of USUM Investment Group and Yinhai Finance Leasing and therefore has the right to participate in deciding financial and operating policies of USUM Investment Group and Yinhai Finance Leasing and has material impact on USUM Investment Group and Yinhai Finance Leasing.

— 128 —

FINANCIAL INFORMATION OF JINKE PROPERTY

APPENDIX II

1. Main financial information of significant associated enterprises

Unit: RMB’0,000

			Amount at the beginning of	Amount at the beginning of
	Amount at the end of the		the period/amount in the
	**period/amount in **	the current	**same period of **	preceding
	period		year
	USUM	Yinhai	USUM	Yinhai
	Investment	Finance	Investment	Finance
Item	Group	Leasing	Group	Leasing
Current assets	343,170.37	207,993.04	356,726.76	175,117.73
Non-current assets	32,601.22	176,169.00	3,791.41	123,634.59
Total assets	375,771.59	384,162.04	360,518.17	298,752.32
Current liabilities	25,766.69	108,513.45	42,371.69	46,598.61
Non-current liabilities	207.74	131,212.52	151.26	117,975.92
Total liabilities	25,974.43	239,725.97	42,522.95	164,574.53
Minority interests
Equity attributable to owners of the
parent company	349,797.16	144,436.07	317,995.22	134,177.79
Proportionate share in net assets	11,361.41	7,958.43	57,926.01	7,393.20
Adjustments
Goodwill	—	—	—	—
Unrealized profit of internal
transaction	—	—	—	—
Others	—	—	—	—
Book value of equity investments in
associated enterprises	11,361.41	7,958.43	57,926.01	7,393.20
Fair value of equity investments in
associated enterprises with quoted
price	—	—	—	—
Operating revenue	44,311.01	26,096.38	13,807.57	22,136.99
Net profit	33,133.07	17,058.27	10,135.22	8,777.93
Net profit from discontinued
operation	—	—	—	—
Other comprehensive income	—	—	—	—
Total comprehensive income	33,133.07	17,058.27	10,135.22	8,777.93
Dividend received from associated
enterprises in the current period	—	446.11	—	—

— 129 —

FINANCIAL INFORMATION OF JINKE PROPERTY

APPENDIX II

1. Summary financial information of insignificant joint ventures and associated enterprises

		Amount at the
	Amount at the end	beginning of the
	of the	period/amount in
	period/amount in	the same period of
Item	the current period	preceding year
Joint ventures
Total book value of investments	9,994,505.08	8,987,076.59
Total of the following items calculated as per the
shareholding percentage	-758,079.17	-1,012,923.41
Net profit	-758,079.17	-1,012,923.41
Other comprehensive income
Total comprehensive income	-758,079.17	-1,012,923.41
Associated enterprises
Total book value of investments	133,581,850.12	142,819,753.28
Total of the following items calculated as per the
shareholding percentage	-9,237,903.16	-41,361,642.87
Net profit	-9,237,903.16	-41,361,642.87
Other comprehensive income
Total comprehensive income	-9,237,903.16	-41,361,642.87

VIII.Risks related to financial instruments

The Company carries out risk management for the purpose of seeking an appropriate balance between the risks and revenues, minimizing the negative impact from risks on the Company’s operating results and maximizing the interests of shareholders and other equity investors. Based on such objectives, the Company’s risk management policies are established to identify and analyze the risks faced by the Company, to set appropriate risk bottom line and controls, and to supervise various risks in prompt and reliable manner so as to control the risks within a limited range.

The Company is exposed to the following risks from its use of financial instruments in the daily operation, which mainly include credit risk, liquidity risk and market risk. The management has deliberated and approved policies concerning management of such risks, as summarized below.

(I) Credit risk

Credit risk is the risk that one party to a financial instrument fails to fulfill the obligations, thereby causing financial loss to the other party.

The Company’s credit risk is primarily attributable to bank balances and receivables. To control the aforesaid related risks, the Company takes the following measures respectively.

— 130 —

FINANCIAL INFORMATION OF JINKE PROPERTY

APPENDIX II

1. Bank balances

The Company deposits its bank balances in financial institutions with good credit rating, so its credit risk is low.

1. Receivables

The Company has established a sound receivables risk management and internal control system to regularly assess customers’ credit and monitor balance of receivables therefrom, and strictly implements the receivables collection procedure, to avoid significant risks in bad debts.

As at 31 December 2014, 18.95% of the Company’s accounts receivable (31 December 2013: 29.18%) was due from the top five customers in balance, and the Company did not have major credit concentration risk.

• (1) Amount of the Company’s receivables which have neither been overdue nor impaired and those which have been overdue but unimpaired and relevant aging analysis are as follows:

		**Amount at the end of the **	**Amount at the end of the **	period
	Receivables
	neither overdue	Receivables overdue but unimpaired
Item	nor impaired	Within 1 year	1-2 years	**Above 2 **	years	Total
Other receivables	525,174,875.62	—	—		—	525,174,875.62
Subtotal	525,174,875.62	—	—		—	525,174,875.62
		**Amount at the **	**beginning of **	the period
	Receivables
	neither overdue	Receivables overdue but unimpaired
Item	nor impaired	Within 1 year	1-2 years	**Above 2 **	years	Total
Other receivables	599,018,647.68	—	—		—	599,018,647.68
Subtotal	599,018,647.68	—	—		—	599,018,647.68

• (2) For receivables with provision for impairment withdrawn on an individual basis, please refer to receivables in the notes to the consolidated financial statements in the Notes to the Financial Statements.

(II) Liquidity risk

Liquidity risk is the risk of capital shortage incurred when the Company performs the obligation of cash or other financial assets settlement and is possibly attributable to failure in selling financial assets at fair value on a timely basis, or failure in collecting liabilities from counterparts to contracts, or early redemption of debts, or failure in generating estimated cash flows.

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FINANCIAL INFORMATION OF JINKE PROPERTY

To control such risk, the Company leveraged financing tools such as note settlement, bank borrowings, trust borrowing, etc., and appropriately adopted long/short-term financing methods to improve the financing structure, and maintained a balance between financing sustainability and flexibility. The Company has obtained bank credit limits from several commercial banks and trust institutions to satisfy working capital requirements and expenditures.

Financial liabilities classified based on remaining time period till maturity Unit: RMB’0,000

		**Amount at the end of the **	**Amount at the end of the **	period
		Undiscounted
		contract
Item	Book value	amount	Within 1 year	1-3 years	Above 3 years
Borrowings	3,363,919.96	3,742,996.76	2,459,179.29	1,136,938.09	146,879.38
Notes payable	136,165.13	136,165.13	136,165.13	—	—
Accounts payable	717,454.86	717,454.86	717,454.86	—	—
Other payables	259,564.91	259,564.91	255,564.91	4,000.00	—
Subtotal	4,477,104.86	4,856,181.66	3,568,364.19	1,140,938.09	146,879.38

Amount at the beginning of the period

		Undiscounted
		contract
Item	Book value	amount	Within 1 year	1-3 years	Above 3 years
Borrowings	2,230,951.47	2,512,220.16	691,585.49	1,686,212.22	134,422.45
Notes payable	166,745.16	166,745.16	166,745.16	—	—
Accounts payable	467,623.94	467,623.94	467,623.94	—	—
Other payables	337,755.79	337,755.79	337,755.79	—	—
Subtotal	3,203,076.36	3,484,345.05	1,663,710.38	1,686,212.22	134,422.45

(III) Market risk

Market risk refers to the risk that the fair value or future cash flow of a financial instrument fluctuates because of change in market price. Market risks mainly include interest rate risk and foreign exchange risk.

1. Interest rate risk

Interest rate risk is the risk that the fair value or future cash flow of a financial instrument fluctuates because of change in market interest rate. The Company’s market interest rate risk mainly relates to the Company’s borrowings with interest calculated at floating interest rate. As at 31 December 2014, the Company’s borrowings with interest calculated at floating interest rate amounted to RMB11,218,600,000 (31 December 2013: RMB11,755,734,700); supposed that other variations remain unchanged and interest rate increases/decreases 50 bps, the Company’s interest expense will increase/decrease by RMB56,093,000 (31 December 2013: increase/decrease by RMB58,778,700) accordingly.

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APPENDIX II

1. Foreign currency risk

Foreign currency risk is the risk that the fair value or future cash flow of a financial instrument fluctuates because of change in exchange rate. The Company’s exchange rate risk mainly relates to the Company’s foreign currency monetary assets and liabilities. For the Company’s foreign currency monetary assets and liabilities at the end of the period, please refer to foreign currency monetary items in others in the notes to the consolidated financial statements in the Notes to the Financial Statements.

IX. Disclosure of fair value

• (I) Details of the fair value of assets and liabilities measured at fair value at the end of the period

		**Fair value at the **	end of the period
	Level 1 fair value	Level 2 fair value	Level 3 fair value
Item	measurement	measurement	measurement	Total
Recurring fair value
measurement
Investment properties		2,905,436,061.00		2,905,436,061.00
Buildings rented		2,905,436,061.00		2,905,436,061.00

• (II) Qualitative and quantitative information of evaluation techniques and important parameters for recurring and non-recurring level 2 fair value measurements

The buildings rented out by the Company are all commercial properties and supporting garages thereof, and their costs are insufficient to reflect the fair value thereof, so evaluation is not carried out by cost method; according to the actual condition of the buildings rented, for small commercial properties, as the transaction markets around them are active and it is easy to find transaction cases of similar properties, evaluation is carried out by market method; for large commercial properties for which it is difficult to find relevant transaction cases, as the lease markets of similar properties around them are active and some buildings rented are restricted by long-term lease contracts, evaluation is carried out by income method.

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APPENDIX II

• X. Connected parties and connected transactions

• (I) Connected parties

• The Company’s parent company

• (1) The Company’s parent company

					Voting
				Shareholding	right
				percentage	percentage
			Registered	over the	over the
		Business	capital	Company	Company
Name of parent company	Place of registration	nature	(RMB’0000)	(%)	(%)
Chongqing Jinke Investment	No. 88, Xingyi South	Investment	5,000	18.34	18.34
Holding (Group) Co., Ltd.	Road, Yihe Town,	consulting
	Fuling District,
	Chongqing

• [Note] As at 31 December 2014, Chongqing Jinke Investment Holdings (Group) Co., Ltd. (hereinafter referred to as Jinke Investment), Huang Hongyun and Tao Hongxia severally held 18.34%, 14.95% and 7.28% shares of the Company and were the top three shareholders of the Company; Huang Hongyun and his wife Tao Hongxia jointly held 100% shares of Jinke Investment, which was the controlling shareholder of the Company, and were the effective controllers of the Company.

• (2) The ultimate controllers of the Company are Huang Hongyun and his wife Tao Hongxia.

• For details about the Company’s subsidiaries, please refer to interests in other entities in the Notes to the Financial Statements

• Joint ventures and associated enterprises of the Company: for details about the Company’s significant associated enterprises, please refer to interests in other entities in the Notes to the Financial Statements. Information on other joint ventures or associated enterprises with balance formed through its connected transactions with the Company in the current and prior periods is as follows:

Name of joint venture or associated enterprise

Relation with the Company

Yunnan Jinwanzhong Real Estate Development Co., Ltd. Joint venture (hereinafter referred to as Jinwanzhong Real Estate)

• Chongqing Zhanhe Agriculture Development Co., Ltd. (hereinafter referred to as Zhanhe Agriculture)

• Wujiang Jinke Yangzi Real Estate Development Co., Ltd. (hereinafter referred to as Wujiang Jinke Yangzi)

Associated enterprise

Associated enterprise

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APPENDIX II

1. Other connected parties of the Company

Name of other connected party

Relation between other connected party and the Company

• Chongqing Zhongke Construction (Group) Co., Ltd. (hereinafter referred to as Zhongke Group)

Shareholder’s subsidiary

• Chongqing Jianglong Construction Engineering Co., Ltd. (hereinafter referred to as Jianglong Construction)

Shareholder’s subsidiary

• Chongqing Shenlong Construction Engineering Co., Ltd. (hereinafter referred to as Shenlong Construction)

Shareholder’s subsidiary

• Chongqing Red Star Macalline Shibo Furniture Hall Co., Ltd. (hereinafter referred to as Red Star Macalline)

Company controlled by the effective controller of the shareholder entity

• Shenzhen Pingan Dahua Huitong Wealth Management Co., Ltd. (hereinafter referred to as Pingan Dahua)

Company controlled by the controlling shareholder of the shareholder entity

• (II) Connected transactions

• Purchase and sale of commodities, and provision and acceptance of labor service

• (1) Details

• 1) Purchase of commodities and acceptance of labor service

Amount in the Content of connected Amount in the same period of Connected party transaction current period preceding year China Sciences Group Acceptance of labor service 23,330,316.34 Zhanhe Agriculture Purchase of commodities 58,000.00

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FINANCIAL INFORMATION OF JINKE PROPERTY

APPENDIX II

• 2) Sale of commodities and provision of labor service

			Amount in the
	Content of connected	Amount in the	same period of
Connected party	transaction	current period	preceding year
China Sciences Group	Provision of labor service	425,629.70	786,550.20
Zhanhe Agriculture	Provision of labor service		1,324,681.28
USUM Investment Group	Provision of labor service	197,991.38	4,515,572.47
Jinke Xinhaihui [note]	Provision of labor service		3,462.00
Wujiang Jinke Yangzi	Provision of labor service	3,641,406.43	2,488,015.65
Jinke Investment	Sale of commodities and	33,537,999.00
	provision of labor service

• [Note] As the subsidiary Chongqing Jinke acquired effective control over Jinke Xinhaihui in the current period, Jinke Xinhaihui changed from a joint venture to a subsidiary incorporated in the scope of the consolidated financial statements as from May 2015. For details, please refer to the long-term equity investment in the notes to the consolidated financial statements in the Notes to the Financial Statements.

2. Rental with connected parties

Red Star Macalline rented in from the Company the Red Star Macalline Furniture Plaza with a floor area of 106,927.62 m[2] at No. 888 Xinnan Road, Tiangongdian Street, Yubei District, Chongqing, with a rental term from 1 July 2006 to 31 December 2026, and the rental revenue generated by the Company in the current period was RMB39,685,886.52.

1. Guarantee with connected parties

2. (1) Details

3. 1) The Company and subsidiaries as the guaranteed parties

				Whether the
	Guaranteed	Commencement		guarantee has
Guarantor	amount	date	Maturity date	been fulfilled
Jinke Investment, Huang Hongyun	140,000,000.00	2014-6-18	2017-5-18	No
Jinke Investment, Huang Hongyun	300,000,000.00	2014-5-20	2017-5-18	No
Jinke Investment, Huang Hongyun	150,000,000.00	2013-9-18	2015-9-16	No
Jinke Investment	40,000,000.00	2014-1-27	2015-12-28	No
Jinke Investment	32,000,000.00	2014-3-27	2015-1-15	No
Jinke Investment	36,000,000.00	2014-5-23	2015-7-30	No
Jinke Investment	33,000,000.00	2014-10-13	2015-12-28	No

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				Whether the
	Guaranteed	Commencement		guarantee has
Guarantor	amount	date	Maturity date	been fulfilled
Jinke Investment	30,000,000.00	2014-11-27	2016-9-22	No
Jinke Investment, Huang Hongyun,	480,000,000.00	2014-3-28	2016-3-27	No
Tao Hongxia
Jinke Investment, Huang Hongyun,	300,000,000.00	2013-3-29	2015-3-29	No
Tao Hongxia
Jinke Investment, Huang Hongyun,	430,000,000.00	2013-9-27	2018-9-28	No
Tao Hongxia
Huang Hongyun, Tao Hongxia	300,000,000.00	2014-8-29	2015-8-28	No
Huang Hongyun, Tao Hongxia	1,000,000,000.00	2014-8-29	2016-8-28	No
Jinke Investment	150,000,000.00	2013-3-21	2015-3-4	No
Jinke Investment	100,000,000.00	2013-3-22	2015-3-4	No
Jinke Investment	27,000,000.00	2013-1-11	2015-1-8	No
Jinke Investment, Huang Hongyun,	5,000,000.00	2013-10-14	2016-9-29	No
Tao Hongxia [note]
Jinke Investment, Huang Hongyun,	50,000,000.00	2014-4-30	2016-9-29	No
Tao Hongxia [note]
Jinke Investment, Huang Hongyun,	255,000,000.00	2014-7-1	2016-9-29	No
Tao Hongxia [note]
Jinke Investment, Huang Hongyun,	80,000,000.00	2014-7-2	2016-9-29	No
Tao Hongxia [note]
Jinke Investment, Huang Hongyun,	10,000,000.00	2014-1-16	2016-9-29	No
Tao Hongxia [note]
Jinke Investment	400,000,000.00	2014-4-21	2016-6-20	No
Jinke Investment, Huang Hongyun,	300,000,000.00	2013-7-30	2015-7-29	No
Tao Hongxia
Jinke Investment	399,900,000.00	2013-2-28	2015-2-27	No
Jinke Investment, Huang Hongyun,	252,800,000.00	2014-8-8	2016-8-7	No
Tao Hongxia
Jinke Investment, Huang Hongyun,	147,600,000.00	2014-8-22	2016-8-21	No
Tao Hongxia
Jinke Investment, Huang Hongyun,	300,000,000.00	2014-7-28	2016-7-27	No
Tao Hongxia
Jinke Investment, Huang Hongyun,	70,700,000.00	2014-9-5	2016-6-4	No
Tao Hongxia
Jinke Investment, Huang Hongyun,	31,700,000.00	2014-8-28	2016-8-27	No
Tao Hongxia
Jinke Investment, Huang Hongyun,	216,300,000.00	2014-8-29	2016-2-28	No
Tao Hongxia
Jinke Investment, Huang Hongyun,	200,000,000.00	2014-7-28	2016-7-27	No
Tao Hongxia

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				Whether the
	Guaranteed	Commencement		guarantee has
Guarantor	amount	date	Maturity date	been fulfilled
Jinke Investment, Huang Hongyun,	114,000,000.00	2014-9-19	2016-9-18	No
Tao Hongxia
Jinke Investment, Huang Hongyun,	197,600,000.00	2014-10-17	2016-7-16	No
Tao Hongxia
Jinke Investment, Huang Hongyun,	176,800,000.00	2014-9-26	2016-3-25	No
Tao Hongxia
Jinke Investment, Huang Hongyun,	200,000,000.00	2014-10-13	2016-7-12	No
Tao Hongxia
Jinke Investment, Huang Hongyun,	80,000,000.00	2014-10-13	2016-10-12	No
Tao Hongxia
Jinke Investment, Huang Hongyun,	228,200,000.00	2014-5-29	2016-2-29	No
Tao Hongxia
Jinke Investment, Huang Hongyun,	277,500,000.00	2014-6-20	2016-2-29	No
Tao Hongxia
Jinke Investment, Huang Hongyun,	100,000,000.00	2014-7-10	2016-2-29	No
Tao Hongxia
Jinke Investment, Huang Hongyun,	400,000,000.00	2014-7-18	2016-7-17	No
Tao Hongxia
Jinke Investment, Huang Hongyun,	319,200,000.00	2014-7-17	2016-2-29	No
Tao Hongxia
Jinke Investment, Huang Hongyun,	283,700,000.00	2014-7-24	2016-2-29	No
Tao Hongxia
Jinke Investment, Huang Hongyun,	135,600,000.00	2014-8-25	2016-7-17	No
Tao Hongxia
Jinke Investment, Huang Hongyun,	126,500,000.00	2014-8-28	2016-7-17	No
Tao Hongxia
Jinke Investment, Huang Hongyun,	159,400,000.00	2014-9-17	2016-7-17	No
Tao Hongxia
Jinke Investment, Huang Hongyun,	50,000,000.00	2014-4-29	2015-4-29	No
Tao Hongxia
Jinke Investment, Huang Hongyun,	450,000,000.00	2014-4-29	2016-4-29	No
Tao Hongxia
Jinke Investment, Huang Hongyun,	399,770,000.00	2014-1-8	2016-1-8	No
Tao Hongxia
Jinke Investment, Huang Hongyun,	299,720,000.00	2014-1-13	2016-1-13	No
Tao Hongxia
Jinke Investment, Huang Hongyun,	299,770,000.00	2014-1-17	2016-1-17	No
Tao Hongxia
Jinke Investment	439,900,000.00	2014-5-30	2016-5-30	No
Jinke Investment	60,100,000.00	2014-7-21	2016-7-21	No

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				Whether the
	Guaranteed	Commencement		guarantee has
Guarantor	amount	date	Maturity date	been fulfilled
Jinke Investment, Huang Hongyun,	130,120,000.00	2014-4-3	2016-4-3	No
Tao Hongxia
Jinke Investment, Huang Hongyun,	169,880,000.00	2014-4-22	2016-4-22	No
Tao Hongxia
Jinke Investment, Huang Hongyun	150,000,000.00	2014-1-10	2015-7-9	No
Jinke Investment, Huang Hongyun,	100,000,000.00	2014-5-27	2016-5-27	No
Tao Hongxia
Jinke Investment, Huang Hongyun,	8,000,000.00	2014-7-21	2016-7-21	No
Tao Hongxia
Jinke Investment, Huang Hongyun,	500,000,000.00	2014-5-15	2016-5-14	No
Tao Hongxia
Huang Hongyun	400,000,000.00	2014-7-18	2016-7-18	No
Jinke Investment, Huang Hongyun,	197,000,000.00	2014-7-16	2016-7-15	No
Tao Hongxia
Jinke Investment, Huang Hongyun,	163,300,000.00	2014-7-25	2016-7-24	No
Tao Hongxia
Jinke Investment, Huang Hongyun,	199,500,000.00	2014-8-6	2016-8-5	No
Tao Hongxia
Jinke Investment, Huang Hongyun,	171,500,000.00	2014-8-13	2016-8-12	No
Tao Hongxia
Huang Hongyun, Tao Hongxia	140,000,000.00	2013-2-28	2015-2-28	No
Jinke Investment	440,000,000.00	2013-9-24	2015-9-24	No
Huang Hongyun, Tao Hongxia	400,000,000.00	2013-9-26	2015-9-25	No
Jinke Investment, Huang Hongyun,	800,000,000.00	2014-3-20	2016-3-20	No
Tao Hongxia
Huang Hongyun, Tao Hongxia	300,000,000.00	2014-6-26	2016-6-25	No
Jinke Investment, Huang Hongyun,	200,000,000.00	2013-12-9	2015-12-9	No
Tao Hongxia
Jinke Investment, Huang Hongyun,	100,000,000.00	2014-1-23	2015-1-22	No
Tao Hongxia
Jinke Investment, Huang Hongyun,	50,000,000.00	2014-6-24	2015-6-23	No
Tao Hongxia
Jinke Investment	50,000,000.00	2014-2-14	2015-2-14	No
Jinke Investment	130,000,000.00	2014-1-20	2015-1-29	No
Jinke Investment, Huang Hongyun,	200,000,000.00	2014-1-23	2015-1-22	No
Tao Hongxia
Jinke Investment, Huang Hongyun,	100,000,000.00	2014-6-24	2015-6-23	No
Tao Hongxia
Jinke Investment, Huang Hongyun,	150,000,000.00	2014-6-24	2015-6-23	No
Tao Hongxia

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				Whether the
	Guaranteed	Commencement		guarantee has
Guarantor	amount	date	Maturity date	been fulfilled
Jinke Investment, Huang Hongyun,	100,000,000.00	2014-6-25	2015-6-24	No
Tao Hongxia
Jinke Investment, Huang Hongyun	490,000,000.00	2014-4-30	2016-4-28	No
Jinke Investment, Huang Hongyun,	100,000,000.00	2014-3-12	2017-3-12	No
Tao Hongxia
Jinke Investment, Huang Hongyun,	200,000,000.00	2014-3-24	2017-3-12	No
Tao Hongxia
Jinke Investment, Huang Hongyun,	20,000,000.00	2014-4-30	2017-3-12	No
Tao Hongxia
Jinke Investment, Huang Hongyun,	40,000,000.00	2014-4-30	2017-3-12	No
Tao Hongxia
Jinke Investment, Huang Hongyun,	60,000,000.00	2014-5-30	2017-3-12	No
Tao Hongxia
Jinke Investment, Huang Hongyun,	20,000,000.00	2014-6-24	2017-3-12	No
Tao Hongxia
Jinke Investment, Huang Hongyun,	40,000,000.00	2014-7-25	2017-3-12	No
Tao Hongxia
Jinke Investment, Huang Hongyun	26,000,000.00	2014-7-3	2015-1-3	No
Jinke Investment, Huang Hongyun	30,000,000.00	2014-8-26	2015-2-26	No
Jinke Investment, Huang Hongyun,	70,000,000.00	2014-7-3	2015-1-3	No
Tao Hongxia
Jinke Investment	100,000,000.00	2014-8-13	2015-2-13	No
Jinke Investment, Huang Hongyun,	50,000,000.00	2014-8-13	2015-2-13	No
Tao Hongxia
Jinke Investment, Huang Hongyun	50,000,000.00	2014-8-14	2015-2-14	No
Jinke Investment, Huang Hongyun	24,000,000.00	2014-7-3	2015-1-3	No
Jinke Investment	50,000,000.00	2014-8-11	2015-2-11	No
Jinke Investment, Huang Hongyun,	40,000,000.00	2014-8-6	2015-2-6	No
Tao Hongxia
Jinke Investment, Huang Hongyun	180,000,000.00	2014-9-10	2015-3-10	No
Jinke Investment, Huang Hongyun	180,000,000.00	2014-9-12	2015-3-12	No
Jinke Investment, Huang Hongyun,	185,000,000.00	2013-4-2	2015-4-3	No
Tao Hongxia
Jinke Investment, Huang Hongyun,	400,000,000.00	2014-2-15	2016-2-14	No
Tao Hongxia

[Note] In the meantime, the Company’s controlling shareholder Jinke Investment pledged its 50 million tradable shares of the Company with sale limitations.

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FINANCIAL INFORMATION OF JINKE PROPERTY

• (2) In the current period, the Company’s controlling shareholder Jinke Investment and effective controllers Huang Hongyun and Tao Hongxia provided guarantee for the Company’s financing. The two companies, according to market practice and the extent of risk of several or joint provision of guarantee, negotiated that the guarantee fee should be paid at a guarantee fee rate not more than 1%. In the current period, the Company settled and paid a financing guarantee fee of RMB25 million to Jinke Investment on a cumulative basis.

• Call loans with connected parties

• (1) According to the loan agreements severally signed by the Company and subsidiaries thereof with the controlling shareholder Jinke Investment, Jinke Investment provided credit loans to the Company and subsidiaries thereof, by charging capital occupation fees at an annual interest rate of 10.90%. In the current period, the Company and subsidiaries thereof cumulatively paid the loan principal of RMB222 million and settled the capital occupation fee of RMB5,444,300 payable to Jinke Investment and paid the capital occupation fee of RMB9,081,500. As at 31 December 2014, the call loan principal of the Company and subsidiaries thereof with Jinke Investment and relevant capital occupation fees had been settled.

• (2) According to the financing leasing contract signed by the subsidiary Qingke Trading and Chongqing Yinhai Finance Leasing Co., Ltd. (hereinafter referred to as Yinhai Finance Leasing), Qingke Trading borrowed RMB200 million from Yinhai Finance Leasing through financing, with a contract period of two years and the annual comprehensive capital cost of 9.90%. The capital occupation fee payable to Yinhai Finance Leasing as settled in the current period was RMB18,839,600, and the capital occupation fee of RMB18,839,600 was paid; Qingke Trading cumulatively paid the call loan principal of RMB15 million. The Company’s controlling shareholder Jinke Investment and its effective controller Huang Hongyun provided a guarantee with joint liability for the call loan.

According to the Entrusted Loan Contract of Bank of Chongqing signed by the Company, Yinhai Finance Leasing and the Business Department of Bank of Chongqing Co., Ltd. (hereinafter referred to as Business Department of Bank of Chongqing), Yinhai Finance Leasing provided the Company with an entrusted loan of RMB150 million through the Business Department of Bank of Chongqing, with a contract period of 18 months and the annual comprehensive capital cost of 9.95%. The interest for the entrusted loan payable to Yinhai Finance Leasing as settled in the current period was RMB16,551,800, and the interest for the entrusted loan of RMB16,391,300 was paid. The Company’s controlling shareholder Jinke Investment and its effective controller Huang Hongyun provided a guarantee with joint liability for the entrusted loan.

• (3) Wujiang Jinke Yangzi was no longer incorporated in the scope of the consolidated financial statements as from November 2013 and changed from a subsidiary incorporated in the scope of the consolidated financial statements to an associated enterprise. According to the Supplemental Agreement on Project Cooperative Development signed by the subsidiary Jiangyin Jinke Real Estate Development Co., Ltd. (hereinafter referred to as Jiangyin Jinke), Jiangsu Hengyuan Real Estate Development Co., Ltd. (hereinafter referred to as Jiangsu Hengyuan) and Wujiang Jinke Yangzi, Jiangyin Jinke provided a loan of RMB296 million to Wujiang Jinke Yangzi (before

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FINANCIAL INFORMATION OF JINKE PROPERTY

December 2011), by charging capital occupation fees at an annual interest rate of 7%. In the current period, Jiangyin Jinke received the loan principal of RMB296 million paid by Wujiang Jinke Yangzi, and the capital occupation fee receivable but unpaid in the current period was RMB16,460,900.

• (4) According to the Cooperative Development Agreement signed by the subsidiary Chengdu Jinke Real Estate Development Co., Ltd. and USUM Investment Group, USUM Investment Group provided, as per the shareholding percentage, RMB105 million shareholders’ loan to Neijiang Jinke Hongjun Real Estate Development Co., Ltd. (hereinafter referred to as Neijiang Hongjun), by charging capital occupation fees at an annual interest rate of 12%. Neijiang Hongjun should pay a total capital occupation fee of RMB14,194,000 to USUM Investment Group.

• (5) According to the Cooperation Framework Agreement signed by the Company, Jinke Xinhaihui and Pingan Dahua, Pingan Dahua set up the special assets management scheme to raise funds in installments and entrusted the Business Department of Chongqing Rural Commercial Bank Co., Ltd. (hereinafter referred to as Chongqing Rural Commercial Bank) to issue the proceeds as entrusted loans to Jinke Xinhaihui in installments, and the loan amount should not exceed RMB780 million (subject to the amount actually issued), with a loan period of 24 months calculated as from the date of setup and the annual comprehensive capital cost of not more than 9%; the exceeding part (i.e. 3.50%) should be fully borne by the minority shareholders of Jinke Xinhaihui. As at 31 December 2014, Chongqing Rural Commercial Bank had cumulatively issued entrusted loans totaling RMB731.3 million to Jinke Xinhaihui as entrusted by Pingan Dahua. The Company’s controlling shareholder Jinke Investment and its effective controllers Huang Hongyun and his wife Tao Hongxia provided a guarantee with joint liability for the entrusted loans, and the minority shareholders of Jinke Xinhaihui provided counter-guarantee with their combined 49% equity in Jinke Xinhaihui.

According to the Cooperation Framework Agreement signed by the Company and relevant subsidiaries and Pingan Dahua, Pingan Dahua set up the special assets management scheme to raise funds in installments and entrusted Chongqing Rural Commercial Bank to issue the proceeds as entrusted loans to the Company in two installments, and the loan amount should not exceed RMB2,500 million (subject to the amount actually issued), with the first installment loan period of 21 months and second installment loan period of 24 month and the annual comprehensive capital cost of 11.45%. As at 31 December 2014, Chongqing Rural Commercial Bank had cumulatively issued entrusted loans totaling RMB2,030.1 million to the Company as entrusted by Pingan Dahua. The Company’s controlling shareholder Jinke Investment and its effective controllers Huang Hongyun and his wife Tao Hongxia provided a guarantee with joint liability for the entrusted loans.

According to the Cooperation Framework Agreement signed by the Company and Pingan Dahua, Pingan Dahua set up the special assets management scheme to raise funds in installments and entrusted Chengdu Century Chaoyang Subbranch of China Merchants Bank Co., Ltd. (hereinafter referred to as Chaoyang Subbranch of CMBC) to issue the proceeds as entrusted loans to the Company in eight installments, and the loan amount should not exceed RMB2,000 million (subject to the amount actually issued), with the first to fourth installment loan periods of 24 months each, five to six installment loan periods of 21 months each, and seven to eight installment loan periods of 18 months each and the annual comprehensive capital cost of 11.45%. As at 31 December 2014, Chaoyang

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FINANCIAL INFORMATION OF JINKE PROPERTY

Subbranch of CMBC had cumulatively issued entrusted loans totaling RMB1,987.5 million to the Company as entrusted by Pingan Dahua. The Company’s controlling shareholder Jinke Investment and its effective controllers Huang Hongyun and his wife Tao Hongxia provided a guarantee with joint liability for the entrusted loans.

5. Fulfillment of commitments by connected parties

According to the Agreement and the Supplemental Agreement signed by the company (formerly Chongqing Jinke Industrial (Group) Co., Ltd.) and Chongqing Jiayihua Technology Industrial Co., Ltd. (hereinafter referred to as Jiayihua Company), the company cumulatively paid Jiayihua Company RMB300 million as cooperation funds for land reclamation. The company recovered RMB110 million in 2011 and RMB80 million in the first half of 2014. As at 21 September 2014, the remaining debt was RMB110 million. Jinke Investment, and Huang Hongyun and Tao Hongxia severally issued the Commitment Regarding Risks from Recovering Receivables from Chongqing Jiayihua Technology Industrial Co., Ltd. and the Supplemental Commitment in 2009 when the Company merged with material assets of Chongqing Industrial (Group) Co., Ltd. with new shares and in 2012, and if before 23 September 2014 the company could not recover or fully recover the aforesaid cooperation funds for land reclamation, the resulting losses and relevant expenses should be jointly borne by Jinke Investment, Huang Hongyun and Tao Hongxia unconditionally and be paid to the company within 10 workdays after the expiry date. On 22 September 2014, the Company received the aforesaid remaining debt of RMB110 million paid by Jinke Investment to fulfill its commitment.

(III) Receivables from and payables to the connected parties

1. Receivables from the connected parties

Item name Connected party Accounts receivable Jinke Investment China Sciences Group USUM Investment Group Jinke Xinhaihui [note] Wujiang Jinke Yangzi Subtotal Other receivables Jinke Xinhaihui [note] Wujiang Jinke Yangzi Subtotal	Amount at the end of the period Book balance Provision for bad debts 3,249.00 32.49 158,927.90 1,589.28 94,662.38 946.62 — — 5,542,025.35 147,297.93 5,798,864.63 149,866.32 — — 64,782,542.26 3,233,742.54 64,782,542.26 3,233,742.54	Amount at the end of the period Book balance Provision for bad debts 3,249.00 32.49 158,927.90 1,589.28 94,662.38 946.62 — — 5,542,025.35 147,297.93 5,798,864.63 149,866.32 — — 64,782,542.26 3,233,742.54 64,782,542.26 3,233,742.54	Amount at the beginning of the period Book balance Provision for bad debts — — 56,754.90 567.55 1,613,777.00 16,137.77 3,462.00 34.62 11,349,530.25 113,495.30 13,023,524.15 130,235.24 200,000.00 2,000.00 345,187,468.41 3,451,874.68 345,387,468.41 3,453,874.68	Amount at the beginning of the period Book balance Provision for bad debts — — 56,754.90 567.55 1,613,777.00 16,137.77 3,462.00 34.62 11,349,530.25 113,495.30 13,023,524.15 130,235.24 200,000.00 2,000.00 345,187,468.41 3,451,874.68 345,387,468.41 3,453,874.68
		— 3,233,742.54 3,233,742.54		2,000.00 3,451,874.68 3,453,874.68

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FINANCIAL INFORMATION OF JINKE PROPERTY

[Note] As the subsidiary Chongqing Jinke acquired the effective control over Jinke Xinhaihui in the current period, Jinke Xinhaihui changed from a joint venture to a subsidiary incorporated in the scope of the consolidated financial statements as from May 2015. For details, please refer to the long-term equity investment in the notes to the consolidated financial statements in the Notes to the Financial Statements.

2. Payables to the connected parties

			Amount at the
		Amount at the end	beginning of the
Item name	Connected party	of the period	period
Accounts payable
	Shenlong Construction	1,306.67	480,584.57
	China Sciences Group	36,145,907.62	39,244,449.10
	Jianglong Construction	18,642,496.87	18,526,373.78
	Zhanhe Agriculture	161,736.63	161,736.63
Subtotal		54,951,447.79	58,413,144.08
Advance receipts
	China Sciences Group	1,335,455.00	1,335,455.00
Subtotal		1,335,455.00	1,335,455.00
Other payables
	Jinke Investment	—	225,637,191.89
	China Sciences Group	324,694.00	324,694.00
	USUM Investment Group	117,898,000.00	150,027,967.69
Subtotal		118,222,694.00	375,989,853.58

XII. Commitments and contingencies

(I) Important commitments

As at 31 December 2014, the expenditure of agreed capital projects for which the Company has signed relevant contracts (mainly contracts on external investment, purchase and construction of long-term assets and land contracts) but did not make the payment totalled RMB3,912,735,700, which will be paid in several years when the other parties fulfill their responsibilities and obligations stipulated in the contracts. Details are as follows:

					Unit: RMB’0,000
Item				Contract amount	Amount paid
Contract	on	external	investment	70,000.00	32,000.00

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FINANCIAL INFORMATION OF JINKE PROPERTY

Item	Contract amount	Amount paid
Contract on purchase and construction of long-term assets	136,000.00	21,314.95
Land contract	568,766.60	330,178.08
Total	774,766.60	383,493.03

• (II) Contingencies

• Other contingencies: it is a common practice for the Company and its subsidiaries to provide mortgage-backed guarantee for purchasers of commodity housing. Such guarantee is periodic and the guarantee period starts from the date of entry into force of the guarantee contract to the date when the purchaser of commodity housing obtains the Property Ownership Certificate , completes mortgage registration formalities and gives the Property Ownership Certificate to the bank. As at 31 December 2014, the periodic guarantee amount of the Company and its subsidiaries tallied RMB5366,045,400, and the amount paid for bearing the periodic joint-and-several guarantee liability reached RMB30,131,700. The Company and its subsidiaries has assessed the impact of relevant guarantee risks on the financial statements, has taken active measures to pursue recovery, and has made corresponding provision for bad debts in the reporting period.

XIII. Events subsequent to balance sheet date

• (I) Important non-adjusting events

		Influence
		number of	Reason of
		financial	inability to
		position and	estimate the
		operating	influence
Item	Content	results	number
New	The subsidiary Jinke Industrial Investment	Not applicable	Not applicable
establishment	Development Company Limited, Hunan
	Jingchao Group Co., Ltd. and Dalian Science
	& Technology Town Development Co., Ltd.
	jointly funded Hunan Jinke Yida Industrial
	Development Co., Ltd. The registered capital
	of the company was RMB100 million, with
	RMB50 million (50% stake) contributed by
	Jinke Industrial Investment Development
	Company Limited. The company obtained the
	business license (registration No.
	430000000117905) on 5 January 2015.

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APPENDIX II

Item Content

Influence number of Reason of financial inability to position and estimate the operating influence results number

The subsidiary Chongqing Jinke Culture and Not applicable Not applicable Tourism Investment Co., Ltd. funded Suining Jinke Dongjun Real Estate Development Co., Ltd., with an investment of RMB50 million. The registered capital of the company was RMB50 million, so Chongqing Jinke Culture and Tourism Investment Co., Ltd. has 100% stake in the company. The company obtained the business license (registration No.: 510900000072367) on 30 January 2015.

The subsidiary Hunan Jinke Yida Industrial Not applicable Not applicable Development Co., Ltd. funded Changsha Jingke Real Estate Co., Ltd., with an investment of RMB10 million. The registered capital of the company was RMB10 million, so Hunan Jinke Yida Industrial Development Co., Ltd. has 100% stake in the company. The company obtained the business license (registration No.: 430194000016914) on 29 January 2015.

The subsidiary Shandong Baijun Real Estate Not applicable Not applicable Development Co., Ltd. funded Qingdao Yuhua Jinke Real Estate Development Co., Ltd., with an investment of RMB10 million. The registered capital of the company was RMB10 million, so Shandong Baijun Real Estate Development Co., Ltd. has 100% stake in the company. The company obtained the business license (registration No.: 370203230202013 ) on 9 March 2015.

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APPENDIX II

		Influence
		number of	Reason of
		financial	inability to
		position and	estimate the
		operating	influence
Item	Content	results	number
Land acquisition	According to the Sales Confirmation, on 21	Not applicable	Not applicable
	January 2015, the subsidiary Hunan Jinke Yida
	Industrial Development Co., Ltd. won the
	right to use the land (Jing Wang Gua [2014]
	No. 162 and 163 of Changsha Land &
	Resources Bureau) with a total area of
	333,998.40 m2 in Changsha County, Changsha
	City, Hunan Province, at the price of
	RMB352,810,000.
	According to the Sales Confirmation (Qing Tu	Not applicable	Not applicable
	Jiao Zi [2015] No. 5), in January 2015, the
	subsidiary Shandong Baijun Real Estate
	Development Co., Ltd. won the right to use
	the land with a total area of 65,239.40 m2 in
	No. 141 Ruichang Road, Shibei District,
	Qingdao City, Shandong Province, at the price
	of RMB960,746,000.
Important	Upon deliberation and approval by the 10th	Not applicable	Not applicable
financing	extraordinary general meeting 2014 of the
	Company held on 25 December 2014, the
	Company and Minsheng Royal Asset
	Management Co., Ltd. (hereinafter referred to
	as “Minsheng Royal”) signed the Entrusted
	Loan Agreement. Minsheng Royal worked out
	a special asset management plan to raise funds
	and grant loans to the Company. The loans
	amounted to RMB1.4 billion without a fixed
	term. The Company has received the aforesaid
	loans of RMB1.4 billion on 13 February 2015.

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APPENDIX II

Influence number of Reason of financial inability to position and estimate the operating influence Item Content results number Asset transfer In November 2014, according to the Equity Not applicable Not applicable with Transfer Agreement signed by the subsidiary connected Wuxi Jiarun and Chongqing Zhongke Holding parties Co., Ltd. (hereinafter referred to as Zhongke Holding), Wuxi Jiarun transferred its 47.62% equity in Zhanhe Agriculture to Zhongke Holding at the price of RMB59.9 million. Wuxi Jiarun received all the payment for the equity transfer from Zhongke Holding in February 2015, and completed relevant equity transfer formalities with the industrial and commercial administration in February 2015.

(II) Profit distribution after the balance sheet date

Profits or dividends to be Based on the existing share capital recorded on 31 December distributed and capital reserve 2014, the Company plans to issue 14 new shares for every 10 converted into capital shares to all shareholders through funding from its capital reserve, allot 6 shares of bonus shares for every 10 shares to all the shareholders with undistributed profits, and distribute cash dividends of RMB206,781,007.65

• Profits or dividends declared None upon approval

• [Note] The Company’s controlling shareholder Jinke Investment and effective controllers Huang Hongyun and his wife Tao Hongxia committed that they will vote in favour of the aforesaid advance scheme on 2014 profit distribution and transfer of capital reserves into paid-in capital at the annual general meeting 2014 of the Company.

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APPENDIX II

XIII.Other important issues

• (I) Information about segments

1. Determination basis and accounting policies of reporting segment

The Company determines business segments based on the internal organizational structure, management requirements, and internal reporting system. The business segments of the Company refer to the constituent parts meeting the following conditions at the same time:

• (1) They can generate revenues and incur expenses in the daily activities;

• (2) The management can regularly evaluate their operating results to determine their allocation of resources and assess their performances;

• (3) Their financial position, operating results, cash flow and other relevant accounting information can be obtained through analysis. The Company determines the reporting segment based on the industrial segment, and distributes the commonly used assets and liabilities among segments according to their scale.

2. Financial information of reporting segment

Industrial segment

Unit: RMB’0,000

					Doors &
	Real estate	Property	Hotel	Landscaping	windows
Item	sales	management	operation	engineering	engineering
Operating revenue	1,605,068.38	45,582.73	14,759.55	46,225.21	10,564.30
Including: Revenue from main
businesses	1,582,621.38	43,457.83	14,543.59	46,219.52	10,451.59
Operating cost	1,228,544.88	34,830.55	3,582.22	47,717.13	9,394.50
Including: Cost of main
businesses	1,219,329.20	34,830.55	3,579.48	47,717.13	9,394.50
Total assets	14,996,736.07	57,736.50	90,813.41	330,848.49	151,159.93
Total liabilities	11,845,996.45	37,879.47	71,956.45	317,157.37	145,655.10

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FINANCIAL INFORMATION OF JINKE PROPERTY

					Doors &
	Sales of real	Property	Hotel	Landscaping	windows
Item	property	management	operation	engineering	engineering
Operating revenue	5,137.35	171,948.65	—	-166,935.44	1,732,350.73
Including: Revenue from main
businesses	5,137.35	170,683.80	—	-165,907.47	1,707,207.59
Operating cost	4,752.92	165,565.29	—	-160,721.64	1,333,665.85
Including: Cost of main
businesses	4,752.92	165,565.29	—	-159,985.58	1,325,183.49
Total assets	491,627.59	962,191.73	197,915.00	-9,072,448.05	8,206,580.67
Total liabilities	478,162.02	926,795.99	186,346.79	-7,119,990.00	6,889,959.64

• (II) Other important transactions and events that have an impact on investor’s decision-making

1. Pledge of shareholders’ equity

As at 31 December 2014, the pledge and freezing of the Company’s shares are as follows:

	Number of		Freezing	Freezing
Name of shareholder	**shares frozen **	Name of pledgee	type	time
Chongqing Jinke Investment	57,388,810.00	Dongxing Securities Co.,	Pledge	2014-8-4
Holdings (Group) Co., Ltd.		Ltd.
Chongqing Jinke Investment	50,000,000.00	Industrial and	Pledge	2013-9-26
Holdings (Group) Co., Ltd.		Commercial Bank of
		China Limited,
		Chongqing Yubei
		Sub-branch
Chongqing Jinke Investment	39,432,855.00	Guosen Securities Co.,	Pledge	2014-6-25
Holdings (Group) Co., Ltd.		Ltd.
Huang Yifeng	35,000,000.00	Chongqing International	Pledge	2013-3-20
		Trust Co., Ltd.
Wang Xiaoqin	26,750,000.00	Chongqing International	Pledge	2013-4-19
		Trust Co., Ltd.
Chongqing Jinke Investment	25,129,396.00	Guosen Securities Co.,	Pledge	2014-6-25
Holdings (Group) Co., Ltd.		Ltd.
Chongqing Jinke Investment	17,600,000.00	Guosen Securities Co.,	Pledge	2014-11-6
Holdings (Group) Co., Ltd.		Ltd.

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FINANCIAL INFORMATION OF JINKE PROPERTY

	Number of		Freezing	Freezing
Name of shareholder	**shares frozen **	Name of pledgee	type	time
Chongqing Jinke Investment	15,000,000.00	Guosen Securities Co.,	Pledge	2014-12-1
Holdings (Group) Co., Ltd.		Ltd.
Huang Yifeng	12,240,000.00	Chongqing International	Pledge	2013-4-19
		Trust Co., Ltd.
Huang Sishi	8,179,860.00	Dongxing Securities Co.,	Pledge	2014-9-26
		Ltd.
Huang Xingshun	5,877,750.00	Dongxing Securities Co.,	Pledge	2014-9-26
		Ltd.
Xia Xue	1,964,744.00	Chongqing Cultural	Pledge	2013-11-18
		Industry Financing
		Guarantee Co., Ltd.
Jiang Sihai	1,216,175.00	Dongxing Securities Co.,	Pledge	2014-9-26
		Ltd.
Fu Xiaowen	1,160,000.00	Guosen Securities Co.,	Pledge	2014-11-10
		Ltd.
Chen Changfeng	1,028,610.00	Dongxing Securities Co.,	Pledge	2014-9-26
		Ltd.
Zong Shusheng	994,350.00	Dongxing Securities Co.,	Pledge	2014-9-26
		Ltd.
Luo Licheng	691,214.00	Dongxing Securities Co.,	Pledge	2014-9-26
		Ltd.
Jiang Sihai	654,915.00	Dongxing Securities Co.,	Pledge	2014-9-26
		Ltd.
Zong Shusheng	573,050.00	Dongxing Securities Co.,	Pledge	2014-9-26
		Ltd.
Nie Ming	568,000.00	Guosen Securities Co.,	Pledge	2013-11-27
		Ltd.
Nie Ming	460,000.00	Guosen Securities Co.,	Pledge	2014-11-24
		Ltd.
Luo Licheng	376,576.00	Dongxing Securities Co.,	Pledge	2014-9-26
		Ltd.

— 151 —

APPENDIX II FINANCIAL INFORMATION OF JINKE PROPERTY

	Number of		Freezing	Freezing
Name of shareholder	**shares frozen **	Name of pledgee	type	time
Chen Hong	360,000.00	Guosen Securities Co.,	Pledge	2014-11-24
		Ltd.
Chen Hong	330,000.00	Guosen Securities Co.,	Pledge	2014-12-16
		Ltd.
Nie Ming	151,988.00	Guosen Securities Co.,	Pledge	2014-12-30
		Ltd.
Nie Ming	135,000.00	Guosen Securities Co.,	Pledge	2014-6-20
		Ltd.
He Bili	134,000.00	Soochow Securities Co.,	Pledge	2014-10-27
		Ltd.
Xiang Bo	98,245.00	Chengdu Jinjiang District	Judicial	2014-8-21
		People’s Court
Xiang Bo	65,496.00	Chengdu Jinjiang District	Judicial	2014-7-4
		People’s Court
Dou Zhao	60,000.00	Guotai Junan Securities	Pledge	2014-11-13
		Co., Ltd.
Peng Yanzhao	36,200.00	Hustai Securities Co.,	Pledge	2014-12-31
		Ltd.
Jiang Huichao	30,900.00	Soochow Securities Co.,	Pledge	2014-12-30
		Ltd.
Su Cailong	25,000.00	Everbright Securities Co.	Pledge	2014-12-2
		Ltd.
Nie Ming	20,000.00	Guosen Securities Co.,	Pledge	2014-1-9
		Ltd.
Ningbo	12,900.00	Guotai Junan Securities	Pledge	2014-12-30
		Co., Ltd.
Su Jiquan	9,400.00	Everbright Securities Co.	Pledge	2014-12-2
		Ltd.
Yang Yuanming	9,400.00	Hustai Securities Co.,	Pledge	2014-12-8
		Ltd.

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FINANCIAL INFORMATION OF JINKE PROPERTY

	Number of		Freezing	Freezing
Name of shareholder	**shares frozen **	Name of pledgee	type	time
Dong Wensheng	9,000.00	Ping An Securities	Pledge	2014-12-30
		Limited
Han Qingsheng	3,800.00	Hustai Securities Co.,	Pledge	2014-12-31
		Ltd.
Pu Yi	2,997.00	Guosen Securities Co.,	Pledge	2014-12-30
		Ltd.
Deng Xianfeng	1,900.00	Guotai Junan Securities	Pledge	2014-12-30
		Co., Ltd.
Chen Boan	1,000.00	Zhongshan Securities Co.,	Pledge	2014-12-31
		Ltd.
Chen Boan	500.00	Zhongshan Securities Co.,	Pledge	2014-12-30
		Ltd.
Wen Qing	10.00	Xi’an Municipal Public	Judicial	2014-9-10
		Security Bureau

1. According to the Proposal for Construction Project Site (Xuan Zi Di No. 650000201100612) issued by the Department of Housing & Urban-Rural Development of Xinjiang Uygur Autonomous Region, for the construction of the sixth Wind Farm (200 MW) project in Yandun, Hami, the subsidiary Xinjiang Huaran is approved to permanently acquire land of 349,153 m[2] . The said land is a state-owned land unused. On 29 September 2014, Xinjiang Huaran obtained the Temporary Land Use Permit from the Department of Land and Resources of Xinjiang Uygur Autonomous Region, which should be valid from 26 September 2014 to 25 September 2015. As at 31 December 2014, the application for the certificate of title of the aforesaid land was underway.

2. According to the Letter of Xinjiang Electric Power Regulatory Office of the State Electricity Regulatory Commission on the Application for Electric Power Business License by Xinjiang Huaran Oriental New Energy Co., Ltd. (Xin Dian Jian Zi Han [2013] No. 158), relevant information provided by the subsidiary Xinjiang Huaran about No. A1-A100 generators (installed capacity of 100*2MW) in the Wind Farm (200 MW) project in Yandun, Hami has passed the preliminary examination.

3. The on-grid tariff of the subsidiary Xinjiang Huaran’s Wind Farm (200 MW) project in Yandun, Hami is RMB0.58/kWh (tax included), specifically including the RMB0.25/kWh (tax included) purchase price, which is the local benchmark tariff for on-grid power generated by coal-fired generators using desulphurization approved or confirmed by competent price department of the government, and the RMB0.33/kWh (tax included) on-grid tariff of renewable energy power price surcharges. According to the Notice of the Ministry of Finance, National Development and

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FINANCIAL INFORMATION OF JINKE PROPERTY

Reform Commission, and National Energy Administration on Issuing the (Cai Jian [2012] No. 102), the state provides subsidies for on-grid electricity from renewable energy electricity generation projects in accordance with factors like on-grid tariff of renewable energy projects and benchmark tariff for coal-fired generators using desulphurization. The provincial grid enterprises and local independent grid enterprises should, in accordance with the grid-connected electricity generation projects and grid-connected projects included in the Catalogue of Additional Subsidies for Renewable Electricity Prices within the grid coverage at the corresponding level, file an application for subsidies and make a report to the Ministry of Finance, National Development and Reform Commission and National Energy Administration upon approval of local provincial finance, price and energy competent departments. As at 31 December 2014, Xinjiang Huaran was applying for access to the Catalogue of Additional Subsidies for Renewable Electricity Prices.

1. Upon approval at the 42nd meeting of the 8th Board of Directors of the Company on 28 January 2014, the Company planned to publicly issue corporate bonds worth less than RMB3.8 billion (inclusive), with a fixed rate and a term of less than 10 years (inclusive). The proceeds from the current issuance of bonds minus the issue expenses will be used to adjust the corporate debt structure, add liquidity, and fund the project construction and potential merger & acquisition projects in the future. The above proposal was deliberated and approved by the Company on the 2nd extraordinary general meeting 2014 held on 13 February 2014. The Company obtained the Feedback Notice of Examining Administrative Licensing Project by the China Securities Regulatory Commission (No. 141008) on 2 February 2015.

On 16 March 2015, the Company received the notice from Essence Securities Co., Ltd. (hereinafter referred to as Essence Securities), the sponsor institution for the issuance of corporate bonds of the Company. The notice said that China Securities Regulatory Commission has issued the Decision on the Temporary Suspension of Sponsor Institution Qualification of Essence Securities Co., Ltd. Qualification for Three Months (Decision on Administrative Supervision Measures of CSRC [2015] No. 27), which decided to suspend Essence Securities’ sponsor institution qualification from 4 March 2015 to 3 June 2015. Due to the aforesaid decision, the examination of the Company’s issuance of corporate bonds is temporarily suspended.

1. Upon approval at the 8th meeting of the 9th Board of Directors of the Company on 13 October 2014, the Company applied for registration and issuance (one time or many times) of medium-term notes of not more than RMB3.9 billion (inclusive) in the national interbank bond market. The proceeds will be used to adjust the corporate debt structure, add liquidity, repay the bank loan and fund the project construction. The above proposal was deliberated and approved by the Company on the 9th extraordinary general meeting 2014 held on 29 October 2014. On 31 October 2014, the Company submitted relevant application documents concerning issuance of the medium-term notes to the National Association of Financial Market Institutional Investors. As at 31 December 2014, matters relating to the current issuance of medium-term notes were still underway.

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APPENDIX II

XIV. Notes to major items in the financial statements of the parent company

• (I) Notes to items in the balance sheet of the parent company

• Accounts receivable

• (1) Details

• 1) Classified details

		**Amount at **	**the end of the **	period
	**Book **	balance	**Provision for **	bad debts
				Provision
				withdrawal
		Percentage		percentage
Classification	Amount	(%)	Amount	(%)	Book value
Receivables whose amount is
significant individually and for
which provision for bad debts is
withdrawn individually
Receivables for which provision is
withdrawn for bad debts in
portfolio by credit risks	13,406,522.73	100.00	180,222.00	1.34	13,226,300.73
Receivables whose amount is
insignificant individually but for
which provision for bad debts is
withdrawn individually
Total	13,406,522.73	100.00	180,222.00	1.34	13,226,300.73

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FINANCIAL INFORMATION OF JINKE PROPERTY

		**Amount **	**at the **	**beginning of **	the period
	**Book **	balance		**Provision for **	bad debts
					Provision
					withdrawal
		Percentage			percentage
Classification	Amount		(%)	Amount	(%)	Book value
Receivables whose amount is
significant individually and for
which provision for bad debts is
withdrawn individually	—		—	—	—	—
Receivables for which provision is
withdrawn for bad debts in
portfolio by credit risks	770,226.41	100.00		303,623.25	39.42	466,603.16
Receivables whose amount is
insignificant individually but for
which provision for bad debts is
withdrawn individually	—		—	—	—	—
Total	770,226.41	100.00		303,623.25	39.42	466,603.16

• 2) Accounts receivable for which provision is withdrawn for bad debts as per age analysis method in portfolio

	**Amount at **	**the end of the **	period
			Provision
			withdrawal
		Provision for	percentage
Age	Book balance	bad debts	(%)
Within 1 year	13,359,899.73	133,599.00	1.00
Over 5 years	46,623.00	46,623.00	100.00
Subtotal	13,406,522.73	180,222.00	1.34

• (2) Provision for bad debts withdrawn, recovered or reversed in the current period

• 1) The amount withdrawn for bad debts in the current period is -RMB123,401.25.

— 156 —

FINANCIAL INFORMATION OF JINKE PROPERTY

APPENDIX II

2. Other receivables

• (1) Details

1) Classified details

		Amount at the end of the period	Amount at the end of the period
Classification	Book balance		Provision for bad debts
			Provision
			withdrawal
		Percentage	percentage
	Amount	(%)	Amount	(%)	Book value
Receivables whose amount is
significant individually and for
which provision for bad debts is
withdrawn individually	—	—	—	—	—
Receivables for which provision is
withdrawn for bad debts in
portfolio by credit risks	13,856,981,326.14	100.00	19,247,814.04	0.14	13,837,733,512.10
Receivables whose amount is
insignificant individually but for
which provision for bad debts is
withdrawn individually	—	—	—	—	—
Total	13,856,981,326.14	100.00	19,247,814.04	0.14	13,837,733,512.10
		Amount at the beginning of the period
Classification	Book balance		Provision for bad debts
			Provision
			withdrawal
		Percentage	percentage
	Amount	(%)	Amount	(%)	Book value
Receivables whose amount is
significant individually and for
which provision for bad debts is
withdrawn individually	190,000,000.00	1.02	3,000,000.00	1.58	187,000,000.00
Receivables for which provision is
withdrawn for bad debts in
portfolio by credit risks	18,412,757,536.67	98.98	14,482,913.76	0.08	18,398,274,622.91
Receivables whose amount is
insignificant individually but for
which provision for bad debts is
withdrawn individually	—	—	—	—	—
Total	18,602,757,536.67	100.00	17,482,913.76	0.09	18,585,274,622.91

— 157 —

FINANCIAL INFORMATION OF JINKE PROPERTY

APPENDIX II

• 2) Other receivables for which provision is withdrawn for bad debts as per age analysis method in portfolio

Age Within 1 year 1-2 years 2-3 years 3-4 years Over 5 years Subtotal	Amount at the end of the period Book balance Provision for bad debts Provision withdrawal percentage (%) 5,294,728.65 52,947.29 1.00 7,018,923.98 350,946.20 5.00 34,797,838.00 6,959,567.60 20.00 139,788.24 69,894.11 50.00 11,814,458.84 11,814,458.84 100.00 59,065,737.71 19,247,814.04 32.59	Amount at the end of the period Book balance Provision for bad debts Provision withdrawal percentage (%) 5,294,728.65 52,947.29 1.00 7,018,923.98 350,946.20 5.00 34,797,838.00 6,959,567.60 20.00 139,788.24 69,894.11 50.00 11,814,458.84 11,814,458.84 100.00 59,065,737.71 19,247,814.04 32.59
		32.59

• 3) Other receivables for which provision is withdrawn for bad debts as per other methods in portfolio

Portfolio name Amount at the end of the period

Combination of transactions with connected parties in the consolidation scope Cash deposit portfolio Subtotal	Book balance Provision for bad debts Provision withdrawal percentage (%) 13,724,390,588.43 — — 73,525,000.00 — — 13,797,915,588.43 — —	Book balance Provision for bad debts Provision withdrawal percentage (%) 13,724,390,588.43 — — 73,525,000.00 — — 13,797,915,588.43 — —
		—

• (2) Provision for bad debts withdrawn, recovered or reversed in the current period

• 1) In the current period, the provision for bad debts withdrawn was RMB4,764,900.28, and the provision for bad debts recovered or reversed amounted to RMB3,000,000.00.

• 2) Important provision for bad debts recovered or reversed in the current period

	Amount recovered
Entity name	or reversed	Recovery mode
Chongqing Jiayihua Technology Industrial Co., Ltd.	3,000,000.00	[Note]
Subtotal	3,000,000.00

— 158 —

APPENDIX II

FINANCIAL INFORMATION OF JINKE PROPERTY

• [Note] For details of the recovery mode, refer to the performance of commitments of connected parties in the connected parties and connected transactions in the Notes to the Financial Statements.

(3) Other receivables classified by payment properties

Payment properties Amount at the end of the period Cash deposit 73,525,000.00 Land reclamation funds — Transactions with connected parties in the consolidation scope 13,724,390,588.43 Others 59,065,737.71 Total 13,856,981,326.14	Amount at the beginning of the period 116,169,400.00 190,000,000.00 18,225,498,171.11 71,089,965.56
	18,602,757,536.67

• (4) Top five entities in amount of other receivables

Entity name Payment properties Chongqing New Start Decorative Engineering Co., Ltd. Transactions with connected parties Beijing Jinke Zhanhao Real Estate Co., Ltd. Transactions with connected parties Wuxi Jinke Real Estate Development Co., Ltd. Transactions with connected parties Chongqing Jinke Huimao Real Estate Development Co., Ltd. Transactions with connected parties Chengdu Jinke Real Estate Development Co., Ltd. Transactions with connected parties Subtotal

Book balance Age Percentage in balance of other receivables (%) Provision for bad debts 1,977,353,891.23 Within 1 year 14.27 — 1,238,162,425.01 Within 1 year 8.94 — 1,017,653,711.74 Within 1 year 7.34 — 933,335,279.93 Within 1 year 6.74 — 841,366,989.17 Within 1 year 6.07 — 6,007,872,297.08 43.36 —

— 159 —

APPENDIX II

FINANCIAL INFORMATION OF JINKE PROPERTY

1. Long-term equity investment

2. (1) Details

	**Amount at the end of the **	**Amount at the end of the **	period	**Amount at the beginning of **	**Amount at the beginning of **	the period
		Provision for			Provision for
Item	Book balance	impairment	Book value	Book balance	impairment	Book value
Investment in
subsidiaries	11,063,059,070.41	11,063,059,070.41		7,259,826,240.22		7,259,826,240.22
Investment in
associated
enterprises and
joint ventures	89,578,777.34		89,578,777.34	87,887,647.22		87,887,647.22
Total	11,152,637,847.75	11,152,637,847.75		7,347,713,887.44		7,347,713,887.44

• (2) Investment in subsidiaries

					Provision
					withdrawn for	Provision for
	Amount at the	Increase in	Decrease in	Amount at	impairment in	impairment at
	beginning of the	the current	the current	the end of	the current	the end of the
Invested entity	period	period	period	the period	period	period
Shaanxi Haoyuefu Real
Estate Development Co.,
Ltd.	18,000,000.00	2,000,000.00	—	20,000,000.00	—	—
Shaanxi Jinrunda Real Estate
Development Co., Ltd.	—	102,000,000.00	—	102,000,000.00	—	—
Chongqing Jinke Property
Service Co., Ltd.	5,100,000.00	44,900,000.00	—	50,000,000.00	—	—
Jinke Industrial Investment
Development Company
Limited	—	500,000,000.00	—	500,000,000.00	—	—
Chengdu Jinke Real Estate
Development Co., Ltd.	269,500,273.09	—	—	269,500,273.09	—	—
Wuxi Jinke Real Estate
Development Co., Ltd.	625,429,734.00	—	—	625,429,734.00	—	—
Liuyang Jinke Real Estate
Co., Ltd.	45,000,000.00	—	—	45,000,000.00	—	—
Chongqing Jinke Kunhe
Investment Co., Ltd.	50,000,000.00	—	—	50,000,000.00	—	—
Chongqing Jinke Hotel Co.,
Ltd.	60,602,877.20	—	—	60,602,877.20	—	—
Wuxi Jinke Kerun Real
Estate Development Co.,
Ltd.	300,000,000.00	—	—	300,000,000.00	—	—
Chongqing Qingke Trading
Co., Ltd.	26,000,000.00	150,000,000.00	—	176,000,000.00	—	—
Hunan Jinke Real Estate
Development Co., Ltd.	150,000,000.00	—	—	150,000,000.00	—	—

— 160 —

APPENDIX II

FINANCIAL INFORMATION OF JINKE PROPERTY

					Provision
					withdrawn for	Provision for
	Amount at the	Increase in	Decrease in	Amount at	impairment in	impairment at
	beginning of the	the current	the current	the end of	the current	the end of the
Invested entity	period	period	period	the period	period	period
Jiangyin Jinke Real Estate
Development Co., Ltd.	99,000,000.00	—	—	99,000,000.00	—	—
Jiangyin Jinke Real Estate
Development Co., Ltd.	147,000,000.00	—	—	147,000,000.00	—	—
Beijing Jinke Xingyuan Real
Estate Co., Ltd.	140,000,000.00	—	—	140,000,000.00	—	—
Chongqing Jinke Industrial
Group Kerun Real Estate
Development Co., Ltd.	100,000,000.00	—	—	100,000,000.00	—	—
Chongqing Tianhao
Menchuang Co., Ltd.	50,538,329.81	—	—	50,538,329.81	—	—
Chongqing Jinke Real Estate
Development Co., Ltd.	90,719,700.00	—	—	90,719,700.00	—	—
Chongqing Tongrong
Industrial Co., Ltd.	33,400,100.00	—	—	33,400,100.00	—	—
Chongqing Casin Jiangjing
Real Estate Development
Co., Ltd.	39,418,063.00	—	—	39,418,063.00	—	—
Chongqing Jinke Industrial
Group Hua’nan Real Estate
Development Co., Ltd.	30,000,000.00	—	—	30,000,000.00	—	—
Chongqing Huaxie Real
Estate Co., Ltd.	64,930,000.00	—	—	64,930,000.00	—	—
Chongqing Zhongxun
Property Development Co.,
Ltd.	172,200,000.00	—	—	172,200,000.00	—	—
Chongqing Jinke Industrial
Group Hongjing Real
Estate Development Co.,
Ltd.	49,985,097.87	—	—	49,985,097.87	—	—
Chongqing Jiale Jiulong Real
Estate Development Co.,
Ltd.	103,870,945.98	—	—	103,870,945.98	—	—
Chongqing Tianyuansheng
Real Estate Development
Co., Ltd.	179,664,612.36	—	—	179,664,612.36	—	—
Beijing Jinke Napa Real
Estate Co., Ltd.	2,558,856,506.91	—	—	2,558,856,506.91	—	—
Beijing Jinke Hongju Real
Estate Co., Ltd.	100,000,000.00	597,100,000.00	—	697,100,000.00	—	—
Chongqing Jinke Kepeng
Business Management Co.,
Ltd.	5,000,000.00	—	—	5,000,000.00	—	—
Chongqing Jinke Chenju Real
Estate Co., Ltd.	20,000,000.00	—	—	20,000,000.00	—	—

— 161 —

APPENDIX II

FINANCIAL INFORMATION OF JINKE PROPERTY

Invested entity Chongqing Jinke Junyao Real Estate Development Co., Ltd. Chongqing Bishan Jinke Zhongxi Real Estate Co., Ltd. Tangshan Jinke Real Estate Development Co., Ltd. [Note] Jinan Jinke Xicheng Real Estate Development Co., Ltd. Chongqing Qingheng Trading Co., Ltd. Chongqing Jiangjin Jinke Guojun Real Estate Co., Ltd. Chongqing Jinke Culture and Tourism Investment Co., Ltd. Chengdu Jianglong Investment Co., Ltd. Jinke Group Suzhou Real Estate Development Co., Ltd. Subtotal	Amount at the beginning of the period — 160,000,000.00 5,100,000.00 510,000,000.00 49,810,000.00 — 86,400,000.00 394,000,000.00 20,000,000.00 7,259,826,240.22	Increase in the current period 1,184,908,816.47 240,000,000.00 — — — 987,424,013.72 — — — 3,808,332,830.19	Decrease in the current period Amount at the end of the period Provision withdrawn for impairment in the current period Provision for impairment at the end of the period — 1,184,908,816.47 — — — 400,000,000.00 — — 5,100,000.00 — — — — 510,000,000.00 — — — 49,810,000.00 — — — 987,424,013.72 — — — 86,400,000.00 — — — 394,000,000.00 — — — 20,000,000.00 — — 5,100,000.00 11,063,059,070.41 — —

[Note] The subsidiary Tangshan Jinke Real Estate Development Co., Ltd. was liquidated and canceled on 28 November 2014.

— 162 —

APPENDIX II

FINANCIAL INFORMATION OF JINKE PROPERTY

• (3) Investment in associated enterprises and joint ventures

				**Increase/decrease in **	**Increase/decrease in **	**Increase/decrease in **	the current period	the current period
							Investment
							gains/losses	Adjustments
	Amount at the						confirmed	to other
	beginning of		Investment		Investment		based on	comprehensive
Invested entity	**the **	period		added		reduced	equity method	income
Associated enterprises
Yinhai Leasing	73,931,962.89			—		—	10,113,456.59	—
Zhanhe Agriculture	13,955,684.33			—	-5,955,089.59		-8,000,594.74	—
Jinwanzhong Real Estate		—	10,000,000.00			—	-5,494.92	—
Subtotal	87,887,647.22		10,000,000.00		-5,955,089.59		2,107,366.93	—
Total	87,887,647.22		10,000,000.00		-5,955,089.59		2,107,366.93	—
	**Increase/decrease in the **			current period				Balance of
		Cash dividends						provision for
		**or **	profits	Provision			Amount at the	impairment at
Other equity		announced to		withdrawn for			end of the	the end of the
Invested entity	changes	be distributed		impairment		Others	period	period
Associated
enterprises
Yinhai Leasing	—	-4,461,147.22			—	—	79,584,272.26	—
Zhanhe Agriculture	—		—		—	—	—	—
Jinwanzhong Real
Estate	—		—		—	—	9,994,505.08	—
Subtotal	—	-4,461,147.22			—	—	89,578,777.34	—
Total	—	-4,461,147.22			—	—	89,578,777.34	—

(4) Other descriptions

The Company provided a pledge guarantee for the loans of its subsidiary Bozhan Real Estate with its equities in Bozhan Real Estate; the Company provided a pledge guarantee for its loans with its equities in the subsidiary Chengdu Jinke Real Estate Development Co., Ltd. and Jinan Jinke Xicheng Real Estate Development Co., Ltd.

— 163 —

FINANCIAL INFORMATION OF JINKE PROPERTY

APPENDIX II

• (II) Notes to items in the income statement of the parent company

1. Operating revenue/cost

(1) Details

Item Revenue from main businesses Revenue from other businesses [Note] Total	Amount in the current period Revenue Cost 191,440,556.00 115,527,907.14 319,284,357.79 2,536,704.61 510,724,913.79 118,064,611.75	Amount in the sa preceding Revenue 1,474,005,748.74 286,305,897.31 1,760,311,646.05	me period of year Cost 671,270,198.82 2,049,759.22
			673,319,958.04

• [Note] The revenue from other businesses is RMB319,284,357.79, which is the consulting fee received by the Company from its subsidiaries.

• (2) Revenue from/cost of main businesses (by sector)

Name of industry Real estate sales Subtotal	Amount in the current period Revenue Cost 191,440,556.00 115,527,907.14 191,440,556.00 115,527,907.14	Amount in the sa preceding Revenue 1,474,005,748.74 1,474,005,748.74	me period of year Cost 671,270,198.82
			671,270,198.82

• (3) Revenue from/cost of main businesses (by sector)

			Amount in the same period of
	**Amount in the **	current period	preceding year
Name of region	Revenue	Cost	Revenue Cost
Chongqing	191,440,556.00	115,527,907.14	1,474,005,748.74 671,270,198.82
Subtotal	191,440,556.00	115,527,907.14	1,474,005,748.74 671,270,198.82

— 164 —

FINANCIAL INFORMATION OF JINKE PROPERTY

APPENDIX II

2. Return on investment

Item Long-term equity investment return stated by cost method Long-term equity investment return stated by equity method Investment return generated by disposal of long-term equity investment Total	Amount in the current period 1,094,913,663.12 2,107,366.93 3,262,974.06 1,100,284,004.11	Amount in the same period of preceding year 300,000,000.00 4,376,255.33 -2,874,100.00
		301,502,155.33

XV. Other supplementary information

(I) Non-recurring gains and losses

1. Schedule of non-recurring gains and losses
Item	Amount	Note
Gains/losses from disposal of non-current assets,
including the offset part of the retained asset
impairment provisions	14,905,896.74
Unauthorized examination and approval, or lack of
official approval documents, or occasional tax revenue
return and abatement	—
Governmental subsidies recorded into the current profit
and loss ( except for the one closely related with the
normal operation of the company and gained
constantly at a fixed amount or quantity according to
certain standard based on state policies)	202,178,584.12
Capital occupation fees on non-financial enterprises
recorded into current gains and losses	18,267,632.66
Gains because the investment costs for the Company to
obtain subsidiaries, associated enterprises and joint
ventures are lower than the enjoyable fair value of the
identifiable net assets of the investees when making
the investments	—
Gain/loss on exchange of non-monetary assets	—
Gain/loss on entrusting others with investments or asset
management	—
Asset impairment provisions due to force majeure factors
such as natural disasters	—

— 165 —

FINANCIAL INFORMATION OF JINKE PROPERTY

APPENDIX II

Item	Amount	Note
Gain/loss on debt restructuring	—
Expenses for business reorganization, such as expenses
for staffing,reorganization etc.	—
Gain/loss on the part over the fair value due to
transactions with distinctly unfair prices	—
Current gains and losses of subsidiaries acquired from
merger of enterprises under the same control as from
the beginning of the period to the date of merger	—
Gain/loss on contingent events irrelevant to the
Company’s normal business	—
Gains and losses on change in fair value from tradable
financial assets and tradable financial liabilities (which
are measured at fair value through profit or loss), as
well as investment income from disposal of tradable
financial assets and tradable financial liabilities and
financial assets available for sales, except for effective
hedging related with normal businesses of the
Company	831,399.49
Reversal of impairment provisions for receivables on
which impairment tests are carried out separately	3,000,000.00
Gain/loss on external entrustment loans	—
Gain/loss on change of the fair value of investment
property of which the subsequent measurement is
carried out adopting the fair value method	54,152,554.05
Effect on current gains/losses when a one-off adjustment
is made to current gains/losses according to
requirements of taxation, accounting and other relevant
laws and regulations	—
Custody fee income when entrusted with operation	—
Non-operating incomes and expenses other than the
above	-4,857,013.58
Other gain/loss items that meet the definition of
non-recurring gains/losses	—
Subtotal	288,479,053.48
Less: Enterprise income tax effects (“-” for decrease
of income tax)	71,921,056.86
Effect of minority interests (after tax)	3,580,164.61
Net non-recurring gains and losses attributable to owners
of the parent company	212,977,832.01

— 166 —

FINANCIAL INFORMATION OF JINKE PROPERTY

APPENDIX II

• (II) Return on equity and earnings per share

• Details

			Earnings per share (RMB/share)	Earnings per share (RMB/share)	Earnings per share (RMB/share)
	Weighted average			Basic earnings	Diluted earnings
Profit in the reporting period		ROE (%)		per share	per share
Net profit attributable to common
shareholders		11.31		0.78	0.78
Net profit attributable to common
shareholders after deducting
non-recurring gains and losses		8.66		0.60	0.60
2. Computation process of weighted average ROE
					Amount in the
Item				SN	current period
Net profit attributable to common shareholders				A	907,884,138.79
Non-recurring gains and losses				B	212,977,832.01
Net profit attributable to common shareholders		after deducting		C=A-B	694,906,306.78
non-recurring gains and losses
Opening net assets attributable to common shareholders				D	7,852,164,529.35
Net assets attributable to common shareholders		newly added due		E	2,172,332,830.19
to new issuance or debt-to-equity swap
Cumulative number of months from the month		following the		F	—
month with net assets increased till the	end of reporting period
Net assets attributable to common shareholders		decreased due	to	G	139,024,806.12
repurchase or cash dividends
Cumulative number of months from the month		following the		H	7.00
month with net assets decreased till the	end of reporting
period

— 167 —

APPENDIX II

FINANCIAL INFORMATION OF JINKE PROPERTY

			Amount in the
Item		SN	current period
Others	Transfer from inventories to investment properties	I1	34,931,491.81
	Cumulative number of months from the month	J1
	following the month with net assets
	increased/decreased till the end of reporting period
	Impact of changes in income tax rate on investment	I2	362,235.28
	property
	Cumulative number of months from the month	J2
	following the month with net assets
	increased/decreased till the end of reporting period
	Equity transaction of capital increase by shareholders	I3	53,404.36
	of Jinke Junwei
	Cumulative number of months from the month	J3	8.00
	following the month with net assets
	increased/decreased till the end of reporting period
	Minority equity transaction of Haoyuefu Real Estate	I4	-859,654.50
	Cumulative number of months from the month	J4	6.00
	following the month with net assets
	increased/decreased till the end of reporting period
	Equity transaction of capital increase by shareholders	I5	-2,629,446.04
	of Juncheng Real Estate
	Cumulative number of months from the month	J5	7.00
	following the month with net assets
	increased/decreased till the end of reporting period
	Minority equity transaction of Zhongxi Real Estate	I6	-115,547,488.07
	Cumulative number of months from the month	J6	7.00
	following the month with net assets
	increased/decreased till the end of reporting period
	Minority equity transaction of Junyao Real Estate	I7	-225,021,573.97
	Cumulative number of months from the month	J7	7.00
	following the month with net assets
	increased/decreased till the end of reporting period
	Minority equity transaction of Juncheng Real Estate	I8	45,830,000.00
	Cumulative number of months from the month	J8
	following the month with net assets
	increased/decreased till the end of reporting period
	Change in fair value of available-for-sale financial	I9	-529,337.70
	assets
	Cumulative number of months from the month	J9	11.00
	following the month with net assets
	increased/decreased till the end of reporting period

— 168 —

FINANCIAL INFORMATION OF JINKE PROPERTY

APPENDIX II

		Amount in the
Item	SN	current period
Months of reporting period	K	12.00
Weighted average net assets	L= D+A/2+	8,023,930,214.89
	E�F/K-G�
	H/K�I�J/K
Weighted average ROE	M=A/L	11.31%
Weighted ROE after deducting non-recurring gains and losses	N=C/L	8.66%

1. Computation process of basic earnings per share and diluted earnings per share

(1) Computation process of basic earnings per share

		Amount in the
Item	SN	current period
Net profit attributable to common shareholders	A	907,884,138.79
Non-recurring gains and losses	B	212,977,832.01
Net profit attributable to common shareholders after deducting	C=A-B	694,906,306.78
non-recurring gains and losses
Total shares at the beginning of the period	D	1,158,540,051.00
Number of shares increased due to conversion of public	E	—
reserve into share capital or dividend distribution
Number of shares increased due to new issuance or	F	220,000,000.00
debt-to-equity swap
Cumulative number of months from the month following the	G	—
month with net assets increased till the end of reporting
period
Number of shares decreased due to repurchase	H	—
Cumulative number of months from the month following the	I	—
month with net assets decreased till the end of reporting
period
Number of shares shrunk in the reporting period	J	—
Months of reporting period	K	12.00
Weighted average number of common shares issued externally	L=D+E+F�	1,158,540,051.00
	G/K-H�I/K-J
Basic earnings per share	M=A/L	0.78
Basic earnings per share after deducting non-recurring gains	N=C/L	0.60
and losses

• (2) Computation process of diluted earnings per share

Diluted earnings per share is calculated in the same way as the basic earnings per share.

— 169 —

APPENDIX II

FINANCIAL INFORMATION OF JINKE PROPERTY

(III) Supplementary information about changes in accounting policies

According to the Accounting Standards for Enterprises No. 2 — Long-term Equity Investments and seven other accounting standards issued by the Ministry of Finance in 2014, the Company changed relevant accounting policies and made a retrospective restatement to the comparative financial statements. The consolidated balance sheets on 1 January 2013 and 31 December 2013 after the restatement are as follows:

Item Current assets: Monetary fund Settlement provision Lendings Financial assets at fair value through profit or loss Derivative financial assets Notes receivable Accounts receivable Advance payments Premiums receivable Reinsurance accounts receivable Reinsurance contract reserves receivable Interests receivable Dividends receivable Other receivables Financial assets held under resale agreements Inventories Assets classified as held for sale Non-current assets maturing within one year Other current assets Total current assets	2013.1.1 9,191,083,896.41 — — 5,996,390.08 2,500,000.00 204,031,118.51 2,688,714,238.67 — — — — — 942,818,108.77 33,494,589,794.08 — — 1,435,547,858.40 47,965,281,404.92	2013.12.31 6,364,503,639.90 — — 2,340,000.00 1,050,000.00 210,514,538.67 1,191,785,760.11 — — — — — 1,823,074,182.38 45,996,490,254.23 — — 1,579,795,621.08 57,169,553,996.37	2014.12.31 7,527,131,604.31 — — — 15,300,000.00 709,008,179.14 796,701,986.10 — — — — — 1,737,074,275.37 62,262,559,625.16 — — 2,136,948,630.59
			75,184,724,300.67

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APPENDIX II FINANCIAL INFORMATION OF JINKE PROPERTY	APPENDIX II FINANCIAL INFORMATION OF JINKE PROPERTY	APPENDIX II FINANCIAL INFORMATION OF JINKE PROPERTY	APPENDIX II FINANCIAL INFORMATION OF JINKE PROPERTY
Item Non-current assets: Issue of loans and advances Available-for-sale financial assets Held-to-maturity investment Long-term receivables Long-term equity investments Investment properties Fixed assets Construction in progress Project materials Disposal of fixed assets Production-type biological assets Oil and gas assets Intangible assets Development expenses Goodwill Long-term prepaid expenses Deferred tax assets Other non-current assets Total non-current assets Total assets	2013.1.1 — — — — 95,411,864.48 2,643,491,047.26 468,697,284.58 8,487,122.58 — — — — 42,276,696.16 — 7,368,391.71 18,036,141.46 766,159,467.93 — 4,049,928,016.16 52,015,209,421.08	2013.12.31 — 22,705,783.60 — — 804,998,882.41 2,778,096,875.94 542,938,144.86 3,861,892.25 — — — — 48,858,096.68 — 7,368,391.71 20,812,716.14 995,860,472.35 — 5,225,501,255.94 62,395,055,252.31	2014.12.31 — — — — 336,774,746.08 2,905,436,061.00 1,132,931,471.61 653,283,292.96 — — — — 60,534,955.03 — 591,144,730.77 21,437,885.95 1,179,539,241.37 — 6,881,082,384.77
			82,065,806,685.44

— 171 —

APPENDIX II

FINANCIAL INFORMATION OF JINKE PROPERTY

Item Current liabilities: Short-term borrowings Borrowings from the central bank Deposits accepted and deposits from banks and other financial institutions Placements from banks and other financial institutions Financial liabilities measured at fair value through profit or loss Derivative financial liabilities Notes payable Accounts payable Advance receipts Financial assets sold for repurchase Fees and commissions payable Payroll payable Taxes payable Interest payable Dividends payable Other payables Reinsurance accounts payable Insurance contract reserve Funds from securities trading agency Funds from securities underwriting agency Liabilities classified as held for sale Non-current liabilities maturing within one year Other current liabilities Total current liabilities	2013.1.1 1,972,300,000.00 — — — — — 1,758,047,523.50 2,151,080,221.89 17,456,042,896.18 — — 130,894,175.79 699,531,685.54 112,441,882.52 23,912,698.46 3,267,757,090.68 — — — — — 6,298,860,000.00 — 33,870,868,174.56	2013.12.31 1,980,000,000.00 — — — — — 1,667,451,647.10 4,676,239,383.01 18,668,331,885.17 — — 186,060,616.51 876,080,517.34 114,532,803.87 23,912,698.46 3,377,557,908.15 — — — — — 5,673,860,000.00 — 37,244,027,459.61	2014.12.31 2,206,670,000.00 — — — — — 1,361,651,268.76 7,174,548,574.62 22,430,623,471.25 — — 223,355,293.73 513,991,683.18 347,675,641.14 23,912,698.46 2,595,649,056.46 — — — — — 8,831,319,600.00
			— 45,709,397,287.60

— 172 —

APPENDIX II FINANCIAL INFORMATION OF JINKE PROPERTY	APPENDIX II FINANCIAL INFORMATION OF JINKE PROPERTY	APPENDIX II FINANCIAL INFORMATION OF JINKE PROPERTY	APPENDIX II FINANCIAL INFORMATION OF JINKE PROPERTY
Item Non-current liabilities: Long-term borrowings Bonds payable Including: Preferred shares Perpetual bonds Long-term payables Long-term payroll payable Special payables Foreseeable liabilities Deferred earnings Deferred tax liabilities Other non-current liabilities Total non-current liabilities Total liabilities Owners’ equity (or stockholders’ equity): Paid-in capital (share capital) Other equity instruments Including: Preferred shares Perpetual bonds Capital reserves Less: Treasury shares Other comprehensive income Special reserves Surplus reserves General risk reserves Undistributed profits Total equity attributable to owners of the parent company Minority interests Total owners’ equity Total liabilities and owners’ equity	2013.1.1 9,188,680,000.00 — — — — — — — 41,792,948.89 483,690,166.59 471,020,000.00 10,185,183,115.48 44,056,051,290.04 1,158,540,051.00 — — — 138,750,298.93 — 558,262,976.13 — 215,287,935.41 — 4,875,172,995.17 6,946,014,256.64 1,013,143,874.40 7,959,158,131.04 52,015,209,421.08	2013.12.31 12,660,654,672.00 — — — — — — — 62,807,756.66 505,051,678.82 1,995,000,000.00 15,223,514,107.48 52,467,541,567.09 1,158,540,051.00 — — — 175,205,436.32 — 559,740,586.31 — 301,114,786.54 — 5,657,563,669.18 7,852,164,529.35 2,075,349,155.87 9,927,513,685.22 62,395,055,252.31	2014.12.31 21,311,210,000.00 — — — — — — — 72,928,871.54 516,060,205.86 1,290,000,000.00 23,190,199,077.40
			68,899,596,365.00
			1,378,540,051.00 — — — 2,102,318,777.08 — 594,504,975.70 — 161,768,591.16 — 6,292,813,928.44 10,529,946,323.38 2,636,263,997.06 13,166,210,320.44
			82,065,806,685.44

— 173 —

APPENDIX II FINANCIAL INFORMATION OF JINKE PROPERTY

AUDITED FINANCIAL STATEMENTS OF JINKE PROPERTY FOR THE YEAR ENDED 31 DECEMBER 2015

Section 10 Financial Report

I. Audit report

Type of audit opinions Standard unqualified audit opinions Signing date of the audit report 26 March 2016 Name of auditing body Pan-China Certified Public Accountants (special general partnership) No. of audit report Tian Jian Shen No. 8-118 [2016] Name of CPA Yi Shouchuan, Song Jun

Audit report

Tian Jian Shen No. 8-118 [2016]

All shareholders of Jinke Property Group Co., Ltd.:

We have audited the attached financial statements of Jinke Property Group Co., Ltd. (hereinafter referred to as “Jinke Co., Ltd.”), including the consolidated and the parent company’s balance sheets as at 31 December 2015, the consolidated and the parent company’s income statements of 2015, consolidated and the parent company’s cash flow statements, consolidated and the parent company’s statements of changes in owners’ equity and notes to financial statements.

I. Responsibility of the management for the financial statements

Preparing and fairly presenting financial statements are responsibilities of the management of Jinke Co., Ltd. These responsibilities include: (1) preparing financial statements in accordance with Accounting Standards for Business Enterprises, which achieve fair presentation in the mean time; and (2) designing, implementing and maintaining necessary internal control to avoid material misstatement resulting from fraudulence or mistakes.

II. Responsibility of CPAs

Our responsibility is to provide audit opinions on the financial statements based on our audit. We conducted our audit pursuant to China’s Independent Auditing Standards. The standards contained thereof require that we shall abide by professional ethics code for CPAs of China, plan and perform the audit to obtain reasonable assurance about whether or not the financial statements are free from material misstatement.

— 174 —

APPENDIX II

FINANCIAL INFORMATION OF JINKE PROPERTY

Our audit work includes implementing the audit procedure to obtain audit evidence relating to the amounts and disclosure of the financial statements. The audit procedure selected depends on the judgment of the CPAs, including assessment of the risk of material misstatement resulting from fraudulence or mistakes. While engaging in risk evaluation, CPAs took into consideration the internal control related to preparing and fairly presenting financial statements, with the purpose of designing proper audit procedure. The audit also includes assessing the appropriateness of accounting principles used and the rationality of the accounting estimates made by the management, as well as evaluating the overall financial statement presentation.

We believe the audit evidence we obtained is adequate and appropriate and provides a basis for us to give our opinions.

III. Auditors’ Opinions

In our opinion, Jinke Co., Ltd.’s financial statements are, in all material respects, prepared in accordance with Accounting Standards for Business Enterprises, and fairly present the consolidated and parent company’s financial position of Jinke Co., Ltd. as at 31 December 2015 as well as the consolidated and parent company’s operation performance and cash flow in 2015.

Pan-China Certified Public

Certified Public Accountant of China: Yi Shouchuan

Accountants (special general partnership)

Hangzhou, China

Certified Public Accountant of China: Song Jun 26 March 2016

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FINANCIAL INFORMATION OF JINKE PROPERTY

APPENDIX II

II. Financial statement

Unit: RMB

1. Consolidated balance sheet

Prepared by: Jinke Property Group Co., Ltd.

31 December 2015

Item Current assets: Monetary funds Settlement provision Lendings Financial assets measured at fair value through profit or loss Derivative financial assets Notes receivable Accounts receivable Advance payments Premiums receivable Reinsurance accounts receivable Reinsurance contract reserves receivable Interests receivable Dividends receivable Other receivables Financial assets held under resale agreements Inventory Assets classified as held for sale Non-current assets maturing within one year Other current assets Total current assets	Balance at the end of the period 9,389,188,261.83 — — — — 50,000.00 729,045,821.34 1,009,262,108.49 — — — — — 1,482,706,483.68 72,163,859,948.41 — — 2,613,349,329.77 87,387,461,953.52	Unit: RMB Balance at the beginning of the period 7,527,131,604.31 — — — — 15,300,000.00 709,008,179.14 796,701,986.10 — — — — — 1,737,074,275.37 62,262,559,625.16 — — 2,136,948,630.59
		75,184,724,300.67

— 176 —

FINANCIAL INFORMATION OF JINKE PROPERTY

APPENDIX II

Item Non-current assets: Issue of loans and advances Available-for-sale financial assets Held-to-maturity investment Long-term receivables Long-term equity investment Investment property Fixed assets Construction in progress Project materials Disposal of fixed assets Production-type biological assets Oil and gas assets Intangible assets Development expenses Goodwill Long-term prepaid expenses Deferred tax assets Other non-current assets Total non-current assets Total assets	Balance at the end of the period — 215,456,732.98 — — 391,087,261.46 2,888,950,566.79 2,528,455,846.44 158,257,610.66 — — — — 59,755,242.20 — 496,293,398.50 27,303,007.41 1,329,775,079.23 70,000,000.00 8,165,334,745.67 95,552,796,699.19	Balance at the beginning of the period — — — — 336,774,746.08 2,905,436,061.00 1,132,931,471.61 653,283,292.96 — — — — 60,534,955.03 — 591,144,730.77 21,437,885.95 1,179,539,241.37 —
		6,881,082,384.77
		82,065,806,685.44

— 177 —

FINANCIAL INFORMATION OF JINKE PROPERTY

APPENDIX II

	Balance at the	Balance at the
	end of the	beginning of the
Item	period	period
Current liabilities:
Short-term borrowings	1,881,600,000.00	2,206,670,000.00
Borrowings from the central bank	—	—
Deposits accepted and deposits from banks and other
financial institutions	—	—
Placements from banks and other financial institutions	—	—
Financial liabilities measured at fair value through profit
or loss	—	—
Derivative financial liabilities	—	—
Notes payable	1,317,213,982.92	1,361,651,268.76
Accounts payable	8,119,789,135.92	7,174,548,574.62
Advance receipts	26,584,971,159.41	22,430,623,471.25
Financial assets sold for repurchase	—	—
Fees and commissions payable	—	—
Payroll payable	286,398,577.70	223,355,293.73
Taxes payable	867,248,449.55	513,991,683.18
Interest payable	427,455,534.33	347,675,641.14
Dividends payable	28,384,920.68	23,912,698.46
Other payables	2,902,618,677.64	2,595,649,056.46
Reinsurance accounts payable	—	—
Insurance contract reserve	—	—
Funds from securities trading agency	—	—
Funds from securities underwriting agency	—	—
Liabilities classified as held for sale	—	—
Non-current liabilities maturing within one year	18,099,147,400.00	8,831,319,600.00
Other current liabilities	—	—
Total current liabilities	60,514,827,838.15	45,709,397,287.60

— 178 —

APPENDIX II

FINANCIAL INFORMATION OF JINKE PROPERTY

Item Non-current liabilities: Long-term loans Bonds payable Including: Preferred shares Perpetual bonds Long-term payables Long-term payroll payable Special payables Foreseeable liabilities Deferred earnings Deferred tax liabilities Other non-current liabilities Total non-current liabilities Total liabilities Owners’ equity: Share capital Other equity instruments Including: Preferred shares Perpetual bonds Capital reserve Less: Treasury shares Other comprehensive income Special reserves Surplus reserves General risk reserves Undistributed profits Total equity attributable to owners of the parent company Minority interests Total owners’ equity Total liabilities and owners’ equity	Balance at the end of the period 13,294,059,999.99 5,313,257,329.71 — — — — — — 79,965,496.62 548,820,645.64 463,763,400.00 19,699,866,871.96 80,214,694,710.11 4,327,060,153.00 1,400,000,000.00 — 1,400,000,000.00 580,341,350.91 618,351,200.00 620,872,917.24 — 309,916,162.14 — 6,234,162,595.74 12,854,001,979.03 2,484,100,010.05 15,338,101,989.08 95,552,796,699.19	Balance at the beginning of the period 21,311,210,000.00 — — — — — — — 72,928,871.54 516,060,205.86 1,290,000,000.00
		23,190,199,077.40
		68,899,596,365.00
		1,378,540,051.00 — — — 2,102,318,777.08 — 594,504,975.70 — 161,768,591.16 — 6,292,813,928.44
		10,529,946,323.38 2,636,263,997.06
		13,166,210,320.44
		82,065,806,685.44

Legal representative: Person in charge Huang Hongyun of accounting: Li Hua

Officer-in-charge of accounting institution: Liu Shaojun

— 179 —

APPENDIX II

FINANCIAL INFORMATION OF JINKE PROPERTY

1. Balance sheet of parent company

Item Current assets: Monetary funds Financial assets measured at fair value through profit or loss Derivative financial assets Notes receivable Accounts receivable Advance payments Interests receivable Dividends receivable Other receivables Inventory Assets classified as held for sale Non-current assets maturing within one year Other current assets Total current assets	Balance at the end of the period 1,613,435,471.53 — — — 13,670,506.54 601,813.66 — 844,750,000.00 27,514,167,641.36 308,024,653.26 — — 5,028,257.18 30,299,678,343.53	Unit: RMB Balance at the beginning of the period 817,641,069.73 — — — 13,226,300.73 289,593.47 — 878,442,799.70 13,837,733,512.10 369,449,025.12 — — 17,871,232.94
		15,934,653,533.79

— 180 —

FINANCIAL INFORMATION OF JINKE PROPERTY

APPENDIX II

Item Non-current assets: Available-for-sale financial assets Held-to-maturity investment Long-term receivables Long-term equity investment Investment property Fixed assets Construction in progress Project materials Disposal of fixed assets Production-type biological assets Oil and gas assets Intangible assets Development expenses Goodwill Long-term prepaid expenses Deferred tax assets Other non-current assets Total non-current assets Total assets	Balance at the end of the period — — — 12,783,889,169.44 1,378,538,005.59 5,141,529.52 — — — — — 5,977,980.22 — — 5,106,512.99 58,983,153.22 1,500,000,000.00 15,737,636,350.98 46,037,314,694.51	Balance at the beginning of the period — — — 11,152,637,847.75 1,383,785,332.99 7,564,875.95 — — — — — 6,997,070.72 — — 7,873,890.52 47,051,284.06 —
		12,605,910,301.99
		28,540,563,835.78

— 181 —

FINANCIAL INFORMATION OF JINKE PROPERTY

APPENDIX II

Item Current liabilities: Short-term borrowings Financial liabilities measured at fair value through profit or loss Derivative financial liabilities Notes payable Accounts payable Advance receipts Payroll payable Taxes payable Interest payable Dividends payable Other payables Liabilities classified as held for sale Non-current liabilities maturing within one year Other current liabilities Total current liabilities Non-current liabilities: Long-term loans Bonds payable Including: Preferred shares Perpetual bonds Long-term payables Long-term payroll payable Special payables Foreseeable liabilities Deferred earnings Deferred tax liabilities Other non-current liabilities Total non-current liabilities Total liabilities	Balance at the end of the period 500,000,000.00 — — — 46,847,079.67 9,152,706.82 41,331,937.83 31,878,257.31 295,043,031.02 4,472,222.22 18,357,203,530.19 — 7,466,447,800.00 — 26,752,376,565.06 2,742,000,000.00 5,313,257,329.71 — — — — — — 1,061,134.58 281,129,081.16 463,763,400.00 8,801,210,945.45 35,553,587,510.51	Balance at the beginning of the period — — — — 118,388,278.36 16,048,916.32 38,408,756.89 24,292,499.79 244,431,917.27 — 10,475,670,626.08 — 1,190,900,000.00 —
		12,108,140,994.71
		8,205,510,000.00 — — — — — — — 1,067,146.07 280,352,330.40 —
		8,486,929,476.47
		20,595,070,471.18

— 182 —

FINANCIAL INFORMATION OF JINKE PROPERTY

APPENDIX II

Item Owners’ equity: Share capital Other equity instruments Including: Preferred shares Perpetual bonds Capital reserve Less: Treasury shares Other comprehensive income Special reserves Surplus reserves Undistributed profits Total owners’ equity Total liabilities and owners’ equity	Balance at the end of the period 4,327,060,153.00 1,400,000,000.00 1,400,000,000.00 2,778,969,175.28 618,351,200.00 21,261,250.12 — 439,484,957.00 2,135,302,848.60 10,483,727,184.00 46,037,314,694.51	Balance at the beginning of the period 1,378,540,051.00 — — 4,274,916,595.71 — 21,261,250.12 — 291,337,386.02 1,979,438,081.75
		7,945,493,364.60
		28,540,563,835.78

— 183 —

FINANCIAL INFORMATION OF JINKE PROPERTY

APPENDIX II

3. Comprehensive income statement

			Unit: RMB
		Amount incurred	Amount incurred
		in the current	in the last
Item		period	period
I.	Total operating revenue	19,398,573,320.90	17,323,507,266.17
	Including: Operating revenue	19,398,573,320.90	17,323,507,266.17
	Interest income	—	—
	Earned premium	—	—
	Fee and commission income	—	—
II.	Total operating cost	17,731,835,123.78	16,867,066,319.18
	Including: Operating cost	13,887,003,656.98	13,336,658,521.21
	Interest expenses	—	—
	Fee and commission expense	—	—
	Surrender value	—	—
	Net amount of compensation payout	—	—
	Net amount of reserves for insurance contract	—	—
	Policy dividend payment	—	—
	Reinsurance cost	—	—
	Business taxes and surcharges	1,479,769,073.29	1,240,540,387.97
	Sales expenses	693,511,364.21	638,071,318.92
	Management expenses	922,634,484.07	719,321,145.66
	Financial expenses	268,251,960.03	162,979,839.75
	Assets impairment loss	480,664,585.20	769,495,105.67
	Add: Revenue from change in fair value
	(“-” for loss)	39,863,547.99	54,312,554.05
	Return on investment (“-” for loss)	36,838,401.09	44,747,997.06
	Including: Return on investment in associated
	enterprises and joint ventures	-5,152,881.59	29,781,399.44
	Exchange revenue
	(“-” for loss)	—	—
III.	Operating profit (“-” for loss)	1,743,440,146.20	555,501,498.10
	Add: Non-operating revenue	99,001,510.70	237,589,741.41
	Including: Gain from disposal of non-current
	assets	778,491.46	1,005,175.42
	Less: Non-operating expense	57,761,507.63	39,657,472.26
	Including: Loss from disposal of non-current
	assets	428,538.06	394,476.81
IV.	Total profit (“-” for total loss)	1,784,680,149.27	753,433,767.25
	Less: Income tax expense	551,034,068.30	-109,605,297.61

— 184 —

FINANCIAL INFORMATION OF JINKE PROPERTY

APPENDIX II

			Amount incurred	Amount incurred
			in the current	in the last
Item			period	period
V.	Net profit (“-” for net loss)		1,233,646,080.97	863,039,064.86
	Net	profit attributable to owners of the parent
	company		1,266,959,610.26	907,884,138.79
	Gains/losses of minority shareholders		-33,313,529.29	-44,845,073.93
VI.	After-tax net amount of other
	comprehensive income		26,367,941.54	39,849,817.53
	After-tax net amount of other comprehensive
	income attributable to owners of the parent
	company		26,367,941.54	34,764,389.39
	(I)	Other comprehensive income that cannot be
		reclassified into profits/losses	—	—
		1. Changes arising from re-measurement of
		net liabilities or net assets of defined
		benefit plan	—	—
		2. Share in other comprehensive income of
		the investee that cannot be reclassified
		into profits/losses under the equity
		method	—	—
	(II)	Other comprehensive income that will be
		reclassified into profits/losses	26,367,941.54	34,764,389.39
		1. Share in other comprehensive income of
		the investee that will be reclassified into
		profits/losses under the equity method	—	—
		2. Gains/losses from change in fair value of
		available-for-sale financial assets	-529,337.70	—
		3. Held-to-maturity investment reclassified
		as available-for-sale financial assets	—	—
		4. Operational factors of cash flow hedging
		gains/losses	—	—
		5. Translation difference of foreign-currency
		financial statements	—	—
		6. Others	26,367,941.54	35,293,727.09
	After-tax net amount of other comprehensive
	income attributable to minority shareholders		5,085,428.14	—
VII.	Total	comprehensive income	1,260,014,022.51	902,888,882.39
	Total	comprehensive income attributable to owners of
	the	parent company	1,293,327,551.80	942,648,528.18
	Total	comprehensive income attributable to minority
	shareholders		-33,313,529.29	-39,759,645.79

— 185 —

FINANCIAL INFORMATION OF JINKE PROPERTY

APPENDIX II

		Amount incurred	Amount incurred
		in the current	in the last
Item		period	period
VIII. Earnings per share:
(I)	Basic earnings per share	0.27	0.23
(II)	Diluted earnings per share	0.27	0.23

For merger of enterprises under the same control in the current period, net profit realized by the merged party before merger was RMB:0; net profit realized by the merged party in the last period was RMB:0.

Legal representative: Person in charge of accounting: Huang Hongyun Li Hua

Officer-in-charge of accounting institution: Liu Shaojun

— 186 —

APPENDIX II

FINANCIAL INFORMATION OF JINKE PROPERTY

1. Income statement of the parent company

			Unit: RMB
		Amount incurred	Amount incurred
		in the current	in the last
Item		period	period
I.	Operating revenue	387,060,732.72	510,724,913.79
	Less: Operating cost	49,135,425.60	118,064,611.75
	Business taxes and surcharges	15,380,923.76	-15,758,057.48
	Sales expenses	3,340,558.71	12,108,061.83
	Management expenses	242,953,839.96	240,387,022.01
	Financial expenses	-51,477,228.12	48,934,662.38
	Assets impairment loss	11,535,309.01	1,641,499.03
	Add: Revenue from change in fair value (“-” for
	loss)	4,679,402.80	34,628,039.64
	Return on investment (“-” for loss)	1,340,170,474.42	1,100,284,004.11
	Including: Return on investment in associated
	enterprises and joint ventures	5,420,474.42	2,107,366.93
II.	Operating profit (“-” for loss)	1,461,041,781.02	1,240,259,158.02
	Add: Non-operating revenue	20,087,632.88	37,231,550.72
	Including: Gain from disposal of non-current
	assets
	Less: Non-operating expense	8,962,051.61	5,952,997.10
	Including: Loss from disposal of non-current
	assets	807.86
III.	Total profit (“-” for total loss)	1,472,167,362.29	1,271,537,711.64
	Less: Income tax expense	-9,308,347.52	-64,553,022.43
IV.	Net profit (“-” for net loss)	1,481,475,709.81	1,336,090,734.07

— 187 —

FINANCIAL INFORMATION OF JINKE PROPERTY

APPENDIX II

				Amount incurred	Amount incurred
				in the current	in the last
Item				period	period
V.	After-tax		net amount of other comprehensive income	—	15,023,838.99
	(I)	Other comprehensive income that cannot be
		reclassified into profits/losses		—	—
		1.	Changes arising from re-measurement of
			net liabilities or net assets of defined
			benefit plan	—	—
		2.	Share in other comprehensive income of
			the investee that cannot be reclassified into
			profits/losses under the equity method	—	—
	(II)	Other comprehensive income that will be
		reclassified into profits/losses		—	15,023,838.99
		1.	Share in other comprehensive income of
			the investee that will be reclassified into
			profits/losses under the equity method	—	—
		2.	Gains/losses from change in fair value of
			available-for-sale financial assets	—	—
		3.	Held-to-maturity investment reclassified as
			available-for-sale financial assets	—	—
		4.	Operational factors of cash flow hedging
			gains/losses	—	—
		5.	Translation difference of foreign-currency
			financial statements	—	—
		6.	Others	—	15,023,838.99
VI.	Total	comprehensive income		1,481,475,709.81	1,351,114,573.06
VII.	Earnings		per share:
	(I)	Basic earnings per share		—	—
	(II)	Diluted earnings per share		—	—

— 188 —

FINANCIAL INFORMATION OF JINKE PROPERTY

APPENDIX II

5. Consolidated cash flow statement

Item I. Cash flows from operating activities: Cash received from sales of goods and provision of labor Net increase in deposits from customers and banks and other financial institutions Net increase in borrowings from the central bank Net increase in placements from other financial institutions Premiums received from original insurance contracts Net cash received from reinsurance business Net increase in deposits from policyholders and investment funds Net increase from disposal of financial assets measured at fair value through profit or loss Cash received from interests, fees and commissions Net increase in placements from banks and other financial institutions Net increase in repurchase business capital Tax refund received Other cash received relating to operating activities Subtotal of cash inflows from operating activities Cash paid for purchase of goods and acceptance of labor service Net increase in loans and advances to customers Net increase in deposits with central bank and other financial institutions Original insurance contract claims paid Cash paid for interests, fees and commissions Cash paid for policy dividends Cash paid to and for employees Taxes paid Other cash paid relating to operating activities Subtotal of cash outflows for operating activities Net cash flows from operating activities	Amount incurred in the current period 24,188,786,283.31 — — — — — — — — — — — 2,960,720,518.92 27,149,506,802.23 19,162,203,614.79 — — — — — 1,377,187,934.96 2,457,745,352.70 3,740,099,872.07 26,737,236,774.52 412,270,027.71	Unit: RMB Amount incurred in the last period 20,711,909,925.44 — — — — — — — — — — — 3,782,473,605.06 24,494,383,530.50 24,557,039,151.05 — — — — — 1,139,400,330.72 2,420,978,446.03 4,761,728,602.78
		32,879,146,530.58
		-8,384,763,000.08

— 189 —

FINANCIAL INFORMATION OF JINKE PROPERTY

APPENDIX II

Item II. Cash flows from investing activities: Cash received from taking back investment Cash received from return on investment Net cash received from disposal of fixed assets, intangible assets and other long-term assets Net cash received from disposal of subsidiaries and other operating units Other cash received relating to investing activities Subtotal of cash inflows from investing activities Cash paid for purchase and construction of fixed assets, intangible assets and other long-term assets Cash paid for investment Net increase in pledge loans Net cash paid for acquisition of subsidiaries and other operating units Other cash paid relating to investing activities Subtotal of cash outflows for investing activities Net cash flows from investing activities III. Cash flows from financing activities: Cash received from introducing investment Including: Cash received by subsidiaries from investments of minority shareholders Cash received for obtaining loans Cash received from issue of bonds Other cash received relating to financing activities Subtotal of cash inflows from financing activities Cash paid for repayment of debts Cash paid for distribution of dividend and profit or repayment of interest Including: Dividend and profit paid by subsidiaries to minority shareholders Other cash paid relating to financing activities Subtotal of cash outflows for financing activities Net cash flows from financing activities IV. Effect of exchange rate change on cash and cash equivalents V. Net increase in cash and cash equivalents Add: Opening balance of cash and cash equivalents VI. Ending balance of cash and cash equivalents	Amount incurred in the current period 59,900,000.00 7,169,152.73 120,758.38 — — 67,189,911.11 326,675,100.64 300,000,000.00 — 405,738,667.01 — 1,032,413,767.65 -965,223,856.54 845,751,200.00 227,400,000.00 17,797,100,000.00 5,330,100,000.00 7,649,268,672.03 31,622,219,872.03 18,316,080,000.01 3,554,807,370.95 85,740,000.00 7,036,357,161.79 28,907,244,532.75 2,714,975,339.28 2,714,975,339.28 2,162,021,510.45 5,805,282,261.64 7,967,303,772.09	Amount incurred in the last period 559,703,656.49 4,461,147.22 1,708,875.92 — —
		565,873,679.63 104,806,293.62 809,915,355.59 — 332,027,088.53 —
		1,246,748,737.74
		-680,875,058.11
		2,859,600,000.00 685,800,000.00 23,274,120,000.00 — 5,558,872,094.80 31,692,592,094.80 11,965,494,672.00 2,674,531,925.89 23,184,644.41 6,894,458,765.81
		21,534,485,363.70
		10,158,106,731.10
		10,158,106,731.10 1,092,468,672.91 4,712,813,588.73
		5,805,282,261.64

— 190 —

FINANCIAL INFORMATION OF JINKE PROPERTY

APPENDIX II

6. Cash flow statement of the parent company

Item I. Cash flows from operating activities: Cash received from sales of goods and provision of labor Tax refund received Other cash received relating to operating activities Subtotal of cash inflows from operating activities Cash paid for purchase of goods and acceptance of labor service Cash paid to and for employees Taxes paid Other cash paid relating to operating activities Subtotal of cash outflows for operating activities Net cash flows from operating activities II. Cash flows from investing activities: Cash received from taking back investment Cash received from return on investment Net cash received from disposal of fixed assets, intangible assets and other long-term assets Net cash received from disposal of subsidiaries and other operating units Other cash received relating to investing activities Subtotal of cash inflows from investing activities Cash paid for purchase and construction of fixed assets, intangible assets and other long-term assets Cash paid for investment Net cash paid for acquisition of subsidiaries and other operating units Other cash paid relating to investing activities Subtotal of cash outflows for investing activities Net cash flows from investing activities	Amount incurred in the current period 380,580,415.27 35,026,490,223.04 35,407,070,638.31 52,578,854.14 174,759,553.97 57,947,882.45 40,009,856,491.16 40,295,142,781.72 -4,888,072,143.41 10,000,000.00 1,375,611,952.43 268,579.31 4,315,526.75 — 1,375,611,952.43 10,256.41 1,313,000,000.00 — 1,500,000,000.00 2,813,010,256.41 -1,437,398,303.98	Unit: RMB Amount incurred in the last period 422,069,949.98 27,926,289,810.25
		28,348,359,760.23 159,799,872.28 160,644,339.64 183,323,035.93 31,669,072,978.89
		32,172,840,226.74
		-3,824,480,466.51
		— 4,461,147.22 — — —
		19,045,253.28 4,608,583.09 3,236,232,830.19 — —
		3,240,841,413.28
		-3,221,796,160.00

— 191 —

FINANCIAL INFORMATION OF JINKE PROPERTY

APPENDIX II

Item III. Cash flows from financing activities: Cash received from introducing investment Cash received for obtaining loans Cash received from issue of bonds Other cash received relating to financing activities Subtotal of cash inflows from financing activities Cash paid for repayment of debts Cash paid for distribution of dividend and profit or repayment of interest Other cash paid relating to financing activities Subtotal of cash outflows for financing activities Net cash flows from financing activities IV. Effect of exchange rate change on cash and cash equivalents V. Net increase in cash and cash equivalents Add: Opening balance of cash and cash equivalents VI. Ending balance of cash and cash equivalents	Amount incurred in the current period 618,351,200.00 3,529,000,000.00 5,330,100,000.00 1,411,457,500.00 10,888,908,700.00 2,371,550,000.00 1,365,929,232.18 29,450,000.00 3,766,929,232.18 7,121,979,467.82 — 796,509,020.43 816,926,451.10 1,613,435,471.53	Amount incurred in the last period 2,173,800,000.00 8,445,860,000.00 — —
		10,619,660,000.00 2,634,230,000.00 729,615,550.56 —
		3,363,845,550.56
		7,255,814,449.44
		— 209,537,822.93 607,388,628.17
		816,926,451.10

— 192 —

APPENDIX II

FINANCIAL INFORMATION OF JINKE PROPERTY

Unit: RMB			Minority	shareholders’ Total owners’	equity equity		2,636,263,997.06 13,166,210,320.44			— —			— —			2,636,263,997.06 13,166,210,320.44				-152,163,987.01 2,171,891,668.64		-33,313,529.29 1,260,014,022.51		-33,110,457.72 1,347,956,987.11		302,956,936.54 302,956,936.54			— 1,400,000,000.00			— 7,097,450.57	-336,067,394.26 -362,097,400.00
				Undistributed	profits		6,292,813,928.44			—			—			6,292,813,928.44				-58,651,332.70		1,266,959,610.26		—		—			—			—	—
			General	risk	reserves		—			—			—			—				—		—		—		—			—			—	—
				Surplus	reserves		161,768,591.16			—			—			161,768,591.16				148,147,570.98		—		—		—			—			—	—
				Special	reserves		—			—			—			—				—		—		—		—			—			—	—
	Current period	Equity attributable to owners of the parent company	Less: Other	Capital Treasury comprehensive	reserves shares income Others		— 2,102,318,777.08 — 594,504,975.70			— — — —			— — — —			— 2,102,318,777.08 — 594,504,975.70				— -1,521,977,426.17 618,351,200.00 26,367,941.54		— — — 26,367,941.54		— 407,978,644.83 618,351,200.00 —		— 426,911,200.00 618,351,200.00 —			— — — —			— 7,097,450.57 — —	— -26,030,005.74 — —
			Other equity instruments	Preferred Perpetual	shares bonds		— —			— —			— —			— —				— 1,400,000,000.00		— —		— 1,400,000,000.00		— —			— 1,400,000,000.00			— —	— —
					Share capital		1,378,540,051.00			—			—			1,378,540,051.00				2,948,520,102.00		—		191,440,000.00		191,440,000.00			—			—	—
					Item	I. Ending balance of last	year	Add: Changes in accounting		policies	Correction of previous errors	Merger of enterprises under	the same control	Others	II. Opening balance of	the current year	III. Increase/decrease of the	current period (“-” for		decrease)	(I) Total comprehensive	income	(II) Owners’ capital injected	and reduced	1. Ordinary shares invested	by shareholders	2. Capital invested by	holders of other equity	instruments	3. Amounts of share-based	payments included in	owners’ equity	4. Others

— 193 —

APPENDIX II

FINANCIAL INFORMATION OF JINKE PROPERTY

		Minority	shareholders’ Total owners’	equity equity	-85,740,000.00 -436,079,340.98		— —		— —		-85,740,000.00 -436,079,340.98	— —		— —			— —			— —		— —	— —	— —		— —	— —	— —		2,484,100,010.05 15,338,101,989.08
			Undistributed	profits	-498,486,911.96		148,147,570.98		—		-350,339,340.98	—		-827,124,031.00			—			—		—	-827,124,031.00	—		—	—	—		6,234,162,595.74
		General	risk	reserves	—		—		—		—	—		—			—			—		—	—	—		—	—	—		—
			Surplus	reserves	148,147,570.98		148,147,570.98		—		—	—		—			—			—		—	—	—		—	—	—		309,916,162.14
			Special	reserves	—		—		—		—	—		—			—			—		—	—	—		—	—	—		—
Current period	Equity attributable to owners of the parent company	Less: Other	Capital Treasury comprehensive	reserves shares income Others	— — — —		— — — —		— — — —		— — — —	— — — —		— -1,929,956,071.00 — —			— -1,929,956,071.00 — —			— — — —		— — — —	— — — —	— — — —		— — — —	— — — —	— — — —		— 580,341,350.91 618,351,200.00 620,872,917.24
		Other equity instruments	Preferred Perpetual	shares bonds	— —		— —		— —		— —	— —		— —			— —			— —		— —	— —	— —		— —	— —	— —		— 1,400,000,000.00
				Share capital	—		—		—		—	—		2,757,080,102.00			1,929,956,071.00			—		—	827,124,031.00	—		—	—	—		4,327,060,153.00
				Item	(III) Profit distribution	1. Withdrawal of surplus	reserves	2. Withdrawal of general	risk reserves	3. Distribution to owners	(or shareholders)	4. Others	(IV) Internal carryover of	owners’ equity	1. Transfer of capital	reserves into paid-in	capital (or share capital)	2. Transfer of surplus	reserves into paid-in	capital (or share capital)	3. Surplus reserves for	making up losses	4. Others	(V) Special reserves	1. Withdrawal in the current	year	2. Use in the current period	(VI) Others	IV. Ending balance of the	current period

— 194 —

APPENDIX II

FINANCIAL INFORMATION OF JINKE PROPERTY

Unit: RMB			Minority	shareholders’ Total owners’	equity equity		2,075,349,155.87 9,927,513,685.22			— —	— —		— —	— —		2,075,349,155.87 9,927,513,685.22				560,914,841.19 3,238,696,635.22		-39,759,645.79 902,888,882.39		623,859,131.39 2,498,017,203.36		281,715,920.43 2,454,048,750.62			— —			— —	342,143,210.96 43,968,452.74
				Undistributed	profits		5,657,563,669.18			—	—		—	—		5,657,563,669.18				635,250,259.26		907,884,138.79		—		—			—			—	—
			General	risk	reserves		—			—	—		—	—		—				—		—		—		—			—			—	—
				Surplus	reserves		301,114,786.54			—	—		—	—		301,114,786.54				-139,346,195.38		—		-272,955,268.79		—			—			—	-272,955,268.79
				Special	reserves		—			—	—		—	—		—				—		—		—		—			—			—	—
	Last period	Equity attributable to owners of the parent company	Less: Other	Capital Treasury comprehensive	reserves shares income		175,205,436.32 — 559,740,586.31			— — —	— — —		— — —	— — —		175,205,436.32 — 559,740,586.31				1,927,113,340.76 — 34,764,389.39		— — 34,764,389.39		1,927,113,340.76 — —		1,952,332,830.19 — —			— — —			— — —	-25,219,489.43 — —
					Others		—			—	—		—	—		—				—		—		—		—			—			—	—
			Other equity instruments	Preferred Perpetual	shares bonds		— —			— —	— —		— —	— —		— —				— —		— —		— —		— —			— —			— —	— —
					Share capital		1,158,540,051.00			—	—		—	—		1,158,540,051.00				220,000,000.00		—		220,000,000.00		220,000,000.00			—			—	—
					Item	I. Ending balance of	last year	Add: Changes in accounting		policies	Correction of previous errors	Merger of enterprises under	the same control	Others	II. Opening balance of the	current year	III. Increase/decrease of the	current period (“-” for		decrease)	(I) Total comprehensive	income	(II) Owners’ capital injected	and reduced	1. Ordinary shares invested	by shareholders	2. Capital invested by	holders of other equity	instruments	3. Amounts of share-based	payments included in	owners’ equity	4. Others

— 195 —

APPENDIX II

FINANCIAL INFORMATION OF JINKE PROPERTY

		Minority	shareholders’ Total owners’	equity equity	-23,184,644.41 -162,209,450.53		— —		— —		-23,184,644.41 -162,209,450.53	— —		— —			— —			— —		— —	— —	— —		— —	— —	— —		2,636,263,997.06 13,166,210,320.44
			Undistributed	profits	-272,633,879.53		-133,609,073.41		—		-139,024,806.12	—		—			—			—		—	—	—		—	—	—		6,292,813,928.44
		General	risk	reserves	—		—		—		—	—		—			—			—		—	—	—		—	—	—		—
			Surplus	reserves	133,609,073.41		133,609,073.41		—		—	—		—			—			—		—	—	—		—	—	—		161,768,591.16
			Special	reserves	—		—		—		—	—		—			—			—		—	—	—		—	—	—		—
Last period	Equity attributable to owners of the parent company	Less: Other	Capital Treasury comprehensive	reserves shares income	— — —		— — —		— — —		— — —	— — —		— — —			— — —			— — —		— — —	— — —	— — —		— — —	— — —	— — —		2,102,318,777.08 — 594,504,975.70
				Others	—		—		—		—	—		—			—			—		—	—	—		—	—	—		—
		Other equity instruments	Preferred Perpetual	shares bonds	— —		— —		— —		— —	— —		— —			— —			— —		— —	— —	— —		— —	— —	— —		— —
				Share capital	—		—		—		—	—		—			—			—		—	—	—		—	—	—		1,378,540,051.00
				Item	(III) Profit distribution	1. Withdrawal of surplus	reserves	2. Withdrawal of general	risk provisions	3. Distribution to owners	(or shareholders)	4. Others	(IV) Internal carryover of	owners’ equity	1. Transfer of capital	reserves into paid-in	capital (or share capital)	2. Transfer of surplus	reserves into paid-in	capital (or share capital)	3. Surplus reserves for	making up losses	4. Others	(V) Special reserves	1. Withdrawal in the current	year	2. Use in the current period	(VI) Others	IV. Ending balance of the	current period

— 196 —

APPENDIX II

FINANCIAL INFORMATION OF JINKE PROPERTY

		Unit: RMB		Total	Undistributed owners’	profits equity	1,979,438,081.75 7,945,493,364.60	— —	— —	— —	1,979,438,081.75 7,945,493,364.60		155,864,766.85 2,538,233,819.40	1,481,475,709.81 1,481,475,709.81	— 1,407,097,450.57		— —		— 1,400,000,000.00		— 7,097,450.57	— —	-498,486,911.96 -350,339,340.98	-148,147,570.98 —	-350,339,340.98 -350,339,340.98	— —	-827,124,031.00 —		— —		— —	— —	-827,124,031.00 —	— —	— —	— —	— —	2,135,302,848.60 10,483,727,184.00
					Surplus	reserves	291,337,386.02	—	—	—	291,337,386.02		148,147,570.98	—	—		—		—		—	—	148,147,570.98	148,147,570.98	—	—	—		—		—	—	—	—	—	—	—	439,484,957.00
					Special	reserves	—	—	—	—	—		—	—	—		—		—		—	—	—	—	—	—	—		—		—	—	—	—	—	—	—	—
				Other	comprehensive	income	21,261,250.12	—	—	—	21,261,250.12		—	—	—		—		—		—	—	—	—	—	—	—		—		—	—	—	—	—	—	—	21,261,250.12
			Current period	Less:	Treasury	shares	—	—	—	—	—		618,351,200.00	—	618,351,200.00		618,351,200.00		—		—	—	—	—	—	—	—		—		—	—	—	—	—	—	—	618,351,200.00
8. Statement of changes in owners’ equity of the parent company	Amount in the current period		Item	Other equity instruments	Share Capital Preferred Perpetual	capital reserves shares bonds Others	I. Ending balance of last year 1,378,540,051.00 — — — 4,274,916,595.71	Add: Changes in accounting policies — — — — —	Correction of previous errors — — — — —	Others — — — — —	II. Opening balance of the current year 1,378,540,051.00 — — — 4,274,916,595.71	III. Increase/decrease of the current period	(“-” for decrease) 2,948,520,102.00 — 1,400,000,000.00 — -1,495,947,420.43	(I) Total comprehensive income — — — — —	(II) Owners’ capital injected and reduced 191,440,000.00 — 1,400,000,000.00 — 434,008,650.57	1. Ordinary shares invested by	shareholders 191,440,000.00 — — — 426,911,200.00	2. Capital invested by holders of other	equity instruments — — 1,400,000,000.00 — —	3. Amounts of share-based payments	included in owners’ equity — — — — 7,097,450.57	4. Others — — — — —	(III) Profit distribution — — — — —	1. Withdrawal of surplus reserves — — — — —	2. Distribution to owners (or shareholders)) — — — — —	3. Others — — — — —	(IV) Internal carryover of owners’ equity 2,757,080,102.00 — — — -1,929,956,071.00	1. Transfer of capital reserves into paid-in	capital (or share capital) 1,929,956,071.00 — — — -1,929,956,071.00	2. Transfer of surplus reserves into paid-in	capital (or share capital) — — — — —	3. Surplus reserves for making up losses — — — — —	4. Others 827,124,031.00 — — — —	(V) Special reserves — — — — —	1. Withdrawal in the current year — — — — —	2. Use in the current period — — — — —	(VI) Others — — — — —	IV. Ending balance of the current period 4,327,060,153.00 — 1,400,000,000.00 — 2,778,969,175.28

— 197 —

APPENDIX II

FINANCIAL INFORMATION OF JINKE PROPERTY

Unit: RMB		Total	Undistributed owners’	profits equity	915,981,227.21 4,561,070,767.47	— —		— —	— —	915,981,227.21 4,561,070,767.47		1,063,456,854.54 3,384,422,597.13	1,336,090,734.07 1,336,090,734.07	— 2,187,356,669.18		— 2,172,332,830.19		— —		— —	— —	-272,633,879.53 -139,024,806.12	-133,609,073.41 —	-139,024,806.12 -139,024,806.12	— —	— —		— —		— —	— —	— —	— —	— —	— —	— —	1,979,438,081.75 7,945,493,364.60
			Surplus	reserves	157,728,312.61	—		—	—	157,728,312.61		133,609,073.41	—	—		—		—		—	—	133,609,073.41	133,609,073.41	—	—	—		—		—	—	—	—	—	—	—	291,337,386.02
			Special	reserves	—	—		—	—	—		—	—	—		—		—		—	—	—	—	—	—	—		—		—	—	—	—	—	—	—	—
		Other	comprehensive	income	6,237,411.13	—		—	—	6,237,411.13		15,023,838.99	—	15,023,838.99		—		—		—	—	—	—	—	—	—		—		—	—	—	—	—	—	—	21,261,250.12
	Last period	Less:	Treasury	shares	—	—		—	—	—		—	—	—		—		—		—	—	—	—	—	—	—		—		—	—	—	—	—	—	—	—
			Capital	reserves	2,322,583,765.52	—		—	—	2,322,583,765.52		1,952,332,830.19	—	1,952,332,830.19		1,952,332,830.19		—		—	—	—	—	—	—	—		—		—	—	—	—	—	—	—	4,274,916,595.71
				Others	—	—		—	—	—		—	—	—		—		—		—	—	—	—	—	—	—		—		—	—	—	—	—	—	—	—
		Other equity instruments	Preferred Perpetual	shares bonds	— —	— —		— —	— —	— —		— —	— —	— —		— —		— —		— —	— —	— —	— —	— —	— —	— —		— —		— —	— —	— —	— —	— —	— —	— —	— —
			Share	capital	1,158,540,051.00	—		—	—	1,158,540,051.00		220,000,000.00	—	220,000,000.00		220,000,000.00		—		—	—	—	—	—	—	—		—		—	—	—	—	—	—	—	1,378,540,051.00
	Item				I. Ending balance of last year	Add: Changes in accounting policies		Correction of previous errors	Others	II. Opening balance of the current year	III. Increase/decrease of the current period	(“-” for decrease)	(I) Total comprehensive income	(II) Owners’ capital injected and reduced	1. Ordinary shares invested by	shareholders	2. Capital invested by holders of other	equity instruments	3. Amounts of share-based payments	included in owners’ equity	4. Others	(III) Profit distribution	1. Withdrawal of surplus reserves	2. Distribution to owners (or shareholders)	3. Others	(IV) Internal carryover of owners’ equity	1. Transfer of capital reserves into paid-in	capital (or share capital)	2. Transfer of surplus reserves into paid-in	capital (or share capital)	3. Surplus reserves for making up losses	4. Others	(V) Special reserves	1. Withdrawal in the current year	2. Use in the current period	(VI) Others	IV. Ending balance of the current period

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APPENDIX II

Notes to Financial Statements of Jinke Property Group Co., Ltd.

2015

Unit: RMB

I. General information about the Company

Formerly Chongqing Dong Yuan Industry Development Co., Ltd. (formerly known as Chongqing Dong Yuan Steel Co., Ltd.), Jinke Property Group Co., Ltd. (hereinafter referred to as the Company) was established upon restructuring from the former Forth Iron and Steel Plant of Chongqing Iron and Steel Company as approved by Chongqing Municipal People’s Government in Doc. Chong Fu Fa (1986) No. 290 and was registered with Chongqing Administration for Industry and Commerce on 29 March 1994, with its headquarters in Jiangbei District, Chongqing. The Company now holds the business license with unified social credibility code: 91500000202893468X, its registered capital is 4,327,060,153.00, and the total shares are 4,327,060,153 (with a par value of RMB1 each), including 678,270,487 tradable shares with sale limitations and 3,648,789,666 tradable shares without sale limitations.

As a real estate developer, the Company mainly engages in real estate development, property management, installation of mechanical and electrical equipment (the abovementioned operating activities should be carried out with qualification certificate); sales of buildings, decorative materials and chemicals (excluding hazardous chemicals) and hardware; rental of self-owned houses; corporate management consulting service, imports & exports of goods and technologies (for items prohibited by laws and regulations, relevant operating activities should not be carried out; for items restricted by laws and regulations, relevant operating activities may be carried out only after relevant license or approval is obtained). Main products or labor services provided include sales of real estate, wind power investment and development, property management, hotel operation, landscaping engineering, doors & windows engineering, decoration engineering, and sales of materials.

The Financial Statements were approved to be disclosed to the public at the 28th meeting of the 9th Board of Directors of the Company on 26 March 2016. The Company incorporated 130 subsidiaries including Chongqing Jinke Real Estate Development Co., Ltd., Chongqing Jinke Industrial Group Hongjing Real Estate Development Co., Ltd. and Chongqing Jinke Junyao Real Estate Development Co., Ltd. into the scope of the consolidated financial statements for the current period, with details set out in the change of consolidation scope and description of interests in other entities in the notes to the Financial Statements.

II. Basis for preparation of the financial statements

(I) Preparation basis

The Company’s financial statements are prepared on the going-concern basis.

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(II) Evaluation of going-concern ability

The Company is not involved in any events or conditions that may cast significant doubt about the going-concern assumptions for 12 months after the end of the reporting period.

III. Critical accounting policies and accounting estimates

Important notice: The Company has formulated specific accounting policies and accounting estimates for transactions or events including withdrawal of provision for bad debts of receivables, depreciation of fixed assets, amortization of intangible assets, revenue recognition according to the actual production and operation characteristics.

(I) Statement of compliance with the Accounting Standards for Business Enterprises

The financial statements prepared by the Company comply with the Accounting Standards for Business Enterprises and give a true and complete view of the financial position, operating results and cash flow of the Company.

(II) Accounting period

The Company takes the Gregorian calendar year as the fiscal year, i.e. from 1 January to 31 December.

(III) Operation cycle

The Company mainly develops real estate products for sale and rental, and its operation cycle is usually from land purchase to completion and sale or rental of developed products and recovery of cash or cash equivalents, usually longer than 12 months.

(IV) Recording currency

The Company uses Renminbi as the recording currency.

(V) Accounting for merger of enterprises under and not under the same control

1. Accounting for merger of enterprises under the same control

The assets and liabilities acquired by the Company through merger with other enterprise are measured as per the book value of the merged party in the consolidated financial statements of the ultimate controller on the date of merger. The Company adjusts the capital reserve based on the difference between the share of the book value of the owners’ equity of the merged party in the consolidated financial statements of the ultimate controller and the book value of the paid consideration for merger or the aggregate book value of shares issued; in case of capital reserve insufficient for writedown, the retained earnings will be adjusted.

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1. Accounting for merger of enterprises not under the same control

The difference of the merger cost of the Company above the share of the fair value of identifiable net assets of the acquired party obtained through merger on the date of acquisition is recognized as goodwill; in case of the difference of the merger cost of the Company below the share of the fair value of identifiable net assets of the acquired party obtained through merger, the measurement of the fair value of various obtained identifiable assets, liabilities and contingent liabilities of the acquired party and the merger cost should be reviewed first, and if the merger cost is still lower than the share of the fair value of identifiable net assets of the acquired party obtained through merger after review, the difference is stated as current gain/loss.

(VI) Preparation method of consolidated financial statements

The parent company incorporates all subsidiaries under its control into the consolidation scope of the consolidated financial statements. Based on the financial statements of the parent company and subsidiaries thereof, the consolidated financial statements are prepared by the parent company according to other relevant data and the Accounting Standard for Business Enterprises No. 33 — Consolidated Financial Statements .

(VII) Classification of joint arrangement and accounting for joint operation

1. Joint arrangement is classified as either a joint operation or a joint venture.

2. When the Company is a joint operator, the following items relating to the interests in the joint operation are recognized:

3. (1) Recognize the assets held separately, as well as the assets held jointly as per the shares;

4. (2) Recognize the liabilities assumed separately, as well as liabilities shared commonly as per the shares;

5. (3) Recognize the revenue from sales of shares of the joint operation held by the Company;

6. (4) Recognize the revenue from sales of assets of the joint operation as per the shares held by the Company;

7. (5) Recognize the expenses incurred separately, as well as expenses incurred to the joint operation as per the shares held by the Company.

(VIII) Standards for determining cash and cash equivalents

Cash stated in the cash flow statement refers to cash on hand and deposits that can be readily withdrawn on demand. Cash equivalent refers to investment that is short in term, highly mobile, easily convertible into given amount of cash and subject to an insignificant risk of change in value.

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• (IX) Translation of foreign currency businesses and foreign currency financial statements

1. Translation of foreign currency businesses

At the time of initial recognition, foreign currency transactions are translated into RMB amount at the spot exchange rate on the date of transaction. On the balance sheet date, foreign currency monetary items are translated at the spot exchange rate on that date, and the exchange difference arising from different exchange rates is stated as current gain/loss except the exchange difference arising from the specific-purpose foreign currency loan principals and interests relating to setup of assets meeting the capitalization conditions; foreign currency non-monetary items measured at historical cost are translated at the spot exchange rate on the date of transaction, without changing its RMB amount; foreign currency non-monetary items measured at fair value are translated at the spot exchange rate on the date of determination of fair value, with the difference stated as current gain/loss or other comprehensive income.

2. Translation of foreign currency financial statements

The assets and liabilities in the balance sheet are translated at the spot exchange rate on the balance sheet date; the owners’ equity excluding “undistributed profit” is translated at the spot exchange rate on the date of transaction; and the revenues and expenses in the income statement are translated at the exchange rate approximate to the spot exchange rate on the date of transaction. The aforesaid translation differences in foreign currency financial statements are stated as other comprehensive income.

(X) Financial instruments

1. Classification of financial assets and financial liabilities

At the time of initial recognition, financial assets are classified into financial assets measured at fair value through profit or loss (including tradable financial assets and financial assets specified to be measured at fair value through profit or loss at the time of initial recognition), held-to-maturity investments, loans and receivables, and available-for-sale financial assets.

At the time of initial recognition, financial liabilities are classified into financial liabilities measured at fair value through profit or loss (including tradable financial liabilities and financial liabilities specified to be measured at fair value through profit or loss at the time of initial recognition), and other financial liabilities.

2. Recognition basis, measurement method and conditions for derecognition of financial assets and financial liabilities

A financial asset or financial liability is recognized when the Company becomes a party to the contract of financial instrument. At the time of initial recognition, financial assets or financial

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liabilities are measured at fair value; the relevant transaction expenses relating to financial assets and financial liabilities measured at fair value through profit or loss are directly stated as current gains/losses; the relevant transaction expenses relating to other financial assets or financial liabilities are stated as initially recognized amount.

The Company makes subsequent measurement on the financial assets at fair value and does not deduct any transaction expenses arising in future due to disposal of the financial assets, except in the following circumstances:

• (1) held-to-maturity investments and loans and receivables are measured at amortized cost by the actual interest rate;

• (2) equity instrument investment which has no quote in an active market and the fair value of which cannot be measured reliably and derivative financial assets that relate to the equity instrument and should be settled by delivery of the equity instrument are measured on the basis of cost.

The Company makes subsequent measurement on the financial liabilities at amortized cost by the actual interest rate, except in the following circumstances:

• (1) financial liabilities measured at fair value through profit or loss are measured at fair value, and any transaction expenses which may arise at the settlement of financial liabilities in future are not deducted;

• (2) derivative financial instruments, which relate to equity instrument which has no quote in an active market and the fair value of which cannot be measured reliably, and which should be settled by delivery of the equity instrument are measured on the basis of cost;

• (3) for the financial guarantee contracts which are not financial liabilities designated to be measured at fair value through profit or loss, or the loan commitments which are not designated to be measured at fair value through profit or loss and which will enjoy a loan interest rate lower than the market level, a subsequent measurement should be made by the higher of the following two amounts after the initial recognition:

• 1) amount determined according to the Accounting Standard for Business Enterprises No. 13 — Contingencies ; and

• 2) balance of the initially recognized amount minus the accumulative amortization amount determined according to the Accounting Standard for Business Enterprises No. 14 — Revenue .

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Gains or losses arising from change in fair value of financial assets or financial liabilities other than those relating to hedging are disposed of as follows:

• (1) gains or losses arising from change in the fair value of financial assets or financial liabilities measured at fair value through profit or loss are stated as revenues from change in fair value; interest or cash dividend obtained while the assets are held is recognized as return on investment; at the time of disposal, the difference between the amount actually received and the amount initially entered into account is recognized as return on investment, and the revenue from change in fair value is adjusted at the same time.

• (2) Change in fair value of available-for-sale financial assets is stated as other comprehensive income; interest calculated by actual interest rate method during the holding period is stated as return on investment; cash dividend of available-for-sale equity instrument investment is stated as return on investment when the invested entity announces distribution of dividend; at the time of disposal, the difference between the amount actually received and the book value minus the accumulative amount of the change in fair value originally stated as owners’ equity is stated as return on investment.

If the contract right to collect cash flow from a certain financial asset is terminated or if almost all the risks and returns relating to the ownership of the financial asset have been transferred, the financial asset should be derecognized; if the current obligation of a financial liability is exempted in part or in whole, the financial liability or part thereof should be derecognized accordingly.

3. Recognition basis and measurement method of transfer of financial assets

If the Company has transferred almost all the risks and returns relating to the ownership of a financial asset to the transferee, it should derecognize the financial asset; if the Company reserves almost all the risks and returns relating to the ownership of a financial asset, it should continue to recognize the transferred financial asset and recognize the consideration received as a financial liability. If the Company has neither transferred nor reserved almost all the risks and returns relating to the ownership of a financial asset, relevant disposal should be made as follows, respectively:

• (1) if the Company gives up the control over the financial asset, it should derecognize the financial asset;

• (2) if the Company does not give up the control over the financial asset, it should recognize the relevant financial asset according to the extent of its continuous involvement in the transferred financial asset, and the relevant liability should be recognized accordingly.

If the transfer of an entire financial asset satisfies the conditions for derecognition, the difference between the amounts of the following two items should be stated as current gain/loss:

• (1) the book value of the transferred financial asset;

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APPENDIX II

• (2) the sum of consideration received from the transfer and the accumulative amount of the change in the fair value originally stated as owners’ equity.

If the transfer of partial financial asset satisfies the conditions for derecognition, the entire book value of the transferred financial asset should, between the portion which has been derecognized and the portion which has not been derecognized, be amortized according to their respective fair values, and the difference between the amounts of the following two items should be stated as current gain/loss:

• (1) the book value of the portion which has been derecognized;

• (2) the sum of consideration of the portion which has been derecognized and the accumulative amount of the change in fair value originally stated as owners’ equity, corresponding to the portion which has been derecognized.

• Determination methods of fair value of financial assets and financial liabilities

The Company uses evaluation techniques which apply to the current circumstance and are supported by enough available data and other information to determine the fair value of relevant financial assets and financial liabilities. The Company divides the input values used by evaluation techniques into the following levels and uses them in sequence:

• (1) The input value at the first level is the unadjusted quote in an active market for the same assets or liabilities which can be obtained on the date of measurement;

• (2) The input value at the second level is the directly or indirectly observable input value of relevant assets or liabilities other than the input value at the first level, including quote for similar assets or liabilities in an active market; quote for identical or similar assets or liabilities in a market that is not active; other observable input value other than quote, e.g. interest rates and yield curves observable at commonly quoted intervals; market-corroborated input value;

• (3) The input value at the third level is the unobservable input value of relevant assets or liabilities, including interest rate which cannot be observed directly or corroborated by observable market data, stock volatility, future cash flow of retirement obligation assumed during merger of enterprises, financial forecast made based on its own data, etc.

• Impairment test of financial assets and method of withdrawal of provision for impairment

• (1) The Company should check the book value of financial assets other than those measured at fair value through profit or loss on the balance sheet date, and the provision for impairment should be withdrawn if there is objective evidence showing the financial assets have suffered impairment.

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• (2) For held-to-maturity investments, loans and receivables, the financial asset whose amount is significant individually should experience the independent impairment test; the financial asset whose amount is insignificant individually may experience the impairment test independently or be included in portfolios of financial assets with similar credit risk features so as to carry out an impairment test; if, upon the independent test, the financial assets (including those financial assets whose amount is significant individually) have not been impaired, they should be included in portfolios of financial assets with similar credit risk features so as to conduct an impairment test. If the test result shows impairment has happened, the impairment loss is determined as per the difference of the book value above the expected future cash flow.

• (3) Available-for-sale financial assets

• 1) Objective evidence showing investment in available-for-sale debt investment has been impaired includes:

  • ① Serious financial difficulty of the debtor;

  • ② A breach of contract by the debtor, such as a default or delay in interest or principal payment;

  • ③ The Company, for economic and legal reasons relating to the debtor’s financial difficulty, granting a concession to the debtor;

  • ④ It becoming probable that the debtor will enter bankruptcy or other financial reorganization;

  • 5 The disappearance of an active market for the debt instrument because of financial difficulties of the debtor;

  • ⑥ Other evidence showing the available-for-sale debt instrument has been impaired.

• 2) Objective evidence showing available-for-sale equity instrument investment has been impaired includes the significant or non-transient drop in the fair value of investment in equity instrument and significant adverse change in the technical, market, economic or legal environment, etc. in which the invested entity operates, indicating that the cost of the investment may not be recovered by the Company.

The Company conducts independent check on various available-for-sale equity instrument investments on the balance sheet date. For the equity instrument investment measured at cost, the Company determines whether the equity instrument has been impaired factoring whether the technical, market, economic or legal environment in which the invested entity operates, experiences significant adverse change.

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If the available-for-sale equity instrument measured at cost has been impaired, the difference between the book value of the equity instrument investment and the present value of the future cash flow discounted at the current market yield rate of similar financial assets is recognized as impairment loss and stated as current gain/loss, and the impairment loss incurred should not be restated once recognized.

(XI) Receivables

1. Receivables whose amount is significant individually and for which provision for bad debts is withdrawn individually

Basis or amount standard for determining RMB10 million or above a receivable with significant amount Withdrawal method for receivables whose Impairment test is conducted separately, and amount is significant individually and provision for bad debts is withdrawn as per for which provision for bad debts is the difference of the present value of the withdrawn individually future cash flow below the book value.

1. Receivables for which the provision for bad debts is withdrawn by combination of credit risk features

2. (1) Specific combination and withdrawal method for provision for bad debts

Basis for combination determination

Age combination Receivables with same account age have similar credit risk features Deposit combination Deposits Combination of transactions with Receivables of connected parties in the connected parties in the consolidation consolidation scope scope

Withdrawal method for provision for bad debts by combination of credit risk features

Age combination Age analysis method Deposit combination Impairment test is conducted separately, and provision for bad debts is withdrawn as per the difference of the present value of the future cash flow below the book value.

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FINANCIAL INFORMATION OF JINKE PROPERTY

Combination of transactions with connected parties in the consolidation scope

Impairment test is conducted separately, and provision for bad debts is withdrawn as per the difference of the present value of the future cash flow below the book value.

• (2) Age analysis method

	Withdrawal
	percentage of	Withdrawal
	accounts receivable	percentage of other
Age	(%)	receivables (%)
Within 1 year (inclusive, same below)	1	1
1-2 years	5	5
2-3 years	20	20
3-5 years	50	50
Above 5 years	100	100

1. Receivables whose amount is insignificant individually but for which provision for bad debts is withdrawn individually

Reasons for withdrawing provision for The present value of the future cash flow of bad debts individually receivables significantly differs from that of the receivable combination with age as credit risk feature

Withdrawal method for provision for bad Provision for bad debts is withdrawn as per debts the difference of the present value of the future cash flow below the book value.

For other receivables including notes receivable, interests receivable, long-term receivables, provision for bad debts is withdrawn as per the difference of the present value of the future cash flow below the book value.

(XII) Inventories

1. Classification of inventories

Inventories include the land for development held for sale or use during development and operation, developed products, developed products which are intended to be sold but are temporarily rented, products to be developed, short-term house, material inventory, equipment inventory and low-value consumables, as well as development cost during development. In particular, the products to be developed refer to the land which has been purchased and is determined to be developed into the completed, developed product. If the project is developed as a whole, the products to be developed should be fully stated in the development cost; if the project is developed by phase, the land for phased development should be partially stated in the development cost, and the undeveloped land in later phase is kept in the product to be developed.

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APPENDIX II

1. Method for appraising outgoing inventories

2. (1) Outgoing materials and equipment should be appraised by weighted average method at the end of month.

3. (2) During project development, the land for development should be amortized as per the land area of the developed products and be stated in the development cost of the project.

4. (3) Accounting for the developed products should be carried out by floor area averaging method.

5. (4) The developed products which are intended to be sold but are temporarily rented and the short-term houses are amortized evenly on a straight line basis over the expected service life of the Company’s fixed assets of the same type.

6. (5) If the public supporting facilities are completed earlier than relevant developed products, after completion settlement, the public supporting facilities should be amortized as per floor area of relevant development project and be stated in the development cost of relevant development project; if the public supporting facilities are completed later than relevant developed products, the expenses for public supporting facilities should be accrued by relevant developed products first, and then the cost of relevant developed product should be adjusted as per the difference between the actual amount and the accrued amount after completion settlement of the public supporting facilities.

3. Determination basis of net realizable value of inventories and withdrawal method for provision of inventory depreciation

On the balance sheet date, inventories are measured by the lower of cost and net realizable value, and provision for inventory depreciation is withdrawn as per the difference by which the inventory cost is higher than the net realizable value. The net realizable values of inventories for direct sales are determined by the estimated selling prices of the inventories minus estimated sales expenses and related taxes during normal production and operation; the net realizable values of inventories needing to be processed are determined by the estimated selling prices of finished goods made from the said inventories minus the estimated costs to be incurred until completion, estimated sales expenses and related taxes during normal production and operation; in case the price of part of an inventory is specified in the contract but that of the other parts under the same account is not specified in the contract by the balance sheet date, their net realizable values are determined separately and compared with their corresponding costs in order to determine the amount for withdrawal or reversal of provision for inventory depreciation.

1. Stocktaking system for inventories

Stocktaking is based on perpetual inventory system.

1. Amortization of low-value consumables

Low-value consumables are amortized by lump sum.

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APPENDIX II

(XIII) Assets classified as held-for-sale assets

The Company classifies the non-current assets (excluding financial assets) meeting the following conditions as held-for-sale assets:

1. the component part must be available for immediate sales under the current conditions merely according to general and common terms on sale of the component part;

2. a resolution has been made regarding disposal of the component part;

3. an irrevocable transfer agreement has been signed with the transferee;

4. the transfer is very likely to be completed within a year.

(XIV) Long-term equity investment

1. Determination of joint control and significant influence

Joint control is the contractually agreed sharing of control over an arrangement, and exists only when the activities relating to the arrangement require the unanimous consent of the parties sharing control. Significant influence is the power to participate in decisions of the financial and operating policies of the invested entity but is not control or joint control over formulation of those policies with other parties.

1. Determination of investment cost

2. (1) Regarding merger of enterprises under the same control, the merging party takes cash payment, transfer of non-cash assets, bearing of liability, or issue of equity securities as consideration for merger, the book value of owners’ equity of the merged party obtained on the date of merger in the consolidated financial statements of the ultimate controller is taken as the initial investment cost thereof. The capital reserve is adjusted as per the difference between the initial investment cost of the long-term equity investments and the book value of the paid consideration for merger or the aggregate book value of shares issued; in case of capital reserve insufficient for writedown, the retained earnings will be adjusted.

When long-term equity investment is obtained through merger of enterprises under the same control achieved by multiple transactions in stages, the Company determines whether it is a “package deal”. If it is a “package deal”, various transactions are considered as a transaction for acquisition of control in accounting. If it is not a “package deal”, on the date of merger, the initial investment cost is recognized at the share of the book value of net assets of the merged party in the consolidated financial statements of the ultimate controller. The capital reserve is adjusted as per the difference between the initial investment cost of the long-term equity investments on the date of merger and the sum of the book value of the long-term equity investment before merger and the book value of the paid consideration for the newly acquired shares on the date of merger; in case of capital reserve insufficient for writedown, the retained earnings will be adjusted.

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• (2) For the merger of enterprises not under the same control, the fair value of the paid consideration for merger is taken as the initial investment cost on the date of acquisition. When the long-term equity investment is obtained through merger of enterprises not under the same control achieved by multiple transactions in stages, the Company determines whether it is stated in a stand-alone financial statement or the consolidated financial statements in accounting.

• 1) In a stand-alone financial statement, the sum of the book value of the previously held equity investments and the new investment cost is taken as the initial investment cost stated by cost method.

• 2) In the consolidated financial statements, the Company determines whether it is a “package deal”. If it is a “package deal”, various transactions are considered as a transaction for acquisition of control in accounting. If it is not a “package deal”, for the equity of the acquired party held before the date of acquisition should be re-measured at the fair value of the equity on the date of acquisition, and the difference between the fair value and the book value is stated as current return on investment; if the equity of the acquired party held before the date of acquisition involves other comprehensive income stated by equity method, other comprehensive income relating thereto should be reclassified as current revenue on the date of acquisition, excluding other comprehensive income arising from change in net liabilities or net assets from remeasurement of defined benefit plan by the invested party.

• (3) Long-term equity investment obtained through ways other than merger of enterprises: For acquisition by cash payment, the acquisition price actually paid is taken as the initial investment cost; for acquisition by issue of equity securities, the fair value of the equity securities issued is taken as the initial investment cost; for acquisition by debt reorganization, the initial investment cost is determined in accordance with the Accounting Standard for Business Enterprises No. 12 — Debt Reorganization ; for acquisition by exchange of non-monetary assets, the initial investment cost is determined in accordance with the Accounting Standard for Business Enterprises No. 7 — Exchange of Non-monetary Assets .

3. Subsequent measurement and method for recognizing gain/loss

Long-term investments in invested entities are stated using the cost method; long-term investments in associated enterprises and joint ventures are stated using the equity method.

1. Accounting for disposal of investments in subsidiaries through multiple transactions in stages, resulting in loss of control

2. (1) Stand-alone financial statement

The difference between the book value of the disposed equity and the consideration actually obtained is stated as current gain/loss. The residual equity in the invested entities with material impact

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or joint control with other party is stated by the equity method; the residual equity in the invested entities without control, joint control or material impact is recognized as financial assets and stated in accordance with relevant provisions of the Accounting Standard for Business Enterprises No. 22 — Recognition and Measurement of Financial Instruments .

• (2) Consolidated financial statements

• 1) Disposal of investments in subsidiaries through multiple transactions in stages resulting in loss of control, which transactions are not “package deal”. Before loss of control, the capital reserve (capital premium) should be adjusted as per the difference between the disposal price and net asset share continuously calculated as from the date of acquisition or merger and held in the subsidiaries after disposal of long-term equity investment. If the capital premium is insufficient for writedown, the retained earnings should be written down. If the control over the original subsidiaries is lost, the remaining equity should be recalculated as per its fair value on the date when the control is lost. The difference obtained after the sum of consideration obtained from disposal of equity and fair value of the remaining equity is subtracted by the share of net assets that are continuously calculated as per the original shareholding percentage as from the date of acquisition or merger and should be enjoyed in the original subsidiaries should be stated as investment income in the period when the control is lost and be used for writedown of goodwill. Other comprehensive income related to the original subsidiaries’ equity investment should be converted into current investment income at the time of loss of control.

• 2) Disposal of investments in subsidiaries through multiple transactions in stages resulting in loss of control, which transactions are “package deal”. Various transactions should be accounted by taking them as a deal of disposal of the subsidiaries resulting in loss of control. However, before loss of control, the difference between each disposal consideration and net asset share that should be enjoyed in the subsidiaries after disposal of investment should be recognized as other comprehensive income in the consolidated financial statements and be converted into current gain/loss at the time of loss of control.

(XV) Investment properties

1. Investment properties include the right to use land already rented, the right to use land held and prepared for transfer after appreciation and buildings already rented.

2. Investment properties are initially measured at cost and subsequently measured as per the fair value pattern. For investment properties subsequently measured as per the fair value pattern, the basis for selection of accounting policies is:

3. (1) There is an active real estate transaction market at the location of the investment properties.

4. (2) The Company can obtain the market price and other relevant information of the same type or similar type of real estate from the real estate transaction market, so as to make a reasonable estimate of the fair value of the investment properties.

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The Company neither withdraws provisions for depreciation of investment properties nor amortizes investment properties. It adjusts the book values of the investment properties based on their fair values on the balance sheet date and the difference between fair value and the original book value should be stated as current gain/loss.

When the Company has concrete evidence showing that the purpose of the investment properties is changed and transforms the investment properties into self-used properties, the book value of the self-used properties is the fair value on the date of transformation and the difference between the fair value and the original book value should be stated as current gain/loss. When the Company transforms self-used properties or inventories into investment properties measured as per the fair value pattern, the investment properties should be measured as per the fair value on the date of transformation. If the fair value on the date of transformation is less than the original book value, the difference should be stated as current gain/loss. If the fair value on the date of transformation is more than the original book value, the difference should be stated as capital reserve.

(XVI) Fixed assets

1. Conditions for recognition of fixed assets

Fixed assets are tangible assets held for the purpose of commodity production, labor provision, lease or operation management and used for more than one fiscal year. Fixed assets are recognized when economic benefits are likely to flow in and their costs can be measured reliably.

2. Method of depreciation of fixed assets

		Term of		Annual
		depreciation	Residual	depreciation
Category	Method of depreciation	(year)	rate (%)	rate (%)
Houses and buildings	Average service life method	35	5	2.71
House and building	Average service life method	6		16.67
decoration
Machinery equipment	Average service life method	10	5	9.5
Power generation and	Average service life method	20	5	4.75
relevant equipment
Electronic equipment	Average service life method	5	5	19
Household appliances	Average service life method	5	5	19
Means of transport	Average service life method	5	5	19
Other equipment	Average service life method	5	5	19

(XVII) Construction in progress

1. Construction in progress is recognized when economic benefits are likely to flow in and their costs can be measured reliably. Construction in progress is measured as per the actual cost incurred before the said assets built reach their intended condition for use.

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1. When the construction in progress has reached the intended condition for use, it will be treated as fixed assets as per the actual construction cost. If the construction in progress has reached the intended condition for use but completion accounting is not carried out, the construction in progress should be first treated as fixed assets as per the estimated value. After completion accounting is carried out, the original estimated value should be adjusted as per the actual cost, but the provision for depreciation withdrawn should not be adjusted.

(XVIII)Borrowing costs

1. Principle for recognition of capitalization of borrowing costs

If the borrowing costs incurred to the Company can be directly attributed to purchase and construction or production of assets qualified for capitalization, they should be capitalized and stated as relevant asset costs. Other borrowing costs should be recognized as expenses at the time of incurrence and stated as current gains/losses.

1. Capitalization period of borrowing costs

2. (1) When the borrowing costs meet the following conditions simultaneously, they should be capitalized: 1) asset expenditure has occurred; 2) borrowing cost has occurred; 3) the purchase and construction or production activities needed for bringing the assets into their intended condition for use or sale have been commenced.

3. (2) If the purchase and construction or production of the assets qualified for capitalization are discontinued abnormally, and the discontinuation lasts for over three months, capitalization of the borrowing costs should be suspended. Borrowing costs incurred during discontinuation should be recognized as current expenses until the purchase and construction or production activities resume.

4. (3) When the assets qualified for capitalization under purchase and construction or production reach their intended condition for use or sale, capitalization of the borrowing costs should be ceased.

5. Capitalization rate and amount of borrowing costs

If special loans are borrowed for purchase and construction or production of assets qualified for capitalization, the amount obtained after the interest expenses (including amortization of discount or premium determined by the effective interest rate method) actually incurred in the period when the special loans are borrowed are subtracted by the interest income from depositing the unused borrowings in the bank or investment income from temporary investment with the unused borrowings should be recognized as the interest amount that should be capitalized. If the general loans are occupied for the purchase and construction or production of assets qualified for capitalization, the interest amount of general loans that should be capitalized should be calculated and determined based on the weighted average of the surplus between accumulated asset expenditure and the asset expenditure of special loans times the capitalization rate of the occupied general loans.

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(XIX) Intangible assets

1. Intangible assets including land use right, software and trademark right should be initially measured as per cost.

2. Intangible assets with limited service life should be amortized systematically and reasonably in their service lives as per the expected form of realization of economic benefits relating to the said intangible assets. If the form of realization cannot be reliably determined, the intangible assets should be amortized on a straight-line basis. Specific service lives are as follows:

	Amortization
Item	period (year)
Land use right	30-50
Software	5
Trademark right	5

(XX) Impairment of some long-term assets

If there are signs that impairment of long-term assets such as long-term equity investments, fixed assets, construction in progress and intangible assets with limited service life may occur on the balance sheet date, their recoverable amount should be estimated. Regarding goodwill resulting from business merger and intangible assets with indefinite service life, impairment test should be conducted every year regardless whether there is any sign of impairment. The goodwill should, together with the related asset group or combination of asset group, be subject to the impairment test.

If the recoverable amount of the abovementioned long-term assets is lower than their book value, the difference should be recognized as provision for impairment and stated as current gain/loss.

(XXI) Long-term prepaid expenses

Long-term expenses refer to expenses incurred which have an amortization term of more than one year (exclusive). Long-term prepaid expenses are stated at the amount actually incurred, and amortized evenly by stages in the benefit period or specified period. If long-term prepaid expenses are not beneficial to subsequent accounting periods, the remaining value of the items after amortization should be stated as current gain/loss.

(XXII) Remuneration of employees

1. Remuneration of employees includes short-term remuneration, post-employment benefits, termination benefits and other long-term employee benefits.

2. Accounting for short-term remuneration: during the accounting period when the employees serve the Company, the short-term remuneration actually incurred should be recognized as liability and stated as current gain/loss or relevant asset cost.

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1. Accounting for post-employment benefits: post-employment benefits include defined contribution plan and defined benefit plan.

2. (1) During the accounting period when the employees serve the Company, the amount to be contributed as calculated according to the defined contribution plan should be recognized as liabilities and stated as current gain/loss or relevant asset cost.

3. (2) Accounting for defined benefit plan should usually include the following procedures:

   • 1) According to the expected cumulative unit credit method, relevant demographic variable and financial variable should be estimated based on unbiased and mutually consistent actuarial assumption, so as to calculate the obligations resulting from the defined benefit plan and determine the period of relevant obligations. Meanwhile, the obligations resulting from the defined benefit plan are discounted so as to determine the present value of obligations resulting from the defined benefit plan and current service cost;

   • 2) If the defined benefit plan has assets, the deficit or surplus obtained after the present value of obligations resulting from the defined benefit plan is subtracted by the fair value of assets of the defined benefit plan should be recognized as a net liability or net asset of the defined benefit plan. If the defined benefit plan has surplus, the net assets of the defined benefit plan should be measured based on the lower of surplus and asset limit of the defined benefit plan;

   • 3) At the end of the period, the employee remuneration cost resulting from the defined benefit plan should be recognized as service cost, net interest of net liabilities or net assets of the defined benefit plan, and change resulting from recalculation of net liabilities or net assets of the defined benefit plan. In particular, the service cost and the net interest of the net liabilities or net assets of the defined benefit plan should be stated as current gain/loss or relevant asset cost. Change resulting from recalculation of the net liabilities or net assets of the defined benefit plan should be stated as other comprehensive income and should not be converted into gain/loss in subsequent accounting period, but the amount recognized as other comprehensive income may be transferred within the equity scope.

4. Accounting for termination benefit: regarding termination benefits provided to the employees, liabilities of employee remuneration resulting from termination benefits should be recognized at the earlier of the following dates and stated as current gains/losses:

5. (1) when the Company cannot unilaterally cancel the termination benefits provided due to cancellation of labor relation plans or cutdown proposals;

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• (2) when the Company recognizes costs or expenses relating to restructuring involving payment of termination benefits.

• Accounting for other long-term employee benefits

If other long-term benefits provided to employees comply with defined contribution plan, accounting should be carried out according to the relevant provisions of the defined contribution plan;

Other long-term benefits should be accounted according to the relevant provisions of the defined benefit plan. To simplify accounting, the employee remuneration cost arising therefrom should be recognized as service cost, and the sum of the net interest of net liabilities or net assets of other long-term employee benefits and change resulting from recalculation of net liabilities or net assets of other long-term employee benefits should be stated as current gain/loss or relevant asset cost.

(XXIII) Estimated liabilities

1. Obligations resulting from contingencies such as provision of external guarantee, litigation matters, product quality assurance and loss contract are present obligations of the Company. Performance of the said obligations may lead to outflow of economic benefits from the Company. Moreover, when the amount of the said obligations can be measured reliably, the Company should recognize the obligations as estimated liabilities.

2. The Company should initially measure the estimated liabilities based on the best estimate it needs to pay for performance of relevant present obligations and review the book value of the estimated liabilities on the balance sheet date.

(XXIV) Share-based payment

1. Type of share-based payment

Share-based payment consists of equity-settled share-based payment and cash-settled share-based payment.

1. Relevant accounting for implementation, revision and termination of share-based payment plans

2. (1) Equity-settled share-based payment

As to an equity-settled share-based payment in return for services of employees, if the right may be exercised immediately after the grant, the fair value of the equity instruments should, on the date of grant, be stated as the relevant cost or expense and the capital reserves should be adjusted accordingly. As to an equity-settled share-based payment in return for services of employees, if the right cannot be exercised until the vesting period comes to an end or until the prescribed performance conditions are met, then on each balance sheet date within the vesting period, the services obtained in the current period should, based on the best estimate of the number of vested equity instruments, be stated as relevant costs or expenses at the fair value of the equity instruments on the date of grant and the capital reserves should be adjusted accordingly.

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Regarding equity-settled share-based payment in return for services of other parties, if the fair value of the service of any other party can be measured reliably, the equity-settled share-based payment should be measured as per the fair value of the service of the other party on the date of acquisition. If the fair value of the service of any other party cannot be measured reliably, but the fair value of the equity instruments can be measured reliably, the equity-settled share-based payment should be measured as per the fair value of the equity instruments on the date of the service acquisition and be stated as relevant cost or expense, and the owner’s equities should be increased accordingly.

(2) Cash-settled share-based payment

As to a cash-settled share-based payment in return for services of employees, if the right may be exercised immediately after the grant, the cash-settled share-based payment should be stated as relevant cost or expense as per the fair value of the liabilities undertaken by the Company on the date of grant, and the liabilities should be increased accordingly. As to a cash-settled share-based payment in return for services of employees, if the right cannot be exercised until the vesting period comes to an end or until the prescribed performance conditions are met, on each balance sheet date within the vesting period, the services obtained in the current period should, based on the best estimate of the information about the exercisable right, be stated as relevant costs or expenses and the corresponding liabilities at the fair value of the liabilities undertaken by the Company.

(3) Revision and termination of the share-based payment plans

If the revision leads to increase in the fair value of the equity instruments granted, the Company should recognize the increase of the services obtained according to the increase in the fair value of the equity instruments. If the revision leads to increase in the number of the equity instruments granted, the Company should recognize the fair value of the increased equity instruments as increase of the services obtained. If the Company changes the vesting conditions in a mode favourable to the employees, the Company should take into account the vesting conditions after change in dealing with the vesting conditions.

If the revision leads to decrease in the fair value of the equity instruments granted, the Company should continue to recognize the amount of the services obtained based on the fair value of the equity instruments on the date of grant, without considering the decrease in the fair value of the equity instruments. If the revision leads to decrease in the number of equity instruments, the Company should regard the decrease as cancellation of the equity instruments granted. If the Company changes the vesting conditions in a mode unfavourable to the employees, the Company may not consider the vesting conditions after change in dealing with the vesting conditions. If the Company cancels or settles the equity instruments granted in the vesting period (except for cancellation due to failure to meet vesting conditions), the Company should speed up dealing with the exercisable right based on the cancellation or settlement and immediately recognize the amount to be recognized in the remaining vesting period.

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FINANCIAL INFORMATION OF JINKE PROPERTY

(XXV) Other financial instruments including preferred stocks and perpetual bonds

According to standards relating to financial instruments and Provisions on the Distinction between Financial Liability and Equity Instruments and the Relevant Accounting Treatment (Cai Kuai [2014] No. 13), regarding the financial instruments like perpetual bonds, the Company should, according to the contract terms of the financial instruments issued and the economic essence they reflect rather than based on legal form only, and with reference to the definitions of financial assets, financial liabilities and equity instruments, classify such financial assets or their constituents as financial assets, financial liabilities or equity instruments at the time of initial recognition.

On the balance sheet date, regarding financial instruments classified as equity instruments, their interest expense or dividend payout should be used for the Company’s profit distribution and their repurchase and cancellation should be taken as equity change; regarding financial instruments classified as financial liabilities, their interest expense or dividend payout should be taken as borrowing cost and the gains or losses resulting from their repurchase or redemption should be stated as current gains/losses.

(XXVI) Accounting for maintenance funds

According to the relevant provisions at the location of the developed projects, the maintenance funds should be withdrawn and stated by the Company as development costs of relevant developed projects at the time of sale (presale) of the developed projects and uniformly turned in to the maintenance fund management department.

(XXVII) Accounting for quality assurance funds

The quality assurance funds should be deducted from the project payment for the construction unit according to the construction contracts. Maintenance expense incurred in the warranty period of the developed projects should be written down by the quality assurance funds. The balance of the quality assurance funds should be returned to the construction unit upon expiry of the specified warranty period of the developed projects.

(XXVIII) Revenue

1. Revenue from real estate sales

When the developed projects are completed and pass acceptance inspection, the sales contract is signed, the obligations specified in the contract are fulfilled, the major risks and rewards concerning the ownership of the developed projects are transferred to the buyers, the Company should no longer reserve continuous management right generally related to ownership or implement effective control over the developed projects sold. That is, when the procedures for delivery of houses are completed or the customers can be deemed as having received the houses according to the conditions specified in the sales contract, the amount of revenue can be measured reliably and relevant economic benefits are likely to flow in, namely, the buyers’ payment proof is obtained (usually, it means the down payment in the sales contact has been received and the arrangements for the remaining house payment have been confirmed), and relevant costs incurred or to be incurred can be measured reliably, sales revenue should be recognized.

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Sale of self-used houses: When major risks and rewards concerning the ownership of the self-used houses are transferred to the buyers, the Company should not reserve continuous management right generally related to ownership or implement effective control over the developed projects sold. When the amount of revenue can be measured reliably, relevant economic benefits are likely to flow in, and relevant costs incurred or to be incurred can be measured reliably, the sales revenue should be recognized.

2. Sales of commodities

Revenue from sales of commodities should be recognized when the following conditions are simultaneously satisfied: (1) the major risks and rewards concerning the ownership of the commodities are transferred to the buyers; (2) the Company no longer reserves the continuous management right generally related to ownership, or implements effective control over the commodities sold; (3) the amount of revenue can be measured reliably; (4) relevant economic benefits are likely to flow in; (5) relevant costs incurred or to be incurred can be measured reliably.

3. Provision of labor

If the transaction result of provision of labor can be measured reliably on the balance sheet date (the amount of revenue can be measured reliably, relevant economic benefits are likely to flow in, the progress of completion of transaction can be determined reliably, and the costs incurred and to be incurred can be measured reliably), the revenue from provision of labor should be recognized by the percentage-of-completion method. If the transaction result of provision of labor cannot be measured reliably on the balance sheet date, and the labor cost incurred can be made up upon prediction, the amount of the labor cost incurred should be recognized as revenue from provision of labor and the labor cost should be carried over as per the same amount. If the labor cost incurred cannot be made up upon prediction, the labor cost incurred should be stated as current gain/loss and the labor revenue should not be recognized.

Regarding property management, the property management revenue should be recognized when the property management service has been provided, the economic benefits relating to property management may flow into the enterprise and the costs relating to property management can be measured reliably.

4. Transfer of right to use assets

Revenue from transfer of right to use assets should be recognized when relevant economic benefits are likely to flow in and the amount of revenue can be measured reliably. Interest revenue should be determined as per the time of use of the Company’s monetary funds by others and the actual interest rate. Royalty revenue should be calculated and determined as per the charging time and method specified in relevant contract or agreement.

Regarding property lease, revenue from property lease should be recognized as per the lease term and rent specified in the lease contract or agreement when relevant economic benefits are likely to flow in.

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5. Construction contracts

If the result of the construction contracts can be measured reliably on the balance sheet date, the contract revenue and contract expenses should be recognized by the percentage-of-completion method. If the result of the construction contracts cannot be measured reliably on the balance sheet date, and the contract cost can be recovered, the contract revenue should be recognized as per the actual contract cost that can be recovered and the contract cost should be recognized as contract expense in the period when it is incurred. If the contract cost cannot be recovered, it should be immediately recognized as contract expense when it is incurred and the contract revenue should not be recognized.

If the estimated total contract cost exceeds the total contract revenue on the balance sheet date, the estimated loss should be recognized as current expense. Regarding construction contracts under performance, the difference thereof should be withdrawn for provisions for inventory depreciation. Regarding onerous contract to be performed, the difference thereof should be recognized as estimated liability.

Operating revenue of houses and projects subject to agency construction should be recognized by the percentage-of-completion method when an irrevocable construction contract has been signed for the houses and projects subject to agency construction, the economic benefits relating to the houses and projects subject to agency construction can flow into the enterprise, the stage of completion of the houses and projects subject to agency construction can be measured reliably, and the relevant costs of the houses and projects subject to agency construction can be measured reliably.

6. Revenue from electricity sales

Revenue from electricity sales should be recognized when the electricity is supplied to the provincial grid company at the location of the power plant. The Company should recognize the amount of revenue from electricity sales as per the fair value of the received or receivable contract or agreement price.

7. Revenue from other businesses

According to the provisions of relevant contract or agreement, revenue from other businesses should be recognized when the economic benefits relating to the transaction can flow into the enterprise and the revenue-related cost can be measured reliably.

(XXIX) Government subsidies

1. Judgment basis and accounting for assets-related government subsidies

The assets-related government subsidies refer to the government subsidies obtained by the Company and used for purchasing and constructing or otherwise forming long-term assets. The assets-related government subsidies are recognized as deferred incomes, evenly allocated in the service life of relevant assets, and stated as current gains/losses. However, the government subsidies measured as per nominal amount are directly stated as current gains/losses.

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1. Judgment basis and accounting for income-related government subsidies

The income-related government subsidies refer to government subsidies other than assets-related government subsidies. The income-related government subsidies should be recognized as deferred incomes if they are used for making up relevant expenses or losses in the subsequent period and should be stated as current gains/losses during the period when relevant expenses are recognized. The income-related government subsidies used for making up relevant expenses or losses incurred should be directly stated as current gains/losses.

(XXX) Deferred tax assets and deferred tax liabilities

1. According to the difference between the book values of the assets and liabilities and their tax basis (if the tax basis for items not recognized as assets and liabilities can be determined according to tax law, the difference is that between the tax basis and their book values), the deferred tax assets or deferred tax liabilities should be calculated and recognized as per the prevailing tax rate during the period when the assets are expected to be recovered or the liabilities are liquidated.

2. Deferred tax assets should be recognized when it is likely to obtain the taxable income used for deducting a deductible temporary difference. If, on the balance sheet date, there is concrete evidence showing that it is likely to obtain sufficient taxable income for deducting a deductible temporary difference in the future, the deferred tax assets unrecognized in the previous accounting periods should be recognized.

3. If, upon review of the book value of the deferred tax assets on the balance sheet date, it is unlikely to obtain sufficient taxable income for deducting the benefit of deferred tax assets in the future, the book value of the deferred tax assets should be written down. If sufficient taxable income is likely to be obtained, the amount written down will be restated.

4. The Company’s current income tax and deferred income tax should be taken as income tax expense or gain and stated as current gain/loss, but income tax resulting from the following circumstances should be excluded:

5. (1) M&A of enterprise;

6. (2) transactions or matters directly recognized in the owner’s equity.

(XXXI) Operating lease

If the Company is a lessee, the rent should be stated as relevant asset cost or recognized as current gain/loss on a straight-line basis in various periods of the lease period, and the initial direct cost should be directly stated as current gain/loss. Contingent rents should be stated as current gains/losses when they are actually incurred. If the Company is a lessor, the rent should be stated as current gain/loss on a straight-line basis in various periods of the lease period, and the initial direct expense incurred should be directly stated as current gain/loss except the large amount that will be capitalized and stated as gain/loss by stages. Contingent rents should be stated as current gains/losses when they are actually incurred.

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IV. Taxes

(I) Principal taxes and tax rates

Taxes	Tax basis	Tax rates
VAT	Sale of goods or provision of	3%, 6%, 13%, 17%
	taxable services
Business tax	Taxable turnover	3%, 5%
Land VAT	Appreciation value resulting	30%-60% of super-rate
	from paid transfer of use right	progressive tax rate
	of state-owned land, and
	property right of above-ground
	structures and other attachments
	Prepaid VAT: payment for	1%-5% of the payment for
	commodity houses collected in	commodity houses collected in
	advance	advance
Property tax	For ad valorem collection, 1.2%	1.2%, 12%
	of the remaining value after 30%
	of the original value of the
	property is deducted by lump
	sum; for rent-based collection,
	12% of the rental income
Municipal maintenance and	Amount of turnover tax payable	5%, 7%
construction tax
Education surcharge	Amount of turnover tax payable	3%
Local education surcharge	Amount of turnover tax payable	2%
Corporate income tax	Taxable income	16.5%, 25%

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Corporate income tax rate of taxpayers entitled to different tax rates

	Income tax
Name of taxpayer	rate
Chongqing Jinke Real Estate Development Co., Ltd. (hereinafter referred to	15%
as Chongqing Jinke)
Chongqing Bozhan Real Estate Development Co., Ltd. (hereinafter referred to	15%
as Bozhan Real Estate)
Chongqing Jinke Xingju Real Estate Co., Ltd. (hereinafter referred to as	15%
Xingju Real Estate)
Chongqing Zhongxun Property Development Co., Ltd. (hereinafter referred to	15%
as Zhongxun Property)
Chongqing Tianyuansheng Real Estate Development Co., Ltd. (hereinafter	15%
referred to as Tianyuansheng Real Estate)
Chongqing Bishan Jinke Zhongxi Real Estate Co., Ltd. (hereinafter referred	15%
to as Zhongxi Real Estate)
Chongqing Jiale Jiulong Real Estate Development Co., Ltd. (hereinafter	15%
referred to as Jiale Jiulong)
Chongqing Jinke Junyao Real Estate Development Co., Ltd. (hereinafter	15%
referred to as Junyao Real Estate)
Chongqing Jinke Shangzun Real Estate Co., Ltd. (hereinafter referred to as	15%
Shangzun Real Estate)
Chongqing Jinke Tuhong Real Estate Co., Ltd. (hereinafter referred to as	15%
Tuhong Real Estate)
Chongqing Jiangjin Jinke Guojun Real Estate Co., Ltd. (hereinafter referred	15%
to as Guojun Real Estate)
Chongqing Jinke Chenju Real Estate Co., Ltd. (hereinafter referred to as	15%
Chenju Real Estate)
Chongqing Jinke Juncheng Real Estate Development Co., Ltd. (hereinafter	15%
referred to as Juncheng Real Estate)
Chongqing Hongjing Real Estate Development Co., Ltd. (hereinafter referred	15%
to as Hongjing Real Estate)
Chongqing Jinke Changjin Real Estate Co., Ltd. (hereinafter referred to as	15%
Changjin Real Estate)
Chongqing Jinke Hotel Co., Ltd. (hereinafter referred to as Jinke Hotel)	15%
Chongqing Kelsinki Landscaping Co., Ltd. (hereinafter referred to as	15%
Kelsinki)
Chongqing Zhanhong Landscaping Co., Ltd. (hereinafter referred to as	15%
Zhanhong Landscaping)
Chongqing Qingke Trading Co., Ltd. (hereinafter referred to as Qingke	15%
Trading)
Jinke Property Services Group Limited (hereinafter referred to as Jinke	15%
Property)
Xinjiang Huaran Oriental New Energy Co., Ltd. (hereinafter referred to as	[Note 1]
Xinjiang Huaran)
Jinyu Holdings Group Co., Ltd. (hereinafter referred to as Jinyu Holdings)	[Note 2]

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Name of taxpayer

Income tax rate

Hong Kong Junde International Trade Co., Limited (hereinafter referred to as
Hong Kong Junde)	16.5%
Other taxpayers than the abovementioned ones	25%

[Note 1] Refer to the tax preferences for taxes in the notes to the financial statements for details.

[Note 2] Jinyu Holdings is registered in British Virgin Islands and regularly pays annual government fees according to the laws and regulations of British Virgin Islands.

(II) Tax preferences

1. VAT

According to the Notice about Policies regarding the Value Added Tax on Products Made through Comprehensive Utilization of Resources and Other Products (Cai Shui [2008] No. 156) issued by the Ministry of Finance and the State Administration of Taxation, the VAT on the power projects generated by Xinjiang Huaran with wind power is subject to policy of 50% immediate refund upon collection.

2. Enterprise income tax

According to the Catalogue of Industries Encouraged to Develop in the Western Region (Fa Gai Wei Ling No. 15 [2014]) and Directory Catalogue on Readjustment of Industrial Structure (Version 2011) (Revised) issued by National Development and Reform Commission, Notice on Tax Policy Issues Concerning Further Implementing the Western China Development Strategy (Cai Shui No. 58 [2011]) of the Ministry of Finance and the State Administration of Taxation and relevant replies from competent tax authorities, in 2015 an enterprise income tax rate of 15% was temporarily imposed on Chongqing Jinke, Bozhan Real Estate, Xingju Real Estate, Zhongxun Property, Tianyuansheng Real Estate, Zhongxi Real Estate, Jiale Jiulong, Junyao Real Estate, Shangzun Real Estate, Tuhong Real Estate, Guojun Real Estate, Chenju Real Estate, Juncheng Real Estate, Hongjing Real Estate, Changjin Real Estate, Jinke Hotel, Kelsinki, Zhanhong Landscaping, Qingke Trading and Jinke property.

According to NDRC’s Reply Concerning Approval of 2 Million KW Wind Power Project in Southeast Wind Region in Hami, Xinjiang (Fa Gai Neng Yuan No. 2561 [2012]), Yandun-based 6[th] Wind Power Plant Project was invested and constructed by Xinjiang Huaran. Xinjiang Huaran’s main business is “generation and supply of electric power (wind power)”, which falls under the “new wind power generation projects” under the category of electric power of List of Public Infrastructure Projects Enjoying Enterprise Income Tax Preferences (Version 2008) . Therefore, Xinjiang Huaran was exempt from enterprise income tax from 2014 (when it obtained the first revenue) to 2016 and was allowed a 50% reduction in enterprise income tax from 2017 to 2019.

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(III) Others

According to the Enterprise Income Tax Law of the People’s Republic of China , the branches of Jinke Property shall, on a consolidated basis, declare and pay enterprise income tax to the tax authority where Jinke Property is registered. These branches include Beijing Branch, Wuxi Branch, Jiangyin Branch, Kaixian Branch, Chenzhou Branch, Hunan Branch, Chengdu Branch, Neijiang Branch, Suzhou Branch, Fuling Branch, Wujiang Branch, Nantong Branch, Zhangjiagang Branch, Shandong Branch, Rugao Branch, Wuxi Nanchang Branch, West Chongqing Branch, Beijing Changping Branch, Shaanxi Branch, Wujiaqu Property Company, Zunyi Branch, Qingdao Branch and Yunnan Branch. Jinke Property and its Chongqing Branch, Sichuan Branch and Shaanxi Branch shall pay enterprise income tax at a rate of 15% and other branches at a rate of 25%.

V. Notes to items in the consolidated financial statement

• (I) Notes to items in the consolidated balance sheet

• Monetary funds

Item Amount at the end of the period Cash on hand 833,758.55 Bank deposit 7,966,470,013.54 Other monetary funds 1,421,884,489.74 Total 9,389,188,261.83 Including: Total of deposits with overseas bank 900,544.91	Amount at the beginning of the period 1,223,580.13 5,804,058,681.51 1,721,849,342.67 7,527,131,604.31
	1,019,777.25

(2) Other descriptions

Other monetary funds (RMB1,421,884,489.74) include RMB 1,114,804,489.74 of cash deposit and RMB307,080,000.00 of fixed deposit receipt, which were restricted in use and were not stated as cash and cash equivalents.

2. Notes receivable

• (1) Details

Item Amount at the end of the period Book balance Provision for bad debts Book value Bank acceptance bill 50,000.00 50,000.00 Total 50,000.00 50,000.00	Amount at the beginning of the period Book balance Provision for bad debts Book value 15,300,000.00 15,300,000.00 15,300,000.00 15,300,000.00	Amount at the beginning of the period Book balance Provision for bad debts Book value 15,300,000.00 15,300,000.00 15,300,000.00 15,300,000.00
		15,300,000.00

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• (2) At the end of the period the Company had endorsed or discounted notes receivable not mature by the balance sheet date

	Amount	Amount not
	derecognized at the	derecognized at the
Item	end of the period	end of the period
Bank acceptance bill	4,446,000.00	—
Subtotal	4,446,000.00	—

The acceptor of bank acceptance bills is commercial bank. Since commercial banks are relatively reliable and the possibility is slim that bank acceptance bills will not be accepted when they come due, the Company had derecognized endorsed or discounted bank acceptance bills. However, if these bills are not accepted when they fall due, the Company will bear joint liability to the bill holder according to Negotiable Instruments Law of the People’s Republic of China .

3. Accounts receivable

• (1) Details

• 1) Classified details

		**Amount **	**at the end of **	**the **	period
			Provision for		Provision
	Book balance		bad debts		withdrawal
		Percentage			percentage
Classification	Amount	(%)	Amount		(%)		Book value
Receivables whose amount is
significant individually and for
which provision for bad debts
is withdrawn individually	124,973,640.00	16.31	1,249,736.40		1.00		123,723,903.60
Receivables for which provision
is withdrawn for bad debts in
portfolio by credit risks	641,425,178.91	83.69	36,103,261.17		5.63		605,321,917.74
Receivables whose amount is
insignificant individually but
for which provision for bad
debts is withdrawn individually	—	—		—		—	—
Total	766,398,818.91	100.00	37,352,997.57		4.87		729,045,821.34

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FINANCIAL INFORMATION OF JINKE PROPERTY

(Continued)

		**Amount **	**at the end of the **	period
			Provision for	Provision
	Book balance		bad debts	withdrawal
		Percentage		percentage
Classification	Amount	(%)	Amount	(%)	Book value
Receivables whose amount is
significant individually and for
which provision for bad debts
is withdrawn individually
Receivables for which provision
is withdrawn for bad debts in
portfolio by credit risks	732,311,933.05	100.00	23,303,753.91	3.18	709,008,179.14
Receivables whose amount is
insignificant individually but
for which provision for bad
debts is withdrawn individually
Total	732,311,933.05	100.00	23,303,753.91	3.18	709,008,179.14

• 2) Accounts receivable whose amount is significant individually and for which provision for bad debts is withdrawn individually by the end of the period

			Provision
		Provision	withdrawal	Reason for
	Book	for bad	percentage	provision
Item name	balance	debts	(%)	withdrawal
Subsidy for surcharge on	124,973,640.00	1,249,736.40	1.00	Risks of such
electricity generated				monies are
from renewable energy				controllable
sources
Subtotal	124,973,640.00	1,249,736.40	1.00

— 228 —

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FINANCIAL INFORMATION OF JINKE PROPERTY

• 3) Accounts receivable for which provision is withdrawn for bad debts as per age analysis method in portfolio

Age Within 1 year 1-2 years 2-3 years 3-5 years Over 5 years Subtotal	Amount at the end of the period Book balance Provision for bad debts Provision withdrawal percentage (%) 456,455,106.81 4,564,551.07 1.00 135,753,878.37 6,787,693.92 5.00 15,509,912.62 3,101,982.55 20.00 24,114,494.97 12,057,247.49 50.00 9,591,786.14 9,591,786.14 100.00 641,425,178.91 36,103,261.17 5.63	Amount at the end of the period Book balance Provision for bad debts Provision withdrawal percentage (%) 456,455,106.81 4,564,551.07 1.00 135,753,878.37 6,787,693.92 5.00 15,509,912.62 3,101,982.55 20.00 24,114,494.97 12,057,247.49 50.00 9,591,786.14 9,591,786.14 100.00 641,425,178.91 36,103,261.17 5.63
		5.63

• (2) Provision for bad debts withdrawn, recovered or reversed in the current period

The amount withdrawn for bad debts in the current period is RMB14,049,243.66.

• (3) Top five entities in amount of accounts receivable

Entity name Customer 1 [Note] Customer 2 Customer 3 Customer 4 Customer 5 Subtotal	Book balance Percentage in balance of accounts receivable (%) Provision for bad debts 126,020,004.43 16.44 1,260,200.04 26,494,660.05 3.46 264,946.60 21,724,721.23 2.83 217,247.21 13,098,086.00 1.71 654,904.30 11,601,280.15 1.51 116,012.80 198,938,751.86 25.95 2,513,310.95	Book balance Percentage in balance of accounts receivable (%) Provision for bad debts 126,020,004.43 16.44 1,260,200.04 26,494,660.05 3.46 264,946.60 21,724,721.23 2.83 217,247.21 13,098,086.00 1.71 654,904.30 11,601,280.15 1.51 116,012.80 198,938,751.86 25.95 2,513,310.95
		2,513,310.95

• [Note] Receivable subsidy for surcharge on electricity generated from renewable energy sources is RMB124,973,640.00 and receivable proceeds from selling electricity is RMB1,046,364.43.

— 229 —

FINANCIAL INFORMATION OF JINKE PROPERTY

APPENDIX II

1. Advance payments

2. (1) Age analysis

3. 1) Details

	Amount at the end of the period	Amount at the end of the period	Amount at the end of the period		**Amount at the beginning **	**Amount at the beginning **	of the period	of the period
			Provision				Provision
	Book	Percentage	for bad	Book	Book	Percentage	for bad	Book
Age	balance	(%)	debts	value	balance	(%)	debts	value
Within 1 year	956,388,310.88	94.76		956,388,310.88	748,135,341.27	93.90		748,135,341.27
1-2 years	28,508,132.37	2.82		28,508,132.37	32,525,117.42	4.08		32,525,117.42
2-3 years	24,085,107.33	2.39		24,085,107.33	7,702,677.79	0.97		7,702,677.79
Over 3 years	280,557.91	0.03		280,557.91	8,338,849.62	1.05		8,338,849.62
Total	1,009,262,108.49	100.00		1,009,262,108.49	796,701,986.10	100.00		796,701,986.10

• 2) Reasons for delayed settlement of material advance payments maturing in more than one year

Amount at the end Reason for delayed Entity name of the period settlement Chengdu Urban Gas Co., Ltd. 10,091,250.00 Conditions for settlement are not met yet Jiangnan Water Municipal 5,642,789.45 Conditions for settlement are Engineering Jiangyin Co., Ltd. not met yet Chengdu Ronghe Natural Gas Co., 4,584,800.00 Conditions for settlement are Ltd. not met yet Subtotal 20,318,839.45

• (2) Top five entities in amount of advance payments

Entity name Relocation and Resettlement Office of Zhengzhou High and New Tech Development Zone Land Resources and Housing Administrative Bureau of Fengdu County Suzhou Municipal Land and Resources Bureau Sanyo Elevator (Zhuhai) Co., Ltd. Bureau of Finance of Wushan County Subtotal	Book balance Percentage in balance of advance payments (%) 302,250,000.00 29.95 130,000,000.00 12.88 120,175,687.50 11.91 65,327,814.50 6.47 51,100,000.00 5.06 668,853,502.00 66.27	Book balance Percentage in balance of advance payments (%) 302,250,000.00 29.95 130,000,000.00 12.88 120,175,687.50 11.91 65,327,814.50 6.47 51,100,000.00 5.06 668,853,502.00 66.27
		66.27

— 230 —

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FINANCIAL INFORMATION OF JINKE PROPERTY

5. Other receivables

• (1) Details

• 1) Classified details

		**Amount **	**at the end of the **	period
	Book balance		**Provision for **	bad debts
				Provision
				withdrawal
		Percentage		percentage
Classification	Amount	(%)	Amount	(%)	Book value
Receivables whose amount is
significant individually and for
which provision for bad debts is
withdrawn individually
Receivables for which provision is
withdrawn for bad debts in
portfolio by credit risks	1,621,552,237.31	100.00	138,845,753.63	8.56	1,482,706,483.68
Receivables whose amount is
insignificant individually but for
which provision for bad debts is
withdrawn individually
Total	1,621,552,237.31	100.00	138,845,753.63	8.56	1,482,706,483.68

(Continued)

		**Amount at **	**the beginning of **	the period
		Book balance	**Provision **	for bad debts
				Provision
				withdrawal
		Percentage		percentage
Classification	Amount	(%)	Amount	(%)	Book value
Receivables whose amount is
significant individually and for
which provision for bad debts
is withdrawn individually
Receivables for which provision
is withdrawn for bad debts in
portfolio by credit risks	1,817,727,098.28	100.00	80,652,822.91	4.44	1,737,074,275.37
Receivables whose amount is
insignificant individually but
for which provision for bad
debts is withdrawn individually
Total	1,817,727,098.28	100.00	80,652,822.91	4.44	1,737,074,275.37

— 231 —

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FINANCIAL INFORMATION OF JINKE PROPERTY

• 2) Other receivables for which provision is withdrawn for bad debts as per age analysis method in portfolio

Amount at the end of the period

Age Within 1 year 1-2 years 2-3 years 3-5 years Over 5 years Subtotal	Book balance 462,767,542.41 369,034,177.82 139,826,919.70 126,917,971.78 24,341,999.47 1,122,888,611.18	Provision for bad debts Provision withdrawal percentage (%) 4,627,675.42 1.00 18,451,708.89 5.00 27,965,383.94 20.00 63,458,985.91 50.00 24,341,999.47 100.00 138,845,753.63 12.37	Provision for bad debts Provision withdrawal percentage (%) 4,627,675.42 1.00 18,451,708.89 5.00 27,965,383.94 20.00 63,458,985.91 50.00 24,341,999.47 100.00 138,845,753.63 12.37
			12.37

• 3) Other receivables for which provision is withdrawn for bad debts as per other methods in portfolio

Amount at the end of the period

			Provision
		Provision for	withdrawal
Portfolio name	Book balance	bad debts	percentage (%)
Cash deposit portfolio	498,663,626.13
Subtotal	498,663,626.13

• (2) Provision for bad debts withdrawn, recovered or reversed in the current period

The amount withdrawn for bad debts for the current period was RMB59,779,947.66; the amount written off for bad debts for the current period was RMB1,630,964.03; increased amount withdrawn for bad debts for the current period due to merger of enterprises under the same control was RMB43,947.09.

• (3) Other receivables classified by payment properties

Payment properties Cash Deposit Land funds Land reclamation funds Project cooperation funds Receivable suspense payments Others Total	Amount at the end of the period 498,663,626.13 139,808,533.06 166,033,635.00 297,307,438.90 351,610,229.63 168,128,774.59 1,621,552,237.31	Amount at the beginning of the period 525,174,875.62 422,305,499.31 166,033,635.00 203,977,438.90 354,911,006.55 145,324,642.90
		1,817,727,098.28

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APPENDIX II

FINANCIAL INFORMATION OF JINKE PROPERTY

• (4) Top five entities in amount of other receivables

Entity name Payment properties Jinan Real Estate Association [Note 1] Advance deposit Liuyang Agricultural Development Co., Ltd. [Note 2] Land reclamation funds Chongqing Zhongjun Investment Co., Ltd. [Note 3] Project cooperation funds Chongqing Junting Real Estate Development Co., Ltd. [Note 4] Project cooperation funds Land and Resources Bureau of Fuling District, Chongqing [Note 5] Auction deposit Subtotal	Book balance Age Percentage in balance of other receivables 199,966,260.00 Within 1 year, 1-2 years, 2-3 years 12.33 166,033,635.00 1-2 years, 2-3 years, 3-5 years 10.24 164,927,438.90 Within 1 year, 1-2 years 10.17 102,655,068.49 Within 1 year 6.33 69,600,000.00 Within 1 year 4.29 703,182,402.39 43.36	Provision for bad debts — 41,362,949.10 7,608,371.95 1,026,550.68 —
		49,997,871.73

• [Note 1] which is the advance supervision deposit paid by subsidiary Jinan Jinke Xicheng Real Estate Development Co., Ltd. according to the Implementation Rules of Supervision on Advance Deposit for Commodity Houses in Jinan .

• [Note 2] which is the expenses on comprehensive land reclamation for the Liuyang Xianrenhu Lake Reservoir Project paid according to the Comprehensive Land Reclamation Agreement and Supplementary Agreement signed between the Company and Liuyang Municipal People’s Government.

• [Note 3] which are the cooperation funds for Zhaomushan O Subregion Project paid according to the Zhaomushan O Subregion Project Cooperation Investment Agreement signed between subsidiary Chongqing Jinke Zhongjun Real Estate Development Co., Ltd. and Chongqing Zhongjun Investment Co., Ltd. as well as the fees for capital occupation specified in the said agreement.

• [Note 4] which are the cooperation funds for the Higher Vocational Education Project in Hechuan District paid according to the Cooperation Investment Agreement on Higher Vocational Education Project in Hechuan District signed between subsidiary Jinke Bailexing Real Estate Co., Ltd. (Wansheng Economic and Technological Development Zone, Chongqing) and Chongqing Junting Real Estate Development Co., Ltd. as well as the fees for possession of funds specified in the said agreement.

• [Note 5] which is the deposit paid by subsidiary Chongqing Jinke Huiyi Real Estate Development Co., Ltd. to the Land and Resources Bureau of Fuling District for bidding for Land Nanhu Phase II.

— 233 —

APPENDIX II

FINANCIAL INFORMATION OF JINKE PROPERTY

1. Inventories

2. (1) Details

Amount at the end of the period

Item Raw materials Low-cost consumables Commodities in stock Development cost Products to be developed Developed products Leased products developed Project construction Total	Book balance 16,158,948.66 24,596.52 149,250,949.29 51,913,039,317.88 3,367,141,160.47 17,370,621,433.39 379,510,787.85 13,520,698.42 73,209,267,892.48	Provision for depreciation — — 149,250,949.29 485,202,533.32 — 560,205,410.75 — — 1,045,407,944.07	Book value 16,158,948.66 24,596.52 — 51,427,836,784.56 3,367,141,160.47 16,810,416,022.64 379,510,787.85 13,520,698.42
			72,163,859,948.41

Amount at the beginning of the period

Item Raw materials Low-cost consumables Commodities in stock Development cost Products to be developed Developed products Leased products developed Project construction Total	Book balance 15,429,819.05 943,041.52 145,480,490.16 50,003,146,889.13 2,550,963,644.71 9,935,240,517.09 300,439,758.97 42,789,156.32 62,994,433,316.95	Provision for depreciation — — — 404,426,799.14 — 327,446,892.65 — — 731,873,691.79	Book value 15,429,819.05 943,041.52 145,480,490.16 49,598,720,089.99 2,550,963,644.71 9,607,793,624.44 300,439,758.97 42,789,156.32
			62,262,559,625.16

(2) Provision for inventory depreciation

• 1) Details

	Amount	Increase in the		Decrease in the
	at the	current period		current period		Amount at the
	beginning of			Reversal or		end of the
Item	the period	Withdrawal	Others	charge-off	Others	period
Development cost	404,426,799.14	177,941,564.79	—	— 97,165,830.61		485,202,533.32
Developed products	327,446,892.65	228,893,829.09 97,165,830.61		93,301,141.60	—	560,205,410.75
Subtotal	731,873,691.79	406,835,393.88 97,165,830.61		93,301,141.60 97,165,830.61		1,045,407,944.07

— 234 —

APPENDIX II

FINANCIAL INFORMATION OF JINKE PROPERTY

[Note] As at 31 December 2015, based on current market prices and actual sales performance of the project and after conducting an impairment test on cashable net value of the project, subsidiaries Hunan Jinke Real Estate Development Co., Ltd., Jinke Bailexing Real Estate Co., Ltd. (Wansheng Economic and Technological Development Zone, Chongqing), Chongqing Jinke Chenju Real Estate Co., Ltd., Chenzhou Jinke Kaitian Real Estate Development Co., Ltd. and Liuyang Jinke Real Estate Co., Ltd. had withdrawn a provision for inventory depreciation of RMB60,521,277.16, RMB111,757,447.87, RMB85,728,186.32, RMB59,962,780.55 and RMB88,865,701.98 respectively for their projects Changsha Flourishing Oriental Courtyard, Chongqing • Wansheng Jinke China Health City, Chongqing • Jinke Leijiaqiao, Chenzhou • Central Park and Liuyang • Tianhu New City.

• 2) Specific basis for determining cashable net value.

As for remaining developed products of real estate projects completed by the end of period, their cashable net value is estimated selling price minus estimated sales expenses and relevant taxes; for development cost and products to be developed of real estate projects not completed by the end of period, their cashable net value is estimated selling price minus the cost after completion, estimated sales expenses and relevant taxes. Estimated selling prices include those for pre-sold products and those for unsold products; estimated selling prices of pre-sold products are determined based on the actual contract price while estimated selling prices of unsold products are determined based on recent average selling prices or market prices of similar property products and their positioning, quality and sales plan.

(3) Other descriptions

• 1) Capitalization of borrowing costs:

Capitalized borrowing costs stated as inventory costs in 2015 were RMB3,050,553,240.99 (RMB2,689,628,800.00 in 2014). In 2015 the annual capitalization rate for determining the amount of capitalized borrowing costs was 8.98% (9.43% in 2014).

• 2) RMB19,766,160,900 of the opening inventory was for guarantee and RMB18,303,055,900 of the ending inventory was for guarantee.

• 3) Inventories — development cost

			Estimated
			total		Amount at the
	Commencement	Estimated time of	investment	Amount at the	beginning of the
Project name	time	completion [note]	(RMB’0,000)	end of the period	period
Chongqing • Jinke Star	July 2015	February 2017	90,943.00	335,284,285.92	—
Chongqing Hechuan • Jinke World City	March 2012	February 2015	112,358.00	—	426,651,314.11
Chongqing Hechuan • Nature City Project	May 2014	June 2016	80,000.00	519,742,471.79	336,486,208.92
Chongqing • Jinke Jiangjin World City	April 2013	August 2016	133,672.00	525,888,375.36	900,389,854.66
Chongqing Jiangjin • Jinke Central Park	August 2013	July 2016	210,840.80	970,040,488.15	960,095,973.30
Chongqing • Jinke Oriental Palace	July 2010	June 2015	174,999.00	—	11,753,779.05
Chongqing • Jinke Bridge Village	July 2010	May 2016	720,000.00	801,998,050.15	2,022,784,003.04

— 235 —

APPENDIX II

FINANCIAL INFORMATION OF JINKE PROPERTY

			Estimated
			total		Amount at the
	Commencement	Estimated time of	investment	Amount at the	beginning of the
Project name	time	completion [note]	(RMB’0,000)	end of the period	period
Chongqing • Jinke Sun Coast	November 2009	September 2016	200,000.00	51,151,068.90	9,683,033.13
Chongqing • Jinke Leijiaqiao	July 2011	June 2018	359,831.00	907,998,536.55	2,095,272,962.89
Chongqing Bishan • Jinke Central Park	January 2012	June 2017	306,011.00	1,074,700,008.13	1,135,459,315.13
Chongqing Beibei • Jinke City	July 2013	May 2017	358,772.00	2,327,898,665.39	1,812,720,965.28
Chongqing • Wansheng Jinke China Health	June 2013	October 2017	104,600.00	461,090,736.21	660,625,696.56
City
Chongqing • Jinke Times Center	April 2013	June 2016	387,420.00	1,166,011,226.41	1,687,052,315.43
Chongqing • Xiyong Tianchen	April 2014	August 2016	465,800.00	2,436,179,156.55	1,788,403,203.92
Chongqing • Xiyong Tianchen (Phase II)	October 2015	April 2018	380,000.00	1,321,425,954.26	—
Chongqing • Jinke Konggang City	June 2014	July 2017	190,000.00	681,925,404.05	230,171,631.43
Chongqing • Jinke Central Washington	October 2014	July 2016	128,000.00	554,049,375.56	396,024,942.54
Chongqing Nanchuan • Jinke World City	August 2014	July 2016	290,000.00	843,725,555.38	412,447,852.38
Chongqing Wushan • Jinke City	December 2015	December 2017	403,887.00	157,119,315.89	—
Chongqing Kaixian • Jinke Kaizhou City	July 2011	May 2016	287,247.52	570,864,072.63	901,291,456.39
Chongqing • Kaixian Jinke Grand Hotel	September 2012	December 2016	38,000.00	50,020,775.47	—
Chongqing Kaixian • Jinke Wealth Center	October 2012	December 2016	187,599.38	536,249,197.64	855,248,063.92
Chongqing Kaixian • Vega de la Reina	October 2015	October 2017	100,000.00	309,968,201.70	—
Project
Chongqing Yunyang • Jinke World City	February 2014	September 2016	304,850.00	1,404,438,835.30	1,000,477,160.54
Chongqing • Wanzhou Jinke Guanlan	March 2015	March 2018	300,000.00	839,917,849.84	—
Chongqing • Jinke Lake Town	September 2009	October 2015	91,000.00	—	25,595,836.11
Chongqing Fuling • Jinke Central Park	August 2011	May 2016	246,593.00	602,402,742.05	586,063,438.45
Chongqing Changshou • Jinke Sunshine	July 2012	May 2017	160,539.00	6,981,274.84	659,807,195.52
Town
Chongqing Fuling • Jinke Nature City	April 2013	September 2017	165,000.00	872,101,414.57	934,355,506.60
Chongqing Fuling • Jinke Nanhu Project	August 2015	June 2018	247,600.00	960,307,096.32	—
Chongqing Changshou • Jinke World City	June 2013	April 2016	494,499.00	1,963,156,808.93	1,335,247,102.80
Chongqing Fengdu • Jinke Golden Coast	July 2014	October 2016	250,000.00	570,969,887.26	399,010,336.02
Chongqing Yongchuan • Jinke Central Park	August 2010	December 2016	154,244.00	37,821,842.96	14,757,296.00
Chongqing Yongchuan • Jinke Sunshine	December 2010	July 2016	148,650.00	136,258,490.99	407,345,102.10
Town
Chongqing Yongchuan • Jinke Park Palace	June 2014	September 2016	150,000.00	724,306,409.12	488,557,079.82
Chongqing Rongchang • Jinke World City	October 2011	July 2016	429,228.00	636,611,162.26	652,482,051.70
Chongqing Dazu • Jinke Central Park	December 2012	May 2016	240,392.00	749,080,351.61	1,093,224,144.28
Chengdu • Jinke Center	December 2012	July 2016	125,000.00	174,211,930.90	908,928,187.59
Chengdu • Jinke Star City	May 2015	Janaury 2017	101,229.01	480,579,890.39	—
Chengdu • Jinke Bridge Village	April 2010	May 2016	198,982.00	336,409,300.06	309,240,864.22
Chengdu • Jinke Oriental Elegance County	December 2014	November 2016	150,000.00	603,318,628.20	402,207,357.67
Chengdu • Jinke Shuangnan City	October 2015	August 2017	96,000.00	549,628,888.85	—
Suining • Jinke Beautiful Bay Project	August 2015	January 2017	140,000.00	288,606,414.67	—
Neijiang • Jinke Central Park	July 2012	June 2016	170,000.00	115,551,079.41	337,942,743.65
Neijiang • New City Center	October 2013	September 2016	350,000.00	1,615,750,821.67	1,296,988,655.99
Neijiang • Times Center	April 2014	June 2017	160,000.00	597,064,620.18	403,689,135.60
Beijing • Jinke Napa House	October 2010	June 2017	486,191.00	1,607,667,740.11	1,368,593,378.36
Beijing • Jinke Bridge Garden	October 2011	October 2015	258,077.00	870,060,619.03	—
Beijing • Jinke Center	December 2014	February 2017	325,126.00	3,068,387,422.34	2,680,890,589.62
Jinan • Jinke World City	April 2013	January 2016	956,673.00	2,179,788,609.31	2,677,753,334.77

— 236 —

APPENDIX II

FINANCIAL INFORMATION OF JINKE PROPERTY

Project name Commencement time Estimated time of completion [note] Qingdao • Jinke Star August 2015 August 2017 Qingdao • Jinke Sunshine Town April 2014 April 2016 Changsha • Flourishing Oriental Courtyard April 2009 June 2015 Liuyang • Tianhu New City October 2011 April 2016 Changsha • Jinke World City January 2009 July 2016 Changsha • Jinke Center April 2013 May 2016 Chenzhou • Central Park February 2014 October 2016 Chenzhou • Nanling Eco-city “By the Water Side” November 2012 January 2016 Wuxi • Milan Garden B August 2010 July 2016 Wuxi • Milan Garden A August 2010 May 2016 Wuxi • Chengnan Aristocratic Family June 2010 November 2016 Wuxi • Wealth Commercial Plaza January 2013 May 2016 Jiangyin • Oriental Mansion May 2010 June 2015 Zhangjiagang • Bridge Court July 2012 June 2016 Zhangjiagang • Bridge Mansion August 2013 January 2016 Suzhou • Scene Mansion September 2010 June 2015 Suzhou • Nature Garden April 2013 October 2016 Suzhou • World View October 2014 January 2017 Nantong • Bridge Waterfront April 2012 March 2015 Jiangsu Rugao • Jinke World City July 2013 January 2016 Xi’an • Jinke Nature City November 2013 August 2016 Xianyang • Jinke World City November 2014 November 2018 Yunnan • Jinke Times Center November 2015 December 2017 Zunyi • Jinke Central Park November 2013 October 2016 Xinjiang • Jinke Household Appliances Expo June 2013 May 2016 Xinjiang • Jinke Vega de la Reina Project October 2015 October 2017 Xinjiang • Jinke Central Asia Household Appliances Expo Park June 2013 August 2016 Xinjiang • Jinke Bridge Village June 2013 May 2016 Subtotal	Estimated total investment (RMB’0,000) 195,651.00 175,000.00 209,369.40 175,338.00 161,197.34 229,411.00 100,000.00 80,000.00 77,166.00 157,849.33 515,579.11 144,310.39 187,048.01 187,276.00 112,552.00 370,598.00 158,618.00 150,000.00 76,107.00 114,192.00 226,414.56 337,391.33 200,000.00 255,744.00 126,168.00 96,053.00 197,737.00 219,615.00 17,442,352.18	Amount at the end of the period 1,286,245,443.03 557,227,542.68 — 480,122,382.26 543,163,382.78 1,357,448,300.97 419,939,149.76 275,527,025.15 34,208,454.31 51,231,990.50 1,294,800,071.56 491,453,188.63 — 632,751,372.62 279,663,824.96 — 626,197,968.26 704,204,295.05 — 506,994,217.37 1,212,839,368.29 548,170,917.41 921,926,676.14 710,234,953.59 346,271,340.41 136,658,075.97 202,146,714.86 568,962,227.09 51,913,039,317.88	Amount at the beginning of the period — 443,768,564.79 149,757,890.63 1,004,342,104.94 624,349,838.06 1,040,895,435.65 384,731,278.17 304,910,899.03 38,666,426.47 364,821,744.70 1,183,389,913.92 1,031,003,814.79 363,550,307.15 707,244,541.16 449,149,142.53 1,038,617,247.93 1,115,429,219.48 516,378,519.08 457,378,000.90 809,737,923.46 983,762,166.34 457,316,719.57 — 364,258,956.35 112,916,777.42 — 129,865,554.02 431,124,214.07
			50,003,146,889.13

• [Note] If the project is developed and delivered by phases, estimated time of completion shall be based on the building which is completed most recently from the balance sheet date.

• 4) Inventories — products to be developed

			Estimated
	Estimated		total		Amount at the
	commencement	Estimated time of	investment	Amount at the end	beginning of the
Project name	time	completion [note]	(RMB’0,000)	of the period	period
Chongqing • Jinke Star	July 2015	February 2017	90,943.00	—	152,110,294.17
Chongqing • Jinke Tianyuan Road
(Phase I)	June 2016	December 2019	300,000.00	680,762,577.76	—

— 237 —

APPENDIX II

FINANCIAL INFORMATION OF JINKE PROPERTY

Project name Estimated commencement time Estimated time of completion [note] Chongqing • Jinke Tianyuan Road (Phase II) March 2017 March 2020 Chongqing • Xiyong Tianchen (Phase II) October 2015 September 2017 Chongqing Fuling • Jinke Nanhu Project August 2015 July 2017 Chengdu • Jinke Star City May 2015 January 2017 Jinan • Jinke World City March 2017 September 2019 Nantong • Bridge Waterside January 2018 November 2019 Yunnan • Jinke Times Center April 2016 February 2017 Hunan • Changsha Science and Technology City Project January 2016 November 2017 Subtotal	Estimated total investment (RMB’0,000) Amount at the end of the period 240,000.00 569,514,210.32 380,000.00 — 240,000.00 — 100,000.00 — 956,673.00 1,241,436,080.14 63,345.00 227,428,501.11 220,000.00 273,134,388.46 1210,743.00 374,865,402.68 2,801,704.00 3,367,141,160.47	Amount at the beginning of the period — 1,155,496,141.08 385,454,976.00 218,046,839.63 — — 639,855,393.83 —
		2,550,963,644.71

[Note] If the project is developed and delivered by phases, estimated time of completion shall be based on the building which is completed most recently from the balance sheet date.

5) Inventories — developed products

	Time of	Amount	Increase in	Decrease in	Amount
	completion	at the beginning	the current	the current	at the end
Project name	[note]	of the period	period	period	of the period
Chongqing • Jinke VISAR International	November 2012	39,928,581.91	—	6,161,620.41	33,766,961.50
Chongqing • Ants SOHO	April 2008	24,889,125.77	4,469,916.10	990,572.27	28,368,469.60
Chongqing • Eastern Palace	November 2008	26,493,342.54	—	10,551,085.12	15,942,257.42
Chongqing • Jinke Oriental Elegance
County	June 2010	3,191,576.57	—	154,176.99	3,037,399.58
Chongqing • Jinke Sunshine Town	December 2013	243,034,991.35	—	24,476,326.39	218,558,664.96
Chongqing • Lake Town	November 2009	41,445,998.24	—	12,884,162.04	28,561,836.20
Chongqing • Jinke World City	July 2014	321,985,989.94	—	141,380,112.76	180,605,877.18
Chongqing Hechuan • Jinke World City	March 2015	78,063,466.01	605,175,279.72	419,522,049.54	263,716,696.19
Chongqing • Jinke Jiangjin World City	October 2015	—	531,556,620.52	354,118,184.18	177,438,436.34
Chongqing Jiangjin • Jinke Central Park	October 2015	—	354,321,722.71	318,467,414.86	35,854,307.85
Chongqing • Xiangjiang Garden	September 2002	2,728,703.35	—	—	2,728,703.35
Chongqing • Jinke Oriental Palace	September 2014	195,689,343.40	—	85,342,808.32	110,346,535.08
Chongqing • Jinke Bridge Village	December 2015	489,759,691.63	1,997,146,508.07	1,240,518,188.30	1,246,388,011.40
Chongqing • Jinke Small Town Story	January 2010	7,118,452.68	—	2,208,077.77	4,910,374.91
Chongqing • Jinke Sun Coast	November 2014	243,137,741.80	—	134,458,157.01	108,679,584.79
Chongqing • Jinke Xicheng Courtyard	March 2012	147,288,253.79	—	30,553,433.76	116,734,820.03
Chongqing • Jinke Leijiaqiao	November 2015	211,036,159.61	1,553,126,317.53	1,128,013,986.38	636,148,490.76
Chongqing Bishan • Jinke Central Park	August 2015	130,295,373.10	375,335,048.15	365,879,051.53	139,751,369.72
Chongqing Beibei • Jinke City	October 2015	—	152,476,534.17	130,895,343.24	21,581,190.93
Chongqing • Wansheng Jinke China
Health City	December 2015	—	367,179,142.03	230,136,166.21	137,042,975.82
Chongqing • Jinke Times Center	November 2015	—	793,493,411.35	194,338,057.35	599,155,354.00
Chongqing • Jinsha Waterfront	August 2006	15,455,996.23	2,777,328.56	—	18,233,324.79

— 238 —

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FINANCIAL INFORMATION OF JINKE PROPERTY

	Time of	Amount	Increase in	Decrease in	Amount
	completion	at the beginning	the current	the current	at the end
Project name	[note]	of the period	period	period	of the period
Chongqing • Yunhu City	January 2010	49,747,372.05	8,100.36	—	49,755,472.41
Chongqing • Bridge Waterside	June 2009	1,872,107.35	—	1,872,107.35	—
Chongqing • Green Park	December 2009	36,067,464.70	—	129,422.16	35,938,042.54
Chongqing • Jinke Ten Years City	November 2013	113,153,650.58	—	23,968,541.98	89,185,108.60
Chongqing • China Town	October 2005	43,743,087.78	—	3,727,266.43	40,015,821.35
Chongqing Kaixian • Jinke Kaizhou
City	December 2015	125,004,743.53	742,211,371.03	709,326,789.31	157,889,325.25
Chongqing Kaixian • Jinke Wealth
Center	November 2015	—	760,073,830.29	710,298,059.86	49,775,770.43
Chongqing • Jinke Lake Town	March 2015	2,792,616.81	9,173,298.99	—	11,965,915.80
Chongqing Fuling • Jinke World
Corridor B	January 2015	46,116,317.31	15,002,904.48	—	61,119,221.79
Chongqing Fuling • Jinke Central Park	October 2015	31,290,675.35	236,345,456.49	128,590,117.19	139,046,014.65
Chongqing Fuling • Jinke World
Corridor A	October 2013	206,720,614.93	2,255,373.29	—	208,975,988.22
Chongqing Changshou • Jinke Sunshine
Town	October 2015	240,892,725.59	849,960,752.45	494,141,736.39	596,711,741.65
Chongqing Fuling • Jinke Nature City	August 2015	—	550,839,263.63	495,635,483.45	55,203,780.18
Chongqing Yongchuan • Jinke Central
Park	February 2014	139,628,038.47	—	40,780,384.93	98,847,653.54
Chongqing Yongchuan • Jinke Sunshine
Town	July 2015	133,647,404.70	458,211,722.47	430,617,775.83	161,241,351.34
Chongqing Rongchang • Jinke World
City	October 2015	301,005,994.79	277,051,717.72	319,409,466.15	258,648,246.36
Chongqing Dazu • Jinke Central Park	September 2015	—	663,108,808.24	542,964,359.81	120,144,448.43
Chengdu • Jinke Yicheng	December 2012	13,323,711.73	—	1,774,090.70	11,549,621.03
Chengdu • Jinke Center	August 2015	—	890,924,179.96	533,278,411.07	357,645,768.89
Chengdu • Jinke Bridge Village	February 2015	804,657,091.61	99,167,310.46	85,011,415.95	818,812,986.12
Chengdu • Jinke Nature City	November 2014	206,386,053.96	—	48,988,433.92	157,397,620.04
Neijiang • Jinke Central Park	September 2015	229,101,161.79	380,701,096.66	198,489,470.27	411,312,788.18
Beijing • Patio Palace	January 2011	11,079,823.93	—	933,997.12	10,145,826.81
Beijing • Jinke Napa House	February 2015	1,165,720,935.29	36,113,888.96	—	1,201,834,824.25
Beijing • Jinke Bridge Garden	April 2015	44,618,012.64	1,016,468,892.28	976,580,032.17	84,506,872.75
Qingdao • Jinke Sunshine Town	December 2015	—	82,278,654.72	—	82,278,654.72
Changsha • Flourishing Oriental
Courtyard	August 2015	280,161,445.63	226,349,649.19	245,402,891.43	261,108,203.39
Liuyang • Tianhu New City	April 2015	—	688,507,932.93	68,346,089.06	620,161,843.87
Changsha • Jinke World City	December 2015	—	311,853,444.60	—	311,853,444.60
Chenzhou • Central Park	October 2015	—	85,140,116.21	8,710,529.74	76,429,586.47
Chenzhou • Nanling Eco-city “By the
Water Side”	September 2015	97,180,243.67	110,284,440.91	45,982,495.11	161,482,189.47
Wuxi • Jinke Eastern Palace	January 2013	54,561,566.16	3,886,021.57	—	58,447,587.73
Wuxi • Jinke Dream House	January 2015	33,745,506.33	20,036,443.70	3,360,872.87	50,421,077.16
Wuxi • Jinke Wanbo Plaza	January 2015	190,023,763.02	52,721,668.30	—	242,745,431.32
Wuxi • Milan Garden B	August 2012	90,506,258.54	—	—	90,506,258.54
Wuxi • Milan Garden A	January 2015	97,698,628.09	329,357,613.76	24,889,432.51	402,166,809.34
Wuxi • Chengnan Aristocratic Family	December 2015	1,395,098,900.26	69,582,522.38	272,946,121.82	1,191,735,300.82

— 239 —

APPENDIX II

FINANCIAL INFORMATION OF JINKE PROPERTY

Project name Time of completion [note] Wuxi • Wealth Commercial Plaza December 2015 Jiangyin • Fairview Garden June 2012 Jiangyin • Oriental Courtyard October 2012 Jiangyin • Oriental Mansion September 2015 Zhangjiagang • Bridge Court November 2015 Zhangjiagang • Bridge Mansion November 2015 Suzhou • Scene Mansion August 2015 Suzhou • Nature Garden September 2015 Nantong • Bridge Waterfront January 2015 Jiangsu Rugao • Jinke World City December 2015 Xinjiang • Jinke Bridge Village September 2015 Chongqing • Meishe Project October 2005 Chengdu Lexiang Century Hotel July 2015 Subtotal	Amount at the beginning of the period — 9,335,872.86 20,931,415.80 235,837,106.23 171,356,950.95 — 863,743,369.77 — 220,228,103.85 — — 6,718,993.12 —	Increase in the current period 975,541,402.68 26,400.46 — 455,859,938.16 406,117,235.21 389,364,903.04 789,553,246.67 828,152,199.91 346,248,466.86 613,312,751.85 173,448,362.84 — 74,644,627.49	Decrease in the current period — — 9,748,533.74 457,586,111.53 183,472,663.82 — 616,797,606.37 701,342,753.88 5,070,518.59 — 97,055,433.16 3,284,533.71 —	Amount at the end of the period 975,541,402.68 9,362,273.32 11,182,882.06 234,110,932.86 394,001,522.34 389,364,903.04 1,036,499,010.07 126,809,446.03 561,406,052.12 613,312,751.85 76,392,929.68 3,434,459.41 74,644,627.49
	9,935,240,517.09	20,756,943,840.11	13,321,562,923.81	17,370,621,433.39

[Note] If the project is developed and delivered by phases, time of completion shall be based on the building which is completed most recently from the balance sheet date.

6) Inventories — leased products developed

	Amount at the	Increase in	Decrease in	Amount
	beginning of the	the current	the current	at the end
Project name	period	period	period	of the period
Chongqing • Jinsha Waterfront	9,015,195.43	—	323,797.20	8,691,398.23
Chongqing • Yunhu City	32,148,484.00	—	1,105,058.76	31,043,425.24
Chongqing • Bridge Waterfront	4,356,871.13	1,294,223.87	5,651,095.00	—
Chongqing • Jinke Ten Years City	22,017,306.74	—	687,094.08	21,330,212.66
Chongqing • Bridge Waterfront	—	10,462,430.00	—	10,462,430.00
Chongqing • VISAR International	—	19,611,641.00	75,920.50	19,535,720.50
Chongqing Kaixian • Kaizhou City (Phase II)	—	41,943,689.07	—	41,943,689.07
Chongqing • Jinke Xicheng Courtyard	28,910,202.92	—	876,126.12	28,034,076.80
Chongqing • Jinke VISAR International	20,226,181.84	1,034,574.64	21,260,756.48	—
Chongqing • Jinke Sunshine Town	11,685,225.14	1,935,935.04	1,249,407.93	12,371,752.25
Chongqing • Meishe Project	2,724,267.58	308,713.96	3,032,981.54	—
Chongqing • Jinke Bridge Village	41,530,325.78	9,463,059.45	22,060,464.32	28,932,920.91
Chongqing Fuling • Jinke Golden Coast	3,565,670.45	—	102,337.92	3,463,332.53
Chongqing • Jinke Lake Town	6,110,693.93	—	197,840.79	5,912,853.14
Chongqing Fuling • Jinke World Corridor A	44,458,292.19	11,406,720.14	1,910,873.64	53,954,138.69
Liuyang • Tianhu New City	20,288,254.56	20,098,201.06	1,498,652.51	38,887,803.11
Chongqing Yongchuan • Jinke Central Park	51,517,551.80	—	3,526,416.61	47,991,135.19
Chongqing Yongchuan • Jinke Sunshine
Town	1,885,235.48	—	1,885,235.48	—

— 240 —

APPENDIX II

FINANCIAL INFORMATION OF JINKE PROPERTY

Project name Amount at the beginning of the period Chongqing • Rongchang World City (Phase II) — Chongqing • Chayuan Flower Street Project — Chongqing • Jiangjin World City — Subtotal 300,439,758.97	Increase in the current period 8,077,036.86 17,286,491.78 2,113,822.71 145,036,539.58	Decrease in the current period 91,347.44 430,104.38 — 65,965,510.70	Amount at the end of the period 7,985,689.42 16,856,387.40 2,113,822.71
			379,510,787.85

7. Other current assets

Item Amount at the end of the period Pending turnover taxes [note] 2,613,349,329.77 Total 2,613,349,329.77	Amount at the beginning of the period 2,136,948,630.59
	2,136,948,630.59

• [Note] The business tax, city maintenance and construction tax, education surcharge, local education surcharge and land value added tax paid as per the statutory tax rate for the not-carried-over income from advance payments for commodity houses as well as deductible VAT input tax were stated as other current assets.

8. Available-for-sale financial assets

(1) Details

Item Available-for-sale equity instruments Including: Those measured on the basis of cost Others [Note] Total	Amount at the end of the period Book balance Provision for impairment Book value 115,456,732.98 — 115,456,732.98 115,456,732.98 — 115,456,732.98 100,000,000.00 100,000,000.00 215,456,732.98 215,456,732.98	Amount at the end of the period Book balance Provision for impairment Book value 115,456,732.98 — 115,456,732.98 115,456,732.98 — 115,456,732.98 100,000,000.00 100,000,000.00 215,456,732.98 215,456,732.98	Amount at the end of the period Book balance Provision for impairment Book value 115,456,732.98 — 115,456,732.98 115,456,732.98 — 115,456,732.98 100,000,000.00 100,000,000.00 215,456,732.98 215,456,732.98	Amount at the beginning of the period Book balance Provision for impairment Book value — — — — — — — — — — — —	Amount at the beginning of the period Book balance Provision for impairment Book value — — — — — — — — — — — —	Amount at the beginning of the period Book balance Provision for impairment Book value — — — — — — — — — — — —
	215,456,732.98		215,456,732.98	—	—	—

• [Note] According to the Agreement on Purchase of Asset-backed Securities under CMS Super Value — Jinke Property Asset-backed Plan No. 1 signed on 4 November 2015 between subsidiary Jinke Property Services Group Limited (“Jinke Property”) and CMS Asset Management Co., Limited, Jinke Property purchased RMB100 million of subordinated asset-backed securities under the said plan.

— 241 —

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FINANCIAL INFORMATION OF JINKE PROPERTY

• (2) Available-for-sale financial assets measured on the basis of cost at the end of the period

Book balance

		Amount at the	Amount at the					Amount at
		beginning of the			Increase in the	Decrease in the		the end of
Invested entity			period		current period	**current **	period	the period
USUM Investment	Group
Co., Ltd. [Note]			—		115,456,732.98		— 115,456,732.98
Subtotal			—		115,456,732.98		— 115,456,732.98
			**Provision **	for impairment			Percentage of	Cash bonus
	Amount at		**Increase **	in	Decrease in	Amount at	equity in the	of the
	the beginning		the current		the current	the end of	invested	current
Invested entity	**of the **	period	period		period	the period	entity (%)	period
USUM Investment
Group Co., Ltd.		—		—	—	—	3.248%	—
Subtotal		—		—	—	—	3.248%	—

• [Note] Since on 24 April 2015 the director appointed by the Company resigned as director of USUM Investment Group Co., Ltd. (hereinafter referred to as “USUM Group”) and the Company’s subsidiary Hongjing Real Estate, which holds only 3.248% of USUM Group’s equity, was unable to appoint another director in USUM Group, the Company no longer has the right to participate in USUM Group’s financial and operation decisions. Therefore, the Company stated its long-term equity investment in USUM Group as available-for-sale financial assets as from 30 April 2015.

9. Long-term equity investment

(1) Classified details

	Amount at the end of the period	Amount at the end of the period	**Amount at the **	**beginning of **	the period
		Provision for	Provision for
Item	Book balance	impairment Book value	Book balance	impairment	Book value
Investment in
associated
enterprises	181,090,457.45	— 181,090,457.45	326,780,241.00	—	326,780,241.00
Investment in
joint ventures	209,996,804.01	— 209,996,804.01	9,994,505.08	—	9,994,505.08
Total	391,087,261.46	— 391,087,261.46	336,774,746.08	—	336,774,746.08

— 242 —

APPENDIX II

FINANCIAL INFORMATION OF JINKE PROPERTY

• (2) Details

Invested entity Joint ventures Xinjiang Jinke New Energy Equity Investment Joint Venture (limited partnership) [Note 1] Yunnan Jinwanzhong Real Estate Development Co., Ltd. Subtotal Associated enterprises USUM Investment Group Co., Ltd. [Note 2] Chongqing Zhanhe Agriculture Development Co., Ltd. [Note 3] Chongqing Yinhai Finance Leasing Co., Ltd. Wujiang Jinke Yangzi Real Estate Development Co., Ltd. Subtotal Total	Amount at the beginning of the period — 9,994,505.08 9,994,505.08 113,614,118.62 15,911,260.40 79,584,272.26 117,670,589.72 326,780,241.00	Increase/decrease in the current period Investment Added Investment reduced Investment gains/losses recognized based on equity method Adjustments to other comprehensive income 200,000,000.00 — — — — — 2,298.93 — 200,000,000.00 — 2,298.93 — — — 1,842,614.36 — — -17,908,717.32 1,997,456.92 — — — 5,418,175.49 — — — -14,413,427.29 — — -17,908,717.32 -5,155,180.52 — 200,000,000.00 -17,908,717.32 -5,152,881.59 —	Increase/decrease in the current period Investment Added Investment reduced Investment gains/losses recognized based on equity method Adjustments to other comprehensive income 200,000,000.00 — — — — — 2,298.93 — 200,000,000.00 — 2,298.93 — — — 1,842,614.36 — — -17,908,717.32 1,997,456.92 — — — 5,418,175.49 — — — -14,413,427.29 — — -17,908,717.32 -5,155,180.52 — 200,000,000.00 -17,908,717.32 -5,152,881.59 —
	336,774,746.08	200,000,000.00	—

— 243 —

APPENDIX II

FINANCIAL INFORMATION OF JINKE PROPERTY

	**Increase/decrease in **	**Increase/decrease in **	the current period			Balance of
		Cash dividends				provision for
		or profits	Provision		Amount at	impairment
	Other equity	announced to	withdrawn for		the end of	at the end of
Invested entity	changes	be distributed	impairment	Others	the period	the period
Joint ventures
Xinjiang Jinke New
Energy Equity
Investment Joint
Venture (limited
partnership)	—	—	—	—	200,000,000.00	—
Yunnan Jinwanzhong Real
Estate Development
Co., Ltd.	—	—	—	—	9,996,804.01	—
Subtotal	—	—	—	—	209,996,804.01	—
Associated enterprises
USUM Investment Group
Co., Ltd.	—	—	— -115,456,732.98		—	—
Chongqing Zhanhe
Agriculture
Development Co., Ltd.	—	—	—	—	—	—
Chongqing Yinhai
Finance Leasing Co.,
Ltd.	—	-7,169,152.73	—	—	77,833,295.02	—
Wujiang Jinke Yangzi
Real Estate
Development Co., Ltd.	—	—	—	—	103,257,162.43	—
Subtotal	—	-7,169,152.73	— -115,456,732.98		181,090,457.45	—
Total	—	-7,169,152.73	— -115,456,732.98		391,087,261.46	—

[Note 1] According to the Partnership Agreement on Establishment of Xinjiang Jinke New Energy Equity Investment Joint Venture (Limited Partnership) signed by subsidiaries Chongqing Junyu Business Consulting Service Co., Ltd. (hereinafter referred to as “Chongqing Junyu”) and Jinke New Energy Co., Ltd. (hereinafter referred to as “Jinke New Energy”) with Shihezi City Fengling Equity Investment Joint Venture (limited partnership) (hereinafter referred to as “Shihezi Fengling”), Xinjiang China Merchants Kunlun Capital Investment Joint Venture (limited partnership)(hereinafter referred to as “CMK Capital”) and Shihezi City Hechuang Equity Investment Joint Venture (limited partnership) (hereinafter referred to as “Shihezi Hechuang”), Chongqing Junyu, Jinke New Energy, Shihezi Fengling, CMK Capital and Shihezi Hechuang jointly invested to establish Xinjiang Jinke New Energy Equity Investment Joint Venture (limited partnership) (hereinafter referred to as “New Energy Industrial Fund”). Based on the said partnership agreement, the joint venture is under the joint control of Chongqing Junyu and Shihezi Fengling. Therefore, it was included in joint venture accounting.

• [Note 2] Refer to Note V (I) 8 to the Financial Statements for details.

• [Note 3] Refer to Note X (II) 5 to the Financial Statements for details.

— 244 —

APPENDIX II

FINANCIAL INFORMATION OF JINKE PROPERTY

10. Investment property

• (1) Details

Item Amount at the beginning of the period Changes in the current period Add: Inventory transfer Less: Other transfers (out) Change in fair value Amount at the end of the period	Houses and buildings 2,905,436,061.00 56,349,042.20 39,863,547.99 2,888,950,566.79	Total 2,905,436,061.00 56,349,042.20 39,863,547.99
		2,888,950,566.79

• (2) Details about investment property subsequently measured at fair value

Item Fair value at the beginning of the period Red Star Macalline Furniture Hall 1,306,475,875.79 The 4th floor of Tianwangxing Office Building 13,161,753.50 The 5th floor of Tianwangxing Office Building 13,161,753.50 Tianwangxing Parking Space 1,100,000.00 Commercial housing on floor B1 of Jinke Sunshine Town 39,959,220.00 Office building at Qingyang District, Chengdu 5,117,365.00 Shopping mall and warehouse on floor B1 of Hechuan World City 30,560,132.77 Shopping mall and warehouse on floor B1 of Jinke Kaizhou City 26,151,398.24 Underground supermarket in Xicheng Courtyard 23,484,120.00 Jinke • Fuling World Corridor District B 1,389,915,400.00 Total 2,849,087,018.80	Increase in investment property in the current period — — — — — — — — — — —	Change in fair value in the current period 4,768,151.00 130,422.00 130,422.00 50,000.00 -399,592.20 -24,485.00 302,494.62 -271,174.43 548,710.00 34,628,600.00 39,863,547.99	Fair value at the end of the period 1,311,244,026.79 13,292,175.50 13,292,175.50 1,150,000.00 39,559,627.80 5,092,880.00 30,862,627.39 25,880,223.81 24,032,830.00 1,424,544,000.00
			2,888,950,566.79

— 245 —

APPENDIX II

FINANCIAL INFORMATION OF JINKE PROPERTY

Item Location Red Star Macalline Furniture Hall No. 888, Xinnan Road, Tiangongdian Street, Yubei District, Chongqing The 4th floor of Tianwangxing Office Building No. 68, Xingguang Avenue, Hi-Tech Park, New North Zone, Chongqing The 5th floor of Tianwangxing Office Building No. 68, Xingguang Avenue, Hi-Tech Park, New North Zone, Chongqing Tianwangxing Parking Space B1F, Building C, No. 64, Xingguang Avenue, Hi-Tech Park, New North Zone, Chongqing Commercial housing on the underground floor of Jinke Sunshine Town Jinke Star City, No. 184-12 and No. 184-13, Xinnan Road, Yubei District, Chongqing Office building at Qingyang District, Chengdu No. 308, Shuncheng Street, Qingyang District, Chengdu Shopping mall and warehouse on the underground floor of Hechuan World City Building 23, No. 5, Hongshi Avenue, Jiulong Park Street, Jiulongpo District Shopping mall and warehouse on the underground floor of Jinke Kaizhou City Building 22, No. 5, Hongshi Avenue, Jiulong Park, Jiulongpo District Underground supermarket in Xicheng Courtyard Underground supermarket at Building 19, No. 5, Hongshi Avenue, Jiulong Park, Jiulongpo District Jinke • Fuling World Corridor District B No. 6, Zhongshan Road, Fuling District, Chongqing Total

Floorage Rent income in the current period Appreciation rate calculated at fair value at the end of the period 106,927.62 39,950,459.09 0.36% 1,086.85 1,175,424.00 0.99% 1,086.85 1,175,424.00 0.99% 444.48 1,175,424.00 4.55% 995.66 1,681,148.48 -1.00% 489.70 394,453.35 -0.48% 2,415.88 1,153,324.14 0.99% 4,935.98 — -1.04% 3,171.93 695,112.00 2.34% 94,089.73 7,734,452.91 2.49% 215,644.68 52,784,373.97 —

• (3) Other descriptions

• 1) To meet operation needs, the Company’s President’s Office Association decided to sell Baguo City (4,935.98 m[2] of commercial houses) and Ants • SOHO (995.66 m[2] of commercial houses) in the current period which were supposed to be held for long term and state them under inventories — developed products.

• 2) At the end of the period the Company entrusted Chongqing Huakang Asset & Land & Real Estate Valuation Co., Ltd. to evaluate its self-held investment property to determine the fair value of the investment property and issued Asset Evaluation Report on the Fair Value of Investment Property of Jinke Property Group Co., Ltd. (Chong Kang Ping Bao Zi No. 5 [2016]).

— 246 —

APPENDIX II

FINANCIAL INFORMATION OF JINKE PROPERTY

		Power generation	Household related	appliances equipment Total		19,260,366.45 333,991,377.10 1,374,438,419.56	19,165,658.28 835,166,044.25 1,563,837,590.02	9,382,101.22 4,455,419.60 90,045,213.89		9,519,942.06 830,710,624.65 1,079,421,161.61	263,615.00 — 3,196,414.00	— — 391,174,800.52	4,957,453.45 — 42,470,542.94	4,957,453.45 — 42,470,542.94	33,468,571.28 1,169,157,421.35 2,895,805,466.64		9,249,260.97 11,897,719.55 241,506,947.95	6,883,588.64 36,201,386.32 153,851,271.80	6,758,228.74 36,201,386.32 152,248,247.37	125,359.90 — 1,603,024.43	4,229,908.26 — 28,008,599.55	4,229,908.26 — 28,008,599.55	11,902,941.35 48,099,105.87 367,349,620.20	— — —	— — —	— — —	— — —	— — —	— — —	— — —	— — —	21,565,629.93 1,121,058,315.48 2,528,455,846.44	10,011,105.48 322,093,657.55 1,132,931,471.61
		Decoration of	Other houses and	equipment buildings		27,130,142.47 255,042,206.33	32,332,893.45 160,102,318.33	18,630,547.87 11,881,100.88		13,542,110.58 148,221,217.45	160,235.00 —	— —	3,243,448.59 7,807,762.13	3,243,448.59 7,807,762.13	56,219,587.33 407,336,762.53		17,200,613.03 85,983,100.18	5,767,518.59 34,892,302.03	5,698,917.82 34,892,302.03	68,600.77 —	1,156,880.91 2,305,559.61	1,156,880.91 2,305,559.61	21,811,250.71 118,569,842.60	— —	— —	— —	— —	— —	— —	— —	— —	34,408,336.62 288,766,919.93	9,929,529.44 169,059,106.15
			Means of	transport		52,735,903.34	8,704,401.05	6,205,846.05		—	2,498,555.00	—	1,399,727.40	1,399,727.40	60,040,576.99		25,735,492.89	10,035,287.71	8,761,687.11	1,273,600.60	1,255,170.92	1,255,170.92	34,515,609.68	—	—	—	—	—	—	—	—	25,524,967.31	27,000,410.45
			Machinery & Electronic	equipment equipment		29,841,500.50 85,429,122.62	7,441,928.99 48,151,745.15	2,798,305.49 36,691,892.78		4,643,623.50 11,185,843.37	— 274,009.00	— —	575,852.26 22,787,388.07	575,852.26 22,787,388.07	36,707,577.23 110,793,479.70		11,244,304.49 48,479,236.98	3,020,303.19 29,832,559.74	3,020,303.19 29,697,096.58	— 135,463.16	215,994.46 18,722,181.61	215,994.46 18,722,181.61	14,048,613.22 59,589,615.11	— —	— —	— —	— —	— —	— —	— —	— —	22,658,964.01 51,203,864.59	18,597,196.01 36,949,885.64
			Houses and	buildings		571,007,800.75	452,772,600.52	—		61,597,800.00	—	391,174,800.52	1,698,911.04	1,698,911.04	1,022,081,490.23		31,717,219.86	27,218,325.58	27,218,325.58	—	122,903.78	122,903.78	58,812,641.66	—	—	—	—	—	—	—	—	963,268,848.57	539,290,580.89
11. Fixed assets	(1) Details			Item	Original book value	Amount at the beginning of the period	Increase in the current period	1) Purchase	2) Carried over from construction in	progress	3) Increase from merger of enterprises	4) Inventory transfer	Decrease in the current period	1) Disposal or scrapping	Amount at the end of the period	Cumulative depreciation	Amount at the beginning of the period	Increase in the current period	1) Withdrawal	2) Increase from merger of enterprises	Decrease in the current period	1) Disposal or scrapping	Amount at the end of the period	Provision for impairment	Amount at the beginning of the period	Increase in the current period	1) Withdrawal	Decrease in the current period	1) Disposal or scrapping	Amount at the end of the period	Book value	Book value at the end of the period	Book value at the beginning of the period

— 247 —

APPENDIX II

FINANCIAL INFORMATION OF JINKE PROPERTY

• (2) Information on fixed assets to which a certificate of title has not been obtained

Item Houses and buildings Subtotal	Book value Reasons why the certificate of title has not been obtained 123,687,698.68 In process 123,687,698.68

1. Construction in progress (1) Details

			Amount at the end of the period	Amount at the end of the period	Amount at the end of the period	**Amount at **	**the beginning **	**of **	the period
			Provision for				Provision for
Item		Book balance impairment Book value Book balance					impairment		Book value
Hotel renovations			919,964.28		919,964.28 37,469,156.39				37,469,156.39
The sixth Wind Farm (200 MW) project
in Yandun, Hami		155,916,370.01			155,916,370.01 612,835,176.98				612,835,176.98
Fragmentary projects			1,421,276.37		1,421,276.37 2,978,959.59				2,978,959.59
Total		158,257,610.66			158,257,610.66 653,283,292.96				653,283,292.96
(2) Changes of important construction in progress in the current period
			Amount at						Amount at
			the beginning	Increase in the		Transferred to	Other		the end
Project name	Budget		of the period		current period	fixed assets	decreases		of the period
Hotel renovations			37,469,156.39		147,450,824.17	184,000,016.28	—		919,964.28
The sixth Wind Farm
(200 MW) project in
Yandun, Hami			612,835,176.98		435,389,617.68	892,308,424.65	—	155,916,370.01
Fragmentary projects			2,978,959.59		1,816,036.65	3,112,720.68	260,999.19		1,421,276.37
Subtotal			653,283,292.96		584,656,478.50	1,079,421,161.61	260,999.19	158,257,610.66
	Percentage of				Accumulated	Amount of	Interest
	**total **	project			amount of	capitalized capitalization
	investment to Construction				capitalized	interest in the	rate in the
Project name	budget (%) progress (%)				interest	current period current period		Fund source
Hotel renovations								Self-raised
The sixth Wind Farm			90.66		21,392,400.00	9,929,333.33	8.00	Self-raised and
(200 MW) project								borrowed
in Yandun, Hami
Fragmentary projects				—	—	—	—	Self-raised
Subtotal				—	21,392,400.00	9,929,333.33	—

— 248 —

FINANCIAL INFORMATION OF JINKE PROPERTY

APPENDIX II

13. Intangible assets

(1) Details

Item Land use right Original book value Amount at the beginning of the period 49,655,020.45 Increase in the current period — 1) Purchase — 2) Inventory transfer — Decrease in the current period — 1) Disposal — Amount at the end of the period 49,655,020.45 Accumulated amortization Amount at the beginning of the period 3,224,324.41 Increase in the current period 1,315,594.33 1) Withdrawal 1,315,594.33 Decrease in the current period — 1) Disposal — Amount at the end of the period 4,539,918.74 Provision for impairment — Amount at the beginning of the period — Increase in the current period — 1) Withdrawal — Decrease in the current period — 1) Disposal — Amount at the end of the period — Book value — Book value at the end of the period 45,115,101.71 Book value at the beginning of the period 46,430,696.04	Software Trademark right 27,796,878.24 106,935.85 5,542,919.38 17,189.98 5,542,919.38 17,189.98 — — 667,462.42 — 667,462.42 — 32,672,335.20 124,125.83 13,761,528.07 38,027.03 4,682,238.50 14,638.63 4,682,238.50 14,638.63 340,111.69 — 340,111.69 — 18,103,654.88 52,665.66 — — — — — — — — — — — — — — — — 14,568,680.32 71,460.17 14,035,350.17 68,908.82	Total 77,558,834.54 5,560,109.36 5,560,109.36 — 667,462.42 667,462.42 82,451,481.48
		17,023,879.51 6,012,471.46 6,012,471.46 340,111.69 340,111.69 22,696,239.28
		— — — — — — — — 59,755,242.20
		60,534,955.03

(2) Information on land use right to which a certificate of title has not been obtained

Item Land use right Subtotal	Book value Reasons why the certificate of title has not been obtained 3,135,799.62 In process 3,135,799.62

— 249 —

FINANCIAL INFORMATION OF JINKE PROPERTY

APPENDIX II

14. Goodwill

(1) Original book value of goodwill

Name of invested entity or matters forming goodwill Amount at the beginning of the period Goodwill formed by merger of enterprises in the current period Decrease in the current period Disposal Others Chongqing Qingheng Trading Co., Ltd. 98,151.81 — — — Chongqing Qingke Trading Co., Ltd. 30,000.00 — — — Chongqing New Start Decorative Engineering Co., Ltd. 859,680.06 — — — Chongqing Zhanhong Garden Co., Ltd. 2,525,698.65 — — — Chongqing Tianhao Menchuang Co., Ltd. 3,869,524.97 — — — Chongqing Yuanhao Decorative Engineering Co., Ltd. 113,488.03 — — — Xinjiang Huaran Oriental New Energy Co., Ltd. [Note 1] 583,776,339.06 — — 100,000,000.00 Chongqing Zunda Property Management Co., Ltd. [Note 2] — 5,148,667.73 — — Total 591,272,882.58 5,148,667.73 — 100,000,000.00

Amount at the end of the period 98,151.81 30,000.00 859,680.06 2,525,698.65 3,869,524.97 113,488.03 483,776,339.06 5,148,667.73

496,421,550.31

• [Note 1] According to the Equity Transfer Agreement and Performance Commitment and Compensation Agreement signed between the subsidiary Jinke New Energy and CMK Capital in December 2014, and the Commitment and Guarantee Agreement signed between Jinke New Energy and Sun Yu (the actual controller of CMK Capital), CMK Capital transferred its 90% equity in Xinjiang Huaran to Jinke New Energy at the price of RMB630 million, which will be paid in four installments. On 30 November 2015, Jinke New Energy, CMK Capital and Sun Yu jointly signed the Supplemental Agreement to the Equity Transfer Agreement . The parties agreed to adjust the original equity transfer price from RMB630 million to RMB530 million, and terminate Article 4.4 performance commitments and Appendix C Performance Commitment and Compensation Agreement in the original Equity Transfer Agreement . As the said Supplemental Agreement constituted a change in the original Equity Transfer Agreement , Sun Yu agreed to continue to assume the joint and several liabilities for the transferor’s obligations under the original Equity Transfer Agreement and this Supplemental Agreement. As the Supplemental Agreement adjusted the equity transfer price agreed in the original agreement, the Company adjusted the acquisition cost in the current period, and correspondingly reduced the consolidated goodwill by RMB100 million.

• [Note 2] Refer to Note [VI] (I). 2 to the Financial Statements for details.

— 250 —

APPENDIX II

FINANCIAL INFORMATION OF JINKE PROPERTY

• (2) Provision for impairment of goodwill

	Amount
	at the
	beginning	Increase in the		Decrease in the		Amount at
Name of invested entity or	of the	current period		current period		the end of
matters forming goodwill	period	Withdrawal	Others	Disposal	Others	the period
Chongqing Qingheng Trading
Co., Ltd.	98,151.81					98,151.81
Chongqing Qingke Trading
Co., Ltd.	30,000.00					30,000.00
Subtotal	128,151.81					128,151.81

• (3) Goodwill impairment testing process, parameters and methods of recognizing goodwill impairment loss

Treat Xinjiang Huaran Oriental New Energy Co., Ltd. and Chongqing Tianhao Menchuang Co., Ltd. as different asset groups. According to the expected future cash flow generated during the continuous use or final disposal of the asset groups, determine the discounted cash with an appropriate pre-tax discount rate as the asset groups’ recoverable amount, and compare it with their book value. The results show that there is no new impairment loss in the two asset groups.

15. Long-term prepaid expenses

	Amount at the		Amortization		Amount at the
	beginning of	Increase in the	in the current	Other	end of the
Item	the period	current period	period	decreases	period
Expense for
decoration [Note]	20,658,719.50	17,758,632.85	11,723,511.35		26,693,841.00
Property insurance	779,166.45		170,000.04		609,166.41
Total	21,437,885.95	17,758,632.85	11,893,511.39		27,303,007.41

[Note] The expense for decoration is the amount used by the Company and its subsidiaries for decoration of offices leased.

— 251 —

FINANCIAL INFORMATION OF JINKE PROPERTY

APPENDIX II

1. Deferred tax assets and deferred tax liabilities

2. (1) Deferred tax assets not offset

Item Provision for asset impairment Estimated profit as calculated based on advance sale income of real estate enterprises Deductible loss Unrealized profit of internal transaction Land premium amortization Payroll payable Others Total	Amount at the end of the period Deductable temporary difference Deferred tax assets 156,964,624.53 35,712,757.50 2,505,752,634.29 525,240,526.03 1,385,831,402.51 331,028,031.93 282,707,875.40 70,676,968.85 571,326,708.40 142,831,677.10 — — 1,170,485,874.55 224,285,117.82 6,073,069,119.68 1,329,775,079.23	Amount Deductable temporary difference 459,941,614.07 1,854,739,761.17 1,003,244,583.16 156,967,551.63 543,801,481.26 114,039,595.98 1,285,220,386.69 5,417,954,973.96	at the beginning of the period Deferred tax assets 113,122,753.79 384,429,396.31 234,707,433.94 39,241,887.91 135,950,370.32 23,369,038.15 248,718,360.95
			1,179,539,241.37

• (2) Deferred tax liabilities not offset

	Amount at the end	Amount at the end	Amount at the beginning	Amount at the beginning
	of the period		of the period
	Taxable		Taxable
	temporary	Deferred tax	temporary	Deferred tax
Item	differences	liabilities	differences	liabilities
Investment property measured
through the fair value pattern	2,137,993,435.99	526,506,717.17	2,039,324,006.32	500,591,958.62
Others	93,490,423.74	22,313,928.47	61,872,988.90	15,468,247.24
Total	2,231,483,859.73	548,820,645.64	2,101,196,995.22	516,060,205.86

— 252 —

APPENDIX II

FINANCIAL INFORMATION OF JINKE PROPERTY

• (3) Details of unrecognized deferred tax assets

		Amount at the
	Amount at the end	beginning of the
Item	of the period	period
Deductable temporary difference
Provision for asset impairment	1,064,642,070.74	375,888,654.54
Deductible loss	335,159,258.70	245,224,927.91
Provision for impairment of goodwill	128,151.81	128,151.81
Estimated profit as calculated based on advance sale
income of real estate enterprises	139,354,215.71	46,267,437.40
Payroll payable	—	2,886,697.39
Others	101,584,195.83	7,614,175.07
Subtotal	1,640,867,892.79	678,010,044.12

(4) Deductible loss of unrecognized deferred tax assets will mature in the following years

		Amount at the
	Amount at the end	beginning of the
Year	of the period	period	Notes
2017	15,579,804.03	21,041,072.68		—
2018	21,218,524.73	82,596,735.28		—
2019	34,688,957.41	141,587,119.95		—
2020	263,671,972.53	—		—
Subtotal	335,159,258.70	245,224,927.91		—

(5) Other descriptions

The “Others” in the schedules of deferred tax liabilities not offset and the unrecognized deferred tax assets include deductible fees, taxes not put into the treasury, deferred income and other temporary differences.

17. Other non-current assets

• (1) Details

		Amount at the
	Amount at the end	beginning of the
Item	of the period	period
Assets for demolition of Anhui Guorun Electronic
Technology Co., Ltd.	70,000,000.00	—
Total	70,000,000.00	—

— 253 —

FINANCIAL INFORMATION OF JINKE PROPERTY

APPENDIX II

(2) Other descriptions

According to the Project Investment Cooperation Framework Agreement signed between Wuxi Jinke Jiarun Real Estate Development Co., Ltd. (hereinafter referred to as Wuxi Jiarun) and Anhui Guojing Microelectronics Co., Ltd. (hereinafter referred to as Anhui Guojing) on 28 August 2015, Wuxi Jiarun and Anhui Guojing planned to jointly develop the two lands owned by Anhui Guojing through the form of equity cooperation. Wuxi Jiarun acquired 51% equity of Guorun Electronic at the price of RMB35.7 million. The change with industrial and commercial authority and relevant formalities for such equity transfer have been completed in November 2015. As at 31 December 2015, the land owned by Guorun Electronic has not yet completed the demolition and the change of land use nature.

18. Short-term loans

Item Amount at the end of the period Guaranteed loan 1,030,000,000.00 Pledged loan 291,600,000.00 Mortgaged loan 560,000,000.00 Mortgaged and guaranteed loan — Total 1,881,600,000.00	Amount at the beginning of the period 1,420,000,000.00 548,670,000.00 40,000,000.00 198,000,000.00
	2,206,670,000.00

19. Notes payable

Item Amount at the end of the period Bank acceptance bill 1,317,213,982.92 Total 1,317,213,982.92 20. Accounts payable	Amount at the beginning of the period 1,361,651,268.76
	1,361,651,268.76

Item Amount at the end of the period Project accounts payable 7,672,794,812.86 Payment for materials and equipment payable 446,994,323.06 Total 8,119,789,135.92	Amount at the beginning of the period 6,783,171,536.06 391,377,038.56
	7,174,548,574.62

— 254 —

FINANCIAL INFORMATION OF JINKE PROPERTY

APPENDIX II

1. Advance receipts

2. (1) Details

Amount at the Amount at the end beginning of the Item of the period period Advance receipts of commodity housing 26,507,928,492.32 22,295,042,146.77 Others 77,042,667.09 135,581,324.48 Total 26,584,971,159.41 22,430,623,471.25

Item

• (2) Other descriptions

Payment collection of the advance-sale commodity housing

		Amount at the
	Amount at the end	beginning of the
Project name	of the period	period
Chongqing • Jinke Garden	310,750.00	277,962.00
Chongqing • Jinke VISAR International	554,043.00	3,558,611.00
Chongqing • Ants SOHO	48,483.56	48,483.56
Chongqing • Eastern Palace	28,955.46	30,419.46
Chongqing • Jinke Oriental Elegance County	496,112.80	496,112.80
Chongqing • Jinke Sunshine Town	7,578,368.00	11,637,327.50
Chongqing • Tianhu Town	1,535,491.72	1,535,491.72
Chongqing • Jinke World City	22,015,169.00	31,242,572.00
Chongqing • Jinke Star	29,954,379.00	—
Chongqing Hechuan • Jinke World City	76,079,907.00	461,633,358.00
Chongqing Hechuan • Nature City Project	250,739,075.00	82,905,655.00
Chongqing • Jinke Jiangjin World City	93,660,096.00	422,455,507.00
Chongqing Jiangjin • Jinke Central Park	606,932,177.00	500,195,502.00
Chongqing • Xiangjiang Garden	558,824.00	558,824.00
Chongqing • Jinke Oriental Palace	17,329,584.00	47,411,464.00
Chongqing • Jinke Bridge Village	1,018,539,051.63	1,908,076,569.04
Chongqing • Jinke Small Town Story	722,857.00	91,201.00
Chongqing • Jinke Sun Coast	40,056,511.00	38,879,451.00
Chongqing • Jinke Xicheng Courtyard	31,594,675.00	31,606,041.50
Chongqing • Jinke Leijiaqiao	624,399,522.17	1,085,282,700.48
Chongqing Bishan • Jinke Central Park	445,615,716.79	389,720,539.79
Chongqing Beibei • Jinke City	1,297,809,031.00	876,999,753.00
Chongqing • Wansheng Jinke China Health City	16,239,867.00	126,790,090.00

— 255 —

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FINANCIAL INFORMATION OF JINKE PROPERTY

		Amount at the
	Amount at the end	beginning of the
Project name	of the period	period
Chongqing • Jinke Times Center	1,445,940,284.68	1,104,854,985.68
Chongqing • Jinsha Waterfront	19,290,441.44	19,289,108.92
Chongqing • Yunhu City	897,143.83	1,079,554.03
Chongqing • Bridge Waterfront	264,645.78	1,166,757.58
Chongqing • Green Park	2,347,458.69	2,357,458.69
Chongqing • Jinke Ten Years City	989,873.50	264,426.00
Chongqing • China Town	1,248,911.52	1,211,820.52
Chongqing • Xiyong Tianchen	1,462,188,910.00	168,049,124.00
Chongqing • Jinke Konggang City	224,268,415.00	—
Chongqing • Jinke Central Washington	165,690,036.00	2,553,679.00
Chongqing Nanchuan • Jinke World City	428,972,101.00	45,209,709.00
Chongqing Kaixian • Jinke Kaizhou City	824,543,239.30	1,261,736,594.30
Chongqing Kaixian • Jinke Wealth Center	344,980,859.00	851,578,336.00
Chongqing Yunyang • Jinke World City	852,214,577.00	376,527,758.00
Chongqing Fuling • Jinke Golden Coast	28,898.38	30,898.38
Chongqing Fuling • Jinke Bridge Waterfront	232,047.23	—
Chongqing • Jinke Lake Town	5,762,077.44	28,284,334.28
Chongqing Fuling • Jinke World Corridor B	99,785.16	1,979,785.16
Chongqing Fuling • Jinke Central Park	12,448,418.44	76,413,664.32
Chongqing Fuling • Jinke World Corridor District A	138,869,661.12	138,869,661.12
Chongqing Changshou • Jinke Sunshine Town	34,810,598.91	395,437,833.07
Chongqing Fuling • Jinke Nature City	553,070,546.35	779,343,491.80
Chongqing Fuling • Jinke Nanhu Project	24,771,250.32	—
Chongqing Changshou • Jinke World City	853,764,836.86	339,226,984.21
Chongqing Fengdou • Jinke Golden Coast	158,945,758.14	18,310,053.60
Chongqing Yongchuan • Jinke Central Park	6,242,874.59	15,791,892.15
Chongqing Yongchuan • Jinke Sunshine Town	132,233,296.54	382,768,975.24
Chongqing Yongchuan • Jinke Park Palace	186,764,003.00	16,017,161.50
Chongqing Rongchang • Jinke World City	342,976,427.25	264,142,958.99
Chongqing Dazu • Jinke Central Park	471,577,430.55	680,746,641.06
Chengdu • Jinke Yicheng	461,346.60	451,346.60
Chengdu • Jinke Center	411,315,898.08	911,740,777.00
Chengdu • Jinke Star City	139,508,775.00	—
Chengdu • Jinke Bridge Village	172,330,483.08	106,100,933.97
Chengdu • Jinke Nature City	6,416,601.46	20,861,896.00
Chengdu • Jinke Oriental Elegance County	251,920,425.00	—
Suining • Jinke Beautiful Bay	9,232,401.00	—
Neijiang • Jinke Central Park	38,984,042.71	207,764,495.16
Neijiang • New City Center	598,501,629.76	194,269,742.00

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FINANCIAL INFORMATION OF JINKE PROPERTY

Project name Amount at the end of the period Neijiang • Times Center 138,669,764.25 Beijing • Patio Palace 5,340,750.67 Beijing • Jinke Napa House 881,086,404.00 Beijing • Jinke Bridge Garden 580,000.00 Beijing • Jinke Center 1,029,049,753.00 Jinan • Jinke World City 2,022,492,831.94 Qingdao • Jinke Star 50,000,000.00 Qingdao • Jinke Sunshine Town 205,896,067.00 Changsha • Flourishing Oriental Courtyard 28,135,236.61 Liuyang • Tianhu New City 8,330,968.00 Changsha • Jinke World City 254,869,060.17 Changsha • Jinke Center 455,870,441.85 Chenzhou • Central Park 81,894,893.00 Chenzhou • Nanling Eco-city “By the Water Side” 37,733,714.00 Wuxi • Jinke Eastern Palace 145,646.00 Wuxi • Jinke Dream House 633,989.01 Wuxi • Jinke Wanbo Plaza 3,060,562.00 Wuxi • Jinke Milan Garden B 692,384.00 Wuxi • Jinke Milano Residences A 926,891.00 Wuxi • Chengnan Aristocratic Family 556,818,109.26 Wuxi • Wealth Commercial Plaza 1,179,880,065.76 Jiangyin • Fairview Garden 1,671,343.00 Jiangyin • Oriental Courtyard 694,630.00 Jiangyin • Oriental Mansion 27,470,628.49 Zhangjiagang • Bridge Court 675,289,267.00 Zhangjiagang • Bridge Mansion 416,785,723.00 Jiangsu Rugao • Jinke World City 364,244,533.00 Suzhou • Scene Mansion 111,296,796.78 Suzhou • Nature Garden 721,011,724.00 Suzhou • World View 647,828,692.00 Nantong • Bridge Waterfront 8,532,023.10 Xi’an • Jinke Nature City 420,672,515.00 Zunyi • Jinke Central Park 709,300,925.00 Xinjiang • Jinke Household Appliances Expo 96,634,401.96 Xinjiang • Jinke Bridge Village 456,018,297.23 Chongqing • Meishe Project 464,404.40 Subtotal 26,507,928,492.32

Amount at the beginning of the period 37,180,951.00 6,196,324.52 329,584,048.00 1,321,567,302.32 — 1,211,364,910.00 — — 57,495,755.00 56,322,598.33 125,299,580.00 254,333,618.83 25,309,724.00 38,474,433.00 18,257,566.00 1,366,991.01 5,352,498.00 1,201,295.00 64,629,911.99 311,177,794.40 886,276,314.00 2,051,444.00 747,512.00 342,133,403.49 587,748,840.00 227,043,580.03 182,192,098.00 369,145,039.89 851,980,396.28 3,912,695.00 8,885,236.10 127,363,531.00 146,250,428.00 3,945,000.00 247,287,025.00 7,097,829.40

22,295,042,146.77

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FINANCIAL INFORMATION OF JINKE PROPERTY

APPENDIX II

22. Payroll payable

• (1) Details

Project Amount at the beginning of the period Short-term remuneration 222,407,715.69 Post-employment benefit - defined contribution plan 947,578.04 Total 223,355,293.73	Increase in the current period 1,347,949,833.34 92,205,323.79 1,440,155,157.13	Decrease in the current period 1,284,345,086.31 92,766,786.85 1,377,111,873.16	Amount at the end of the period 286,012,462.72 386,114.98
			286,398,577.70

(2) Details of short-term remuneration

Project Amount at the beginning of the period Salary, bonus, subsidy and grant 168,888,213.35 Employee welfare — Social insurance premium 267,194.12 Including: medical insurance 250,722.63 Work-related injury insurance premium 8,598.80 Childbearing insurance premium 7,872.69 Housing provident fund 904,043.17 Trade union fee and staff education fee 52,348,265.05 Termination benefit — Subtotal 222,407,715.69	Increase in the current period 1,186,997,556.44 25,748,051.73 46,412,828.56 39,731,067.95 3,913,042.02 2,768,718.59 42,173,991.50 41,599,756.88 5,017,648.23 1,347,949,833.34	Decrease in the current period 1,147,781,028.80 25,748,051.73 46,333,543.12 39,659,694.07 3,909,947.25 2,763,901.80 41,983,135.50 17,481,678.93 5,017,648.23 1,284,345,086.31	Amount at the end of the period 208,104,740.99 — 346,479.56 322,096.51 11,693.57 12,689.48 1,094,899.17 76,466,343.00 —
			286,012,462.72

• (3) Details of defined contribution plan

Item Amount at the beginning of the period Increase in the current period Decrease in the current period of Basic retirement insurance 903,189.33 86,914,058.78 87,468,989.34 Unemployment insurance premium 44,388.71 5,291,265.01 5,297,797.51 Subtotal 947,578.04 92,205,323.79 92,766,786.85	Amount at the end the period 348,258.77 37,856.21
	386,114.98

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FINANCIAL INFORMATION OF JINKE PROPERTY

23. Taxes payable

		Amount at the
	Amount at the end	beginning of the
Item	of the period	period
Business tax	175,675,394.76	169,465,202.92
VAT	15,267,713.13	11,503,142.10
Municipal maintenance and construction tax	12,158,246.67	12,678,835.82
Education surcharge	5,762,524.76	5,633,139.88
Local education surcharge	4,213,975.01	3,781,578.54
Land appreciation tax	161,572,393.93	104,859,847.48
Enterprise income tax	475,943,414.08	184,623,770.08
Withholding and paying personal income tax	8,858,512.54	7,666,097.47
Property tax	1,402,007.82	1,467,582.09
Land use tax	2,007,812.42	7,285,481.35
Others	4,386,454.43	5,027,005.45
Total	867,248,449.55	513,991,683.18
24. Interest payable
		Amount at the
	Amount at the end	beginning of the
Item	of the period	period
Interest of long-term loans with interest paid by
instalments and entire principal paid when due	228,144,778.96	107,635,618.29
Interest payable of short-term loans	3,980,780.87	5,702,036.23
Interest of trust funds	135,283,399.50	234,337,986.62
Bond interest	60,046,575.00	—
Total	427,455,534.33	347,675,641.14

1. Dividends payable

(1) Details

			Amount at the
		Amount at the end	beginning of the
Item		of the period	period
Dividends	from ordinary shares	23,912,698.46	23,912,698.46
Dividends	of other equity holders	4,472,222.22	—
Total		28,384,920.68	23,912,698.46

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FINANCIAL INFORMATION OF JINKE PROPERTY

• (2) Important dividends payable aged 1 year or above

Project

Hong Kong Grandview International Co., Ltd. Subtotal

Amount not paid Relevant reason 23,912,698.46 The other party did not urge repayment 23,912,698.46

1. Other payables

2. (1) Details

Project Amount at the end of the period Security deposit 540,834,859.14 Equity transfer price payable 15,700,000.00 Borrowings 591,840,756.93 Temporary receipts payable 377,067,133.40 Customers’ accounts collected and remitted 453,204,756.07 Others 923,971,172.10 Total 2,902,618,677.64	Amount at the beginning of the period 349,468,372.97 380,000,000.00 242,309,289.39 373,776,947.75 525,681,096.14 724,413,350.21
	2,595,649,056.46

• (2) Nature or content of other significant payables

	Amount at the end
Name of entity	of the period	Nature or content
Changsha Economic and Technical Development	250,000,000.00	Performance bond
Group Co., Ltd.
Henan Qide Enterprise Management Consulting	229,052,697.25	Borrowings of the
Co., Ltd.		subsidiary’s shareholders
USUM Investment Group Co., Ltd. [Note]	130,498,000.00	Borrowings of the
		subsidiary’s shareholders
Subtotal	609,550,697.25

[Note] According to the Cooperative Development Agreement signed between the subsidiary Chengdu Jinke Real Estate Development Co., Ltd. and USUM Investment Group, USUM Investment Group provided, as per the shareholding percentage, RMB105 million shareholders’ loan to Neijiang Jinke Hongjun Real Estate Development Co., Ltd. (hereinafter referred to as Neijiang Hongjun), by charging capital occupation fee at an annual interest rate of 12%. As at 31 December 2015, Neijiang Hongjun should pay a total capital occupation fee of RMB25.498 million to USUM Investment Group.

— 260 —

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FINANCIAL INFORMATION OF JINKE PROPERTY

1. Non-current liabilities maturing within one year

2. (1) Details

Project Amount at the end of the period Long-term loans maturing within one year 16,654,559,600.00 Creditor’s right maturing within one year and trust fund of the right of return on equity 1,290,000,000.00 Other non-current liabilities maturing within one year — Obligation of restricted stock repurchase [Note] 154,587,800.00 Total 18,099,147,400.00	Amount at the beginning of the period 7,596,319,600.00 1,050,000,000.00 185,000,000.00 —
	8,831,319,600.00

[Note] Refer to Note XI to the Financial Statements for details.

(2) Other descriptions

Creditor’s right maturing within one year and trust fund of the right of return on equity:

	Start date	Maturity		Amount at the
Loan unit	of loan	date of loan	Currency	end of the period	Remarks
Xinjiang Huarong Tianze Investment Partnership
(limited partnership) (hereinafter referred to
as Huarong Investment)	2014/4/30	2016/4/28	RMB	490,000,000.00	[Note 1]
China Orient Asset Management Co., Ltd.
Zhengzhou Office (hereinafter referred to as
Orient Management)	2014/3/20	2016/3/20	RMB	800,000,000.00	[Note 2]
Subtotal				1,290,000,000.00

• [Note 1] According to the Capital Increase Agreement and Supplemental Agreement to the Capital Increase Agreement signed between Huarong Investment, the Company, Chongqing Jinke Zhongjun Real Estate Development Co., Ltd. (hereinafter referred to as Zhongjun Real Estate), and Chongqing Zhongjun Investment Co., Ltd. (hereinafter referred to as Zhongjun Investment), Huarong Investment subscribed RMB60 million new registered capital of Zhongjun Real Estate at the price of RMB490 million. During the period when Huarong Investment held the equity of Zhongjun Real Estate, Zhongjun Real Estate paid capital occupation fees to Huarong Investment at the agreed time and annual yield. Shareholders of Zhongjun Real Estate agreed and had the obligation to repurchase Zhongjun Real Estate’s equity held by Huarong Investment on 28 April 2016 in the form agreed through consultation by the two parties. The said equity trust was classified as financial liabilities at the time of initial recognition and was stated under other non-current liabilities. In respect of the said equity trust, Chongqing Jinke Real Estate Development Co., Ltd. provided the RMB99.36 million registered capital of Zhongjun Real Estate held by it, and Zhongjun Investment provided the RMB95.4584 million registered capital of Zhongjun Real Estate held by it, as the maximum pledge guarantee. In the meantime, Chongqing Jinke Investment Holdings (Group) Co., Ltd. (hereinafter referred to as Jinke Investment) and Huang Hongyun provided the maximum warranty liability guarantee.

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FINANCIAL INFORMATION OF JINKE PROPERTY

• [Note 2] According to the Creditor’s Right Transfer Agreement signed between the Company, Hunan Jinke, Changsha Jinke Real Estate Development Co., Ltd. (hereinafter referred to as Changsha Jinke) and Oriental Management, Hunan Jinke transferred the creditor’s right of RMB801.8 million receivable by it from Changsha Jinke to Oriental Management at the consideration of RMB800 million, and Changsha Jinke should pay capital occupation fees according to the agreed interest rate. The transfer period of the said receivables is 24 months, and after the expiration, the Company will receive the creditor’s right receivable by Orient Management from Changsha Jinke at the price agreed under the contract. In respect of the aforesaid equity transfer, Hunan Jinke provided its 100% equity in Changsha Jinke as a pledge guarantee, and Jinke Investment, Huang Hongyun and his wife Tao Hongxia provided joint liability guaranty.

28. Long-term loans

Item Amount at the end of the period Guaranteed loan 1,742,000,000.00 Pledged loan 1,700,000,000.00 Mortgaged loan 4,242,500,000.00 Mortgaged and guaranteed loan 4,509,559,999.99 Pledged and guaranteed loan 200,000,000.00 Mortgaged, pledged and guaranteed loan 900,000,000.00 Total 13,294,059,999.99	Amount at the beginning of the period 9,296,900,000.00 — 3,758,750,000.00 5,956,300,000.00 1,499,260,000.00 800,000,000.00
	21,311,210,000.00

29. Bonds payable

(1) Details

Item Amount at the end of the period Medium-term notes 2,081,719,061.26 Corporate bonds in 2015 (public offering) 1,988,936,233.86 Corporate bonds in 2015 (non-public offering) 1,242,602,034.59 Total 5,313,257,329.71	Amount at the beginning of the period — — —
	—

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FINANCIAL INFORMATION OF JINKE PROPERTY

• (2) Increase and decrease of bonds payable

Bond name Medium-term notes Corporate bonds in 2015 (public offering) Corporate bonds in 2015 (non-public offering) Subtotal Bond name Medium-term notes Corporate bonds in 2015 (public offering) Corporate bonds in 2015 (non-public offering) Subtotal	Face value Date of issue Bond duration 100.00 20 November 2015 3 years 100.00 28 August 2015 3+2 years 100.00 16 December 2015 2+1 years Issuance in the current period Accrued interest based on face value Amortization of the premiums and discounts 2,081,100,000.00 — 619,061.26 1,987,600,000.00 — 1,336,233.86 1,242,500,000.00 — 102,034.59 5,311,200,000.00 — 2,057,329.71	Face value Date of issue Bond duration 100.00 20 November 2015 3 years 100.00 28 August 2015 3+2 years 100.00 16 December 2015 2+1 years Issuance in the current period Accrued interest based on face value Amortization of the premiums and discounts 2,081,100,000.00 — 619,061.26 1,987,600,000.00 — 1,336,233.86 1,242,500,000.00 — 102,034.59 5,311,200,000.00 — 2,057,329.71	Amount issued 2,100,000,000.00 2,000,000,000.00 1,250,000,000.00 5,350,000,000.00 Repayment in the current period — — — —	Amount at the beginning of the period — — —
				—
				Amount at the end of the period 2,081,719,061.26 1,988,936,233.86 1,242,602,034.59
		2,057,329.71		5,313,257,329.71

(3) Other descriptions

Refer to for Note XIV (II). 9. 10 and 11 to the Financial Statements for details of issuance of medium-term notes and bonds of the Company during the reporting period.

30. Deferred earnings

(1) Details

		Amount at the			Amount at the
		beginning of the	Increase in the	Decrease in the	end of the
Item		period	current period	current period	period	Forming reason
Government	subsidies	72,928,871.54	11,406,300.00	4,369,674.92	79,965,496.62	Special fiscal subsidy
						for charges for
						infrastructure
						construction
Total		72,928,871.54	11,406,300.00	4,369,674.92	79,965,496.62

— 263 —

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FINANCIAL INFORMATION OF JINKE PROPERTY

• (2) Details of government subsidies

			Amount stated
	Amount at the	Increased	as non-operating		Amount at the	Related to
	beginning of the	subsidies in the	revenue in the	Other	end of the	assets/related to
Item	period	current period	current period	changes	period	revenues
Special fiscal subsidy	72,928,871.54	11,406,300.00	4,369,674.92	—	79,965,496.62	Related to assets
for charges for
infrastructure
construction
Subtotal	72,928,871.54	11,406,300.00	4,369,674.92	—	79,965,496.62

31. Other non-current liabilities

Amount at the Amount at the end beginning of the Item of the period period Creditor’s right, equity and trust fund of the right of return on equity — 1,290,000,000.00 Obligation of restricted stock repurchase [Note] 463,763,400.00 — Total 463,763,400.00 1,290,000,000.00

Item

[Note] Refer to Note XI to the Financial Statements for details.

32. Share capital

(1) Details

			Increase/decrease in the current period (“-” for decrease)	Increase/decrease in the current period (“-” for decrease)	Increase/decrease in the current period (“-” for decrease)
		Amount at		Transfer			Amount at the
		the beginning	Issuance of	Bonus from capital			end of the
Item		of the period	new shares	shares reserves	Others	Subtotal	period
Total	shares	1,378,540,051.00	191,440,000.00	827,124,031.00 1,929,956,071.00	— 2,948,520,102.00		4,327,060,153.00

(2) Other descriptions

• 1) The increase in the issuance of new shares is caused by the implementation of equity incentive plans. Refer to Note XI to the Financial Statements for details. The capital increase has been verified by Pan-China Certified Public Accountants (special general partnership), which has issued the Capital Verification Report (Tian Jian Yan [2015] No. 8-125).

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FINANCIAL INFORMATION OF JINKE PROPERTY

• 2) The bonus shares and transfer from capital reserves totally increased share capital of RMB2,757,080,102.00, which was based on the resolution at the annual general meeting 2014 of the Company, according to which the Company, based on the existing share capital recorded on 31 December 2014, issued 14 new shares for every 10 shares to all shareholders through funding from its capital reserve, and allotted 6 shares of bonus shares for every 10 shares to all the shareholders with undistributed profits.

• Other equity instruments

• (1) Basic information about perpetual bonds outstanding at the end of the period

The Company obtained RMB1.4 billion open-ended loans issued by Minsheng Royal Asset Management Co., Ltd.

• (2) Changes in perpetual bonds outstanding at the end of the period

		Amount at the beginning	Amount at the beginning
		of the period		Increase in the current period
Item		Quantity	Book value	Quantity	Book value
Perpetual	bonds	—	—	—	1,400,000,000.00
Subtotal		—	—	—	1,400,000,000.00
		**Decrease in the **	current	**Amount at **	the end of the
		period		period
Item		Quantity	Book value	Quantity	Book value
Perpetual	bonds	—	—	—	1,400,000,000.00
Subtotal		—	—	—	1,400,000,000.00

• (3) Other descriptions

According to the Entrusted Loan Agreement signed between the Company, Minsheng Royal Asset Management Co., Ltd. (hereinafter referred to as Minsheng Royal), and China Minsheng Banking Corp., Ltd., Chongqing Branch (hereinafter referred to as Minsheng Banking Chongqing Branch), which was considered and approved at the 10th extraordinary general meeting 2014 of the Company on 25 December 2014, Minsheng Royal should set up a special asset management plan to raise funds and entrust Minsheng Banking Chongqing Branch to use the raised funds to issue RMB1.4 billion open-ended loans to the Company. As the said Entrusted Loan Agreement did not specify contractual obligations of delivering cash or other financial assets to other parties, or contractual obligations of exchanging financial assets or financial liabilities with other parties under potentially unfavourable conditions, which was in line with the definition of equity instruments in the Accounting Standards for Enterprises No. 22 — Recognition and Measurement of Financial Instruments , the Accounting

— 265 —

APPENDIX II

FINANCIAL INFORMATION OF JINKE PROPERTY

Standards for Enterprises No. 37 — Presentation of Financial Instruments , and the Provisions on the Distinction between Financial Liability and Equity Instruments and the Relevant Accounting Treatment , the Company recognized the RMB1.4 billion open-ended loans it received as other equity instruments.

1. Capital reserve

2. (1) Details

Item Capital premium Other capital reserve Total	Amount at the beginning of the period 1,998,162,830.19 104,155,946.89 2,102,318,777.08	Increase in the current period 454,885,032.24 7,097,450.57 461,982,482.81	Decrease in the current period Amount at the end of the period 1,983,959,908.98 469,087,953.45 — 111,253,397.46 1,983,959,908.98 580,341,350.91	Decrease in the current period Amount at the end of the period 1,983,959,908.98 469,087,953.45 — 111,253,397.46 1,983,959,908.98 580,341,350.91
				580,341,350.91

• (2) Other descriptions

• 1) The capital premium for the current period increased by RMB454,849,299.02, among which, RMB426,911,200.00 came from the issuance of restricted stocks. Refer to Note XI to the Financial Statements for details; the capital increase of CMK Capital, a shareholder of Xinjiang Huaran Oriental New Energy Co., Ltd., increased capital premium by RMB27,973,832.24.

• 2) As recognized in other capital reserves for the current period, the equity incentive cost increased by RMB7,097,450.57, among them, RMB5,250,679.69 came from the equity-settled share-based payment. Refer to Note XI to the Financial Statements for details; According to the Bulletin of the State Administration of Taxation on Income Tax Treatment of Resident Enterprises Executing Equity Incentive Plans (Bulletin [2012] No. 18 of the State Administration of Taxation), the Company recognized and stated the deferred tax assets of RMB1,846,770.88 adjusted on the basis of differences in the equity incentive accounting and tax payment as the capital reserve.

• 3) The capital premium for the current period reduced by RMB1,983,959,908.98, of which: RMB1,929,956,071.00 was caused by the transfer from capital reserve. Refer to Note V(I).32 to the Financial Statements for details; the acquisition of minority interests of the subsidiary Chongqing Jinke Huiyi Real Estate Development Co., Ltd. reduced the capital premium by RMB19,540,372.98; the acquisition of minority interests of the subsidiary Chongqing Jinke Junwei Real Estate Development Co., Ltd. reduced the capital premium by RMB25,546,722.67; the acquisition of minority interests of the subsidiary Chongqing Jinke Hongrui Real Estate Development Co., Ltd. reduced the capital premium by RMB8,916,742.33.

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FINANCIAL INFORMATION OF JINKE PROPERTY

35. Treasury shares

• (1) Details

Item Amount at the beginning of the period Restricted stock — Total —	Increase in the current period Decrease in the current period 618,351,200.00 — 618,351,200.00 —	Amount at the end of the period 618,351,200.00
		618,351,200.00

(2) Other descriptions

The increase of RMB618,351,200.00 was formed by the 191,440,000 restricted RMB ordinary shares (A shares) issued to the incentive targets of shares. Refer to Note XI to the Financial Statements for details.

36. Other comprehensive income

(1) Details

						Amount incurred in the current period	Amount incurred in the current period	Amount incurred in the current period	Amount incurred in the current period
					Less: Those
					included in
							other
				comprehensive
					income in the
				previous period					The amount	**The **	amount
				but transferred					after tax	after tax
	Amount at the	Pre-tax amount		into the profit					attributed to	attributed to		Amount at the
	beginning of	**in **	the current		**or **	loss in the		Less: Income	the parent	minority		end of the
Item	the period		period	current period				tax expense	company	shareholders		period
Other
comprehensive
income will be
reclassified
into profit and
loss	594,504,975.70	35,157,255.39					—	8,789,313.85	26,367,941.54		—	620,872,917.24
Of which: The
difference
between the
fair value and
book value of
investment
property
converted from
inventories	594,504,975.70	35,157,255.39					—	8,789,313.85	26,367,941.54		—	620,872,917.24
Other
comprehensive
income	594,504,975.70	35,157,255.39					—	8,789,313.85	26,367,941.54		—	620,872,917.24

— 267 —

FINANCIAL INFORMATION OF JINKE PROPERTY

APPENDIX II

(2) Other descriptions

As settlements for relevant engineering contracts for commercial building and garage of Jinke • Fuling World Corridor District B, an investment property transferred by the Company in 2012 and 2013, are completed this year, it is necessary to reduce the book value of investment property originally carried forward according to the target cost. On the date of conversion, the original book value of the said investment property is RMB618,930,850.02, which should be adjusted to RMB35,157,255.39 after settlement, increasing other comprehensive income by RMB26,367,941.54 after deducting the effects of the income tax.

37. Surplus reserve

(1) Details

Item Amount at the beginning of the period Statutory surplus reserve 161,768,591.16 Total 161,768,591.16	Increase in the current period Decrease in the current period Amount at the end of the period 148,147,570.98 — 309,916,162.14 148,147,570.98 — 309,916,162.14	Increase in the current period Decrease in the current period Amount at the end of the period 148,147,570.98 — 309,916,162.14 148,147,570.98 — 309,916,162.14
		309,916,162.14

• (2) Other descriptions

The increase in the current period is the RMB148,147,570.98 statutory surplus reserve withdrawn according to 10% of the net profit of the parent company.

38. Undistributed profits

Item Undistributed profits at the beginning of the year Add: Net profit attributable to owners of the parent company in the current period Less: Statutory surplus reserve Common stock dividends payable Common dividend converted into share capital Others [note] Undistributed profits at the end of the period	Amount of the period 6,292,813,928.44 1,266,959,610.26 148,147,570.98 206,781,007.65 827,124,031.00 143,558,333.33 6,234,162,595.74	Amount in the same period of preceding year 5,657,563,669.18 907,884,138.79 133,609,073.41 139,024,806.12 — —
		6,292,813,928.44

— 268 —

APPENDIX II

FINANCIAL INFORMATION OF JINKE PROPERTY

• [Note] According to the Entrusted Loan Agreement signed between the Company, Minsheng Royal Asset Management Co., Ltd. (hereinafter referred to as Minsheng Royal), and China Minsheng Banking Corp., Ltd., Chongqing Branch (hereinafter referred to as Minsheng Banking Chongqing Branch), the interest rate of the entrusted loan is 11.5% of the loan principal for the first year, 12% for the second year, 15% for the third year, and 18% for the fourth year and beyond. If the Company, Chongqing Jiangjin Jinke Guojun Property Co., Ltd. (hereinafter referred to Guojun Property) and Chongqing Jinke Shangzun Property Co., Ltd. (hereinafter referred to Shangzun Property) announce dividends in a certain year, the Company should pay the capital cost for the said year and accumulated in previous years. This year, the Company paid the interest of RMB139,086,111.11 to Minsheng Royal, the holder of other equity instruments, for the period from 13 February to 21 December 2015, and is expected to pay the interest of RMB4,472,222.22 to Minsheng Royal for the period from 22 to 31 December 2015 according to the contract.

(II) Notes to consolidated statement of income

1. Operating revenue/cost

			**Amount in the **	same period of
	**Amount in the **	current period	preceding year
Item	Revenue	Cost	Revenue	Cost
Revenues from main
businesses	19,171,310,980.24	13,828,075,210.46	17,072,075,914.64	13,251,834,856.09
Revenue from other
businesses	227,262,340.66	58,928,446.52	251,431,351.53	84,823,665.12
Total	19,398,573,320.90	13,887,003,656.98	17,323,507,266.17	13,336,658,521.21

2. Business taxes and surcharges

Item Business tax Municipal maintenance and construction tax Education surcharge Local education surcharge Land appreciation tax Property tax Others Total	Amount in the current period 1,002,961,017.37 66,768,573.08 30,876,164.56 20,736,268.27 346,727,727.11 10,855,613.19 843,709.71 1,479,769,073.29	Amount in the same period of preceding year 885,723,539.91 59,309,778.56 27,409,552.21 18,369,107.70 236,351,457.00 11,715,772.90 1,661,179.69
		1,240,540,387.97

— 269 —

APPENDIX II

FINANCIAL INFORMATION OF JINKE PROPERTY

3. Sales expenses

Item Advertising & publicity expenses Remuneration of employees Others Total	Amount in the current period 318,391,728.35 243,473,292.64 131,646,343.22 693,511,364.21	Amount in the same period of preceding year 316,126,287.10 194,157,520.18 127,787,511.64
		638,071,318.92

1. Management expenses

Item Remuneration of employees Office administrative expense Taxes Impairment of fixed assets Equity incentive cost Others Total	Amount in the current period 540,007,750.60 166,665,962.83 24,089,949.86 31,922,821.21 5,250,679.69 154,697,319.88 922,634,484.07	Amount in the same period of preceding year 440,897,346.91 141,080,380.94 24,783,210.24 33,175,858.38 — 79,384,349.19
		719,321,145.66

1. Financial expenses

Item Interest expenses Less: interest income Others Total	Amount in the current period 346,088,155.50 133,613,775.73 55,777,580.26 268,251,960.03	Amount in the same period of preceding year 186,257,367.15 97,022,701.19 73,745,173.79
		162,979,839.75

1. Assets impairment loss

Item Loss from bad debts Inventory impairment loss Total	Amount in the current period 73,829,191.32 406,835,393.88 480,664,585.20	Amount in the same period of preceding year 37,621,413.88 731,873,691.79
		769,495,105.67

— 270 —

APPENDIX II

FINANCIAL INFORMATION OF JINKE PROPERTY

1. Revenue from change in fair value

		Amount in the
	Amount in the	same period of
Item	current period	preceding year
Financial assets at fair value through profit or loss	—	160,000.00
Investment property measured by fair value	39,863,547.99	54,152,554.05
Total	39,863,547.99	54,312,554.05

8. Return on investment

		Amount in the
	Amount in the	same period of
Item	current period	preceding year
Long-term equity investment return stated by equity
method	-5,152,881.59	29,781,399.44
Investment return generated by disposal of long-term
equity investment	41,991,282.68	14,295,198.13
Others	—	671,399.49
Total	36,838,401.09	44,747,997.06

9. Non-operating revenue

• (1) Details

Item Amount in the current period Gain from disposal of non-current assets 778,491.46 Including: Gain from disposal of fixed assets 778,491.46 Government subsidies 57,092,680.39 Revenues from fines and liquidated damages 30,389,189.41 Revenues from disposal of waste and old materials 406,616.98 Others 10,334,532.46 Total 99,001,510.70	Amount in the same period of preceding year Amount stated as non-recurring gains/losses in the current period 1,005,175.42 778,491.46 1,005,175.42 778,491.46 202,178,584.12 57,092,680.39 28,069,969.45 30,389,189.41 301,908.87 406,616.98 6,034,103.55 10,334,532.46 237,589,741.41 99,001,510.70	Amount in the same period of preceding year Amount stated as non-recurring gains/losses in the current period 1,005,175.42 778,491.46 1,005,175.42 778,491.46 202,178,584.12 57,092,680.39 28,069,969.45 30,389,189.41 301,908.87 406,616.98 6,034,103.55 10,334,532.46 237,589,741.41 99,001,510.70
		99,001,510.70

— 271 —

APPENDIX II

FINANCIAL INFORMATION OF JINKE PROPERTY

• (2) Details of government subsidies

Subsidy programs Amount in the current period Financial subsidies [Note] 41,023,038.54 Others 16,069,641.85 Subtotal 57,092,680.39	Amount in the same period of preceding year Related to assets/related to revenues 183,936,700.00 Related to revenues 18,241,884.12 Related to revenues 202,178,584.12

• [Note] They are financial subsidiaries received from local governments at various levels by the subsidiaries Chongqing Jinke Industrial Group Kerun Real Estate Development Co., Ltd. and Chongqing Jinke Kunhe Investment Co., Ltd.

10. Non-operating expenditure

			Amount stated as
		Amount in the	non-recurring
	Amount in the	same period of	gains/losses in the
Item	current period	preceding year	current period
Loss from disposal of non-current
assets	428,538.06	394,476.81	428,538.06
Including: Loss on the disposal of
fixed assets	428,538.06	394,476.81	428,538.06
Donation	19,454,230.00	18,552,475.20	19,454,230.00
Expenditure of compensation	9,846,628.96	14,882,831.10	9,846,628.96
Expenditure of late fee	19,981,236.50	401,733.09	19,981,236.50
Others	8,050,874.11	5,425,956.06	8,050,874.11
Total	57,761,507.63	39,657,472.26	57,761,507.63

11. Income tax expense

• (1) Details

Item Current income tax expense Deferred income tax expense Total	Amount in the current period 675,452,009.35 -124,417,941.05 551,034,068.30	Amount in the same period of preceding year 71,944,753.22 -181,550,050.83
		-109,605,297.61

— 272 —

APPENDIX II

FINANCIAL INFORMATION OF JINKE PROPERTY

(2) Accounting profit and adjustment process of income tax expense

Item Amount in the current period Total profit 1,784,680,149.27 Income tax expense calculated by statutory / applicable tax rates 446,170,037.32 Impact of application of different tax rates by subsidiaries -219,779,556.52 Impact of adjustment in previous income tax 16,164,900.04 Impact of non taxable income 1,603,323.25 Impact of non-deductible costs, expenses and losses 25,800,155.22 Impact of using deductible loss of previous unrecognized deferred tax assets Impact of deductable temporary difference or deductible loss of unrecognized deferred tax assets in the current period 281,075,208.99 Others — Income tax expense 551,034,068.30

Amount of last period 753,433,767.25 188,358,441.81 -159,333,890.20 8,357,584.23 -7,445,349.86 9,808,113.87 125,521,395.81 -274,871,593.26

-109,605,297.61

1. After-tax net amount of other comprehensive income

For after-tax net amount of other comprehensive income, please refer to the comprehensive income in the notes to the consolidated balance sheet in the Notes to the Financial Statements.

(III) Notes to consolidated statement of cash flow

1. Other cash received relating to operating activities

Item Funds flow between units Amount collected and remitted Security deposit Finance subsidies Interest income from funds Others Total	Amount in the current period 910,534,988.54 538,254,999.40 792,340,818.41 64,129,305.47 133,613,775.73 521,846,631.37 2,960,720,518.92	Amount in the same period of preceding year 1,838,284,970.31 551,766,744.77 690,085,673.88 212,299,699.00 97,022,701.19 393,013,815.91
		3,782,473,605.06

— 273 —

FINANCIAL INFORMATION OF JINKE PROPERTY

APPENDIX II

1. Other cash paid relating to operating activities

Item Funds flow between units Amount collected and remitted Security deposit Out-of-pocket expenses Others Total	Amount in the current period 1,153,548,643.07 511,407,532.23 571,159,421.36 771,401,354.28 732,582,921.13 3,740,099,872.07	Amount in the same period of preceding year 2,218,841,930.80 482,753,190.28 698,099,247.91 753,250,103.27 608,784,130.52
		4,761,728,602.78

1. Other cash received relating to financing activities

Item Collection of financing bill discounted Loans of entities Loans and financing bills against a pledge of time deposit certificates and net reduction in security deposit Open-ended loans received from Minsheng Bank Total 4. Other cash paid relating to financing activities Item Increase in acceptance of financing bills Payment for purchase of minority interest in subsidiaries Loans of entities Cost of medium-term notes and property assets for supporting securitized financing Loans and financing bills against a pledge of time deposit certificates and net increase in security deposit Total	Amount in the current period 5,934,313,551.11 93,261,298.66 221,693,822.26 1,400,000,000.00 7,649,268,672.03 Amount in the current period 6,429,640,000.00 362,097,400.00 220,169,761.79 24,450,000.00 — 7,036,357,161.79	Amount in the same period of preceding year 5,367,372,094.80 191,500,000.00 — —
		5,558,872,094.80
		Amount in the same period of preceding year 5,717,500,000.00 — 1,070,368,244.93 — 106,590,520.88
		6,894,458,765.81

— 274 —

FINANCIAL INFORMATION OF JINKE PROPERTY

APPENDIX II

1. Supplementary information of cash flow statement

2. (1) Supplementary information of cash flow statement

Supplementary information 1. Reconciliation of net profit to cash flows from operating activities: Net profit Add: Provision for asset impairment Impairment of fixed assets, oil and gas assets and production-type biological assets Amortization of intangible assets Amortization of long-term prepaid expenses Loss from disposal of fixed assets, intangible assets and other long-term assets (“-” for gain) Loss on scrapping of fixed assets (“-” for gains) Loss from change in fair value (“-” for gain) Financial expense (“-” for gain) Loss from investment (“-” for gain) Decrease in deferred tax assets (“-” for increase) Increase in deferred tax liabilities (“-” for decrease) Decrease in inventories (“-” for increase) Decrease in operating receivables (“-” for increase) Increase in operating payables (“-” for decrease) Others Net cash flow from operating activities 2) Significant investing and financing activities not involving cash receipts and payments: Debts changed to capital Convertible corporate bonds maturing within one year Fixed assets acquired under finance lease 3) Net changes in cash and cash equivalents: Ending balance of cash Less: Opening balance of cash Add: Ending balance of cash equivalents Less: Opening balance of cash equivalents Net increase in cash and cash equivalents	Amount in the current period 1,233,646,080.97 480,664,585.20 153,851,271.80 6,012,471.46 11,893,511.39 -349,953.40 -39,863,547.99 346,088,155.50 -36,838,401.09 -148,389,066.98 23,971,125.93 -7,555,494,835.06 -132,029,355.32 6,069,107,985.30 — 412,270,027.71 — — — 7,967,303,772.09 5,805,282,261.64 — — 2,162,021,510.45	Amount in the same period of preceding year 863,039,064.86 769,495,105.67 56,393,885.04 5,648,667.64 9,007,132.02 -610,698.61 -54,312,554.05 186,257,367.15 -44,747,997.06 -183,678,769.02 2,128,718.19 -14,308,314,222.51 -208,527,568.87 4,523,458,869.47 —
		-8,384,763,000.08
		— — — 5,805,282,261.64 4,712,813,588.73 — — 1,092,468,672.91

— 275 —

FINANCIAL INFORMATION OF JINKE PROPERTY

APPENDIX II

• (2) Net cash paid for acquisition of subsidiaries in the current period

	Amount in the current
Item	period
Cash and cash equivalents paid for merger of enterprises in the current
period	71,020,000.00
Among which: Zhengzhou Xinyinke Real Estate Co., Ltd.	51,020,000.00
Zunda Property Management Co., Ltd.	0.00
Anhui Guorun Electronic Technology Co., Ltd.	20,000,000.00
Less: Cash and cash equivalents held by subsidiaries on the date of
acquisition	259,848.51
Among which: Zhengzhou Xinyinke Real Estate Co., Ltd.	93,576.62
Zunda Property Management Co., Ltd.	166,231.89
Anhui Guorun Electronic Technology Co., Ltd.	40.00
Add: Cash and cash equivalents paid for merger of enterprises in the
previous period	334,978,515.52
Net cash received from subsidiaries	405,738,667.01

• (3) Composition of cash and cash equivalents

		Amount at the
	Amount at the end	beginning of the
Item	of the period	period
1) Cash	7,967,303,772.09	5,805,282,261.64
Including: Stock cash	833,758.55	1,223,580.13
Bank deposits used for payment at any time	7,966,470,013.54	5,804,058,681.51
2) Cash equivalents	—	—
Including: Bond investments maturing within three
months	—	—
3) Ending balance of cash and cash equivalents	7,967,303,772.09	5,805,282,261.64
Including: Cash and cash equivalents restrictedly used
in the parent company or subsidiaries	—	—

• (4) Description of supplementary information of cash flow statement

As at 31 December 2015, other monetary funds totalled RMB1,421,884,489.74, including: pledged time deposits of RMB307,080,000.00, bank acceptance deposits of RMB948,331,136.12, mortgage deposits of RMB131,136,606.98, and guarantee deposits of RMB35,336,746.64. In the preparation of the cash flow statement, the Company has removed items not tallying with cash and cash equivalents from the cash flow statement.

— 276 —

FINANCIAL INFORMATION OF JINKE PROPERTY

APPENDIX II

(IV) Others

1. Assets with ownership or right of use restricted

Book value at the Book value at the beginning of the Reason for Item end of the period period restriction Monetary fund 1,421,884,489.74 1,721,849,342.67 Margin deposit Accounts receivable [Note] 162,071,601.97 346,808,430.00 Pledged loan Inventory 18,303,055,894.48 19,766,160,882.27 Mortgaged loan Investment property 1,932,254,486.05 1,739,433,040.23 Mortgaged loan Fixed assets 1,369,612,973.13 576,989,350.87 Mortgaged loan Construction in progress 149,031,423.92 612,835,176.98 Mortgaged loan Intangible assets 24,886,771.14 28,171,281.17 Mortgaged loan Total 23,362,797,640.43 24,792,247,504.19

• [Note] According to the Accounts Receivable Pledge Agreement under the Engineering General (Excluding Design) Contract of Phase II (150 MW) of the Sixth Wind Farm (200 MW) Project in Yandun, Hami of Xinjiang Huaran Oriental New Energy Co., Ltd. signed between the subsidiary Xinjiang Huaran and Xijiang Haiwei New Energy Power Engineering Co., Ltd. (the Pledgee), the Pledgor agreed to provide the electricity charging right related to its project and all revenues under it to the Pledgee as a pledge guarantee; according to the Entrusted Loan Agreement and the Pledge Contract of CMS Super Value — Jinke Property Asset-backed Plan No. 1 under the Asset Transfer Agreement of CMS Super Value — Jinke Property Asset-backed Plan No. 1 signed by the Company and the Company’s subsidiary Jinke Property Services Group Limited (the Pledgor) with CMS Asset Management Co., Limited (the Pledgee), the Pledgor agreed to provide all the property service fees and parking management fees it collected to the Pledgee as a pledge guarantee.

2. Foreign currency monetary items

Foreign currency balance at the end Item of the period Exchange rate RMB equivalent Monetary fund Including: HKD 1,074,892.47 0.8378 900,544.91

— 277 —

FINANCIAL INFORMATION OF JINKE PROPERTY

APPENDIX II

VI. Change in the consolidation scope

• (I) Merger of enterprises not under the same control

• Merger of enterprises not under the same control in the current period

In RMB’0,000

			Percentage
			of equity
			acquired
Name of the acquired party	Acquisition time	Acquisition cost	(%)	Way of acquisition
Zhengzhou Xinyinke Real Estate	30 June 2015	51,020,000.00	50.00	Equity transfer
Co., Ltd. [Note 1]
Anhui Guorun Electronic	31 August 2015	35,700,000.00	51.00	Equity transfer
Technology Co., Ltd. [Note 2]
Chongqing Zunda Property	1 October 2015	0.00	51.00	Equity transfer
Management Co., Ltd.
			**Revenue of **	the	Net profit of the
			acquired party		acquired party
			from the date of		from the date of
		Determination	acquisition to		acquisition to
	Date of	basis for the date	**the end of **	the	the end of the
Name of the purchased party	acquisition	of acquisition	period		period
Zhengzhou Xinyinke Real	30 June 2015	Handover date of		—	93,787.98
Estate Co., Ltd.		property right
Anhui Guorun Electronic	31 August 2015	Handover date of		—	-51,300.00
Technology Co., Ltd.		property right
Chongqing Zunda Property	1 October 2015	Handover date of		—	-302,993.39
Management Co., Ltd.		property right

[Note 1] On 16 July 2015, Wuxi Jinke Jiarun Real Estate Development Co., Ltd. (hereinafter referred to as Wuxi Jiarun), a subsidiary of the Company, acquired 50% equity of Zhengzhou Xinyinke Real Estate Co., Ltd. (hereinafter referred to as Zhengzhou Xinyinke) held by Henan Huanghe Petroleum Gas Co., Ltd. at a price of RMB51.02 million, and according to the agreement, Wuxi Jiarun could conduct control over the operation and management of Zhengzhou Xinyinke, so it was incorporated into the scope of the consolidated financial statements.

• [Note 2] Refer to Note [V] (I). 17 to the Financial Statements for details.

— 278 —

FINANCIAL INFORMATION OF JINKE PROPERTY

APPENDIX II

1. Merger cost and goodwill

In RMB’0,000

	Zhengzhou
Item	Xinyinke Guorun Electronic		Zunda Property
Merger cost
Cash	5,102.00	3,570.00	—
Fair value of the previously held
equity on the date of
acquisition	—	—	—
Total merger cost	5,102.00	3,570.00	0.00
Less: Share of the fair value of the
acquired identifiable net assets	4,620.37	3,570.00	-514.87
Amount of goodwill/merger cost
below the share of the fair value
of the acquired identifiable net
assets	481.63 [Note 1]	—	514.87 [Note 2]

• [Note 1] The cost for Wuxi Jiarun’s acquisition of 50% equity of Zhengzhou Xinyinke in the current period was RMB51.02 million, and on the date of acquisition, the fair value of the identifiable net assets of Zhengzhou Xinyinke that Wuxi Jiarun was entitled to was RMB46,203,700; as the acquisition was mainly the acquisition of the land for Zhengzhou Xinyinke’s project, the Company stated RMB4,816,300 of the difference of the merger cost above the fair value of identifiable net assets that Wuxi Jiarun was entitled to as the premium of the land to be acquired in the consolidated financial statements.

• [Note 2] According to the Cooperation Agreement signed between Jinke Property Services Group Limited (hereinafter referred to as Jinke Property), a subsidiary of the Company, and the natural person Lei Shuisheng, Jinke Property acquired 51% equity of Chongqing Zunda Property Management Co., Ltd. (hereinafter referred to as Zunda Property) at a consideration of RMB0, and on the date of acquisition, Jinke Property was entitled to -RMB5,148,667.73 of the net assets of Zunda Property as per the shareholding percentage of 51% and the recognized goodwill of merger of enterprises not under the same control was RMB5,148,667.73.

— 279 —

APPENDIX II

FINANCIAL INFORMATION OF JINKE PROPERTY

1. Identifiable assets and liabilities of the acquired party as of the date of acquisition

In RMB’0,000

	Xinyinke	Xinyinke	Guorun Electronic	Guorun Electronic		Zunda Property	Zunda Property
	Date of	Date of	Date of	Date of		Date of	Date of
	acquisition	acquisition	acquisition	acquisition		acquisition	acquisition
Item	Fair value	Book value	Fair value	Book value		Fair value	Book value
Assets
Monetary fund	111.01	111.01	—		—	21.53	21.53
Accounts receivable
Advance payments	36,894.92	36,894.92	—		—	5.07	5.07
Other receivables	35.90	35.90	—		—	635.93	635.93
Inventory	20.14	20.14	—		—	—	—
Other current assets	—	—	—		—	—	—
Fixed assets	117.93	117.93	—		—	6.41	6.41
Projects in progress	—	—	—		—	—	—
Other non-current assets	—	—	7,000.00	7,000.00		—	—
Liabilities
Accounts payable	173.86	173.86	—		—	—	—
Advance receipts	—	—	—		—	0.56	0.56
Payroll payable	—	—	—		—	30.52	30.52
Taxes payable	0.26	0.26	—		—	1.06	1.06
Other payables	27,765.05	27,765.05	1,646.34	1,646.34		—	—
Net assets	9,240.74	9,240.74	7,000.00	7,000.00		-1,009.54	-1,009.54
Less: Minority interests	—	—	—		—	—	—
Net assets acquired	9,240.74	9,240.74	7,000.00	7,000.00		-1,009.54	-1,009.54

(II) Change in the consolidation scope for other reason

1. Increase of the consolidation scope

			Contribution
	Way of		amount
Company name	acquisition	Acquisition time	(RMB’0,000)	Percentage (%)
Xinjiang Jinke Yijia Real	New establishment	24 April 2015	10,000.00	100.00
Estate Development Co., Ltd.
Chongqing Jinke Wuchen Real	New establishment	16 September	3,000.00	100.00
Estate Development Co., Ltd.		2015
Chongqing Jinke Zhuchen Real	New establishment	27 August 2015	3,000.00	100.00
Estate Co., Ltd.
Jinke Group Suzhou Dongjun	New establishment	10 October 2015	2,000.00	100.00
Real Estate Development
Co., Ltd.

— 280 —

APPENDIX II

FINANCIAL INFORMATION OF JINKE PROPERTY

			Contribution
	Way of		amount
Company name	acquisition	Acquisition time	(RMB’0,000)	Percentage (%)
Qingdao Yuhua Jinke Real	New establishment	9 March 2015	1,000.00	100.00
Estate Development Co., Ltd.
Chongqing Jinke Jiahan Real	New establishment	19 November 2015	3,000.00	100.00
Estate Development Co., Ltd.
Suining Jinke Dongjun Real	New establishment	30 January 2015	5,000.00	100.00
Estate Development Co., Ltd.
Hunan Jinke Yida Industrial	New establishment	5 January 2015	5,000.00	50.00
Development Co., Ltd.
Changsha Jingke Real Estate	New establishment	29 January 2015	1,000.00	100.00
Co., Ltd.
Jinan Xingsheng Business	New establishment	27 May 2015	100.00	100.00
Management Co., Ltd.
Chengdu Lexiang Century	New establishment	17 November 2015	100.00	100.00
Hotel Management Co., Ltd.
Lexiang Century Commercial	New establishment	19 October 2015	5,000.00	100.00
Management Co., Ltd.

1. Decrease of the consolidation scope

Net profit from the beginning of Net assets on the the period to the Company name Way of disposal Disposal time date of disposal date of disposal Tianjin Bozhi Real Estate Co., Cancellation 17 December 2015 — — Ltd.

— 281 —

FINANCIAL INFORMATION OF JINKE PROPERTY

APPENDIX II

VII. Interests in other entities

• (I) Interests in significant subsidiaries

1. Significant subsidiaries

				Shareholding	Shareholding
	Principal	Place of	Business	percentage (%)		Way of
Subsidiary name	operating base	registration	nature	Direct	Indirect	acquisition
Chongqing Jiangjin Jinke	Jiangjin District,	No. 9, Block B2,	Real estate	70.00	30.00	Establishment
Guojun Real Estate Co.,	Chongqing	Zone B, Times
Ltd. (hereinafter referred to		Shopping Plaza,
as Guojun Real Estate)		Jijiang, Jiangjin
		District,
		Chongqing
Chongqing Bishan Jinke	Bishan County,	2/F, No. 129	Real estate	100.00		Merger of
Zhongxi Real Estate Co.,	Chongqing	Jinjian Road,				enterprises under
Ltd. (hereinafter referred to		Bicheng Street,				the same control
as Zhongxi Real Estate)		Bishan County,
		Chongqing
Chongqing Jinke Junyao Real	Kai County,	Binhu Road,	Real estate	55.00	45.00	Merger of
Estate Development Co.,	Chongqing	Yunfeng, Kai				enterprises under
Ltd. (hereinafter referred to		County,				the same control
as Junyao Real Estate)		Chongqing (Jinke
		Kaizhou City)
Chongqing Jinke Real Estate	Yubei District,	No. 161-197-2,	Real estate	100.00		Merger of
Development Co., Ltd.	Chongqing	Shuangning Road,				enterprises under
(hereinafter referred to as		Renhe Town,				the same control
Chongqing Jinke)		Yubei District,
		Chongqing
Chongqing Jinke Industrial	Jiangbei District,	No. 9,	Real estate	100.00		Merger of
Group Hongjing Real Estate	Chongqing	Commercial				enterprises under
Development Co., Ltd.		Building, No. 1,				the same control
(hereinafter referred to as		Wuhong Road,
Hongjing Real Estate)		Jiangbei District,
		Chongqing
Chongqing Jinke Shangzun	Yongchuan	Building 5, No.	Real estate		100.00	Merger of
Real Estate Co., Ltd.	District,	177 Honghe				enterprises under
(hereinafter referred to as	Chongqing	Middle Road,				the same control
Shangzun Real Estate)		Yongchuan
		District

— 282 —

APPENDIX II

FINANCIAL INFORMATION OF JINKE PROPERTY

				Shareholding	Shareholding
	Principal	Place of	Business	percentage (%)		Way of
Subsidiary name	operating base	registration	nature	Direct	Indirect	acquisition
Wuxi Jinke Kerun Real Estate	Wuxi New	Xinfang Road,	Real estate	51.00	49.00	Merger of
Development Co., Ltd.	District	Fangqian, Jiangxi				enterprises under
(hereinafter referred to as		Street, Wuxi New				the same control
Wuxi Kerun)		District
Wuxi Jinke Jiarun Real Estate	Wuxi	No. 501, Nanhu	Real estate		100.00	Merger of
Development Co., Ltd.		Avenue, Wuxi				enterprises under
(hereinafter referred to as						the same control
Wuxi Jiarun)
Jiangyin Jinke Real Estate	Jiangyin	Yushanwan Club,	Real estate	98.00	2.00	Merger of
Development Co., Ltd.		Yunting Street,				enterprises under
(hereinafter referred to as		Jiangyin				the same control
Jiangyin Real Estate)
Chongqing Jinke Industrial	Fuling District,	No. 9 Zhongshan	Real estate	100.00		Merger of
Group Kerun Real Estate	Chongqing	Road, Fuling				enterprises under
Development Co., Ltd.		District,				the same control
(hereinafter referred to as		Chongqing
Chongqing Kerun)
Hunan Jinke Real Estate	Yuelu District,	No. 299, Leifeng	Real estate	100.00		Merger of
Development Co., Ltd.	Changsha	Avenue, Qingshan				enterprises under
(hereinafter referred to as		Village, Yuelu				the same control
Hunan Jinke)		District,
		Changsha
Chongqing Qingke Trading	Fuling District,	No. 88, Xingyi	Commerce	88.00	12.00	Merger of
Co., Ltd. (hereinafter	Chongqing	South Road, Yihe				enterprises under
referred to as Qingke		Town, Fuling				the same control
Trading)		District,
		Chongqing
Jinke Property Services Group	Chongqing	“Jinke Garden”,	Property	100.00		Establishment
Limited (hereinafter referred		beside Wuhuang	management
to as Jinke Property)		Road, Wulidian,
		Jiangbei District,
		Chongqing

— 283 —

FINANCIAL INFORMATION OF JINKE PROPERTY

APPENDIX II

2. Significant non-wholly owned subsidiaries

			Dividend
		Gains/losses	announced to
		attributable to	be distributed	Balance of
	Shareholding	minority	to minority	minority
	percentage of	shareholders in	shareholders in	interests at the
	minority	the current	the current	end of the
Subsidiary name	shareholders	period	period	period
Chongqing Hechuan Jinke
Hejun Real Estate Co.,
Ltd. (hereinafter referred
to as Hejun Real Estate)	49.00%	42,226,354.39	37,240,000.00	61,396,043.17
Chongqing Jinke Zhongjun
Real Estate Development
Co., Ltd. (hereinafter
referred to as Zhongjun
Real Estate)	49.00%	9,511,793.32	—	281,731,690.22
Jinan Jinke Xicheng Real
Estate Development Co.,
Ltd. (hereinafter referred
to as Jinan Jinke)	49.00%	-16,055,506.53	—	440,654,588.34
Chongqing Jinke Hexu Real
Estate Development Co.,
Ltd. (hereinafter referred
to as Hexu Real Estate)	49.00%	-8,289,386.33	—	278,344,256.75
Xinjiang Huaran Oriental
New Energy Co., Ltd.
(hereinafter referred to as
Huaran Oriental)	5.75%	0.00	—	22,026,167.76

— 284 —

FINANCIAL INFORMATION OF JINKE PROPERTY

APPENDIX II

1. Main financial information of significant non-wholly owned subsidiaries

2. (1) Assets and liabilities

In RMB’0,000

		**Amount at the end **	**Amount at the end **	of the period	of the period
	Current	Non-current		Current	Non-current	Total
Subsidiary name	assets	assets	Total assets	liabilities	liabilities	liabilities
Hejun Real Estate	125,605.06	6,513.26	132,118.32	119,290.83	297.69	119,588.52
Zhongjun Real Estate	282,723.70	4,768.05	287,491.75	180,995.48	—	180,995.48
Jinan Jinke	472,394.36	4,081.73	476,476.09	371,139.32	15,407.27	386,546.59
Hexu Real Estate	232,163.69	1,741.33	233,905.03	137,100.07	40,000.00	177,100.07
Huaran Oriental	32,424.01	134,057.68	166,481.69	128,175.32	—	128,175.32
		**Amount **	at the beginning of the period
	Current	Non-current		Current	Non-current	Total
Subsidiary name	assets	assets	Total assets	liabilities	liabilities	liabilities
Hejun Real Estate	158,756.19	3,864.50	162,620.69	150,925.35	183.15	151,108.50
Zhongjun Real Estate	398,029.78	3,450.56	401,480.34	201,925.26	95,000.00	296,925.26
Jinan Jinke	338,279.68	2,506.37	340,786.05	177,579.91	70,000.00	247,579.91
Hexu Real Estate	152,002.23	840.42	152,842.65	54,342.28	40,003.70	94,345.98
Huaran Oriental	17,940.30	94,727.82	112,668.12	101,041.80	—	101,041.80

• (2) Gains/losses and cash flows

In RMB’0,000

	**Amount in the **	**Amount in the **	current period	current period	**Amount in **	the same period of preceding year	the same period of preceding year	the same period of preceding year
				Cash flows				Cash flows
			Total	from			Total	from
	Operating	comprehensive		operating	Operating	comprehensive		operating
Subsidiary name	revenue	Net profit	income	activities	revenue	Net profit	income	activities
Hejun Real Estate	61,705.84	8,617.62	8,617.62	4,875.00	60,000.97	11,194.59	11,194.59	1,743.34
Zhongjun Real
Estate	24,925.31	1,941.18	1,941.18	78,178.21	23.09	-2,008.58	-2,008.58	-64,755.05
Jinan Jinke	8.43	-3,276.63	-3,276.63	-14,960.03	15.34	-3,817.76	-3,817.76	-55,459.68
Hexu Real Estate	31.41	-1,691.71	-1,691.71	-43,664.59	7.37	-1,319.83	-1,319.83	-23,826.45
Huaran Oriental	12,196.84	280.06	280.06	11,115.13	6,481.43	1,894.70	1,894.70	28,241.12

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FINANCIAL INFORMATION OF JINKE PROPERTY

APPENDIX II

• (II) Control over subsidiaries’ transactions despite change in owners’ equity in subsidiaries

• Descriptions of change in owners’ equity in subsidiaries

Shareholding Shareholding percentage percentage Subsidiary name Change time before change after change Chongqing Jinke Junwei Real Estate Development Co., Ltd. (hereinafter referred to as Jinke Junwei) October 2015 60.00% 80.00% Chongqing Jinke Hongrui Real Estate Development Co., Ltd. (hereinafter referred to as Jinke Hongrui) October 2015 60.00% 80.00% Chongqing Jinke Huiyi Real Estate Development Co., Ltd. (hereinafter referred to as Jinke Huiyi) October 2015 51.00% 80.00% Xinjiang Huaran Oriental New Energy Co., Ltd. December (hereinafter referred to as Xinjiang Huaran) 2015 100.00% 94.25%

Subsidiary name

1. Impact of transactions on minority interests and equity attributable to owners of the parent company

				Xinjiang
Item	Jinke Junwei	Jinke Hongrui	Jinke Huiyi	Huaran
Acquisition cost/disposal consideration
Cash	177,611,600.00	88,805,800.00	95,680,000.00	50,000,000.00
Total acquisition cost/disposal
consideration	177,611,600.00	88,805,800.00	95,680,000.00	50,000,000.00
Less: Net assets of subsidiaries
calculated in proportion to the equity
acquired/disposed	152,064,877.33	79,889,057.67	76,139,627.02	22,026,167.76
Difference	-25,546,722.67	-8,916,742.33	-19,540,372.98	27,973,832.24
Including: Adjusted capital reserve	-25,546,722.67	-8,916,742.33	-19,540,372.98	27,973,832.24
Adjusted surplus reserve

— 286 —

FINANCIAL INFORMATION OF JINKE PROPERTY

APPENDIX II

• (III) Interests in joint ventures or associated enterprises

• Significant joint ventures or associated enterprises

						Accounting for
						investment in
				Shareholding		joint venture or
Name of joint venture or	Principal	Place of	Business	percentage (%)		associated
associated enterprise	operating base	registration	nature	Direct	Indirect	enterprise
Chongqing Yinhai Finance	Chongqing	Beibu New	Similar	5.51		Equity method
Leasing Co., Ltd.		District,	financial			[note 1]
(hereinafter referred to as		Chongqing	industry
Yinhai Leasing)
Wujiang Jinke Yangzi Real	Wujiang	Wujiang District,	Real estate		50.00	Equity method
Estate Development Co.,		Suzhou
Ltd. (hereinafter referred to
as Wujiang Yangzi)
Xinjiang Jinke New Energy	Xinjiang	Xinjiang	Equity		49.75	Equity method
Equity Investment Joint			investment			[note 2]
Venture (limited partnership)
(hereinafter referred to as
New Energy Investment)

• [Note 1] The Company has appointed representatives to the Board of Directors of Yinhai Leasing and therefore has the right to participate in deciding financial and operating policies of Yinhai Finance Leasing and has material impact on Yinhai Finance Leasing.

• [Note 2] Refer to Note [V] (I). 9 to the Financial Statements for details.

— 287 —

FINANCIAL INFORMATION OF JINKE PROPERTY

APPENDIX II

1. Main financial information of significant joint ventures

		In RMB’0,000
		Amount at the
	Amount at the	beginning of the
	end of the	period/amount in
	period/amount in	the same period of
	the current period	preceding year
	New Energy	New Energy
Item	Investment	Investment
Current assets	35,000.00	—
Non-current assets	—	—
Total assets	35,000.00	—
Current liabilities	—	—
Non-current liabilities	—	—
Total liabilities	—	—
Minority interests	—	—
Equity attributable to owners of the parent company	35,000.00	—
Proportionate share in net assets	20,000.00	—
Adjustments
Goodwill	—	—
Unrealized profit of internal transaction	—	—
Others	—	—
Book value of equity investments in joint ventures	20,000.00	—
Fair value of equity investments in joint ventures
with quoted price	—	—
Operating revenue	—	—
Net profit	—	—
Net profit from discontinued operation	—	—
Other comprehensive income	—	—
Total comprehensive income	—	—
Dividend received from joint ventures in the current
period	—	—

— 288 —

FINANCIAL INFORMATION OF JINKE PROPERTY

APPENDIX II

1. Main financial information of significant associated enterprises

In RMB’0,000

Amount at the end of the period/amount in the current period USUM Investment

Item	Group [note]	Yinhai Leasing
Current assets		140,164.96
Non-current assets		184,195.35
Total assets		324,360.31
Current liabilities		78,263.27
Non-current liabilities		104,838.79
Total liabilities		183,102.06
Minority interests		0
Equity attributable to owners of the parent company		141,258.25
Proportionate share in net assets		7,783.33
Adjustments		0
Goodwill		0
Unrealized profit of internal transaction		0
Others		0
Book value of equity investments in associated
enterprises		7,783.33
Fair value of equity investments in associated enterprises
with quoted price		0
Operating revenue		27,998.19
Net profit		9,833.35
Net profit from discontinued operation		0
Other comprehensive income		0
Total comprehensive income		9,833.35
Dividend received from associated enterprises in the
current period		716.92

— 289 —

APPENDIX II

FINANCIAL INFORMATION OF JINKE PROPERTY

	**Amount at the beginning **	**Amount at the beginning **	of the
	**period/amount in the **	**same **	period of
	**preceding **	year
	USUM Investment
Item	Group [note]	Yinhai Leasing
Current assets	343,170.37		207,993.04
Non-current assets	32,601.22		176,169.00
Total assets	375,771.59		384,162.04
Current liabilities	25,766.69		108,513.45
Non-current liabilities	207.74		131,212.52
Total liabilities	25,974.43		239,725.97
Minority interests
Equity attributable to owners of the parent company	349,797.16		144,436.07
Proportionate share in net assets	11,361.41		7,958.43
Adjustments
Goodwill	—		—
Unrealized profit of internal transaction	—		—
Others	—		—
Book value of equity investments in associated
enterprises	11,361.41		7,958.43
Fair value of equity investments in associated enterprises
with quoted price	—		—
Operating revenue	44,311.01		26,096.38
Net profit	33,133.07		17,058.27
Net profit from discontinued operation	—		—
Other comprehensive income	—		—
Total comprehensive income	33,133.07		17,058.27
Dividend received from associated enterprises in the
current period	—		446.11

[Note] Refer to Note [V] (I). 9 to the Financial Statements for details.

— 290 —

FINANCIAL INFORMATION OF JINKE PROPERTY

APPENDIX II

1. Summary financial information of insignificant joint ventures and associated enterprises

		Amount at the
	Amount at the	beginning of the
	end of the	period/amount in
	period/amount in	the same period of
Item	the current period	preceding year
Joint ventures
Total book value of investments	9,996,804.01	9,994,505.08
Total of the following items calculated as
per the shareholding percentage	2,298.93	-758,079.17
Net profit	2,298.93	-758,079.17
Other comprehensive income
Total comprehensive income	2,298.93	-758,079.17
Associated enterprises
Total book value of investments	96,163,778.05	133,581,850.12
Total of the following items calculated as
per the shareholding percentage	-21,506,811.67	-9,237,903.16
Net profit	-21,506,811.67	-9,237,903.16
Other comprehensive income
Total comprehensive income	-21,506,811.67	-9,237,903.16

VIII Risks related to financial instruments

The Company carries out risk management for the purpose of seeking an appropriate balance between the risks and revenues, minimizing the negative impact from risks on the Company’s operating results and maximizing the interests of shareholders and other equity investors. Based on such objectives, the Company’s risk management policies are established to identify and analyze the risks faced by the Company, to set appropriate risk bottom line and controls, and to supervise various risks in prompt and reliable manner so as to control the risks within a limited range.

The Company is exposed to the following risks from its use of financial instruments in the daily operation, which mainly include credit risk, liquidity risk and market risk. The management has deliberated and approved policies concerning management of such risks, as summarized below.

(I) Credit risk

Credit risk is the risk that one party to a financial instrument fails to fulfil the obligations, thereby causing financial loss to the other party.

The Company’s credit risk is primarily attributable to bank balances and receivables. To control the aforesaid related risks, the Company takes the following measures respectively.

— 291 —

FINANCIAL INFORMATION OF JINKE PROPERTY

APPENDIX II

1. Bank balances

The Company deposits its bank balances in financial institutions with good credit rating, so its credit risk is low.

2. Receivables

The Company has established a sound receivables risk management and internal control system to regularly assess customers’ credit and monitor balance of receivables therefrom, and strictly implements the receivables collection procedure, to avoid significant risks in bad debts.

The Company’s accounts receivable risks are distributed in multiple partners and customers. As at 31 December 2015, 25.95% of the Company’s accounts receivable (31 December 2014: 18.95%) was due from the five top customers in balance, and the Company did not have major credit concentration risk.

• (1) Amount of the Company’s receivables which have neither been overdue nor impaired and those which have been overdue but unimpaired and relevant aging analysis are as follows:

Item Amount at the end of the period Receivables neither overdue nor impaired Receivables overdue but unimpaired Within 1 year 1-2 years Above 2 years Other receivables 498,663,626.13 Subtotal 498,663,626.13 Item Amount at the beginning of the period Receivables neither overdue nor impaired Receivables overdue but unimpaired Within 1 year 1-2 years Above 2 years Other receivables 525,174,875.62 Subtotal 525,174,875.62	Total 498,663,626.13
	498,663,626.13
	Total 525,174,875.62
	525,174,875.62

• (2) For receivables with provision for impairment withdrawn on an individual basis, please refer to receivables in the notes to the consolidated financial statements in the Notes to the Financial Statements.

(II) Liquidity risk

Liquidity risk is the risk of capital shortage incurred when the Company performs the obligation of cash or other financial assets settlement and is possibly attributable to failure in selling financial assets at fair value on a timely basis, or failure in collecting liabilities from counterparts to contracts, or early redemption of debts, or failure in generating estimated cash flows.

— 292 —

APPENDIX II

FINANCIAL INFORMATION OF JINKE PROPERTY

To control such risk, the Company leveraged financing tools such as note settlement, bank borrowings, trust borrowing, etc., and appropriately adopted long and short financing methods to improve the financing structure, and maintained a balance between financing sustainability and flexibility. The Company has obtained bank credit limits from several commercial banks and trust institutions to satisfy working capital requirements and expenditures.

Financial liabilities classified based on remaining time period till maturity

In RMB’0,000

		**Amount at **	**Amount at **	the end of the period	the end of the period
		Undiscounted
		contract
Item	Book value	amount	Within 1 year		**1-3 **	years	Above 3 years
Borrowings	3,312,021.96	3,636,195.54		2,068,464.67	1,210,622.98		357,107.89
Notes payable	131,721.40	131,721.40		131,721.40		—	—
Accounts payable	811,978.91	811,978.91		811,978.91		—	—
Other payables	290,261.87	290,261.87		290,261.87		—	—
Bonds payable	531,325.73	655,741.81		—	395,226.25		260,515.56
Subtotal	5,077,309.87	5,525,899.53		3,302,426.85	1,605,849.23		617,623.45
		Amount at the beginning of the period
		Undiscounted
		contract
Item	Book value	amount	Within 1 year		**1-3 **	years	Above 3 years
Borrowings	3,363,919.96	3,742,996.76		2,459,179.29	1,136,938.09		146,879.38
Notes payable	136,165.13	136,165.13		136,165.13		—	—
Accounts payable	717,454.86	717,454.86		717,454.86		—	—
Other payables	259,564.91	259,564.91		255,564.91	4,000.00		—
Subtotal	4,477,104.86	4,856,181.66		3,568,364.19	1,140,938.09		146,879.38

(III) Market risk

Market risk refers to the risk that the fair value or future cash flow of a financial instrument fluctuates because of change in market price. Market risks mainly include interest rate risk and foreign exchange risk.

1. Interest rate risk

Interest rate risk is the risk that the fair value or future cash flow of a financial instrument fluctuates because of change in market interest rate. The Company’s market interest risk mainly relates to the Company’s borrowings with interest calculated at floating interest rate.

— 293 —

FINANCIAL INFORMATION OF JINKE PROPERTY

APPENDIX II

As at 31 December 2015, the Company’s borrowings with interest calculated at floating interest rate amounted to RMB13,175,970,000 (31 December 2014: RMB11,218,600,000), supposed that other variations remain unchanged and interest rate increases/decreases 50 bps, the Company’s total profit and shareholders’ interests will not be significantly affected.

1. Foreign currency risk

Foreign currency risk is the risk that the fair value or future cash flow of a financial instrument fluctuates because of change in exchange rate.

The Company’s exchange rate risk mainly relates to the Company’s foreign currency monetary assets and liabilities. As the Company operates its business in mainland China, its main business activities are denominated in RMB. Therefore, the exchange rate risk undertaken by the Company is insignificant.

For the Company’s foreign currency monetary assets and liabilities at the end of the period, please refer to foreign currency monetary items in others in the notes to the consolidated financial statements in the Notes to the Financial Statements.

IX. Disclosure of fair value

• (I) Details of the fair value of assets and liabilities measured at fair value at the end of the period

		**Fair value at the **	end of the period
	Level 1 fair value	Level 2 fair value	Level 3 fair value
Item	measurement	measurement	measurement	Total
Recurring fair value
measurement
Investment property		2,888,950,566.79		2,888,950,566.79
Buildings rented		2,888,950,566.79		2,888,950,566.79

• (II) Qualitative and quantitative information of evaluation techniques and important parameters for recurring and non-recurring level 2 fair value measurements

The buildings rented out by the Company are all commercial properties and supporting garages thereof, and their costs are insufficient to reflect the fair value thereof, so evaluation is not carried out by cost method; according to the actual condition of the buildings rented, for small commercial properties, as the transaction markets around them are active and it is easy to find transaction cases of similar properties, evaluation is carried out by market method; for large commercial properties for which it is difficult to find relevant transaction cases, as the lease markets of similar properties around them are active and some buildings rented are restricted by long-term lease contracts, evaluation is carried out by income method.

— 294 —

FINANCIAL INFORMATION OF JINKE PROPERTY

APPENDIX II

• X. Connected parties and connected transactions

• (I) Connected parties

• The Company’s parent company

• (1) The Company’s parent company

					Voting
				Shareholding	right
				percentage	percentage
			Registered	over the	over the
		Business	capital	Company	Company
Name of parent company	Place of registration	nature	(RMB’0000)	(%)	(%)
Chongqing Jinke Investment	No. 88 Xingyi South	Investment	5,000	17.53	17.53
Holdings (Group) Co., Ltd.	Road, Yihe Town,	consulting
	Fuling District,
	Chongqing

• [Note] As at 31 December 2015, Chongqing Jinke Investment Holdings (Group) Co., Ltd. (hereinafter referred to as Jinke Investment), Huang Hongyun and Tao Hongxia severally held 17.53%, 11.01% and 2.10% shares of the Company and were the top three shareholders of the Company; Huang Hongyun and his wife Tao Hongxia jointly held 100% shares of Jinke Investment, which was the controlling shareholder of the Company, and were the effective controllers of the Company.

• (2) The ultimate controllers of the Company are Huang Hongyun and his wife Tao Hongxia.

• For details about the Company’s subsidiaries, please refer to interests in other entities in the Notes to the Financial Statements

— 295 —

FINANCIAL INFORMATION OF JINKE PROPERTY

APPENDIX II

3. Joint ventures and associated enterprises of the Company

For details about the Company’s significant associated enterprises, please refer to interests in other entities in the Notes to the Financial Statements. Information on other joint ventures or associated enterprises with balance formed through its connected transactions with the Company in the current and prior periods is as follows:

Name of joint venture or associated enterprise

Relation with the Company

• Xinjiang Jinke New Energy Equity Investment Joint Venture (limited partnership) (hereinafter referred to as New Energy Investment)

• Joint venture

• Yunnan Jinwanzhong Real Estate Development Co., Ltd. (hereinafter referred to as Jinwanzhong Real Estate)

Joint venture

Wujiang Jinke Yangzi Real Estate Development Co., Ltd. Associated enterprise (hereinafter referred to as Wujiang Jinke Yangzi)

• Chongqing Yinhai Finance Leasing Co., Ltd. (hereinafter referred to as Yinhai Leasing)

• Associated enterprise

• USUM Investment Group Co., Ltd. (hereinafter referred to as USUM Investment)

[Note]

[Note] Refer to Note [V] (I). 9 to the Financial Statements for details.

1. Other connected parties of the Company

Name of other connected party

• Chongqing Zhongke Holding Co., Ltd. (hereinafter referred to as Zhongke Holding)

Chongqing Zhongke Construction (Group) Co., Ltd. (hereinafter referred to as Zhongke Group)

• Chongqing Jianglong Construction Engineering Co., Ltd. (hereinafter referred to as Jianglong Construction)

• Chongqing Shenlong Construction Engineering Co., Ltd. (hereinafter referred to as Shenlong Construction)

• Chongqing Zhanhe Agriculture Development Co., Ltd. (hereinafter referred to as Zhanhe Agriculture)

Relation between other connected party and the Company

Others [note 1]

• Others [note 1]

Others [note 1]

Others [note 1]

Others [note 2]

— 296 —

FINANCIAL INFORMATION OF JINKE PROPERTY

APPENDIX II

Name of other connected party

• Chongqing Red Star Macalline Shibo Furniture Hall Co., Ltd. (hereinafter referred to as Red Star Macalline)

• Chongqing Liangjiang New District Ke Yi Micro-Credit Co., Ltd. (hereinafter referred to as Ke Yi Micro-Credit)

• Chongqing Jinke Financial Factoring Co., Ltd. (hereinafter referred to as Jinke Financial Factoring)

• Chongqing Jinke Commercial Factoring Co., Ltd. (hereinafter referred to as Jinke Commercial Factoring)

Relation between other connected party and the Company

• Company controlled by the effective controller of the shareholder

• Company controlled by the controlling shareholder of the Company

• Company controlled by the controlling shareholder of the Company

• Company controlled by the controlling shareholder of the Company

• [Note 1] It is a company controlled by Huang Yifeng, who is the younger brother of Huang Hongyun, the effective controller of the Company.

• [Note 2] Refer to Note [X] (II). 5 to the Financial Statements for details.

(II) Connected transactions

1. Purchase and sale of commodities, and provision and acceptance of labor service

Sale of commodities and provision of labor service:

			Amount in the
	Content of connected	Amount in the	same period of
Connected party	transaction	current period	preceding year
China Sciences Group	Provision of labor service	535,042.70	425,629.70
USUM Investment Group	Provision of labor service	37,491.00	197,991.38
[note]
Wujiang Jinke Yangzi	Sale of commodities and	2,540,079.98	3,641,406.43
	provision of labor service
Jinke Investment	Sale of commodities and	151,724.00	33,537,999.00
	provision of labor service
Ke Yi Micro-Credit	Provision of labor service	92,400.00	—
Jinke Financial Factoring	Provision of labor service	46,200.00	—
Jinke Commercial	Provision of labor service	46,200.00	—
Factoring

[Note] Refer to Note [V] (I). 9 to the Financial Statements for details.

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APPENDIX II

2. Rental with connected parties

Red Star Macalline rented in from the Company the Red Star Macalline Furniture Plaza with a floor area of 106,927.62 m[2] at No. 888 Xinnan Road, Tiangongdian Street, Yubei District, Chongqing, with a rental term from 1 July 2006 to 31 December 2026, and the rental revenue generated by the Company in the current period was RMB39,950,459.09.

3. Guarantee with connected parties

(1) The Company and subsidiaries as the guaranteed parties

		Guarantee	Guarantee	Whether the
	Guaranteed	Commencement		guarantee has
Guarantor	amount	date	Maturity date	been fulfilled
Huang Hongyun, Tao Hongxia	300,000,000.00	2015/2/2	2016/9/29	No
Huang Hongyun, Tao Hongxia	1,000,000,000.00	2014/8/29	2016/8/29	No
Jinke Investment, Huang Hongyun,	5,000,000.00	2013/10/14	2016/9/29	No
Tao Hongxia [note]
Jinke Investment, Huang Hongyun,	50,000,000.00	2014/4/30	2016/9/29	No
Tao Hongxia [note]
Jinke Investment, Huang Hongyun,	255,000,000.00	2014/7/1	2016/9/29	No
Tao Hongxia [note]
Jinke Investment, Huang Hongyun,	80,000,000.00	2014/7/2	2016/9/29	No
Tao Hongxia [note]
Jinke Investment, Huang Hongyun,	10,000,000.00	2014/1/16	2016/9/29	No
Tao Hongxia [note]
Jinke Investment, Huang Hongyun,	800,000,000.00	2014/3/20	2016/3/20	No
Tao Hongxia
Huang Hongyun, Tao Hongxia	300,000,000.00	2014/6/26	2016/6/25	No
Jinke Investment, Huang Hongyun,	97,916,666.67	2014/3/12	2017/3/12	No
Tao Hongxia
Jinke Investment, Huang Hongyun,	145,833,333.34	2014/3/24	2017/3/12	No
Tao Hongxia
Jinke Investment, Huang Hongyun,	19,583,333.32	2014/4/30	2017/3/12	No
Tao Hongxia
Jinke Investment, Huang Hongyun,	39,166,666.67	2014/4/30	2017/3/12	No
Tao Hongxia
Jinke Investment, Huang Hongyun,	58,750,000.00	2014/5/30	2017/3/12	No
Tao Hongxia
Jinke Investment, Huang Hongyun,	19,583,333.32	2014/6/24	2017/3/12	No
Tao Hongxia
Jinke Investment, Huang Hongyun,	39,166,666.67	2014/7/25	2017/3/12	No
Tao Hongxia

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FINANCIAL INFORMATION OF JINKE PROPERTY

		Guarantee	Guarantee	Whether the
	Guaranteed	Commencement		guarantee has
Guarantor	amount	date	Maturity date	been fulfilled
Jinke Investment	30,000,000.00	2014/11/25	2016/9/22	No
Jinke Investment	33,000,000.00	2015/2/5	2016/10/12	No
Jinke Investment, Huang Hongyun,	470,000,000.00	2014/3/28	2016/3/27	No
Tao Hongxia
Jinke Investment, Huang Hongyun,	1,400,000,000.00	2015/2/13	2034/12/25	No
Tao Hongxia
Jinke Investment, Huang Hongyun	100,000,000.00	2014/5/20	2016/5/20	No
Jinke Investment, Huang Hongyun	110,000,000.00	2014/5/20	2016/11/20	No
Jinke Investment, Huang Hongyun	140,000,000.00	2014/6/18	2017/5/18	No
Huang Hongyun	3,000,000.00	2015/6/26	2016/6/25	No
Huang Hongyun	295,000,000.00	2015/6/26	2016/12/25	No
Huang Hongyun	250,000,000.00	2015/6/26	2017/6/25	No
Jinke Investment, Huang Hongyun	490,000,000.00	2014/4/30	2016/4/28	No
Jinke Investment, Huang Hongyun,	399,770,000.00	2014/1/8	2016/1/8	No
Tao Hongxia
Jinke Investment, Huang Hongyun,	299,720,000.00	2014/1/17	2016/1/17	No
Tao Hongxia
Jinke Investment, Huang Hongyun,	299,770,000.00	2014/1/13	2016/1/13	No
Tao Hongxia
Jinke Investment, Huang Hongyun,	500,000,000.00	2014/5/15	2016/5/15	No
Tao Hongxia
Jinke Investment, Huang Hongyun,	450,000,000.00	2014/4/29	2016/4/29	No
Tao Hongxia
Jinke Investment, Huang Hongyun,	167,880,000.00	2014/4/22	2016/4/22	No
Tao Hongxia
Jinke Investment, Huang Hongyun,	82,120,000.00	2014/4/3	2016/4/3	No
Tao Hongxia
Jinke Investment	400,000,000.00	2014/4/21	2016/4/20	No
Jinke Investment, Huang Hongyun,	252,800,000.00	2014/8/8	2016/8/7	No
Tao Hongxia
Jinke Investment, Huang Hongyun,	147,600,000.00	2014/8/22	2016/8/21	No
Tao Hongxia
Jinke Investment, Huang Hongyun,	300,000,000.00	2014/7/28	2016/7/27	No
Tao Hongxia
Jinke Investment, Huang Hongyun,	70,700,000.00	2014/9/5	2016/6/4	No
Tao Hongxia
Jinke Investment, Huang Hongyun,	31,700,000.00	2014/8/28	2016/5/27	No
Tao Hongxia
Jinke Investment, Huang Hongyun,	105,000,000.00	2014/8/29	2016/2/28	No
Tao Hongxia

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FINANCIAL INFORMATION OF JINKE PROPERTY

		Guarantee	Guarantee	Whether the
	Guaranteed	Commencement		guarantee has
Guarantor	amount	date	Maturity date	been fulfilled
Jinke Investment, Huang Hongyun,	111,300,000.00	2014/8/29	2016/2/28	No
Tao Hongxia
Jinke Investment, Huang Hongyun,	200,000,000.00	2014/7/28	2016/7/27	No
Tao Hongxia
Jinke Investment, Huang Hongyun,	114,000,000.00	2014/9/19	2016/9/18	No
Tao Hongxia
Jinke Investment, Huang Hongyun,	197,600,000.00	2014/10/17	2016/7/16	No
Tao Hongxia
Jinke Investment, Huang Hongyun,	176,800,000.00	2014/9/26	2016/3/25	No
Tao Hongxia
Jinke Investment, Huang Hongyun,	200,000,000.00	2014/10/13	2016/7/12	No
Tao Hongxia
Jinke Investment, Huang Hongyun,	80,000,000.00	2014/10/13	2016/10/12	No
Tao Hongxia
Jinke Investment, Huang Hongyun,	228,200,000.00	2014/5/29	2016/2/29	No
Tao Hongxia
Jinke Investment, Huang Hongyun,	277,500,000.00	2014/6/20	2016/2/29	No
Tao Hongxia
Jinke Investment, Huang Hongyun,	100,000,000.00	2014/7/10	2016/2/29	No
Tao Hongxia
Jinke Investment, Huang Hongyun,	400,000,000.00	2014/7/18	2016/7/17	No
Tao Hongxia
Jinke Investment, Huang Hongyun,	319,200,000.00	2014/7/17	2016/2/29	No
Tao Hongxia
Jinke Investment, Huang Hongyun,	283,700,000.00	2014/7/24	2016/2/29	No
Tao Hongxia
Jinke Investment, Huang Hongyun,	135,600,000.00	2014/8/25	2016/7/17	No
Tao Hongxia
Jinke Investment, Huang Hongyun,	126,500,000.00	2014/8/28	2016/7/17	No
Tao Hongxia
Jinke Investment, Huang Hongyun,	159,400,000.00	2014/9/17	2016/7/17	No
Tao Hongxia
Jinke Investment, Huang Hongyun,	100,000,000.00	2014/5/27	2016/5/27	No
Tao Hongxia
Jinke Investment, Huang Hongyun,	8,000,000.00	2014/7/21	2016/5/27	No
Tao Hongxia
Jinke Investment, Huang Hongyun,	300,000,000.00	2015/3/25	2017/3/25	No
Tao Hongxia
Jinke Investment, Huang Hongyun,	92,000,000.00	2015/5/7	2017/5/7	No
Tao Hongxia

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FINANCIAL INFORMATION OF JINKE PROPERTY

		Guarantee	Guarantee	Whether the
	Guaranteed	Commencement		guarantee has
Guarantor	amount	date	Maturity date	been fulfilled
Jinke Investment, Huang Hongyun,	100,000,000.00	2015/4/30	2017/4/30	No
Tao Hongxia
Jinke Investment, Huang Hongyun,	250,000,000.00	2015/3/13	2017/3/13	No
Tao Hongxia
Jinke Investment, Huang Hongyun,	300,000,000.00	2015/3/18	2017/3/18	No
Tao Hongxia
Jinke Investment	54,000,000.00	2015/6/12	2016/10/20	No
Jinke Investment, Huang Hongyun,	197,000,000.00	2014/7/16	2016/7/15	No
Tao Hongxia
Jinke Investment, Huang Hongyun,	163,300,000.00	2014/7/25	2016/7/24	No
Tao Hongxia
Jinke Investment, Huang Hongyun,	199,500,000.00	2014/8/6	2016/8/5	No
Tao Hongxia
Jinke Investment, Huang Hongyun,	171,500,000.00	2014/8/13	2016/8/12	No
Tao Hongxia
Jinke Investment, Huang Hongyun,	400,000,000.00	2014/8/14	2016/8/13	No
Tao Hongxia
Jinke Investment, Huang Hongyun,	400,000,000.00	2015/2/13	2017/2/12	No
Tao Hongxia
Huang Hongyun	400,000,000.00	2014/7/18	2016/7/18	No
Jinke Investment, Huang Hongyun,	150,000,000.00	2015/5/29	2016/5/28	No
Tao Hongxia
Jinke Investment	70,000,000.00	2015/2/10	2016/2/9	No
Huang Hongyun	10,000,000.00	2015/4/17	2016/4/16	No
Jinke Investment, Huang Hongyun,	50,000,000.00	2015/5/29	2016/5/28	No
Tao Hongxia
Huang Hongyun	90,000,000.00	2015/4/17	2017/4/16	No
Jinke Investment	130,000,000.00	2015/2/10	2016/2/9	No
Huang Hongyun	20,000,000.00	2015/4/17	2016/4/16	No
Jinke Investment, Huang Hongyun,	100,000,000.00	2015/5/29	2016/5/28	No
Tao Hongxia
Huang Hongyun	180,000,000.00	2015/4/17	2017/4/16	No

[Note] In the meantime, the Company’s controlling shareholder Jinke Investment pledged its 50 million tradable shares of the Company with sale limitations.

• (2) In the current period, the Company’s controlling shareholder Jinke Investment and effective controllers Huang Hongyun and Tao Hongxia provided guarantee for the Company’s financing. The two companies, according to market practice and the extent of risk of several or joint provision of guarantee, negotiated that the guarantee fee should be paid at a guarantee fee rate

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FINANCIAL INFORMATION OF JINKE PROPERTY

not more than 1%. In the current period, the Company settled and paid a financing guarantee fee of RMB25 million to Jinke Investment and Huang Hongyun and his wife Tao Hongxia on a cumulative basis.

4. Call loans with connected parties

• (1) According to the Financing Leasing Contract signed between the subsidiary Qingke Trading and Chongqing Yinhai Finance Leasing Co., Ltd. (hereinafter referred to as Yinhai Leasing) on 3 April 2013, Qingke Trading borrowed RMB200 million from Yinhai Finance Leasing through financing, with a contract period of two years and the annual comprehensive capital cost of 9.90%. The capital occupation fee of RMB3,561,300 payable to Yinhai Leasing as settled in the current period has been paid actually. As at 31 December 2015, Qingke Trading had cumulatively repaid the call loan principal of RMB200 million, which, together with the capital occupation fee, had been settled.

According to the Entrusted Loan Contract of Bank of Chongqing signed by the Company, Yinhai Leasing and the Business Department of Bank of Chongqing Co., Ltd. (hereinafter referred to as Business Department of Bank of Chongqing), Yinhai Finance Leasing provided the Company with an entrusted loan of RMB150 million through the Business Department of Bank of Chongqing, with a contract period of 18 months and the annual comprehensive capital cost of 9.95%. The interest of RMB6,089,500 for the entrusted loan payable to Yinhai Leasing as settled in the current period has been paid actually. As at 31 December 2015, the Company had repaid the entrusted loan principal of RMB150 million, which, together with the interest, had been settled.

• (2) According to the Cooperative Development Agreement signed between the subsidiary Chengdu Jinke Real Estate Development Co., Ltd. and USUM Investment Group, USUM Investment Group provided, as per the shareholding percentage, RMB105 million shareholders’ loan to Neijiang Jinke Hongjun Real Estate Development Co., Ltd. (hereinafter referred to as Neijiang Hongjun), by charging capital occupation fee at an annual interest rate of 12%. As at 31 December 2015, Neijiang Hongjun should pay a total capital occupation fee of RMB25,708,000 to USUM Investment Group.

5. Asset transfer with connected parties

Upon deliberation and approval by the 10th meeting of the 9th Board of Directors held on 14 November 2014, Wuxi Jinke Jiarun Real Estate Development Co., Ltd. (hereinafter referred to as Wuxi Jiarun), the wholly-owned subsidiary of the Company, was approved to transfer its 47.62% equity in Chongqing Zhanhe Agriculture Development Co., Ltd. (hereinafter referred to as Zhanhe Agriculture) to Chongqing Zhongke Holding Co., Ltd. (hereinafter referred to as Zhongke Holding), a connected party of the Company. After completion of the equity transfer, Wuxi Jiarun would no longer hold any equity in Zhanhe Agriculture. Wuxi Jiarun received all the payment for the equity transfer made by the transferee Zhongke Holding in January 2015, and Zhanhe Agriculture completed relevant equity transfer formalities with the industrial and commercial administration on 5 February 2015.

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APPENDIX II

• (III) Receivables from and payables to the connected parties

1. Receivables from the connected parties

Item name Connected party Accounts receivable Jinke Investment China Sciences Group USUM Investment Group [note 1] Wujiang Jinke Yangzi Ke Yi Micro-Credit Jinke Financial Factoring Jinke Commercial Factoring Subtotal Other receivables Jinke Investment [note 2] Wujiang Jinke Yangzi Subtotal	Amount at the end of the period Book balance Provision for bad debts 8,710.00 87.10 189,339.20 1,893.39 94,662.38 4,733.12 5,996,813.35 1,297,015.55 2,772.00 27.72 1,386.00 13.86 1,386.00 13.86 6,295,068.93 1,303,784.60 30,502.90 305.03 64,777,804.88 18,041,948.29 64,808,307.78 18,042,253.32	Amount at the beginning of the period Book balance Provision for bad debts 3,249.00 32.49 158,927.90 1,589.28 94,662.38 946.62 5,542,025.35 147,297.93 — — — — — — 5,798,864.63 149,866.32 — — 64,782,542.26 3,233,742.54 64,782,542.26 3,233,742.54	Amount at the beginning of the period Book balance Provision for bad debts 3,249.00 32.49 158,927.90 1,589.28 94,662.38 946.62 5,542,025.35 147,297.93 — — — — — — 5,798,864.63 149,866.32 — — 64,782,542.26 3,233,742.54 64,782,542.26 3,233,742.54
			3,233,742.54

[Note 1] Refer to Note [V] (I). 9 to the Financial Statements for details.

[Note 2] It is the air ticket agent service carried out by Chongqing Kangcheng Air Ticket Agent Co., Ltd., the Company’s subsidiary; according to the ticket agent industry practice, the agent’s advances for air tickets unsettled with Chongqing Jinke Investment Holding (Group) Co., Ltd. in the reporting period had been fully taken back as at the date of this report.

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FINANCIAL INFORMATION OF JINKE PROPERTY

APPENDIX II

1. Payables to the connected parties

			Amount at the
		Amount at the end	beginning of the
Item name	Connected party	of the period	period
Accounts payable	Shenlong Construction	19,359.70	1,306.67
	China Sciences Group	29,342,725.31	36,145,907.62
	Jianglong Construction	17,960,629.58	18,642,496.87
	Zhanhe Agriculture	161,736.63	161,736.63
Subtotal		47,484,451.22	54,951,447.79
Advance receipts	China Sciences Group	1,335,455.00	1,335,455.00
Subtotal		1,335,455.00	1,335,455.00
Other payables	China Sciences Group	324,694.00	324,694.00
	USUM Investment Group
	[note]	130,498,000.00	117,898,000.00
Subtotal		130,822,694.00	118,222,694.00

[Note] Refer to Note [V] (I). 9 to the Financial Statements for details.

XI. Share payment

• (I) Overall information of share payment

• Details

• Total amount of the Company’s equity instruments granted in the current period

191,440,000.00

• Total amount of the Company’s equity instruments exercised in the current period

—

• Total amount of the Company’s equity instruments invalidated in the current period

—

• Scope of exercise price of the Company’s stock options outstanding at the end of the period and remaining contract period

—

• Scope of exercise price of the Company’s other equity instruments outstanding at the end of the period and remaining contract period

The price of restricted shares granted by the Company is RMB3.23 per share; After a year from the grant date, the interests and rights will be unlocked annually at the percentage of 25%: 25%: 25%: 25% respectively during the unlocking period.

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FINANCIAL INFORMATION OF JINKE PROPERTY

APPENDIX II

2 Other descriptions

According to the Restricted Share Incentive Plan (Draft) of Jinke Property Group Co., Ltd. deliberated and approved at the 24th meeting of the 9th Board of Directors of the Company and the 8th extraordinary general meeting 2015, the Company planned to issue to incentive targets the Company’s common shares (A share) issued toward particular investors. At the 26th meeting of the 9th Board of Directors held on 9 December 2015, the Company deliberated and approved the Proposal of Jinke Property Group Co., Ltd. Concerning Issue of Restricted Shares to Incentive Targets and decided to take 9 December 2015 as the grant date on which 196.44 million restricted shares would be issued to 157 incentive targets at a price of 3.23 per share, with 10.34 million shares reserved. As for personal reasons some equity incentive targets waived the right to participate in the equity incentive plan or the restricted shares to be issued were reduced, the total number of restricted shares subject to first grant in the Company’s equity incentive plan were 191.44 million, with each having a par value of RMB1 and issued at a price of RMB3.23, increasing the paid-up capital of RMB191,440,000.00 and forming capital reserve of RMB426,911,200.00. The share capital change has been verified by Pan-China Certified Public Accountants (special general partnership), which issued the Capital Verification Report (Tian Jian Yan [2015] No.8-125) on 17 December 2015. In the meanwhile, the Company carries out accounting for the equity incentive plan regarding the granted restricted shares according to relevant provisions of the Interpretation No.7 on the Accounting Standards for Business Enterprises .

• (1) Validity period and lock-up period and exercise arrangement or unlocking arrangement of the incentive plan are as follows:

• 1) Restricted shares will be locked up immediately after being granted. All restricted shares granted to the incentive targets are subject to different lock-up periods, which should be calculated as from the grant date. During the lock-up period, the restricted shares held by the incentive targets should not be transferred or used for debt repayment. The validity period of the plan should not exceed six years as calculated as from the grant date of the

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FINANCIAL INFORMATION OF JINKE PROPERTY

restricted shares subject to first grant. The unlocking arrangement for the restricted shares subject to first grant is given in the following table:

		Percentage of
		unlockable
		shares in the
		restricted
Arrangement	Unlocking time	shares
First unlocking	From the first transaction date after 12 months from the	25%
	first grant date to
	the last transaction date within 24 months from the first
	grant date
Second unlocking	From the first transaction date after 24 months from the	25%
	first grant date to
	the last transaction date within 36 months from the first
	grant date
Third unlocking	From the first transaction after 36 months from the first	25%
	grant date to
	the last transaction date within 48 months from the first
	grant date
Fourth unlocking	From the first transaction after 48 months from the first	25%
	grant date to
	the last transaction date within 60 months from the first
	grant date

• 2) Unlocking conditions for restricted shares: The assessment years for the Company to unlock the first grant part in the incentive plan include four fiscal years, i.e. 2015-2018, and the assessment will be carried out once every fiscal year, and the performance assessment target for each year is given in the following table:

Unlock Performance

First unlocking period During the lock-up period, the net profit attributable to shareholders of the listed company and the net profit less non-recurring gains/losses attributable to shareholders of the listed company should neither be negative nor be lower than the average for the recent three fiscal years prior to the grant date; as compared with 2014, the growth rate of net profit should not be lower than 33% in 2015;

Second unlocking period As compared with 2014, the growth rate of net profit should not be lower than 48% in 2016; Third unlocking period As compared with 2014, the growth rate of net profit should not be lower than 63% in 2017; Fourth unlocking period As compared with 2014, the growth rate of net profit should not be lower than 78% in 2018;

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FINANCIAL INFORMATION OF JINKE PROPERTY

• 3) Requirements for personal performance assessment

Incentive targets sign the Restricted Share Agreement with the Company. The Company will assess the incentive targets in light of post nature and its administrative measures for overall budget and performance assessment. The amount of an incentive target’s equity actually unlockable in the current year is related to his/her personal performance assessment of the preceding year, and the specific percentage is determined according to the incentive target’s personal assessment result. Excellent or good result in the annual personal assessment corresponds to the personal unlocking percentage of 100%; qualified result in the annual personal assessment corresponds to the personal unlocking percentage of 80%; unqualified result in the annual personal assessment corresponds to the personal unlocking percentage of 0.

(2) Cost of equity incentive plan

If the fair value of the equity instrument granted to incentive targets on the grant date is the value (i.e. RMB2.26/share) of equity instrument that does not take into account restrictive factors on that day minus the cost brought by restrictive factors (i.e. the cost of warrant investment made by incentive targets to lock the reasonable expected earnings in the future), the total fair value of equity instrument granted by the Company to incentive targets on the grant date is RMB117,873,600, which will be confirmed in installments as the total cost of the current equity incentive plan during the implementation thereof. After 12 months from the grant date of the current incentive plan, incentive targets will unlock the rights and interests granted in the plan in the next 48 months, at the percentage of 25%, 25%, 25% and 25%, respectively, and calculate the amortization expenses for each period. See the following table for details:

In 2015	In 2016	In 2017	In 2018	In 2019	Total
525.07	8,116.47	2,309.17	710.65	126.00	11,787.36

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FINANCIAL INFORMATION OF JINKE PROPERTY

APPENDIX II

(II) Equity-settled share-based payment

• The method of determining the fair value of equity instrument on the grant date

RMB2.26 (closing price RMB5.49 - grant price RMB3.23 on the grant date), which is the value of equity instrument on the grant date, minus the cost brought by restrictive factors

• Basis for determining the quantity of exercisable equity instruments

The performance conditions and the result of performance evaluation of incentive targets during every unlocking period

Reasons for significant difference between the current estimate and previous estimate

None

• Accumulated amount of equity-settled share-based payment included in the capital reserve

5,250,679.69

• Total amount of equity-settled share-based payment recognized in the current period

5,250,679.69

XII. Commitments and contingencies

(I) Important commitments

As at 31 December 2015, the expenditure of agreed capital projects for which the Company has signed relevant contracts (mainly contracts on purchase and construction of long-term assets and land contracts) but did not make the payment totalled RMB3,119.4509 million, which will be paid in several years when the other parties fulfill their responsibilities and obligations stipulated in the contracts. Details are as follows:

			In RMB’0,000
Item	Contract amount	Amount paid	Amount unpaid
Contract on purchase and construction of
long-term assets	136,000.00	31,711.75	104,288.25
Land contract	501,988.40	294,331.56	207,656.84
Total	637,988.40	326,043.31	311,945.09

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APPENDIX II

(II) Contingencies

It is a common practice for the Company and its subsidiaries to provide mortgage-backed guarantee for purchasers of commodity housing. Such guarantee is periodic and the guarantee period starts from the date of entry into force of the guarantee contract to the date when the purchaser of commodity housing obtains the Property Ownership Certificate , completes mortgage registration formalities and gives the Property Ownership Certificate to the bank. As at 31 December 2015, the periodic guarantee amount of the Company and its subsidiaries tallied RMB7,885,664,600, and the amount paid for bearing the periodic joint-and-several guarantee liability reached RMB32,099,000. The Company and its subsidiaries has assessed the impact of relevant guarantee risks on the financial statements, has taken active measures to pursue recovery, and has made corresponding provision for bad debts in the reporting period.

XIII.Events subsequent to balance sheet date

(I) Important non-adjusting events

		Effects on
		financial	Reason for
		position and	impossibility
		operating	to estimate the
Item	Content	results	effects
New	The subsidiary Jinke Industrial Investment	Not applicable	Not applicable
establishment	Development Company Limited funded
	Chongqing Jinke Kejian Real Estate Co., Ltd.,
	with an investment of RMB90 million. The
	registered capital of the company was
	RMB100 million, so Jinke Industrial
	Investment Development Company Limited
	has 90% stake in the company. The company
	obtained the business license (with Unified
	Social Credibility Code:
	91500000MA5U4NKPX8) on 22 February
	2016.
	The subsidiary Chengdu Jianglong Investment	Not applicable	Not applicable
	Co., Ltd. funded Chengdu Hongteng Century
	Business Management Co., Ltd., with an
	investment of RMB1 million. The registered
	capital of the company was RMB1 million, so
	Chengdu Jianglong Investment Co., Ltd. has
	100% stake in the company. The company
	obtained the business license (Unified Social
	Credibility Code: 91510100MA61TU2Q46) on
	16 March 2016.

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APPENDIX II

			Influence	Reason of
			number of	inability to
		financial position		estimate the
			and operating	influence
Item	Content		results	number
Acquisition	According to the equity transfer agreement		Not applicable	Not applicable
under the	signed between Wuxi Jinke Real Estate
same control	Development Co., Ltd. and Jiangsu Sunshine
	Group Co., Ltd. on 25 January 2016, Jiangsu
	Sunshine Group Co., Ltd. transferred its 90%
	equity in Jurong Yifeng Real Estate
	Development Co., Ltd. to Wuxi Jinke at the
	consideration of RMB18 million. Jurong
	Yifeng Real Estate Development Co., Ltd. has
	completed the equity transfer and other related
	business changes on 27 January 2016.
	According to the cooperation agreement signed		Not applicable	Not applicable
	between the subsidiary Jinke Property Services
	Group Limited and natural person Huang
	Shuqu and Huang Yingying in January 2016,
	Huang Shuqu and Huang Yingying transferred
	their 100% equity in Chongqing Shunsheng
	Chengxun Property Management Co., Ltd. to
	Jinke Property for free. Chongqing Shunsheng
	Chengxun Property Management Co., Ltd. has
	completed the equity transfer and other related
	business changes on 5 January 2016.
Land acquisition	According to the Sales Confirmation, in		Not applicable	Not applicable
	January 2016, the subsidiary Wujiaqu Jinke
	Real Estate Development Co., Ltd. won the
	right to use the land (No. LSGP2015-070)
	with a total area of about 136,677.43 m2 in
	the Corps Public Resources Trading Center
	No. 6 Sub-center, at the price of
	RMB22,141,700.
	According to the Sales Confirmation, in		Not applicable	Not applicable
	January 2016, the subsidiary Wujiaqu Jinke
	Real Estate Development Co., Ltd. won the
	right to use the land (No. LSGP2015-071)
	with a total area of about 59,001.29 m2 in the
	Corps Public Resources Trading Center No. 6
	Sub-center, at the price of RMB21,575,000.

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APPENDIX II

		Influence	Reason of
		number of	inability to
		financial position	estimate the
		and operating	influence
Item	Content	results	number
	According to the Sales Confirmation, in	Not applicable	Not applicable
	January 2016, the subsidiary Wujiaqu Jinke
	Real Estate Development Co., Ltd. won the
	right to use the land (No. LSGP2015-072)
	with a total area of about 79,074.87 m2 in the
	Corps Public Resources Trading Center No. 6
	Sub-center, at the price of RMB29,540,000.
	According to the Sales Confirmation, in	Not applicable	Not applicable
	February 2016, the subsidiary Zhengzhou
	Xinyinke Real Estate Co., Ltd. won the right
	to use the land “Zheng Zheng Chu [2015] No.
	128” of the Land and Resources Bureau of
	Zhengzhou City at the price of RMB72.72
	million.
	According to the Sales Confirmation, in	Not applicable	Not applicable
	February 2016, the subsidiary Zhengzhou
	Xinyinke Real Estate Co., Ltd. won the right
	to use the land “Zheng Zheng Chu [2015] No.
	129” of the Land and Resources Bureau of
	Zhengzhou City at the price of RMB111.8
	million.
	According to the Sales Confirmation, in	Not applicable	Not applicable
	February 2016, the subsidiary Zhengzhou
	Xinyinke Real Estate Co., Ltd. won the right
	to use the land “Zheng Zheng Chu [2015] No.
	130” of the Land and Resources Bureau of
	Zhengzhou City at the price of RMB98.58
	million.
	According to the Sales Confirmation (Yu Di	Not applicable	Not applicable
	Jiao Yi Chu [2016] No. 11), in February 2016,
	the subsidiary Chongqing Jinke Kejian Real
	Estate Co., Ltd. won the right to use the land
	(No. E3-1/01, E3-2/01, E4-1/01, E5-1/01,
	E6-1/01, E7-1/01, E8-1/01 and E10-1/01) with
	a total area of about 272,600.00 m2 in
	Standard District E, Shuitu Group, Liangjiang
	New Area, at the price of RMB346.06 million.

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APPENDIX II

Item

Content

Influence Reason of number of inability to financial position estimate the and operating influence results number

Important Refer to Notes XIV (II).7, XIV (II).8, XIV Not applicable Not applicable financing (II).9, XIV (II).11 to the Financial Statements for details

(II) Profit distribution after the balance sheet date

Profits or dividends to be Based on the share capital recorded on 31 December 2015, the distributed and capital reserve Company plans to distribute RMB0.5 of cash dividends for converted into capital every 10 shares to each shareholder with undistributed profits

Profits or dividends declared upon approval

None

XIV. Other important issues

• (I) Information about segments

• Determination basis and accounting policies of reporting segment

The Company determines business segments based on the internal organizational structure, management requirements, and internal reporting system. The business segments of the Company refer to the constituent parts meeting the following conditions at the same time:

• (1) They can generate revenues and incur expenses in the daily activities;

• (2) The management can regularly evaluate their operating results to determine their allocation of resources and assess their performances;

• (3) Their financial position, operating results, cash flow and other relevant accounting information can be obtained through analysis. The Company determines the reporting segment based on the industrial segment, and distributes the commonly used assets and liabilities among segments according to their scale.

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FINANCIAL INFORMATION OF JINKE PROPERTY

2. Financial information of reporting segment

Industrial segment

Unit: RMB’0,000

Item Revenue from main businesses Cost of main businesses Total assets Total liabilities Item Revenue from main businesses Cost of main businesses Total assets Total liabilities	Sales of real estate 1,803,395.94 1,309,753.60 19,394,786.91 15,908,434.44 Decorative design 8,380.71 5,782.21 454,650.59 439,998.76	Property management Hotel operation 58,893.50 20,197.30 45,204.58 6,302.38 247,971.12 126,626.21 225,430.76 111,451.48 Sales of materials Wind power investment and development 135,524.08 12,196.84 128,968.13 4,450.96 1,143,942.96 315,817.85 1,104,378.68 128,916.81	Hotel operation 20,197.30 6,302.38 126,626.21	Landscaping engineering 42,946.24 37,570.53 261,005.94 245,809.75 Inter-segment elimination -180,596.23 -171,195.57 -12,825,689.48 -10,574,331.77	Doors & windows engineering 16,192.72 15,970.70 436,167.57 431,380.56 Total 1,917,131.10 1,382,807.52 9,555,279.67
			111,451.48
			128,916.81		8,021,469.47

(II) Other important transactions and events that have an impact on investor’s decision-making

1. Pledge of shareholders’ equity

As at 31 December 2015, the pledge and freezing of the Company’s shares are as follows:

	Number of		Freezing	Freezing
Name of shareholder	**shares frozen **	Name of pledgee	type	time
Chongqing Jinke Investment	100,000,000.00	Industrial and	Pledge	2015-04-28
Holding (Group) Co., Ltd.		Commercial Bank of
		China Limited,
		Chongqing Yubei
		Sub-branch
	75,000,000.00	Guosen Securities Co.,	Pledge	2015-04-28
		Ltd.

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FINANCIAL INFORMATION OF JINKE PROPERTY

	Number of		Freezing	Freezing
Name of shareholder	**shares frozen **	Name of pledgee	type	time
	54,777,620.00	Dongxing Securities Co.,	Pledge	2015-04-28
		Ltd.
	50,000,000.00	Industrial and	Pledge	2013-09-26
		Commercial Bank of
		China Limited,
		Chongqing Yubei
		Sub-branch
	40,486,753.00	Guosen Securities Co.,	Pledge	2015-04-28
		Ltd.
	35,200,000.00	Guosen Securities Co.,	Pledge	2015-04-28
		Ltd.
	30,000,000.00	Guosen Securities Co.,	Pledge	2015-04-28
		Ltd.
	27,388,810.00	Dongxing Securities Co.,	Pledge	2014-08-04
		Ltd.
	8,000,000.00	Guosen Securities Co.,	Pledge	2014-12-01
		Ltd.
	2,800,000.00	Guosen Securities Co.,	Pledge	2014-11-06
		Ltd.
Fu Xiaowen	2,280,000.00	Guosen Securities Co.,	Pledge	2015-04-28
		Ltd.
Nie Ming	720,000.00	Guosen Securities Co.,	Pledge	2015-04-28
		Ltd.
Chen Hong	660,000.00	Guosen Securities Co.,	Pledge	2015-04-28
		Ltd.
Fu Xiaowen	620,000.00	Guosen Securities Co.,	Pledge	2015-09-18
		Ltd.
Nie Ming	540,000.00	Guosen Securities Co.,	Pledge	2015-09-15
		Ltd.
Nie Ming	360,000.00	Guosen Securities Co.,	Pledge	2015-04-20
		Ltd.

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FINANCIAL INFORMATION OF JINKE PROPERTY

Name of shareholder Chen Hong Chen Hong Other non-connected natural persons Total	Number of shares frozen Name of pledgee Freezing type Freezing time 330,000.00 Guosen Securities Co., Ltd. Pledge 2014-12-16 285,598.00 Guosen Securities Co., Ltd. Pledge 2015-12-22 4,910,173.00 434,358,954.00

1. According to the Proposal for Construction Project Site (Xuan Zi Di No. 650000201100612) issued by the Department of Housing & Urban-Rural Development of Xinjiang Uygur Autonomous Region in 2011, for the construction of the sixth Wind Farm (200 MW) project in Yandun, Hami, the subsidiary Xinjiang Huaran is approved to permanently acquire land of 349,153 m[2] . The said land is a state-owned land unused. On 29 September 2014, Xinjiang Huaran obtained the Temporary Land Use Permit from the Department of Land and Resources of Xinjiang Uygur Autonomous Region, which should be valid from 26 September 2014 to 25 September 2015. According to the Reply Concerning the Extension of Temporary Land Use Term of Xinjiang Huaran Oriental New Energy Co., Ltd. (Ha Shi Guo Tu Lin Fa [2015] No.66) issued by the Bureau of Land and Resources of Hami on 21 October 2015, the temporary land use term is extended by 1 year to 25 September 2016. As at 31 December 2015, the application for the certificate of title of the aforesaid land was underway.

2. According to the Letter of Xinjiang Electric Power Regulatory Office of the State Electricity Regulatory Commission on the Application for Electric Power Business License by Xinjiang Huaran Oriental New Energy Co., Ltd. (Xin Dian Jian Zi Han [2013] No. 158), relevant information provided by the subsidiary Xinjiang Huaran about No. A1-A100 generators (installed capacity of 100*2MW) in the Wind Farm (200 MW) project in Yandun, Hami has passed the preliminary examination.

3. The on-grid tariff of the subsidiary Xinjiang Huaran’s Wind Farm (200 MW) project in Yandun, Hami is RMB0.58/kWh (tax included), specifically including the RMB0.25/kWh (tax included) purchase price, which is the local benchmark tariff for on-grid power generated by coal-fired generators using desulphurization approved or confirmed by competent price department of the government, and the RMB0.33/kWh (tax included) on-grid tariff of renewable energy power price surcharges. According to the Notice of the Ministry of Finance, National Development and Reform Commission, and National Energy Administration on Issuing the (Cai Jian [2012] No. 102), the state provides subsidies for on-grid electricity from renewable energy electricity generation projects in accordance with factors like on-grid tariff of renewable energy projects and benchmark tariff for coal-fired generators using desulphurization. The provincial grid enterprises

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and local independent grid enterprises should, in accordance with the grid-connected electricity generation projects and grid-connected projects included in the Catalogue of Additional Subsidies for Renewable Electricity Prices within the grid coverage at the corresponding level, file an application for subsidies and make a report to the Ministry of Finance, National Development and Reform Commission and National Energy Administration upon approval of local provincial finance, price and energy competent departments. As at 31 December 2015, Xinjiang Huaran was applying for access to the Catalogue of Additional Subsidies for Renewable Electricity Prices.

1. In July 2015, the Company’s wholly-owned subsidiary Kumul Huaran Oriental Jingxia Wind Power Generation Co., Ltd. (hereinafter referred to as Huaran Oriental) received the Reply of Xinjiang Uygur Autonomous Region Development and Reform Commission Concerning the Approval of 700,000 kw Wind Power and 50,000 kw PV Projects in Jingxia District, Southeast of Hami Wind Power Base Phase II (Xin Fa Gai Neng Yuan [2015] No. 1301) forwarded by Xinjiang Uygur Autonomous Region Development and Reform Commission, which approved the 700,000 kw wind power and 50,000 kw PV projects in Jingxia District, southeast of Hami Wind Power Base Phase II. According to the Reply, among the five projects approved, the wind farm in District C, Jingxia is funded by the Company’s wholly-owned subsidiary Huaran Oriental, with a total installed capacity of 200,000 kw and total investment of RMB1,564.82 million.

2. In July 2015, the Company’s wholly-owned subsidiary Jinke New Energy Co., Ltd. (hereinafter referred to as Jinke New Energy) received the Energy Conservation Registration Opinions (Ri Fa Gai Neng Shen Bei [2015] No. 33) from Rizhao Municipal Development and Reform Commission, which approved the registration and filing of the 20,000 kw photovoltaic power generation project in Zhongzhi, Wulian, Shandong declared by Jinke New Energy. According to the filing, this project is a photovoltaic power station situated in Yaoyuzi Village, Zhongzhi Town, Wulian County, Shandong, with a total installed capacity of 20,000 kw and total investment of RMB153.39 million.

3. According to the proposal of Advance Scheme on 2015 Non-public Issuance of Stocks of the Company deliberated and approved at the 21th meeting of the 9th Board of Directors of the Company on 20 August 2015 and the 6th extraordinary general meeting 2015 held on 8 September 2015, the Company planned to issue no more than 773,195,876 shares (inclusive) in non-public mode to raise a maximum of RMB4.5 billion funds. On 4 February 2016, the Company held the 28th meeting of the 9th Board of Directors, which deliberated and approved the Proposal on Adjusting the Scheme on the Non-public Issuance of Stocks of Jinke Property Group Co., Ltd. , and the Proposal on Adjusting the Advance Scheme on 2015 Non-public Issuance of Stocks of Jinke Property Group Co., Ltd., and amended the Advance Scheme on 2015 Non-public Issuance of Stocks. After the amendment, the number of shares issued in a non-public mode of the Company should not exceed 1,222,826,086 (inclusive), and the fund raised should be less than RMB4.5 billion. The above proposals were deliberated and approved by the Company at the 2nd extraordinary general meeting 2016 held on 22 February 2016. The current non-public issuance has been accepted by China Securities Regulatory Commission, which also provided feedback, and the Company and relevant intermediaries have also responded to the feedback. As at the date of this report, matters relating to the current non-public issuance of stocks were underway and were still subject to the approval by China Securities Regulatory Commission.

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1. Upon approval at the 27th meeting of the 9th Board of Directors of the Company on 4 January 2016, the Company planned to issue non-public corporate bonds worth less than RMB10 billion (inclusive). With term of less than 7 years (inclusive), the bonds can be a single-term variety or mixed varieties with different terms. The specific bond interest rates and ways to determine them will be proposed to the general meeting, which will authorize the Board of Directors to make the decision after negotiating with the lead underwriter according to the market inquiry. The proceeds from the current issuance of bonds minus the issue expenses will be used to adjust the corporate debt structure, add liquidity, and fund the project construction and potential merger & acquisition projects in the future. The above proposal was deliberated and approved by the Company on the 1st extraordinary general meeting 2016 held on 20 January 2016. As at the date of this report, matters relating to the current non-public issuance of stocks were still underway.

2. On 13 October 2015, the Company received the Notice of Accepting Registration (Zhong Shi Xie Zhu [2015] MTN517) from the National Association of Financial Market Institutional Investors (hereinafter referred to as Association of Institutional Investors), which agreed to accept the Company’s registration of medium-term notes with registered amount of RMB3.2 billion, which would be valid for 2 years from the date of issue of notice. The Company may issue medium-term notes in tranches in the validity period of registration. On 20 November 2015, the Company issued the first tranche of medium-term notes worth RMB2.1 billion, with a term of 3 years (from 24 November 2015 to 24 November 2018) and a coupon rate of 5.5%. On 21 March 2016, the Company issued the second tranche of medium-term notes worth RMB1.1 billion, with a term of 3 years (from 22 March 2016 to 22 March 2019) and a coupon rate of 5.3%.

3. Upon approval by the China Securities Regulatory Commission in Document Zheng Jian Xu Ke [2015] No. 1838, the Company issued non-public corporate bonds with face value of not more than RMB3.8 billion in two tranches. On 28 August 2015, the Company completed the issuance of the first tranche worth RMB2 billion, and the name of the bond was 2015 Corporate Bond of Jinke Property Group Co., Ltd. (First Tranche). With option of adjusting coupon rate for issuer and sell-back options for investors, the current bonds are fixed-rate bonds with a term of 5 years and a coupon rate of 6.40%, which will remain unchanged within the duration of the bond; for coupon rate of bonds, simple interest (instead of compound interest) is calculated on a yearly basis, and the overdue parts bear no interest. The coupon rate of the current bonds will remain unchanged in the first 3 years within the duration, and the issuer may choose to raise the coupon rate at the end of the third year within the duration. The annual coupon rate of the bond is the annual coupon rate in the first 3 years within the duration plus the basis points raised, which will remain unchanged in the last 2 years within the duration. After the issuer announces to adjust the coupon rate, the investors have the right to sell, at par value, the bonds held by them in whole or in part back to the issuer on the third interest payment date of the current bonds. As at the date of this report, the remaining matters relating to the public issuance of bonds were still underway.

4. Upon approval by Shenzhen Stock Exchange in Document Shen Zheng Han [2015] No. 354, Shenzhen Stock Exchange has no objection to the Company’s application for confirming that its 2015 non-public issuance of corporate bonds of Jinke Property Group Co., Ltd. worth no more than RMB3.8 billion is in line with the transfer conditions of the Shenzhen Stock Exchange. The current bonds will be issued in tranches within 12 months from the date of issuance of the no objection letter. On 16 December 2015, the Company completed the issuance of 2015 first

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FINANCIAL INFORMATION OF JINKE PROPERTY

tranche non-public corporate bonds worth RMB1.25 billion, and the name of the bond was 2015 Non-public Corporate Bond of Jinke Property Group Co., Ltd. (First Tranche). The bonds have a three-year term and a coupon rate of 6.8% (simple interest) calculated on a yearly basis, with option of adjusting coupon rate in the second interest-bearing year for issuer and sell-back options for investors. The second tranche worth RMB2.55 billion has two varieties: the first variety worth RMB1.25 billion, with a term of 3 years and a coupon rate of 6.80%; and the second variety worth RMB1.3 billion, with a term of 3 years and a coupon rate of 6.0%. On 17 March 2016, the Company fully completed the payment for subscription.

XV. Notes to major items in the financial statements of the parent company

• (I) Notes to items in the balance sheet of the parent company

• Accounts receivable

• (1) Details

• 1) Classified details

		**Amount at **	**Amount at **	**the end of the **	period
	**Book **	balance		**Provision for **	bad debts
					Provision
					withdrawal
		Percentage			percentage
Classification	Amount		(%)	Amount		(%)	Book value
Receivables whose amount is
significant individually and for
which provision for bad debts is
withdrawn individually	—		—	—		—	—
Receivables for which provision is
withdrawn for bad debts in
portfolio by credit risks	13,859,030.99	100.00		188,524.45	1.36		13,670,506.54
Receivables whose amount is
insignificant individually but for
which provision for bad debts is
withdrawn individually	—		—	—		—	—
Total	13,859,030.99	100.00		188,524.45	1.36		13,670,506.54

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APPENDIX II

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Classification Receivables whose amount is significant individually and for which provision for bad debts is withdrawn individually Receivables for which provision is withdrawn for bad debts in portfolio by credit risks Receivables whose amount is insignificant individually but for which provision for bad debts is withdrawn individually Total	Amount at the beginning of the period Book balance Provision for bad debts Amount Percentage (%) Amount Provision withdrawal percentage (%) — — — — 13,406,522.73 100.00 180,222.00 1.34 — — — — 13,406,522.73 100.00 180,222.00 1.34	Book value — 13,226,300.73 —
		13,226,300.73

• 2) Accounts receivable for which provision is withdrawn for bad debts as per age analysis method in portfolio

Age Within 1 year 1-2 years Over 5 years Subtotal	Amount at the end of the period Book balance Provision for bad debts Provision withdrawal percentage (%) 13,741,723.80 137,417.24 1.00 69,684.19 3,484.21 5.00 47,623.00 47,623.00 100.00 13,859,030.99 188,524.45 1.36	Amount at the end of the period Book balance Provision for bad debts Provision withdrawal percentage (%) 13,741,723.80 137,417.24 1.00 69,684.19 3,484.21 5.00 47,623.00 47,623.00 100.00 13,859,030.99 188,524.45 1.36
		1.36

• (2) Provision for bad debts withdrawn, recovered or reversed in the current period

The amount withdrawn for bad debts in the current period is RMB8,302.45.

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FINANCIAL INFORMATION OF JINKE PROPERTY

• (3) Top five entities in amount of accounts receivable

Entity name Customer 1 Customer 2 Customer 3 Customer 4 Customer 5 Subtotal	Book balance Percentage in balance of accounts receivable (%) Provision for bad debts 13,714,565.41 98.96 137,145.65 44,643.65 0.32 2,232.18 40,238.00 0.29 40,238.00 14,569.94 0.11 728.50 10,470.60 0.08 523.53 13,824,487.60 99.76 180,867.86	Book balance Percentage in balance of accounts receivable (%) Provision for bad debts 13,714,565.41 98.96 137,145.65 44,643.65 0.32 2,232.18 40,238.00 0.29 40,238.00 14,569.94 0.11 728.50 10,470.60 0.08 523.53 13,824,487.60 99.76 180,867.86
		180,867.86

The balance of the top five accounts receivable at the end of the period totalled RMB13,824,487.60, accounting for 99.76% of the total balance of accounts receivables at the end of the period, and the corresponding provision withdrawn for bad debts was RMB180,867.86.

2. Other receivables

• (1) Details

• 1) Classified details

Classification Receivables whose amount is significant individually and for which provision for bad debts is withdrawn individually Receivables for which provision is withdrawn for bad debts in portfolio by credit risks Receivables whose amount is insignificant individually but for which provision for bad debts is withdrawn individually Total	Amount at the end of the period Book balance Provision for bad debts Amount Percentage (%) Amount Provision withdrawal percentage (%) — — — — 27,544,942,461.96 100.00 30,774,820.60 0.11 — — — — 27,544,942,461.96 100.00 30,774,820.60 0.11	Book value — 27,514,167,641.36 —
		27,514,167,641.36

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Classification Receivables whose amount is significant individually and for which provision for bad debts is withdrawn individually Receivables for which provision is withdrawn for bad debts in portfolio by credit risks Receivables whose amount is insignificant individually but for which provision for bad debts is withdrawn individually Total	Amount at the beginning of the period Book balance Provision for bad debts Amount Percentage (%) Amount Provision withdrawal percentage (%) — — — — 13,856,981,326.14 100.00 19,247,814.04 0.14 — — — — 13,856,981,326.14 100.00 19,247,814.04 0.14	Book value — 13,837,733,512.10 —
		13,837,733,512.10

• 2) Other receivables for which provision is withdrawn for bad debts as per age analysis method in portfolio

Age Within 1 year 1-2 years 2-3 years 3-5 years Over 5 years Subtotal	Amount at the end of the period Book balance Provision for bad debts Provision withdrawal percentage (%) 18,716,223.08 187,143.84 1.00 3,395,777.28 169,788.86 5.00 6,055,997.58 1,211,567.32 20.00 34,719,333.00 17,359,666.50 50.00 11,846,654.08 11,846,654.08 100.00 74,733,985.02 30,774,820.60 41.18	Amount at the end of the period Book balance Provision for bad debts Provision withdrawal percentage (%) 18,716,223.08 187,143.84 1.00 3,395,777.28 169,788.86 5.00 6,055,997.58 1,211,567.32 20.00 34,719,333.00 17,359,666.50 50.00 11,846,654.08 11,846,654.08 100.00 74,733,985.02 30,774,820.60 41.18
		41.18

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APPENDIX II

• 3) Other receivables for which provision is withdrawn for bad debts as per other methods in portfolio

Portfolio name Combination of transactions with connected parties in the consolidation scope Cash deposit portfolio Subtotal	Amount at the end of the period Book balance Provision for bad debts Provision withdrawal percentage (%) 27,440,183,476.94 30,025,000.00 27,470,208,476.94

• (2) Provision for bad debts withdrawn, recovered or reversed in the current period

• 1) The amount withdrawn for bad debts in the current period is RMB11,527,006.56.

• 2) Other receivables classified by payment properties

Payment properties Amount at the end of the period Cash deposit 30,025,000.00 Transactions with connected parties in the consolidation scope 27,440,183,476.94 Others 74,733,985.02 Total 27,544,942,461.96	Amount at the beginning of the period 73,525,000.00 13,724,390,588.43 59,065,737.71
	13,856,981,326.14

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FINANCIAL INFORMATION OF JINKE PROPERTY

• (3) Top five entities in amount of other receivables

Entity name Payment properties Chongqing Qingke Trading Co., Ltd. Transactions with connected parties Wuxi Jinke Real Estate Development Co., Ltd. Transactions with connected parties Chongqing Jinke Real Estate Development Co., Ltd. Transactions with connected parties Chongqing Jinke Industrial Group Hongjing Real Estate Development Co., Ltd. Transactions with connected parties Chongqing Jinke Huimao Real Estate Development Co., Ltd. Transactions with connected parties Subtotal

Book balance Age Percentage in balance of other receivables (%) Provision for bad debts 6,970,274,723.44 Within 1 year 25.31 2,959,511,656.41 Within 1 year 10.74 2,438,527,168.30 Within 1 year 8.85 1,585,796,636.56 Within 1 year 5.76 1,323,852,148.39 Within 1 year 4.81 15,277,962,333.10 55.47

3. Long-term equity investment

(1) Details

	**Amount at the end of the **	**Amount at the end of the **	period	**Amount at the beginning of **	**Amount at the beginning of **	the period	the period
		Provision for			Provision for
Item	Book balance	impairment	Book value	Book balance	impairment		Book value
Investment in
subsidiaries	12,696,059,070.41		12,696,059,070.41	11,063,059,070.41		11,063,059,070.41
Investment in
associated
enterprises and
joint ventures	87,830,099.03		87,830,099.03	89,578,777.34			89,578,777.34
Total	12,783,889,169.44		12,783,889,169.44	11,152,637,847.75		11,152,637,847.75

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(2) Investment in subsidiaries

					Provision
					withdrawn for	Provision for
	Amount at the			Amount at the	impairment in	impairment at
	beginning of the	Increase in the	Decrease in the	end of the	the current	the end of the
Invested entity	period	current period	current period	period	period	period
Shaanxi Haoyuefu Real
Estate Development Co.,
Ltd.	20,000,000.00			20,000,000.00
Shaanxi Jinrunda Real Estate
Development Co., Ltd.	102,000,000.00			102,000,000.00
Jinke Property Services
Group Limited Company	50,000,000.00			50,000,000.00
Jinke Industrial Investment
Development Company
Limited	500,000,000.00			500,000,000.00
Shandong Baijun Real Estate
Development Co., Ltd.		10,000,000.00		10,000,000.00
Beijing Jinke New Energy
Co., Ltd.		1,493,000,000.00		1,493,000,000.00
Xinjiang Jinke Yijia Real
Estate Development Co.,
Ltd.		100,000,000.00		100,000,000.00
Chongqing Jinke Wuchen
Real Estate Development
Co., Ltd.		30,000,000.00		30,000,000.00
Chengdu Jinke Real Estate
Development Co., Ltd.	269,500,273.09			269,500,273.09
Wuxi Jinke Real Estate
Development Co., Ltd.	625,429,734.00			625,429,734.00
Liuyang Jinke Real Estate
Co., Ltd.	45,000,000.00			45,000,000.00
Chongqing Jinke Kunhe
Investment Co., Ltd.	50,000,000.00			50,000,000.00
Chongqing Jinke Hotel Co.,
Ltd.	60,602,877.20			60,602,877.20
Wuxi Jinke Kerun Real
Estate Development Co.,
Ltd.	300,000,000.00			300,000,000.00
Chongqing Qingke Trading
Co., Ltd.	176,000,000.00			176,000,000.00
Hunan Jinke Real Estate
Development Co., Ltd.	150,000,000.00			150,000,000.00
Jiangyin Jinke Real Estate
Development Co., Ltd.	99,000,000.00			99,000,000.00
Jiangyin Jinke Real Estate
Development Co., Ltd.	147,000,000.00			147,000,000.00
Beijing Jinke Xingyuan Real
Estate Co., Ltd.	140,000,000.00			140,000,000.00

— 324 —

APPENDIX II

FINANCIAL INFORMATION OF JINKE PROPERTY

					Provision
					withdrawn for	Provision for
	Amount at the			Amount at the	impairment in	impairment at
	beginning of the	Increase in the	Decrease in the	end of the	the current	the end of the
Invested entity	period	current period	current period	period	period	period
Chongqing Jinke Industrial
Group Kerun Real Estate
Development Co., Ltd.	100,000,000.00			100,000,000.00
Chongqing Bozhan Real
Estate Development Co.,
Ltd.	400,300,000.00			400,300,000.00
Chongqing Kelsinki
Landscaping Co., Ltd.	100,000,000.00			100,000,000.00
Chongqing Tianhao
Menchuang Co., Ltd.	50,538,329.81			50,538,329.81
Chongqing Jinke Real Estate
Development Co., Ltd.	90,719,700.00			90,719,700.00
Chongqing Tongrong
Industrial Co., Ltd.	33,400,100.00			33,400,100.00
Chongqing Casin Jiangjing
Real Estate Development
Co., Ltd.	39,418,063.00			39,418,063.00
Chongqing Jinke Industrial
Group Hua’nan Real Estate
Development Co., Ltd.	30,000,000.00			30,000,000.00
Chongqing Huaxie Real
Estate Co., Ltd.	64,930,000.00			64,930,000.00
Chongqing Zhongxun
Property Development Co.,
Ltd.	172,200,000.00			172,200,000.00
Chongqing Jinke Industrial
Group Hongjing Real
Estate Development Co.,
Ltd.	49,985,097.87			49,985,097.87
Chongqing Jiale Jiulong Real
Estate Development Co.,
Ltd.	103,870,945.98			103,870,945.98
Chongqing Tianyuansheng
Real Estate Development
Co., Ltd.	179,664,612.36			179,664,612.36
Beijing Jinke Napa Real
Estate Co., Ltd.	2,558,856,506.91			2,558,856,506.91
Beijing Jinke Hongju Real
Estate Co., Ltd.	697,100,000.00			697,100,000.00
Chongqing Jinke Kepeng
Business Management Co.,
Ltd.	5,000,000.00			5,000,000.00
Chongqing Jinke Chenju Real
Estate Co., Ltd.	20,000,000.00			20,000,000.00
Chongqing Jinke Junyao Real
Estate Development Co.,
Ltd.	1,184,908,816.47			1,184,908,816.47

— 325 —

APPENDIX II

FINANCIAL INFORMATION OF JINKE PROPERTY

Invested entity Chongqing Bishan Jinke Zhongxi Real Estate Co., Ltd. Jinan Jinke Xicheng Real Estate Development Co., Ltd. Chongqing Qingheng Trading Co., Ltd. Chongqing Jiangjin Jinke Guojun Real Estate Co., Ltd. Chongqing Jinke Culture and Tourism Investment Co., Ltd. Chengdu Jianglong Investment Co., Ltd. Jinke Group Suzhou Real Estate Development Co., Ltd. Subtotal

Amount at the beginning of the period Increase in the current period Decrease in the current period Amount at the end of the period Provision withdrawn for impairment in the current period Provision for impairment at the end of the period 400,000,000.00 400,000,000.00 510,000,000.00 510,000,000.00 49,810,000.00 49,810,000.00 987,424,013.72 987,424,013.72 86,400,000.00 86,400,000.00 394,000,000.00 394,000,000.00 20,000,000.00 20,000,000.00 11,063,059,070.41 1,633,000,000.00 12,696,059,070.41

• (3) Investment in associated enterprises and joint ventures

		**Increase/decrease in **	**Increase/decrease in **	the current period	the current period
				Investment
				gains/losses	Adjustments
	Amount at the			confirmed	to other
	beginning of	Investment	Investment	based on	comprehensive
Invested entity	the period	Added	reduced	equity method	income
Associated enterprises
Yinhai Leasing	79,584,272.26			5,418,175.49
Subtotal	79,584,272.26			5,418,175.49
Joint ventures
Jinwanzhong Real Estate	9,994,505.08			2,298.93
Subtotal	9,994,505.08			2,298.93
Total	89,578,777.34			5,420,474.42

— 326 —

APPENDIX II

FINANCIAL INFORMATION OF JINKE PROPERTY

Invested entity Increase/decrease in the current period Other equity changes Cash dividends or profits announced to be distributed Provision withdrawn for impairment Associated enterprises Yinhai Leasing — -7,169,152.73 — Subtotal — -7,169,152.73 — Joint ventures Jinwanzhong Real Estate — — — Subtotal — — — Total — -7,169,152.73 —	Amount at the end of the period Balance of provision for impairment at the end of the period Others — 77,833,295.02 — — 77,833,295.02 — — 9,996,804.01 — — 9,996,804.01 — — 87,830,099.03 —	Amount at the end of the period Balance of provision for impairment at the end of the period Others — 77,833,295.02 — — 77,833,295.02 — — 9,996,804.01 — — 9,996,804.01 — — 87,830,099.03 —
		—

• (4) Other descriptions

The Company provided a pledge guarantee for its loans with its equities in the subsidiaries including Chongqing Jinke Real Estate Development Co., Ltd., Chongqing Jinke Shangzun Real Estate Co., Ltd., Chengdu Jinke Real Estate Development Co., Ltd. and Beijing Jinke Hongju Real Estate Co., Ltd.; the Company provided a pledge guarantee for the loans of its subsidiary Shaanxi Haoyuefu Real Estate Development Co., Ltd. with its equities in Shaanxi Haoyuefu Real Estate Development Co., Ltd.

(II) Notes to items in the income statement of the parent company

1. Operating revenue/cost

2. (1) Details

Item Revenue from main businesses Revenue from other businesses [Note] Total	Amount in the current period Revenue Cost 68,117,006.00 47,552,512.20 318,943,726.72 1,582,913.40 387,060,732.72 49,135,425.60	Amount in the same period of preceding year Revenue Cost 191,440,556.00 115,527,907.14 319,284,357.79 2,536,704.61 510,724,913.79 118,064,611.75	Amount in the same period of preceding year Revenue Cost 191,440,556.00 115,527,907.14 319,284,357.79 2,536,704.61 510,724,913.79 118,064,611.75
			118,064,611.75

[Note] The revenue from other businesses is RMB 318,943,726.72, which is the consulting fee received by the Company from its subsidiaries.

— 327 —

APPENDIX II

FINANCIAL INFORMATION OF JINKE PROPERTY

• (2) Revenue from/cost of main businesses (by sector)

Name of region Sales of real estate Subtotal	Amount in the current period Revenue Cost 68,117,006.00 47,552,512.20 68,117,006.00 47,552,512.20	Amount in the same period of preceding year Revenue Cost 191,440,556.00 115,527,907.14 191,440,556.00 115,527,907.14	Amount in the same period of preceding year Revenue Cost 191,440,556.00 115,527,907.14 191,440,556.00 115,527,907.14
			115,527,907.14

• (3) Revenue from/cost of main businesses (by sector)

Name of region Chongqing Subtotal	Amount in the current period Revenue Cost 68,117,006.00 47,552,512.20 68,117,006.00 47,552,512.20	Amount in the same period of preceding year Revenue Cost 191,440,556.00 115,527,907.14 191,440,556.00 115,527,907.14	Amount in the same period of preceding year Revenue Cost 191,440,556.00 115,527,907.14 191,440,556.00 115,527,907.14
			115,527,907.14

2. Return on investment

Item Long-term equity investment return stated by cost method Long-term equity investment return stated by equity method Investment return generated by disposal of long-term equity investment Total	Amount in the current period 1,334,750,000.00 5,420,474.42 — 1,340,170,474.42	Amount in the same period of preceding year 1,094,913,663.12 2,107,366.93 3,262,974.06
		1,100,284,004.11

— 328 —

FINANCIAL INFORMATION OF JINKE PROPERTY

APPENDIX II

XVI. Other supplementary information

• (I) Non-recurring gains and losses

• Schedule of non-recurring gains and losses

Item	Amount	Note
Gains/losses from disposal of non-current assets,
including the offset part of the retained asset
impairment provisions	42,341,236.08
Unauthorized examination and approval, or lack of
official approval documents, or occasional tax revenue
return and abatement	—
Governmental subsidies recorded into the current profit
and loss ( except for the one closely related with the
normal operation of the company and gained
constantly at a fixed amount or quantity according to
certain standard based on state policies)	57,092,680.39
Capital occupation fee on non-financial enterprises
recorded into current gains and losses	40,169,457.84
Gains because the investment costs for the Company to
obtain subsidiaries, associated enterprises and joint
ventures are lower than the enjoyable fair value of the
identifiable net assets of the investees when making
the investments	—
Gain/loss on exchange of non-monetary assets	—
Gain/loss on entrusting others with investments or asset
management	—
Asset impairment provisions due to force majeure factors
such as natural disasters	—
Gain/loss on debt restructuring	—
Expenses for business reorganization, such as expenses
for staffing, reorganization etc.	—
Gain/loss on the part over the fair value due to
transactions with distinctly unfair prices	—
Current gains and losses of subsidiaries acquired from
merger of enterprises under the same control as from
the beginning of the period to the date of merger	—
Gain/loss on contingent events irrelevant to the
Company’s normal business	—

— 329 —

FINANCIAL INFORMATION OF JINKE PROPERTY

APPENDIX II

Item	Amount	Note
Gains and losses on change in fair value from tradable
financial assets and tradable financial liabilities (which
are measured at fair value through profit or loss), as
well as investment income from disposal of tradable
financial assets and tradable financial liabilities and
financial assets available for sales, except for effective
hedging related with normal businesses of the
Company	—
Reversal of impairment provisions for receivables on
which impairment tests are carried out separately	—
Gain/loss on external entrustment loans	—
Gain/loss on change of the fair value of investment
property of which the subsequent measurement is
carried out adopting the fair value method	39,863,547.99
Effect on current gains/losses when a one-off adjustment
is made to current gains/losses according to
requirements of taxation, accounting and other relevant
laws and regulations	—
Custody fee income when entrusted with operation	—
Non-operating incomes and expenses other than the
above	-16,202,630.72
Other gain/loss items that meet the definition of
non-recurring gains/losses	—
Subtotal	163,264,291.58
Less: Enterprise income tax effects (“-” for decrease
of income tax)	36,940,855.45
Effect of minority interests (after tax)	20,837,369.00
Net non-recurring gains and losses attributable to owners
of the parent company	105,486,067.13

— 330 —

FINANCIAL INFORMATION OF JINKE PROPERTY

APPENDIX II

• (II) Return on equity and earnings per share

• Details

			Earnings per share (RMB/share)	Earnings per share (RMB/share)	Earnings per share (RMB/share)
	Weighted average			Basic earnings	Diluted earnings
Profit in the reporting period		ROE (%)		per share	per share
Net profit attributable to common
shareholders		10.26		0.27	0.27
Net profit attributable to common
shareholders after deducting
non-recurring gains and losses		9.30		0.25	0.25
2. Computation process of weighted average ROE
					Amount in the
Item				SN	current period
Net profit attributable to common shareholders				A	1,123,401,276.93
Non-recurring gains and losses				B	105,486,067.13
Net profit attributable to common shareholders		after deducting		C=A-B	1,017,915,209.80
non-recurring gains and losses
Opening net assets attributable to common shareholders				D	10,529,946,323.38
Net assets attributable to common shareholders		newly added due		E	—
to new issuance or debt-to-equity swap
Cumulative number of months from the month		following the		F	—
month with net assets increased till the	end of reporting period
Net assets attributable to common shareholders		decreased due	to	G	206,781,007.65
repurchase or cash dividends
Cumulative number of months from the month		following the		H	8.00
month with net assets decreased till the	end of reporting
period

— 331 —

FINANCIAL INFORMATION OF JINKE PROPERTY

APPENDIX II

			Amount in the
Item		SN	current period
Others	Adjustment in the cost of investment property		26,367,941.54
	Cumulative number of months from the month		—
	following the month with net assets
	increased/decreased till the end of reporting period
	Expenses and deferred tax assets recognized for equity		7,097,450.57
	incentive in the current period
	Cumulative number of months from the month		—
	following the month with net assets
	increased/decreased till the end of reporting period
	Minority equity transaction of Jinke Huiyi		-19,540,372.98
	Cumulative number of months from the month		2.00
	following the month with net assets
	increased/decreased till the end of reporting period
	Minority equity transaction of Jinke Junwei		-25,546,722.67
	Cumulative number of months from the month		2.00
	following the month with net assets
	increased/decreased till the end of reporting period
	Minority equity transaction of Jinke Hongrui		-8,916,742.33
	Cumulative number of months from the month		2.00
	following the month with net assets
	increased/decreased till the end of reporting period
	Equity transaction of capital increase by minority		27,973,832.24
	shareholders of Jinke Hongrui
	Cumulative number of months from the month		—
	following the month with net assets
	increased/decreased till the end of reporting period
Months of reporting period		K	12.00
Weighted	average net assets	L= D+A/2+	10,944,792,317.08
		E�F/K-G
	�	H/K�I�J/K
Weighted	average ROE	M=A/L	10.26%
Weighted	ROE after deducting non-recurring gains and losses	N=C/L	9.30%

— 332 —

FINANCIAL INFORMATION OF JINKE PROPERTY

APPENDIX II

1. Computation process of basic earnings per share and diluted earnings per share

2. (1) Computation process of basic earnings per share

		Amount in the
Item	SN	current period
Net profit attributable to common shareholders [Note 1]	A	1,123,401,276.93
Non-recurring gains and losses	B	105,486,067.13
Net profit attributable to common shareholders after deducting	C=A-B	1,017,915,209.80
non-recurring gains and losses
Total shares at the beginning of the period	D	1,378,540,051.00
Number of shares increased due to conversion of public	E	2,757,080,102.00
reserve into share capital or dividend distribution
Number of shares increased due to new issuance or	F	—
debt-to-equity swap
Cumulative number of months from the month following the	G	—
month with net assets increased till the end of reporting
period
Number of shares decreased due to repurchase	H	—
Cumulative number of months from the month following the	I	—
month with net assets decreased till the end of reporting
period
Number of shares shrunk in the reporting period	J	—
Months of reporting period	K	12.00
Weighted average number of common shares issued externally	L=D+E+F�	4,135,620,153.00
	G/K-H �I/K-J
Basic earnings per share [Note 2]	M=A/L	0.27
Basic earnings per share after deducting non-recurring gains	N=C/L	0.25
and losses

• [Note 1] Net profit attributable to common shareholders is the amount of net profit attributable to owners of the parent company in the income statement after considering the impact of other equity instruments.

• [Note 2] According to the Interpretation No. 7 on the Accounting Standards for Business Enterprises ([2015] No. 19) issued by the Ministry of Finance on 4 November 2015, the numerator should deduct the cash dividend distributed to holders of restricted stocks which are expected to be unlocked in the future in the current period; and the denominator should not include the number of shares of restricted stocks.

— 333 —

FINANCIAL INFORMATION OF JINKE PROPERTY

APPENDIX II

(2) Computation process of diluted earnings per share

		Amount in the
Item	SN	current period
Net profit attributable to common shareholders	A	1,123,401,276.93
Effect of dilutive potential common shares on net profit	B	—
Net profit attributable to common shareholders after dilution	C=A-B	1,123,401,276.93
Non-recurring gains and losses	D	105,486,067.13
Net profit attributable to common shareholders after deducting	E=C-D	1,017,915,209.80
non-recurring gains and losses after dilution
Weighted average number of common shares issued externally	F	4,135,620,153.00
Weighted average of common shares increased from warrant,	G	—
stock option, convertible bonds, etc.
Weighted average number of common shares issued externally	H=F+G	4,135,620,153.00
after dilution
Diluted earnings per share	M=C/H	0.27
Diluted earnings per share after deducting non-recurring gains	N=E/H	0.25
and losses

— 334 —

FINANCIAL INFORMATION OF JINKE PROPERTY

APPENDIX II

AUDITED FINANCIAL STATEMENTS OF JINKE PROPERTY FOR THE YEAR ENDED 31 DECEMBER 2016

I. Audit report

Type of audit opinions Standard unqualified opinions Signing date of the audit report 28 March 2017 Name of auditing body Pan-China Certified Public Accountants (special general partnership) No. of audit report Tian Jian Shen No. 8-105 [2017] Name of CPA Yi Shouchuan, Song Jun

Audit Report

Tian Jian Shen No. 8-105 [2017]

All shareholders of Jinke Property Group Co., Ltd.: We have audited the attached financial statements of Jinke Property Group Co., Ltd. (hereinafter referred to as “Jinke Co., Ltd.”), including the consolidated and the parent company’s balance sheets as at 31 December 2016, the consolidated and the parent company’s income statements, consolidated and the parent company’s cash flow statements, consolidated and the parent company’s statements of changes in owners’ equity for the year of 2016 and notes to financial statements.

I. Responsibility of the management for the financial statements

Preparing and fairly presenting financial statements are responsibilities of the management of Jinke Co., Ltd. These responsibilities include:

• (1) preparing financial statements in accordance with Accounting Standards for Business Enterprises, which achieve fair presentation in the mean time; and

• (2) designing, implementing and maintaining necessary internal control to avoid material misstatement resulting from fraudulence or mistakes.

II. Responsibility of CPAs

Our responsibility is to provide audit opinions on the financial statements based on our audit. We conducted our audit pursuant to China’s Independent Auditing Standards. The standards contained thereof require that we shall abide by professional ethics code for CPAs of China, plan and perform the audit to obtain reasonable assurance about whether or not the financial statements are free from material misstatement.

— 335 —

APPENDIX II

FINANCIAL INFORMATION OF JINKE PROPERTY

Our audit work includes implementing the audit procedure to obtain audit evidence relating to the amounts and disclosure of the financial statements. The audit procedure selected depends on the judgment of the CPAs, including assessment of the risk of material misstatement resulting from fraudulence or mistakes. While engaging in risk evaluation, CPAs took into consideration the internal control related to preparing and fairly presenting financial statements, with the purpose of designing proper audit procedure. The audit also includes assessing the appropriateness of accounting principles used and the rationality of the accounting estimates made by the management, as well as evaluating the overall financial statement presentation.

We believe the audit evidence we obtained is adequate and appropriate and provides a basis for us to give our opinions.

III. Auditors’ Opinions

In our opinion, Jinke Co., Ltd.’s financial statements are, in all material respects, prepared in accordance with Accounting Standards for Business Enterprises, and fairly present the consolidated and parent company’s financial position of Jinke Co., Ltd. as at 31 December 2016 as well as the consolidated and parent company’s operation performance and cash flow in 2016.

Pan-China Certified Public Accountants (special general partnership)

Certified Public Accountant of China: Yi Shouchuan

Hangzhou, China

Certified Public Accountant of China: Song Jun 28 March 2017

— 336 —

FINANCIAL INFORMATION OF JINKE PROPERTY

APPENDIX II

II. Financial statement

Unit in notes to financial statement: RMB

1. Consolidated balance sheet

Prepared by: Jinke Property Group Co., Ltd.

Unit: RMB

		Balance at the
	Balance at the end	beginning of the
Item	of the period	period
Current assets:
Monetary fund	17,644,842,213.69	9,389,188,261.83
Settlement provision
Lendings
Financial assets measured at fair value with changes in
fair value included in profit or loss
Derivative financial assets
Notes receivable	4,923,290.00	50,000.00
Accounts receivable	829,286,610.93	729,045,821.34
Advance payments	3,631,059,813.74	1,009,262,108.49
Premiums receivable
Reinsurance accounts receivable
Reinsurance contract reserves receivable
Interests receivable
Dividends receivable
Other receivables	3,906,002,266.21	1,482,706,483.68
Financial assets held under resale agreements
Inventories	71,527,195,481.07	72,163,859,948.41
Assets classified as held for sale
Non-current assets maturing within one year
Other current assets	1,721,785,561.16	2,613,349,329.77
Total current assets	99,265,095,236.80	87,387,461,953.52
Non-current assets:
Issue of loans and advances
Available-for-sale financial assets	315,456,732.98	215,456,732.98
Held-to-maturity investment
Long-term receivables
Long-term equity investments	786,240,483.34	391,087,261.46
Investment properties	2,885,492,754.63	2,888,950,566.79
Fixed assets	2,666,413,793.03	2,528,455,846.44

— 337 —

FINANCIAL INFORMATION OF JINKE PROPERTY

APPENDIX II

		Balance at the
	Balance at the end	beginning of the
Item	of the period	period
Construction in progress	562,088,918.24	158,257,610.66
Project materials
Disposal of fixed assets
Production-type biological assets
Oil and gas assets
Intangible assets	68,284,176.45	59,755,242.20
Development expenses
Goodwill	496,972,159.42	496,293,398.50
Long-term expenses to be amortized	29,481,317.45	27,303,007.41
Deferred tax assets	1,612,398,385.59	1,329,775,079.23
Other non-current assets	561,240,183.78	70,000,000.00
Total non-current assets	9,984,068,904.91	8,165,334,745.67
Total assets	109,249,164,141.71	95,552,796,699.19
Short-term borrowings	1,526,000,000.00	1,881,600,000.00
Borrowings from the central bank
Deposits accepted and deposits from banks and other
financial institutions
Placements from banks and other financial institutions
Financial liabilities measured at fair value with changes
in fair value included in profit or loss
Derivative financial liabilities
Notes payable	35,863,721.87	1,317,213,982.92
Accounts payable	7,554,595,684.08	8,119,789,135.92
Advance receipts	26,274,066,032.86	26,584,971,159.41
Financial assets sold for repurchase
Fees and commissions payable
Remuneration payable to employees	511,758,552.16	286,398,577.70
Taxes payable	799,173,377.51	867,248,449.55
Interest payable	664,741,726.76	427,455,534.33
Dividends payable	31,116,666.00	28,384,920.68
Other payables	5,209,199,650.03	2,902,618,677.64
Reinsurance accounts payable
Insurance contract reserve
Funds from securities trading agency
Funds from securities underwriting agency
Liabilities classified as held for sale
Non-current liabilities maturing within one year	5,261,934,693.99	18,099,147,400.00
Other current liabilities

— 338 —

FINANCIAL INFORMATION OF JINKE PROPERTY

APPENDIX II

Balance at the Balance at the end beginning of the Item of the period period Other current liabilities Total current liabilities 47,868,450,105.26 60,514,827,838.15 Non-current liabilities: Long-term borrowings 18,507,910,000.00 13,294,059,999.99 Bonds payable 18,891,277,180.01 5,313,257,329.71 Including: Preferred shares Perpetual bonds Long-term payables 498,824,320.47 Long-term remuneration payable to employees Special payables Foreseeable liabilities Deferred earnings 110,724,644.43 79,965,496.62 Deferred tax liabilities 538,025,371.08 548,820,645.64 Other non-current liabilities 301,733,100.00 463,763,400.00 Total non-current liabilities 38,848,494,615.99 19,699,866,871.96 Total liabilities 86,716,944,721.25 80,214,694,710.11 Owners’ equity: Share capital 5,343,368,316.00 4,327,060,153.00 Other equity instruments 2,900,000,000.00 1,400,000,000.00 Including: Preferred shares Perpetual bonds 2,900,000,000.00 1,400,000,000.00 Capital reserves 4,033,337,375.93 580,341,350.91 Less: Treasury shares 450,585,850.00 618,351,200.00 Other consolidated revenue 620,250,211.75 620,872,917.24 Special reserves Surplus reserves 393,249,061.17 309,916,162.14 General risk reserves Undistributed profits 7,166,775,355.29 6,234,162,595.74 Total equity attributable to owners of the parent company 20,006,394,470.14 12,854,001,979.03 Minority interests 2,525,824,950.32 2,484,100,010.05 Total owners’ equity 22,532,219,420.46 15,338,101,989.08 Total liabilities and owners’ equity 109,249,164,141.71 95,552,796,699.19

Legal representative: Jiang Sihai Person in charge of accounting: Li Hua Officer in charge of accounting institution: Liu Shaojun

— 339 —

APPENDIX II

FINANCIAL INFORMATION OF JINKE PROPERTY

1. Balance sheet of parent company

Unit: RMB

		Balance at the
	Balance at the end	beginning of the
Item	of the period	period
Current assets:
Monetary fund	5,053,989,391.68	1,613,435,471.53
Financial assets measured at fair value with changes in
fair value included in profit or loss
Derivative financial assets
Notes receivable
Accounts receivable	8,196,331.89	13,670,506.54
Advance payments	1,347,651.42	601,813.66
Interests receivable
Dividends receivable	130,000,000.00	844,750,000.00
Other receivables	37,423,788,546.12	27,514,167,641.36
Inventories	329,285,059.16	308,024,653.26
Assets classified as held for sale
Non-current assets maturing within one year
Other current assets	5,156,080.03	5,028,257.18
Total current assets	42,951,763,060.30	30,299,678,343.53
Non-current assets:
Available-for-sale financial assets
Held-to-maturity investment
Long-term receivables
Long-term equity investments	14,651,854,637.75	12,783,889,169.44
Investment properties	1,346,630,314.58	1,378,538,005.59
Fixed assets	3,338,838.19	5,141,529.52
Construction in progress
Project materials
Disposal of fixed assets
Production-type biological assets
Oil and gas assets
Intangible assets	4,670,709.40	5,977,980.22
Development expenses
Goodwill
Long-term expenses to be amortized	2,632,022.16	5,106,512.99
Deferred tax assets	140,208,613.98	58,983,153.22
Other non-current assets	1,320,000,000.00	1,500,000,000.00
Total non-current assets	17,469,335,136.06	15,737,636,350.98
Total assets	60,421,098,196.36	46,037,314,694.51

— 340 —

FINANCIAL INFORMATION OF JINKE PROPERTY

APPENDIX II

		Balance at the
	Balance at the end	beginning of the
Item	of the period	period
Current liabilities:
Short-term borrowings	50,000,000.00	500,000,000.00
Financial liabilities measured at fair value with changes
in fair value included in profit or loss
Derivative financial liabilities
Notes payable
Accounts payable	35,415,378.48	46,847,079.67
Advance receipts	15,959,208.38	9,152,706.82
Remuneration payable to employees	94,424,101.26	41,331,937.83
Taxes payable	27,147,262.21	31,878,257.31
Interest payable	618,590,392.05	295,043,031.02
Dividends payable	29,849,999.33	4,472,222.22
Other payables	18,019,263,573.29	18,357,203,530.19
Liabilities classified as held for sale
Non-current liabilities maturing within one year	1,189,493,300.00	7,466,447,800.00
Other current liabilities
Total current liabilities	20,080,143,215.00	26,752,376,565.06
Non-current liabilities:
Long-term borrowings	3,740,000,000.00	2,742,000,000.00
Bonds payable	18,891,277,180.01	5,313,257,329.71
Including: Preferred shares
Perpetual bonds
Long-term payables
Long-term remuneration payable to employees
Special payables
Foreseeable liabilities
Deferred earnings	821,823.21	1,061,134.58
Deferred tax liabilities	284,095,207.36	281,129,081.16
Other non-current liabilities	301,733,100.00	463,763,400.00
Total non-current liabilities	23,217,927,310.58	8,801,210,945.45
Total liabilities	43,298,070,525.58	35,553,587,510.51
Share capital	5,343,368,316.00	4,327,060,153.00
Other equity instruments	2,900,000,000.00	1,400,000,000.00
Including: Preferred shares
Perpetual bonds	2,900,000,000.00	1,400,000,000.00
Capital reserves	6,280,181,832.44	2,778,969,175.28
Less: Treasury shares	450,585,850.00	618,351,200.00
Other consolidated revenue	21,261,250.12	21,261,250.12

— 341 —

FINANCIAL INFORMATION OF JINKE PROPERTY

APPENDIX II

Balance at the Balance at the end beginning of the Item of the period period Owner’s equity: Special reserves Surplus reserves 522,817,856.03 439,484,957.00 Undistributed profits 2,505,984,266.19 2,135,302,848.60 Total owners’ equity 17,123,027,670.78 10,483,727,184.00 Total liabilities and owners’ equity 60,421,098,196.36 46,037,314,694.51

3. Consolidated income statement

Unit: RMB

		Amount incurred in	Amount incurred
Item		the current period	in the last period
I.	Total operating revenue	32,235,441,627.03	19,398,573,320.90
	Including: Operating revenue	32,235,441,627.03	19,398,573,320.90
	Interest income
	Earned premium
	Fee and commission income
II.	Total operating cost	29,943,639,347.13	17,731,835,123.78
	Including: Operating cost	25,549,603,212.82	13,887,003,656.98
	Interest expenses
	Fee and commission expense
	Surrender value
	Net amount of compensation payout
	Net amount of reserves for insurance contract
	Policy dividend payment
	Reinsurance cost
	Taxes and surcharges	1,864,147,528.01	1,479,769,073.29
	Sales expenses	980,862,344.26	693,511,364.21
	Management expenses	1,247,074,213.53	922,634,484.07
	Financial expenses	305,433,886.51	268,251,960.03
	Assets impairment loss	-3,481,838.00	480,664,585.20
	Add: Revenue from change in fair value (“-” for
	loss)	63,367,452.14	39,863,547.99
	Return on investment (“-” for loss)	-98,720,620.59	36,838,401.09
	Including: Return on investment in associated
	enterprises and joint ventures	-98,742,045.25	-5,152,881.59

— 342 —

APPENDIX II

FINANCIAL INFORMATION OF JINKE PROPERTY

		Amount incurred in	Amount incurred
Item		the current period	in the last period
	Exchange revenue (“-” for loss)
III.	Business profit (“-” for loss)	2,256,449,111.45	1,743,440,146.20
	Add: Non-operating revenue	92,808,206.68	99,001,510.70
	Including: Gain from disposal of non-current
	assets	3,704,371.48	778,491.46
	Less: Non-operating expense	117,789,821.58	57,761,507.63
	Including: Loss from disposal of non-current
	assets	880,703.56	428,538.06
IV.	Total profit (“-” for total loss)	2,231,467,496.55	1,784,680,149.27
	Less: Income tax expense	441,118,522.80	551,034,068.30
V.	Net profit (“-” for net loss)	1,790,348,973.75	1,233,646,080.97
	Net profit attributable to owners of the parent
	company	1,395,260,332.23	1,266,959,610.26
	Gains/losses of minority shareholders	395,088,641.52	-33,313,529.29
VI.	After-tax net amount of other consolidated revenue	-1,220,991.15	26,367,941.54
	attributable to owners of the parent company	-622,705.49	26,367,941.54
(I)	Other consolidated revenue that cannot be
	reclassified into profits/losses
1.	Changes arising from re-measurement of net
	liabilities or net assets of defined benefit plan
2.	Share in other consolidated revemie of the investee
	that cannot be reclassified into profits/losses under
	the equity method
(II)	Other consolidated revenue that will be reclassified
	into profits/losses	-622,705.49	26,367,941.54
1.	Share in other consolidated revenue of the investee
	that will be reclassified into profits/losses under the
	equity method
2.	Gains/losses from change in fair value of
	available-for-sale financial assets
3.	Held-to-maturity investment reclassified as
	profit/loss from available-for-sale financial assets
4.	Operational factors of cash flow hedging
	gains/losses
5.	Translation difference of foreign-currency financial
	statements
6.	Others	-622,705.49	26,367,941.54
After-tax net amount of other consolidated revenue
attributable to minority shareholders		-598,285.66

— 343 —

APPENDIX II

FINANCIAL INFORMATION OF JINKE PROPERTY

		Amount incurred in	Amount incurred
Item		the current period	in the last period
VII.	Total consolidated revenue	1,789,127,982.60	1,260,014,022.51
	Total consolidated revenue attributable to owners of
	the parent company	1,394,637,626.74	1,293,327,551.80
	Total consolidated revenue attributable to minority
	shareholders	394,490,355.86	-33,313,529.29
VIII.	Earnings per share:
(I)	Basic earnings per share	0.28	0.27
(II)	Diluted earnings per share	0.28	0.27

For merger of enterprises under the same control in the current period, net profit realized by the merged party before merger was RMB0.00; net profit realized by the merged party in the last period was RMB0.00.

Legal representative: Jiang Sihai Person in charge of accounting: Li Hua Officer in charge of accounting institution: Liu Shaojun

4. Income statement of the parent company

Unit: RMB

		Amount incurred in	Amount incurred
Item		the current period	in the last period
I.	Operating revenue	379,781,355.98	387,060,732.72
	Less: Operating cost	20,507,119.74	49,135,425.60
	Taxes and surcharges	3,443,233.47	15,380,923.76
	Sales expenses	3,191,356.50	3,340,558.71
	Management expenses	402,537,155.72	242,953,839.96
	Financial expenses	61,495,366.96	-51,477,228.12
	Assets impairment loss	17,525,194.46	11,535,309.01
	Add: Revenue from change in fair value (“-” for
	loss)	9,193,220.99	4,679,402.80
	Return on investment (“-” for loss)	878,360,451.85	1,340,170,474.42
	Including: Return on investment in associated
	enterprises and joint ventures	3,310,306.17	5,420,474.42
II.	Business profit (“-” for loss)	758,635,601.97	1,461,041,781.02
	Add: Non-operating revenue	17,441,654.00	20,087,632.88
	Including: Gain from disposal of non-current
	assets
	Less: Non-operating expense	1,425,360.64	8,962,051.61
	Including: Loss from disposal of non-current
	assets	108,159.30

— 344 —

APPENDIX II

FINANCIAL INFORMATION OF JINKE PROPERTY

		Amount incurred in	Amount incurred
Item		the current period	in the last period
III.	Total profit (“-” for total loss)	774,651,895.33	1,472,167,362.29
	Less: Income tax expense	-58,677,094.94	-9,308,347.52
IV.	Net profit (“-” for net loss)	833,328,990.27	1,481,475,709.81
V.	After-tax net amount of other consolidated revenue
(I)	Other consolidated revenue that cannot be
	reclassified into profits/losses
1.	Changes arising from re-measurement of net
	liabilities or net assets of defined benefit plan
2.	Share in other consolidated revenue of the investee
	that cannot be reclassified into profits/losses under
	the equity method
(II)	Other consolidated revenue that will be reclassified
	into profits/losses
1.	Share in other consolidated revenue of the investee
	that will be reclassified into profits/losses under the
	equity method
2.	Gains/losses from change in fair value of
	available-for-sale financial assets
3.	Held-to-maturity investment reclassified as
	profit/loss from available-for-sale financial assets
4.	Operational factors of cash flow hedging
	gains/losses
5.	Translation difference of foreign-currency financial
	statements
6.	Others
VI.	Total consolidated revenue	833,328,990.27	1,481,475,709.81
VII.	Earnings per share:
(I)	Basic earnings per share
(II)	Diluted earnings per share

— 345 —

FINANCIAL INFORMATION OF JINKE PROPERTY

APPENDIX II

1. Consolidated cash flow statement

Unit: RMB

		Amount incurred in	Amount incurred in
Item		the current period	the last period
I.	Cash flows from operating activities:
	Cash received from sales of goods and provision
	of labor service	32,945,725,625.97	24,188,786,283.31
	Net increase in deposits from customers and
	banks and other financial institutions
	Net increase in borrowings from the central bank
	Net increase in placements from other financial
	institutions
	Premiums received from original insurance
	contracts
	Net cash received from reinsurance business
	Net increase in deposits from policyholders and
	investment funds
	Net increase from disposal of financial assets
	measured at fair value with changes in fair
	value included in profit or loss
	Cash received from interests, fees and
	commissions
	Net increase in placements from banks and other
	financial institutions
	Net increase in repurchase business capital
	Tax refund received
	Other cash received relating to operating
	activities	4,670,436,395.26	2,960,720,518.92
Subtotal of cash inflows from operating activities		37,616,162,021.23	27,149,506,802.23
	Cash paid for purchase of goods and acceptance of
	labor service	21,760,832,467.29	19,162,203,614.79
	Net increase in loans and advances to customers
	Net increase in deposits with central bank and other
	financial institutions
	Cash paid for original insurance contract claims
	Cash paid for interests, fees and commissions
	Cash paid for policy dividends
	Cash paid to and for employees	1,585,432,607.30	1,377,187,934.96
	Taxes paid	2,657,453,795.84	2,457,745,352.70
	Other cash paid relating to operating activities	5,368,321,670.16	3,740,099,872.07
Subtotal of cash outflows for operating activities		31,372,040,540.59	26,737,236,774.52
Net cash flows from operating activities		6,244,121,480.64	412,270,027.71

— 346 —

APPENDIX II

FINANCIAL INFORMATION OF JINKE PROPERTY

		Amount incurred in	Amount incurred in
Item		the current period	the last period
II.	Cash flows from investing activities:
	Cash received from taking back investment	59,900,000.00
	Cash received from return on investment	5,536,157.53	7,169,152.73
	Net cash received from disposal of fixed assets,
	intangible assets and other long-term assets	8,158,462.19	120,758.38
	Net cash received from disposal of subsidiaries
	and other operating units
	Other cash received relating to investing
	activities
	Subtotal of cash inflows from investing activities	13,694,619.72	67,189,911.11
	Cash paid for purchase and construction of fixed
	assets, intangible assets and other long-term
	assets	1,678,750,484.09	326,675,100.64
	Cash paid for investment	1,090,650,183.78	300,000,000.00
	Net increase in pledge loans
	Net cash paid for acquisition of subsidiaries and
	other operating units	634,611,363.98	405,738,667.01
	Other cash paid relating to investing activities	2,260,671,356.07
	Subtotal of cash outflows for investing activities	5,664,683,387.92	1,032,413,767.65
	Net cash flows from investing activities	-5,650,988,768.20	-965,223,856.54
III.	Cash flows from financing activities:
	Cash received from introducing investment	4,534,027,958.01	845,751,200.00
	Including: Cash received by subsidiaries from
	investments of minority shareholders	64,954,000.00	227,400,000.00
	Cash received for obtaining loans	31,096,950,000.00	17,797,100,000.00
	Cash received from issue of bonds		5,330,100,000.00
	Other cash received relating to financing
	activities	4,050,442,975.81	7,649,268,672.03
Subtotal of cash inflows from financing activities		39,681,420,933.82	31,622,219,872.03
Cash paid for repayment of debts		25,530,798,206.00	18,316,080,000.01
Cash paid for distribution of dividend and profit or
	repayment of interest	3,477,668,315.69	3,554,807,370.95
Including: Dividend and profit paid by subsidiaries
	to minority shareholders	214,712,698.46	85,740,000.00
Other cash paid relating to financing activities		1,974,404,744.45	7,036,357,161.79
Subtotal of cash outflows for financing activities		30,982,871,266.14	28,907,244,532.75
Net	cash flows from financing activities	8,698,549,667.68	2,714,975,339.28
IV.	Effect of exchange rate change on cash and cash
	equivalents
V.	Net increase in cash and cash equivalents	9,291,682,380.12	2,162,021,510.45
	Add: Opening balance of cash and cash
	equivalents	7,967,303,772.09	5,805,282,261.64
VI.	Ending balance of cash and cash equivalents	17,258,986,152.21	7,967,303,772.09

— 347 —

FINANCIAL INFORMATION OF JINKE PROPERTY

APPENDIX II

6. Cash flow statement of the parent company

Unit: RMB

		Amount incurred in	Amount incurred
Item		the current period	in the last period
I.	Cash flows from operating activities:
	Cash received from sales of goods and provision of
	labor service	279,245,535.56	380,580,415.27
	Tax refund received
	Other cash received relating to operating activities	64,232,962,825.34	35,026,490,223.04
	Subtotal of cash inflows from operating activities	64,512,208,360.90	35,407,070,638.31
	Cash paid for purchase of goods and acceptance
	of labor service	19,587,795.96	52,578,854.14
	Cash paid to and for employees	162,591,429.17	174,759,553.97
	Taxes paid	24,570,343.25	57,947,882.45
	Other cash paid relating to operating activities	70,874,122,038.38	40,009,856,491.16
	Subtotal of cash outflows for operating activities	71,080,871,606.76	40,295,142,781.72
	Net cash flows from operating activities	-6,568,663,245.86	-4,888,072,143.41
II.	Cash flows from investing activities:
	Cash received from taking back investment
	Cash received from return on investment	1,624,732,941.55	1,375,611,952.43
	Net cash received from disposal of fixed assets,
	intangible assets and other long-term assets	45,342.56
	Net cash received from disposal of subsidiaries and
	other operating units
	Other cash received relating to investing activities
	Subtotal of cash inflows from investing activities	1,624,778,284.11	1,375,611,952.43
	Cash paid for purchase and construction of fixed
	assets, intangible assets and other long-term
	assets	15,179.49	10,256.41
	Cash paid for investment	4,109,587,958.01	1,313,000,000.00
	Net cash paid for acquisition of subsidiaries and
	other operating units
	Other cash paid relating to investing activities	1,500,000,000.00
Subtotal of cash outflows for investing activities		4,109,603,137.50	2,813,010,256.41
Net cash flows from investing activities		-2,484,824,853.39	-1,437,398,303.98
III.	Cash flows from financing activities:
	Cash received from introducing investment	4,469,073,958.01	618,351,200.00
	Cash received for obtaining loans	15,848,020,000.00	3,529,000,000.00
	Cash received from issue of bonds		5,330,100,000.00
	Other cash received relating to financing activities	2,065,783,868.77	1,411,457,500.00

— 348 —

FINANCIAL INFORMATION OF JINKE PROPERTY

APPENDIX II

Item

• Subtotal of cash inflows from financing activities Cash paid for repayment of debts

• Cash paid for distribution of dividend and profit or repayment of interest

• Other cash paid relating to financing activities Subtotal of cash outflows for financing activities Net cash flows from financing activities

• Amount incurred in Amount incurred the current period in the last period

  • 22,382,877,826.78 10,888,908,700.00 7,851,860,000.00 2,371,550,000.00

  • 1,412,144,656.40 1,365,929,232.18 624,831,150.98 29,450,000.00

  • 9,888,835,807.38 3,766,929,232.18

  • 12,494,042,019.40 7,121,979,467.82

• IV. Effect of exchange rate change on cash and cash equivalents

• V. Net increase in cash and cash equivalents Add: Opening balance of cash and cash equivalents

• VI. Ending balance of cash and cash equivalents

• 3,440,553,920.15 796,509,020.43 1,613,435,471.53 816,926,451.10 5,053,989,391.68 1,613,435,471.53

— 349 —

APPENDIX II

FINANCIAL INFORMATION OF JINKE PROPERTY

Unit: RMB				Minority Total owners’	interests equity															2,484,100,010.05 15,338,101,989.08			41,724,940.27 7,194,117,431.38		394,490,355.86 1,789,127,982.60		-160,698,748.92 5,966,838,789.10			592,271,666.00 5,034,359,624.01			1,700,000,000.00
				Undistributed	profits															6,234,162,595.74			932,612,759.55		1,395,260,332.23
				General risk	reserves
					Special reserves Surplus reserves		2,484,100,010.05 15,338,101,989.08													309,916,162.14			83,332,899.03
	Current period	Equity attributable to owners of the parent company	Other	Less: Treasury consolidated	Capital reserves shares revenue		620,872,917.24 309,916,162.14 6,234,162,595.74													580,341,350.91 618,351,200.00 620,872,917.24			3,452,996,025.02 -167,765,350.00 -622,705.49		-622,705.49		3,452,996,025.02 -158,233,350.00			3,438,365,795.01 26,986,000.00
					Others		618,351,200.00
				Other equity instruments	Preferred shares Perpetual bonds		1,400,000,000.00 580,341,350.91													1,400,000,000.00			1,500,000,000.00				1,500,000,000.00						1,700,000,000.00
					Share capital		4,327,060,153.00													4,327,060,153.00			1,016,308,163.00				1,016,308,163.00			1,030,708,163.00
						Ending balance of	last year	Add: Changes in		accounting	policies	Correction of	previous errors	Merger of	enterprises	under the same	control	Others	Opening balance of	the current year	Increase/decrease of	the current period	(“-” for decrease)	Total consolidated	revenue	Owners’ capital	injected and reduced	Ordinary shares	invested by	shareholders	Capital invested by	holders of other	equity instruments
					Item	I.													II.		III.			(I)		(II)		1.			2.

— 350 —

APPENDIX II

FINANCIAL INFORMATION OF JINKE PROPERTY

			Minority Total owners’	interests equity				94,278,862.15	-752,970,414.92 -861,799,697.06	-192,066,666.67 -561,849,340.32								-192,066,666.67 -561,849,340.32																						2,525,824,950.32 22,532,219,420.46
			Undistributed	profits						-462,647,572.68		-83,332,899.03						-379,314,673.65																						7,166,775,355.29
			General risk	reserves
				Surplus reserves						83,332,899.03		83,332,899.03																												393,249,061.17
				Special reserves
Current period	Equity attributable to owners of the parent company	Other	Less: Treasury consolidated	Capital reserves shares revenue				94,278,862.15	-79,648,632.14 -185,219,350.00	-9,532,000.00								-9,532,000.00																						4,033,337,375.93 450,585,850.00 620,250,211.75
				Others
			Other equity instruments	Preferred shares Perpetual bonds					-200,000,000.00																															2,900,000,000.00
				Share capital					-14,400,000.00																															5,343,368,316.00
					Amounts of	share-based	payments included	in owners’ equity	Others	Profit distribution	Withdrawal of	surplus reserves	Withdrawal of	general risk	provisions	Distribution to	owners (or	shareholders)	Others	Internal carryover	of owners’ equity	Transfer of capital	reserves into paid-in	capital (or share	capital)	Transfer of surplus	reserves into paid-in	capital (or share	capital)	Surplus reserves for	making up losses	Others	Special reserves	Withdrawal in the	current period	Use in the current	period	Others	Ending balance of	the current period
				Item	3.				4.	(III)	1.		2.			3.			4.	(IV)		1.				2.				3.		4.	(V)	1.		2.		(VI)	IV.

— 351 —

APPENDIX II

FINANCIAL INFORMATION OF JINKE PROPERTY

Unit: RMB				Total owners’	equity		13,166,210,320.44													13,166,210,320.44				2,171,891,668.64		1,260,014,022.51			1,347,956,987.11			302,956,936.54			1,400,000,000.00				7,097,450.57
				Minority	interests		2,636,263,997.06													2,636,263,997.06				-152,163,987.01		-33,313,529.29			-33,110,457.72			302,956,936.54
				Undistributed	profits		6,292,813,928.44													6,292,813,928.44				-58,651,332.70		1,266,959,610.26
				General risk	reserves
					Special reserves Surplus reserves		161,768,591.16													161,768,591.16				148,147,570.98
	Last period	Equity attributable to owners of the parent company	Other	Less: Treasury consolidated	Capital reserves shares revenue		2,102,318,777.08 594,504,975.70													2,102,318,777.08 594,504,975.70				-1,521,977,426.17 618,351,200.00 26,367,941.54		26,367,941.54			407,978,644.83 618,351,200.00			426,911,200.00 618,351,200.00							7,097,450.57
					Others
				Other equity instruments	Preferred shares Perpetual bonds																			1,400,000,000.00					1,400,000,000.00						1,400,000,000.00
					Share capital		1,378,540,051.00													1,378,540,051.00				2,948,520,102.00					191,440,000.00			191,440,000.00
						Ending balance of	last year	Add: Changes in		accounting	policies	Correction of	previous errors	Merger of	enterprises	under the same	control	Others	Opening balance	of the current year	Increase/decrease	of the current	period (“-” for	decrease)	Total consolidated	revenue	Owners’ capital	injected and	reduced	Ordinary shares	invested by	shareholders	Capital invested by	holders of other	equity instruments	Amounts of	share-based	payments included	in owners’ equity
					Item	I.													II.		III.				(I)		(II)			1.			2.			3.

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FINANCIAL INFORMATION OF JINKE PROPERTY

			Total owners’	equity	-362,097,400.00	-436,079,340.98								-436,079,340.98																							15,338,101,989.08
			Minority	interests	-336,067,394.26	-85,740,000.00								-85,740,000.00																							2,484,100,010.05
			Undistributed	profits		-498,486,911.96		-148,147,570.98						-350,339,340.98			-827,124,031.00												-827,124,031.00								6,234,162,595.74
			General risk	reserves
				Special reserves Surplus reserves		148,147,570.98		148,147,570.98																													309,916,162.14
Last period	Equity attributable to owners of the parent company	Other	Less: Treasury consolidated	Capital reserves shares revenue	-26,030,005.74												-1,929,956,071.00				-1,929,956,071.00																580,341,350.91 618,351,200.00 620,872,917.24
				Others
			Other equity instruments	Preferred shares Perpetual bonds																																	1,400,000,000.00
				Share capital													2,757,080,102.00				1,929,956,071.00								827,124,031.00								4,327,060,153.00
					Others	Profit distribution	Withdrawal of	surplus reserves	Withdrawal of	general risk	provisions	Distribution to	owners (or	shareholders)	Others	Internal carryover	of owners’ equity	Transfer of capital	reserves into	paid-in capital (or	share capital)	Transfer of surplus	reserves into	paid-in capital (or	share capital)	Surplus reserves	for making up	losses	Others	Special reserves	Withdrawal in the	current period	Use in the current	period	Others	Ending balance of	the current period
				Item	4.	(III)	1.		2.			3.			4.	(IV)		1.				2.				3.			4.	(V)	1.		2.		(VI)	IV.

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FINANCIAL INFORMATION OF JINKE PROPERTY

	Unit: RMB			Total owners’	equity		10,483,727,184.00									10,483,727,184.00				6,639,300,486.78		833,328,990.27		6,175,754,170.16			4,442,087,958.01			1,700,000,000.00					94,278,862.15	-60,612,650.00
				Undistributed	profits		2,135,302,848.60									2,135,302,848.60				370,681,417.59		833,328,990.27
					Surplus reserves		439,484,957.00									439,484,957.00				83,332,899.03
					Special reserves
			Other	consolidated	revenue		21,261,250.12									21,261,250.12
		Current period		Less: Treasury	shares		618,351,200.00									618,351,200.00				-167,765,350.00				-158,233,350.00			26,986,000.00									-185,219,350.00
					Capital reserves		2,778,969,175.28									2,778,969,175.28				3,501,212,657.16				3,501,212,657.16			3,438,365,795.01								94,278,862.15	-31,432,000.00
					Others
				Other equity instruments	Preferred shares Perpetual bonds		1,400,000,000.00									1,400,000,000.00				1,500,000,000.00				1,500,000,000.00						1,700,000,000.00						-200,000,000.00
Amount in the current period					Item Share capital	I. Ending balance of last	year 4,327,060,153.00	Add: Changes in		accounting	policies	Correction of previous	errors	Others	II. Opening balance of	the current year 4,327,060,153.00	III. Increase/decrease of	the current period (“-”		for decrease) 1,016,308,163.00	(I) Total consolidated	revenue	(II) Owners’ capital	injected and reduced 1,016,308,163.00	1. Ordinary shares	invested by	shareholders 1,030,708,163.00	2. Capital invested by	holders of other equity	instruments	3. Amounts of	share-based payments		included in owners’	equity	4. Others -14,400,000.00

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APPENDIX II

FINANCIAL INFORMATION OF JINKE PROPERTY

		Total owners’	equity	-369,782,673.65				-369,782,673.65																						17,123,027,670.78
		Undistributed	profits	-462,647,572.68		-83,332,899.03		-379,314,673.65																						2,505,984,266.19
			Surplus reserves	83,332,899.03		83,332,899.03																								522,817,856.03
			Special reserves
	Other	consolidated	revenue																											21,261,250.12
Current period		Less: Treasury	shares	-9,532,000.00				-9,532,000.00																						450,585,850.00
			Capital reserves																											6,280,181,832.44
			Others
		Other equity instruments	Preferred shares Perpetual bonds																											2,900,000,000.00
			Share capital																											5,343,368,316.00
				Profit distribution	Withdrawal of surplus	reserves	Distribution to owners	(or shareholders)	Others	Internal carryover of	owners’ equity	Transfer of capital	reserves into paid-in	capital (or share	capital)	Transfer of surplus	reserves into paid-in	capital (or share	capital)	Surplus reserves for	making up losses	Others	Special reserves	Withdrawal in the	current period	Use in the current	period	Others	Ending balance of the	current period
			Item	(III)	1.		2.		3.	(IV)		1.				2.				3.		4.	(V)	1.		2.		(VI)	IV.

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APPENDIX II

FINANCIAL INFORMATION OF JINKE PROPERTY

		Total owners’	equity		7,945,493,364.60									7,945,493,364.60				2,538,233,819.40		1,481,475,709.81		1,407,097,450.57						1,400,000,000.00						7,097,450.57	-350,339,340.98				-350,339,340.98
		Undistributed	profits		1,979,438,081.75									1,979,438,081.75				155,864,766.85		1,481,475,709.81															-498,486,911.96		-148,147,570.98		-350,339,340.98
			Surplus reserves		291,337,386.02									291,337,386.02				148,147,570.98																	148,147,570.98		148,147,570.98
			Special reserves
	Other	consolidated	revenue		21,261,250.12									21,261,250.12				618,351,200.00
Last period		Less: Treasury	shares																			618,351,200.00			618,351,200.00
			Capital reserves		4,274,916,595.71									4,274,916,595.71				-1,495,947,420.43				434,008,650.57			426,911,200.00									7,097,450.57
			Others
		Other equity instruments	Preferred shares Perpetual bonds															1,400,000,000.00				1,400,000,000.00						1,400,000,000.00
			Share capital		1,378,540,051.00									1,378,540,051.00				2,948,520,102.00				191,440,000.00			191,440,000.00
				Ending balance of last	year	Add: Changes in		accounting	policies	Correction of previous	errors	Others	Opening balance of	the current year	Increase/decrease of	the current period (“-”		for decrease)	Total consolidated	revenue	Owners’ capital	injected and reduced	Ordinary shares	invested by	shareholders	Capital invested by	holders of other equity	instruments	Amounts of	share-based payments		included in owners’	equity	Others	Profit distribution	Withdrawal of surplus	reserves	Distribution to owners	(or shareholders)
			項目	I.									II.		III.				(I)		(II)		1.			2.			3.					4.	(III)	1.		2.

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FINANCIAL INFORMATION OF JINKE PROPERTY

==> picture [289 x 643] intentionally omitted <==

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

owners’ equity
Total
10,483,727,184.00
Undistributed profits -827,124,031.00 -827,124,031.00 2,135,302,848.60
reserves 439,484,957.00
Surplus
reserves
Special
Other consolidated revenue 21,261,250.12
Treasury shares
period
Last Less: 618,351,200.00
reserves
Capital -1,929,956,071.00 -1,929,956,071.00 2,778,969,175.28
Others
bonds
instruments
equity Perpetual 1,400,000,000.00
Other
shares
Preferred
capital
Share
2,757,080,102.00 1,929,956,071.00 827,124,031.00 4,327,060,153.00
of for the theof
paid-in paid-in
capital share surplus share losses in current
carryover equity of into (or of into (or reserves up reserves period the balance period
Others Internal owners’ Transfer reserves capital capital) Transfer reserves capital capital) Surplus making Others Special Withdrawal current inUse period Others Ending current
項目 3. (IV) 1. 2. 3. 4. (V) 1. 2. (VI) IV.
----- End of picture text -----

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FINANCIAL INFORMATION OF JINKE PROPERTY

APPENDIX II

Notes to Financial Statements of Jinke Property Group Co., Ltd.

2016

Unit: RMB

I. General information about the Company

Formerly Chongqing Dong Yuan Industry Development Co., Ltd. (formerly known as Chongqing Dong Yuan Steel Co., Ltd.), Jinke Property Group Co., Ltd. (hereinafter referred to as the Company) was established upon restructuring from the former Forth Iron and Steel Plant of Chongqing Iron and Steel Company as approved by Chongqing Municipal People’s Government in Doc. Chong Fu Fa (1986) No. 290 and was registered with Chongqing Administration for Industry and Commerce on 29 March 1994, with its headquarters in Jiangbei District, Chongqing. The Company now holds the business license with unified social credibility code: 91500000202893468X, its registered capital is RMB5,343,368,316.00, and the total shares are 5,343,368,316 (with a par value of RMB1 each), including 1,669,651,292 tradable shares with sale limitations and 3,673,717,024 tradable shares without sale limitations.

As a real estate developer, the Company mainly engages in real estate development, property management, installation of mechanical and electrical equipment (the abovementioned operating activities should be carried out with qualification certificate); sales of buildings, decorative materials and chemicals (excluding hazardous chemicals) and hardware; rental of self-owned houses; corporate management consulting service, imports & exports of goods and technologies (for items prohibited by laws and regulations, relevant operating activities should not be carried out; for items restricted by laws and regulations, relevant operating activities may be carried out only after relevant license or approval is obtained). Main products or labor services provided include sales of real estate, wind power investment and development, property management, hotel operation, landscaping engineering, doors & windows engineering, decoration engineering, and sales of materials.

The Financial Statements were approved to be disclosed to the public at the 43rd meeting of the 9th Board of Directors of the Company on 28 March 2017. The Company incorporated 166 subsidiaries including Chongqing Jinke Real Estate Development Co., Ltd., Chongqing Jinke Junyao Real Estate Development Co., Ltd., Jinan Jinke Xicheng Real Estate Develoment Co., Ltd. and Anhui Xihu Xincheng Real Estate Co., Ltd. into the scope of the consolidated financial statements for the current period, with details set out in the change in the consolidation scope and description of interests in other entities in the Notes to the Financial Statements.

II. Basis for preparation of the financial statements

(I) Preparation basis

The Company’s financial statements are prepared on the going-concern basis.

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FINANCIAL INFORMATION OF JINKE PROPERTY

APPENDIX II

(II) Evaluation of going-concern ability

The Company is not involved in any events or conditions that may cast significant doubt about the going-concern assumptions for 12 months after the end of the reporting period.

III. Critical accounting policies and accounting estimates

Important notice: The Company has formulated specific accounting policies and accounting estimates for transations or events including withdrawl of provision for bad debts of accounts receivable, depreciation of fixed asets, amortization of intangingle assets and revenue recognition according to actual production and operation characteristics.

(I) Statement of compliance with the Accounting Standards for Business Enterprises

The financial statements prepared by the Company comply with the Accounting Standards for Business Enterprises and give a true and complete view of the financial position, operating results and cash flow of the Company.

(II) Accounting period

The Company takes the Gregorian calendar year as the fiscal year, i.e. from 1 January to 31 December.

(III) Operation cycle

The Company mainly develops real estate products for sale and rental, and its operation cycle is usually from land purchase to completion and sale or rental of developed products and recovery of cash or cash equivalents, usually longer than 12 months.

(IV) Recording currency

The Company uses Renminbi as the recording currency.

(V) Accounting for merger of enterprises under and not under the same control

1. Accounting for merger of enterprises under the same control

The assets and liabilities acquired by the Company through merger with other enterprise are measured as per the book value of the merged party in the consolidated financial statements of the ultimate controller on the date of merger. The Company adjusts the capital reserve based on the difference between the share of the book value of the owners’ equity of the merged party in the consolidated financial statements of the ultimate controller and the book value of the paid consideration for merger or the aggregate book value of shares issued; in case of capital reserve insufficient for writedown, the retained earnings will be adjusted.

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APPENDIX II

FINANCIAL INFORMATION OF JINKE PROPERTY

1. Accounting for merger of enterprises not under the same control

The difference of the merger cost of the Company above the share of the fair value of identifiable net assets of the acquired party obtained through merger on the date of acquisition is recognized as goodwill; in case the merger cost of the Company is below the share of the fair value of identifiable net assets of the acquired party obtained through merger, the measurement of the fair value of various obtained identifiable assets, liabilities and contingent liabilities of the acquired party and the merger cost should be reviewed first, and if the merger cost is still lower than the share of the fair value of identifiable net assets of the acquired party obtained through merger after review, the difference is included in profit or loss.

(VI) Preparation method of consolidated financial statements

The parent company incorporates all subsidiaries under its control into the consolidation scope of the consolidated financial statements. Based on the financial statements of the parent company and subsidiaries thereof, the consolidated financial statements are prepared by the parent company according to other relevant data and the Accounting Standards for Business Enterprises No. 33 — Consolidated Financial Statements .

(VII) Classification of joint arrangement and accounting for joint operation

1. Joint arrangement is classified as either a joint operation or a joint venture.

2. When the Company is a joint operator, the following items relating to the interests in the joint operation are recognized:

3. (1) Recognize the assets held separately, as well as the assets held jointly as per the shares;

4. (2) Recognize the liabilities assumed separately, as well as liabilities shared commonly as per the shares;

5. (3) Recognize the revenue from sales of shares of the joint operation held by the Company;

6. (4) Recognize the revenue from sales of assets of the joint operation as per the shares held by the Company;

7. (5) Recognize the expenses incurred separately, as well as expenses incurred to the joint operation as per the shares held by the Company.

(VIII) Standards for determining cash and cash equivalents

Cash stated in the cash flow statement refers to cash on hand and deposits that can be readily withdrawn on demand. Cash equivalent refers to investment that is short in term, highly mobile, easily convertible into given amount of cash and subject to an insignificant risk of change in value.

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FINANCIAL INFORMATION OF JINKE PROPERTY

APPENDIX II

• (IX) Translation of foreign currency businesses and foreign currency financial statements

• Translation of foreign currency businesses

At the time of initial recognition, foreign currency transactions are translated into RMB amount at the spot exchange rate on the transaction date. On the balance sheet date, foreign currency monetary items are translated at the spot exchange rate on that date, and the exchange difference arising from different exchange rates is included in profit or loss except the exchange difference arising from the specific-purpose foreign currency loan principals and interests relating to setup of assets meeting the capitalization conditions; foreign currency non-monetary items measured at historical cost are translated at the spot exchange rate on the transaction date, without changing its RMB amount; foreign currency non-monetary items measured at fair value are translated at the spot exchange rate on the date of determination of fair value, with the difference recognized in profit or loss or other consolidated revenue.

1. Translation of foreign currency financial statements

The assets and liabilities in the balance sheet are translated at the spot exchange rate on the balance sheet date; the owners’ equity excluding “undistributed profit” is translated at the spot exchange rate on the transaction date; and the revenues and expenses in the income statement are translated at the exchange rate approximate to the spot exchange rate on the transaction date. The aforesaid translation differences in foreign currency financial statements are stated as other consolidated revenues.

(X) Financial instruments

1. Classification of financial assets and financial liabilities

At the time of initial recognition, financial assets are classified into financial assets measured at fair value with changes in fair value included in profit or loss(including tradable financial assets and financial assets specified to be measured at fair value with changes in fair value included in profit or loss at the time of initial recognition), held-to-maturity investments, loans and receivables, and available-for-sale financial assets.

At the time of initial recognition, financial liabilities are classified into financial liabilities measured at fair value with changes in fair value included in profit or loss (including tradable financial liabilities and financial liabilities specified to be measured at fair value with changes in fair value included in profit or loss at the time of initial recognition), and other financial liabilities.

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FINANCIAL INFORMATION OF JINKE PROPERTY

APPENDIX II

1. Recognition basis, measurement method and conditions for derecognition of financial assets and financial liabilities

A financial asset or financial liability is recognized when the Company becomes a party to the contract of financial instrument. At the time of initial recognition, financial assets or financial liabilities are measured at fair value; the relevant transaction expenses relating to financial assets and financial liabilities measured at fair value with changes in fair value included in profit or loss are directly included in profit or loss; the relevant transaction expenses relating to other financial assets or financial liabilities are stated as initially recognized amount.

The Company makes subsequent measurement on the financial assets at fair value and does not deduct any transaction expenses arising in future due to disposal of the financial assets, except in the following circumstances:

• (1) held-to-maturity investments and loans and receivables are measured at amortized cost by the effective interest rate;

• (2) equity instrument investment which has no quote in an active market and the fair value of which cannot be measured reliably and derivative financial assets that relate to the equity instrument and should be settled by delivery of the equity instrument are measured on the basis of cost. The Company makes subsequent measurement on the financial liabilities at amortized cost by the effective interest rate, except in the following circumstances:

• (1) financial liabilities measured at fair value with changes in fair value included in profit or loss are measured at fair value, and any transaction expenses which may arise at the settlement of financial liabilities in future are not deducted;

• (2) derivative financial liabilities, which relate to equity instrument which has no quote in an active market and the fair value of which cannot be measured reliably, and which should be settled by delivery of the equity instrument are measured on the basis of cost;

• (3) for the financial guarantee contracts which are not financial liabilities designated to be measured at fair value with changes in fair value included in profit or loss, or the loan commitments which are not designated to be measured at fair value with changes in fair value included in profit or loss and which will enjoy a loan interest rate lower than the market level, a subsequent measurement should be made by the higher of the following two amounts after the initial recognition:

  • 1) amount determined according to the Accounting Standards for Business Enterprises No. 13 — Contingencies ;

  • 2) balance of the initially recognized amount minus the accumulative amortization amount determined according to the Accounting Standards for Business Enterprises No. 14 — Revenue .

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FINANCIAL INFORMATION OF JINKE PROPERTY

APPENDIX II

Gains or losses arising from change in fair value of financial assets or financial liabilities other than those relating to hedging are disposed of as follows:

• (1) gains or losses arising from change in fair value of financial assets or financial liabilities measured at fair value with changes in fair value included in profit or loss are stated as revenues from change in fair value; interest or cash dividend obtained while the assets are held is recognized as return on investment; at the time of disposal, the difference between the amount actually received and the amount initially entered into account is recognized as return on investment, and the revenue from change in fair value is adjusted at the same time.

• (2) Change in fair value of available-for-sale financial assets is stated as other consolidated revenue; interest calculated by effective interest rate method during the holding period is stated as return on investment; cash dividend of available-for-sale equity instrument investment is stated as return on investment when the invested entity announces distribution of dividend; at the time of disposal, the difference between the amount actually received and the book value minus the accumulative amount of the change in fair value originally stated as other consolidated revenue is recognized as return on investment.

If the contract right to collect cash flow from a certain financial asset is terminated or if almost all the risks and returns relating to the ownership of the financial asset have been transferred, the financial asset should be derecognized; if the current obligation of a financial liability is exempted in part or in whole, the financial liability or part thereof should be derecognized accordingly.

1. Recognition basis and measurement method of transfer of financial assets

If the Company has transferred almost all the risks and returns relating to the ownership of a financial asset to the transferee, it should derecognize the financial asset; if the Company reserves almost all the risks and returns relating to the ownership of a financial asset, it should continue to recognize the transferred financial asset and recognize the consideration received as a financial liability. If the Company has neither transferred nor reserved almost all the risks and returns relating to the ownership of a financial asset, relevant disposal should be made as follows, respectively:

• (1) if the Company gives up the control over the financial asset, it should derecognize the financial asset;

• (2) if the Company does not give up the control over the financial asset, it should recognize the relevant financial asset according to the extent of its continuous involvement in the transferred financial asset, and the relevant liability should be recognized accordingly.

If the transfer of an entire financial asset satisfies the conditions for derecognition, the difference between the amounts of the following two items should be included in profit or loss:

• (1) the book value of the transferred financial asset;

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APPENDIX II

FINANCIAL INFORMATION OF JINKE PROPERTY

• (2) the sum of consideration received from the transfer and the accumulative amount of the change in fair value originally stated as owners’ equity. If the transfer of partial financial asset satisfies the conditions for derecognition, the entire book value of the transferred financial asset should, between the portion which has been derecognized and the portion which has not been derecognized, be amortized according to their respective fair values, and the difference between the amounts of the following two items should be included in profit or loss:

  • (1) the book value of the portion which has been derecognized;

  • (2) the sum of consideration of the portion which has been derecognized and the accumulative amount of the change in fair value originally stated as owners’ equity, corresponding to the portion which has been derecognized.

• Determination methods of fair value of financial assets and financial liabilities

The Company uses evaluation techniques which apply to the current circumstance and are supported by enough available data and other information to determine the fair value of relevant financial assets and financial liabilities. The Company divides the input values used by evaluation techniques into the following levels and uses them in sequence:

• (1) The input value at the first level is the unadjusted quote in an active market for the same assets or liabilities which can be obtained on the date of measurement;

• (2) The input value at the second level is the directly or indirectly observable input value of relevant assets or liabilities other than the input value at the first level, including quote for similar assets or liabilities in an active market; quote for identical or similar assets or liabilities in a market that is not active; other observable input value other than quote, e.g. interest rates and yield curves observable at commonly quoted intervals; market-corroborated input value;

• (3) The input value at the third level is the unobservable input value of relevant assets or liabilities, including interest rate which cannot be observed directly or corroborated by observable market data, stock volatility, future cash flow of retirement obligation assumed during merger of enterprises, financial forecast made based on its own data, etc.

• Impairment test of financial assets and method of withdrawal of provision for impairment

• (1) The Company should check the book value of financial assets other than those measured at fair value with changes in fair value included in profit or loss on the balance sheet date, and the provision for impairment should be withdrawn if there is objective evidence showing the financial assets have suffered impairment.

• (2) For held-to-maturity investments, loans and receivables, the financial asset whose amount is significant individually should experience the independent impairment test; the financial asset whose amount is insignificant individually may experience the impairment test

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APPENDIX II

FINANCIAL INFORMATION OF JINKE PROPERTY

independently or be included in portfolios of financial assets with similar credit risk features so as to carry out an impairment test; if, upon the independent test, the financial assets (including those financial assets whose amount is significant and insignificant individually) have not been impaired, they should be included in portfolios of financial assets with similar credit risk features so as to conduct an impairment test. If the test result shows impairment has happened, the impairment loss is determined as per the difference of the book value above the present value of the expected future cash flow.

• (3) Available-for-sale financial assets

• 1) Objective evidence showing investment in available-for-sale debt investment has been impaired includes:

  • ① Serious financial difficulty of the debtor;

  • ② A breach of contract by the debtor, such as a default or delay in interest or principal payment;

  • ③ The Company, for economic and legal reasons relating to the debtor’s financial difficulty, granting a concession to the debtor;

  • ④ It becoming probable that the debtor will enter bankruptcy or other financial reorganization;

  • 5 The disappearance of an active market for the debt instrument because of financial difficulties of the debtor;

  • ⑥ Other evidence showing the available-for-sale debt instrument has been impaired.

• 2) Objective evidence showing available-for-sale equity instrument investment has been impaired includes the significant or non-transient drop in the fair value of investment in equity instrument and significant adverse change in the technical, market, economic or legal environment, etc. in which the invested entity operates, indicating that the cost of the investment may not be recovered by the Company.

The Company conducts independent check on various available-for-sale equity instrument investments on the balance sheet date. For the equity instrument investment measured at cost, the Company determines whether the equity instrument has been impaired factoring whether the technical, market, economic or legal environment in which the invested entity operates, experiences significant adverse change.

If the available-for-sale equity instrument measured at cost has been impaired, the difference between the book value of the equity instrument investment and the present value of the future cash flow discounted at the current market yield rate of similar financial assets is recognized as impairment loss and included in profit or loss, and the impairment loss incurred should not be restated once recognized.

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FINANCIAL INFORMATION OF JINKE PROPERTY

APPENDIX II

• (XI) Receivables

• Receivables whose amount is significant individually and for which provision for bad debts is withdrawn individually

Basis or amount standard for determining a receivable with significant amount

RMB10 million or above

• Withdrawal method for Impairment test is conducted separately, and provision for bad receivables whose amount is debts is withdrawn as per the difference of the present value significant individually and for of the future cash flow below the book value. which provision for bad debts is withdrawn individually

• Receivables for which the provision for bad debts is withdrawn by combination of credit risk features

• (1) Basis for combination determination of Specific combination and withdrawal method for provision for bad debts

Age combination

Receivables with same account age have similar credit risk features

Cash deposit portfolio

Deposits

Combination of transactions with Receivables from connected parties in the consolidation scope connected parties in the consolidation scope

Withdrawal method for provision for bad debts by combination of credit risk features

Age combination Age analysis method

Cash deposit portfolio Impairment test is conducted separately, and provision for bad debts is withdrawn as per the difference of the present value of the future cash flow below the book value.

Combination of transactions with Impairment test is conducted separately, and provision for bad connected parties in the debts is withdrawn as per the difference of the present value consolidation scope of the future cash flow below the book value.

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FINANCIAL INFORMATION OF JINKE PROPERTY

APPENDIX II

• (2) Age analysis method

	Withdrawal	Withdrawal
	percentage of	percentage of
	accounts	other
	receivable	receivables
Age	(%)	(%)
Within 1 year (inclusive, same below)	1	1
1-2 years	5	5
2-3 years	20	20
3-5 years	50	50
Above 5 years	100	100

1. Receivables whose amount is insignificant individually but for which provision for bad debts is withdrawn individually

Reasons for withdrawing The present value of the future cash flow of receivables provision for bad debts significantly differs from that of the receivable combination individually with credit risk features Withdrawal method for provision Provision for bad debts is withdrawn as per the difference of for bad debts the present value of the future cash flow below the book value.

For other receivables including notes receivable, interests receivable and long-term receivables, provision for bad debts is withdrawn as per the difference of the present value of the future cash flow below the book value.

(XII) Inventories

1. Classification of inventories

Inventories include the land for development held for sale or use during development and operation, developed products, developed products which are intended to be sold but are temporarily rented, products to be developed, short-term house, material inventory, equipment inventory and low-value consumables, as well as development cost during development. In particular, the products to be developed refer to the land which has been purchased and is determined to be developed into the completed, developed product. If the project is developed as a whole, the products to be developed should be fully stated in the development cost; if the project is developed by phase, the land for phased development should be partially stated in the development cost, and the undeveloped land in later phase is kept in the product to be developed.

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FINANCIAL INFORMATION OF JINKE PROPERTY

APPENDIX II

1. Method for appraising outgoing inventories

2. (1) Outgoing materials and equipment should be appraised by weighted average method at the end of month.

3. (2) During project development, the land for development should be amortized as per the land area of the developed products and be stated in the development cost of the project.

4. (3) Accounting for the developed products should be carried out by floor area averaging method.

5. (4) The developed products which are intended to be sold but are temporarily rented and the short-term houses are amortized evenly on a straight line basis over the expected service life of the Company’s fixed assets of the same type.

6. (5) If the public supporting facilities are completed earlier than relevant developed products, after completion settlement, the public supporting facilities should be amortized as per floor area of relevant development project and be stated in the development cost of relevant development project; if the public supporting facilities are completed later than relevant developed products, the expenses for public supporting facilities should be accrued by relevant developed products first, and then the cost of relevant developed product should be adjusted as per the difference between the actual amount and the accrued amount after completion settlement of the public supporting facilities.

7. Determination basis of net realizable value of inventories

On the balance sheet date, inventories are measured by the lower of cost and net realizable value, and provision for inventory depreciation is withdrawn as per the difference by which the inventory cost is higher than the net realizable value. The net realizable values of inventories for direct sales are determined by the estimated selling prices of the inventories minus estimated sales expenses and related taxes during normal production and operation; the net realizable values of inventories needing to be processed are determined by the estimated selling prices of finished goods made from the said inventories minus the estimated costs to be incurred until completion, estimated sales expenses and related taxes during normal production and operation; in case the price of part of an inventory is specified in the contract but that of the other parts under the same account is not specified in the contract by the balance sheet date, their net realizable values are determined separately and compared with their corresponding costs in order to determine the amount for withdrawal or reversal of provision for inventory depreciation.

1. Stocktaking system for inventories

Stocktaking is based on perpetual inventory system.

1. Amortization of low-value consumables

Low-value consumables are amortized by lump sum.

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FINANCIAL INFORMATION OF JINKE PROPERTY

APPENDIX II

(XIII) Assets classified as held-for-sale assets

The Company classifies the non-current assets (excluding financial assets) meeting the following conditions as held-for-sale assets:

1. the component part must be available for immediate sales under the current conditions merely according to general and common terms on sale of the component part;

2. a resolution has been made regarding disposal of the component part;

3. an irrevocable transfer agreement has been signed with the transferee;

4. the transfer is very likely to be completed within a year.

(XIV) Long-term equity investment

1. Determination of joint control and significant influence

Joint control is the contractually agreed sharing of control over an arrangement, and exists only when the activities relating to the arrangement require the unanimous consent of the parties sharing control. Significant influence is the power to participate in decisions of the financial and operating policies of the invested entity but is not control or joint control over formulation of those policies with other parties.

1. Determination of investment cost

2. (1) Regarding merger of enterprises under the same control, the merging party takes cash payment, transfer of non-cash assets, bearing of liability, or issue of equity securities as consideration for merger, the share of the book value of owners’ equity of the merged party obtained on the date of merger in the consolidated financial statements of the ultimate controller is taken as the initial investment cost thereof. The capital reserve is adjusted as per the difference between the initial investment cost of the long-term equity investments and the book value of the paid consideration for merger or the aggregate book value of shares issued; in case of capital reserve insufficient for writedown, the retained earnings will be adjusted.

When long-term equity investment is obtained through merger of enterprises under the same control achieved by multiple transactions in stages, the Company determines whether it is a “package deal”. If it is a “package deal”, various transactions are considered as a transaction for acquisition of control in accounting. If it is not a “package deal”, on the date of merger, the initial investment cost is recognized at the share of the book value of net assets of the merged party in the consolidated financial statements of the ultimate controller. The capital reserve is adjusted as per the difference between the initial investment cost of the long-term equity investments on the date of merger and the sum of the book value of the long-term equity investment before merger and the book value of the paid consideration for the newly acquired shares on the date of merger; in case of capital reserve insufficient for writedown, the retained earnings will be adjusted.

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FINANCIAL INFORMATION OF JINKE PROPERTY

APPENDIX II

• (2) For the merger of enterprises not under the same control, the fair value of the paid consideration for merger is taken as the initial investment cost on the date of acquisition.

When the long-term equity investment is obtained through merger of enterprises not under the same control achieved by multiple transactions in stages, the Company determines whether it is stated in a stand-alone financial statement or the consolidated financial statements in accounting.

  - 1) In a stand-alone financial statement, the sum of the book value of the previously held equity investments and the new investment cost is taken as the initial investment cost stated by cost method.

  - 2) In the consolidated financial statements, the Company determines whether it is a “package deal”. If it is a “package deal”, various transactions are considered as a transaction for acquisition of control in accounting. If it is not a “package deal”, for the equity of the acquired party held before the date of acquisition should be re-measured at the fair value of the equity on the date of acquisition, and the difference between the fair value and the book value is stated as current return on investment; if the equity of the acquired party held before the date of acquisition involves other consolidated revenue stated by equity method, other consolidated revenue relating thereto should be reclassified as current revenue on the date of acquisition, excluding other consolidated revenue arising from change in net liabilities or net assets from remeasurement of defined benefit plan by the invested party.

• (3) Long-term equity investment obtained through ways other than merger of enterprises: For acquisition by cash payment, the acquisition price actually paid is taken as the initial investment cost; for acquisition by issue of equity securities, the fair value of the equity securities issued is taken as the initial investment cost; for acquisition by debt reorganization, the initial investment cost is determined in accordance with the Accounting Standards for Business Enterprises No. 12 — Debt Reorganization ; for acquisition by exchange of non-monetary assets, the initial investment cost is determined in accordance with the Accounting Standards for Business Enterprises No. 7 — Exchange of Non-monetary Assets .

• Subsequent measurement and method for recognizing gain/loss

Long-term equity investments in invested entities are stated using the cost method; long-term equity investments in associated enterprises and joint ventures are stated using the equity method.

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FINANCIAL INFORMATION OF JINKE PROPERTY

APPENDIX II

1. Accounting for disposal of investments in subsidiaries through multiple transactions in stages, resulting in loss of control

2. (1) Stand-alone financial statement

The difference between the book value of the disposed equity and the consideration actually obtained is included in profit or loss. The residual equity in the invested entities with material impact or joint control with other party is stated by the equity method; the residual equity in the invested entities without control, joint control or material impact is recognized as financial assets and stated in accordance with relevant provisions of the Accounting Standards for Business Enterprises No. 22 — Recognition and Measurement of Financial Instruments .

• (2) Consolidated financial statements

• 1) Disposal of investments in subsidiaries through multiple transactions in stages resulting in loss of control, which transactions are not “package deal”

Before loss of control, the capital reserve (capital premium) should be adjusted as per the difference between the disposal price and net asset share continuously calculated as from the date of acquisition or merger and held in the subsidiaries after disposal of long-term equity investment. If the capital premium is insufficient for writedown, the retained earnings should be written down. If the control over the original subsidiaries is lost, the remaining equity should be recalculated as per its fair value on the date when the control is lost. The difference obtained after the sum of consideration obtained from disposal of equity and fair value of the remaining equity is subtracted by the share of net assets that are continuously calculated as per the original shareholding percentage as from the date of acquisition or merger and should be enjoyed in the original subsidiaries should be stated as return on investment in the period when the control is lost and be used for writedown of goodwill. Other consolidated revenue related to the original subsidiaries’ equity investment should be converted into current investment income at the time of loss of control.

• 2) Disposal of investments in subsidiaries through multiple transactions in stages resulting in loss of control, which transactions are “package deal”

Various transactions should be accounted by taking them as a deal of disposal of the subsidiaries resulting in loss of control. However, before loss of control, the difference between each disposal consideration and net asset share that should be enjoyed in the subsidiaries after disposal of investment should be recognized as other consolidated revenue in the consolidated financial statements and be transferred to profit or loss at the time of loss of control.

(XV) Investment properties

1. Investment properties include the right to use land already rented, the right to use land held and prepared for transfer after appreciation and buildings already rented.

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FINANCIAL INFORMATION OF JINKE PROPERTY

APPENDIX II

1. Investment properties are initially measured at cost and subsequently measured as per the cost pattern, and relevant withdrawal of provision for depreciation or amortization is carried out by the same method for fixed assets and intangible assets.

2. Investment properties are initially measured at cost and subsequently measured as per the fair value pattern. For investment properties subsequently measured as per the fair value pattern, the basis for selection of accounting policies is:

3. (1) There is an active real estate transaction market at the location of the investment properties.

4. (2) The Company can obtain the market price and other relevant information of the same type or similar type of real estate from the real estate transaction market, so as to make a reasonable estimate of the fair value of the investment properties.

The Company neither withdraws provisions for depreciation of investment properties nor amortizes investment properties. It adjusts the book values of the investment properties based on their fair values on the balance sheet date and the difference between fair value and the original book value should be included in profit or loss.

When the Company has concrete evidence showing that the purpose of the investment properties is changed and transforms the investment properties into self-used properties, the book value of the self-used properties is the fair value on the date of transformation and the difference between the fair value and the original book value should be included in profit or loss. When the Company transforms self-used properties or inventories into investment properties measured as per the fair value pattern, the investment properties should be measured as per the fair value on the date of transformation. If the fair value on the date of transformation is less than the original book value, the difference should be included in profit or loss. If the fair value on the date of transformation is more than the original book value, the difference should be stated as capital reserve.

(XVI) Fixed assets

1. Conditions for recognition of fixed assets

Fixed assets are tangible assets held for the purpose of commodity production, labor provision, lease or operation management and used for more than one fiscal year. Fixed assets are recognized when economic benefits are likely to flow in and their costs can be measured reliably.

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APPENDIX II

FINANCIAL INFORMATION OF JINKE PROPERTY

1. Method of depreciation of fixed assets

				Annual
		Term of	Residual	depreciation
		depreciation	rate	rate
Category	Method of depreciation	(year)	(%)	(%)
Houses and buildings	Average service life	35	5	2.71
	method
Decoration of houses and	Average service life	6		16.67
buildings	method
Machinery & equipment	Average service life	10	5	9.5
	method
Power generation related	Average service life	20	5	4.75
equipment	method
Electronic equipment	Average service life	5	5	19
	method
Household appliances	Average service life	5	5	19
	method
Means of transport	Average service life	5	5	19
	method
Other equipment	Average service life	5	5	19
	method

(XVII) Construction in progress

1. Construction in progress is recognized when economic benefits are likely to flow in and their costs can be measured reliably. Construction in progress is measured as per the actual cost incurred before the said assets built reach their intended condition for use.

2. When the construction in progress has reached the intended condition for use, it will be treated as fixed assets as per the actual construction cost. If the construction in progress has reached the intended condition for use but completion accounting is not carried out, the construction in progress should be first treated as fixed assets as per the estimated value. After completion accounting is carried out, the original estimated value should be adjusted as per the actual cost, but the provision for depreciation withdrawn should not be adjusted.

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FINANCIAL INFORMATION OF JINKE PROPERTY

APPENDIX II

(XVIII) Borrowing costs

1. Principle for recognition of capitalization of borrowing costs

If the borrowing costs incurred to the Company can be directly attributed to purchase and construction or production of assets qualified for capitalization, they should be capitalized and stated as relevant asset costs. Other borrowing costs should be recognized as expenses at the time of incurrence and included in profit or loss.

1. Capitalization period of borrowing costs

2. (1) When the borrowing costs meet the following conditions simultaneously, they should be capitalized: 1) asset expenditure has occurred; 2) borrowing cost has occurred; 3) the purchase and construction or production activities needed for bringing the assets into their intended condition for use or sale have been commenced.

3. (2) If the purchase and construction or production of the assets qualified for capitalization are discontinued abnormally, and the discontinuation lasts for over three months, capitalization of the borrowing costs should be suspended. Borrowing costs incurred during discontinuation should be recognized as current expenses until the purchase and construction or production activities resume.

4. (3) When the assets qualified for capitalization under purchase and construction or production reach their intended condition for use or sale, capitalization of the borrowing costs should be ceased.

5. Capitalization rate and amount of borrowing costs

If special loans are borrowed for purchase and construction or production of assets qualified for capitalization, the amount obtained after the interest expenses (including amortization of discount or premium determined by the effective interest rate method) actually incurred in the period when the special loans are borrowed are subtracted by the interest income from depositing the unused borrowings in the bank or return on temporary investment with the unused borrowings should be recognized as the interest amount that should be capitalized. If the general loans are occupied for the purchase and construction or production of assets qualified for capitalization, the interest amount of general loans that should be capitalized should be calculated and determined based on the weighted average of the surplus between accumulated asset expenditure and the asset expenditure of special loans times the capitalization rate of the occupied general loans. Capitalization rate is calculated and determined as per the weighted average effective interest rate for general loans.

(XIX) Intangible assets

1. Intangible assets including land use right, software and trademark right should be initially measured as per cost.

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APPENDIX II

FINANCIAL INFORMATION OF JINKE PROPERTY

1. Intangible assets with limited service life should be amortized systematically and reasonably in their service lives as per the expected form of realization of economic benefits relating to the said intangible assets. If the form of realization cannot be reliably determined, the intangible assets should be amortized on a straight-line basis. Specific service lives are as follows:

	Amortization term
Item	(year)
Land use right	30-50
Software	5
Trademark right	5

(XX) Impairment of some long-term assets

If there are signs that impairment of long-term assets such as long-term equity investments, fixed assets, construction in progress and intangible assets with limited service life may occur on the balance sheet date, their recoverable amount should be estimated. Regarding goodwill resulting from business merger and intangible assets with indefinite service life, impairment test should be conducted every year regardless whether there is any sign of impairment. The goodwill should, together with the related asset group or combination of asset group, be subject to the impairment test.

If the recoverable amount of the abovementioned long-term assets is lower than their book value, the difference should be recognized as provision for impairment and included in profit or loss.

(XXI) Long-term expenses to be amortized

Long-term expenses refer to expenses incurred which have an amortization term of more than one year (exclusive). Long-term expenses to be amortized are stated at the amount actually incurred, and amortized evenly by stages in the benefit period or specified period. If long-term expenses to be amortized are not beneficial to subsequent accounting periods, the remaining value of the items after amortization should be transferred to profit or loss.

(XXII) Remuneration of employees

1. Remuneration of employees includes short-term remuneration, post-employment benefits, termination benefits and other long-term employee benefits.

2. Accounting for short-term remuneration

During the accounting period when the employees serve the Company, the short-term remuneration actually incurred should be recognized as liability and included in profit or loss or relevant asset cost.

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FINANCIAL INFORMATION OF JINKE PROPERTY

APPENDIX II

1. Accounting for post-employment benefits

Post-employment benefits include defined contribution plan and defined benefit plan.

• (1) During the accounting period when the employees serve the Company, the amount to be contributed as calculated according to the defined contribution plan should be recognized as liabilities and included in profit or loss or relevant asset cost.

• (2) Accounting for defined benefit plan should usually include the following procedures:

  • 1) According to the expected cumulative unit credit method, relevant demographic variable and financial variable should be estimated based on unbiased and mutually consistent actuarial assumption, so as to calculate the obligations resulting from the defined benefit plan and determine the period of relevant obligations. Meanwhile, the obligations resulting from the defined benefit plan are discounted so as to determine the present value of obligations resulting from the defined benefit plan and current service cost;

  • 2) If the defined benefit plan has assets, the deficit or surplus obtained after the present value of obligations resulting from the defined benefit plan is subtracted by the fair value of assets of the defined benefit plan should be recognized as a net liability or net asset of the defined benefit plan. If the defined benefit plan has surplus, the net assets of the defined benefit plan should be measured based on the lower of surplus and asset limit of the defined benefit plan;

  • 3) At the end of the period, the employee remuneration cost resulting from the defined benefit plan should be recognized as service cost, net interest of net liabilities or net assets of the defined benefit plan, and change resulting from recalculation of net liabilities or net assets of the defined benefit plan. In particular, the service cost and the net interest of the net liabilities or net assets of the defined benefit plan should be included in profit or loss or relevant asset cost. Change resulting from recalculation of the net liabilities or net assets of the defined benefit plan should be included in other consolidated income and should not be reversed to profit or loss in subsequent accounting period, but the amount recognized as other consolidated income may be transferred within the equity scope.

• Accounting for termination benefit -: regarding termination benefits provided to the employees, liabilities of employee remuneration resulting from termination benefits should be recognized at the earlier of the following dates and included in profit or loss: (1) when the Company cannot unilaterally cancel the termination benefits provided due to cancellation of labor relation plans or cutdown proposals; (2) when the Company recognizes costs or expenses relating to restructuring involving payment of termination benefits.

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FINANCIAL INFORMATION OF JINKE PROPERTY

APPENDIX II

1. Accounting for other long-term employee benefits

If other long-term benefits provided to employees comply with defined contribution plan, accounting should be carried out according to the relevant provisions of the defined contribution plan; other long-term benefits should be accounted according to the relevant provisions of the defined benefit plan. To simplify accounting, the employee remuneration cost arising therefrom should be recognized as service cost, and the sum of the net interest of net liabilities or net assets of other long-term employee benefits and change resulting from recalculation of net liabilities or net assets of other long-term employee benefits should be included in profit or loss or relevant asset cost.

(XXIII) Estimated liabilities

1. Obligations resulting from contingencies such as provision of external guarantee, litigation matters, product quality assurance and loss contract are present obligations of the Company. Performance of the said obligations may lead to outflow of economic benefits from the Company. Moreover, when the amount of the said obligations can be measured reliably, the Company should recognize the obligations as estimated liabilities.

2. The Company should initially measure the estimated liabilities based on the best estimate it needs to pay for performance of relevant present obligations and review the book value of the estimated liabilities on the balance sheet date.

(XXIV) Share-based payment

1. Type of share-based payment

Share-based payment consists of equity-settled share-based payment and cash-settled share-based payment.

1. Relevant accounting for implementation, revision and termination of share-based payment plans

2. (1) Equity-settled share-based payment

As to an equity-settled share-based payment in return for services of employees, if the right may be exercised immediately after the grant, the fair value of the equity instruments should, on the date of grant, be stated as the relevant cost or expense and the capital reserves should be adjusted accordingly. As to an equity-settled share-based payment in return for services of employees, if the right cannot be exercised until the vesting period comes to an end or until the prescribed performance conditions are met, then on each balance sheet date within the vesting period, the services obtained in the current period should, based on the best estimate of the number of vested equity instruments, be stated as relevant costs or expenses at the fair value of the equity instruments on the date of grant and the capital reserves should be adjusted accordingly.

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APPENDIX II

FINANCIAL INFORMATION OF JINKE PROPERTY

Regarding equity-settled share-based payment in return for services of other parties, if the fair value of the service of any other party can be measured reliably, the equity-settled share-based payment should be measured as per the fair value of the service of the other party on the date of acquisition. If the fair value of the service of any other party cannot be measured reliably, but the fair value of the equity instruments can be measured reliably, the equity-settled share-based payment should be measured as per the fair value of the equity instruments on the date of the service acquisition and be stated as relevant cost or expense, and the owner’s equities should be increased accordingly.

(2) Cash-settled share-based payment

As to a cash-settled share-based payment in return for services of employees, if the right may be exercised immediately after the grant, the cash-settled share-based payment should be stated as relevant cost or expense as per the fair value of the liabilities undertaken by the Company on the date of grant, and the liabilities should be increased accordingly. As to a cash-settled share-based payment in return for services of employees, if the right cannot be exercised until the vesting period comes to an end or until the prescribed performance conditions are met, on each balance sheet date within the vesting period, the services obtained in the current period should, based on the best estimate of the information about the exercisable right, be stated as relevant costs or expenses and the corresponding liabilities at the fair value of the liabilities undertaken by the Company.

(3) Revision and termination of the share-based payment plans

If the revision leads to increase in the fair value of the equity instruments granted, the Company should recognize the increase of the services obtained according to the increase in the fair value of the equity instruments. If the revision leads to increase in the number of the equity instruments granted, the Company should recognize the fair value of the increased equity instruments as increase of the services obtained. If the Company changes the vesting conditions in a mode favourable to the employees, the Company should take into account the vesting conditions after change in dealing with the vesting conditions.

If the revision leads to decrease in the fair value of the equity instruments granted, the Company should continue to recognize the amount of the services obtained based on the fair value of the equity instruments on the date of grant, without considering the decrease in the fair value of the equity instruments. If the revision leads to decrease in the number of equity instruments, the Company should regard the decrease as cancellation of the equity instruments granted. If the Company changes the vesting conditions in a mode unfavourable to the employees, the Company may not consider the vesting conditions after change in dealing with the vesting conditions.

If the Company cancels or settles the equity instruments granted in the vesting period (except for cancellation due to failure to meet vesting conditions), the Company should speed up dealing with the exercisable right based on the cancellation or settlement and immediately recognize the amount to be recognized in the remaining vesting period.

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APPENDIX II

FINANCIAL INFORMATION OF JINKE PROPERTY

(XXV) Other financial instruments including preferred stocks and perpetual bonds

According to standards relating to financial instruments and Provisions on the Distinction between Financial Liability and Equity Instruments and the Relevant Accounting Treatment (Cai Kuai [2014] No. 13), regarding the financial instruments like perpetual bonds, the Company should, according to the contract terms of the financial instruments issued and the economic essence they reflect rather than based on legal form only, and with reference to the definitions of financial assets, financial liabilities and equity instruments, classify such financial assets or their constituents as financial assets, financial liabilities or equity instruments at the time of initial recognition.

On the balance sheet date, regarding financial instruments classified as equity instruments, their interest expense or dividend payout should be used for the Company’s profit distribution and their repurchase and cancellation should be taken as equity change; regarding financial instruments classified as financial liabilities, their interest expense or dividend payout should be taken as borrowing cost and the gains or losses resulting from their repurchase or redemption should be included in profit or loss.

(XXVI) Accounting for maintenance funds

According to the relevant provisions at the location of the developed projects, the maintenance funds should be withdrawn and included by the Company in the development costs of relevant developed projects at the time of sale (presale) of the developed projects and uniformly turned in to the maintenance fund management department.

(XXVII) Accounting for quality assurance funds

The quality assurance funds should be deducted from the project payment for the construction unit according to the construction contracts. Maintenance expense incurred in the warranty period of the developed projects should be written down by the quality assurance funds. The balance of the quality assurance funds should be returned to the construction unit upon expiry of the specified warranty period of the developed projects.

(XXVIII) Revenue

1. Revenue recognition principle

(1) Sales of commodities

Revenue from sales of commodities should be recognized when the following conditions are simultaneously satisfied: (1) the major risks and rewards concerning the ownership of the commodities are transferred to the buyers; (2) the Company no longer reserves the continuous management right generally related to ownership, or implements effective control over the commodities sold; (3) the amount of revenue can be measured reliably; (4) relevant economic benefits are likely to flow in; (5) relevant costs incurred or to be incurred can be measured reliably.

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FINANCIAL INFORMATION OF JINKE PROPERTY

APPENDIX II

(2) Provision of labor

If the transaction result of provision of labor can be measured reliably on the balance sheet date (the amount of revenue can be measured reliably, relevant economic benefits are likely to flow in, the progress of completion of transaction can be determined reliably, and the costs incurred and to be incurred can be measured reliably), the revenue from provision of labor should be recognized by the percentage-of-completion method and the progress of completion of transaction for provision of labor should be determined based on measurement of the completed work. If the transaction result of provision of labor cannot be measured reliably on the balance sheet date, and the labor cost incurred can be made up upon prediction, the amount of the labor cost incurred should be recognized as revenue from provision of labor and the labor cost should be carried over as per the same amount. If the labor cost incurred cannot be made up upon prediction, the labor cost incurred should be included in profit or loss and the labor revenue should not be recognized.

(3) Transfer of right to use assets

Revenue from transfer of right to use assets should be recognized when relevant economic benefits are likely to flow in and the amount of revenue can be measured reliably. Interest revenue should be determined as per the time of use of the Company’s monetary funds by others and the actual interest rate. Royalty revenue should be calculated and determined as per the charging time and method specified in relevant contract or agreement.

(4) Construction contracts

• 1) If the result of the construction contracts can be measured reliably on the balance sheet date, the contract revenue and contract expenses should be recognized by the percentage-of-completion method. If the result of the construction contracts cannot be measured reliably on the balance sheet date, and the contract cost can be recovered, the contract revenue should be recognized as per the actual contract cost that can be recovered and the contract cost should be recognized as contract expense in the period when it is incurred. If the contract cost cannot be recovered, it should be immediately recognized as contract expense when it is incurred and the contract revenue should not be recognized.

• 2) The result of the fixed price contract can be measured reliably when the following conditions are simultaneously satisfied: the total contract revenue can be measured reliably, the contract-related economic benefits are likely to flow in, the contract cost actually incurred can be distinguished clearly and measured reliably, the progress of contract completion and the costs to be incurred for completion of contract can be measured reliably. The result of the cost-plus contract can be measured reliably when the following conditions are simultaneously satisfied: the contract-related economic benefits are likely to flow in and the contract cost actually incurred can be distinguished clearly and measured reliably.

• 3) The method for determining the progress of contract completion should be based on the percentage of the accumulative cost actually incurred in the total estimated contract cost.

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FINANCIAL INFORMATION OF JINKE PROPERTY

APPENDIX II

• 4) If the estimated total contract cost exceeds the total contract revenue on the balance sheet date, the estimated loss should be recognized as current expense. Regarding construction contracts under performance, the difference thereof should be withdrawn for provisions for inventory depreciation. Regarding onerous contract to be performed, the difference thereof should be recognized as estimated liability.

• Specific method for revenue recognition

• (1) Revenue from real estate sales

When the developed projects are completed and pass acceptance inspection, the sales contract is signed, the obligations specified in the contract are fulfilled, the major risks and rewards concerning the ownership of the developed projects are transferred to the buyers, the Company should no longer reserve continuous management right generally related to ownership or implement effective control over the developed projects sold. That is, when the procedures for delivery of houses are completed or the customers can be deemed as having received the houses according to the conditions specified in the sales contract, the amount of revenue can be measured reliably and relevant economic benefits are likely to flow in, namely, the buyers’ payment proof is obtained (usually, it means the down payment in the sales contact has been received and the arrangements for the remaining house payment have been confirmed), and relevant costs incurred or to be incurred can be measured reliably, sales revenue should be recognized.

Sale of self-used houses: When major risks and rewards concerning the ownership of the self-used houses are transferred to the buyers, the Company should not reserve continuous management right generally related to ownership or implement effective control over the developed projects sold. When the amount of revenue can be measured reliably, relevant economic benefits are likely to flow in, and relevant costs incurred or to be incurred can be measured reliably, the sales revenue should be recognized.

Operating revenue of houses and projects subject to agency construction should be recognized by the percentage-of-completion method when an irrevocable construction contract has been signed for the houses and projects subject to agency construction, the economic benefits relating to the houses and projects subject to agency construction can flow into the enterprise, the stage of completion of the houses and projects subject to agency construction can be measured reliably, and the relevant costs of the houses and projects subject to agency construction can be measured reliably.

(2) Revenue from property lease

Regarding property lease, revenue from property lease should be recognized as per the lease term and rent specified in the lease contract or agreement when relevant economic benefits are likely to flow in.

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FINANCIAL INFORMATION OF JINKE PROPERTY

APPENDIX II

• (3) Revenue from property management

Regarding property management, the property management revenue should be recognized when the property management service has been provided, the economic benefits relating to property management may flow into the enterprise and the costs relating to property management can be measured reliably.

(4) Revenue from electricity sales

Revenue from electricity sales should be recognized when the electricity is supplied to the provincial grid company at the location of the power plant. The Company should recognize the amount of revenue from electricity sales as per the fair value of the received or receivable contract or agreement price.

(5) Revenue from other businesses

According to the provisions of relevant contract or agreement, revenue from other businesses should be recognized when the economic benefits relating to the transaction can flow into the enterprise and the revenue-related cost can be measured reliably.

(XXIX) Government subsidies

1. Judgment basis and accounting for assets-related government subsidies

The assets-related government subsidies refer to the government subsidies obtained by the Company and used for purchasing and constructing or otherwise forming long-term assets. The assets-related government subsidies are recognized as deferred incomes, evenly allocated in the service life of relevant assets, and included in profit or loss. However, the government subsidies measured as per nominal amount are directly included in profit or loss.

1. Judgment basis and accounting for income-related government subsidies

The income-related government subsidies refer to government subsidies other than assets-related government subsidies. The income-related government subsidies should be recognized as deferred incomes if they are used for making up relevant expenses or losses in the subsequent period and should be included in profit or loss during the period when relevant expenses are recognized. The income-related government subsidies used for making up relevant expenses or losses incurred should be directly included in profit or loss.

(XXX) Deferred tax assets and deferred tax liabilities

1. According to the difference between the book values of the assets and liabilities and their tax basis (if the tax basis for items not recognized as assets and liabilities can be determined according to tax law, the difference is that between the tax basis and their book values), the deferred tax assets or deferred tax liabilities should be calculated and recognized as per the prevailing tax rate during the period when the assets are expected to be recovered or the liabilities are liquidated.

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APPENDIX II

FINANCIAL INFORMATION OF JINKE PROPERTY

1. Deferred tax assets should be recognized when it is likely to obtain the taxable income used for deducting a deductible temporary difference. If, on the balance sheet date, there is concrete evidence showing that it is likely to obtain sufficient taxable income for deducting a deductible temporary difference in the future, the deferred tax assets unrecognized in the previous accounting periods should be recognized.

2. If, upon review of the book value of the deferred tax assets on the balance sheet date, it is unlikely to obtain sufficient taxable income for deducting the benefit of deferred tax assets in the future, the book value of the deferred tax assets should be written down. If sufficient taxable income is likely to be obtained, the amount written down will be restated.

3. The Company’s current income tax and deferred income tax should be taken as income tax expense or gain and included in profit or loss, but income tax resulting from the following circumstances should be excluded: (1) M&A of enterprise; (2) transactions or matters directly recognized in the owner’s equity.

(XXXI) Lease

1. Accounting for operating lease

If the Company is a lessee, the rent should be included in relevant asset cost or recognized as current gain/loss on a straight-line basis in various sections of the lease period, and the initial direct cost should be directly included in profit or loss. Contingent rents should be included in profit or loss when they are actually incurred. If the Company is a lessor, the rent should be included in profit or loss on a straight-line basis in various sections of the lease period, and the initial direct expense incurred should be directly included in profit or loss except the large amount that will be capitalized and included in profit or loss by stages. Contingent rents should be included in profit or loss when they are actually incurred.

2. Accounting for finance leasing

If the Company is a lessee, on the start date of lease period, the Company should take the lower of the fair value of the leasing assets on the lease start date and the present value of the minimum lease payment as the entry value of the leased assets and take the minimum lease payment as the entry value of long-term receivables. The difference should be regarded as unrecognized finance fee and the initial direct expense incurred should be included in the value of the leasing assets. In various sections of the lease period, the current finance fee should be calculated and recognized by effective interest method.

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APPENDIX II

FINANCIAL INFORMATION OF JINKE PROPERTY

If the Company is a lessor, on the start date of lease period, the Company should take the sum of the minimum lease receipt on the lease start date and initial direct expense as the entry value of the finance lease receivables and record the unguaranteed residual value. The difference between the sum of the minimum lease receipt, initial direct expense and unguaranteed residual value and the sum of their present values should be recognized as unrealized financing income. In various sections of the lease period, the current financing income should be calculated and recognized by effective interest method.

(XXXII) Segment report

The Company determines business segments based on the internal organizational structure, management requirements, and internal reporting system. The business segments of the Company refer to the constituent parts meeting the following conditions at the same time:

1. They can generate revenues and incur expenses in the daily activities;

2. The management can regularly evaluate their operating results to determine their allocation of resources and assess their performances;

3. Their financial position, operating results, cash flow and other relevant accounting information can be obtained through analysis.

(XXXIII) Other critical accounting policies and accounting estimates

Accounting relating to repurchase of the Company’s shares: If the Company’s shares are repurchased due to reduction of registered capital or reward for employees, the amount actually paid should be regarded as treasury shares and registered for reference. If the shares repurchased are cancelled, the difference between the total face value of shares calculated as per the face value and number of the shares cancelled and the amount actually paid for repurchase should be used to write down the capital reserve. If the capital premium is insufficient for writedown, the retained earnings should be written down. If granting the shares repurchased to employees of the Company as a reward is equity-settled share-based payment, when a payment is received after the employees exercise the right to purchase shares of the Company, the cost of treasury shares given to the employees and the accumulative amount of capital reserve (other capital reserves) in the vesting period should be written off. Meanwhile, the difference should be used to adjust the capital reserve (capital stock premium).

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FINANCIAL INFORMATION OF JINKE PROPERTY

APPENDIX II

(XXXIV) Changes in critical accounting policies and accounting estimates

1. Changes in critical accounting estimates

2. (1) Contents of and reasons for the changes in accounting estimates

Contents of and reasons for the changes in accounting estimates

• The Company originally made bad-debt provision for Wujiang Jinke’s other receivables by aging analysis method. According to Wujiang Jinke’s actual operations and to fairly reflect the risk features of the monies, the Company accounted for the said receivables as receivables whose amount is significant individually and for which provision for bad debts is withdrawn individually. Provision for impairment is fully withdrawn for the said monies upon passing individual test in the current period.

Examination Time when and approval application procedures starts Notes Change was 1 October 2016 deliberated and approved by the 43rd meeting of the 9th Board of Directors of the Company.

• (2) Report items and amounts that are significantly affected

Report items that are significantly affected	Amount affected	Notes
Items in the balance sheet dated 31 December 2016
Other receivables	-37,875,163.18
Items in the income statement 2016
Assets impairment loss	37,875,163.18
Net profit attributable to owners of the parent company	-37,875,163.18

— 385 —

FINANCIAL INFORMATION OF JINKE PROPERTY

APPENDIX II

IV. Taxes

(I) Principal taxes and tax rates

Taxes	Tax basis	Tax rates
VAT	Sale of goods or provision of	3%, 5%, 6%, 11%, 13%,
	taxable services	17%
Business tax	Taxable turnover	3%, 5%
Land appreciation tax	Appreciation value resulting from	30%-60% of super-rate
	paid transfer of use right of	progressive tax rate
	state-owned land, and property right
	of above-ground structures and
	other attachments
	Prepaid VAT: payment for	1%-5%
	commodity houses collected in
	advance
Property tax	For ad valorem collection, 1.2% of	1.2%, 12%
	the remaining value after 30% of
	the original value of the property is
	deducted by lump sum; for
	rent-based collection, 12% of the
	rental income
Municipal maintenance and	Amount of turnover tax payable	1%, 5%, 7%
construction tax
Education surcharge	Amount of turnover tax payable	3%
Local education surcharge	Amount of turnover tax payable	2%, 1.5%
Enterprise income tax	Taxable income	16.5%, 25%

Corporate income tax rate of taxpayers entitled to different tax rates

Name of taxpayer	Income tax rate
Chongqing Jiangjin Jinke Guojun Real Estate Co., Ltd. (hereinafter
referred to as Guojun Real Estate)	15%
Chongqing Bozhan Real Estate Development Co., Ltd. (hereinafter
referred to as Bozhan Real Estate)	15%
Chongqing Jinke Xingju Real Estate Co., Ltd. (hereinafter referred to as
Xingju Real Estate)	15%
Chongqing Zhongxun Property Development Co., Ltd. (hereinafter
referred to as Zhongxun Property)	15%
Chongqing Tianyuansheng Real Estate Development Co., Ltd.
(hereinafter referred to as Tianyuansheng Real Estate)	15%

Income tax rate

— 386 —

APPENDIX II

FINANCIAL INFORMATION OF JINKE PROPERTY

Name of taxpayer	Income tax rate
Chongqing Bishan Jinke Zhongxi Real Estate Co., Ltd. (hereinafter
referred to as Zhongxi Real Estate)	15%
Chongqing Jinke Zhongjun Real Estate Development Co., Ltd.
(hereinafter referred to as Zhongjun Real Estate)	15%
Chongqing Jiale Jiulong Real Estate Development Co., Ltd. (hereinafter
referred to as Jiale Jiulong)	15%
Chongqing Hongjing Real Estate Development Co., Ltd. (hereinafter
referred to as Hongjing Real Estate)	15%
Chongqing Jinke Junwei Real Estate Development Co., Ltd. (hereinafter
referred to as Jinke Junwei)	15%
Chongqing Jinke Jinyu Real Estate Development Co., Ltd. (hereinafter
referred to as Jinke Jinyu)	15%
Chongqing Jinke Junyao Real Estate Development Co., Ltd. (hereinafter
referred to as Junyao Real Estate)	15%
Chongqing Jinke Juncheng Real Estate Development Co., Ltd.
(hereinafter referred to as Juncheng Real Estate)	15%
Chongqing Jinke Junkai Real Estate Development Co., Ltd. (hereinafter
referred to as Junkai Real Estate)	15%
Chongqing Jinke Jingyi Real Estate Development Co., Ltd. (hereinafter
referred to as Jingyi Real Estate)	15%
Chongqing Jinke Huiyi Real Estate Development Co., Ltd. (hereinafter
referred to as Huiyi Real Estate)	15%
Chongqing Jinke Changjin Real Estate Co., Ltd. (hereinafter referred to
as Changjin Real Estate)	15%
Chongqing Jinke Tuhong Real Estate Co., Ltd. (hereinafter referred to as
Tuhong Real Estate)	15%
Jinke Property Services Group Limited (hereinafter referred to as Jinke
Property)	15%
Chongqing Jinke Hotel Co., Ltd. (hereinafter referred to as Jinke Hotel)	15%
Chongqing Kelsinki Landscaping Co., Ltd. (hereinafter referred to as
Kelsinki)	15%
Chongqing Zhanhong Landscaping Co., Ltd. (hereinafter referred to as
Zhanhong Landscaping)	15%
Chongqing Qingke Trading Co., Ltd. (hereinafter referred to as Qingke
Trading)	15%
Xinjiang Huaran Oriental New Energy Co., Ltd. (hereinafter referred to
as Xinjiang Huaran)	Note 1
Jinyu Holdings Group Co., Ltd. (hereinafter referred to as Jinyu
Holdings)	Note 2
Hong Kong Junde International Trade Co., Limited (hereinafter referred
to as Hong Kong Junde)	16.50%
Other taxpayers than the abovementioned ones	25%

— 387 —

FINANCIAL INFORMATION OF JINKE PROPERTY

APPENDIX II

Note 1: Refer to the tax preferences for taxes in the notes to the financial statements for details.

Note 2: Jinyu Holdings is incorporated in British Virgin Islands and regularly pays annual government fees according to the laws and regulations of British Virgin Islands.

(II) Tax preferences

1. VAT

According to the Notice about Policies regarding the Value Added Tax on Products Made through Comprehensive Utilization of Resources and Other Products (Cai Shui [2008] No. 156) issued by the Ministry of Finance and the State Administration of Taxation, the VAT on the power projects generated by Xinjiang Huaran with wind power is subject to policy of 50% immediate refund upon collection.

2. Enterprise income tax

According to the Catalogue of Industries Encouraged to Develop in the Western Region (Fa Gai Wei Ling No. 15 [2014]) and Directory Catalogue on Readjustment of Industrial Structure (Version 2011) (Revised) issued by National Development and Reform Commission, Notice on Tax Policy Issues Concerning Further Implementing the Western China Development Strategy (Cai Shui No. 58 [2011]) of the Ministry of Finance and the State Administration of Taxation and relevant replies from competent tax authorities, in 2016 an enterprise income tax rate of 15% was temporarily imposed on Guojun Real Estate, Bozhan Real Estate, Xingju Real Estate, Zhongxun Property, Tianyuansheng Real Estate, Zhongxi Real Estate, Zhongjun Real Estate, Jiale Jiulong, Hongjing Real Estate, Jinke Junwei, Jinke Jinyu, Junyao Real Estate, Juncheng Real Estate, Junkai Real Estate, Jingyi Real Estate, Huiyi Real Estate, Changjin Real Estate, Tuhong Real Estate, Jinke Property, Jinke Hotel, Kelsinki, Zhanhong Landscaping and Qingke Trading.

According to NDRC’s Reply Concerning Approval of 2 Million KW Wind Power Project in Southeast Wind Region in Hami, Xinjiang (Fa Gai Neng Yuan No. 2561 [2012]), Yandun-based 6[th] Wind Power Plant Project was invested and constructed by Xinjiang Huaran. Xinjiang Huaran’s main business is “generation and supply of electric power (wind power)”, which falls under the “new wind power generation projects” under the category of electric power of List of Public Infrastructure Projects Enjoying Enterprise Income Tax Preferences (Version 2008) . Therefore, Xinjiang Huaran was exempt from enterprise income tax from 2014 (when it obtained the first revenue) to 2016 and was allowed a 50% reduction in enterprise income tax from 2017 to 2019.

(III) Others

According to the Enterprise Income Tax Law of the People’s Republic of China , the branches of Jinke Property shall, on a consolidated basis, declare and pay enterprise income tax to the tax authority where Jinke Property is registered. The enterprise income tax rate for Jinke Property and its property management branches in Chongqing, Sichuan, Shaanxi, Guizhou, Yunnan, Enshi of Hubei and Xinjiang is 15%, and for enterprises in other regions is 25%.

— 388 —

FINANCIAL INFORMATION OF JINKE PROPERTY

APPENDIX II

• V. Notes to items in the consolidated financial statement

• (I) Notes to items in the consolidated balance sheet

• Monetary funds

• (1) Details

		Amount at the
	Amount at the end	beginning of the
Item	of the period	period
Cash on hand	642,031.00	833,758.55
Bank deposit	17,258,344,121.21	7,966,470,013.54
Other monetary funds	385,856,061.48	1,421,884,489.74
Total	17,644,842,213.69	9,389,188,261.83
Including: Total of deposits with overseas bank	957,447.32	900,544.91

• (2) Other descriptions

Other monetary funds (RMB385,856,061.48) include RMB185,856,061.48 of cash deposit and RMB200,000,000.00 of fixed deposit receipt, which were restricted in use and were not stated as cash and cash equivalents.

1. Notes receivable

2. (1) Details

				**Amount **	at the beginning	at the beginning
	**Amount at **	**the end of **	the period	**of **	the period
		Provision			Provision
	Book	for bad		Book	for bad	Book
Item	balance	debts	Book value	balance	debts	value
Bank acceptance bill	4,923,290.00		4,923,290.00	50,000.00		50,000.00
Total	4,923,290.00		4,923,290.00	50,000.00		50,000.00

• (2) Notes receivable which had been endorsed or discounted by the Company at the end of the period and were not mature by the balance sheet date

	Amount	Amount not
	derecognized at	derecognized at
	the end of the	the end of the
Item	period	period
Bank acceptance bill	5,300,000.00
Subtotal	5,300,000.00

— 389 —

APPENDIX II

FINANCIAL INFORMATION OF JINKE PROPERTY

The acceptor of bank acceptance bills is commercial bank. Since commercial banks are relatively reliable and the possibility is slim that bank acceptance bills will not be accepted when they come due, the Company had derecognized endorsed or discounted bank acceptance bills. However, if these bills are not accepted when they fall due, the Company will bear joint liability to the bill holder according to Negotiable Instruments Law of the People’s Republic of China .

3. Accounts receivable

• (1) Details

• 1) Classified details

		Amount at the end of the period	Amount at the end of the period	Amount at the end of the period
	Book balance		**Provision for **	**bad **	debts
				Provision
				withdrawal
		Percentage		percentage
Classification	Amount	(%)	Amount		(%)	Book value
Receivables whose amount is
significant individually and
for which provision for bad
debts is withdrawn
individually	167,896,542.00	19.14	1,678,965.42		1.00	166,217,576.58
Receivables for which
provision is withdrawn for
bad debts in portfolio by
credit risks	709,078,125.56	80.86	46,009,091.21		6.49	663,069,034.35
Receivables whose amount is
insignificant individually
but for which provision for
bad debts is withdrawn
individually
Total	876,974,667.56	100.00	47,688,056.63		5.44	829,286,610.93

— 390 —

APPENDIX II

FINANCIAL INFORMATION OF JINKE PROPERTY

		**Amount at the beginning of the **	**Amount at the beginning of the **	period
	Book balance		**Provision for **	bad debts
				Provision
				withdrawal
		Percentage		percentage
Classification	Amount	(%)	Amount	(%)	Book value
Receivables whose amount is
significant individually and
for which provision for bad
debts is withdrawn
individually	124,973,640.00	16.31	1,249,736.40	1.00	123,723,903.60
Receivables for which
provision is withdrawn for
bad debts in portfolio by
credit risks	641,425,178.91	83.69	36,103,261.17	5.63	605,321,917.74
Receivables whose amount is
insignificant individually but
for which provision for bad
debts is withdrawn
individually
Total	766,398,818.91	100.00	37,352,997.57	4.87	729,045,821.34

• 2) Accounts receivable whose amount is significant individually and for which provision for bad debts is withdrawn individually by the end of the period

			Provision
			withdrawal	Reason for
		Provision for	percentage	provision
Entity name	Book balance	bad debts	(%)	withdrawal
Subsidy for surcharge on	167,896,542.00	1,678,965.42	1.00	Recovery risks
electricity generated from				of such monies
renewable energy sources				are controllable
[note]
Subtotal	167,896,542.00	1,678,965.42	1.00

Note: Receivable subsidy for surcharge on electricity generated from renewable energy sources was RMB124,973,640.00 at the beginning of the period, and increased RMB107,653,062.00 in the current period. The subsidy recovered in the current period amounted to RMB64,730,160.00. As at 31 December 2016, the balance of receivable subsidy was RMB167,896,542.00.

— 391 —

FINANCIAL INFORMATION OF JINKE PROPERTY

APPENDIX II

• 3) Accounts receivable for which provision is withdrawn for bad debts as per age analysis method in portfolio

	**Amount at the end of the **	**Amount at the end of the **	period
				Provision
		Provision for	withdrawal
Age	Book balance	bad debts	percentage (%)
Within 1 year	509,259,074.39	5,092,590.74		1.00
1-2 years	106,422,158.08	5,321,107.89		5.00
2-3 years	61,185,796.97	12,237,159.37		20.00
3-5 years	17,705,725.80	8,852,862.89		50.00
Over 5 years	14,505,370.32	14,505,370.32		100.00
Subtotal	709,078,125.56	46,009,091.21		6.49

• (2) Provision for bad debts withdrawn, recovered or reversed in the current period

The amount withdrawn for bad debts in the current period is RMB10,335,059.06.

• (3) Top five entities in amount of accounts receivable

		Percentage in
		balance of
		accounts	Provision for
Entity name	Book balance	receivable (%)	bad debts
Customer 1 [Note]	172,218,468.55	19.64	1,722,184.69
Customer 2	25,495,696.63	2.91	254,956.96
Customer 3	13,586,660.05	1.55	679,333.00
Customer 4	13,098,086.00	1.49	2,619,617.20
Customer 5	11,215,780.00	1.28	112,157.80
Subtotal	235,614,691.23	26.87	5,388,249.65

• Note: Receivable subsidy for surcharge on electricity generated from renewable energy sources is RMB167,896,542.00 and receivable proceeds from selling electricity is RMB4,321,926.55.

— 392 —

FINANCIAL INFORMATION OF JINKE PROPERTY

APPENDIX II

1. Advance payments

2. (1) Age analysis

3. 1) Details

Amount at the end of the period

			Provision for
Age	Book balance	Percentage (%)	bad debts	Book value
Within 1 year	3,292,327,803.49	90.67		3,292,327,803.49
1-2 years	80,315,379.22	2.21		80,315,379.22
2-3 years	2,841,711.34	0.08		2,841,711.34
Over 3 years	255,574,919.69	7.04		255,574,919.69
Total	3,631,059,813.74	100.00		3,631,059,813.74

Amount at the beginning of the period

			Provision for
Age	Book balance	Percentage (%)	bad debts	Book value
Within 1 year	956,388,310.88	94.76		956,388,310.88
1-2 years	28,508,132.37	2.82		28,508,132.37
2-3 years	24,085,107.33	2.39		24,085,107.33
Over 3 years	280,557.91	0.03		280,557.91
Total	1,009,262,108.49	100.00		1,009,262,108.49

• 2) Reasons for delayed settlement of material advance payments maturing in more than one year

		Reason for
	Amount at the	delayed
Entity name	end of the period	settlement
Zhengzhou Zhongyuan Urban Development Construction
and Investment Co., Ltd.	200,000,000.00	Note 1
Wushan Land and Resources Administration Bureau	51,100,000.00	Note 2
Subtotal	251,100,000.00

Note 1: It is land reclamation and demolition funds prepaid in previous years for acquisition of subsidiaries in the current period.

Note 2: It is the first instalment of land transfer price paid by the Company’s subsidiary Chongqing Jinke Jiahan Real Estate Development Co., Ltd. to Wushan Land and Resources Administration Bureau.

— 393 —

FINANCIAL INFORMATION OF JINKE PROPERTY

APPENDIX II

• (2) Top five entities in amount of advance payments

		Percentage in
		balance of
		advance
Entity name	Book balance	payments (%)
Zhengzhou Zhongyuan Urban Development Construction
and Investment Co., Ltd. [Note 1]	913,663,919.52	24.67
Wuhan Yingjin Real Estate Development Co., Ltd. [Note 2]	570,000,000.00	15.39
The Land and Resource Department of Hefei [Note 3]	400,000,000.00	10.80
Liuzhou Land and Resources Bureau [Note 4]	358,500,000.00	9.68
Chongqing United Assets and Equity Exchange Group Co.,
Ltd. [Note 5]	293,520,000.00	7.92
Subtotal	2,535,683,919.52	68.46

• Note 1: The subsidiary Wuxi Jinke Real Estate Development Co., Ltd. (hereinafter referred to as Wuxi Jinke) purchased the equity of Henan Guofengyuan Real Estate Co., Ltd. (hereinafter referred to as Guofengyuan Real Estate) and was included in the consolidated statements in the current period. According to the relevant agreement reached with Zhengzhou Zhongyuan Urban Development Construction and Investment Co., Ltd. (hereinafter referred to as Zhongyuan Urban Development Construction and Investment), Guofengyuan Real Estate was responsible for fund raising for land reclamation and demolition resettlement and comprehensive development relating to the urban village project of “Chinese Park” in Zhongyuan District, Zhengzhou. As at 31 December 2016, the land reclamation and demolition resettlement were still under way. Guofengyuan Real Estate accumulatively injected RMB913,663,919.52 in reclamation and demolition, including RMB200 million injected in 2013.

• Note 2: According to the Cooperation Agreement on Dazhou Village Package A Comprehensive Reconstruction Project signed by and between the Company and Wuhan Yingjin Real Estate Development Co., Ltd. (hereinafter referred to as Wuhan Yingjin), the Company should bid for and develop the target land (K1, K2 and K3 of Package A in Dazhou Village) specified in the agreement and pay a demolition and reconstruction fee to Wuhan Yingjin for the target land. In the current period, the Company paid RMB570 million in total according to the agreement.

The Company’s holding subsidiary Jinke Property Group (Wuhan) Co., Ltd. obtained 211 mu of land of Land K1 and K2 in Dazhou Village on 24 January 2017.

• Note 3: It is the land auction deposit paid by the subsidiary Nantong Jinke Real Estate Development Co., Ltd. to the Land and Resource Department of Hefei. According to the Contract for Assignment of the Right to Use State-owned Construction Land signed with the Land and Resource Department of Hefei on 14 December 2016, the deposit of RMB400 million was used to offset land transfer price.

• Note 4: It is the land auction deposit paid by the subsidiary Chongqing Jinke Real Estate Development Co., Ltd. to theagent of Finance Bureau of Liuzhou City. According to the Contract for Assignment of the Right to Use State-owned Construction Land signed with Liuzhou Land and Resources Bureau on 8 December 2016, the deposit of RMB358.5 million was used to offset land transfer price.

• Note 5: It is the land auction deposit paid by the subsidiary Chongqing Jinke Huimao Real Estate Development Co., Ltd. to Chongqing United Assets and Equity Exchange Group Co., Ltd. (hereinafter referred to as Chongqing United Assets and Equity Exchange). According to the Contract for Assignment of the Right to Use State-owned Construction Land signed with Chongqing United Assets and Equity Exchange on 22 February 2017 and 2 March 2017, respectively, the deposit of RMB293.52 million was used to offset land transfer price.

— 394 —

FINANCIAL INFORMATION OF JINKE PROPERTY

APPENDIX II

1. Other receivables

2. (1) Details

3. 1) Classified details

		Amount at the end of the period	Amount at the end of the period	Amount at the end of the period
	Book balance		Provision for bad debts
				Provision
				withdrawal
		Percentage		percentage
Classification	Amount	(%)	Amount	(%)	Book value
Receivables whose amount is
significant individually and
for which provision for bad
debts is withdrawn
individually	1,056,559,459.60	25.45	65,495,930.65	6.20	991,063,528.95
Receivables for which
provision is withdrawn for
bad debts in portfolio by
credit risks	3,094,503,050.05	74.55	179,564,312.79	5.80	2,914,938,737.26
Receivables whose amount is
insignificant individually but
for which provision for bad
debts is withdrawn
individually
Total	4,151,062,509.65	100.00	245,060,243.44	5.90	3,906,002,266.21
		Amount at the beginning of the period
		Book balance	Provision for bad debts
				Provision
				withdrawal
		Percentage		percentage
Classification	Amount	(%)	Amount	(%)	Book value
Receivables whose amount is
significant individually and
for which provision for bad
debts is withdrawn
individually
Receivables for which
provision is withdrawn for
bad debts in portfolio by
credit risks	1,621,552,237.31	100.00	138,845,753.63	8.56	1,482,706,483.68
Receivables whose amount is
insignificant individually but
for which provision for bad
debts is withdrawn
individually
Total	1,621,552,237.31	100.00	138,845,753.63	8.56	1,482,706,483.68

— 395 —

APPENDIX II

FINANCIAL INFORMATION OF JINKE PROPERTY

• 2) Other receivables whose amount is significant individually and for which provision for bad debts is withdrawn individually by the end of the period

			Provision
			withdrawal	Reason for
		Provision for	percentage	provision
Entity name	Book balance	bad debts	(%)	withdrawal
Wujiang Jinke Yangzi Real
Estate Development Co.,
Ltd.	65,495,930.65	65,495,930.65	100.00	Note 1
Taian Haida Real Estate
Development Co., Ltd.	517,975,530.71			Note 2
Jinan Hairui Real Estate
Development Co., Ltd.	380,032,389.86			Note 2
Qingdao Haichang Real Estate
Co., Ltd.	93,055,608.38			Note 2
Subtotal	1,056,559,459.60	65,495,930.65	6.20

• Note 1: Affected by regional market condition and local real estate control policies, Wujiang Jinke Yangzi Real Estate Development Co., Ltd. (hereinafter referred to as Wujiang Jinke) incurred a loss of RMB266,763,900 in the current period and will suffer a loss in project settlement. After a separate impairment test is conducted on other receivables of Wujiang Jinke, the Company fully made provision for bad debts. At the beginning of the period, a total of RMB18,041,948.29 was withdrawn as provision for bad debts by age. RMB47,453,982.36 was withdrawn as additional provision for bad debts after impairment test in the current period.

• Note 2: It is the debt-assumed consideration paid by the subsidiary Shandong Baijun Real Estate Development Co., Ltd. for acquisition of Jinan Hairui Real Estate Development Co., Ltd., Qingdao Haichang Real Estate Co., Ltd. and Taian Haida Real Estate Development Co., Ltd. by means of equity transfer and debt assumption according to the Equity Transfer Agreement signed with Qingdao Haier Real Estate Group Co., Ltd. on 2 December 2016. Refer to Note XIV (II). 8 to the Financial Statements for details.

• 3) Other receivables for which provision is withdrawn for bad debts as per age analysis method in portfolio

Amount at the end of the period

			Provision
		Provision for	withdrawal
Age	Book balance	bad debts	percentage (%)
Within 1 year	476,698,006.69	4,766,980.07	1.00
1-2 years	223,068,587.95	11,153,429.40	5.00
2-3 years	101,210,346.59	20,242,069.34	20.00
3-5 years	164,168,102.02	82,084,051.03	50.00
Over 5 years	61,317,782.95	61,317,782.95	100.00
Subtotal	1,026,462,826.20	179,564,312.79	17.49

— 396 —

FINANCIAL INFORMATION OF JINKE PROPERTY

APPENDIX II

• 4) Receivables for which provision is withdrawn for bad debts as per other methods in portfolio

Amount at the end of the period Provision Provision for withdrawal Portfolio name Book balance bad debts percentage (%) Cash deposit portfolio 2,068,040,223.85 Subtotal 2,068,040,223.85

• (2) Provision for bad debts withdrawn, recovered or reversed in the current period

The amount withdrawn for bad debts for the current period was RMB103,418,920.79 and the reversed provision for bad debts due to merger of enterprises not under the same control was RMB3,213,719.52.

• (3) Other receivables actually written off in the current period

Other receivables actually written off in the current period amounted to RMB418,150.50.

• (4) Other receivables classified by payment properties

		Amount at the
	Amount at the end	beginning of the
Payment properties	of the period	period
Cash deposit	2,068,040,223.85	498,663,626.13
Consideration paid for debt-assumed acquisition of
the target company	991,063,528.95
Land funds		139,808,533.06
Land reclamation funds	166,033,635.00	166,033,635.00
Project cooperation funds	277,373,482.41	297,307,438.90
Receivable suspense payments	430,240,530.10	351,610,229.63
Others	218,311,109.34	168,128,774.59
Total	4,151,062,509.65	1,621,552,237.31

— 397 —

APPENDIX II

FINANCIAL INFORMATION OF JINKE PROPERTY

• (5) Top five entities in amount of other receivables

				Percentage in
				balance of
				other		Whether it is
	Payment			receivables	Provision for	a connected
Entity name	properties	**Book balance **	Age	(%)	bad debts	party
Zhengding New District	Land auction	1,440,000,000.00	Within 1 year	34.69	No
Branch of Shijiazhuang	fund
Bureau of Land &
Resources [Note 1]
Taian Haida Real Estate	Consideration	517,975,530.71	Within 1 year	12.48		[Note 2]
Development Co., Ltd.	paid for
	debt-assumed
	acquisition
Jinan Hairui Real Estate	Consideration	382,282,389.86	Within 1 year	9.21	[Note 2]
Development Co., Ltd.	paid for
	debt-assumed
	acquisition
The Land and Resource	Land auction	250,000,000.00	Within 1 year	6.02	No
Department of Hefei	fund
[Note 3]
Liuyang Agricultural	Land	166,033,635.00	Within 1 year,	4.00	70,238,296.00	No
Development Co., Ltd.	reclamation		1-2 years, 2-3
[Note 4]	funds		years, 3-5
			years, over
			five years
Total		2,756,291,555.57		66.40	70,238,296.00

• Note 1: It is the bidding deposit paid by the subsidiary Beijing Jinke Zhanhao Real Estate Co., Ltd. to Zhengding New District Branch of Shijiazhuang Bureau of Land & Resources for Land No. 007, 008, 010, 011, 012 and 013 of the project in Zhengding, Shijiazhuang and was returned in January 2017.

• Note 2: Refer to Note XIV (II). 8 to the Financial Statements for details.

• Note 3: It is the bidding fund paid by the subsidiary Wuxi Jinke Jiarun Real Estate Development Co., Ltd. to the Land and Resource Department of Hefei for Land E1609 in Yaohai District and was returned in January 2017.

• Note 4: It is the expense on comprehensive land reclamation for the Liuyang Xianrenhu Lake Reservoir Project paid according to the Comprehensive Land Reclamation Agreement and Supplementary Agreement signed between the Company and Liuyang Municipal People’s Government.

— 398 —

FINANCIAL INFORMATION OF JINKE PROPERTY

APPENDIX II

1. Inventories

2. (1) Details

Amount at the end of the period

Provision for Item Book balance depreciation Book value Raw materials 12,329,509.15 12,329,509.15 Low-cost consumables 1,053,965.32 1,053,965.32 Commodities in stock 136,826,147.92 136,826,147.92 Development cost 46,122,947,713.69 106,320,624.70 46,016,627,088.99 Products to be developed 4,126,971,881.34 4,126,971,881.34 Developed products 21,319,901,561.01 585,738,836.03 20,734,162,724.98 Leased products developed 476,168,096.88 476,168,096.88 Project construction 23,056,066.49 23,056,066.49 Total 72,219,254,941.80 692,059,460.73 71,527,195,481.07

Amount at the beginning of the period

		Provision for
Item	Book balance	depreciation	Book value
Raw materials	16,158,948.66		16,158,948.66
Low-cost consumables	24,596.52		24,596.52
Commodities in stock	149,250,949.29		149,250,949.29
Development cost	51,913,039,317.88	485,202,533.32	51,427,836,784.56
Products to be developed	3,367,141,160.47		3,367,141,160.47
Developed products	17,370,621,433.39	560,205,410.75	16,810,416,022.64
Leased products developed	379,510,787.85		379,510,787.85
Project construction	13,520,698.42		13,520,698.42
Total	73,209,267,892.48	1,045,407,944.07	72,163,859,948.41

• (2) Provision for inventory depreciation

• 1) Details

	Amount at the	**Increase in the **	current period	**Decrease in the **	current period	Amount at the
	beginning of the			Reversal or		end of the
Item	period	Withdrawal	Others	charge-off	Others	period
Development cost	485,202,533.32	18,444,476.86		173,038,400.64	224,287,984.84	106,320,624.70
Developed products	560,205,410.75	75,772,438.38	224,287,984.84	274,526,997.94		585,738,836.03
Subtotal	1,045,407,944.07	94,216,915.24	224,287,984.84	447,565,398.58	224,287,984.84	692,059,460.73

— 399 —

APPENDIX II

FINANCIAL INFORMATION OF JINKE PROPERTY

• Note 1: As at 31 December 2016, based on current market prices and actual sales performance of the project and after conducting an impairment test on cashable value of the project, subsidiaries Jinke Bailexing Real Estate Co., Ltd. (Wansheng Economic and Technological Development Zone, Chongqing), Wuxi Jinke Kerun Real Estate Development Co., Ltd., Chongqing Jinke Chenju Real Estate Co., Ltd. and Chengdu Jianglong Investment Co., Ltd. had withdrawn a provision for inventory depreciation of RMB5,793,512.03, RMB15,410,534.60, RMB19,415,560.96 and RMB53,597,307.65 respectively for their projects Chongqing • Wansheng Jinke China Health City, Wuxi • Milan Garden A, Chongqing • Jinke Central Imperial Garden and Chengdu • Jinke Bridge Village.

• Note 2: In the reporting period, Wuxi Jinke Jiarun Real Estate Development Co., Ltd. reversed provision for inventory depreciation of RMB128,114,455.03 from Wuxi • Chengnan Aristocratic Family developed by it and RMB149,119,342.79 was written off due to carry-over of sales cost; Chenzhou Jinke Kaitian Real Estate Development Co., Ltd. reversed provision for inventory depreciation of RMB51,934,000.95 from Chenzhou • Central Park developed by it and RMB8,028,779.62 was written off due to carry-over of sales cost; Hunan Jinke Real Estate Development Co., Ltd. reversed provision for inventory depreciation of RMB31,404,277.10 from Changsha • Flourishing Oriental Courtyard developed by it and RMB17,721,370.63 was written off due to carry-over of sales cost; Jinke Bailexing Real Estate Co., Ltd. (Wansheng Economic and Technological Development Zone, Chongqing) wrote off provision for inventory depreciation of RMB15,208,182.88 due to carry-over of sales cost for Chongqing • Wansheng Jinke China Health City developed by it; Chongqing Jinke Chenju Real Estate Co., Ltd. wrote off provision for inventory depreciation of RMB33,824,063.46 due to carry-over of sales cost for Chongqing • Jinke Central Imperial Garden developed by it; Wuxi Jinke Kerun Real Estate Development Co., Ltd. wrote off provision for inventory depreciation of RMB12,210,926.12 due to carry-over of sales cost for Wuxi • Milan A developed by it.

• 2) Specific basis for determining cashable net value and reasons for reversal or charge-off of provision for inventory depreciation in the current period

• ① Specific basis for determining cashable net value

As for remaining developed products of real estate projects completed by the end of period, their cashable net value is estimated selling price minus estimated sales expenses and relevant taxes; for development cost and products to be developed of real estate projects not completed by the end of period, their cashable net value is estimated selling price minus the cost after completion, estimated sales expenses and relevant taxes. Estimated selling prices include those for pre-sold products and those for unsold products; estimated selling prices of pre-sold products are determined based on the actual contract price while estimated selling prices of unsold products are determined based on recent average selling prices or market prices of similar property products and their positioning, quality and sales plan.

• ② Reasons for reversal or charge-off of provision for inventory depreciation in the current period

The Company conducted a test on provision for inventory depreciation for relevant projects according to actual sales price and annual sales plan. If the provision for inventory depreciation to be withdrawn is larger than the amount accumulatively withdrawn, an additional provision for inventory depreciation should be made; if the provision for inventory depreciation to be withdrawn is smaller than the amount accumulatively withdrawn, the provision for inventory depreciation that has been withdrawn should be reversed.

— 400 —

FINANCIAL INFORMATION OF JINKE PROPERTY

APPENDIX II

(3) Capitalization of borrowing costs

In 2016, the ending balance of inventories included capitalized interest of RMB6,888,983,323.02. In particular, the capitalized interest in the developed products at the end of the period was RMB2,059,054,605.64 and the capitalized interest in the development cost was RMB4,455,848,710.84. Capitalized borrowing costs stated as inventory costs in 2016 were RMB2,789,806,371.46 (RMB3,050,553,240.99 in 2015). In 2016, the capitalization rate for determining the amount of capitalized borrowing costs was 7.95% (8.98% in 2015). Details about the main items of interest capitalization in the current period were as follows:

	Accumulated	Amount of
	amount of	capitalized interest
	capitalized interest	in the current
Item	[note]	period
Beijing • Jinke Center	583,980,396.26	205,100,499.30
Jinan • Jinke World City	528,576,232.61	167,716,208.98
Chongqing • Xiyong Tianchen	322,456,887.88	109,989,274.74
Neijiang • Jinke Park Palace	239,401,091.32	95,217,449.72
Yunnan • Jinke Times Center	220,595,835.24	90,826,348.69
Qingdao • Jinke Star	151,274,158.12	87,405,904.35
Chongqing Fuling • Jinke Nanhu Project	115,383,506.43	73,419,251.33
Chongqing • Wanzhou Jinke Guanlan	91,880,726.12	81,328,492.53
Chongqing Beibei • Jinke City	377,204,314.66	71,833,816.02
Chongqing • Jinke Tianyuan Road (Phase I)	72,026,087.24	64,713,704.24
Chongqing • Xiyong Tianchen (Phase II)	194,939,744.29	64,179,200.89
Chongqing Yunyang • Jinke World City	149,363,989.63	61,036,975.15
Zhengzhou • Jinke City	71,312,887.34	61,022,126.15
Zunyi • Jinke Central Park	114,804,511.62	58,334,031.00
Chongqing Nanchuan • Jinke World City	106,631,684.53	57,660,601.53
Xi’an • Jinke Nature City	199,654,952.96	56,866,064.74
Chongqing Changshou • Jinke World City	172,555,113.53	55,857,568.40
Beijing • Jinke Napa House	570,892,496.86	49,049,155.53
Chongqing • Jinke Tianyuan Road (Phase II)	61,037,395.51	48,947,614.36
Chengdu • Jinke Oriental Elegance County	98,251,888.68	48,098,304.91
Chongqing • Jinke Times Center	243,330,015.62	47,964,245.34
Chongqing Dazu • Jinke Central Park	188,682,556.93	46,247,884.28
Subtotal	4,874,236,473.38	1,702,814,722.18

Note: It is the amount of capitalized interest as at 31 December 2016.

— 401 —

APPENDIX II

FINANCIAL INFORMATION OF JINKE PROPERTY

• (4) RMB18,303,055,894.48 of the opening inventory was for guarantee and RMB18,093,358,238.81 of the ending inventory was for guarantee.

		Amount at the
	Amount at the end	beginning of the	Reason for
Item	of the period	period	restriction
Chongqing • Jinke Sunshine		113,467,384.55	Mortgage of bank
Town			borrowings
Chongqing • Jinke Star	136,188,314.95		Mortgage of bank
			borrowings
Chongqing Jiangjin • Jinke	142,561,780.31	148,243,017.83	Mortgage of bank
Central Park			borrowings
Chongqing Bishan • Jinke	105,979,829.17		Mortgage of bank
Central Park			borrowings
Chongqing Beibei • Jinke City	177,221,546.05		Mortgage of bank
			borrowings
Chongqing • Wansheng Jinke	10,798,613.19	261,225,775.74	Mortgage of bank
China Health City			borrowings
Chongqing • Jinke Tianyuan	637,221,102.43		Mortgage of bank
Road (Phase I)			borrowings
Chongqing • Xiyong Tianchen		2,021,789,171.22	Mortgage of bank
			borrowings
Chongqing • Jinke Konggang	276,724,546.89	681,925,404.05	Mortgage of bank
City			borrowings
Chongqing • Jinke Central	33,790,651.25	220,036,596.27	Mortgage of bank
Washington			borrowings
Chongqing Wushan • Jinke City	60,325,679.78		Mortgage of bank
(Phase I)			borrowings
Chongqing Yongchuan • Jinke	212,623,373.58	15,836,396.26	Mortgage of bank
Park Palace			borrowings
Chongqing Dazu • Jinke Central		211,516,347.13	Mortgage of bank
Park			borrowings
Chengdu • Jinke Center		51,099,340.63	Mortgage of bank
			borrowings
Chengdu • Jinke Star City	102,207,544.14	26,029,039.64	Mortgage of bank
			borrowings
Chengdu • Jinke Bridge Village		9,541,918.04	Mortgage of bank
			borrowings
Chengdu • Jinke Oriental	755,030,727.66	493,044,403.28	Mortgage of bank
Elegance County			borrowings
Chengdu • Jinke Shuangnan City	667,159,813.37		Mortgage of bank
			borrowings

— 402 —

APPENDIX II

FINANCIAL INFORMATION OF JINKE PROPERTY

		Amount at the
	Amount at the end	beginning of the	Reason for
Item	of the period	period	restriction
Chengdu • Jinke Tianchen	316,887,698.72		Mortgage of bank
			borrowings
Suining • Jinke Beautiful Bay	237,328,231.30		Mortgage of bank
Project			borrowings
Neijiang • Jinke Central Park		267,021,116.75	Mortgage of bank
			borrowings
Neijiang • Jinke Park Palace	355,418,238.44	717,398,418.65	Mortgage of bank
			borrowings
Jinan • Jinke World City	249,548,949.07	1,396,558,028.27	Mortgage of bank
			borrowings
Qingdao • Jinke Star	1,593,768,886.89	1,217,620,604.02	Mortgage of bank
			borrowings
Qingdao • Jinke Sunshine Town	312,958,010.27	159,403,614.14	Mortgage of bank
			borrowings
Chongqing Kaixian • Jinke	71,976,339.39		Mortgage of bank
Wealth Center			borrowings
Chongqing Fuling • Jinke Nature		101,855,003.91	Mortgage of bank
City			borrowings
Chongqing • Jinke Lake Town		197,932,201.10	Mortgage of bank
			borrowings
Chongqing Fuling • Jinke Nanhu	363,889,801.76	251,832,436.78	Mortgage of bank
Project			borrowings
Chongqing Changshou • Jinke	731,110,694.58	1,064,019,869.45	Mortgage of bank
World City			borrowings
Chongqing Kaixian • Jinke		113,035,860.01	Mortgage of bank
Wealth Center			borrowings
Chongqing Kaixian • Vega de la	383,491,568.81		Mortgage of bank
Reina Project			borrowings
Chongqing Yunyang • Jinke	812,283,234.75	605,318,641.10	Mortgage of bank
World City			borrowings
Chongqing • Wanzhou Jinke	70,996,100.94		Mortgage of bank
Guanlan			borrowings
Beijing • Jinke Napa House		645,538,813.37	Mortgage of bank
			borrowings
Beijing • Jinke Center	1,480,502,538.39	2,347,453,138.17	Mortgage of bank
			borrowings
Changsha • Jinke World City	111,293,587.88	386,851,103.09	Mortgage of bank
			borrowings
Changsha • Jinke Center	276,917,734.10	1,128,139,174.13	Mortgage of bank
			borrowings

— 403 —

APPENDIX II

FINANCIAL INFORMATION OF JINKE PROPERTY

		Amount at the
	Amount at the end	beginning of the	Reason for
Item	of the period	period	restriction
Chenzhou • Nanling Eco-city “By		275,527,025.16	Mortgage of bank
the Water Side”			borrowings
Xianyang • Jinke World City	498,694,858.21	548,148,119.68	Mortgage of bank
			borrowings
Xi’an • Jinke Nature City	1,079,897,413.12		Mortgage of bank
			borrowings
Wuxi • Wealth Commercial Plaza	279,003,124.11	166,625,065.50	Mortgage of bank
			borrowings
Wuxi • Chengnan Aristocratic	1,477,863,400.95	139,100,052.48	Mortgage of bank
Family			borrowings
Wuxi • Jinke Eastern Palace	54,848,351.24		Mortgage of bank
			borrowings
Wuxi • Jinke Dream House	46,519,484.19		Mortgage of bank
			borrowings
Wuxi • Jinke Wanbo Plaza	88,606,694.61		Mortgage of bank
			borrowings
Zhangjiagang • Bridge Court		389,724,986.60	Mortgage of bank
			borrowings
Zhangjiagang • Bridge Mansion		209,863,824.96	Mortgage of bank
			borrowings
Suzhou • World View	510,771,726.00	704,204,295.05	Mortgage of bank
			borrowings
Suzhou • No. 1Kefu Road	428,786,500.36		Mortgage of bank
			borrowings
Suzhou • Nature Garden		286,058,227.25	Mortgage of bank
			borrowings
Rugao • Jinke World City		83,399,934.13	Mortgage of bank
			borrowings
Zhengzhou • Jinke City	431,359,925.66		Mortgage of bank
			borrowings
Yunnan • Jinke Times Center	1,243,092,959.57		Mortgage of bank
			borrowings
Xinjiang • Jinke Bridge Village	1,267,708,662.73	646,671,546.09	Mortgage of bank
			borrowings
Subtotal	18,093,358,238.81	18,303,055,894.48

— 404 —

FINANCIAL INFORMATION OF JINKE PROPERTY

APPENDIX II

• (5) Other descriptions

1) Inventories — development cost

		Estimated time	Estimated total	Amount at	Amount at the
	Commencement	of completion	investment	the end of	beginning of
Item name	time	[note]	(RMB’0,000)	the period	the period
Chongqing • Jinke Star	January 2015	May 2018	96,504.00	274,111,293.39	335,284,285.92
Chongqing Hechuan •	January 2014	January 2017	67,803.00	127,100,732.54	519,742,471.79
Nature City Project
Chongqing Jiangjin •	April 2013	April 2017	154,727.00	451,265,863.23	525,888,375.36
Jinke World City
Chongqing Jiangjin •	August 2013	April 2017	216,647.00	437,834,667.77	970,040,488.15
Jinke Central Park
Chongqing • Jinke Bridge	July 2010	May 2017	720,000.00	182,576,708.27	801,998,050.15
Village
Chongqing • Jinke Sun	November 2009	October 2016	200,000.00		51,151,068.90
Coast
Chongqing • Jinke	June 2011	August 2017	334,267.00	24,142,287.31	907,998,536.55
Central Imperial
Garden
Chongqing Bishan • Jinke	January 2012	May 2017	287,557.70	496,952,903.37	1,074,700,008.13
Central Park
Chongqing Beibei • Jinke	July 2013	July 2017	358,772.00	703,849,114.26	2,327,898,665.39
City
Chongqing • Wansheng	March 2014	January 2018	83,794.00	83,815,998.14	461,090,736.21
Jinke China Health City
Chongqing • Jinke Times	April 2013	June 2017	387,420.00	755,325,041.36	1,166,011,226.41
Center
Chongqing • Jinke	April 2016	January 2018	300,000.00	1,268,991,190.70
Tianyuan Road (Phase
I)
Chongqing • Jinke	December 2016	October 2018	240,000.00	803,716,696.34
Tianyuan Road (Phase
II)
Chongqing • Xiyong	June 2014	April 2017	465,800.00	1,612,447,374.47	2,436,179,156.55
Tianchen
Chongqing • Xiyong	January 2016	September 2017	380,000.00	1,599,370,036.13	1,321,425,954.26
Tianchen (Phase II)
Chongqing • Jinke	January 2015	August 2017	190,000.00	508,788,040.46	681,925,404.05
Konggang City
Chongqing • Jinke	September 2014	October 2018	113,216.00	80,552,761.27	554,049,375.56
Central Washington
Chongqing Nanchuan •	November 2014	June 2017	290,000.00	495,551,599.55	843,725,555.38
Jinke World City
Chongqing Wushan •	December 2015	July 2017	220,000.00	411,802,548.19	157,119,315.89
Jinke City (Phase I)

— 405 —

APPENDIX II

FINANCIAL INFORMATION OF JINKE PROPERTY

		Estimated time	Estimated total	Amount at	Amount at the
	Commencement	of completion	investment	the end of	beginning of
Item name	time	[note]	(RMB’0,000)	the period	the period
Chongqing Kaixian •	July 2011	December 2017	287,247.52	42,197,664.89	570,864,072.63
Jinke Kaizhou City
Chongqing • Kaixian	September 2012	June 2017	38,000.00	7,648,639.03	50,020,775.47
Jinke Grand Hotel
Chongqing Kaixian •	December 2012	August 2017	187,599.38	352,072,770.62	536,249,197.64
Jinke Wealth Center
Chongqing Kaixian •	August 2015	September 2017	100,000.00	548,084,619.00	309,968,201.70
Vega de la Reina
Project
Chongqing Kaixian •	September 2016	April 2018	221,384.00	375,584,843.64
Zhaiziping Project
Chongqing Kaixian • East	November 2016	August 2018	31,980.00	115,269,455.45
37 Mu Project
Chongqing Yunyang •	February 2014	April 2017	304,850.00	1,320,979,602.83	1,404,438,835.30
Jinke World City
Chongqing • Wanzhou	June 2015	April 2018	300,000.00	1,109,660,055.22	839,917,849.84
Jinke Guanlan
Chongqing Fuling • Jinke	August 2011	April 2017	222,043.00	311,127,882.55	602,402,742.05
Central Park
Chongqing Changshou •	July 2012	May 2017	133,112.00	9,101,877.24	6,981,274.84
Jinke Sunshine Town
Chongqing Fuling • Jinke	April 2013	October 2017	151,904.00	40,201,359.81	872,101,414.57
Nature City
Chongqing Fuling • Jinke	June 2015	May 2017	232,214.00	1,254,281,878.19	960,307,096.32
Nanhu Project
Chongqing Changshou •	June 2013	March 2017	437,603.00	1,336,070,319.23	1,963,156,808.93
Jinke World City
Chongqing Fengdou •	July 2014	September 2017	250,000.00	282,148,034.35	570,969,887.26
Jinke Golden Coast
Chongqing Yongchuan •	August 2010	September 2017	142,000.00	10,679,550.89	37,821,842.96
Jinke Central Park
Chongqing Yongchuan •	December 2010	May 2017	148,650.00	86,814,478.54	136,258,490.99
Jinke Sunshine Town
Chongqing Yongchuan •	June 2014	August 2017	150,000.00	499,961,862.29	724,306,409.12
Jinke Park Palace
Chongqing Rongchang •	December 2015	November 2017	429,228.00	468,507,751.97	636,611,162.26
Jinke World City
Chongqing Dazu • Jinke	December 2012	February 2017	240,392.00	447,391,980.68	749,080,351.61
Central Park
Chengdu • Jinke Center	December 2012	April 2016	125,000.00		174,211,930.90
Chengdu • Jinke Star	May 2015	December 2017	101,229.01	673,271,044.67	480,579,890.39
City
Chengdu • Jinke Bridge	April 2010	May 2017	198,982.00	49,591,526.07	336,409,300.06
Village

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FINANCIAL INFORMATION OF JINKE PROPERTY

		Estimated time	Estimated total	Amount at	Amount at the
	Commencement	of completion	investment	the end of	beginning of
Item name	time	[note]	(RMB’0,000)	the period	the period
Chengdu • Jinke Oriental	December 2014	March 2017	150,000.00	747,284,846.03	603,318,628.20
Elegance County
Chengdu • Jinke	October 2015	August 2017	96,000.00	665,088,502.74	549,628,888.85
Shuangnan City
Chengdu • Jinke Tianchen	October 2016	March 2019	145,275.00	316,887,698.72
Suining • Jinke Beautiful	August 2015	October 2017	140,000.00	416,344,980.14	288,606,414.67
Bay Project
Neijiang • Jinke Central	July 2012	April 2020	170,000.00	107,915,747.31	115,551,079.41
Park
Neijiang • Jinke Park	October 2013	August 2017	350,000.00	679,760,080.31	1,615,750,821.67
Palace
Neijiang • Times Center	April 2014	June 2017	160,000.00	77,948,214.00	597,064,620.18
Beijing • Jinke Napa	October 2010	December 2016	449,564.00		1,607,667,740.11
House
Beijing • Jinke Center	December 2014	November 2017	444,124.52	3,496,844,014.43	3,068,387,422.34
Jinan • Jinke World City	April 2014	April 2017	383,260.00	1,494,848,836.41	2,179,788,609.31
Qingdao • Jinke Star	August 2015	August 2017	195,651.00	1,694,100,909.94	1,286,245,443.03
Qingdao • Jinke Sunshine	April 2014	September 2019	175,000.00	304,098,927.26	557,227,542.68
Town
Jinan Zhangqiu • Jinke	April 2016	May 2019	72,000.00	139,924,346.24
Lanhai Project
Jinan Zhangqiu • Jinke	December 2016	December 2018	26,000.00	5,237,577.77
Linghang Project
Liuyang • Tianhu New	October 2011	July 2018	175,338.00	576,653,459.18	480,122,382.26
City
Changsha • Jinke World	January 2009	September 2017	157,775.97	303,191,434.43	543,163,382.78
City
Changsha • Jinke Center	April 2013	March 2017	229,411.00	648,395,838.90	1,357,448,300.97
Chenzhou • Central Park	February 2014	April 2019	182,732.00	156,214,996.19	419,939,149.76
Chenzhou • Nanling	November 2012	May 2017	80,000.00	300,100,059.23	275,527,025.15
Eco-city “By the Water
Side”
Wuxi • Milan Garden B	August 2010	December 2017	77,166.00	31,780,774.97	34,208,454.31
Wuxi • Milan Garden A	August 2010	December 2018	157,849.33	41,970,458.55	51,231,990.50
Wuxi • Chengnan	June 2010	October 2017	515,579.11	657,288,716.21	1,294,800,071.56
Aristocratic Family
Wuxi • Wealth	January 2013	May 2018	144,310.39	536,871,619.44	491,453,188.63
Commercial Plaza
Zhangjiagang • Bridge	July 2012	December 2017	187,276.00	56,035,476.92	632,751,372.62
Court
Zhangjiagang • Bridge	August 2013	December 2017	112,552.00	61,798,218.61	279,663,824.96
Mansion
Suzhou • Nature Garden	April 2013	December 2016	167,385.60		626,197,968.26
Suzhou • World View	October 2014	November 2017	118,340.00	503,629,982.68	704,204,295.05

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APPENDIX II

FINANCIAL INFORMATION OF JINKE PROPERTY

		Estimated time	Estimated total	Amount at	Amount at the
	Commencement	of completion	investment	the end of	beginning of
Item name	time	[note]	(RMB’0,000)	the period	the period
Suzhou • No. 1 Kefu	March 2016	November 2017	70,994.50	426,069,614.36
Road
Nantong • Bridge	January 2016	November 2018	76,107.00	313,612,788.13
Waterfront
Jiangsu Rugao • Jinke	July 2013	December 2017	114,192.00	401,059,499.51	506,994,217.37
World City
Zhengzhou • Wawuli New	December 2015	August 2017	221,225.00	407,403,316.86
Residence
Zhengzhou • Jinke City	July 2016	November 2018	403,095.00	2,161,105,022.85
Zhengzhou • Jinke Nature	December 2016	November 2019	88,641.81	71,254,842.94
City
Zhengzhou • Flourishing	December 2016	December 2019	800,000.00	26,697,742.27
Zhongyuan
(resettlement area)
Xi’an • Jinke Nature City	November 2013	December 2017	226,414.56	982,364,110.49	1,212,839,368.29
Xianyang • Jinke World	November 2014	November 2018	337,391.33	799,877,095.44	548,170,917.41
City
Hefei • Peninsula No. 1	August 2014	May 2017	115,507.00	1,014,026,928.48
Nanjing • Jinke World	August 2016	December 2018	270,266.00	772,419,571.81
View Mountain Villa
Yunnan • Jinke Times	November 2015	December 2017	200,000.00	1,235,510,563.09	921,926,676.14
Center
Zunyi • Jinke Central	September 2015	June 2017	249,138.00	764,354,512.36	710,234,953.59
Park
Xinjiang • Jinke	June 2013	May 2017	146,111.00	274,924,356.21	346,271,340.41
Household Appliances
Expo
Xinjiang • Jinke Vega de	October 2015	October 2018	96,053.00	444,004,861.66	136,658,075.97
la Reina Project
Xinjiang • Jinke Central	June 2013	August 2017	197,737.00	226,465,146.10	202,146,714.86
Asia Household
Appliances Expo Park
Xinjiang • Jinke Bridge	June 2013	September 2017	218,746.00	1,247,342,402.85	568,962,227.09
Village
Hunan • Changsha	April 2016	July 2017	147,706.00	408,977,396.79
Science and Technology
City Project
Chongqing • Liangjiang	August 2016	December 2017	231,322.24	466,420,170.97
Health, Science and
Technology City
Subtotal			19,082,229.77	46,122,947,713.69	51,913,039,317.88

Note: If the project is developed and delivered by phases, estimated time of completion shall be based on the building which is completed most recently from the balance sheet date.

— 408 —

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FINANCIAL INFORMATION OF JINKE PROPERTY

2) Inventories — products to be developed

	Estimated		Estimated total	Amount at	Amount at the
	commencement	Estimated time of	investment	the end of	beginning of the
Item name	time	completion [note]	(RMB’0,000)	the period	period
Chongqing • Jinke	June 2016	January 2018	300,000.00		680,762,577.76
Tianyuan Road (Phase I)
Chongqing • Jinke	December 2016	October 2018	240,000.00		569,514,210.32
Tianyuan Road (Phase
II)
Chongqing • Jinke Jiuquhe	February 2017	December 2020	300,000.00	596,313,912.02
Project
Chongqing • Dadukou Star	April 2017	March 2019	85,000.00	50,419,960.00
Phase 3
Chongqing Fengdou •	January 2019	July 2020	70,000.00	140,000,000.00
Jinke Golden Coast
Chengdu • Jinke Oriental	January 2017	April 2019	32,000.00	111,483,222.84
Elegance County
Chengdu • Jinke Tianchen	February 2017	December 2019	79,267.43	144,584,825.04
Neijiang • Jinke Park	April 2017	April 2019	350,000.00	505,539,114.31
Palace
Neijiang • Times Center	June 2017	November 2019	160,000.00	162,728,846.84
Jinan • Jinke World City	August 2017	October 2019	384,000.00	1,067,211,535.43	1,241,436,080.14
Chenzhou • Central Park	March 2018	October 2020	88,000.00	132,425,428.55
Nantong • Bridge	December 2016	November 2018	63,345.00		227,428,501.11
Waterfront
Jiangsu Rugao • Jinke	September 2017	September 2022	118,591.00	267,229,380.00
World City
Zhengzhou • Jinke City	April 2018	May 2020	101,407.00	220,402,687.43
Zhengzhou • Jinke Nature	May 2017	November 2019	118,000.00	299,692,540.00
City
Yunnan • Jinke Times	October 2017	July 2020	108,478.00	273,434,547.88	273,134,388.46
Center
Hunan • Changsha Science	May 2017	September 2019	41,175.00	155,505,881.00	374,865,402.68
and Technology City
Project
Subtotal			2,521,263.43	4,126,971,881.34	3,367,141,160.47

Note: If the project is developed and delivered by phases, estimated time of completion shall be based on the building which is completed most recently from the balance sheet date.

— 409 —

APPENDIX II

FINANCIAL INFORMATION OF JINKE PROPERTY

3) Inventories — developed products

		Amount at the			Amount at
	Time of	beginning of the	Increase in the	Decrease in the	the end of
Item name	completion [note]	period	current period	current period	the period
Chongqing • Jinke	November 2012	33,766,961.50		2,857,767.14	30,909,194.36
VISAR International
Chongqing • Ants	April 2008	28,368,469.60		587,339.59	27,781,130.01
SOHO
Chongqing • Eastern	December 2015	15,942,257.42		1,510,891.81	14,431,365.61
Palace
Chongqing • Jinke	March 2015	3,037,399.58			3,037,399.58
Oriental Elegance
County
Chongqing • Jinke	December 2013	218,558,664.96	41,100,912.00	15,528,804.18	244,130,772.78
Sunshine Town
Chongqing • Tianhu	November 2009	28,561,836.20			28,561,836.20
Town
Chongqing • Jinke	July 2014	180,605,877.18		17,984,634.61	162,621,242.57
World City
Chongqing • Jinke Star	December 2016		354,799,695.88	253,054,436.04	101,745,259.84
Chongqing Hechuan •	March 2015	263,716,696.19		135,647,539.78	128,069,156.41
Jinke World City
Chongqing Hechuan •	May 2016		463,977,702.99	344,249,891.22	119,727,811.77
Nature City Project
Chongqing Jiangjin •	June 2016	177,438,436.34	156,218,965.47	181,980,186.00	151,677,215.81
Jinke World City
Chongqing Jiangjin •	October 2016	35,854,307.85	882,403,631.90	589,133,851.85	329,124,087.90
Jinke Central Park
Chongqing • Xiangjiang	September 2002	2,728,703.35			2,728,703.35
Garden
Chongqing • Jinke	September 2014	110,346,535.08		30,493,600.00	79,852,935.08
Oriental Palace
Chongqing • Jinke	June 2016	1,246,388,011.40	948,510,792.05	997,089,250.31	1,197,809,553.14
Bridge Village
Chongqing • Jinke	January 2010	4,910,374.91		2,428,576.74	2,481,798.17
Small Town Story
Chongqing • Jinke Sun	November 2014	108,679,584.79		16,539,245.70	92,140,339.09
Coast
Chongqing • Jinke	March 2012	116,734,820.03	25,724,352.30	12,252,960.04	130,206,212.29
Xicheng Courtyard
Chongqing • Jinke	October 2016	636,148,490.76	1,037,294,211.72	1,008,673,750.46	664,768,952.02
Central Imperial Garden
Chongqing Bishan •	June 2016	139,751,369.72	778,301,746.73	533,889,048.30	384,164,068.15
Jinke Central Park
Chongqing Beibei •	November 2016	21,581,190.93	2,063,963,265.40	1,415,471,466.21	670,072,990.12
Jinke City

— 410 —

APPENDIX II

FINANCIAL INFORMATION OF JINKE PROPERTY

		Amount at the			Amount at
	Time of	beginning of the	Increase in the	Decrease in the	the end of
Item name	completion [note]	period	current period	current period	the period
Chongqing • Wansheng	December 2016	137,042,975.82	333,934,760.33	56,562,943.07	414,414,793.08
Jinke China Health
City
Chongqing • Jinke	April 2016	599,155,354.00	553,265,694.89	956,642,701.59	195,778,347.30
Times Center
Chongqing • Jinsha	December 2007	18,233,324.79			18,233,324.79
Waterfront
Chongqing • Yunhu City	January 2010	49,755,472.41			49,755,472.41
Chongqing • Green Park	December 2009	35,938,042.54			35,938,042.54
Chongqing • Jinke Ten	November 2013	88,989,084.43		18,038,897.63	70,950,186.80
Years City
Chongqing • China	October 2005	40,211,845.52			40,211,845.52
Town
Chongqing • Xiyong	December 2016		1,357,318,188.96	625,591,375.41	731,726,813.55
Tianchen
Chongqing • Jinke	December 2016		353,036,462.81	272,389,287.50	80,647,175.31
Konggang City
Chongqing • Jinke	October 2016		642,878,268.06		642,878,268.06
Central Washington
Chongqing Nanchuan •	December 2016		702,112,422.69	374,803,648.54	327,308,774.15
Jinke World City
Chongqing Kaixian •	July 2016	157,889,325.25	723,963,053.34	547,832,496.43	334,019,882.16
Jinke Kaizhou City
Chongqing Kaixian •	November 2016	49,775,770.43	343,606,965.92	243,946,727.62	149,436,008.73
Jinke Wealth Center
Chongqing Yunyang •	September 2016		516,862,940.50	467,881,037.51	48,981,902.99
Jinke World City
Chongqing • Jinke Lake	December 2015	11,965,915.80		3,013,455.69	8,952,460.11
Town
Chongqing Fuling •	January 2015	61,119,221.79			61,119,221.79
Jinke World Corridor
B
Chongqing Fuling •	October 2016	139,046,014.65	314,568,964.18	104,907,732.00	348,707,246.83
Jinke Central Park
Chongqing Fuling •	October 2013	208,975,988.22		5,428,896.52	203,547,091.70
Jinke World Corridor
A
Chongqing Changshou •	October 2015	596,711,741.65		337,763,485.89	258,948,255.76
Jinke Sunshine Town
Chongqing Fuling •	October 2016	55,203,780.18	939,014,115.88	798,711,427.42	195,506,468.64
Jinke Nature City
Chongqing Changshou •	October 2016		885,761,000.88	790,531,099.61	95,229,901.27
Jinke World City
Chongqing Fengdou •	November 2016		495,795,127.38	248,606,512.92	247,188,614.46
Jinke Golden Coast

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APPENDIX II

FINANCIAL INFORMATION OF JINKE PROPERTY

		Amount at the			Amount at
	Time of	beginning of the	Increase in the	Decrease in the	the end of
Item name	completion [note]	period	current period	current period	the period
Chongqing Yongchuan •	February 2014	98,847,653.54		2,745,097.97	96,102,555.57
Jinke Central Park
Chongqing Yongchuan •	April 2016	161,241,351.34	125,349,627.14	183,817,915.43	102,773,063.05
Jinke Sunshine Town
Chongqing Yongchuan •	September 2016		437,682,979.38	216,757,808.67	220,925,170.71
Jinke Park Palace
Chongqing Rongchang •	February 2016	258,648,246.36	333,667,215.68	382,563,354.57	209,752,107.47
Jinke World City
Chongqing Dazu • Jinke	August 2016	120,144,448.43	535,183,490.13	477,221,779.00	178,106,159.56
Central Park
Chengdu • Jinke	December 2012	11,106,257.36			11,106,257.36
Yicheng
Chengdu • Jinke Center	April 2016	432,733,760.05	240,356,165.34	177,952,050.19	495,137,875.20
Chengdu• Jinke Bridge	May 2016	818,812,986.12	389,155,452.14	354,951,644.64	853,016,793.62
Village
Chengdu • Jinke Nature	November 2014	157,397,620.04		26,690,929.08	130,706,690.96
City
Neijiang • Jinke Central	July 2016	411,312,788.18	245,078,473.46	150,288,423.02	506,102,838.62
Park
Neijiang • Jinke Park	December 2016		829,846,051.37	535,216,122.05	294,629,929.32
Palace
Neijiang • Times Center	July 2016		457,150,882.68	232,405,957.04	224,744,925.64
Beijing • Patio Palace	June 2012	10,145,826.81		10,145,826.81
Beijing • Jinke Napa	December 2016	1,201,834,824.25	1,867,687,432.47	1,271,413,698.20	1,798,108,558.52
House
Beijing • Jinke Bridge	October 2015	84,506,872.75	4,020,299.19	48,129,027.58	40,398,144.36
Garden
Jinan • Jinke World	July 2016		1,458,771,006.86	1,185,261,588.31	273,509,418.55
City
Qingdao • Jinke	November 2016	82,278,654.72	461,055,256.53	132,078,538.61	411,255,372.64
Sunshine Town
Changsha • Flourishing	August 2015	261,108,203.39		103,101,511.70	158,006,691.69
Oriental Courtyard
Liuyang • Tianhu New	April 2015	620,161,843.87		63,929,318.25	556,232,525.62
City
Changsha • Jinke World	December 2016	311,853,444.60	387,415,195.66	465,010,889.38	234,257,750.88
City
Changsha • Jinke Center	January 2016		910,010,927.43	470,415,918.69	439,595,008.74
Chenzhou • Central	November 2016	76,429,586.47	362,937,244.77	182,024,034.30	257,342,796.94
Park
Chenzhou • Nanling	December 2016	161,482,189.47	39,554,423.44	35,466,370.80	165,570,242.11
Eco-city “By the
Water Side”
Wuxi • Jinke Eastern	January 2013	58,447,587.73		3,599,236.49	54,848,351.24
Palace

— 412 —

APPENDIX II

FINANCIAL INFORMATION OF JINKE PROPERTY

		Amount at the			Amount at
	Time of	beginning of the	Increase in the	Decrease in the	the end of
Item name	completion [note]	period	current period	current period	the period
Wuxi • Jinke Dream	January 2015	50,421,077.16		3,901,592.97	46,519,484.19
House
Wuxi • Jinke Wanbo	January 2015	242,745,431.32		154,138,736.71	88,606,694.61
Plaza
Wuxi • Milan Garden B	August 2012	101,195,711.97			101,195,711.97
Wuxi • Milan Garden A	January 2015	391,477,355.91		50,284,134.31	341,193,221.60
Wuxi • Chengnan	November 2016	1,191,735,300.82	730,938,496.04	858,817,108.95	1,063,856,687.91
Aristocratic Family
Wuxi • Wealth	November 2016	975,541,402.68	174,455,762.89	996,884,807.99	153,112,357.58
Commercial Plaza
Jiangyin • Fairview	June 2012	9,362,273.32		1,244,840.51	8,117,432.81
Garden
Jiangyin • Oriental	October 2012	11,182,882.06		6,828,638.30	4,354,243.76
Courtyard
Jiangyin • Oriental	September 2015	234,110,932.86		75,176,979.28	158,933,953.58
Mansion
Zhangjiagang • Bridge	November 2016	394,001,522.34	759,268,590.09	705,214,643.62	448,055,468.81
Court
Zhangjiagang • Bridge	June 2016	389,364,903.04	224,578,553.14	431,458,585.66	182,484,870.52
Mansion
Suzhou • Scene	August 2015	1,036,499,010.07		446,408,584.91	590,090,425.16
Mansion
Suzhou • Nature Garden	December 2016	126,809,446.03	845,980,749.06	935,282,544.97	37,507,650.12
Suzhou • World View	November 2016		452,627,181.53	420,421,513.96	32,205,667.57
Nantong • Bridge	September 2015	561,406,052.12		191,332,973.89	370,073,078.23
Waterfront
Jiangsu Rugao • Jinke	December 2015	613,312,751.85		457,772,208.78	155,540,543.07
World City
Xi’an • Jinke Nature	November 2016		558,636,803.40	461,103,500.77	97,533,302.63
City
Hefei • Peninsula No. 1	June 2016		618,074,728.96	287,202,728.52	330,872,000.44
Zunyi • Jinke Central	December 2016		386,734,293.56	369,205,771.94	17,528,521.62
Park
Xinjiang • Jinke	May 2016		246,700,074.58	79,155,788.51	167,544,286.07
Household Appliances
Expo
Xinjiang • Jinke Bridge	September 2015	76,392,929.68	6,997,219.10		83,390,148.78
Village
Chongqing • Meishe	October 2005	3,434,459.41			3,434,459.41
Project
Subtotal		17,370,621,433.39	29,004,327,818.28	25,055,047,690.66	21,319,901,561.01

Note: If the project is developed and delivered by phases, time of completion shall be based on the building which is completed most recently from the balance sheet date.

— 413 —

APPENDIX II

FINANCIAL INFORMATION OF JINKE PROPERTY

• 4) Inventories — leased products developed

	Amount at the	Increase in		Amount at the
	beginning of the	the current	Decrease in the	end of the
Item name	period	period	current period	period
Chongqing • Jinke Sunshine Town	12,371,752.25		379,377.84	11,992,374.41
Chongqing • Jinsha Waterfront	8,691,398.23		323,797.20	8,367,601.03
Chongqing • Yunhu City	31,043,425.24		1,105,058.76	29,938,366.48
Chongqing • Jinke Ten Years City	21,330,212.66		2,154,815.32	19,175,397.34
Chongqing • Bridge Waterfront	10,462,430.00	518,989.65	298,067.16	10,683,352.49
Chongqing • VISAR International	19,535,720.50	512,418.95	459,000.12	19,589,139.33
Chongqing Kaixian • Kaizhou City
(Phase II)	41,943,689.07			41,943,689.07
Chongqing • Jinke Xicheng Courtyard	28,034,076.80		876,126.12	27,157,950.68
Chongqing • Jinke Bridge Village	28,932,920.91		5,820,383.45	23,112,537.46
Chongqing Fuling • Jinke Golden Coast	3,463,332.53		102,337.92	3,360,994.61
Chongqing • Jinke Lake Town	5,912,853.14		176,661.84	5,736,191.30
Chongqing Fuling • Jinke World
Corridor District A	53,954,138.69	831,980.63	1,600,816.97	53,185,302.35
Chongqing Changshou • Jinke Sunshine
Town		13,361,992.98	470,974.77	12,891,018.21
Chongqing Changshou • Jinke World
City		23,284,319.88	231,470.88	23,052,849.00
Chongqing Yongchuan • Jinke Central
Park	47,991,135.19		1,636,963.54	46,354,171.65
Chongqing • Rongchang World City
(Phase II)	7,985,689.42		219,233.88	7,766,455.54
Chongqing • Chayuan Flower Street
Project	16,856,387.40		469,204.80	16,387,182.60
Chongqing • Jiangjin World City	2,113,822.71	5,543,351.93	155,442.16	7,501,732.48
Liuyang • Tianhu New City	38,887,803.11		1,105,904.40	37,781,898.71
Changsha • Jinke World City		25,568,948.53	7,455,673.91	18,113,274.62
Changsha • Jinke Center		14,509,264.22	56,847.56	14,452,416.66
Suzhou • Scene Mansion		37,624,200.86		37,624,200.86
Subtotal	379,510,787.85	121,755,467.63	25,098,158.60	476,168,096.88

— 414 —

FINANCIAL INFORMATION OF JINKE PROPERTY

APPENDIX II

1. Other current assets

2. (1) Details

		Amount at the
	Amount at the end	beginning of the
Item	of the period	period
Pending turnover taxes	1,538,897,200.76	2,483,108,834.11
VAT to be deducted	182,888,360.40	130,240,495.66
Total	1,721,785,561.16	2,613,349,329.77

• (2) Other descriptions

The business tax, city maintenance and construction tax, education surcharge, local education surcharge and land value added tax paid as per the statutory tax rate for the not-carried-over income from advance payments for commodity houses as well as deductible VAT input tax were stated by the Company as other current assets.

8. Available-for-sale financial assets

(1) Details

	Amount at the end of the period	Amount at the end of the period	**Amount at the **	**beginning of **	the period
		Provision for	Provision for
Item	Book balance	impairment Book value	Book balance	impairment	Book value
Available-for-sale equity
instruments	115,456,732.98	115,456,732.98	115,456,732.98		115,456,732.98
Including: Those
measured on the basis
of cost	115,456,732.98	115,456,732.98	115,456,732.98		115,456,732.98
Others [note]	200,000,000.00	200,000,000.00	100,000,000.00		100,000,000.00
Total	315,456,732.98	315,456,732.98	215,456,732.98		215,456,732.98

Note: The subsidiary Chongqing Jinke Liangjiang Hotel Co., Ltd. subscribed for secondary asset-backed securities of RMB100 million in the CMS Super Value — Jinke Co., Ltd. Accounts Receivable (Phase I) Asset-backed Plan in the current period.

— 415 —

APPENDIX II

FINANCIAL INFORMATION OF JINKE PROPERTY

• (2) Available-for-sale financial assets measured on the basis of cost at the end of the period

Book balance Amount at the Amount at the beginning of the Increase in the Decrease in the end of the Invested entity period current period current period period USUM Investment Group Co., Ltd. 115,456,732.98 115,456,732.98 Subtotal 115,456,732.98 115,456,732.98

Invested entity Provision for impairment Percentage of Amount at the Increase in Decrease in Amount at the equity in the Cash bonus of beginning of the current the current end of the invested entity the current the period period period period (%) period USUM Investment Group Co., Ltd. 2.92 Subtotal

1. Long-term equity investment

2. (1) Classified details

	Amount at the end of the period	Amount at the end of the period	Amount at the end of the period	**Amount at the beginning of **	**Amount at the beginning of **	the period
		Provision for			Provision for
Item	Book balance	impairment	Book value	Book balance	impairment	Book value
Investment in associated
enterprises	573,173,954.16		573,173,954.16	181,090,457.45		181,090,457.45
Investment in joint
ventures	213,066,529.18		213,066,529.18	209,996,804.01		209,996,804.01
Total	786,240,483.34		786,240,483.34	391,087,261.46		391,087,261.46

— 416 —

APPENDIX II

FINANCIAL INFORMATION OF JINKE PROPERTY

(2) Details

		Increase/decrease in the current period	Increase/decrease in the current period	Increase/decrease in the current period	Increase/decrease in the current period
				Investment	Adjustments
				gains/losses	to other
	Amount at the			confirmed	consolidated
	beginning of	Investment	Investment	based on	income Joint
Invested entity	the period	added	reduced	equity method	venture
Xinjiang Jinke New Energy Equity
Investment Joint Venture (limited
partnership)	200,000,000.00			3,143,272.17
Yunnan Jinwanzhong Real Estate
Development Co., Ltd.	9,996,804.01			-73,547.00
Subtotal	209,996,804.01			3,069,725.17
Associated enterprises
Chongqing Yinhai Finance Leasing Co.,
Ltd.	77,833,295.02			3,721,519.41
Wujiang Jinke Yangzi Real Estate
Development Co., Ltd.	103,257,162.43			-103,257,162.43
Nanning Sunac Shicheng Property Co.,
Ltd.		490,000,000.00		-337,666.24
Wujiaqu Xuelian Jinke Education
Management Co., Ltd.		410,000.00		-1,515.48
Qianhai Botong (Shenzhen) Fund
Management Co., Ltd.		9,000,000.00		-1,936,945.68
Subtotal	181,090,457.45	499,410,000.00		-101,811,770.42
Total	391,087,261.46	499,410,000.00		-98,742,045.25

— 417 —

FINANCIAL INFORMATION OF JINKE PROPERTY

APPENDIX II

	**Increase/decrease in **	**Increase/decrease in **	the current period			Balance of
		Cash dividends				provision for
		or profits	Provision		Amount at the	impairment at
	Other equity	announced to	withdrawn for		end of the	the end of the
Invested entity	changes	be distributed	impairment	Others	period	period
Joint venture
Xinjiang Jinke New
Energy Equity
Investment Joint
Venture (limited
partnership)					203,143,272.17
Yunnan Jinwanzhong Real
Estate Development
Co., Ltd.					9,923,257.01
Subtotal					213,066,529.18
Associated enterprises
Chongqing Yinhai
Finance Leasing Co.,
Ltd.		5,514,732.87			76,040,081.56
Wujiang Jinke Yangzi
Real Estate
Development Co., Ltd.
Nanning Sunac Shicheng
Property Co., Ltd.
[Note 1]					489,662,333.76
Wujiaqu Xuelian Jinke
Education Management
Co., Ltd.					408,484.52
Qianhai Botong
(Shenzhen) Fund
Management Co., Ltd.
[Note 2]					7,063,054.32
Subtotal		5,514,732.87			573,173,954.16
Total		5,514,732.87			786,240,483.34

Note 1: According to the “Cooperative Development Agreement on the South Anji Project in Nanning” signed between the Company and Chongqing SUNAC Foundation Real Estate Development Co. Ltd. (hereinafter referred to as “Chongqing SUNAC”), the two parties simultaneously increased capital in the project company originally set up by Chongqing SUNAC - Nanning Sunac Shicheng Property Co., Ltd. (hereinafter referred to as “Nanning Sunac”). After the capital increase, Chongqing SUNAC holds 51% equity in Nanning Sunac and the Company holds 49% equity in Nanning Sunac. Since the Company has a significant impact on Nanning Sunac, it was included in associated enterprise accounting.

• Note 2: According to the Capital Increase Agreement signed between subsidiary Shenzhen Jinke Industry Investment Fund Management Co., Ltd. (hereinafter referred to as the “Jinke Industry Investment Fund”) and Shenzhen Qianhai Capital Management Co., Ltd. (hereinafter referred to as “Qianhai Capital”), the two parties simultaneously increased capital in Qianhai Botong (Shenzhen) Fund Management Co., Ltd. (hereinafter referred to as “Qianhai Botong”) which was originally set up by Jinke Industry Investment Fund. After the increase capital, the two parties each held 50% equity in Qianhai Botong. According to the agreement, Jinke Industry Investment Fund has a significant impact on Qianhai Botong, so it was included in associated enterprise accounting.

— 418 —

APPENDIX II

FINANCIAL INFORMATION OF JINKE PROPERTY

1. Investment property

2. (1) Details

	Houses and
Item	buildings	Total
Amount at the beginning of the period	2,888,950,566.79	2,888,950,566.79
Changes in the current period
Add: Inventory transfer in
Less: Other transfer out	66,825,264.30	66,825,264.30
Change in fair value	63,367,452.14	63,367,452.14
Amount at the end of the period	2,885,492,754.63	2,885,492,754.63

• (2) Details about investment property subsequently measured at fair value

		Increase in		Decrease in
	Fair value at the	investment	Change in fair	investment	Fair value
	beginning of the	property in the	value in the	property in the	at the end of
Item	period	current period	current period	current period	the period
Red Star Macalline
Furniture Hall	1,311,244,026.79		8,210,572.79		1,319,454,599.58
The 4th and 5th floor and
parking space of
Tianwangxing Office
Building	27,734,351.00		-558,636.00		27,175,715.00
Commercial housing on
floor B1 of Jinke
Sunshine Town	39,559,627.80		1,541,284.20	41,100,912.00
Office building at Qingyang
District, Chengdu	5,092,880.00		225,262.00		5,318,142.00
Shopping mall and
warehouse on floor B1 of
Hechuan World City	30,862,627.39		-772,587.62		30,090,039.77
Shopping mall and
warehouse on floor B1 of
Jinke Kaizhou City	25,880,223.81		-857,365.53		25,022,858.28
Underground supermarket in
Xicheng Courtyard	24,032,830.00		1,691,522.30	25,724,352.30
Jinke • Fuling World
Corridor District B	1,424,544,000.00		53,887,400.00		1,478,431,400.00
Total	2,888,950,566.79		63,367,452.14	66,825,264.30	2,885,492,754.63

— 419 —

APPENDIX II

FINANCIAL INFORMATION OF JINKE PROPERTY

				Appreciation rate
			Rent income in	calculated at fair
			the current	value at the end
Item	Location	Floor area	period	of the period
Red Star Macalline Furniture Hall	No. 888, Xinnan Road,	106,927.62	41,500,098.40	0.63%
	Tiangongdian Street, Yubei
	District, Chongqing
The 4th and 5th floor and parking	No. 68, Xingguang Avenue,	2,618.18	1,830,557.14	-2.01%
space of Tianwangxing Office	Hi-Tech Park, New North Zone,
Building	Chongqing
Commercial housing on floor B1	Jinke Star City, No. 184-12 and	5,708.46		3.90%
of Jinke Sunshine Town	No. 184-13, Xinnan Road, Yubei
	District, Chongqing
Office building at Qingyang	No. 308, Shuncheng Street,	489.70	363,602.35	4.42%
District, Chengdu	Qingyang District, Chengdu
Shopping mall and warehouse on	Building 23, No. 5, Hongshi	2,415.88	512,900.00	-2.50%
floor B1 of Hechuan World	Avenue, Jiulong Park Street,
City	Jiulongpo District
Shopping mall and warehouse on	Building 22, No. 5, Hongshi	4,935.98	41,664.80	-3.31%
floor B1 of Jinke Kaizhou City	Avenue, Jiulong Park, Jiulongpo
	District
Underground supermarket in	Underground supermarket at	3171.93	347,556.00	7.04%
Xicheng Courtyard	Building 19, No. 5, Hongshi
	Avenue, Jiulong Park, Jiulongpo
	District
Jinke • Fuling World Corridor	No. 6, Zhongshan Road, Fuling	94,089.73	18,228,201.23	3.78%
District B	District, Chongqing
Total		220,357.48	62,824,579.92

• (3) Other descriptions

• 1) To meet operation needs, the Company’s President’s Office Association decided to sell the underground supermarket in Xicheng Courtyard (3,171.93 m[2] of commercial houses) and floor B1 of Jinke Sunshine Town (5,708.46 m[2] of commercial houses) in the current period which were supposed to be held for long term and state them under inventories — developed products.

• 2) At the end of the period the Company entrusted Chongqing Huakang Asset & Land & Real Estate Valuation Co., Ltd. to evaluate its self-held investment property to determine the fair value of the investment property and issued Asset Evaluation Report on the Fair Value of Investment Property of Jinke Property Group Co., Ltd. (Chong Kang Ping Bao Zi No. 331 [2016]).

— 420 —

APPENDIX II

FINANCIAL INFORMATION OF JINKE PROPERTY

								Power
						Decoration of		generation
	Houses and	Machinery &	Electronic	Means of	Other	houses and	Household	related
Item	buildings	equipment	equipment	transport	equipment	buildings	appliances	equipment	Total
Original book value
Amount at the beginning of the
period	1,022,081,490.23	36,707,577.23	110,793,479.70	60,040,576.99	56,219,587.33	407,336,762.53	33,468,571.28	1,169,157,421.35	2,895,805,466.64
Increase in the current period	149,149,455.17	4,530,251.88	23,385,836.26	14,652,725.24	11,834,359.91	17,519,609.94	4,108,529.37	149,974,156.01	375,154,923.78
1) Purchase	3,841,357.86	4,530,251.88	20,212,339.83	5,965,304.61	11,468,075.91	15,131,140.93	3,228,004.37	64,969.51	64,441,444.90
2) Carried over from construction
in progress			2,682,608.43			2,388,469.01		149,909,186.50	154,980,263.94
3) Increase from merger of
enterprises	500,133.61		490,888.00	8,687,420.63	366,284.00		880,525.00		10,925,251.24
4) Inventory transfer in	144,807,963.70								144,807,963.70
Decrease in the current period	11,096,019.68	4,010,297.80	11,977,799.69	5,533,280.66	8,289,013.24	8,814,756.55	629,532.32		50,350,699.94
1) Disposal or scrapping	11,096,019.68	4,010,297.80	11,977,799.69	5,533,280.66	8,289,013.24	8,814,756.55	629,532.32		50,350,699.94
Amount at the end of the period	1,160,134,925.72	37,227,531.31	122,201,516.27	69,160,021.57	59,764,934.00	416,041,615.92	36,947,568.33	1,319,131,577.36	3,220,609,690.48
Cumulative depreciation
Amount at the beginning of the
period	58,812,641.66	14,048,613.22	59,589,615.11	34,515,609.68	21,811,250.71	118,569,842.60	11,902,941.35	48,099,105.87	367,349,620.20
Increase in the current period	27,851,480.67	3,625,723.90	23,089,243.17	13,042,380.93	15,820,370.33	62,590,427.54	6,034,500.24	63,474,385.60	215,528,512.38
1) Withdrawal	27,466,324.01	3,625,723.90	22,874,444.27	9,886,931.35	15,478,983.59	62,590,427.54	5,939,489.62	63,474,385.60	211,336,709.88
2) Increase from merger of
enterprises	385,156.66		214,798.90	3,155,449.58	341,386.74		95,010.62		4,191,802.50
Decrease in the current period	959,300.16	1,522,256.04	11,258,242.76	4,602,106.31	7,770,942.10	2,200,564.87	368,822.89		28,682,235.13
1) Disposal or scrapping	959,300.16	1,522,256.04	11,258,242.76	4,602,106.31	7,770,942.10	2,200,564.87	368,822.89		28,682,235.13
Amount at the end of the period	85,704,822.17	16,152,081.08	71,420,615.52	42,955,884.30	29,860,678.94	178,959,705.27	17,568,618.70	111,573,491.47	554,195,897.45
Provision for impairment
Amount at the beginning of the
period
Increase in the current period
1) Withdrawal
Decrease in the current period
1) Disposal or scrapping
Amount at the end of the period
Book value
Book value at the end of the
period	1,074,430,103.55	21,075,450.23	50,780,900.75	26,204,137.27	29,904,255.06	237,081,910.65	19,378,949.63	1,207,558,085.89	2,666,413,793.03
Book value at the beginning of
the period	963,268,848.57	22,658,964.01	51,203,864.59	25,524,967.31	34,408,336.62	288,766,919.93	21,565,629.93	1,121,058,315.48	2,528,455,846.44

(2) Information on fixed assets without a certificate of title

Reason for absence Item Book value of certificate of title Houses and buildings 71,169,402.74 In process Subtotal 71,169,402.74

— 421 —

APPENDIX II

FINANCIAL INFORMATION OF JINKE PROPERTY

1. Construction in progress

2. (1) Details

	Amount at the end of the period	Amount at the end of the period	Amount at the end of the period	**Amount at the beginning of **	**Amount at the beginning of **	the period
		Provision for			Provision for
Item	Book balance	impairment	Book value	Book balance	impairment	Book value
Hotel renovations	1,378,502.61		1,378,502.61	919,964.28		919,964.28
The sixth wind farm (200
MW) project in
Yandun, Hami				155,916,370.01		155,916,370.01
The second wind farm
(200 MW) project in
District C, Jingxia	560,174,630.70		560,174,630.70
Fragmentary projects	535,784.93		535,784.93	1,421,276.37		1,421,276.37
Total	562,088,918.24		562,088,918.24	158,257,610.66		158,257,610.66

(2) Changes of important construction in progress in the current period

		Amount at the	Amount at the	Increase in	Increase in					Amount at the
		beginning of		the current		Transferred to		Other		end of the
Project name	Budget	the period		period		fixed assets		decreases		period
Hotel renovations		919,964.28		8,488,312.77		2,388,469.01		5,641,305.43		1,378,502.61
The sixth wind farm
(200 MW) project in
Yandun, Hami		155,916,370.01		933,652.58		149,909,186.50		6,940,836.09
The second wind farm
(200 MW) project in
District C, Jingxia	RMB1.56 billion			560,174,630.70						560,174,630.70
Fragmentary projects		1,421,276.37		2,838,393.36		2,682,608.43		1,041,276.37		535,784.93
Subtotal		158,257,610.66		572,434,989.41		154,980,263.94		13,623,417.89		562,088,918.24
								Interest
	Percentage of			Accumulated		Amount of		capitalization
	total project			amount of		capitalized		rate in the
	investment to	Construction		capitalized		interest in the	current period
Project name	budget (%)	progress (%)		interest	current period			**(%) **	Fund source
Hotel renovations									Self-raised
The sixth wind farm			100	21,392,400.00				8.00	Self-raised and
(200 MW) project in									borrowed
Yandun, Hami
The second wind farm	36			21,320,843.08		21,320,843.08		5.75	Self-raised,
(200 MW) project in									raised and
District C, Jingxia									borrowed
Fragmentary projects									Self-raised
Subtotal				42,713,243.08		21,320,843.08

— 422 —

FINANCIAL INFORMATION OF JINKE PROPERTY

APPENDIX II

13. Intangible assets

• (1) Details

			Trademark
Item	Land use right	Software	right	Total
Original book value
Amount at the beginning of the
period	49,655,020.45	32,672,335.20	124,125.83	82,451,481.48
Increase in the current period	7,983,491.09	8,179,053.99	12,000.00	16,174,545.08
1) Purchase	7,983,491.09	8,109,053.99	12,000.00	16,104,545.08
2) Increase from merger of
enterprises		70,000.00		70,000.00
3) Inventory transfer in
Decrease in the current period		598,274.19		598,274.19
1) Disposal		598,274.19		598,274.19
Amount at the end of the period	57,638,511.54	40,253,115.00	136,125.83	98,027,752.37
Accumulated amortization
Amount at the beginning of the
period	4,539,918.74	18,103,654.88	52,665.66	22,696,239.28
Increase in the current period	1,422,040.88	5,915,638.76	11,937.00	7,349,616.64
1) Withdrawal	1,422,040.88	5,906,305.48	11,937.00	7,340,283.36
2) Increase from merger of
enterprises		9,333.28		9,333.28
Decrease in the current period		302,280.00		302,280.00
1) Disposal		302,280.00		302,280.00
Amount at the end of the period	5,961,959.62	23,717,013.64	64,602.66	29,743,575.92
Provision for impairment
Amount at the beginning of the
period
Increase in the current period
1) Withdrawal
Decrease in the current period
1) Disposal
Amount at the end of the period
Book value
Book value at the end of the period	51,676,551.92	16,536,101.36	71,523.17	68,284,176.45
Book value at the beginning of the
period	45,115,101.71	14,568,680.32	71,460.17	59,755,242.20

— 423 —

APPENDIX II

FINANCIAL INFORMATION OF JINKE PROPERTY

• (2) Information on land use right without a certificate of title

Reason for absence Item Book value of certificate of title Land use right 3,135,799.62 In process Subtotal 3,135,799.62

1. Goodwill

2. (1) Original book value of goodwill

		Goodwill
		formed by
		merger of
	Amount at the	enterprises in	Decrease in the		Amount at
Name of invested entity or	beginning of	the current	current period		the end of
matters forming goodwill	the period	period	Disposal	Others	the period
Chongqing Qingheng
Trading Co., Ltd.	98,151.81				98,151.81
Chongqing Qingke Trading
Co., Ltd.	30,000.00				30,000.00
Chongqing New Start
Decorative Engineering
Co., Ltd.	859,680.06				859,680.06
Chongqing Zhanhong
Garden Co., Ltd.	2,525,698.65				2,525,698.65
Chongqing Tianhao
Menchuang Co., Ltd.	3,869,524.97				3,869,524.97
Chongqing Yuanhao
Decorative Engineering
Co., Ltd.	113,488.03				113,488.03
Xinjiang Huaran Oriental
New Energy Co., Ltd.	483,776,339.06				483,776,339.06
Chongqing Zunda Property
Management Co., Ltd.	5,148,667.73				5,148,667.73
Dehong Huajiang Property
Co., Ltd.		418.20			418.20
Chongqing Shunsheng
Chengxun Property
Management Co., Ltd.		678,342.72			678,342.72
Total	496,421,550.31	678,760.92			497,100,311.23

— 424 —

APPENDIX II

FINANCIAL INFORMATION OF JINKE PROPERTY

• (2) Provision for impairment of goodwill

	Amount
	at the	Increase in the		Decrease in the		Amount at
Name of invested entity or	beginning of	current period		current period		the end of
matters forming goodwill	the period	Withdrawal	Others	Disposal	Others	the period
Chongqing Qingheng Trading Co., Ltd.	98,151.81					98,151.81
Chongqing Qingke Trading Co., Ltd.	30,000.00					30,000.00
Subtotal	128,151.81					128,151.81

• (3) Goodwill impairment testing process, parameters and methods of recognizing goodwill impairment loss

Treat Xinjiang Huaran Oriental New Energy Co., Ltd. and Chongqing Tianhao Menchuang Co., Ltd. as different asset groups. According to the expected future cash flow generated during the continuous use or final disposal of the asset groups, determine the discounted cash with an appropriate pre-tax discount rate as the asset groups’ recoverable amount, and compare it with their book value. The results show that there is no new impairment loss in the two asset groups.

15. Long-term prepaid expenses

		Amount at the		Amortization in		Amount at the
		beginning of	Increase in the	the current	Other	end of the
Item		the period	current period	period	decreases	period
Expense	for decoration
[Note]		26,693,841.00	28,594,052.20	26,245,742.12		29,042,151.08
Property	insurance	609,166.41	245,476.34	415,476.38		439,166.37
Total		27,303,007.41	28,839,528.54	26,661,218.50		29,481,317.45

Note: The expense for decoration is the amount used by the Company and its subsidiaries for decoration of offices leased.

— 425 —

FINANCIAL INFORMATION OF JINKE PROPERTY

APPENDIX II

1. Deferred tax assets and deferred tax liabilities

2. (1) Deferred tax assets not offset

			Amount at the beginning	Amount at the beginning
Item	Amount at the end of the period		of the period
	Deductable		Deductable
	temporary	Deferred tax	temporary	Deferred tax
	difference	assets	difference	assets
Provision for asset impairment	119,589,595.21	25,544,747.48	156,964,624.53	35,712,757.50
Estimated profit as calculated based
on advance sale income of real
estate enterprises	2,902,709,774.36	620,102,791.63	2,505,752,634.29	525,240,526.03
Deductible loss	1,426,492,378.72	354,951,479.64	1,385,831,402.51	331,028,031.93
Unrealized profit of internal
transaction	215,162,486.87	53,790,621.72	282,707,875.40	70,676,968.85
Land premium amortization	549,314,958.52	137,328,739.63	571,326,708.40	142,831,677.10
Others	1,947,726,151.57	420,680,005.49	1,170,485,874.55	224,285,117.82
Total	7,160,995,345.25 1,612,398,385.59		6,073,069,119.68 1,329,775,079.23

• (2) Deferred tax liabilities not offset

			Amount at the beginning	Amount at the beginning
	**Amount at the end **	of the period	of the period
	Taxable		Taxable
	temporary	Deferred tax	temporary	Deferred tax
Item	differences	liabilities	differences	liabilities
Investment property measured
through the fair value pattern	2,147,831,212.10	535,351,285.72	2,137,993,435.99	526,506,717.17
Others	17,180,333.70	2,674,085.36	93,490,423.74	22,313,928.47
Total	2,165,011,545.80	538,025,371.08	2,231,483,859.73	548,820,645.64

— 426 —

FINANCIAL INFORMATION OF JINKE PROPERTY

APPENDIX II

• (3) Details of unrecognized deferred tax assets

		Amount at the
	Amount at the end	beginning of the
Item	of the period	period
Deductable temporary difference
Provision for asset impairment	865,218,165.59	1,064,642,070.74
Deductible loss	1,005,240,916.46	335,159,258.70
Provision for impairment of goodwill	128,151.81	128,151.81
Estimated profit as calculated based on advance sale
income of real estate enterprises	120,050,132.29	139,354,215.71
Others	428,038,137.40	101,584,195.83
Subtotal	2,418,675,503.55	1,640,867,892.79

• (4) Deductible loss of unrecognized deferred tax assets will mature in the following years

		Amount at
	Amount at the	the beginning
Year	end of the period	of the period	Notes
2017	32,484,943.22	15,579,804.03
2018	29,949,478.39	21,218,524.73
2019	97,154,873.60	34,688,957.41
2020	357,393,065.49	263,671,972.53
2021	488,258,555.76
Subtotal	1,005,240,916.46	335,159,258.70

• (5) Other descriptions

The “Others” in the schedules of deferred tax assets not offset and the unrecognized deferred tax assets mainly include deductible costs, fees, taxes not put into the treasury, deferred income and other temporary differences.

— 427 —

FINANCIAL INFORMATION OF JINKE PROPERTY

APPENDIX II

17. Other non-current assets

		Amount at the
	Amount at the end	beginning of
Item	of the period	the period
Assets for demolition of Anhui Guorun Electronic
Technology Co., Ltd. [Note 1]	70,000,000.00	70,000,000.00
Qingdao Haier Real Estate Group Co. Ltd. [Note 2]	207,878,101.47
Tianjin property rights exchange [Note 3]	210,362,082.31
Equity acquisition price of Chongqing Zhongjun
Investment Co., Ltd.	73,000,000.00
Total	561,240,183.78	70,000,000.00

Note 1: Subsidiary Wuxi Jinke Jiarun Real Estate Development Co., Ltd. (hereinafter referred to as “Wuxi Jiarun”) acquired 51% equity of Anhui Guorun Electronic Technology Co., Ltd. (hereinafter referred to as “Guorun Electronic”) in August 2015. As at 31 December 2016, demolition and change of land use nature of the land owned by Guorun Electronic have not been completed yet.

Note 2: Refer to Note XIV (II) 8 to the Financial Statements for details.

Note 3: Refer to Note XIV (II) 9 to the Financial Statements for details.

18. Short-term loans

		Amount at the
	Amount at the end	beginning of
Item	of the period	the period
Guaranteed loan	884,000,000.00	1,030,000,000.00
Pledged loan	242,000,000.00	291,600,000.00
Mortgaged loan	200,000,000.00	560,000,000.00
Mortgaged and guaranteed loan	200,000,000.00
Total	1,526,000,000.00	1,881,600,000.00

19. Notes payable

		Amount at the
	Amount at the end	beginning of
Item	of the period	the period
Bank acceptance bill	35,863,721.87	1,317,213,982.92
Total	35,863,721.87	1,317,213,982.92

— 428 —

APPENDIX II

FINANCIAL INFORMATION OF JINKE PROPERTY

1. Accounts payable

Amount at the Amount at the end beginning of Item of the period the period Project accounts payable 7,061,520,157.57 7,672,794,812.86 Payment for materials and equipment payable 493,075,526.51 446,994,323.06 Total 7,554,595,684.08 8,119,789,135.92

Item

1. Advance receipts

(1) Details

Amount at the Amount at the end beginning of Item of the period the period Advance receipts of commodity housing 26,179,077,115.18 26,507,928,492.32 Others 94,988,917.68 77,042,667.09 Total 26,274,066,032.86 26,584,971,159.41

• (2) Important advance receipts aged 1 year or above

Item

Qingdao • Jinke Star Subtotal

Reason for delayed Amount at the end repayment or of the period carry-over 50,000,000.00 Not completed yet 50,000,000.00

— 429 —

FINANCIAL INFORMATION OF JINKE PROPERTY

APPENDIX II

• (3) Other descriptions

Payment collection of the advance-sale commodity housing:

		Amount at the
	Amount at the end	beginning of the
Project name	of the period	period
Chongqing • Jinke Garden		310,750.00
Chongqing • Jinke VISAR International	1,273,371.45	554,043.00
Chongqing • Ants SOHO	221,818.80	48,483.56
Chongqing • Eastern Palace	53,812.51	28,955.46
Chongqing • Jinke Oriental Elegance County	496,112.80	496,112.80
Chongqing • Jinke Sunshine Town	13,913,092.82	7,578,368.00
Chongqing • Tianhu Town	1,573,586.96	1,535,491.72
Chongqing • Jinke World City	22,922,423.72	22,015,169.00
Chongqing • Jinke Star	176,304,922.59	29,954,379.00
Chongqing Hechuan • Jinke World City	18,168,817.97	76,079,907.00
Chongqing Hechuan • Nature City Project	87,974,771.38	250,739,075.00
Chongqing Jiangjin • Jinke World City	98,933,241.83	93,660,096.00
Chongqing Jiangjin • Jinke Central Park	516,992,016.48	606,932,177.00
Chongqing • Xiangjiang Garden	558,824.00	558,824.00
Chongqing • Jinke Oriental Palace	15,586,678.59	17,329,584.00
Chongqing • Jinke Bridge Village	441,905,501.34	1,018,539,051.63
Chongqing • Jinke Small Town Story	184,272.42	722,857.00
Chongqing • Jinke Sun Coast	12,634,475.61	40,056,511.00
Chongqing • Jinke Xicheng Courtyard	47,281,997.06	31,594,675.00
Chongqing • Jinke Leijiaqiao	187,086,232.91	624,399,522.17
Chongqing Bishan • Jinke Central Park	302,106,449.68	445,615,716.79
Chongqing Beibei • Jinke City	99,376,527.18	1,297,809,031.00
Chongqing • Wansheng Jinke China Health City	74,975,548.16	16,239,867.00
Chongqing • Jinke Times Center	65,999,016.82	1,445,940,284.68
Chongqing • Jinsha Waterfront	19,289,108.92	19,290,441.44
Chongqing • Yunhu City	897,143.83	897,143.83
Chongqing • Bridge Waterfront		264,645.78
Chongqing • Green Park	2,347,458.69	2,347,458.69
Chongqing • Jinke Ten Years City	7,262,795.37	989,873.50
Chongqing • China Town	16,522,915.29	1,248,911.52
Chongqing • Jinke Tianyuan Road (Phase I)	560,570,843.03
Chongqing • Xiyong Tianchen	1,656,811,411.27	1,462,188,910.00
Chongqing • Xiyong Tianchen (Phase II)	698,388,801.26
Chongqing • Jinke Konggang City	330,153,651.28	224,268,415.00
Chongqing • Jinke Central Washington	347,014,526.75	165,690,036.00

— 430 —

FINANCIAL INFORMATION OF JINKE PROPERTY

APPENDIX II

		Amount at the
	Amount at the end	beginning of the
Project name	of the period	period
Chongqing Nanchuan • Jinke World City	349,501,309.70	428,972,101.00
Chongqing Wushan • Jinke City (Phase I)	187,352,308.62
Chongqing Kaixian • Jinke Kaizhou City	52,054,451.08	824,543,239.30
Chongqing Kaixian • Jinke Wealth Center	430,536,654.74	344,980,859.00
Chongqing Kaixian • Vega de la Reina Project	422,452,157.45
Chongqing Yunyang • Jinke World City	866,617,587.60	852,214,577.00
Chongqing • Wanzhou Jinke Guanlan	348,184,868.83
Chongqing Fuling • Jinke Golden Coast		28,898.38
Chongqing Fuling • Jinke Bridge Waterfront		232,047.23
Chongqing • Jinke Lake Town	5,936,938.52	5,762,077.44
Chongqing Fuling • Jinke World Corridor B		99,785.16
Chongqing Fuling • Jinke Central Park	22,705,719.91	12,448,418.44
Chongqing Fuling • Jinke World Corridor A	141,636,072.07	138,869,661.12
Chongqing Changshou • Jinke Sunshine Town	53,229,918.29	34,810,598.91
Chongqing Fuling • Jinke Nature City	81,191,798.11	553,070,546.35
Chongqing Fuling • Jinke Nanhu Project	519,777,185.19	24,771,250.32
Chongqing Changshou • Jinke World City	300,534,807.75	853,764,836.86
Chongqing Fengdou • Jinke Golden Coast	47,805,861.22	158,945,758.14
Chongqing Yongchuan • Jinke Central Park	16,728,107.71	6,242,874.59
Chongqing Yongchuan • Jinke Sunshine Town	72,722,832.18	132,233,296.54
Chongqing Yongchuan • Jinke Park Palace	163,666,765.39	186,764,003.00
Chongqing Rongchang • Jinke World City	254,002,715.34	342,976,427.25
Chongqing Dazu • Jinke Central Park	278,156,406.92	471,577,430.55
Chengdu • Jinke Yicheng	451,346.60	461,346.60
Chengdu • Jinke Center	46,539,046.95	411,315,898.08
Chengdu • Jinke Star City	323,724,851.32	139,508,775.00
Chengdu • Jinke Bridge Village	103,439,177.08	172,330,483.08
Chengdu • Jinke Nature City	3,033,173.80	6,416,601.46
Chengdu • Jinke Oriental Elegance County	679,024,096.85	251,920,425.00
Chengdu • Jinke Shuangnan City	133,495,923.29
Chengdu • Jinke Tianchen	47,472,358.70
Suining • Jinke Beautiful Bay Project	362,738,469.10	9,232,401.00
Neijiang • Jinke Central Park	12,357,521.38	38,984,042.71
Neijiang • Jinke Park Palace	300,478,925.33	598,501,629.76
Neijiang • Times Center	25,287,935.48	138,669,764.25
Beijing • Patio Palace	1,090,867.35	5,340,750.67
Beijing • Jinke Napa House	418,463,345.47	881,086,404.00
Beijing • Jinke Bridge Garden	7,380,457.19	580,000.00
Beijing • Jinke Center	1,512,816,800.63	1,029,049,753.00
Jinan • Jinke World City	1,635,848,629.55	2,022,492,831.94

— 431 —

APPENDIX II

FINANCIAL INFORMATION OF JINKE PROPERTY

		Amount at the
	Amount at the end	beginning of the
Project name	of the period	period
Qingdao • Jinke Star	1,358,321,643.38	50,000,000.00
Qingdao • Jinke Sunshine Town	396,633,630.61	205,896,067.00
Changsha • Flourishing Oriental Courtyard	19,107,890.28	28,135,236.61
Liuyang • Tianhu New City	7,487,495.00	8,330,968.00
Changsha • Jinke World City	180,586,604.80	254,869,060.17
Changsha • Jinke Center	227,801,646.80	455,870,441.85
Chenzhou • Central Park	73,997,123.03	81,894,893.00
Chenzhou • Nanling Eco-city “By the Water Side”	16,488,112.23	37,733,714.00
Wuxi • Jinke Eastern Palace	523,471.43	145,646.00
Wuxi • Jinke Dream House	278,943.13	633,989.01
Wuxi • Jinke Wanbo Plaza	9,214,928.46	3,060,562.00
Wuxi • Milan Garden B	335,394.13	692,384.00
Wuxi • Milan Garden A	34,301,105.13	926,891.00
Wuxi • Chengnan Aristocratic Family	359,992,097.53	556,818,109.26
Wuxi • Wealth Commercial Plaza	338,122,693.51	1,179,880,065.76
Jiangyin • Fairview Garden	360,949.99	1,671,343.00
Jiangyin • Oriental Courtyard	366,910.62	694,630.00
Jiangyin • Oriental Mansion	25,489,329.58	27,470,628.49
Zhangjiagang • Bridge Court	13,782,828.12	675,289,267.00
Zhangjiagang • Bridge Mansion	37,123,689.14	416,785,723.00
Suzhou • Scene Mansion	68,058,233.70	111,296,796.78
Suzhou • Nature Garden	3,009,096.81	721,011,724.00
Suzhou • World View	1,127,151,182.16	647,828,692.00
Suzhou • No. 1 Kefu Road	293,898,988.15
Nantong • Bridge Waterfront	74,252,361.42	8,532,023.10
Jiangsu Rugao • Jinke World City	47,686,627.13	364,244,533.00
Zhengzhou • Jinke City	1,978,476,792.62
Xi’an • Jinke Nature City	463,227,749.62	420,672,515.00
Xianyang • Jinke World City	40,723,162.37
Hefei • Peninsula No. 1	362,718,915.80
Yunnan • Jinke Times Center	685,531,541.06
Zunyi • Jinke Central Park	904,301,994.62	709,300,925.00
Xinjiang • Jinke Household Appliances Expo	13,711,496.79	96,634,401.96
Xinjiang • Jinke Vega de la Reina Project	3,960,000.00
Xinjiang • Jinke Bridge Village	907,820,006.50	456,018,297.23
Chongqing • Meishe Project	464,404.40	464,404.40
Hunan • Changsha Science and Technology City Project	364,397.56
Chongqing • Liangjiang Health, Science and Technology
City	49,184,116.11
Subtotal	26,179,077,115.18	26,507,928,492.32

— 432 —

APPENDIX II

FINANCIAL INFORMATION OF JINKE PROPERTY

1. Remuneration payable to employees

2. (1) Details

	Amount at the			Amount at the
	beginning of the	Increase in the	Decrease in the	end of the
Item	period	current period	current period	period
Short-term remuneration	286,012,462.72	1,732,703,178.02	1,507,474,759.88	511,240,880.86
Post-employment benefit - defined
contribution plan	386,114.98	87,583,216.38	87,451,660.06	517,671.30
Total	286,398,577.70	1,820,286,394.40	1,594,926,419.94	511,758,552.16

• (2) Details of short-term remuneration

	Amount at the			Amount at the
	beginning of the	Increase in the	Decrease in the	end of the
Item	period	current period	current period	period
Salary, bonus, subsidy and grant	208,104,740.99	1,555,134,585.99	1,357,858,513.21	405,380,813.77
Employee welfare		32,178,319.87	32,178,319.87
Social insurance premium	346,479.56	43,223,878.34	43,226,497.48	343,860.42
Including: Medical insurance	322,096.51	37,748,252.15	37,756,455.26	313,893.40
Work-related injury insurance	11,693.57	3,109,800.15	3,101,989.56	19,504.16
Childbearing insurance premium	12,689.48	2,365,826.04	2,368,052.66	10,462.86
Housing provident fund	1,094,899.17	42,360,992.06	42,732,931.12	722,960.11
Trade union fee and staff
education fee	76,466,343.00	54,422,133.61	26,095,230.05	104,793,246.56
Termination benefit		5,383,268.15	5,383,268.15
Subtotal	286,012,462.72	1,732,703,178.02	1,507,474,759.88	511,240,880.86

• (3) Details of defined contribution plan

	Amount at the			Amount at the
	beginning of the	Increase in the	Decrease in the	end of the
Item	period	current period	current period	period
Basic retirement insurance
premium	348,258.77	84,047,471.75	83,916,956.87	478,773.65
Unemployment insurance premium	37,856.21	3,535,744.63	3,534,703.19	38,897.65
Subtotal	386,114.98	87,583,216.38	87,451,660.06	517,671.30

— 433 —

FINANCIAL INFORMATION OF JINKE PROPERTY

APPENDIX II

1. Taxes payable

		Amount at the
	Amount at the end	beginning of
Item	of the period	the period
Business tax		175,675,394.76
VAT	203,271,398.73	15,267,713.13
Municipal maintenance and construction tax	11,373,025.91	12,158,246.67
Education surcharge	5,439,525.63	5,762,524.76
Local education surcharge	3,754,396.43	4,213,975.01
Land appreciation tax	95,841,389.88	161,572,393.93
Enterprise income tax	449,961,871.35	475,943,414.08
Withholding and paying personal income tax	16,334,072.45	8,858,512.54
Property tax	1,938,594.83	1,402,007.82
Land use tax	4,209,299.79	2,007,812.42
Others	7,049,802.51	4,386,454.43
Total	799,173,377.51	867,248,449.55
24. Interest payable
		Amount at the
	Amount at the end	beginning of
Item	of the period	the period
Interest of long-term loans with interest paid by
instalments and entire principal paid when due	91,257,553.57	228,144,778.96
Interest payable of short-term loans	1,619,362.19	3,980,780.87
Interest of trust funds	3,977,400.00	135,283,399.50
Bond interest	567,887,411.00	60,046,575.00
Total	664,741,726.76	427,455,534.33
25. Dividends payable
		Amount at the
	Amount at the end	beginning of
Item	of the period	the period
Dividends from ordinary shares		23,912,698.46
Dividends of other equity instrument holders	31,116,666.00	4,472,222.22
Total	31,116,666.00	28,384,920.68

— 434 —

FINANCIAL INFORMATION OF JINKE PROPERTY

APPENDIX II

1. Other payables

2. (1) Details

		Amount at the
	Amount at the end	beginning of
Item	of the period	the period
Cash deposit	673,154,127.58	540,834,859.14
Equity transfer price payable	103,806,400.00	15,700,000.00
Borrowings	539,796,765.80	591,840,756.93
Temporary receipts payable	1,184,856,016.33	377,067,133.40
Customers’ accounts collected and remitted	527,487,366.90	453,204,756.07
Compensation for relocation and resettlement [Note]	905,120,000.00
Others	1,274,978,973.42	923,971,172.10
Total	5,209,199,650.03	2,902,618,677.64

Note: The funds received by holding subsidiary Zhengzhou Xinyinke Real Estate Co., Ltd. for demolition compensation, settlement building and public infrastructure and municipal supporting facility construction in the renovation area regarding the urban village reconstruction project in Wawuli Village.

• (2) Important other payables aged 1 year or above

	Amount at the end
Entity name	of the period	Nature or content
Changsha Economic and Technical Development	316,033,481.70	Performance bond
Group Co., Ltd.
Henan Qide Enterprise Management Consulting	198,803,739.96	Borrowings from minority
Co., Ltd.		shareholders of project
		companies
Subtotal	514,837,221.66

— 435 —

APPENDIX II

FINANCIAL INFORMATION OF JINKE PROPERTY

1. Non-current liabilities maturing within one year

		Amount at the
	Amount at the end	beginning of
Item	of the period	the period
Long-term loans maturing within one year	5,114,441,393.99	16,654,559,600.00
Creditor’s right maturing within one year and trust fund
of the right of return on equity		1,290,000,000.00
Obligation of restricted share repurchase [Note]	147,493,300.00	154,587,800.00
Total	5,261,934,693.99	18,099,147,400.00

Note: Refer to Note XI to the Financial Statements for details.

28. Long-term loans

		Amount at the
	Amount at the end	beginning of
Item	of the period	the period
Guaranteed loan	2,758,000,000.00	1,742,000,000.00
Pledged loan	3,560,000,000.00	1,700,000,000.00
Mortgaged loan	5,583,080,000.00	4,242,500,000.00
Mortgaged and guaranteed loan	6,036,830,000.00	4,509,559,999.99
Pledged and guaranteed loan	570,000,000.00	200,000,000.00
Mortgaged, pledged and guaranteed loan		900,000,000.00
Total	18,507,910,000.00	13,294,059,999.99

29. Bonds payable

(1) Details

		Amount at the
	Amount at the end	beginning of
Item	of the period	the period
Medium-term notes	3,180,254,656.24	2,081,719,061.26
Corporate bonds in 2015 (public offering)	1,992,906,572.77	1,988,936,233.86
Corporate bonds in 2015 (non-public offering)	1,244,943,472.73	1,242,602,034.59
Corporate bonds in 2016 (non-public offering)	12,473,172,478.27
Total	18,891,277,180.01	5,313,257,329.71

— 436 —

APPENDIX II

FINANCIAL INFORMATION OF JINKE PROPERTY

• (2) Increase and decrease of bonds payable

							Amount at the
				Bond			beginning of the
Bond name	Face value Date of issue			duration		Amount issued	period
Medium-term notes	100.00 20 November		2015	3 years	2,100,000,000.00		2,081,719,061.26
Corporate bonds in 2015 (public	100.00 28 August 2015			3+2 years	2,000,000,000.00		1,988,936,233.86
offering)
Corporate bonds in 2015	100.00 16 December		2015	2+1 years	1,250,000,000.00		1,242,602,034.59
(non-public offering)
First tranche of medium-term	100.00 22 March 2016			3 years	1,100,000,000.00
notes in 2016
Non-public offering of corporate	100.00 17 March 2016			1+2 years,	2,550,000,000.00
bonds in 2016 (first tranche)				2+1 years
Non-public offering of corporate	100.00 5	May 2016		1+2 years,	5,400,000,000.00
bonds in 2016 (second tranche)				2+1 years,
				3+2 years
Non-public offering of corporate	100.00 22 July 2016			1+2 years,	4,600,000,000.00
bonds in 2016 (third tranche)				2+1 years
Subtotal					19,000,000,000.00		5,313,257,329.71
		Accrued interest		**Amortization **	of	Repayment in	Amount at the
	Issuance in the	based on face		the premiums		the current	end of the
Bond name	current period		value	and discounts		period	period
Medium-term notes				5,998,762.82			2,087,717,824.08
Corporate bonds in 2015 (public
offering)				3,970,338.91			1,992,906,572.77
Corporate bonds in 2015
(non-public offering)				2,341,438.14			1,244,943,472.73
First tranche of medium-term
notes in 2016	1,090,100,000.00			2,436,832.16			1,092,536,832.16
Non-public offering of corporate
bonds in 2016 (first tranche)	2,534,700,000.00			3,795,333.22			2,538,495,333.22
Non-public offering of corporate
bonds in 2016 (second tranche)
[Note]	5,359,641,509.45			8,320,138.64			5,367,961,648.09
Non-public offering of corporate
bonds in 2016 (third tranche)
[Note]	4,561,320,754.73			5,394,742.23			4,566,715,496.96
Subtotal	13,545,762,264.18			32,257,586.12		18,891,277,180.01

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FINANCIAL INFORMATION OF JINKE PROPERTY

APPENDIX II

30. Long-term payables

Amount at the Amount at the end beginning of Item of the period the period Finance leasing payables [Note] 498,824,320.47 Total 498,824,320.47

Note: According to the Finance Leasing Contract signed between holding subsidiary Xinjiang Huaran Oriental New Energy Co., Ltd. (the lessee) and Chongqing Runjin Financial Leasing Co., Ltd. (the lessor, hereinafter referred to as “Chongqing Runjin”), the lessor purchased from the lessee a total of 50 wind driven generators of No. B01-B50 in Yandun-based 6th Wind Power Plant in Hami, Xinjiang and leased them to the lessee for occupation and use at a transfer price of RMB505 million and for a term of 12 years.

31. Deferred earnings

(1) Details

		Amount at the			Amount at the
		beginning of the	Increase in the	Decrease in the	end of the
Item		period	current period	current period	**period **	Reason
Government	subsidies	79,965,496.62	36,656,680.14	5,897,532.33	110,724,644.43	Special fiscal
						subsidy for charges
						for infrastructure
						construction
Total		79,965,496.62	36,656,680.14	5,897,532.33	110,724,644.43

(2) Details of government subsidies

			Amount stated
		Increased	as
	Amount at the	subsidies in	non-operating		Amount at the		Related to
	beginning of	the current	revenue in the			end of the	assets/related
Item	the period	period	**current period **	Other changes		period	to revenues
Subsidy for		20,000,000.00			20,000,000.00		Related to
infrastructure							assets
construction
Special fiscal subsidy	79,965,496.62	16,656,680.14	5,897,532.33	90,724,644.43			Related to
for charges for							assets
infrastructure
construction
Subtotal	79,965,496.62	36,656,680.14	5,897,532.33		110,724,644.43

— 438 —

FINANCIAL INFORMATION OF JINKE PROPERTY

APPENDIX II

1. Other non-current liabilities

Item

Obligation of restricted share repurchase [Note] Total

Amount at the Amount at the end beginning of of the period the period 301,733,100.00 463,763,400.00 301,733,100.00 463,763,400.00

Note: Refer to Note XI to the Financial Statements for details.

1. Share capital

2. (1) Details

Increase/decrease in the current period

(“-” for decrease) Amount at Transfer from Amount at the the beginning Issuance of capital end of Item of the period new shares Bonus shares reserves Others Subtotal the period Total shares 4,327,060,153 1,030,708,163 -14,400,000 1,016,308,163 5,343,368,316

• (2) Other descriptions

• 1) RMB1,030,708,163.00 of new shares was issued in the current period mainly for the following reasons:

  • ① According to the resolution of the 21th and 28th meetings of the 9th Board of Directors of the Company, the resolution of the 6th extraordinary general meeting 2015, the resolution of the 2nd extraordinary general meeting 2016, Announcement on Adjusting the Issuance Price and Number of Shares to Be Offered in A Non-public Mode after Implementation of the 2015 Equity Distribution Scheme and the Reply Concerning Approval of Non-public Issuance of Shares of Jinke Property Group Co., Ltd. (Zheng Jian Xu Ke [2016] No. 1319) from China Securities Regulatory Commission, the Company non-publicly issued 1,020,408,163 RMB ordinary shares (A shares) to 3 specific targets, with each having a par value of RMB1 and issued at a price of RMB4.41, increasing the registered capital by RMB1,020,408,163.00 and forming capital reserve (capital premium) of RMB3,421,679,795.01. The share capital change has been verified by Pan-China Certified Public Accountants (special general partnership), which issued a Capital Verification Report (Tian Jian Yan [2016] No. 8-90) on 28 September 2016.

— 439 —

APPENDIX II

FINANCIAL INFORMATION OF JINKE PROPERTY

  - ② According to the authorization granted at the 8th extraordinary general meeting 2015 and the resolution of the 40th meeting of the 9th Board of Directors, the Company issued 10,300,000 RMB ordinary shares (A shares) to a total of 12 equity incentive targets, which were five directors and senior executives including Jiang Sihai and Fang Mingfu and seven middle-level managers including Wang Yidan and Chen Yunping. This capital increase was issue of previously reserved restricted shares, with each having a par value of RMB1 and issued at a price of RMB2.62, increasing the registered capital by RMB10,300,000.00 and forming capital reserve (capital premium) of RMB16,686,000.00. The share capital change has been verified by Pan-China Certified Public Accountants (special general partnership), which issued a _Capital Verification Report_ (Tian Jian Yan [2016] No. 8-112) on 16 December 2016.

• 2) RMB14,400,000.00 of decrease in share capital was mainly for the following reasons:

  • ① According to the resolution of the annual general meeting 2015 of the Company and the resolution of the 30th meeting of the 9th Board of Directors, the Company repurchased by cash and at a price of RMB3.23/share 800,000 restricted ordinary shares (A shares) which were granted to natural persons Yu Xuebing and Si Wei but were unlocked as resignation of the two persons disqualified them from the incentive plan, reducing the registered capital by RMB800,000.00 in total and capital reserve (capital premium) by RMB1,784,000.00. The share capital change has been verified by Pan-China Certified Public Accountants (special general partnership), which issued a Capital Verification Report (Tian Jian Yan [2016] No. 8-58) on 18 May 2016.

  • ② According to the resolutions of the 32nd and 36th meetings of the 9th Board of Directors, and the resolution of the 4th extraordinary general meeting 2016, the Company repurchased by cash and at a price of RMB3.18/share (after deducting the dividends) 13,600,000 restricted RMB ordinary shares (A shares) which were granted to seven incentive targets including Zhang Tiancheng but were unlocked as their resignation disqualified them from the incentive plan, reducing registered capital by RMB13,600,000.00 in total and capital reserve (capital premium) by RMB29,648,000.00. The share capital change has been verified by Pan-China Certified Public Accountants (special general partnership), which issued a Capital Verification Report (Tian Jian Yan [2016] No. 8-108) on 2 December 2016.

• Other equity instruments

• (1) Basic information about perpetual bonds outstanding at the end of the period

• 1) The Company obtained open-ended loans issued by Minsheng Royal Asset Management Co., Ltd. in 2015, and the balance of the said loans at the end of the current period was RMB1.2 billion.

• 2) In the current period the Company obtained RMB1.7 billion of open-ended loans issued by China Securities Co., Ltd.

— 440 —

APPENDIX II

FINANCIAL INFORMATION OF JINKE PROPERTY

• (2) Changes in perpetual bonds outstanding at the end of the period

	**Amount at **	the beginning of	Increase in the current	Increase in the current
Item	the period			period
	Quantity	Book value	Quantity	Book value
Perpetual bonds		1,400,000,000.00		1,700,000,000.00
Subtotal		1,400,000,000.00		1,700,000,000.00
	Decrease in the current		Amount at the
Item		period	end of the period
	Quantity	Book value	Quantity	Book value
Perpetual bonds		200,000,000.00		2,900,000,000.00
Subtotal		200,000,000.00		2,900,000,000.00

• (3) Other descriptions

Upon deliberation and approval at the 3rd extraordinary general meeting 2016 held by the Company on 19 September 2016, the Company signed an Entrusted Loan Agreement with China Securities Co., Ltd. (hereinafter referred to as “China Securities”) and Beijing Branch of China Bohai Bank Co., Ltd. (hereinafter referred to as “Beijing Branch of China Bohai Bank”), according to which China Securities will work out a special asset management plan to raise funds and authorize Beijing Branch of China Bohai Bank to issue RMB1.7 billion of open-ended loans to the Company.

As the said Entrusted Loan Agreement did not specify contractual obligations of delivering cash or other financial assets to other parties, or contractual obligations of exchanging financial assets or financial liabilities with other parties under potentially unfavourable conditions, which was in line with the definition of equity instruments in the Accounting Standards for Enterprises No. 22 — Recognition and Measurement of Financial Instruments , the Accounting Standards for Enterprises No. 37 — Presentation of Financial Instruments , and the Provisions on the Distinction between Financial Liability and Equity Instruments and the Relevant Accounting Treatment , the Company recognized the RMB1.7 billion open-ended loans it received as other equity instruments.

— 441 —

FINANCIAL INFORMATION OF JINKE PROPERTY

APPENDIX II

1. Capital reserve

2. (1) Details

Amount at the beginning of Increase in the Decrease in the Amount at the Item the period current period current period end of the period Capital premium 469,087,953.45 3,494,053,137.75 79,648,632.14 3,883,492,459.06 Other capital reserve 111,253,397.46 94,278,862.15 55,687,342.74 149,844,916.87 Total 580,341,350.91 3,588,331,999.90 135,335,974.88 4,033,337,375.93

• (2) Other descriptions

• 1) The capital premium for the current period increased by RMB3,494,053,137.75, among which, RMB3,421,679,795.01 from non-public issuance of 1,020,408,163 ordinary shares to 3 specific targets, RMB16,686,000.00 from issue of reserved restricted shares, and RMB55,687,342.74 reclassified into capital premium from other capital reserve after first unlocking of some restricted shares under the equity incentive plan. Refer to Note XI to the Financial Statements for details.

• 2) The capital premium for the current period decreased by RMB79,648,632.14 , among which, RMB31,432,000.00 of decrease from return of subscription fund due to failed exercise of the restricted shares under the first equity incentive plan (refer to Note XI to the Financial Statements for details), RMB41,709,664.58 of decrease from minority equity transaction with subsidiary Chongqing Jinke Junwei Real Estate Development Co., Ltd., RMB12,502,836.47 of decrease from minority equity transaction with subsidiary Chongqing Jinke Hongrui Real Estate Development Co., Ltd., RMB12,425,974.18 of increase from minority equity transaction with subsidiary Chongqing Jinke Hexu Real Estate Development Co., Ltd., RMB3,830,386.68 of increase from minority equity transaction with subsidiary Neijiang Jinke Liju Real Estate Development Co., Ltd. and RMB10,260,491.95 of decrease from minority equity transaction with subsidiary Xinjiang Huaran Oriental New Energy Co., Ltd.

• 3) As recognized in other capital reserve for the current period, the equity incentive cost increased by RMB94,278,862.15, among them, RMB74,696,622.53 came from the equity-settled share-based payment. Refer to Note XI to the Financial Statements for details; According to the Bulletin of the State Administration of Taxation on Income Tax Treatment of Resident Enterprises Executing Equity Incentive Plans (Bulletin [2012] No. 18 of the State Administration of Taxation), the Company recognized and stated the deferred tax assets of RMB19,582,239.62 adjusted on the basis of differences in the equity incentive accounting and tax payment as the capital reserve.

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APPENDIX II

FINANCIAL INFORMATION OF JINKE PROPERTY

• 4) Other capital reserve decreased by RMB55,687,342.74, which was the amount reclassified into capital premium from other capital reserve after first unlocking of some restricted shares under the equity incentive plan.

• Treasury shares

• (1) Details

Amount at the beginning of Increase in the Decrease in the Amount at the Item the period current period current period end of the period Restricted shares 618,351,200.00 26,986,000.00 196,110,800.00 449,226,400.00 Repurchase of shares not cancelled 1,359,450.00 1,359,450.00 Total 618,351,200.00 28,345,450.00 196,110,800.00 450,585,850.00

• (2) Other descriptions

• 1) Restricted shares increased by RMB26,986,000.00 in the current period, for the Company granted 10,300,000 reserved restricted shares to incentive targets of the equity incentive plan;

• 2) Decrease in the current period was attributable to unlocking of first grant of 43,832,500 restricted shares, repurchase of 14,400,000 restricted shares unqualified for the equity incentive plan and unlocking, and distribution of cash dividends in the current period. Refer to Note XI to the Financial Statements for details.

• 3) Among the incentive targets who had been granted restricted shares for the first time, three incentive targets failed to meet the unlocking condition since their personal performance was not up to standard, and the 275,000 restricted shares held by them could not be unlocked; six incentive targets managed to pass personal performance assessment so 80% of the restricted shares held by them could be unlocked and the rest 20% (152,500 shares) could not be unlocked. The Company convened the 40th meeting of the 9th Board of Directors and deliberated and adopted the Proposal on Repurchase and Cancellation of Restricted Shares Granted to Incentive Targets but Not Unlocked as the Conditions for Unlocking Were not Met , according to which a total of 427,500 unlocked restricted shares were repurchased and cancelled by the Company. As at 31 December 2016, repurchase and cancellation of the said restricted shares had not been completed yet.

— 443 —

FINANCIAL INFORMATION OF JINKE PROPERTY

APPENDIX II

1. Other consolidated revenue

2. (1) Details

			Amount incurred in the current period	Amount incurred in the current period	Amount incurred in the current period
			Less: The
			amount
			included in
			other
			consolidated
			revenue in the
			previous period		The amount	The amount
			but transferred		after tax	after tax
	Amount at the	Pre-tax	to profit or		attributed to	attributed to	Amount at
	beginning of	amount in the	loss in the	Less: Income	the parent	minority	the end of the
Item	the period	current period	current period	tax expense	company	shareholders	period
Other consolidated
revenue to be
reclassified into
gains/losses in the
future	620,872,917.24			1,220,991.15	-622,705.49	-598,285.66	620,250,211.75
Of which: The
difference between
the fair value and
book value of
investment property
converted from
inventories	620,872,917.24			1,220,991.15	-622,705.49	-598,285.66	620,250,211.75
Total of other
consolidated
revenue	620,872,917.24			1,220,991.15	-622,705.49	-598,285.66	620,250,211.75

• (2) Other descriptions

Since the Company’s subsidiary Chongqing Hechuan Jinke Hejun Real Estate Co., Ltd. (hereinafter referred to as “Hejun Real Estate”) was imposed an enterprise income tax rate of 25% instead of a preferential rate of 15% from the current period, the amount stated as other consolidated revenue of the shopping mall and warehouse on floor B1 of Hechuan World City which was carried forward as investment property in previous years was adjusted to RMB1,220,991.15 in the current period, among which RMB622,705.49 was attributed to the parent company and RMB598,285.66 was attributed to minority shareholders.

— 444 —

FINANCIAL INFORMATION OF JINKE PROPERTY

APPENDIX II

38. Surplus reserve

• (1) Details

Amount at Amount at the beginning of Increase in the Decrease in the the end of Item the period current period current period the period Statutory surplus reserve 309,916,162.14 83,332,899.03 393,249,061.17 Total 309,916,162.14 83,332,899.03 393,249,061.17

• (2) Other descriptions

The increase in the current period is the RMB83,332,899.03 statutory surplus reserve withdrawn according to 10% of the net profit of the parent company.

1. Undistributed profits

Amount in the Amount in the same period of Item current period preceding year Undistributed profits at the beginning of the period 6,234,162,595.74 6,292,813,928.44 Add: Net profit attributable to owners of the parent company in the current period 1,395,260,332.23 1,266,959,610.26 Less: Statutory surplus reserve 83,332,899.03 148,147,570.98 Common stock dividends payable 216,313,007.65 206,781,007.65 Common stock dividends converted into share capital 827,124,031.00 Others [Note] 163,001,666.00 143,558,333.33 Undistributed profits at the end of the period 7,166,775,355.29 6,234,162,595.74

• Note: During the reporting period, the interest payable by the Company to holders of other equity instruments amounted to RMB163,001,666.00, with RMB137,623,888.89 already paid in the current period (including RMB4,472,222.22 of interest unpaid as at the end of the last period) and RMB29,849,999.33 remaining to be paid.

— 445 —

FINANCIAL INFORMATION OF JINKE PROPERTY

APPENDIX II

• (II) Notes to consolidated income statement

• Operating revenue/cost

• (1) Details

			**Amount in the **	same period of
	**Amount in the **	current period	preceding year
Item	Revenue	Cost	Revenue	Cost
Main businesses	31,970,133,127.61	25,481,397,387.25	19,171,310,980.24	13,828,075,210.46
Other businesses	265,308,499.42	68,205,825.57	227,262,340.66	58,928,446.52
Total	32,235,441,627.03	25,549,603,212.82	19,398,573,320.90	13,887,003,656.98

• (2) Other descriptions

Details of major real estate projects carried over as revenue in the current period:

		Revenue from	Cost of main
Item	Business type	main businesses	businesses
Chongqing Beibei • Jinke City	Residential	1,760,834,050.55	1,415,471,466.21
Jinan • Jinke World City	Residential	1,630,237,936.01	1,185,261,588.31
Chongqing • Jinke Times Center	Residential	1,488,565,784.70	956,642,701.59
Chongqing • Jinke Bridge Village	Residential	1,391,964,940.90	999,381,284.83
Beijing • Jinke Napa House	Residential	1,380,931,282.64	1,271,413,698.20
Wuxi • Wealth Commercial Plaza	Residential	1,215,280,584.45	996,884,807.99
Chongqing • Jinke Central Imperial Garden	Residential	1,126,916,102.88	1,008,673,750.46
Suzhou • Nature Garden	Residential	1,046,047,568.15	923,742,244.97
Chongqing Fuling • Jinke Nature City	Residential	1,028,359,236.86	798,711,427.42
Zhangjiagang • Bridge Court	Residential	932,717,910.25	705,214,643.62
Wuxi • Chengnan Aristocratic Family	Residential	930,581,839.46	859,327,623.19
Chongqing Changshou • Jinke World City	Residential	911,684,965.45	767,246,779.73
Chongqing Kaixian • Jinke Kaizhou City	Residential	865,344,051.90	568,006,897.91
Chongqing Jiangjin • Jinke Central Park	Residential	802,258,306.66	614,178,505.17
Chongqing • Xiyong Tianchen	Residential	713,214,681.70	633,721,334.28
Neijiang • Jinke Park Palace	Residential	651,972,016.60	535,216,122.05
Chongqing Yunyang • Jinke World City	Residential	610,076,688.87	473,877,821.71
Chongqing Bishan • Jinke Central Park	Residential	608,851,041.80	533,889,048.30
Chongqing Dazu • Jinke Central Park	Residential	591,788,045.14	477,221,779.00
Changsha • Jinke Center	Residential	538,373,886.47	455,906,654.47
Subtotal		20,226,000,921.44	16,179,990,179.41

— 446 —

APPENDIX II

FINANCIAL INFORMATION OF JINKE PROPERTY

1. Business taxes and surcharges

		Amount in the
	Amount in the	same period of
Item	current period	preceding year
Business tax	1,250,401,606.22	1,002,961,017.37
Municipal maintenance and construction tax	108,590,464.51	66,768,573.08
Education surcharge	49,583,234.78	30,876,164.56
Local education surcharge	32,901,410.65	20,736,268.27
Land appreciation tax	401,401,388.03	346,727,727.11
Property tax [Note]	12,735,182.12	10,855,613.19
Land use tax [Note]	3,190,456.96
Stamp tax [Note]	3,402,085.70
Others	1,941,699.04	843,709.71
Total	1,864,147,528.01	1,479,769,073.29

Note: According to the Provisions on VAT Accounting Treatment ( Cai Kuai [2016] No. 22) of the Ministry of Finance and Interpretation of Relevant Issues Concerning ‘Provisions on VAT Accounting Treatment’ , the Company stated the amount of property tax, land use tax and stamp tax incurred in May-December 2016 under “business taxes and surcharges”, and the amount incurred before May 2016 was still stated under “management expenses”.

3. Sales expenses

		Amount in the
	Amount in the	same period of
Item	current period	preceding year
Advertising & publicity expenses	454,077,752.21	318,391,728.35
Remuneration of employees	316,787,788.92	243,473,292.64
Others	209,996,803.13	131,646,343.22
Total	980,862,344.26	693,511,364.21

— 447 —

FINANCIAL INFORMATION OF JINKE PROPERTY

APPENDIX II

1. Management expenses

		Amount in the
	Amount in the	same period of
Item	current period	preceding year
Remuneration of employees	778,554,586.95	540,007,750.60
Office administrative expense	180,922,567.69	166,665,962.83
Taxes [Note]	18,395,949.39	24,089,949.86
Depreciation of fixed assets	33,764,564.81	31,922,821.21
Equity incentive cost	74,696,622.53	5,250,679.69
Others	160,739,922.16	154,697,319.88
Total	1,247,074,213.53	922,634,484.07

Note: Refer to Note V (II) 2 to the Financial Statements for details.

1. Financial expenses

			Amount in the
		Amount in the	same period of
Item		current period	preceding year
Interest expenses		344,359,672.97	346,088,155.50
Less:	interest income	71,359,360.10	133,613,775.73
Others		32,433,573.64	55,777,580.26
Total		305,433,886.51	268,251,960.03
6.	Assets impairment loss
			Amount in the
		Amount in the	same period of
Item		current period	preceding year
Loss	from bad debts	113,753,979.85	73,829,191.32
Inventory impairment loss [Note]		-117,235,817.85	406,835,393.88
Total		-3,481,838.00	480,664,585.20

Note: Refer to Note V (I) 6 (2) to the Financial Statements for details.

— 448 —

APPENDIX II

FINANCIAL INFORMATION OF JINKE PROPERTY

1. Revenue from change in fair value

				Amount in the
			Amount in the	same period of
Item			current period	preceding year
Investment		property measured by fair value [Note]	63,367,452.14	39,863,547.99
Total			63,367,452.14	39,863,547.99
Note:	Refer	to Note V (I) 10 (2) to the Financial Statements for details.

8. Return on investment
			Amount in the
		Amount in the	same period of
Item		current period	preceding year
Long-term equity investment return accounted for by
equity method		-98,742,045.25	-5,152,881.59
Investment return generated by disposal of long-term
equity investment			41,991,282.68
Others		21,424.66
Total		-98,720,620.59	36,838,401.09
9. Non-operating revenue
(1) Details
			Amount stated as
			non-recurring
		Amount in the	gains/losses in
	Amount in the	same period of	the current
Item	current period	preceding year	period
Gain from disposal of non-current assets	3,704,371.48	778,491.46	3,704,371.48
Including: Gain from disposal of fixed
assets	3,704,371.48	778,491.46	3,704,371.48
Government subsidies	35,637,659.71	57,092,680.39	35,637,659.71
Revenues from fines and liquidated
damages	36,339,250.30	30,389,189.41	36,339,250.30
Revenues from disposal of scrap materials	248,592.05	406,616.98	248,592.05
Others	16,878,333.14	10,334,532.46	16,878,333.14
Total	92,808,206.68	99,001,510.70	92,808,206.68

— 449 —

FINANCIAL INFORMATION OF JINKE PROPERTY

APPENDIX II

• (2) Details of government subsidies

Amount in the Related to Amount in the same period of assets/related to Subsidy items current period preceding year revenues Financial subsidies [Note] 29,801,227.43 41,023,038.54 Related to revenues Others 5,836,432.28 16,069,641.85 Related to revenues Subtotal 35,637,659.71 57,092,680.39

Note: They are financial subsidies received from local governments at various levels by subsidiaries Wujiaqu Jinke Real Estate Development Co., Ltd., Changsha Jinke Real Estate Development Co., Ltd., Chongqing Jinke Tuhong Real Estate Co., Ltd., Chongqing Jinke Industrial Group Kerun Real Estate Development Co., Ltd., etc.

1. Non-operating expenditure

			Amount stated as
			non-recurring
		Amount in the	gains/losses in
	Amount in the	same period of	the current
Item	current period	preceding year	period
Loss from disposal of non-current assets	880,703.56	428,538.06	880,703.56
Including: Loss on the disposal of fixed
assets	880,703.56	428,538.06	880,703.56
Donation	58,992,702.35	19,454,230.00	58,992,702.35
Expenditure of compensation	13,256,123.81	9,846,628.96	13,256,123.81
Expenditure of late fee and fine	36,128,104.59	19,981,236.50	36,128,104.59
Others	8,532,187.27	8,050,874.11	8,532,187.27
Total	117,789,821.58	57,761,507.63	117,789,821.58

11. Income tax expense

• (1) Details

Amount in the Amount in the same period of Item current period preceding year Current income tax expense 701,002,003.75 675,452,009.35 Deferred income tax expense -259,883,480.95 -124,417,941.05 Total 441,118,522.80 551,034,068.30

— 450 —

APPENDIX II

FINANCIAL INFORMATION OF JINKE PROPERTY

• (2) Accounting profit and adjustment process of income tax expense

	Amount in the	Amount of last
Item	current period	period
Total profit	2,231,467,496.55	1,784,680,149.27
Income tax expense calculated by statutory / applicable
tax rates	557,867,253.01	446,170,037.32
Impact of application of different tax rates by
subsidiaries	-171,718,176.70	-219,779,556.52
Impact of adjustment in previous income tax	-40,796,336.31	16,164,900.04
Impact of non taxable income	24,005,253.34	1,603,323.25
Impact of non-deductible costs, expenses and losses	14,209,148.53	25,800,155.22
Impact of using deductible loss of previous unrecognized
deferred tax assets	-996,427.61
Impact of deductable temporary difference or deductible
loss of unrecognized deferred tax assets in the current
period	91,387,814.31	316,964,792.32
Others	-32,839,626.90	-35,889,583.33
Income tax expense	441,118,522.80	551,034,068.30

12. After-tax net amount of other consolidated revenue

For after-tax net amount of other consolidated revenue, please refer to the descriptions on other consolidated revenue in the notes to the consolidated balance sheet in the Notes to the Financial Statements.

(III) Notes to consolidated statement of cash flow

1. Other cash received relating to operating activities

		Amount in the
	Amount in the	same period of
Item	current period	preceding year
Funds flow between units	1,807,089,429.57	910,534,988.54
Amount collected and remitted	782,406,306.46	538,254,999.40
Cash deposit	647,259,384.07	792,340,818.41
Financial subsidies	66,396,807.52	64,129,305.47
Interest income from funds	71,359,360.10	133,613,775.73
Compensation for relocation and resettlement	905,120,000.00
Others	390,805,107.54	521,846,631.37
Total	4,670,436,395.26	2,960,720,518.92

— 451 —

APPENDIX II

FINANCIAL INFORMATION OF JINKE PROPERTY

1. Other cash paid relating to operating activities

		Amount in the
	Amount in the	same period of
Item	current period	preceding year
Funds flow between units	842,795,226.67	1,153,548,643.07
Amount collected and remitted	758,225,562.87	511,407,532.23
Cash deposit	2,203,150,965.63	571,159,421.36
Out-of-pocket expenses	994,812,566.00	771,401,354.28
Others	569,337,348.99	732,582,921.13
Total	5,368,321,670.16	3,740,099,872.07

1. Other cash paid relating to investing activities

							Amount in the
						Amount in the	same period of
Item						current period	preceding year
Consideration	paid	for	debt-assumed	acquisition	of
companies						2,260,671,356.07
Total						2,260,671,356.07

1. Other cash received relating to financing activities

		Amount in the
	Amount in the	same period of
Item	current period	preceding year
Collection of financing bill discounted	78,475,000.00	5,934,313,551.11
Loans of entities	357,311,691.24	93,261,298.66
Loans and financing bills against a pledge of time
deposit certificates and net reduction in cash deposit	1,009,656,284.57	221,693,822.26
Finance leasing funds	505,000,000.00
Entrusted open-ended loans received	2,100,000,000.00	1,400,000,000.00
Total	4,050,442,975.81	7,649,268,672.03

— 452 —

FINANCIAL INFORMATION OF JINKE PROPERTY

APPENDIX II

1. Other cash paid relating to financing activities

		Amount in the
	Amount in the	same period of
Item	current period	preceding year
Acceptance of financing bills	527,732,000.00	6,429,640,000.00
Payment for purchase of minority interest in subsidiaries	571,069,400.00	362,097,400.00
Loans of entities	521,621,344.45	220,169,761.79
Cost of medium-term notes and property assets for
supporting securitized financing	22,150,000.00	24,450,000.00
Repayment of entrusted open-ended loans	200,000,000.00
Payment for share capital reduction by minority
shareholders of subsidiaries	86,000,000.00
Payment for repurchase of restricted shares	45,832,000.00
Total	1,974,404,744.45	7,036,357,161.79

1. Supplementary information of cash flow statement

2. (1) Supplementary information of cash flow statement

		Amount in the
	Amount in the	same period of
Supplementary information	current period	preceding year
1) Reconciliation of net profit to cash flows from
operating activities:
Net profit	1,790,348,973.75	1,233,646,080.97
Add: Provision for asset impairment	-3,481,838.00	480,664,585.20
Depreciation of fixed assets, oil and gas assets and
production-type biological assets	211,336,709.88	153,851,271.80
Amortization of intangible assets	7,340,283.36	6,012,471.46
Amortization of long-term expenses to be amortized	26,661,218.50	11,893,511.39
Loss from disposal of fixed assets, intangible assets
and other long-term assets (“-” for gains)	-2,823,667.92	-349,953.40
Loss on scrapping of fixed assets (“-” for gains)
Loss from change in fair value (“-” for gains)	-63,367,452.14	-39,863,547.99
Financial expense (“-” for gains)	344,359,672.97	346,088,155.50
Loss from investment (“-” for gains)	98,720,620.59	-36,838,401.09
Decrease in deferred tax assets (“-” for increase)	-287,031,694.48	-148,389,066.98
Increase in deferred tax liabilities (“-” for decrease)	27,148,213.53	23,971,125.93
Decrease in inventories (“-” for increase)	990,012,950.68	-7,555,494,835.06
Decrease in operating receivables (“-” for increase)	-3,384,129,818.68	-132,029,355.32
Increase in operating payables (“-” for decrease)	6,489,027,308.60	6,069,107,985.30
Others
Net cash flows from operating activities	6,244,121,480.64	412,270,027.71

— 453 —

FINANCIAL INFORMATION OF JINKE PROPERTY

APPENDIX II

Supplementary information

Amount in the Amount in the same period of current period preceding year

• 2) Significant investing and financing activities not involving cash receipts and payments: Debts changed to capital Convertible corporate bonds maturing within one year Fixed assets acquired under finance leasing

• 3) Net changes in cash and cash equivalents: Ending balance of cash 17,258,986,152.21 7,967,303,772.09 Less: Opening balance of cash 7,967,303,772.09 5,805,282,261.64 Add: Ending balance of cash equivalents Less: Opening balance of cash equivalents Net increase in cash and cash equivalents 9,291,682,380.12 2,162,021,510.45

• (2) Net cash paid for acquisition of subsidiaries in the current period

	Amount in the
Item	current period
Cash and cash equivalents paid for merger of enterprises in the current
period	782,891,792.88
Including: Shandong Lanhai Linghang E-commerce Industrial Park
Co., Ltd.	98,960,800.00
Chongqing Aojia Real Estate Co., Ltd.	6,140,820.00
Zhengzhou Yuanwei Enterprise Management Consulting Co., Ltd.	50,000,000.00
Henan Guofengyuan Real Estate Co., Ltd.
Anhui Xihu Xincheng Real Estate Co., Ltd.	577,535,172.88
Jurong Yifeng Real Estate Development Co., Ltd.	50,000,000.00
Chongqing Shunsheng Chengxun Property Management Co., Ltd.
Dehong Huajiang Property Co., Ltd.	255,000.00
Less: Cash and cash equivalents held by subsidiaries on the date of
acquisition	148,280,428.90
Including: Shandong Lanhai Linghang E-commerce Industrial Park
Co., Ltd.	99,086,427.05
Chongqing Aojia Real Estate Co., Ltd.	14,013.19
Zhengzhou Yuanwei Enterprise Management Consulting Co., Ltd.	6,110.80
Henan Guofengyuan Real Estate Co., Ltd.	2,467,315.38
Anhui Xihu Xincheng Real Estate Co., Ltd.	46,158,208.36
Jurong Yifeng Real Estate Development Co., Ltd.	472.55
Chongqing Shunsheng Chengxun Property Management Co., Ltd.	38,188.41
Dehong Huajiang Property Co., Ltd.	509,693.16
Add: Cash and cash equivalents paid for merger of enterprises in the
previous period
Net cash received from subsidiaries	634,611,363.98

— 454 —

APPENDIX II

FINANCIAL INFORMATION OF JINKE PROPERTY

• (3) Composition of cash and cash equivalents

		Amount at
	Amount at the end	the beginning of
Item	of the period	the period
1) Cash	17,258,986,152.21	7,967,303,772.09
Including: Stock cash	642,031.00	833,758.55
Bank deposits used for payment at any time	17,258,344,121.21	7,966,470,013.54
2) Cash equivalents
Including: Bond investments maturing within three
months
3) Ending balance of cash and cash equivalents	17,258,986,152.21	7,967,303,772.09
Including: Cash and cash equivalents restrictedly used
in the parent company or subsidiaries

• (4) Description of supplementary information of cash flow statement

As at 31 December 2016, other monetary funds totaled RMB385,856,061.48, including: guarantee deposits of RMB860,000.00, pledged time deposits of RMB200,000,000.00, bank acceptance deposits of RMB35,863,721.87, mortgage deposits of RMB112,832,267.43, and guarantee letter deposits of RMB36,300,072.18. In the preparation of the cash flow statement, the Company has removed items not tallying with cash and cash equivalents from the cash flow statement.

(IV) Others

1. Assets with ownership or right of use restricted

Book value at Book value at the the beginning of Reason for Item end of the period the period restriction Monetary fund 385,856,061.48 1,421,884,489.74 Margin deposit Accounts receivable [Note] 241,421,238.76 162,071,601.97 Pledged loan Inventories 18,093,358,238.81 18,303,055,894.48 Mortgaged loan Investment properties 637,608,751.33 1,932,254,486.05 Mortgaged loan Fixed assets 1,807,729,827.73 1,369,612,973.13 Mortgaged loan Construction in progress 197,719,075.96 149,031,423.92 Mortgaged loan Intangible assets 4,035,689.71 24,886,771.14 Mortgaged loan Total 21,367,728,883.78 23,362,797,640.43

— 455 —

APPENDIX II

FINANCIAL INFORMATION OF JINKE PROPERTY

• Note: According to the Maximum Pledge Agreement under the Fixed Assets Loan Agreement signed between subsidiary Xinjiang Huaran and Industrial and Commercial Bank of China Limited, Chongqing Jianxin North Road Sub-branch (the Pledgee) for the “Yandun-based Sixth Wind Farm of the 200,000 KW Wind Power Project in Southeast Wind Region in Hami, Xinjiang”, the Pledgor agreed to provide the income from 100,000 KW wind power generation during performance of the principal creditor’s right to the Pledgee as a pledge guarantee; according to the Entrusted Loan Agreement and the Pledge Contract of CMS Super Value - Jinke Property Asset-backed Plan No. 1 under the Asset Transfer Agreement of CMS Super Value — Jinke Property Asset-backed Plan No.1 signed by the Company and the Company’s subsidiary Jinke Property Services Group Limited (the Pledgor) with CMS Asset Management Co., Limited (the Pledgee), the Pledgor agreed to provide all the property service fees and parking management fees it collected to the Pledgee as a pledge guarantee.

According to the Agreement on Sale of Assets under CMS Super Value — Jinke Co., Ltd. Accounts Receivable (Phase I) Asset-backed Plan signed between the Company and CMS Asset Management Co., Limited (hereinafter referred to as “CMS Asset Management”), CMS Asset Management will work out a special plan and use the funds raised for purchasing the creditor’s rights of requiring the house buyers to make payment by (including but not limited to) 26 project companies of the Company and within the consolidation scope as from the date of setting up the special plan and other rights and affiliated security interest (hereinafter referred to as “underlying assets”), and open a supervision account to collect the recoveries generated from underlying assets. Since the scope and amount of the underlying assets change constantly, they cannot correspond to specific amount of accounts receivable with restricted ownership.

2. Foreign currency monetary items

Foreign currency balance at the end Item of the period Exchange rate RMB equivalent Monetary fund 957,447.32 Including: HKD 1,070,371.51 0.8945 957,447.32

— 456 —

FINANCIAL INFORMATION OF JINKE PROPERTY

APPENDIX II

• VI. Change in the consolidation scope

• (I) Merger of enterprises not under the same control

• Merger of enterprises not under the same control in the current period

Unit: RMB’0,000

			Percentage
			of equity
	Acquisition	Acquisition	acquired	Way of
Name of the acquired party	time	cost	(%)	acquisition
Jurong Yifeng Real Estate
Development Co., Ltd.	6 April 2016	8,710.64	100.00	Equity transfer
Anhui Xihu Xincheng Real Estate
Co., Ltd.	31 May 2016	57,753.52	100.00	Equity transfer
Henan Guofengyuan Real Estate
Co., Ltd.	31 May 2016	5,100.00	51.00	Equity transfer
Zhengzhou Yuanwei Enterprise
Management Consulting Co., Ltd.
[Note 1]	31 May 2016	5,000.00	57.14	Equity transfer
Shandong Lanhai Linghang
E-commerce Industrial Park Co.,
Ltd. [Note 2]	30 June 2016	9,896.08	49.00	Equity transfer
Chongqing Aojia Real Estate Co.,	9 September
Ltd. [Note 3]	2016	2,517.60	87.50	Equity transfer
Dehong Huajiang Property Co., Ltd.	30 June 2016	25.50	51.00	Equity transfer
Chongqing Shunsheng Chengxun
Property Management Co., Ltd.	1 January 2016	0.00	100.00	Equity transfer

— 457 —

APPENDIX II

FINANCIAL INFORMATION OF JINKE PROPERTY

				Net profit of
			Revenue of the	the acquired
			acquired party	party from the
			from the date	date of
		Determination	of acquisition	acquisition to
Name of the acquired	Date of	basis for the date	to the end of	the end of the
party	acquisition	of acquisition	the period	period
Jurong Yifeng Real	6 April 2016	Handover date of		-631.47
Estate Development		property right
Co., Ltd.
Anhui Xihu Xincheng	31 May 2016	Handover date of	41,738.50	3,500.64
Real Estate Co., Ltd.		property right
Henan Guofengyuan	31 May 2016	Handover date of		-914.90
Real Estate Co., Ltd.		property right
Zhengzhou Yuanwei	31 May 2016	Handover date of		-118.09
Enterprise		property right
Management
Consulting Co., Ltd.
Shandong Lanhai	30 June 2016	Handover date of		-193.61
Linghang E-commerce		property right
Industrial Park Co.,
Ltd.
Chongqing Aojia Real	9 September	Handover date of		-1.12
Estate Co., Ltd.	2016	property right
Dehong Huajiang	30 June 2016	Handover date of	118.43	11.55
Property Co., Ltd.		property right
Chongqing Shunsheng	1 January 2016	Handover date of	535.90	65.49
Chengxun Property		property right
Management Co., Ltd.

• Note 1: The Company’s subsidiary Wuxi Jinke acquired 57.14% equity of Zhengzhou Yuanwei Enterprise Management Consulting Co., Ltd. (hereinafter referred to as “Yuanwei Consulting”) held by a natural person shareholder at a price of RMB50 million, and Yuanwei Consulting held 70.00% equity of Henan Zhongjian Jinlun Real Estate Co., Ltd. (hereinafter referred to as “Zhongjian Jinlun”); according to the agreement, Wuxi Jinke could have control over the operation and management of Yuanwei Consulting and Zhongjian Jinlun, so it was incorporated into the scope of the consolidated financial statements.

• Note 2: The Company’s subsidiary Shandong Baijun Real Estate Development Co., Ltd. (hereinafter referred to as “Shandong Baijun”) acquired 49.00% equity of Shandong Lanhai Linghang E-commerce Industrial Park Co., Ltd. (hereinafter referred to as “Shandong Lanhai”) held by Bangni Group Co., Ltd. (hereinafter referred to as “Bangni Group”) at a price of RMB98,960,800, and according to the supplementary agreement, Bangni Group will transfer 1.00% equity to subsidiary Jurong Yifeng Real Estate Development Co., Ltd. (hereinafter referred to as “Jurong Yifeng”); Shandong Lanhai held 100.00% equity of Shandong Linghang Real Estate Co., Ltd. (hereinafter referred to as “Linghang Real Estate”); since the Company could have control over the operation and management of Shandong Lanhai and Linghang Real Estate, they were incorporated into the scope of the consolidated financial statements. As at the date of this report, Jurong Yifeng had obtained 1.00% equity of Bangni Group and the Company held 50.00% equity in Shandong Lanhai through its subsidiary.

— 458 —

APPENDIX II

FINANCIAL INFORMATION OF JINKE PROPERTY

• Note 3: The Company’s subsidiary Chonqing Jinke Real Estate Development Co., Ltd. (hereinafter referred to as “Chonqing Jinke”) acquired the equity investment interests of Chongqing Aojia Real Estate Co., Ltd. (hereinafter referred to as “Aojia Real Estate”) held by a natural person shareholder at a price of RMB7,676,000 and increased RMB17.5 million of investment in Aojia Real Estate; after the capital increase, Chonqing Jinke held 87.50% equity in Aojia Real Estate; according to the agreement, Chonqing Jinke could have control on the operation and management of Aojia Real Estate, so it was incorporated into the scope of the consolidated financial statements.

• Merger cost and goodwill

							Unit: RMB’0,000	Unit: RMB’0,000
	Jurong	Xincheng	Guofengyuan	Yuanwei	Shandong	Aojia Real	Dehong	Shunsheng
Item	Yifeng	Real Estate	Real Estate	Consulting	Lanhai	Estate	Huajiang	Chengxun
Merger cost
Cash	8,710.64	57,753.52	5,100.00	5,000.00	9,896.08	2,517.60	25.50	0.00
Total merger cost	8,710.64	57,753.52	5,100.00	5,000.00	9,896.08	2,517.60	25.50	0.00
Less: Share of the fair
value of the acquired
identifiable net assets	8,679.88	56,769.90	5,100.00	-0.22	9,868.34	2,585.97	25.46	-67.83
Amount of goodwill/merger
cost below the share of
the fair value of the
acquired identifiable net	30.76	983.62	0.00	5,000.22	27.74	-68.37	0.04	67.83
assets	[Note 1]	[Note 1]	[Note 1]	[Note 1]	[Note 1]	[Note 2]	[Note 3]	[Note 4]

• Note 1: As the acquisition was mainly for acquisition of project land, the Company stated the difference of the merger cost above the fair value of identifiable net assets as the premium of the land to be acquired in the consolidated financial statements.

• Note 2: The cost for Chongqing Jinke’s acquisition of 87.50% equity of Aojia Real Estate in the current period was RMB25,176,000, and on the date of acquisition, the fair value of the identifiable net assets of Aojia Real Estate that Chongqing Jinke was entitled to was RMB25,859,700, so RMB683,700 of difference of the merger cost below the fair value of identifiable net assets was stated as non-operating revenue.

• Note 3: According to the Cooperation Agreement signed between the Company’s subsidiary Jinke Property and Dehong Huajiang Real Estate Development Co., Ltd., Jinke Property acquired 51.00% equity of Dehong Huajiang at a consideration of RMB255,000, and on the date of acquisition, Jinke Property was entitled to RMB254,600 of the net assets of Dehong Huajiang as per the shareholding percentage of 51.00% and the recognized goodwill of merger of enterprises not under the same control was RMB400.

• Note 4: According to the Cooperation Agreement signed between Jinke Property and a natural person shareholder, Jinke Property acquired 100.00% equity of Shunsheng Chengxun at a consideration of RMB0.00, and on the date of acquisition, Jinke Property was entitled to RMB-678,300 of the net assets of Shunsheng Chengxun and the recognized goodwill of merger of enterprises not under the same control was RMB678,300.

— 459 —

FINANCIAL INFORMATION OF JINKE PROPERTY

APPENDIX II

1. Identifiable assets and liabilities of the acquired party as of the date of acquisition

(1) Details

Unit: RMB

	**Jurong **	Yifeng	Xincheng Real Estate	Xincheng Real Estate
	Fair value on	Book value on	Fair value on	Book value on
	the date of	the date of	the date of	the date of
Item	acquisition	acquisition	acquisition	acquisition
Assets	722,703,278.81	648,882,553.02	1,633,347,019.06	893,920,786.29
Monetary fund	472.55	472.55	46,158,208.36	46,158,208.36
Advance payments			135,907,328.48	135,907,328.48
Other receivables			18,133,793.19	18,051,759.80
Inventories	722,702,806.26	648,882,080.47	1,400,600,886.44	663,063,084.50
Other current assets			16,143,280.65	16,143,280.65
Fixed assets			1,961,980.00	135,074.21
Deferred tax assets			14,441,541.94	14,462,050.29
Liabilities	635,904,482.68	635,904,441.12	1,065,647,983.32	1,065,647,983.32
Payables	35,377.26	35,371.00	142,798,007.42	142,798,007.42
Advance receipts			275,686,316.74	275,686,316.74
Remuneration payable
to employees			7,763.56	7,763.56
Taxes payable			14,313,424.51	14,313,424.51
Other payables	635,869,105.42	635,869,070.12	632,842,471.09	632,842,471.09
Net assets	86,798,796.13	12,978,111.90	567,699,035.74	-171,727,197.03
Less: Minority interests
Net assets acquired	86,798,796.13	12,978,111.90	567,699,035.74	-171,727,197.03

— 460 —

APPENDIX II

FINANCIAL INFORMATION OF JINKE PROPERTY

	Guofengyuan Real Estate	Guofengyuan Real Estate	Yuanwei Consulting	Yuanwei Consulting
	Fair value on	Book value on	Fair value on	Book value on
	the date of	the date of	the date of	the date of
Item	acquisition	acquisition	acquisition	acquisition
Assets	224,895,588.55	224,895,588.55	453,868,990.80	453,868,990.80
Monetary fund	492,974.83	492,974.83	2,863,110.80	2,863,110.80
Advance payments	200,465,107.15	200,465,107.15
Other receivables	33,316.89	33,316.89	311,143,000.00	311,143,000.00
Inventories	18,015,826.00	18,015,826.00	139,862,880.00	139,862,880.00
Fixed assets	5,827,696.96	5,827,696.96
Intangible assets	60,666.72	60,666.72
Liabilities	153,220,027.17	153,220,027.17	453,874,500.00	453,874,500.00
Payables	7,784.00	7,784.00
Taxes payable	6,459.84	6,459.84
Other payables	153,205,783.33	153,205,783.33	453,874,500.00	453,874,500.00
Net assets	71,675,561.38	71,675,561.38	-5,509.20	-5,509.20
Less: Minority interests	20,675,561.38	20,675,561.38	-3,305.63	-3,305.63
Net assets acquired	51,000,000.00	51,000,000.00	-2,203.57	-2,203.57
	Shandong Lanhai		Aojia Real Estate
	Fair value on	Book value on	Fair value	Book value on
	the date of	the date of	on the date of	the date of
Item	acquisition	acquisition	acquisition	acquisition
Assets	273,754,359.46	273,745,049.18	106,473,210.45	95,274,013.19
Monetary fund	99,086,427.05	99,086,427.05	17,514,013.19	17,514,013.19
Other receivables	121,366,521.90	121,366,521.90
Inventories	52,241,639.52	52,230,069.52
Fixed assets	347,969.78	350,229.50
Development expenses			88,959,197.26	77,760,000.00
Deferred tax assets	711,801.21	711,801.21
Liabilities	72,359,626.83	72,359,626.83	76,919,237.26	75,282,240.00
Payables	3,209,816.61	3,209,816.61	59,662,240.00	59,662,240.00
Taxes payable	1,314,601.29	1,314,601.29
Interest payable			1,636,997.26
Other payables	65,235,208.93	65,235,208.93	15,620,000.00	15,620,000.00
Deferred earnings	2,600,000.00	2,600,000.00
Net assets	201,394,732.63	201,385,422.35	29,553,973.19	19,991,773.19
Less: Minority interests	102,711,313.64	102,706,565.40	3,694,246.65	2,498,971.65
Net assets acquired	98,683,418.99	98,678,856.95	25,859,726.54	17,492,801.54

— 461 —

APPENDIX II

FINANCIAL INFORMATION OF JINKE PROPERTY

	Dehong Huajiang	Dehong Huajiang	**Shunsheng **	Chengxun
	Fair value on	Book value on	Fair value on	Book value on
	the date of	the date of	the date of	the date of
Item	acquisition	acquisition	acquisition	acquisition
Assets	511,800.24	511,800.24	1,723,890.94	1,723,890.94
Monetary fund	509,693.16	509,693.16	38,188.41	38,188.41
Receivables			1,662,948.97	1,662,948.97
Other receivables	2,107.08	2,107.08	2,000.00	2,000.00
Fixed assets			20,753.56	20,753.56
Liabilities	12,620.24	12,620.24	2,402,233.66	2,402,233.66
Advance receipts			538,431.80	538,431.80
Taxes payable			123,100.54	123,100.54
Other payables	12,620.24	12,620.24	1,740,701.32	1,740,701.32
Net assets	499,180.00	499,180.00	-678,342.72	-678,342.72
Less: Minority interests	244,598.20	244,598.20
Net assets acquired	254,581.80	254,581.80	-678,342.72	-678,342.72

• (2) Methods of determining the fair value of identifiable assets and liabilities

The fair value of identifiable assets and liabilities of the said acquired party as of the date of acquisition was mainly determined based on the estimated value determined by the transaction parties on the evaluation date or the book value of the acquired party on the date of acquisition.

(II) Change in the consolidation scope for other reasons

1. Increase of the consolidation scope

	Way of		Contribution	Percentage
Company name	acquisition	Acquisition time	amount	(%)
Chengdu Jinke	New	2 June 2016	50,000,000.00	100.00
Zhanhong Real Estate	establishment
Development Co., Ltd.
Chongqing Jinke Kejian	New	17 February 2016	45,000,000.00	90.00
Real Estate Co., Ltd.	establishment
Chongqing Jusihai	New	31 October 2016	10,000,000.00	100.00
Enterprise	establishment
Management Co., Ltd.
Nanning Jinzhuoli Real	New	15 December 2016	30,000,000.00	100.00
Estate Development	establishment
Co., Ltd.

— 462 —

FINANCIAL INFORMATION OF JINKE PROPERTY

APPENDIX II

	Way of		Contribution	Percentage
Company name	acquisition	Acquisition time	amount	(%)
Liuzhou Jinmingliu Real	New	19 December 2016		100.00
Estate Development	establishment
Co., Ltd.
Jinke Property Group	New	25 May 2016		100.00
(Wuhan) Co., Ltd.	establishment
Nanjing Jinke Tianchen	New	19 May 2016	50,000,000.00	100.00
Real Estate Co., Ltd.	establishment
Hunan Jinke Yida	New	14 September 2016	5,000,000.00	100.00
Industry Operation	establishment
and Management Co.,
Ltd.
Shenzhen Jinke Industry	New	11 April 2016	50,000,000.00	100.00
Investment Fund	establishment
Management Co., Ltd.
Chongqing Tengjie	New	25 March 2016		100.00
Trading Co., Ltd.	establishment
Chengdu Hongteng	New	16 March 2016		100.00
Century Business	establishment
Management Co., Ltd.
Tianjin Jinke Binsheng	New	8 December 2016		100.00
Real Estate Co., Ltd.	establishment
Hefei Jinke Baijun Real	New	30 December 2016		100.00
Estate Development	establishment
Co., Ltd.
Hefei Jinke Juncheng	New	30 December 2016		100.00
Real Estate	establishment
Development Co., Ltd.
Hefei Jinke Tianchen	New	30 December 2016		100.00
Real Estate	establishment
Development Co., Ltd.
Joint ventures	New	[Note]
co-invested by	establishment
employees

Note: According to the Management Measures of Jinke Property Group Co., Ltd. on Employee Co-investment in Real Estate Project Companies (hereinafter referred to as Co-investment Management Measures ) deliberated and adopted at the 19th meeting of the 9th Board of Directors and the 4th extraordinary general meeting 2015 of the Company, employees of the Company jointly invested in newly acquired real estate projects through newly established limited partnerships. During the reporting period, nine limited partnerships (hereinafter referred to as “co-invested joint ventures”) were established according to the Co-investment Management Measures , including Shihezi Jinke Zhongsheng Yi Equity Investment Limited Partnership and Shihezi Jinke Zhongsheng Qi Equity Investment Limited Partnership; the Company’s wholly-owned subsidiary Chongqing Tianjin Business Consulting Services Co., Ltd. (hereinafter referred to as “Tianjin Consulting”) served as general partner of the said partnerships; all partners invested a total of RMB47.87 million in the co-invested joint ventures, among which, RMB10 million from Tianjin Consulting and RMB37.87 million from employees.

— 463 —

FINANCIAL INFORMATION OF JINKE PROPERTY

APPENDIX II

1. Decrease of the consolidation scope

Net profit from the beginning of Net assets on the period to Way of the date of the date of Company name disposal Disposal time disposal disposal Chongqing Casin Liquidation and 4 August 2016 -905,154.29 Jiangjing Real Estate cancellation Development Co., Ltd.

• VII. Interests in other entities

• (I) Interests in significant subsidiaries

• Significant subsidiaries

Principal Shareholding operating Place of Business percentage (%) Way of Subsidiary name base registration nature Direct Indirect acquisition Beijing Jinke Zhanhao Beijing 135-2002, 2/F, No. Real estate 100.00 Establishment Real Estate Co., Ltd. 135, Fuqiang Road, (hereinafter referred Huangcun Town, to as “Beijing Daxing District, Zhanhao”) Beijing Wuxi Jinke Real Estate Wuxi No. 100, Guangze Real estate 100.00 Establishment Development Co., Road, Wuxi Ltd. (hereinafter referred to as “Wuxi Jinke”) Chongqing Jinke Junyao Chongqing Binhu Road, Real estate 55.00 45.00 Establishment Real Estate Yunfeng, Kaixian Development Co., County, Chongqing Ltd. (hereinafter (Jinke Kaizhou referred to as “Junyao City) Real Estate”)

— 464 —

APPENDIX II

FINANCIAL INFORMATION OF JINKE PROPERTY

	Principal			Shareholding	Shareholding
	operating	Place of	Business	**percentage **	(%)		Way of
Subsidiary name	base	registration	nature	Direct	Indirect		acquisition
Chongqing Jinke Real	Yubei District,	No. 161-197-2,	Real estate	100.00			Merger of
Estate Development	Chongqing	Shuangning Road,					enterprises
Co., Ltd. (hereinafter		Renhe Town, Yubei					under the same
referred to as		District, Chongqing					control
“Chongqing Jinke”)
Jiangyin Jinke Real	Jiangyin	Chongwen Road,	Real estate	99.00		1.00	Merger of
Estate Development		Lingang Street,					enterprises
Co., Ltd. (hereinafter		Jiangyin					under the same
referred to as							control
“Jiangyin Jinke”)
Wuxi Jinke Jiarun Real	Wuxi	No. 501, Nanhu	Real estate		100.00		Merger of
Estate Development		Avenue, Wuxi					enterprises
Co., Ltd. (hereinafter							under the same
referred to as “Wuxi							control
Jiarun”)
Chongqing Qingke	Fuling	No. 88, Xingyi	Commercial	88.00	12.00		Merger of
Trading Co., Ltd.	District,	South Road, Yihe					enterprises
(hereinafter referred	Chongqing	Town, Fuling					under the same
to as “Qingke		District, Chongqing					control
Trading”)
Chongqing Jinke Xingju	Chongqing	No. 2-1, 2-2 and	Real estate		100.00		Establishment
Real Estate Co., Ltd.		2-5-1, Zengfeng
(hereinafter referred		Road, Zengjia
to as “Xingju Real		Town, Shapingba
Estate”)		District, Chongqing

— 465 —

FINANCIAL INFORMATION OF JINKE PROPERTY

APPENDIX II

1. Significant non-wholly owned subsidiaries

			Dividend
		Gains/losses	announced to be
		attributable to	distributed to	Balance of
	Shareholding	minority	minority	minority
	percentage of	shareholders in	shareholders in	interests at
	minority	the current	the current	the end of
Subsidiary name	shareholders	period	period	the period
Chongqing Jinke Zhongjun Real
Estate Development Co., Ltd.
(hereinafter referred to as
“Zhongjun Real Estate”)	49.00%	165,500,809.62	135,800,000.00	167,314,852.78
Jinan Jinke Xicheng Real Estate
Development Co., Ltd.
(hereinafter referred to as “Jinan
Jinke”)	49.00%	100,675,736.40		541,330,324.74
Xinjiang Huaran Oriental New
Energy Co., Ltd. (hereinafter
referred to as “Huaran
Oriental”)	3.49%	2,890.77		32,289,550.48
Chongqing Jinke Kunji Real
Estate Development Co., Ltd.
(hereinafter referred to as “Jinke
Kunji”)	49.00%	52,380,499.43		142,711,174.81
Chongqing Jinke Huiyi Real
Estate Development Co., Ltd.
(hereinafter referred to as
“Huiyi Real Estate”)	20.00%	27,240,584.33		82,437,511.62
Zhangjiagang Bonded Area Jinke
Ruifeng Real Estate
Development Co., Ltd.
(hereinafter referred to as
“Zhangjiagang Jinke”)	30.00%	61,313,900.93	45,000,000.00	79,742,481.92

— 466 —

APPENDIX II

FINANCIAL INFORMATION OF JINKE PROPERTY

1. Main financial information of significant non-wholly owned subsidiaries

2. (1) Assets and liabilities

Unit: RMB’0,000

		**Amount at the end **	**Amount at the end **	of the period	of the period
	Current	Non-current		Current	Non-current	Total
Subsidiary name	assets	assets	Total assets	liabilities	liabilities	liabilities
Zhongjun Real Estate	129,304.01	1,301.61	130,605.62	96,276.24	183.49	96,459.73
Jinan Jinke	403,910.32	4,823.58	408,733.90	287,258.33	11,000.00	298,258.33
Huaran Oriental	49,021.83	182,776.93	231,798.76	32,396.13	106,882.43	139,278.56
Jinke Kunji	85,921.14	1,339.78	87,260.92	58,136.19		58,136.19
Huiyi Real Estate	230,987.23	2,888.87	233,876.10	156,657.35	36,000.00	192,657.35
Zhangjiagang Jinke	85,302.50	361.10	85,663.60	58,537.31	545.46	59,082.77
		**Amount **	at the beginning of the period
	Current	Non-current		Current	Non-current	Total
Subsidiary name	assets	assets	Total assets	liabilities	liabilities	liabilities
Zhongjun Real Estate	282,723.70	4,768.05	287,491.75	180,995.48		180,995.48
Jinan Jinke	472,394.36	4,081.73	476,476.09	371,139.32	15,407.27	386,546.59
Huaran Oriental	32,424.01	134,057.68	166,481.69	128,175.32		128,175.32
Jinke Kunji	147,591.63	761.72	148,353.35	109,918.52	20,000.00	129,918.52
Huiyi Real Estate	241,975.94	1,443.64	243,419.58	189,865.11	25,956.00	215,821.11
Zhangjiagang Jinke	173,226.96	2,328.88	175,555.84	154,412.98		154,412.98

• (2) Gains/losses and cash flows

Unit: RMB’0,000

	**Amount in the **	**Amount in the **	current period	current period	**Amount in **	the same period of preceding year	the same period of preceding year	the same period of preceding year
				Cash flows				Cash flows
			Total	from			Total	from
	Operating		consolidated	operating	Operating		consolidated	operating
Subsidiary name	revenue	Net profit	revenue	activities	revenue	Net profit	revenue	activities
Zhongjun Real
Estate	148,913.77	33,775.68	33,775.68	51,015.39	24,925.31	1,941.18	1,941.18	78,178.21
Jinan Jinke	163,038.61	20,546.07	20,546.07	132,752.92	8.43	-3,276.63	-3,276.63	-14,960.03
Huaran Oriental	14,081.28	5.03	5.03	17,894.61	12,196.84	280.06	280.06	11,115.13
Jinke Kunji	48,361.59	10,689.90	10,689.90	26,290.34	0.28	-1,558.63	-1,558.63	-13,931.76
Huiyi Real Estate	102,989.55	13,620.29	13,620.29	-776.85	73,260.86	11,341.02	11,341.02	4,629.43
Zhangjiagang Jinke	105,047.45	20,437.97	20,437.97	58,550.74	24,965.27	3,094.05	3,094.05	25,861.44

— 467 —

FINANCIAL INFORMATION OF JINKE PROPERTY

APPENDIX II

• (II) Control over subsidiaries’ transactions despite change in owners’ equity in subsidiaries

• Descriptions of change in owners’ equity in subsidiaries

		Shareholding	Shareholding
		percentage	percentage
Subsidiary name	Change time	before change	after change
Chongqing Jinke Junwei Real Estate
Development Co., Ltd. (hereinafter referred
to as “Jinke Junwei”)	August 2016	80.00%	100.00%
Chongqing Jinke Hongrui Real Estate
Development Co., Ltd. (hereinafter referred
to as “Jinke Hongrui”)	August 2016	80.00%	100.00%
Neijiang Jinke Liju Real Estate Development
Co., Ltd. (hereinafter referred to as
“Neijiang Liju”)	March 2016	100.00%	71.00%
Chongqing Jinke Hexu Real Estate
Development Co., Ltd. (hereinafter referred
to as “Hexu Real Estate”)	September 2016	51.00%	100.00%
Xinjiang Huaran Oriental New Energy Co.,
Ltd. (hereinafter referred to as “Xinjiang
Huaran”)	December 2016	94.25%	96.51%

1. Impact of transactions on minority interests and equity attributable to owners of the parent company

				Hexu Real	Xinjiang
Item	**Jinke Junwei **	Jinke Hongrui	Neijiang Liju	Estate	Huaran
Acquisition cost/disposal
consideration
Cash	184,712,900.00	92,356,500.00	46,450,000.00	294,000,000.00	542,087,958.01
Acquisition cost/disposal
consideration
Total	184,712,900.00	92,356,500.00	46,450,000.00	294,000,000.00	542,087,958.01
Less: Share in net assets
of subsidiaries
calculated in proportion
to the equity
acquired/disposed	143,003,235.42	79,853,663.53	42,619,613.32	306,425,974.18	531,827,466.06
Difference	-41,709,664.58	-12,502,836.47	3,830,386.68	12,425,974.18	-10,260,491.95
Including: Adjusted capital
reserve	-41,709,664.584	-12,502,836.47	3,830,386.68	12,425,974.18	-10,260,491.95
Adjusted surplus reserve

— 468 —

FINANCIAL INFORMATION OF JINKE PROPERTY

APPENDIX II

• (III) Interests in joint ventures or associated enterprises

• Significant joint ventures or associated enterprises

Accounting for investment in Principal Shareholding joint venture or Name of joint venture or place of Place of Business percentage (%) associated associated enterprise business incorporation nature Direct Indirect enterprise Chongqing Yinhai Finance Chongqing New North Similar 5.51 Equity method Leasing Co., Ltd. Zone, financial [Note] (hereinafter referred to as Chongqing industry “Yinhai Leasing”) Nanning Sunac Shicheng Guangxi Nanning Real estate 49.00 Equity method Property Co., Ltd. (hereinafter referred to as “Nanning Sunac”) Xinjiang Jinke New Energy Xinjiang Xinjiang Equity 49.875 Equity method Equity Investment Joint investment Venture (limited partnership) (hereinafter referred to as “New Energy Investment”)

• Note: The Company has appointed representatives to the Board of Directors of Yinhai Leasing and therefore has the right to participate in deciding the financial and operating policies of Yinhai Leasing and has material impact on Yinhai Leasing.

— 469 —

FINANCIAL INFORMATION OF JINKE PROPERTY

APPENDIX II

1. Main financial information of significant joint ventures

		Unit: RMB’0,000
		Amount at the
	Amount at the	beginning of the
	end of the	period/amount in
	period/amount in	the same period of
	the current period	preceding year
	New Energy	New Energy
Item	Investment	Investment
Current assets	40,730.23	35,000.00
Non-current assets
Total assets	40,730.23	35,000.00
Current liabilities
Non-current liabilities
Total liabilities
Minority interests
Equity attributable to owners of the parent company	40,730.23	35,000.00
Proportionate share in net assets	20,314.33	20,000.00
Adjustments
Goodwill
Unrealized profit of internal transaction
Others
Book value of equity investments in joint ventures	20,314.33	20,000.00
Fair value of equity investments in joint ventures with
quoted price
Operating revenue
Net profit	630.23
Net profit from discontinued operation
Other consolidated revenue
Total consolidated revenue	630.23
Dividend received from joint ventures in the current
period

— 470 —

APPENDIX II

FINANCIAL INFORMATION OF JINKE PROPERTY

1. Main financial information of significant associated enterprises

Unit: RMB’0,000

	Amount at the end of the	Amount at the end of the
	period/amount in the current period
Item	Nanning Sunac	Yinhai Leasing
Current assets	220,722.09	207,389.62
Non-current assets		253,795.93
Total assets	220,722.09	461,185.55
Current liabilities	791.00	129,650.19
Non-current liabilities	120,000.00	193,531.57
Total liabilities	120,791.00	323,181.76
Minority interests
Equity attributable to owners of the parent company	99,931.09	138,003.79
Proportionate share in net assets	48,966.23	7,604.01
Adjustments
Goodwill
Unrealized profit of internal transaction
Others
Book value of equity investments in associated
enterprises	48,966.23	7,604.01
Fair value of equity investments in associated enterprises
with quoted price
Operating revenue		23,339.52
Net profit	-68.91	8,494.78
Net profit from discontinued operation
Other consolidated revenue
Total consolidated revenue	-68.91	8,494.78
Dividend received from associated enterprises in the
current period		551.47

— 471 —

FINANCIAL INFORMATION OF JINKE PROPERTY

APPENDIX II

	**Amount at the beginning **	**Amount at the beginning **	of the
	**period/amount in the **	**same **	period of
	**preceding **	year
Item	Nanning Sunac	Yinhai Leasing
Current assets			140,164.96
Non-current assets			184,195.35
Total assets			324,360.31
Current liabilities			78,263.27
Non-current liabilities			104,838.79
Total liabilities			183,102.06
Minority interests
Equity attributable to owners of the parent company			141,258.25
Proportionate share in net assets			7,783.33
Adjustments
Goodwill
Unrealized profit of internal transaction
Others
Book value of equity investments in associated
enterprises			7,783.33
Fair value of equity investments in associated enterprises
with quoted price
Operating revenue			27,998.19
Net profit			9,833.35
Net profit from discontinued operation
Other consolidated revenue
Total consolidated revenue			9,833.35
Dividend received from associated enterprises in the
current period			716.92

— 472 —

APPENDIX II

FINANCIAL INFORMATION OF JINKE PROPERTY

1. Summary financial information of insignificant joint ventures and associated enterprises

		Amount at the
	Amount at the end	beginning of the
	of the	period/amount in
	period/amount in	the same period of
Item	the current period	preceding year
Joint venture
Total book value of investments	9,923,257.02	9,996,804.01
Total of the following items calculated as per
the shareholding percentage
Net profit	-73,547.00	2,298.93
Other consolidated revenue
Total consolidated revenue	-73,547.00	2,298.93
Associated enterprises
Total book value of investments	7,471,538.84	103,257,162.43
Total of the following items calculated as per
the shareholding percentage
Net profit	-135,320,424.79	-21,506,811.67
Other consolidated revenue
Total consolidated revenue	-135,320,424.79	-21,506,811.67

VIII. Risks related to financial instruments

The Company carries out risk management for the purpose of seeking an appropriate balance between the risks and revenues, minimizing the negative impact from risks on the Company’s operating results and maximizing the interests of shareholders and other equity investors. Based on such objectives, the Company’s risk management policies are established to identify and analyze the risks faced by the Company, to set appropriate risk bottom line and controls, and to supervise various risks in prompt and reliable manner so as to control the risks within a limited range.

The Company is exposed to the following risks from its use of financial instruments in the daily operation, which mainly include credit risk, liquidity risk and market risk. The management has deliberated and approved policies concerning management of such risks, as summarized below.

(I) Credit risk

Credit risk is the risk that one party to a financial instrument fails to fulfill the obligations, thereby causing financial loss to the other party.

The Company’s credit risk is primarily attributable to bank balances and receivables. To control the aforesaid related risks, the Company takes the following measures respectively.

— 473 —

FINANCIAL INFORMATION OF JINKE PROPERTY

APPENDIX II

Bank deposit

The Company deposits its bank balances in financial institutions with good credit rating, so its credit risk is low.

(2) Receivables

The Company has established a sound receivables risk management and internal control system to regularly assess customers’ credit and monitor balance of receivables therefrom, and strictly implements the receivables collection procedure, to avoid significant risks in bad debts.

The Company’s accounts receivable risks are distributed in multiple partners and customers. As at 31 December 2016, 26.87% of the Company’s accounts receivable (31 December 2015: 25.95%) was due from the five top customers in balance, and the Company did not have major credit concentration risk.

• (1) Amount of the Company’s receivables which have neither been overdue nor impaired and those which have been overdue but unimpaired and relevant aging analysis are as follows:

Amount at the end of the period

	Receivables
	neither	**Receivables overdue **		but
	overdue	unimpaired
	nor	Within 1		Above 2
Item	impaired	year	1-2 years	years	Total
Other receivables	2,068,040,223.85				2,068,040,223.85
Subtotal	2,068,040,223.85				2,068,040,223.85

Amount at the beginning of the period

	Receivables
	neither	**Receivables overdue **		but
	overdue	unimpaired
	nor	Within 1		Above 2
Item	impaired	year	1-2 years	years	Total
Other receivables	498,663,626.13				498,663,626.13
Subtotal	498,663,626.13				498,663,626.13

• (2) For receivables with provision for impairment withdrawn on an individual basis, please refer to receivables in the notes to the consolidated financial statements in the Notes to the Financial Statements.

— 474 —

FINANCIAL INFORMATION OF JINKE PROPERTY

APPENDIX II

(II) Liquidity risk

Liquidity risk is the risk of capital shortage incurred when the Company performs the obligation of cash or other financial assets settlement and is possibly attributable to failure in selling financial assets at fair value on a timely basis, or failure in collecting liabilities from counterparts to contracts, or early redemption of debts, or failure in generating estimated cash flows.

To control such risk, the Company leveraged financing tools such as note settlement, bank borrowings, trust borrowing, etc., and appropriately adopted long/short-term financing methods to improve the financing structure, and maintained a balance between financing sustainability and flexibility. The Company has obtained bank credit limits from several commercial banks and trust institutions to satisfy working capital requirements and expenditures.

Financial liabilities classified based on remaining time period till maturity

Unit: RMB’0,000

		**Amount at the end of the **	**Amount at the end of the **	period
		Undiscounted
		contract			Above
Item	Book value	amount Within 1 year		1-3 years	3 years
Borrowings	2,514,835.14	2,948,491.32	1,020,118.45	1,455,642.92	472,729.95
Notes payable	3,586.37	3,586.37	3,586.37
Accounts payable	755,459.57	815,227.76	815,227.76
Other payables	520,919.97	481,349.94	481,349.94
Bonds payable	1,889,127.72	2,195,261.33		1,947,759.11	247,502.22
Long-term payables	49,882.43	64,940.41	3,953.40	12,908.33	48,078.68
Subtotal	5,733,811.20	6,508,857.13	2,324,235.92	3,416,310.36	768,310.85
		**Amount at the beginning of **		the period
		Undiscounted
		contract
Item	Book value	amount Within 1 year		**1-3 years **	Above 3 years
Borrowings	3,312,021.96	3,636,195.54	2,068,464.67	1,210,622.98	357,107.89
Notes payable	131,721.40	131,721.40	131,721.40
Accounts payable	811,978.91	811,978.91	811,978.91
Other payables	290,261.87	290,261.87	290,261.87
Bonds payable	531,325.73	655,741.81		395,226.25	260,515.56
Subtotal	5,077,309.87	5,525,899.53	3,302,426.85	1,605,849.23	617,623.45

— 475 —

FINANCIAL INFORMATION OF JINKE PROPERTY

APPENDIX II

(III) Market risk

Market risk refers to the risk that the fair value or future cash flow of a financial instrument fluctuates because of change in market price. Market risks mainly include interest rate risk and foreign exchange risk.

1. Interest rate risk

Interest rate risk is the risk that the fair value or future cash flow of a financial instrument fluctuates because of change in market interest rate. The Company’s market interest rate risk mainly relates to the Company’s borrowings with interest calculated at floating interest rate.

As at 31 December 2016, the Company’s borrowings with interest calculated at floating interest rate amounted to RMB6,614,351,800 (31 December 2015: RMB13,175,970,000); supposed that other variations remain unchanged and interest rate increases/decreases 50 bps, the Company’s total profit and shareholders’ interests will not be significantly affected.

2. Foreign currency risk

Foreign currency risk is the risk that the fair value or future cash flow of a financial instrument fluctuates because of change in exchange rate. The Company’s exchange rate risk mainly relates to the Company’s foreign currency monetary assets and liabilities. As the Company operates its business in mainland China, its main business activities are denominated in RMB. Therefore, the exchange rate risk undertaken by the Company is insignificant.

For the Company’s foreign currency monetary assets and liabilities at the end of the period, please refer to foreign currency monetary items in others in the notes to the consolidated financial statements in the Notes to the Financial Statements.

IX. Disclosure of fair value

• (I) Details of the fair value of assets and liabilities measured at fair value at the end of the period

		Fair value at the end of the period	Fair value at the end of the period
	Level 1	Level 2	Level 3
	fair value	fair value	fair value
Item	measurement	measurement	measurement	Total
Recurring fair value
measurement
Investment properties		2,885,492,754.63		2,885,492,754.63
Buildings rented		2,885,492,754.63		2,885,492,754.63

— 476 —

FINANCIAL INFORMATION OF JINKE PROPERTY

APPENDIX II

• (II) Qualitative and quantitative information of evaluation techniques and important parameters for recurring and non-recurring level 2 fair value measurements

The buildings rented out by the Company are all commercial properties and supporting garages thereof, and their costs are insufficient to reflect the fair value thereof, so evaluation is not carried out by cost method; according to the actual condition of the buildings rented, for small commercial properties, as the transaction markets around them are active and it is easy to find transaction cases of similar properties, evaluation is carried out by market method; for large commercial properties for which it is difficult to find relevant transaction cases, as the lease markets of similar properties around them are active and some buildings rented are restricted by long-term lease contracts, evaluation is carried out by income method.

• X. Connected parties and connected transactions

• (I) Connected parties

• Principal shareholders of the Company

Name of principal shareholders

Place of registration

Business nature

• Chongqing Jinke Investment No. 88 Xingyi South Road, Yihe Investment business and Holdings (Group) Co., Ltd. Town, Fuling District, Chongqing investment management consulting services

• Tianjin Jujin Property No. 8, Xinghua Qizhi Road, Xiqing Property management and Management Co., Ltd. Economic Development Zone, relevant infrastructure Tianjin development, construction, operation & management

		Shareholding	Voting right
		percentage	percentage
	Registered	over the	over the
	capital	Company	Company
Name of principal shareholders	(RMB’0,000)	(%)	(%)	Notes
Chongqing Jinke Investment
Holdings (Group) Co., Ltd.	5,000			[Note 1]
Tianjin Jujin Property Management
Co., Ltd.	1,000			[Note 2]

Note 1: As at 31 December 2016, Chongqing Jinke Investment Holdings (Group) Co., Ltd. (hereinafter referred to as Jinke Investment), Huang Hongyun and Tao Hongxia severally held 14.20%, 9.55% and 2.49% shares of the Company; as Huang Hongyun and his wife Tao Hongxia jointly held 100% shares of Jinke Investment, they directly and indirectly held 26.24% shares of the Company and were the ultimate controllers of the Company.

— 477 —

APPENDIX II

FINANCIAL INFORMATION OF JINKE PROPERTY

• Note 2: In September 2016, the Company non-publicly issued 1,020,408,163 RMB ordinary shares (A shares) to specific targets, with 907,029,478 shares subscribed by Tianjin Jujin Property Management Co., Ltd. (hereinafter referred to as Tianjin Jujin). Tianjin Jujin is a wholly-owned subsidiary of Sunac China Holdings Limited (hereinafter referred to as Sunac China). Later, during November-December 2016, Sunac China’s wholly-owned subsidiaries Tianjin Runze Property Management Co., Ltd. (hereinafter referred to as Tianjin Runze) and Tianjin Runding Property Management Co., Ltd. (hereinafter referred to as Tianjin Runding) increased 101,615,249 shares and 118,333,380 shares of the Company respectively through the secondary market. As at 31 December 2016, Sunac China’s wholly-owned subsidiaries Tianjin Jujin, Tianjin Runze and Tianjin Runding jointly held 1,126,978,107 shares of the Company, equivalent to 21.08% shareholding. From 1 January 2017 to the date when this report is issued, Tianjin Runze and Tianjin Runding continuously increased 109,913,582 shares of the Company through the secondary market. As at the date of this report, Sunac China held a total of 1,236,891,689 shares of the Company through its subsidiaries, accounting for about 23.15% of the total share capital issued by the Company. The effective controller of Sunac China is Mr. Sun Hongbin.

• For details about the Company’s subsidiaries, please refer to interests in other entities in the Notes to the Financial Statements.

• Joint ventures and associated enterprises of the Company

For details about the Company’s significant associated enterprises, please refer to interests in other entities in the Notes to the Financial Statements. Information on other joint ventures or associated enterprises with balance formed through its connected transactions with the Company in the current and prior periods is as follows:

Name of joint venture or associated enterprise

Relation with the Company

Xinjiang Jinke New Energy Equity Investment Joint Joint venture Venture (limited partnership) (hereinafter referred to as New Energy Investment) Yunnan Jinwanzhong Real Estate Development Co., Ltd. Joint venture (hereinafter referred to as Jinwanzhong Real Estate) Wujiang Jinke Yangzi Real Estate Development Co., Ltd. Associated enterprises (hereinafter referred to as Wujiang Jinke Yangzi) Chongqing Yinhai Finance Leasing Co., Ltd. (hereinafter Associated enterprises referred to as Yinhai Leasing) Nanning Sunac Shicheng Property Co., Ltd. (hereinafter Associated enterprises [Note] referred to as Nanning Sunac)

Note: Company controlled by the effective controller of the main shareholder entity

— 478 —

APPENDIX II

FINANCIAL INFORMATION OF JINKE PROPERTY

1. Other connected parties of the Company

Name of other connected party

Relation between other connected party and the Company

• Chongqing Zhongke Holding Co., Ltd. (hereinafter referred to as Zhongke Holding)

Others [Note 1]

• Chongqing Zhongke Construction (Group) Co., Ltd. (hereinafter referred to as Zhongke Group)

Others [Note 1]

• Chongqing Jianglong Construction Engineering Co., Ltd. (hereinafter referred to as Jianglong Construction)

Others [Note 1]

• Chongqing Shenlong Construction Engineering Co., Ltd. (hereinafter referred to as Shenlong Construction)

Others [Note 1]

• Chongqing Zhanhe Agriculture Development Co., Ltd. (hereinafter referred to as Zhanhe Agriculture)

Others [Note 1]

• Chongqing Caiju Investment Co., Ltd. (hereinafter referred to as Caiju Investment)

The company controlled by the effective controller of the Company

• Chongqing Liangjiang New District Ke Yi Micro-Credit Co., Ltd. (hereinafter referred to as Ke Yi Micro-Credit)

The company controlled by the effective controller of the Company

• Chongqing Jinke Financial Factoring Co., Ltd. (hereinafter referred to as Jinke Financial Factoring)

The company controlled by the effective controller of the Company

• Chongqing Jinke Commercial Factoring Co., Ltd. (hereinafter referred to as Jinke Commercial Factoring)

The company controlled by the effective controller of the Company

• Chongqing Dake Investment Co., Ltd. (hereinafter referred to as Dake Investment)

The company controlled by the effective controller of the Company

• Chongqing SUNAC Foundation Real Estate Development Co. Ltd. (hereinafter referred to as Chongqing SUNAC)

[Note 2]

• Wuxi Sunac City Construction Co., Ltd. (hereinafter referred to as Wuxi Sunac Construction)

[Note 2]

• Wuxi Sunac Real Estate Co., Ltd. (hereinafter referred to as Wuxi Sunac Real Estate)

[Note 2]

— 479 —

FINANCIAL INFORMATION OF JINKE PROPERTY

APPENDIX II

Name of other connected party

Relation between other connected party and the Company

Chongqing Sunac Industrial Co., Ltd. (hereinafter referred [Note 2] to as Chongqing Sunac Industrial)

Tianjin Runding Property Management Co., Ltd. (hereinafter referred to as Tianjin Runding)

• [Note 2]

Tianjin Runze Property Management Co., Ltd. (hereinafter [Note 2] referred to as Tianjin Runze)

• USUM Investment Group Co., Ltd. (hereinafter referred to [Note 3] as USUM Investment)

• Note 1: The company directly or indirectly controlled by Huang Yifeng, the younger brother of Huang Hongyun (the Company’s effective controller).

• Note 2: The company also controlled by the effective controller of Tianjin Jujin (the Company’s principal shareholder).

• Note 3: The Company no longer has the right to participate in USUM Investment’s financial and operation decisions since 30 April 2015. Therefore, the Company no longer took USUM Investment as its connected party since 30 April 2015.

• (II) Connected transactions

• Purchase and sale of commodities, and provision and acceptance of labor service

• (1) Sale of commodities and provision of labor service

Amount in the Content of connected Amount in the same period of Connected party transaction current period preceding year China Sciences Group Provision of labor service 492,786.89 535,042.70 USUM Investment Group Provision of labor service 37,491.00 Sale of commodities and Wujiang Jinke Yangzi provision of labor service 2,350,496.50 2,540,079.98 Sale of commodities and Jinke Investment provision of labor service 45,566.64 151,724.00 Ke Yi Micro-Credit Provision of labor service 34,950.72 92,400.00 Jinke Financial Factoring Provision of labor service 46,200.00 Jinke Commercial Factoring Provision of labor service 46,200.00 Caiju Investment Provision of labor service 2,038,834.95

— 480 —

APPENDIX II

FINANCIAL INFORMATION OF JINKE PROPERTY

• (2) Purchase of commodities and acceptance of labor service

			Amount in the
	Content of connected	Amount in the	same period of
Connected party	transaction	current period	preceding year
China Sciences Group	Acceptance of labor service	408,769.04
Jianglong Construction	Acceptance of labor service	651,484.83

1. Guarantee with connected parties

2. (1) The Company and subsidiaries as the guaranteed parties

				Whether the
	Guaranteed	Commencement		guarantee has
Guarantor	amount	date	Maturity date	been fulfilled
Huang Hongyun	250,000,000.00	2015/6/25	2017/6/24	No
Huang Hongyun	60,000,000.00	2016//4/11	2017/2/10	No
Huang Hongyun	180,000,000.00	2015/4/17	2017/4/16	No
Jinke Investment, Huang
Hongyun, Tao Hongxia	300,000,000.00	2015/3/25	2017/3/25	No
Jinke Investment, Huang
Hongyun, Tao Hongxia	92,000,000.00	2015/5/7	2017/5/7	No
Jinke Investment, Huang
Hongyun, Tao Hongxia	100,000,000.00	2015/4/30	2017/4/30	No
Jinke Investment, Huang
Hongyun, Tao Hongxia	250,000,000.00	2015/3/13	2017/3/13	No
Jinke Investment, Huang
Hongyun, Tao Hongxia	300,000,000.00	2015/3/18	2017/3/18	No
Jinke Investment, Huang
Hongyun, Tao Hongxia	139,999,999.99	2014/3/12	2017/3/12	No
Jinke Investment, Huang
Hongyun, Tao Hongxia	1,200,000,000.00	2015/2/13	2034/12/25	No

• (2) According to the Proposal on the Company’s Payment of Guarantee Fee to the Controlling Shareholder and Connected Transactions deliberated and approved at the 30th meeting of the 9th Board of Directors of the Company on 26 March 2016, and the Framework Agreement on Payment of Guarantee Fee signed between the Company’s controlling shareholder Jinke Investment and effective controllers Huang Hongyun and his wife Tao Hongxia, the Company’s controlling shareholder Jinke Investment and effective controllers Huang Hongyun and his wife Tao Hongxia provided guarantee for the Company’s financing, and the Company paid a guarantee fee to them as per a rate of not more than 1% or 0.7% of the guarantee balance according to specific conditions. Moreover, the Company paid a total guarantee fee of not more than RMB25 million to them in 2016. In the current period, the Company accumulatively paid a financing guarantee fee of RMB25 million to Jinke Investment, Huang Hongyun and his wife Tao Hongxia.

— 481 —

FINANCIAL INFORMATION OF JINKE PROPERTY

APPENDIX II

• (3) Guarantee provided for connected parties

Upon approval at the 38th meeting of the 9th Board of Directors of the Company and the 5th extraordinary general meeting 2016 and according to the cooperative development agreement signed between the Company and Chongqing Sunac, the Company agreed to provide guarantee for Nanning Sunac’s borrowings from financial institutions in accordance with the equity ratio. It is estimated that the guarantee amount would be less than RMB1.3 billion and the Company would collect a guarantee fee from Nanning Sunac at the rate of 2%/year of the guarantee amount it actually provided. As at 31 December 2016, the Company provided a guarantee for Nanning Sunac’s borrowing of RMB1.2 billion and a guarantee with joint liability for the RMB588 million among the RMB1.2 billion borrowing with its 49% equity in Nanning Sunac. The term of each corporate guarantee is 36 months.

1. Fund flow and call loans with connected parties

According to the Loan Agreement signed between the Company and Xinjiang Jinke New Energy Equity Investment Joint Venture (limited partnership) (hereinafter referred to as New Energy Investment) on 4 February 2016, the Company borrowed RMB300 million from New Energy Investment, with the annual comprehensive capital cost of 4.35%. Besides, in January 2016, New Energy Investment transferred RMB330 million into the Company, and the Company transferred out RMB330 million in the same month. The Company has repaid the call loan principal as at 31 December 2016, and should settle the capital occupation fee of RMB7,011,246.85 payable to New Energy Investment in the current period.

1. Remuneration of key management personnel

						Amount in the
					Amount in the	same period of
Item					current period	preceding year
Remuneration	of	key	management	personnel	RMB64,723,400	RMB49,237,300

1. Follow-up investments of directors, supervisors and senior executives

The Company formulated the Administrative Measures for Follow-up Investments in Real Estate Projects to further enhance the quality of real estate projects acquired by the Company and the operation efficiency of projects, make project management benefits directly link up with the personal income of staff making follow-up investment, and achieve revenue & risk sharing. According to the said Administrative Measures, matters relating to follow-up investments will constitute connected transactions of joint investments together with some directors, supervisors and senior executives of the Company. As at 31 December 2016, the amount of follow-up investments made by the Company’s directors, supervisors and senior executives tallied RMB37,870,000.

— 482 —

FINANCIAL INFORMATION OF JINKE PROPERTY

APPENDIX II

1. Other connected transactions

2. (1) Set up companies together with connected parties

By resolution passed at the 38th meeting of the 9th Board of Directors of the Company on 15 November 2016, the Company and Chongqing SUNAC Foundation Real Estate Development Co. Ltd. (hereinafter referred to as Chongqing SUNAC) signed the cooperation development agreement. According to the agreement, the two parties agreed to increase investment in Chongqing SUNAC’s wholly-owned subsidiary Nanning Sunac Shicheng Property Co., Ltd. (hereinafter referred to as Nanning Sunac) for cooperative development of the Anjinan Project in Nanning City, Guangxi Province. After the capital increase, the registered capital of Nanning Sunac was RMB1 billion, with 51% stake held by Chongqing SUNAC and 49% stake held by the Company. As at 31 December 2016, the Company and Chongqing SUNAC have completed matters relating to capital increase of Nanning Sunac. In addition, the Company received the intercourse funds of RMB602,700,000 from Nanning Sunac in December.

(2) Transfer of partial equities of holding subsidiaries and waiver of partial rights

According to the Proposal on Waiver of Partial Rights of the Project Company and Connected Transactions and Provision of Connected Guarantee and the Proposal on Transfer of Partial Equities of Holding Subsidiaries and Connected Transactions passed at the 35th meeting of the 9th Board of Directors of the Company on 1 September 2016 and the 3rd extraordinary general meeting 2016 convened on 19 September 2016, the Company’s wholly-owned subsidiaries Chongqing Jinke Real Estate Development Co., Ltd. (hereinafter referred to as Chongqing Jinke) and Chongqing Yiyun Investment Co., Ltd. (hereinafter referred to as Yiyun Investment) planned to conclude the Capital Increase and Cooperation Agreement and Equity Transfer and Cooperation Agreement with Zhongke Holding for overall cooperative development of the project in Wujiaqu, Xinjiang.

• 1) According to the Capital Increase and Cooperation Agreement , before capital increase, Chongqing Jinke and Yiyun Investment respectively held 51% and 49% stakes in Wujiaqu Jinke Real Estate Development Co., Ltd. (hereinafter referred to as Wujiaqu Jinke) and Xinjiang Jinke Kuntai Real Estate Development Co., Ltd. (hereinafter referred to as Jinke Kuntai) and the registered capital of Wujiaqu Jinke and Jinke Kuntai was RMB50 million; Chongqing Jinke and Zhongke Holding respectively increased RMB10 million and RMB58.35 million into Wujiaqu Jinke and respectively increased RMB10 million and RMB58.35 million into Jinke Kuntai. After the capital increase, Chongqing Jinke, Yiyun Investment and Zhongke Holding respectively held 30%, 20.70% and 49.30% stake in Wujiaqu Jinke and Jinke Kuntai. In addition, the Company provided guarantee with joint liability for the loans of RMB149 million and RMB300 million borrowed by Wujiaqu Jinke from Agricultural Bank of China Branch in Urumqi City in Henan Road and China Guangfa Bank, Urumqi Branch, respectively. As the above loans have not yet been repaid, according to the Capital Increase and Cooperation Agreement , after the adjustment in equity structure, the Company should continue to provide guarantees for the loans that have not been repaid by the Company.

— 483 —

APPENDIX II

FINANCIAL INFORMATION OF JINKE PROPERTY

• 2) According to the Equity Transfer and Cooperation Agreement , Chongqing Jinke and Yiyun Investment would transfer part of their equities in Xinjiang Jinke Yutai Real Estate Development Co., Ltd. (hereinafter referred to as Jinke Yutai) to Zhongke Holding. The registered capital of Jinke Yutai is RMB200 million and the paid-in capital is RMB60 million. Among them, Chongqing Jinke subscribed RMB102 million and actually paid RMB30.6 million, with RMB71.4 million unpaid, representing 51% stake in Jinke Yutai; Yiyun Investment subscribed RMB98 million and actually paid RMB29.4 million, with RMB68.6 million unpaid, representing 49% stake in Jinke Yutai. With reference to the results of audit assessment and upon friendly negotiation between the parties, Chongqing Jinke and Yiyun Investment transferred their unpaid contributions to Jinke Yutai of RMB42 million (representing 21% stake in the project company) and RMB56.6 million (representing 28.3% stake in the project company) to Zhongke Holding at the cost of RMB0. After the transfer, Chongqing Jinke, Yiyun Investment and Zhongke Holding respectively held 30%, 20.70% and 49.30% stake in Jinke Yutai. Meanwhile, Zhongke Holding and Chongqing Jinke should put in place the unpaid contributions of RMB70,025,600 and RMB12,003,400.

As at the date of this report, according to the aforesaid capital increase and equity transfer agreements, Zhongke Holding transferred contributions of RMB58.5 million from Wujiaqu Jinke and RMB58.5 million from Jinke Kuntai; Zhongke Holding and Chongqing Jinke transferred the contributions payable of RMB70,025,600 and RMB12,003,400 into Jinke Yutai. Meanwhile, Wujiaqu Jinke, Jinke Kuntai and Jinke Yutai have repaid the shareholders’ loan, capital occupation fee and technical service fee to the Company and connected parties according to the Capital Increase and Cooperation Agreement and Equity Transfer and Cooperation Agreement . The RMB39,851,800 loan of Wujiaqu Jinke, for which the Company provided a guarantee with joint liability, has not yet been repaid. The industrial and commercial registration of changes of Wujiaqu Jinke, Jinke Kuntai and Jinke Yutai were underway.

(3) Ticket agency

The Company’s subsidiary Chongqing Kangcheng Air Ticket Agent Co., Ltd. carried out air ticket agent services. According to the ticket agency industry practice, the agent’s payment for air tickets settled with Chongqing Jinke Investment Holding (Group) Co., Ltd. in the reporting period was RMB506,343.00; the agent’s advances for air tickets unsettled at the beginning of the period tallied RMB30,502.90; RMB479,167.90 had been taken back in the current period; as at 31 December 2016, the agent’s advances for air tickets unsettled totaled RMB57,678.00.

(4) Other matters

During the reporting period, the Company’s wholly-owned subsidiary Beijing Jinke New Energy Co., Ltd. paid relevant fees of RMB1158,000 in the preliminary preparation period for Xinjiang Jinke New Energy Equity Investment Joint Venture (limited partnership).

— 484 —

FINANCIAL INFORMATION OF JINKE PROPERTY

APPENDIX II

• (III) Receivables from and payables to the connected parties

• Receivables from the connected parties

		**Amount at **	the end of	the end of	**Amount at the **	beginning of	beginning of
		the period			the period
				Provision			Provision
Item name	Connected party	Book balance	**for **	bad debts	Book balance	**for **	bad debts
Accounts receivable	Jinke Investment	13,524.00		135.24	8,710.00		87.10
	China Sciences Group	199,575.99		1,995.76	189,339.20		1,893.39
	USUM Investment
	Group				94,662.38		4,733.12
	Wujiang Jinke Yangzi	5,146,061.80	1,338,796.44		5,996,813.35	1,297,015.55
	Ke Yi Micro-Credit	2,772.00		138.60	2,772.00		27.72
	Jinke Financial
	Factoring	1,386.00		69.30	1,386.00		13.86
	Jinke Commercial
	Factoring	1,386.00		69.30	1,386.00		13.86
	Wuxi Sunac
	Construction	181,519.00		36,303.80
	Wuxi Sunac Real Estate	29,566.68		5,913.34
	Chongqing Sunac
	Industrial	0.01		0.01
Subtotal		5,575,791.48	1,383,421.79		6,295,068.93	1,303,784.60
Other receivables	Jinke Investment [note]	57,678.00		576.78	30,502.90		305.03
	Wujiang Jinke Yangzi	65,495,930.65	65,495,930.65		64,777,804.88	18,041,948.29
	Wuxi Sunac
	Construction	10,000.00		10,000.00
	Wuxi Sunac Real Estate	500.00		500.00
Subtotal		65,564,108.65	65,507,007.43		64,808,307.78	18,042,253.32

Note 1: It is the air ticket agent service carried out by Chongqing Kangcheng Air Ticket Agent Co., Ltd., the Company’s subsidiary; according to the ticket agency industry practice, the agent’s advances for air tickets unsettled with Chongqing Jinke Investment Holding (Group) Co., Ltd. in the reporting period had been fully taken back as at the date of this report.

Note 2: They are operating funds generated by labor services provided by the Company’s subsidiary Kelsinki in previous years.

— 485 —

APPENDIX II

FINANCIAL INFORMATION OF JINKE PROPERTY

1. Payables to the connected parties

			Amount at
		Amount at the	the beginning
Item name	Connected party	end of the period	of the period
Accounts payable
	Shenlong Construction	19,359.70	19,359.70
	China Sciences Group	28,833,875.02	29,342,725.31
	Jianglong Construction	18,741,806.67	17,960,629.58
	Zhanhe Agriculture	124,040.00	161,736.63
Subtotal		47,719,081.39	47,484,451.22
Advance receipts
	China Sciences Group	1,335,455.00	1,335,455.00
Subtotal		1,335,455.00	1,335,455.00
Other payables
	China Sciences Group	305,000.00	324,694.00
	Zhongke Holding	228,639,791.24
	USUM Investment Group		130,498,000.00
	Nanning Sunac	602,700,000.00
	New Energy Investment	5,756,246.85
	Jinwanzhong Real Estate	10,000,000.00
Subtotal		847,701,038.09	130,822,694.00

— 486 —

FINANCIAL INFORMATION OF JINKE PROPERTY

APPENDIX II

XI. Share payment

• (I) Overall information of share payment

1. Details

• Total amount of the Company’s equity instruments granted in the current period

• Total amount of the Company’s equity instruments exercised in the current period

• Total amount of the Company’s equity instruments invalidated in the current period

10,300,000.00 43,832,500.00 14,827,500.00

• Scope of exercise price of the Company’s stock options outstanding at the end of the period and remaining contract period

• Scope of exercise price of the Company’s other equity instruments outstanding at the end of the period and remaining contract period

The price of restricted shares granted by the Company for the first time on 9 December 2015 is RMB3.23 per share; after a year from the grant date, the interests and rights will be unlocked annually at the percentage of 25%, 25%, 25% and 25% respectively during the unlocking period.

The Company granted the restricted shares reserved on 8 December 2016 at the price of RMB2.62 per share; after a year from the grant date, the interests and rights will be unlocked annually at the percentage of 25%, 25%, 25% and 25% respectively during the unlocking period.

2. Other descriptions

According to the Restricted Share Incentive Plan (Draft) of Jinke Property Group Co., Ltd. deliberated and approved at the 24th meeting of the 9th Board of Directors of the Company and the 8th extraordinary general meeting 2015, the Company planned to issue to incentive targets the Company’s common shares (A share) issued toward particular investors. At the 26th meeting of the 9th Board of Directors held on 9 December 2015, the Company deliberated and approved the Proposal of Jinke Property Group Co., Ltd. Concerning Issue of Restricted Shares to Incentive Targets and decided to take 9 December 2015 as the grant date on which 196.44 million restricted shares would be issued to 157 incentive targets at a price of 3.23 per share, with 10.34 million shares reserved. As for personal reasons some equity incentive targets waived the right to participate in the equity incentive plan or the restricted shares to be issued were reduced, the total number of restricted shares subject to first grant in the Company’s equity incentive plan were 191.44 million. According to the validity period, lock-up period, exercise arrangement or unlocking arrangement of the incentive plan, among the

— 487 —

APPENDIX II

FINANCIAL INFORMATION OF JINKE PROPERTY

incentive targets subject to the first grant of the Company’s restricted shares, nine including Yu Xuebing, Si Wei and Zhang Tiancheng have resigned and therefore no longer met the incentive conditions, their unlocked restricted shares would be repurchased and canceled by the Company, in particular, the Company would repurchase 800,000 shares at the price of RMB3.23/share and 13.6 million shares at the price of RMB3.18/share; among the incentive targets subject to the first grant of the Company’s restricted shares, six passed the annual personal assessment, and three failed to pass the annual personal assessment because their performance assessment results did not meet all unlocking requirements. The part that cannot be unlocked among the first unlocking part of restricted shares granted to them would be repurchased by the Company; the repurchase quantity was 427,500 shares and the repurchase price was RMB3.18/share. Meanwhile, the first unlocking conditions for the first grant of the Company’s restricted shares have been satisfied, upon deliberation and approval at the 40th meeting of the 9th Board of Directors on 8 December 2016, the Company agreed with the application for unlocking of 43,832,500 restricted shares held by 135 incentive targets meeting the unlocking conditions.

On 8 December 2016, the 40th meeting of the 9th Board of Directors of the Company deliberated and approved the Proposal on Issue of Restricted Shares Reserved in the Restricted Share Incentive Plan to Incentive Targets , and agreed to issue 10.3 million restricted shares reserved to 12 incentive targets at the price of RMB2.62/share (50% of the average transaction price of shares of the Company in the 20 transaction days before the date of announcement of the resolution of the Board of Directors). The Company has completed registration of changes of the restricted shares reserved on 21 December 2016.

(II) Equity-settled share-based payment

The method of determining the fair value of The value of equity instrument on the grant date equity instrument on the grant date minus incentive targets’ cost brought by restricted factors shall be taken as the fair value of equity instrument on the grant date Basis for determining the quantity of The performance conditions and the result of exercisable equity instruments performance evaluation of incentive targets during every unlocking period Reasons for significant difference between None the current estimate and previous estimate Accumulated amount of equity-settled 79,947,302.22 share-based payment included in the capital reserve The total amount of equity-settled 74,696,622.53 share-based payment confirmed in the current period

— 488 —

APPENDIX II

FINANCIAL INFORMATION OF JINKE PROPERTY

XII. Commitments and contingencies

• (I) Important commitments

As at 31 December 2016, the expenditure of agreed capital projects for which the Company has signed relevant contracts (mainly contracts on purchase and construction of long-term assets and land contracts) but did not make the payment totalled RMB11,351,324,400, which will be paid in several years when the other parties fulfill their responsibilities and obligations stipulated in the contracts. Details are as follows:

Unit: RMB’0,000

Item	Contract amount	Amount paid	Amount unpaid
Contract on purchase and construction of
long-term assets	598,900.05	176,190.16	422,709.89
Land contract	1,156,884.38	444,461.83	712,422.55
Total	1,755,784.43	620,651.99	1,135,132.44

• (II) Contingencies

• It is a common practice for the Company and its subsidiaries to provide mortgage-backed guarantee for purchasers of commodity housing. Such guarantee is periodic and the guarantee period starts from the date of entry into force of the guarantee contract to the date when the purchaser of commodity housing obtains the Property Ownership Certificate , completes mortgage registration formalities and gives the Property Ownership Certificate to the bank. As at 31 December 2016, the periodic guarantee amount of the Company and its subsidiaries tallied RMB7317,329,000, and the amount paid for bearing the periodic joint-and-several guarantee liability reached RMB36,072,100. The Company and its subsidiaries has assessed the impact of relevant guarantee risks on the financial statements, has taken active measures to pursue recovery, and has made corresponding provision for bad debts in the reporting period.

• The contingent liabilities and financial impact of the provision of debt guarantees for other enterprises

For details of guarantees provided for connected parties, refer to the notes to connected parties and connected transactions in the Notes to the Financial Statements.

— 489 —

FINANCIAL INFORMATION OF JINKE PROPERTY

APPENDIX II

• XIII. Events subsequent to balance sheet date

• (I) Important non-adjusting events

		Influence
		number of	Reason of
		financial	inability to
		position and	estimate the
		operating	influence
Item	Content	results	number
New	The subsidiary Chongqing Jinke Huimao	Not applicable	Not applicable
establishment	Real Estate Development Co., Ltd.
	funded Chongqing Jinjiahe Real Estate
	Development Co., Ltd., with an
	investment of RMB25.5 million. The
	registered capital of the company was
	RMB25.5 million, so Chongqing Jinke
	Huimao Real Estate Development Co.,
	Ltd. has 100% stake in the company. The
	company obtained the business license
	(Unified Social Credibility Code:
	91500109MA5UB7E79E) on 23 January
	2017.
	The Company funded Jinke Education	Not applicable	Not applicable
	Investment Co., Ltd. with 100% stake.
	The company has a registered capital of
	RMB1,000,000,000 and obtained the
	Notice of Advance Approval of Name of
	Enterprise ((Guo) Deng Ji Nei Ming Yu
	He Zi [2017] No. 4138) on 7 March
	2017.
	The Company and Shenzhen Zeda	Not applicable	Not applicable
	Investment Co., Ltd. jointly funded
	Shenzhen Jinke Zeda Real Estate Co.,
	Ltd. The company has a registered
	capital of RMB20 million, with 60%
	stake held by the Company, and obtained
	the business license (Unified Social
	Credibility Code:
	91440300MA5DTC2F49) on 15 February
	2017.

— 490 —

FINANCIAL INFORMATION OF JINKE PROPERTY

APPENDIX II

		Influence
		number of	Reason of
		financial	inability to
		position and	estimate the
		operating	influence
Item	Content	results	number
Acquisition under	Refer to Note XIV (II) 8 to the Financial	Not applicable	Not applicable
the same	Statements for details about acquisition
control	of equities of Jinan Hairui Real Estate
	Development Co., Ltd., Qingdao
	Haichang Real Estate Co., Ltd., and
	Taian Haida Real Estate Development
	Co., Ltd.
	Refer to Note XIV (II) 9 to the Financial	Not applicable	Not applicable
	Statements for details about acquisition
	of equities of Tianjin Bin’ao Real Estate
	Co., Ltd. and Tianjin Binyao Real Estate
	Co., Ltd.
	According to the equity transfer	Not applicable	Not applicable
	agreement signed between the Company
	and Kunming Jincen Real Estate Co.,
	Ltd. (hereinafter referred to as Kunming
	Jincen), Kunming Jincen transferred its
	30% equity in Yunnan Jinwanzhong Real
	Estate Development Co., Ltd. to the
	Company. After the transfer, the
	Company held 80% equity of Yunnan
	Jinwanzhong Real Estate Development
	Co., Ltd. Relevant formalities of equity
	transfer were completed on 28 February
	2017.
Land acquisition	According to the Sales Confirmation, in	Not applicable	Not applicable
	January 2017, the subsidiary Jinke
	Property Group (Wuhan) Co., Ltd. won
	the right to use the land with a total area
	of about 211.05 mu in Dazhou Village
	(Dazhou Village A Bao), Hongshan
	District, at the price of
	RMB2,719,500,000.

— 491 —

FINANCIAL INFORMATION OF JINKE PROPERTY

APPENDIX II

(II) Profit distribution after the balance sheet date

Profits or dividends to be Based on the share capital recorded on 31 December 2016, the distributed and capital reserve Company plans to distribute RMB2.00 of cash dividends for converted into capital every 10 shares to each shareholder with undistributed profits

Profits or dividends declared upon approval

None

XIV. Other important issues

• (I) Information about segments

• The factors considered in determining reporting segments

The Company determines reporting segments based on the internal organizational structure, management requirements, and internal reporting system, and determines the reporting segments based on industrial segments. The Company evaluates the operating results of the real estate sales, property management, hotel operation and other businesses, and distributes the commonly used assets and liabilities among segments according to their scale.

2. Financial information of reporting segment

Industrial segments

				Unit: RMB’0,000	Unit: RMB’0,000
					Doors &
	Real estate	Property	Hotel	Landscaping	windows
Item	sales	management	operation	engineering	engineering
Revenue from main businesses	3,080,687.72	97,290.07	28,160.56	36,381.48	17,107.07
Cost of main businesses	2,501,621.26	75,624.08	8,311.82	32,682.06	16,378.29
Total assets	21,475,535.37	283,386.50	130,106.26	141,331.83	82,209.54
Total liabilities	17,168,662.71	251,489.01	120,056.62	124,400.47	77,341.91
			Wind power
			investment
	Decorative	Sales of	and	Inter-segment
Item	design	materials	development	elimination	Total
Revenue from main businesses	9,146.08	110,553.35	14,081.28	-196,394.30	3,197,013.31
Cost of main businesses	8,658.72	106,286.69	7,474.39	-208,897.57	2,548,139.74
Total assets	310,293.71	684,413.54	461,808.70	-12,644,169.04	10,924,916.41
Total liabilities	296,045.64	641,849.40	167,394.17	-10,175,545.46	8,671,694.47

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APPENDIX II

• (II) Other important transactions and events that have an impact on investor’s decision-making

• Pledge of shareholders’ equity

As at 31 December 2016, the pledge and freezing of the Company’s shares are as follows:

	Number of
Name of shareholder	shares frozen	Name of pledgee	Freezing type	Freezing time
Chongqing Jinke	92,000,000	Guosen Securities Co., Ltd.	Pledge	2016-01-26
Investment Holdings	25,000,000	Guosen Securities Co., Ltd.	Pledge	2016-01-29
(Group) Co., Ltd.	52,000,000	Guosen Securities Co., Ltd.	Pledge	2016-03-23
	57,500,000	Guosen Securities Co., Ltd.	Pledge	2016-03-25
	48,815,109	Changjiang Securities Co., Ltd.	Pledge	2016-04-19
	75,000,000	Guosen Securities Co., Ltd.	Pledge	2015-04-28
	54,000,000	Changjiang Securities	Pledge	2016-07-26
		(Shanghai) Asset Management
		Co., Ltd.
	54,000,000	Changjiang Securities	Pledge	2016-07-26
		(Shanghai) Asset Management
		Co., Ltd.
	81,000,000	Changjiang Securities	Pledge	2016-07-27
		(Shanghai) Asset Management
		Co., Ltd.
Tianjin Jujin Property	907,029,478	Tianjin Branch of China Bohai	Pledge	2016-11-11
Management Co., Ltd.		Bank Co., Ltd.
Huang Hongyun	267,500,000	Changjiang Securities	Pledge	2016-08-15
		(Shanghai) Asset Management
		Co., Ltd.
Huang Hongyun	38,732,395	Chongqing International Trust	Pledge	2016-09-12
		Co., Ltd.
Fu Xiaowen	2,280,000	Guosen Securities Co., Ltd.	Pledge	2015-04-28
Fu Xiaowen	620,000	Guosen Securities Co., Ltd.	Pledge	2015-09-18
Nie Ming	770,000	Guosen Securities Co., Ltd.	Pledge	2016-03-16
Nie Ming	100,000	Guosen Securities Co., Ltd.	Pledge	2016-03-16
Nie Ming	500,000	Guosen Securities Co., Ltd.	Pledge	2016-05-12
Chen Hong	330,000	Guosen Securities Co., Ltd.	Pledge	2014-12-16
Chen Hong	660,000	Guosen Securities Co., Ltd.	Pledge	2015-04-28
Chen Hong	300,000	Guosen Securities Co., Ltd.	Pledge	2016-01-29
Other non-connected	7,873,178		Pledge
natural persons
Total	1,766,010,160

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Note:

1. As at the date of this report, the Company’s shareholder Tianjin Runze pledged its 101,615,249 (among 161,295,827) shares in the Company to Sdic Taikang Trust Co., Ltd., and Tianjin Runding pledged its 118,333,380 (among 168,566,384) shares in the Company to Sdic Taikang Trust Co., Ltd. Tianjin Jujin, Tianjin Runze and Tianjin Runding collectively pledged 1,126,978,107 shares in the Company, accounting for 21.09% of total share capital of the Company.

2. According to the Letter of Xinjiang Electric Power Regulatory Office of the State Electricity Regulatory Commission on the Application for Electric Power Business License by Xinjiang Huaran Oriental New Energy Co., Ltd. (Xin Dian Jian Zi Han [2013] No. 158), relevant information provided by the subsidiary Xinjiang Huaran about No. A1-A100 generators (installed capacity of 100*2MW) in the Wind Farm (200 MW) project in Yandun, Hami has passed the preliminary examination.

3. In July 2015, the Company’s wholly-owned subsidiary Kumul Huaran Oriental Jingxia Wind Power Generation Co., Ltd. (hereinafter referred to as Kumul Huaran) received the Reply of Xinjiang Uygur Autonomous Region Development and Reform Commission Concerning the Approval of 700,000 kw Wind Power and 50,000 kw PV Projects in Jingxia District, Southeast of Hami Wind Power Base Phase II (Xin Fa Gai Neng Yuan [2015] No. 1301) forwarded by Xinjiang Uygur Autonomous Region Development and Reform Commission, which approved the 700,000 kw wind power and 50,000 kw PV projects in Jingxia District, southeast of Hami Wind Power Base Phase II. According to the Reply, among the five projects approved, the second wind farm in District C, Jingxia is funded by the Company’s subsidiary Kumul Huaran, with a total installed capacity of 200,000 kw and total investment of RMB1,564.82 million. At at 31 December 2016, relevant construction of the second wind farm in District C, Jingxia invested by Kunmul Huaran was underway.

4. In July 2015, the Company’s wholly-owned subsidiary Jinke New Energy Co., Ltd. (hereinafter referred to as Jinke New Energy) received the Energy Conservation Registration Opinions (Ri Fa Gai Neng Shen Bei [2015] No. 33) from Rizhao Municipal Development and Reform Commission, which approved the registration and filing of the 20,000 kw photovoltaic power generation project in Zhongzhi, Wulian, Shandong declared by Jinke New Energy. According to the filing, this project is a photovoltaic power station situated in Yaoyuzi Village, Zhongzhi Town, Wulian County, Shandong, with a total installed capacity of 20,000 kw and total investment of RMB153.39 million.

As at 31 December 2016, the construction investment of the 20,000 kw photovoltaic power generation project in Zhongzhi, Wulian, Shandong has not yet started.

1. Investment in the establishment of companies and foreign equity investments

2. 1) By resolution at the 33th meeting of the 9th Board of Directors of the Company on 5 July 2016, the Company intended to establish, with its own capital, a wholly-owned subsidiary Jinke Integrated Community Service Group Limited (tentative name, and the final name should be subject to the approval of the industrial and commercial administrative authorities), which was mainly responsible for the investment and operation of the integrated community service. The registered capital of the wholly-owned subsidiary to be established was RMB1 billion. As at the date of this report, matters relating to the establishment of the aforesaid wholly-owned subsidiary were still underway.

3. 2) By resolution at the 34th meeting of the 9th Board of Directors of the Company on 12 August 2016, to make good use of its own brand effect and advantages and undertake PPP projects nationwide by pooling strengths of partners, the Company intended to sign the Investment Cooperation Agreement with Chongqing Zhongke Holding Co., Ltd. (hereinafter referred to as Zhongke Holding), Chongqing Caiju Investment Co., Ltd. (hereinafter referred to as Caiju Investment), Chongqing Dake Investment Co., Ltd. (hereinafter referred to as Dake Investment) and Chongqing Yuanbo Investment Co., Ltd. (hereinafter referred to as Yuanbo Investment). According to the Agreement, the parties all invested RMB1 billion to establish Chongqing Zhongjin Investment Co., Ltd. (hereinafter referred to as Zhongjin Investment) (tentative name, and the final name should be subject to the

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FINANCIAL INFORMATION OF JINKE PROPERTY

approval of the industrial and commercial administrative authorities). After the establishment, the shareholdings of Zhongjin Investment were as follows: 40% by the Company, 42% by Zhongke Holding, 10% by Caiju Investment and 4% by Dake Investment and Yuanbo Investment, respectively. As at the date of this report, matters relating to the establishment of Zhongjin Investment were still underway.

1. Upon approval by the China Securities Regulatory Commission in Document Zheng Jian Xu Ke [2015] No. 1838, the Company issued non-public corporate bonds with face value of not more than RMB3.8 billion in two tranches. On 28 August 2015, the Company completed the issuance of the first tranche worth RMB2 billion. As at the date of this report, the remaining matters relating to the public issuance of bonds were still underway.

2. Upon deliberation and approval at the 41st meeting of the 9th Board of Directors of the Company on 23 December 2016, the Company intended to issue debt financing instruments of no more than RMB16 billion registered under the National Association of Financial Market Institutional Investors, and the final issuing scale should be subject to the Notice of Accepting Registration of the National Association of Financial Market Institutional Investors. Debt financing instruments include but are not limited to ultra-short-term financing bonds, short-term financing bonds, medium-term notes, medium-term notes with long-term rights and other types of debt financing instruments recognized by the National Association of Financial Market Institutional Investors. The above proposal was deliberated and approved by the Company on the 1st extraordinary general meeting 2017 held on 9 January 2017. As at the date of this report, the said debt financing matters were still underway.

3. To strengthen the strategic cooperation with Qingdao Haier Real Estate Group Co. Ltd. (hereinafter referred to as Haier Real Estate), the Company’s wholly-owned subsidiary Shandong Baijun Real Estate Development Co., Ltd. (hereinafter referred to as Shandong Baijun) signed the Equity Transfer Agreement with Haier Real Estate on 2 December 2016. Shandong Baijun acquired with its own capital Haier Real Estate’s equities in Jinan Hairui Real Estate Development Co., Ltd. (hereinafter referred to as Jinan Hairui), Qingdao Haichang Real Estate Co., Ltd. (hereinafter referred to as Qingdao Haichang), and Taian Haida Real Estate Development Co., Ltd. (hereinafter referred to as Taian Haida). After the overall acquisition of the three companies, Shandong Baijun held 100% equities in Jinan Hairun, Qingdao Haichang and Taian Haida. The total amount of the transaction was RMB2,530,865,900.

As at 31 December 2016, Shandong Baijun, in accordance with the agreement, paid to Haier Real Estate the first instalment of RMB207,878,101.47 for the equity transfer of the said three companies and the payment of RMB991,063,528.95 for creditor’s right.

As at the date of this report, Haier Real Estate and Shandong Baijun have registered the change with the industrial and commercial authority and completed the handover of seals and project documentation.

1. The Company’s subsidiary Beijing Jinke Xingyuan Real Estate Co., Ltd. (hereinafter referred to as Beijing Xingyuan), through e-bidding in Tianjin property rights exchange, signed the Bidding Sales Confirmation with Tianjin property rights exchange on 8 December 2016. Beijing Xingyuan acquired the 100% equities of Binhai Tuanbo Xincheng (Tianjin) Holdings Limited (hereinafter referred to as Binhai Tuanbo) in Tianjin Bin’ao Real Estate Co., Ltd. (hereinafter referred to as Bin’ao Real Estate) and RMB405,563,236.76 creditor’s right of Bin’ao Real Estate held by Binhai Tuanbo, at the price of RMB1,018,031,000, and acquired the 100% equities of Binhai Tuanbo in Tianjin Binyao Real Estate Co., Ltd. (hereinafter referred to as Binyao Real Estate) and RMB95,730,272.33 creditor’s right of Binyao Real Estate held by Binhai Tuanbo, at the price of RMB343,471,200; meanwhile, Beijing Xingyuan bore the service charge for network bidding, agency fee and authentication fee, which totaled RMB23,922,082.31, generated in the equity transfer of the aforesaid acquisitions that the transferor and the transferee should bear.

As at 31 December 2016, Beijing Xingyuan, in accordance with the sales confirmation and property transaction contract, paid the service charge, agency fee and authentication fee of RMB23,922,082.31 generated in the transfer and bidding deposit of RMB186,440,000, with the remaining equity transfer amount of RMB1,175,062,200 unpaid.

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As at the date of this report, Beijing Xingyuan has paid the remaining equity transfer amount of RMB1,175,062,200 to Binhai Tuanbo. Bin’ao Real Estate and Binyao Real Estate have registered the change with the industrial and commercial authority on 11 January 2017 and completed the handover of relevant seals and project documentation.

• XV. Notes to major items in the financial statements of the parent company

• (I) Notes to items in the balance sheet of the parent company

• Accounts receivable

• (1) Details

• 1) Classified details

		**Amount at the end of the **	**Amount at the end of the **	period
	Book balance		**Provision for **	bad debts
				Provision
				withdrawal
		Percentage		percentage
Classification	Amount	(%)	Amount		(%)	Book value
Receivables whose amount is
significant individually and
for which provision for bad
debts is withdrawn
individually
Receivables for which
provision is withdrawn for
bad debts in portfolio by
credit risks	8,685,231.21	100.00	488,899.32		5.63	8,196,331.89
Receivables whose amount is
insignificant individually
but for which provision for
bad debts is withdrawn
individually
Total	8,685,231.21	100.00	488,899.32		5.63	8,196,331.89

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		**Amount at the **	**beginning of **	the period
	Book balance		**Provision for **	bad debts
				Provision
				withdrawal
		Percentage		percentage
Classification	Amount	(%)	Amount	(%)	Book value
Receivables whose amount is
significant individually and
for which provision for bad
debts is withdrawn
individually
Receivables for which
provision is withdrawn for
bad debts in portfolio by
credit risks	13,859,030.99	100.00	188,524.45	1.36	13,670,506.54
Receivables whose amount is
insignificant individually
but for which provision for
bad debts is withdrawn
individually
Total	13,859,030.99	100.00	188,524.45	1.36	13,670,506.54

• 2) Accounts receivable for which provision is withdrawn for bad debts as per age analysis method in portfolio

	**Amount at the end of the **	**Amount at the end of the **	period
				Provision
		Provision for	withdrawal
Age	Book balance	bad debts	percentage (%)
Within 1 year	26,418.04	264.18		1.00
1-2 years	8,541,505.98	427,075.30		5.00
2-3 years	69,684.19	13,936.84		20.00
Over 5 years	47,623.00	47,623.00		100.00
Subtotal	8,685,231.21	488,899.32		5.63

• (2) Provision for bad debts withdrawn, recovered or reversed in the current period

The amount withdrawn for bad debts in the current period is RMB300,374.87.

— 497 —

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• (3) Top five entities in amount of accounts receivable

		Percentage in
		balance of
		accounts	Provision for
Entity name	Book balance	receivable (%)	bad debts
Customer 1	8,514,347.59	98.03	425,717.38
Customer 2	44,643.65	0.51	8,928.73
Customer 3	40,238.00	0.46	40,238.00
Customer 4	36,888.64	0.42	2,358.30
Customer 5	14,569.94	0.17	2,913.99
Subtotal	8,650,687.82	99.59	480,156.40
2. Other receivables
(1) Details

• 1) Classified details

		Amount at the end of the period	Amount at the end of the period	Amount at the end of the period
	Book balance		Provision for bad debts
				Provision
				withdrawal
		Percentage		percentage
Classification	Amount	(%)	Amount	(%)	Book value
Receivables whose amount is
significant individually and
for which provision for bad
debts is withdrawn
individually
Receivables for which provision
is withdrawn for bad debts in
portfolio by credit risks	37,471,788,186.31	100.00	47,999,640.19	0.13	37,423,788,546.12
Receivables whose amount is
insignificant individually but
for which provision for bad
debts is withdrawn
individually
Total	37,471,788,186.31	100.00	47,999,640.19	0.13	37,423,788,546.12

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		Amount at the beginning of the period	Amount at the beginning of the period	Amount at the beginning of the period
	Book balance		Provision for bad debts
				Provision
				withdrawal
		Percentage		percentage
Classification	Amount	(%)	Amount	(%)	Book value
Receivables whose amount is
significant individually and
for which provision for bad
debts is withdrawn
individually
Receivables for which provision
is withdrawn for bad debts in
portfolio by credit risks	27,544,942,461.96	100.00	30,774,820.60	0.11	27,514,167,641.36
Receivables whose amount is
insignificant individually but
for which provision for bad
debts is withdrawn
individually
Total	27,544,942,461.96	100.00	30,774,820.60	0.11	27,514,167,641.36

• 2) Other receivables for which provision is withdrawn for bad debts as per age analysis method in portfolio

	**Amount at the end of the **	**Amount at the end of the **	period
				Provision
		Provision for	withdrawal
Age	Book balance	bad debts	percentage (%)
Within 1 year	4,664,260.45	46,642.60		1.00
1-2 years	416,030.10	20,801.51		5.00
2-3 years	3,230,862.78	646,172.56		20.00
3-5 years	6,519,948.68	3,259,974.34		50.00
Over 5 years	44,026,049.18	44,026,049.18		100.00
Subtotal	58,857,151.19	47,999,640.19		81.55

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APPENDIX II

• 3) Other receivables for which provision is withdrawn for bad debts as per other methods in portfolio

Amount at the end of the period Provision Provision for withdrawal Portfolio name Book balance bad debts percentage (%) Cash deposit 33,049,514.69 Transactions with connected parties in the consolidation scope 37,379,881,520.43 Subtotal 37,412,931,035.12

• (2) Provision for bad debts withdrawn, recovered or reversed in the current period

The amount withdrawn for bad debts in the current period is RMB17,224,819.59.

• (3) Other receivables classified by payment properties

		Amount at the
	Amount at the end	beginning of the
Payment properties	of the period	period
Cash deposit	33,049,514.69	30,025,000.00
Transactions with connected parties in the consolidation
scope	37,379,881,520.43	27,440,183,476.94
Others	58,857,151.19	74,733,985.02
Total	37,471,788,186.31	27,544,942,461.96

— 500 —

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• (4) Top five entities in amount of other receivables

				Percentage in
				balance of
				other
				receivables	Provision for
Entity name	Payment properties	Book balance	Age	(%)	bad debts
Wuxi Jinke Real Estate	Transactions with	5,077,449,218.74	Within 1 year	13.55
Development Co., Ltd.	connected parties
Chongqing Jinke Real Estate	Transactions with	4,776,326,990.77	Within 1 year	12.75
Development Co., Ltd.	connected parties
Beijing Jinke Zhanhao Real	Transactions with	3,011,185,995.14	Within 1 year	8.04
Estate Co., Ltd.	connected parties
Chongqing New Start	Transactions with	2,743,550,542.16	Within 1 year	7.32
Decorative Engineering	connected parties
Co., Ltd.
Chongqing Qingke Trading	Transactions with	2,450,125,640.42	Within 1 year	6.54
Co., Ltd.	connected parties
Subtotal		18,058,638,387.23		48.20

1. Long-term equity investment

2. (1) Details

	**Amount at the end of the **	**Amount at the end of the **	period	**Amount at **	**the beginning of **	the period
		Provision for			Provision for
Item	Book balance	impairment	Book value	Book balance	impairment	Book value
Investment in subsidiaries	14,076,228,965.42		14,076,228,965.42	12,696,059,070.41		12,696,059,070.41
Investment in associated
enterprises and joint
ventures	575,625,672.33		575,625,672.33	87,830,099.03		87,830,099.03
Total	14,651,854,637.75		14,651,854,637.75	12,783,889,169.44		12,783,889,169.44

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FINANCIAL INFORMATION OF JINKE PROPERTY

(2) Investment in subsidiaries

					Provision
					withdrawn for	Provision for
	Amount at the				impairment in	impairment at
	beginning of the	Increase in the	Decrease in the	Amount at the	the current	the end of the
Invested entity	period	current period	current period	end of the period	period	period
Shaanxi Haoyuefu Real Estate
Development Co., Ltd.	20,000,000.00			20,000,000.00
Shaanxi Jinrunda Real Estate
Development Co., Ltd.	102,000,000.00			102,000,000.00
Jinke Property Services Group
Limited Company	50,000,000.00			50,000,000.00
Jinke Industrial Investment
Development Company
Limited	500,000,000.00			500,000,000.00
Shandong Baijun Real Estate
Development Co., Ltd.	10,000,000.00			10,000,000.00
Beijing Jinke New Energy Co.,
Ltd.	1,493,000,000.00			1,493,000,000.00
Xinjiang Jinke Yijia Real Estate
Development Co., Ltd.	100,000,000.00			100,000,000.00
Chongqing Jinke Wuchen Real
Estate Development Co., Ltd.	30,000,000.00			30,000,000.00
Chengdu Jinke Real Estate
Development Co., Ltd.	269,500,273.09			269,500,273.09
Wuxi Jinke Real Estate
Development Co., Ltd.	625,429,734.00			625,429,734.00
Liuyang Jinke Real Estate Co.,
Ltd.	45,000,000.00			45,000,000.00
Chongqing Jinke Kunhe
Investment Co., Ltd.	50,000,000.00			50,000,000.00
Chongqing Jinke Hotel Co., Ltd.	60,602,877.20			60,602,877.20
Wuxi Jinke Kerun Real Estate
Development Co., Ltd.	300,000,000.00			300,000,000.00
Chongqing Qingke Trading Co.,
Ltd.	176,000,000.00			176,000,000.00
Hunan Jinke Real Estate
Development Co., Ltd.	150,000,000.00			150,000,000.00
Jiangyin Jinke Real Estate
Development Co., Ltd.	99,000,000.00			99,000,000.00
Jiangyin Jinke Real Estate
Development Co., Ltd.	147,000,000.00			147,000,000.00
Beijing Jinke Xingyuan Real
Estate Co., Ltd.	140,000,000.00			140,000,000.00
Chongqing Jinke Industrial
Group Kerun Real Estate
Development Co., Ltd.	100,000,000.00			100,000,000.00
Chongqing Bozhan Real Estate
Development Co., Ltd.	400,300,000.00			400,300,000.00

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					Provision
					withdrawn for	Provision for
	Amount at the				impairment in	impairment at
	beginning of the	Increase in the	Decrease in the	Amount at the	the current	the end of the
Invested entity	period	current period	current period	end of the period	period	period
Chongqing Kelsinki Landscaping
Co., Ltd.	100,000,000.00			100,000,000.00
Chongqing Tianhao Menchuang
Co., Ltd.	50,538,329.81			50,538,329.81
Chongqing Jinke Real Estate
Development Co., Ltd.	90,719,700.00			90,719,700.00
Chongqing Tongrong Industrial
Co., Ltd.	33,400,100.00			33,400,100.00
Chongqing Casin Jiangjing Real
Estate Development Co., Ltd.	39,418,063.00		39,418,063.00
Chongqing Jinke Industrial
Group Hua’nan Real Estate
Development Co., Ltd.	30,000,000.00			30,000,000.00
Chongqing Huaxie Real Estate
Co., Ltd.	64,930,000.00			64,930,000.00
Chongqing Zhongxun Property
Development Co., Ltd.	172,200,000.00			172,200,000.00
Chongqing Jinke Industrial
Group Hongjing Real Estate
Development Co., Ltd.	49,985,097.87			49,985,097.87
Chongqing Jiale Jiulong Real
Estate Development Co., Ltd.	103,870,945.98			103,870,945.98
Chongqing Tianyuansheng Real
Estate Development Co., Ltd.	179,664,612.36			179,664,612.36
Beijing Jinke Napa Real Estate
Co., Ltd.	2,558,856,506.91		2,200,000,000.00	358,856,506.91
Beijing Jinke Hongju Real
Estate Co., Ltd.	697,100,000.00			697,100,000.00
Chongqing Jinke Kepeng
Business Management Co.,
Ltd.	5,000,000.00			5,000,000.00
Chongqing Jinke Chenju Real
Estate Co., Ltd.	20,000,000.00			20,000,000.00
Chongqing Jinke Junyao Real
Estate Development Co., Ltd.	1,184,908,816.47			1,184,908,816.47
Chongqing Bishan Jinke
Zhongxi Real Estate Co., Ltd.	400,000,000.00			400,000,000.00
Jinan Jinke Xicheng Real Estate
Development Co., Ltd.	510,000,000.00			510,000,000.00
Chongqing Qingheng Trading
Co., Ltd.	49,810,000.00			49,810,000.00
Chongqing Jiangjin Jinke
Guojun Real Estate Co., Ltd.	987,424,013.72			987,424,013.72
Chongqing Jinke Culture and
Tourism Investment Co., Ltd.	86,400,000.00			86,400,000.00
Chengdu Jianglong Investment
Co., Ltd.	394,000,000.00			394,000,000.00

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					Provision
					withdrawn for	Provision for
	Amount at the				impairment in	impairment at
	beginning of the	Increase in the	Decrease in the	Amount at the	the current	the end of the
Invested entity	period	current period	current period	end of the period	period	period
Jinke Group Suzhou Real Estate
Development Co., Ltd.	20,000,000.00			20,000,000.00
Chongqing Jinke Jinyu Real
Estate Development Co., Ltd.		400,000,000.00		400,000,000.00
Chongqing Jinke Junkai Real
Estate Development Co., Ltd.		1,500,000,000.00		1,500,000,000.00
Chengdu Jinke Junfeng Real
Estate Development Co., Ltd.		27,500,000.00		27,500,000.00
Zunyi Jinke Real Estate
Development Co., Ltd.		1,100,000,000.00		1,100,000,000.00
Shenzhen Jinke Industry
Investment Fund Management
Co., Ltd.		50,000,000.00		50,000,000.00
Xinjiang Huaran Oriental New
Energy Co., Ltd.		542,087,958.01		542,087,958.01
Subtotal	12,696,059,070.41	3,619,587,958.01	2,239,418,063.00	14,076,228,965.42

• (3) Investment in associated enterprises and joint ventures

		Increase/decrease in the current period	Increase/decrease in the current period	Increase/decrease in the current period	Increase/decrease in the current period
					Investment
					gains/losses	Adjustments
	Amount at the				confirmed	to other
	beginning of the	Investment	Investment		based on	consolidated
Invested entity	period	added	reduced	equity method		income
Associated enterprises
Chongqing Yinhai Finance Leasing
Co., Ltd.	77,833,295.02				3,721,519.41
Nanning Sunac Shicheng Property
Co., Ltd.		490,000,000.00			-337,666.24
Subtotal	77,833,295.02	490,000,000.00			3,383,853.17
Joint venture
Jinwanzhong Real Estate	9,996,804.01				-73,547.00
Subtotal	9,996,804.01				-73,547.00
Total	87,830,099.03	490,000,000.00			3,310,306.17

— 504 —

APPENDIX II

FINANCIAL INFORMATION OF JINKE PROPERTY

	**Increase/decrease in **	**Increase/decrease in **	the current period			Balance of	Balance of
		Cash dividends				provision for
		or profits	Provision		Amount at the	impairment at
	Other equity	announced to	withdrawn for		end of the	the end of the
Invested entity	changes	be distributed	impairment	Others	period		period
Associated enterprises
Yinhai Leasing		5,514,732.87			76,040,081.56
Nanning Sunac					489,662,333.76
Subtotal		5,514,732.87			565,702,415.32
Joint venture
Jinwanzhong Real Estate					9,923,257.01
Subtotal					9,923,257.01
Total		5,514,732.87			575,625,672.33

• (4) Other descriptions

The Company provided a pledge guarantee for its loans with its 100% equities in Chongqing Jinke Real Estate Development Co., Ltd., 100% equities in Chongqing Jinke Shangzun Real Estate Co., Ltd., and 40% equities in Beijing Jinke Hongju Real Estate Co., Ltd.; the Company provided a pledge guarantee for the loans of its subsidiary Xinjiang Huaran Oriental New Energy Co., Ltd. with its 50% equities in Jinke New Energy Co., Ltd.

• (II) Notes to items in the income statement of the parent company

• Operating revenue/cost

• (1) Details

			Amount in the same period of	Amount in the same period of
	**Amount in the **	current period	preceding year
Item	Revenue	Cost	Revenue	Cost
Main businesses	15,027,952.56	19,546,068.05	68,117,006.00	47,552,512.20
Other businesses [note]	364,753,403.42	961,051.69	318,943,726.72	1,582,913.40
Total	379,781,355.98	20,507,119.74	387,060,732.72	49,135,425.60

Note: The revenue from other businesses is RMB364,753,403.42, which is the advisory management fee received by the Company from its subsidiaries.

— 505 —

APPENDIX II

FINANCIAL INFORMATION OF JINKE PROPERTY

• (2) Revenue from/cost of main businesses (by sector)

			Amount in the same period of
	**Amount in the **	current period	preceding year
Name of industry	Revenue	Cost	Revenue Cost
Real estate sales	15,027,952.56	19,546,068.05	68,117,006.00 47,552,512.20
Subtotal	15,027,952.56	19,546,068.05	68,117,006.00 47,552,512.20

• (3) Revenue from/cost of main businesses (by sector)

			Amount in the same period of
	**Amount in the **	current period	preceding year
Name of region	Revenue	Cost	Revenue Cost
Chongqing	15,027,952.56	19,546,068.05	68,117,006.00 47,552,512.20
Subtotal	15,027,952.56	19,546,068.05	68,117,006.00 47,552,512.20

1. Return on investment

		Amount in the
	Amount in the	same period of
Item	current period	preceding year
Long-term equity investment return accounted for by
cost method	904,468,208.68	1,334,750,000.00
Long-term equity investment return accounted for by
equity method	3,310,306.17	5,420,474.42
Investment return generated by disposal of long-term
equity investment	-29,418,063.00
Total	878,360,451.85	1,340,170,474.42

— 506 —

APPENDIX II

FINANCIAL INFORMATION OF JINKE PROPERTY

XVI. Other supplementary information

(I) Non-recurring gains and losses
1. Schedule of non-recurring gains and losses
Item	Amount	Note
Gains/losses from disposal of non-current assets, including the
offset part of the retained asset impairment provisions	2,823,667.92
Unauthorized examination and approval, or lack of official
approval documents, or occasional tax revenue return and
abatement
Governmental subsidies recorded into the current profit and loss
(except for the one closely related with the normal operation of
the company and gained constantly at a fixed amount or
quantity according to certain standard based on state policies)	35,637,659.71
Capital occupation fees on non-financial enterprises recorded into
current gains and losses	7,119,533.55
Gains because the investment costs for the Company to obtain
subsidiaries, associated enterprises and joint ventures are lower
than the enjoyable fair value of the identifiable net assets of the
investees when making the investments	683,701.54
Gain/loss on exchange of non-monetary assets
Gain/loss on entrusting others with investments or asset
management
Asset impairment provisions due to force majeure factors such as
natural disasters
Gain/loss on debt restructuring
Expenses for business reorganization, such as expenses for
staffing, reorganization etc.
Gain/loss on the part over the fair value due to transactions with
distinctly unfair prices
Current gains and losses of subsidiaries acquired from merger of
enterprises under the same control as from the beginning of the
period to the date of merger
Gain/loss on contingent events irrelevant to the Company’s
normal business
Gains and losses on change in fair value from tradable financial
assets and tradable financial liabilities (which are measured at
fair value with changes in fair value included in profit or loss),
as well as investment income from disposal of tradable
financial assets and tradable financial liabilities and financial
assets available for sales, except for effective hedging related
with normal businesses of the Company	21,424.66

— 507 —

FINANCIAL INFORMATION OF JINKE PROPERTY

APPENDIX II

Item	Amount	Amount	Note
Reversal of impairment provisions for receivables on which
impairment tests are carried out separately
Gain/loss on external entrustment loans
Gain/loss on change of the fair value of investment property of
which the subsequent measurement is carried out adopting the
fair value method	63,367,452.14
Effect on current gains/losses when a one-off adjustment is made
to current gains/losses according to requirements of taxation,
accounting and other relevant laws and regulations
Custody fee income when entrusted with operation
Non-operating incomes and expenses other than the above	-64,126,644.07
Other gain/loss items that meet the definition of non-recurring
gains/losses
Subtotal	45,526,795.45
Less: Enterprise income tax effects (“-” for decrease of
income tax)	11,677,913.53
Effect of minority interests (after tax)	174,033.06
Net non-recurring gains and losses attributable to owners of the
parent company	33,674,848.86
(II) Return on equity and earnings per share
1. Details
	Earnings per share (RMB/share)
Weighted average	Basic earnings	Diluted earnings
Profit in the reporting period ROE (%)	per share		per share
Net profit attributable to common
shareholders 9.42	0.28		0.28
Net profit attributable to common
shareholders after deducting
non-recurring gains and losses 9.17	0.27		0.27

— 508 —

FINANCIAL INFORMATION OF JINKE PROPERTY

APPENDIX II

1. Computation process of weighted average ROE

			Amount in the
Item		SN	current period
Net profit attributable to common shareholders		A	1,232,258,666.23
Non-recurring gains and losses		B	33,674,848.86
Net profit attributable to common shareholders after		C=A-B	1,198,583,817.37
deducting	non-recurring gains and losses
Opening net	assets attributable to common shareholders	D	11,454,001,979.03
Net assets attributable to common shareholders newly		E	4,442,087,958.01
added due	to new issuance or debt-to-equity swap
Cumulative number of months from the month following		F	3.00
the month	with net assets increased till the end of
reporting period
Net assets attributable to common shareholders decreased		G	206,781,007.65
due to repurchase or cash dividends
Cumulative number of months from the month following		H	8.00
the month	with net assets decreased till the end of
reporting period
Others	Adjustment in other consolidated revenue	I1	-622,705.49
	transferred into investment properties
	in previous years due to changes in
	income tax rate
	Cumulative number of months from the	J1	12.00
	month following the month with net
	assets increased/decreased till the end
	of reporting period
	Expenses and deferred tax assets	I2	94,278,862.15
	recognized for equity incentive in the
	current period
	Cumulative number of months from the	J2	6.00
	month following the month with net
	assets increased/decreased till the end
	of reporting period
	Equity transaction of Jinke Junwei	I3	-41,709,664.58
	Cumulative number of months from the	J3	4.00
	month following the month with net
	assets increased/decreased till the end
	of reporting period
	Equity transaction of Jinke Hongrui	I4	-12,502,836.47

— 509 —

FINANCIAL INFORMATION OF JINKE PROPERTY

APPENDIX II

			Amount in the
Item		SN	current period
	Cumulative number of months from the	J4	4.00
	month following the month with net
	assets increased/decreased till the end
	of reporting period
	Equity transaction of Jinke Hexu	I5	12,425,974.18
	Cumulative number of months from the	J5	3.00
	month following the month with net
	assets increased/decreased till the end
	of reporting period
	Equity transaction of Huaran Oriental	I6	-10,260,491.95
	Cumulative number of months from the	J6	0.00
	month following the month with net
	assets increased/decreased till the end
	of reporting period
	Equity transaction of Jinke Liju	I7	3,830,386.68
	Cumulative number of months from the	J7	9.00
	month following the month with net
	assets increased/decreased till the end
	of reporting period
	Unlocking of restricted shares granted for	I8	139,387,350.00
	the first time
	Cumulative number of months from the	J8	0.00
	month following the month with net
	assets increased/decreased till the end
	of reporting period
Months of reporting period		K	12.00
Weighted	average net assets	L= D+A/2+	13,077,224,472.00
		E�F/K-G�H/
		K�I�J/K
Weighted	average ROE	M=A/L	9.42%
Weighted	ROE after deducting non-recurring gains and	N=C/L	9.17%
losses

— 510 —

FINANCIAL INFORMATION OF JINKE PROPERTY

APPENDIX II

1. Computation process of basic earnings per share and diluted earnings per share

2. (1) Computation process of basic earnings per share

		Amount in the
Item	SN	current period
Net profit attributable to common shareholders [Note 1]	A	1,232,258,666.23
Non-recurring gains and losses	B1	33,674,848.86
Dividends of restricted shares	B2	6,639,000.00
Net profit attributable to common shareholders after	C=A-B1-B2	1,191,944,817.37
deducting non-recurring gains and losses [Note 2]
Total shares at the beginning of the period	D	4,135,620,153.00
Number of shares increased due to conversion of public	E
reserve into share capital or dividend distribution
Number of shares increased due to new issuance or	F1	1,020,408,163.00
debt-to-equity swap
Cumulative number of months from the month following	G1	3.00
the month with net assets increased till the end of
reporting period
Number of shares increased due to unlocking of	F2	43,832,500.00
restricted shares
Cumulative number of months from the month following	G2	0.00
the month with net assets increased till the end of
reporting period
Number of shares decreased due to repurchase	H
Cumulative number of months from the month following	I
the month with net assets decreased till the end of
reporting period
Number of shares shrunk in the reporting period	J
Months of reporting period	K	12.00
Weighted average number of common shares issued	L=D+E+F1�G1/K+	4,390,722,193.75
externally	F2 �G2/K
	-H�I/K-J
Basic earnings per share [Note 2]	M=A/L	0.28
Basic earnings per share after deducting non-recurring	N=C/L	0.27
gains and losses

Note 1: Net profit attributable to common shareholders is the amount of net profit attributable to owners of the parent company in the income statement after considering the impact of other equity instruments.

Note 2: According to the Interpretation No. 7 on the Accounting Standards for Business Enterprises ([2015] No. 19) issued by the Ministry of Finance on 4 November 2015, the numerator should deduct the cash dividend distributed to holders of restricted stocks which are expected to be unlocked in the future in the current period; and the denominator should not include the number of shares of restricted stocks.

— 511 —

FINANCIAL INFORMATION OF JINKE PROPERTY

APPENDIX II

(2) Computation process of diluted earnings per share

		Amount in the
Item	SN	current period
Net profit attributable to common shareholders	A	1,232,258,666.23
Effect of dilutive potential common shares on net profit	B
Net profit attributable to common shareholders after	C=A-B	1,232,258,666.23
dilution
Non-recurring gains and losses	D	33,674,848.86
Net profit attributable to common shareholders after	E=C-D	1,198,583,817.37
deducting non-recurring gains and losses after dilution
Weighted average number of common shares issued	F	4,390,722,193.75
externally
Weighted average of common shares increased from	G	11,989,836.11
warrant, stock option, convertible bonds, etc.
Weighted average number of common shares issued	H=F+G	4,402,712,029.86
externally after dilution
Diluted earnings per share	M=C/H	0.28
Diluted earnings per share after deducting non-recurring	N=E/H	0.27
gains and losses

— 512 —

FINANCIAL INFORMATION OF JINKE PROPERTY

APPENDIX II

2. ANALYSIS ON THE ACCOUNTING POLICIES ADOPTED BY THE COMPANY (HKFRS) AND JINKE PROPERTY (PRC GAAP)

As described in the section entitled “Letter from the Board — Waivers from Strict Compliance with the requirements under the Listing Rules” of this circular, the Company has applied to the Stock Exchange for, and has been granted, a waiver from the requirement to include in this circular an accountants’ report on Jinke Property in accordance with Rule 14.67(6)(a)(i) and Chapter 4 of the Listing Rules.

Instead, the circular contains a copy of the financial statements of Jinke Property for the three years ended 31 December 2014, 2015 and 2016, prepared in accordance with PRC GAAP and audited by Pan-China Certified Public Accountants (“ Pan-China CPA ”) (collectively referred to in this Appendix II as the “ Jinke Property Historical Accounts ”).

The Company has compared the accounting policies adopted by Jinke Property for the years ended 31 December 2014, 2015 and 2016 which are prepared in accordance with PRC GAAP, and the accounting policies presented adopted by the Company which are in compliance with HKFRS (the “ Review ”). Based on the Review, no differences, other than presentational differences, exist which would have a significant effect on the Jinke Property Historical Accounts had they been prepared in accordance with the accounting policies presently adopted by the Company which are in compliance with HKFRS.

Pan-China CPA was engaged by the Company to conduct work in accordance with the Hong Kong Standard on Assurance Engagements 3000 “Assurance Engagements Other Than Audits or Reviews of Historical Financial Information” (“ HKSAE 3000 ”) issued by the HKICPA on the results of the Review. The work consisted primarily of

• (i) examining whether any material differences exist between the accounting policies adopted by Jinke Property for the years ended 31 December 2014, 2015 and 2016 which are prepared in accordance with PRC GAAP, and the accounting policies presented adopted by the Company which are in compliance with HKFRS; and

• (ii) if material differences exist, considering whether any reconciliation adjustments shall be made to the Jinke Property Historical Accounts.

— 513 —

APPENDIX II

FINANCIAL INFORMATION OF JINKE PROPERTY

The engagement of Pan-China CPA did not involve independent examination of any of the underlying financial information. The work carried out in accordance with HKSAE 3000 is different in scope from an audit or review conducted in accordance with Hong Kong Standards on Auditing or Hong Kong Standards on Review Engagements issued by the HKICPA and consequently, Pan-China CPA did not express an audit opinion nor a review conclusion on the Review. The engagement of Pan-China CPA was intended solely for the use of the Directors in connection with this circular and may not be suitable for another purpose.

Based on the work performed, Pan-China CPA has concluded that no differences, other than presentational differences, exist between the accounting policies adopted by Jinke Property for the years ended 31 December 2014, 2015 and 2016 which are prepared in accordance with PRC GAAP, and the accounting policies presented adopted by the Company which are in compliance with HKFRS, which would have a significant effect on the Jinke Property Historical Accounts had they been prepared in accordance with the accounting policies presently adopted by the Company which are in compliance with HKFRS.

The following unaudited combined statement of operation results for each of the three years ended 31 December 2014, 2015 and 2016 set out the reconciliation for the Jinke Property Historical Accounts as if they had been prepared in accordance with the accounting policies presently adopted by the Company which are in compliance with HKFRS.

Unaudited Combined Statement of Operation Results (prepared under HKFRS)

Items Revenue Cost of sales Gross profit Selling and marketing costs Administrative expenses Fair value gains on investment properties Other income and gains Other expenses and losses Operating profit	Unadjusted combined financial statements prepared under China Accounting Standards for Business Enterprises (audited) 32,235,442 (26,895,114) 5,340,328 (980,862) (1,360,828) 63,367 21 (24,982) 3,037,045	2016 Adjustments made for inconsistency with HKFRS u — — — — — — — — —	Combined financial information prepared nder HKFRS (unaudited) 32,235,442 (26,895,114) 5,340,328 (980,862) (1,360,828) 63,367 21 (24,982) 3,037,045	Unadjusted combined financial statements prepared under China Accounting Standards for Business Enterprises (audited) 19,398,573 (15,426,880) 3,971,693 (693,511) (996,464) 39,864 83,231 — 2,404,813	2015 Adjustments made for inconsistency with HKFRS u — — — — — — — — —	Combined financial information prepared nder HKFRS (unaudited) 19,398,573 (15,426,880) 3,971,693 (693,511) (996,464) 39,864 83,231 — 2,404,813	Unadjusted combined financial statements prepared under China Accounting Standards for Business Enterprises (audited) 17,323,507 (15,072,721) 2,250,786 (638,071) (756,943) 54,313 212,899 — 1,122,984	RMB’000 2014 Adjustments made for inconsistency with HKFRS Combined financial information prepared under HKFRS (unaudited) — 17,323,507 — (15,072,721) — 2,250,786 — (638,071) — (756,943) — 54,313 — 212,899 — — — 1,122,984	RMB’000 2014 Adjustments made for inconsistency with HKFRS Combined financial information prepared under HKFRS (unaudited) — 17,323,507 — (15,072,721) — 2,250,786 — (638,071) — (756,943) — 54,313 — 212,899 — — — 1,122,984
									2,250,786
									(638,071) (756,943) 54,313 212,899 —
									1,122,984

— 514 —

APPENDIX II

FINANCIAL INFORMATION OF JINKE PROPERTY

Items Unadjusted combined financial statements prepared under China Accounting Standards for Business Enterprises (audited) Finance income 71,359 Finance costs (376,793) Net finance costs (305,434) Share of post-taxes profits of investments accounted for using equity method, net (98,742) Profit before income tax 2,632,869 Income tax expense (842,520) Profit for the year 1,790,349 Other comprehensive income for the year (1,221) Total comprehensive income for the year 1,789,128 Profit and total comprehensive income attributable to: —Owners of the Company 1,231,636 —Holders of perpetual capital instruments 163,002 —Non-controlling interests 394,490 Earnings per share attributable to owners of the Company — —Basic earnings per share — —Diluted earnings per share —	2016 Adjustments made for inconsistency with HKFRS u — — — — — — — — — — — — — — —	Combined financial information prepared nder HKFRS (unaudited) 71,359 (376,793) (305,434) (98,742) 2,632,869 (842,520) 1,790,349 (1,221) 1,789,128 1,231,636 163,002 394,490 — — —	Unadjusted combined financial statements prepared under China Accounting Standards for Business Enterprises (audited) 133,614 (401,866) (268,252) (5,153) 2,131,408 (897,762) 1,233,646 26,368 1,260,014 1,154,241 139,086 (33,314) — — —	2015 Adjustments made for inconsistency with HKFRS u — — — — — — — — — — — — — — —	Combined financial information prepared nder HKFRS (unaudited) 133,614 (401,866) (268,252) (5,153) 2,131,408 (897,762) 1,233,646 26,368 1,260,014 1,154,241 139,086 (33,314) — — —	Unadjusted combined financial statements prepared under China Accounting Standards for Business Enterprises (audited) 97,023 (260,003) (162,980) 29,781 989,785 (126,746) 863,039 39,850 902,889 942,649 — (39,760) — — —	2014 Adjustments made for inconsistency with HKFRS u — — — — — — — — — — — — — — —	Combined financial information prepared nder HKFRS (unaudited) 97,023 (260,003)
								(162,980) 29,781
								989,785
								(126,746)
								863,039
								39,850
								902,889
								942,649 — (39,760)
								— — —

— 515 —

APPENDIX III

MANAGEMENT DISCUSSION AND ANALYSIS OF JINKE PROPERTY

The following management discussion and analysis of the results of Jinke Property is extracted from the annual reports of Jinke Property for the years ended 31 December 2014, 2015 and 2016, which are available on the websites of Jinke Property (http://www.jinke.com/investors/dqbg/) and the Shenzhen Stock Exchange (http://disclosure.szse.cn/m/drgg_search.htm?secode=000656). The headings or sub-headings of the extracted texts have been modified for the purpose of inclusion in this circular. These information are originally published in Chinese and the English translated version is provided for information purposes only. In case of discrepancies between the two versions, the Chinese version shall prevail. The term “the Company” appearing in the extracted texts below refers to Jinke Property.

MANAGEMENT DISCUSSION AND ANALYSIS OF THE RESULTS OF JINKE PROPERTY FOR THE YEAR ENDED 31 DECEMBER 2014

Section 4 Report of the Board of Directors

I. Overview

1. 2014 market review

In 2014, global economic recovery was full of twists and turns as major economies performed unevenly, coupled with the US’s exit from the quantitative easing, which dealt a blow to emerging economies including China. Despite increasing downward pressure, domestic economy still maintained a steady development momentum as a whole. GDP came in at RMB63.6 trillion, representing a year-on-year growth of 7.4% and securing a leading position among major economies in the world. The economic fundamentals did not undergo significant change but China had to deal simultaneously with the slowdown in economic growth, making difficult structural adjustments, and absorbing the effects of previous economic stimulus policies, marking China’s economy entered a “new normal”.

In 2014, the Central Government rolled out a sequence of measures including “mini-stimulus” and “steady growth” to increase infrastructure investment and encouraged financial institutions to support residents’ housing purchase needs by “cutting targeted required reserve ratio” and “promulgating National Five Rules”. Following the launch of the “September 30” housing policy, various local governments successively began to loosen “loan restrictions”, and the asymmetric interest rate cut resulted in an overall easing capital pattern. On that basis, the real estate industry bottomed out. The real estate industry declined before rising in 2014. Growth rate of the housing price decreased and inventory pressure increased. Land price continuously climbed up despite negative growth in land sales. Some cities were troubled with excess capacity. The real estate industry entered the “silver age”.

As shown in the data from the National Bureau of Statistics, in 2014, the real estate development investment nationwide came up to RMB9.5 trillion, up 10.5% on a year-on-year basis, and the growth rate was 9.3 ppts less than that in the preceding year; specifically, residential investment grew 9.2%; sold GFA of commodity housing nationwide decreased 7.6% from last year to 1,206 million m[2] , in particular, sold GFA of residential housing slid 9.1%; sales amount of commodity housing retreated

— 516 —

MANAGEMENT DISCUSSION AND ANALYSIS OF JINKE PROPERTY

APPENDIX III

6.3% from last year to RMB7.63 trillion, of which, sales amount of residential housing declined 7.8%. The calculation reveals that in 2014 the average sale price of commodity housing nationwide rose 1.4% on a year-on-year basis. Proceeds from land sales nationwide reached RMB4.29 trillion in 2014, representing a year-on-year growth of 3.1%.

2. Operation review

During the reporting period, the Company made significant headway in upgrading and transformation closely following the principle of “reform and innovation, industrial upgrading” formulated at the beginning of the year and performed well amid stability. Major achievements are as follows:

• I Various business segments of the Company posted a combined sales amount of about RMB23 billion in 2014, representing a year-on-year rise of about 2%. Especially in the overall downward market, the real estate sector still recorded contracted sales amount of about RMB21 billion, up approximately 1% year on year, and contracted sold GFA of about 3.22 million m[2] , up approximately 22% year on year.

• II The Company continuously intensified reform, overcame development barriers and made major breakthroughs in industrial upgrading and transformation. With a focus on eight major aspects and 58 tasks, the Company set up an intensive reform leading group, and worked out and implemented the Decisions on Several Issues of Continuously Intensifying Reform as well as several important reform measures. The Company also positively implemented the strategy of upgrading its real estate business by “grafting industry to real estate” and developing the traditional property management toward integrated community service under the Internet thinking. The industrial real estate investment company set up by the Company focused on investments in scientific and technological industrial park, culture & tourism industrial real estate and health industrial real estate and signed strategic cooperation agreements with Huayi Brothers and Yida Group. The first scientific and technological industrial park found its home in Changsha. In respect of industrial transformation, the Company established a new energy company, which acquired the first new energy project - wind power generation project based in Hami, Xinjiang through M&A. The annual generating hours of the project could exceed 2,900, far beyond the industry average, and the M&A quality and efficiency were highly recognized in the industry.

• III Real estate projects proceeded steadily. In 2014, the Company obtained 17 land projects involving 19 plots of land through bidding, auction or quotation, equity acquisition, etc., and the land premium amounted to RMB10.2 billion, up 8% year on year; the capacity buildable area of new projects was 5.7 million m[2] , areas around new projects were more mature and the projects in main urban zone and the area linking the main urban zone with suburban zone accounted for an increasing proportion. The Company entered the provincial market in Yunnan for the first time and expanded into five cities including Kunming, Wanzhou in Chongqing, etc. Besides, the Company continued to enhance joint investment and cooperation and introduced relevant contracted capital of RMB1.63 billion. As at the end of the reporting period, the capacity buildable area of the Company’s land reserve reached 17.5 million m[2] .

— 517 —

APPENDIX III

MANAGEMENT DISCUSSION AND ANALYSIS OF JINKE PROPERTY

• IV The Company completed the first capital market financing and achieved notable results in multi-ways financing, further improving the capital chain security. Over more than a year’s efforts, the Company completed the private equity placement during the reporting period and raised a fund of RMB2.2 billion, the first successful capital market financing after its “back-door” listing, which effectively reinforced its capital strength, improved its capital structure and reduced its capital cost. The Company continued to maintain a good partnership with major banks and non-banking financial institutions. While consolidating and enhancing the loan financing for project development, the Company innovated financing modes, expanded financing scale, reduced financial cost and strengthened recovering sales proceeds from real estate business, with the recovery rate up to 92%. The sound and effective capital management adequately guaranteed the Company’s capital needs relating to operation and production and project investment. At the end of the period, advance receipts came to RMB22,431 million, up 20.15% year on year. The asset-liability ratio on a downward lane was 0.13 ppt less as compared with the end of last year.

During the reporting period, the Company planned to issue corporate bonds of not more than RMB3.8 billion and medium-term notes of not more than RMB3.9 billion, and relevant work was advanced in an orderly manner.

• V Brand influence was continuously built up. The Company’s balanced emphasis on corporate brand, product brand, community brand and leading brand solidly enhanced the Company’s brand value. Five brand events with a nationwide influence were carried out this year, and the “Neighbourhood Carnival” series activities attracted more participants and became more influential. The Company kept fulfilling its social responsibilities by holding charitable activities including Jinke Red Sun series and made a total donation of RMB18.55 million throughout the year. Management quality of community services was improved amid stability, and owner satisfaction was also enhanced. During the reporting period, the Company won many titles granted by third-party institutions, including “China’s Top 100 Real Estate Enterprises in 2014”, “Top 10 Real Estate Enterprises in Financing Ability in 2014”, “Top 10 in Operation Efficiency in 2014”, No. 15 ranking among China’s real estate enterprises with comprehensive strength, “China’s Top 10 Real Estate A-share Enterprises”, “China’s Consumption High-integrity Enterprise in 2014”, “China’s Top 100 Property Service Providers in 2014”, “China’s Top 10 Real Estate Brand Value”, “Outstanding Charity Contributor in China”, etc.; Mr. Huang Hongyun, chairman of the Board of Directors, won the honor of “Excellent Builder of the Cause of Socialism with Chinese Characteristics” at national level as well as many other social honors. Multiple projects developed by the Company also got many relevant awards.

Moreover, the Company further enhanced product R&D positioning, strategic bidding for projects, purchase of materials, cost control, engineering quality and security management, effectively improving the operation efficiency and quality of the projects. In 2014, the Company’s newly started GFA came in at about 5.01 million m[2] , completed GFA was approximate to 2.6 million m[2] and booked GFA was about 2.3 million m[2] ; 68 projects were under construction at the end of 2014, with in-construction GFA of about 10.81 million m[2] . Other business sectors of the Company also achieved satisfactory operating results.

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APPENDIX III

MANAGEMENT DISCUSSION AND ANALYSIS OF JINKE PROPERTY

In the reporting period, the Company saw constantly improved corporate governance and standardized operation. The Board of Directors, the Supervisory Committee and the general meeting operated healthily; the Company convened 19 meetings of the Board of Directors, 8 meetings of the Supervisory Committee and 11 general meetings; the Company was completely independent from the controlling shareholders in business, personnel, assets, organization and finance and had independent and integral business and management capabilities; the Company strictly observed various rules on the listed companies, and disclosed information in a prompt, accurate and complete manner. Moreover, the Company’s investor relations management was highly recognized by investors, especially institutional investors. This year, at the 10th Gold Prize of Round Table of the Board of Directors of China’s Listed Companies election ceremony, the Board of Directors of the Company won the honour of “Excellent Board of Directors”, and the Board secretary was awarded as “Most Innovative Board Secretary”. In addition, the Company received a prize for investor relations at the Golden Shield Award for Risk Management of China’s Listed Companies and the Board secretary won the 4th-straight title of “Golden Board Secretary” granted by New Fortune .

II. Analysis of main businesses

I. Overview

The Company reviewed and summarized the progress of the development strategies and operation plans disclosed in the last period

In the reporting period, the Company recorded an operating revenue of RMB17,324 million, up by 7.8% year on year, a net profit of RMB863 million, down by 8.8% year on year, net profit of RMB908 million attributable to owners of the parent company, down by 7.74% year on year, which was primarily because the main items and products carried over to this year were low-margin items and products for sale in previous market downturn and the significant decline of housing price in 2014 led to withdrawal of large provision for inventory depreciation of some items. As at the end of the reporting period, the Company logged a total assets of RMB82,066 million, up by 31.53% year on year, an equity of RMB10,530 million attributable to the shareholders of the listed company, up by 34.1% year on year.

Reasons for 20% difference between the Company’s actual operating result and the profit forecast of this year as disclosed previously

==> picture [175 x 10] intentionally omitted <==

Changes in the main business modes

==> picture [175 x 11] intentionally omitted <==

— 519 —

APPENDIX III

MANAGEMENT DISCUSSION AND ANALYSIS OF JINKE PROPERTY

2. Revenue

Note

Sector	2014		2013
		Percentage		Percentage
		in the		in the
		operating		operating	Year-on-
	Amount	revenue	Amount	revenue	year change
		(%)		(%)	(%)
Real estate sales	15,826,213,813.90	92.70	15,383,837,201.12	96.55	2.88
Property
management	434,578,287.97	2.55	308,294,159.82	1.93	40.96
Hotel operation	145,435,930.10	0.85	154,039,128.00	0.97	-5.59
Landscaping and
others	665,847,882.67	3.90	86,894,202.60	0.55	666.27

The year-on-year increase of 40.96% in the operating revenue from property management was primarily due to increase in the property management items.

Revenue from landscaping and others is the net amount after internal offset in landscaping, decorations, doors and windows, material sales and various businesses, and the year-on-year increase of 666.27% was primarily due to increase in external business of material sales undertaken.

Development of major projects in 2014

Unit: 0,000 m[2]

					GFA under
					construction
			Newly started	Completed	at the end
Region	Project name	Location	GFA in 2014	GFA in 2014	of 2014	Progress
Chongqing	Chongqing Hechuan •	Hechuan District	0.1	10.9	18.1	Under construction
	Jinke World City
	Chongqing Hechuan •	Hechuan District	14.8	0.0	14.8	Under construction
	Jinke City Nature City
	Chongqing • Wansheng	Wansheng District	1.5	0.0	18.8	Under construction
	Jinke China Health City
	Chongqing • Jinke	Yubei District	0.0	19.4	0.2	Under construction
	Oriental Palace
	Chongqing • Jinke	Jiangjin District	10.6	0.0	36.0	Under construction
	Jiangjin World City

— 520 —

APPENDIX III

MANAGEMENT DISCUSSION AND ANALYSIS OF JINKE PROPERTY

					GFA under
					construction
			Newly started	Completed	at the end
Region	Project name	Location	GFA in 2014	GFA in 2014	of 2014	Progress
	Chongqing • Jinke	Jiangjin District	24.7	0.0	24.7	Under construction
	Jiangjin Central Park
	Chongqing • Jinke	Beibu New	0.3	0.0	18.3	Under construction
	Times Center	District
	Chongqing Beibei •	Beibu New	23.5	0.0	34.6	Under construction
	Jinke World City	District
	Chongqing • Jinke	Nan’an District	15.4	7.3	28.6	Under construction
	Central Imperial Garden
	Chongqing Bishan •	Bishan District	13.9	20.5	29.6	Under construction
	Jinke Central Park
	Chongqing • Jinke	Shapingba District	21.3	28.8	75.8	Under construction
	Bridge Village
	Chongqing • Jinke	Shapingba District	24.9	0.0	24.9	Under construction
	Xiyong Tianchen
	Chongqing • Jinke Sun	Jiangbei District	0.0	8.8	0.0	Completed
	Coast
	Chongqing • Jinke	Nan’an District	0.0	15.4	0.0	Completed
	World City
	Chongqing • Jinke	Nan’an District	4.2	0.0	4.2	Under construction
	Central Washington
	Chongqing Nanchuan •	Nanchuan District	12.5	0.0	12.5	Under construction
	Jinke World City
	Chongqing Fuling •	Fuling District	14.9	0.0	14.9	Under construction
	Jinke Nature City
	Chongqing Changshou •	Fuling District	0.4	12.8	28.0	Under construction
	Sunshine Town
	Chongqing Changshou •	Fuling District	13.5	0.0	13.5	Under construction
	World City
	Chongqing Fuling •	Fuling District	4.1	0.0	16.0	Under construction
	Jinke Central Park
	Chongqing Fengdu •	Fengdu	13.1	0.0	13.1	Under construction
	Jinke Golden Coast
	Chongqing Yongchuan •	Yongchuan	3.5	7.1	15.5	Under construction
	Jinke Sunshine Town	District
	Chongqing Yongchuan •	Yongchuan	6.8	0.0	6.8	Under construction
	Jinke Park Palace	District
	Chongqing Rongchang •	Rongchang	6.6	19.8	16.4	Under construction
	Jinke World City

— 521 —

APPENDIX III

MANAGEMENT DISCUSSION AND ANALYSIS OF JINKE PROPERTY

					GFA under
					construction
			Newly started	Completed	at the end
Region	Project name	Location	GFA in 2014	GFA in 2014	of 2014	Progress
	Chongqing Dazu •	Dazu	8.8	0.0	33.3	Under construction
	Jinke Central Park
	Chongqing Kaixian •	Kaixian	18.8	25.9	34.4	Under construction
	Jinke Kaizhou City
	Chongqing Kaixian •	Kaixian	29.8	0.0	50.8	Under construction
	Jinke Wealth Center
	Chongqing Yunyang •	Yunyang	38.1	0.0	38.1	Under construction
	Jinke World City
	Zunyi • Jinke Central	Zunyi	16.2	0.0	16.2	Under construction
	Park
Jiangsu	Wuxi • Milan Garden	Wuxi New District	3.9	3.4	13.0	Under construction
	Wuxi • Chengnan	Nanchang District	1.8	9.3	29.1	Under construction
	Aristocratic Family
	Wuxi • Wealth	Wuxi New District	3.6	0.0	16.9	Under construction
	Commercial Plaza
	Jiangyin • Oriental	Jiangyin	0.0	6.6	7.4	Under construction
	Palace
	Zhangjiagang • Bridge	Jiangyin	0.0	9.0	20.6	Under construction
	Impression
	Zhangjiagang • Bridge	Jiangyin	6.6	0.0	9.1	Under construction
	Mansion
	Jiangsu Rugao • Jinke	Rugao	1.8	0.0	13.3	Under construction
	World City
	Suzhou • Scene	Suzhou	0.0	1.6	24.0	Under construction
	Mansion
	Suzhou • Nature	Suzhou	9.0	0.0	21.0	Under construction
	Garden
	Suzhou • Jinke World	Suzhou	6.0	0.0	6.0	Under construction
	View
	Nantong • Bridge	Nantong	0.0	10.1	8.7	Under construction
	Waterfront
Sichuan	Chengdu • Jinke Bridge	Xinjin County	4.7	13.4	7.3	Under construction
	Village
	Chengdu • Jinke Center	Chenghua District	1.6	0.0	25.5	Under construction
	Chengdu • Jinke Nature	Chenghua District	0.0	15.0	0.0	Completed
	City
	Chengdu • Jinke	Longquanyi	4.4	0.0	4.4	Under construction
	Oriental Elegance	District
	County

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APPENDIX III

MANAGEMENT DISCUSSION AND ANALYSIS OF JINKE PROPERTY

					GFA under
					construction
			Newly started	Completed	at the end
Region	Project name	Location	GFA in 2014	GFA in 2014	of 2014	Progress
	Neijiang • Jinke Times	Neijiang City	13.0	0.0	13.0	Under construction
	Center
	Neijiang • Jinke Park	Neijiang City	13.9	0.0	15.9	Under construction
	Palace
	Neijiang • Jinke Central	Neijiang City	1.9	10.2	27.7	Under construction
	Park
Beijing	Beijing • Jinke Napa	Changing District	5.3	4.3	12.3	Under construction
	House
	Beijing • Jinke Bridge	Changing District	0.0	0.7	6.6	Under construction
	Garden
	Beijing • Jinke Nature	Daxing District	10.0	0.0	10.0	Under construction
	City
Hunan	Changsha • Flourishing	Yuelu District	0.3	1.0	8.9	Under construction
	Oriental Courtyard
	Liuyang • Tianhu New	Liuyang City	0.0	0.0	9.7	Under construction
	City
	Changsha • Jinke World	Yuelu District	4.1	0.0	9.2	Under construction
	City
	Changsha • Jinke	Changsha County	4.5	0.0	25.8	Under construction
	Center
	Chenzhou • Jinke City	Chenzhou City	15.9	0.0	15.9	Under construction
	Chenzhou • Nanling	Chenzhou City	0.0	1.6	3.2	Under construction
	Eco-city “By the Water
	Side”
Shandong	Jinan • Jinke World	Jinan City	5.8	0.0	24.8	Under construction
	City
	Qingdao • Jinke	Qingdao City	5.0	0.0	5.0	Under construction
	Sunshine Town
Xinjiang	Bridge Village	Wujiaqu City	16.8	0.0	26.8	Under construction
	Mechanical & Electrical	Wujiaqu City	6.8	0.0	6.8	Under construction
	Products Exhibition
	Hall Project
	Central Asia Mechanical	Wujiaqu City	4.9	0.0	4.9	Under construction
	& Electrical Products
	Expo Center
Shaanxi	Xi’an • Jinke Nature	Xi’an City	6.8	0.0	6.8	Under construction
	City

— 523 —

APPENDIX III

MANAGEMENT DISCUSSION AND ANALYSIS OF JINKE PROPERTY

Whether the Company’s revenue from sales of material objects is higher than labour service revenue

�Yes	□No
					Year-on-year
Sector		Item	2014	2013	increase/decrease
Real estate	development	Sales area (0,000 m2)	322	263	22.43%
		Sales amount (RMB’00	210	208	1.44%
		million)

Description of reasons for a year-on-year change of over 30% in relevant data

□ Applicable � Not Applicable

Major orders in hand of the Company

□ Applicable � Not Applicable

Material changes or adjustments in the Company’s products or services in the reporting period

□ Applicable � Not Applicable

Information about the Company’s main customers

Total amount of sales to the top 5 customers (RMB)	682,648,283.30
Percentage of the total amount of sales to the top 5 customers in the
annual total sales amount	3.94%

Information about the Company’s top 5 customers

� Applicable □ Not Applicable

SN Name of customer 1 Customer 1 2 Customer 2 3 Customer 3 4 Customer 4 5 Customer 5 Total —	Sales volume Percentage in the annual total sales volume (RMB) 344,547,301.00 1.99% 230,575,287.35 1.33% 51,378,871.95 0.30% 33,537,999.00 0.19% 22,608,824.00 0.13% 682,648,283.30 3.94%	Sales volume Percentage in the annual total sales volume (RMB) 344,547,301.00 1.99% 230,575,287.35 1.33% 51,378,871.95 0.30% 33,537,999.00 0.19% 22,608,824.00 0.13% 682,648,283.30 3.94%
		3.94%

— 524 —

APPENDIX III

MANAGEMENT DISCUSSION AND ANALYSIS OF JINKE PROPERTY

Other information about the main customers

□ Applicable � Not Applicable

1. Cost

Sector

Unit: RMB

Sector	2014	2014	2013	2013
		Percentage		Percentage	Year-on-
		in the		in the	year
		operating		operating	increase/
	Amount	cost	Amount	cost	decrease
Real estate sales	12,193,291,958.81	91.51%	11,512,023,339.60	96.92%	5.92%
Property management	348,305,539.15	2.63%	252,975,000.32	2.13%	37.68%
Hotel operation	35,794,789.06	0.27%	42,039,980.58	0.35%	-14.86%
Landscaping and others	674,442,569.07	5.59%	71,326,733.40	0.60%	845.57%

Product

Unit: RMB

Product	2014	2014	2013	2013
		Percentage		Percentage	Year-on-
		in the		in the	year
		operating		operating	increase/
	Amount	cost	Amount	cost	decrease
Real estate sales	12,193,291,958.81	91.51%	11,512,023,339.60	96.92%	5.92%
Property management	348,305,539.15	2.63%	252,975,000.32	2.13%	37.68%
Hotel operation	35,794,789.06	0.27%	42,039,980.58	0.35%	-14.86%
Landscaping and others	674,442,569.07	5.59%	71,326,733.40	0.60%	845.57%

Notes

The year-on-year increase of 37.68% in property management cost was primarily due to increase in property management items;

The year-on-year increase of 845.57% in landscaping and other costs was primarily due to increase in external business of material sales undertaken.

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APPENDIX III

MANAGEMENT DISCUSSION AND ANALYSIS OF JINKE PROPERTY

Information about the Company’s main suppliers

Total amount of purchase from the top 5 suppliers (RMB) 3,706,235,560.16 Percentage of the total amount of purchase from the top 5 suppliers in the annual total purchase amount 25.15%

Information about the Company’s top 5 suppliers

• Applicable □ Not Applicable

Percentage in annual total Purchase amount purchase amount (RMB)

SN Name of supplier Purchase amount purchase (RMB) 1 Supplier 1 1,305,043,579.64 2 Supplier 2 869,411,499.47 3 Supplier 3 678,738,203.13 4 Supplier 4 429,159,482.01 5 Supplier 5 423,882,795.91 Total — 3,706,235,560.16	amount 8.86% 5.90% 4.60% 2.91% 2.88%
	25.15%

Other information about the main suppliers

• Applicable � Not Applicable

4. Expenses

In 2014, the Company recorded a financial expense of RMB163 million, up by 92.57% year on year, which was primarily because of increase in interest-converted expense after completion of construction of the Company’s projects in the current period. In 2014, the Company recorded an assets impairment loss of RMB769 million, up by 3003.02% year on year, which was primarily because the significant decline of housing price in 2014 led to withdrawal of provision for inventory depreciation of some items.

In 2014, the Company recorded an income tax expense of -RMB110 million, representing a year-on-year decrease of 134.14%, which was primarily because the difference between the income tax expense recognized at a rate of 25% and the enterprise income tax calculated as per a rate of 15% during 2011-2013 was converted back as some of the Company’s subsidiaries were confirmed to enjoy the tax preference policy for western development in the current period.

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APPENDIX III

MANAGEMENT DISCUSSION AND ANALYSIS OF JINKE PROPERTY

1. R&D expenditure

□ Applicable � Not Applicable

6. Cash flow

Unit: RMB

			Year-on-year
			increase/
Item	2014	2013	decrease
Subtotal of cash inflows from	24,494,383,530.50	20,386,007,444.66	20.15%
operating activities
Subtotal of cash outflows for	32,879,146,530.58	24,904,013,498.81	32.02%
operating activities
Net cash flows from operating	-8,384,763,000.08	-4,518,006,054.15	-85.59%
activities
Subtotal of cash inflows from	565,873,679.63	111,179,103.14	408.97%
investing activities
Subtotal of cash outflows for	1,246,748,737.74	864,329,477.31	44.24%
investing activities
Net cash flows from investing	-680,875,058.11	-753,150,374.17	-9.60%
activities
Subtotal of cash inflows from	31,692,592,094.80	26,984,496,940.11	17.45%
financing activities
Subtotal of cash outflows for	21,534,485,363.70	23,490,838,574.30	-8.33%
financing activities
Net cash flows from financing	10,158,106,731.10	3,493,658,365.81	190.76%
activities
Net increase in cash and cash	1,092,468,672.91	-1,777,498,062.51	161.46%
equivalents

Description of reasons for a year-on-year change of over 30% in relevant data

• Applicable □ Not Applicable

• The year-on-year increase in cash outflows for operating activities was primarily due to increase in operating expenses such as land expense and project payment.

• The year-on-year decrease in net cash flows from operating activities was primarily due to increase in land expense in the current period.

— 527 —

MANAGEMENT DISCUSSION AND ANALYSIS OF JINKE PROPERTY

APPENDIX III

1. The year-on-year increase in cash inflows from investing activities was primarily due to disposal of equity of USUM Investment Group in the current period.

2. The year-on-year increase in cash outflows for investing activities was primarily due to acquisition of minority equity of Zhongxi Real Estate and Junyao Real Estate.

3. The year-on-year increase in net cash flows from financing activities was primarily due to increase in net amount of borrowings, increase in investment from minority shareholders and non-public issuance of shares for fund raising in the current period.

4. The year-on-year increase in net amount of cash and cash equivalents was primarily due to non-public issuance of shares for fund raising in the current period.

Description of reasons for significant difference between the Company’s net cash flows from operating activities in the reporting period and net profit in the current year

□ Applicable � Not Applicable

— 528 —

APPENDIX III

MANAGEMENT DISCUSSION AND ANALYSIS OF JINKE PROPERTY

III. Composition of main businesses

Unit: RMB

				Increase/
				decrease in	Increase/	Increase/
				operating	decrease in	decrease in
				revenue as	operating cost	gross margin
				compared with	as compared	as compared
				the same	with the same	with the same
				period of	period of	period of
			Gross	the preceding	the preceding	the preceding
	Operating revenue	Operating cost	margin	year	year	year
By sector
Real estate sales	15,826,213,813.90	12,193,291,958.81	22.96%	2.88%	5.92%	Decrease of
						2.21%
Property management	434,578,287.97	348,305,539.15	19.85%	40.96%	37.68%	Increase of
						1.91%
Hotel operation	145,435,930.10	35,794,789.06	75.39%	-5.59%	-14.86%	Increase of
						2.68%
Landscaping and others	665,847,882.67	674,442,569.07	-1.29%	666.27%	845.57%	Decrease of
						19.21%
By product
Real estate sales	15,826,213,813.90	12,193,291,958.81	22.96%	2.88%	5.92%	Decrease of
						2.21%
Property management	434,578,287.97	348,305,539.15	19.85%	40.96%	37.68%	Increase of
						1.91%
Hotel operation	145,435,930.10	35,794,789.06	75.39%	-5.59%	-14.86%	Increase of
						2.68%
Landscaping and others	665,847,882.67	674,442,569.07	-1.29%	666.27%	845.57%	Decrease of
						19.21%
By region
Chongqing	12,737,670,545.39	9,665,447,800.76	24.12%	32.31%	40.07%	Decrease of
						4.21%
Sichuan	2,118,001,376.90	1,820,187,081.22	14.06%	343.08%	323.95%	Increase of
						3.88%
Jiangsu	2,514,342,102.42	2,028,884,543.14	19.31%	-45.55%	-45.23%	Decrease of
						0.48%

As the statistical calibre of main business data of the Company was adjusted in the reporting period, the main business data are those adjusted as per the calibre at the end of the reporting period in the past one year.

□ Applicable � Not Applicable

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APPENDIX III

MANAGEMENT DISCUSSION AND ANALYSIS OF JINKE PROPERTY

IV. Analysis of assets and liabilities

1. Material changes in asset items

Unit: RMB

	**End of **	2014		**End of **	2013
		Percentage			Percentage		Increase/
		in total			in total		decrease in	Description of
	Amount		assets	Amount		assets	percentage	material changes
Monetary fund	7,527,131,604.31		9.17%	6,364,503,639.90	10.20%		-1.03%
Accounts receivable	709,008,179.14		0.86%	210,514,538.67		0.34%	0.52%	It is primarily because
								of increase in house
								sales proceeds
								receivable
Inventories	62,262,559,625.16	75.87%		45,996,490,254.23	73.72%		2.15%	It is primarily because
								of increase in the
								number of development
								projects in the current
								period
Investment properties	2,905,436,061.00		3.54%	2,778,096,875.94		4.45%	-0.91%
Long-term equity	336,774,746.08		0.41%	804,998,882.41		1.29%	-0.88%	It is primarily because
investments								of disposal of equity of
								USUM Investment
								Group in the current
								period
Fixed assets	1,132,931,471.61		1.38%	542,938,144.86		0.87%	0.51%	It is primarily because
								of merger of Xinjiang
								Huaran Oriental not
								under the same control
								and completion of
								construction of Kaixian
								Hotel in the current
								period
Construction in	653,283,292.96		0.80%	3,861,892.25		0.01%	0.79%	It is primarily because
progress								of merger of Xinjiang
								Huaran Oriental not
								under the same control
								in the current period
Advance payments	796,701,986.10		0.97%	1,191,785,760.11		1.91%	-0.94%	It is primarily because
								the land expense paid
								in advance was
								converted into
								inventory
Other receivables	1,737,074,275.37		2.12%	1,823,074,182.38		2.92%	-0.80%

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APPENDIX III

MANAGEMENT DISCUSSION AND ANALYSIS OF JINKE PROPERTY

	**End of **	2014		**End of **	2013
		Percentage			Percentage		Increase/
		in total			in total		decrease in	Description of
	Amount		assets	Amount		assets	percentage	material changes
Other current assets	2,136,948,630.59		2.60%	1,579,795,621.08		2.53%	0.07%
Goodwill	591,144,730.77		0.72%	7,368,391.71		0.01%	0.71%	It is because the price
								for acquiring Xinjiang
								Huaran Oriental in the
								current period was
								larger than the
								identifiable net assets
								on the date of
								acquisition

1. Material changes in liability items

Unit: RMB

	2014	2014	2013	2013
		Percentage		Percentage	Increase/
		in total		in total	decrease in	Description of
	Amount	assets	Amount	assets	percentage	material changes
Short-term borrowings	2,206,670,000.00	2.69%	1,980,000,000.00	3.17%	-0.48%
Long-term borrowings	21,311,210,000.00	25.97%	12,660,654,672.00	20.29%	5.68%	It is primarily because
						of increase in long-term
						borrowings obtained in
						the current period
Accounts payable	7,174,548,574.62	8.74%	4,676,239,383.01	7.49%	1.25%	It is primarily because
						increase in the projects
						under construction led
						to increased project
						accounts payable in the
						current period
Advance receipts	22,430,623,471.25	27.33%	18,668,331,885.17	29.92%	-2.59%	It is primarily because
						the sales proceeds were
						larger than the advance
						receipts resulting from
						carry-over revenue
Non-current liabilities	8,831,319,600.00	10.76%	5,673,860,000.00	9.09%	1.67%	It is primarily because
maturing within one						of increase in the
year						long-term debts
						maturing within one
						year at the end of the
						current period

— 531 —

APPENDIX III

MANAGEMENT DISCUSSION AND ANALYSIS OF JINKE PROPERTY

3. Assets and liabilities measured at fair value

• Applicable □ Not Applicable

Unit: RMB

			Gains/losses		Provision for
			from change in	Cumulative	depreciation
		Amount at	fair value in	changes in fair	withdrawn in	Purchase	Sales	Amount at
		the beginning of	the current	value stated	the current	amount in the	amount in the	the end of
Item		the period	period	as equity	period	current period	current period	the period
Financial assets
1.	Financial assets measured	2,340,000.00	160,000.00				3,314,155.42
	at fair value through
	profit or loss (excluding
	derivative financial
	assets)
3.	Available-for-sale	22,705,783.60	-529,337.70				21,809,783.60
	financial assets
Subtotal of financial assets		25,045,783.60	-369,337.70				25,123,939.02
Investment properties		2,778,096,875.94	54,152,554.05	594,504,975.70				2,905,436,061.00
Total		2,803,142,659.54	53,783,216.35	594,504,975.70	0.00	0.00	25,123,939.02	2,905,436,061.00
Financial liabilities		0.00						0.00

Whether material changes appeared in the measurement attributes of the Company’s major assets in the reporting period

==> picture [116 x 11] intentionally omitted <==

1. Main overseas assets

□ Applicable � Not Applicable

V. Analysis of core competitiveness

After ten years of sustainable and steady development, the Company has become a large conglomerate of “real estate + new energy”, covering such industries as real estate development, integrated community service, hotel operation and management, landscaping, doors and windows, and decoration. The Company’s core competitiveness is mainly reflected in the following aspects:

• (1) It has set a clear strategic positioning in compliance with the market development. Over the years, the Company implemented such strategies as “622” regional development, focusing on city groups and industry grafting real estate and accurately grasped the market opportunities, so as to ensure the Company’s development. Given new normal of economy,

— 532 —

APPENDIX III

MANAGEMENT DISCUSSION AND ANALYSIS OF JINKE PROPERTY

• the Company will promote the “new real estate” strategy. First, the Company will energetically implement product innovation. It will provide personalized innovative products and improvement-oriented products, and use Internet and Internet of Things to improve smart home and vigorously promote new materials, new equipment and green technologies, so as to form new core competitiveness in the traditional residence area. Second, the Company will vigorously implement model innovation, vertically extend its role from a developer to a server and an operator, carry out the “integrated community service strategy”, extend residence and community business development as well as property management to “integrated community service” so as to meet the community residents’ living needs in an all-round way, implement “integrated industry operation” strategy, extend industry real estate development and industry real estate operation to “integrated industry operation”, in order to meet the all-dimensional requirements for R&D, production and operation and realize the development and operation mode of five in one and industry-city integration.

• (2) Substantial progress was made in industry upgrading and transformation. While ensuring sound development of its main business (real estate), the Company also acquired quality wind power generation projects via M&A. In the future, the Company will start with wind power and photovoltaic power generation, keep an eye on domestic and international markets, speed up layout of quality projects via acquisition and independent development, strive to achieve fast development of new energy business, and make new energy business a new profit growth driver of the enterprise, in order to form a new situation of synergetic development of two main businesses, namely, “new real estate + new energy”.

• (3) High-quality products and property service lead to high-profile reputation. The Company sticks to the development idea of “building good houses of China”, “building a human habitat dream” and “doing well in each detail”, and is dedicated to “high-quality products and property service”. Thanks to its devotion to and expertise in real estate development, the Company possesses four patents granted by the State Intellectual Property Office, namely, “original Chinese western-style houses”, “aerial courtyard”, “X+1 mezzanine residences” and villa-class western-style houses. The Company’s product design has reflected reasonal space, thorough details and strong humanization, and presented mature community residence idea, top-level landscaping ability, superb property service, and neighborhood culture full of humanities atmosphere, which improves the product quality and living experience in an all-round way. These are highly recognized by the market and customers and bring high reputations (such as “father of garden house” and “expert of Chinese housing products”) to the Company in the industry. As a result, the Company’s brand influence and value were greatly improved.

• (4) Remarkable effect was achieved in national layout. The Company is rooted in Chongqing, based on central and western China and develops into the whole country. Besides Chongqing, the Company has entered such markets as Beijing, Sichuan, Jiangsu, Hunan, Shaanxi, Shandong, Xinjiang, Yunnan and Guizhou, with nearly 70 projects under construction. At present, it plans to seek development in Tianjin, Henan, Anhui, etc.

— 533 —

APPENDIX III

MANAGEMENT DISCUSSION AND ANALYSIS OF JINKE PROPERTY

Nationwide layout helped reduce the Company’s dependency on particular regional markets and alleviate the possible risk brought by some sluggish regional market to the Company’s operation, and provided conditions for rapid growth of the Company’s scale in the buoyant market.

• (5) It has sufficient land reserves. The Company has always attached importance to land reserve. In the reporting period, the Company obtained 19 parcels of land for 17 projects via bid, auction and listing as well as equity acquisition, with 5.70 million m[2] of capacity buildable area increased. The Company saw some improvement in the maturity of the new project regions and rising percentage of projects in main urban area and suburbs near the main urban area. As at the end of the reporting period, the Company recorded a GFA under construction of nearly 11 million m[2] and buildable area of 17.5 million m[2] from land reserve, providing sufficient resources for future development.

VI. Investment analysis

1. External equity investment

• (1) External investment

�Applicable	□Not	Applicable
		External investment
Investment in the		Investment in the same
reporting period		period of the preceding year	Change
(RMB)		(RMB)
10,000,000.00		570,000,000.00	-98.25%
		Information about the investee
Company name		Major business	Percentage of the listed
			company’s equity in the
			investee’s equity
Yunnan Jinwanzhong	Real	Real estate development and	50.00%
Estate Development Co.,		operation, land development,
Ltd.		property management, general
		construction contract of
		municipal public works,
		professional contract of
		foundation and base works,
		general construction contract
		of housing construction
		projects

— 534 —

MANAGEMENT DISCUSSION AND ANALYSIS OF JINKE PROPERTY

APPENDIX III

(2) Equity held in the financial enterprise

□ Applicable � Not Applicable

The Company did not hold any equity in any financial enterprise in the reporting period.

• (3) Securities investment

□ Applicable � Not Applicable

The Company did not make any securities investment in the reporting period.

• (4) Equity held in other listed companies

• Applicable � Not Applicable

The Company did not hold any equity in other listed companies in the reporting period.

1. Entrusted financial management, derivatives investment and entrusted loan

2. (1) Entrusted financial management

3. Applicable □ Not Applicable

Unit: RMB’0,000

								Amount of			Amount of
								principal	Provision		actual
				Amount of			Method for	actually	withdrawn		gains/losses
		Is it a		entrusted			determination	recovered in	for		in the
	Connection	connected	Product	financial			of	the current	impairment	Anticipated	reporting
Name of entrustee	relationship	transaction	type	**management **	Start date	End date	remuneration	period	(if any)	income	period
CCB Principal Asset	Non-connected	No	Fund	2,100	23 December	2 January	Floating	2,100	None		80.98
Management Co., Ltd.	party				2012	2014	income
Agricultural Bank of China,	Non-connected	No	Fund	250	12 August	9 January	Floating	241.85	None		-8.15
Chongqing Xinhua Road	party				2010	2014	income
Sub-branch
Agricultural Bank of China,	Non-connected	No	Fund	100	4 August	9 January	Floating	89.36	None		-10.64
Chongqing Xinhua Road	party				2010	2014	income
Sub-branch
Total				2,450	—	—	—	2,431.21		0	62.19
Capital source of entrusted financial management										Self-owned capital
Total amount of overdue principal and income											0
Litigation involved (if applicable)											Not applicable

— 535 —

MANAGEMENT DISCUSSION AND ANALYSIS OF JINKE PROPERTY

APPENDIX III

(2) Derivatives investment

• Applicable � Not Applicable

The Company did not make any derivatives investment in the reporting period.

(3) Entrusted loan

□ Applicable � Not Applicable

The Company did not have any entrusted loan in the reporting period.

3 Use of raised funds

• Applicable □ Not Applicable

(1) General use of raised funds

� Applicable □ Not Applicable

Unit: RMB’0,000

Total amount of raised funds	217,233.28
Total amount of raised funds invested in the reporting period	89,185.21
Total amount of raised funds accumulatively invested	89,185.21
Total amount of raised funds with purpose changed in the reporting period	0
Accumulated total amount of raised funds with purpose changed	0
Percentage of accumulated total amount of raised funds with purpose
changed	0.00%

Description of general use of raised funds

• (I) Actual amount of raised funds and time when the raised funds arrived at the account

Upon approval by China Securities Regulatory Commission in Document Zheng Jian Xu Ke [2014] No. 987 and by Shenzhen Stock Exchange, the Company non-publicly issued 220 million RMB ordinary shares (A shares) to specific targets via its lead underwriter Essence Securities Co., Ltd. (hereinafter referred to as Essence Securities). The issuance price was RMB10.00 per share and RMB2,200 million was raised in total. After the underwriting fee and sponsorship fee of RMB26.2 million were deducted, the raised funds came to RMB2,173.8 million, which was remitted by the lead underwriter Essence Securities to the Company’s account for supervision of raised funds on 5 December 2014. Moreover, after deduction of increased external expenses of RMB1.4672 million directly relating to issuance of equity securities including accountant’s fee,

— 536 —

MANAGEMENT DISCUSSION AND ANALYSIS OF JINKE PROPERTY

APPENDIX III

lawyer’s fee and equity assessment fee, the net raised funds of the Company amounted to RMB2,172.3328 million this time. The abovementioned raised funds have been verified by Pan-China Certified Public Accountants (special general partnership), which has issued a Capital Verification Report (Tian Jian Yan No. 20148-57).

(II) Use and balance of raised funds

In 2014, the raised funds actually used by the Company amounted to RMB891.8521 million, including RMB795.3554 million used for temporary supplement of working capital. In 2014, the net amount of bank interest received after deduction of bank charges was RMB0.3476 million. The raised funds accumulatively used came to RMB891.8521 million and the net amount of bank interest accumulatively received after deduction of bank charges was RMB0.3476 million. As at 31 December 2014, the balance of raised funds was RMB485.4729 million (including net amount of bank interest accumulatively received after deduction of bank charges).

(2) Information about projects to be invested in with raised funds

� Applicable □ Not Applicable

Unit: RMB’0,000

								Date when			Whether
		Whether the	Total	Total	Amount	Accumulated	Investment	the projects	Benefits		material
		projects are	amount of	investment	invested	amount	progress as	reach the	achieved	Whether the	changes
Projects to be invested in		changed	raised	after	in the	invested as at	at the end of	intended	in the	anticipated	appear in
	and investment direction	(including	funds to	adjustment	reporting	the end of the	the period	condition	reporting	results are	project
	of over-raised funds	partial change)	be invested	(1)	period	period (2)	(3)＝(2)/(1)	for use	period	achieved	feasibility
Projects to be invested in
1.	Chongqing • Jinke	No	118,490.88	118,490.88	33,276.3	33,276.3	28.08%	31 December	0	Yes	No
	Kaizhou Wealth Center							2015
2.	Chongqing • Jinke	No	98,742.4	98,742.4	55,908.91	55,908.91	56.62%	31 August	0	Yes	No
	Jiangjin World City							2015
Subtotal of projects to be		—	217,233.28	217,233.28	89,185.21	89,185.21	—	—	0	—	—
	invested in
Investment direction of
	over-raised funds
Total		—	217,233.28	217,233.28	89,185.21	89,185.21	—	—	0	—	—

Failure to reach planned Not applicable progress or anticipated results and the reasons (specific project)

Description about material Not applicable changes in project feasibility

— 537 —

APPENDIX III

• Amount, purpose and use progress of the over-raised funds

• Change in place of implementation of projects invested in with raised funds

• Adjustment of method for implementation of projects invested in with raised funds

• Up-front cost and replacement of projects invested in with raised funds

MANAGEMENT DISCUSSION AND ANALYSIS OF JINKE PROPERTY

Not applicable

Not applicable

• Not applicable

Applicable

On 22 December 2014, the 13th meeting of the 9th board of directors of the Company deliberated and approved the Proposal on the Company’s Use of Raised Funds to Replace the Self-collected Funds Previously Invested in the Projects and the Company was approved to use the raised funds to replace the self-collected funds of RMB869.3974 million previously invested in the projects.

Pan-China Certified Public Accountants (special general partnership) conducted a special auditing on the investment of self-collected funds in the projects to be invested in with raised funds as at 30 November 2014, and issued a Verification Report on Up-front Investment of Self-collected Funds by Jinke Property Group Co., Ltd. in Projects to Be Invested with Raised Funds (Tian Jian Shen [2014] No. 8-217). The specific amount of self-collected funds originally invested by the Company in Chongqing • Jinke Kaizhou Wealth Center and Chongqing • Jinke Jiangjin World City as at 22 December 2014 is as follows:

		Amount of
		self-collected
SN	Project name	funds invested
		(unit: RMB’0,000)
1	Chongqing • Jinke Kaizhou	32,705.08
	Wealth Center
2	Chongqing • Jinke Jiangjin	54,234.66
	World City
Total		86,939.74

— 538 —

APPENDIX III

MANAGEMENT DISCUSSION AND ANALYSIS OF JINKE PROPERTY

On 23 December 2014, Chongqing Jinke Junyao Real Estate Development Co., Ltd. used the raised funds to replace the self-collected funds of RMB327.0508 million previously invested by the Company in Chongqing • Jinke Kaizhou Wealth Center. On 24 December 2014, Chongqing Jiangjin Jinke Guojun Real Estate Co., Ltd. used the raised funds to replace the self-collected funds of RMB542.3466 million previously invested by the Company in Chongqing • Jinke Jiangjin World City. As at 31 December 2014, the raised funds for replacement totaled RMB869.3974 million.

• Temporary supplement of working capital with idle raised funds

Applicable

Upon deliberation and approval by the 13th meeting of the 9th board of directors of the Company held on 22 December 2014, the Company was approved to use idle raised funds of not more than RMB800 million (inclusive) to temporarily supplement working capital for not more than 12 months. As at 31 December 2014, the raised funds used for temporary supplement of working capital totaled RMB795.3554 million.

• Amount of surplus raised funds in project implementation and the reasons

• Intended use and direction of raised funds unused

Not applicable

As at 31 December 2014, the Company had two special accounts for raised funds and the raised funds were deposited as follows (unit: RMB’0,000):

		Balance of
Issuing bank	Bank account No.	raised funds	Notes
Agricultural Bank of	1440801040003823	358,451,026.11	Used for the project
China Limited,			of Chongqing •
Chongqing Kaixian			Jinke Kaizhou
Ankang Sub-branch			Wealth Center
Business Department	742101018260045356	127,021,862.92	Used for the project
of Chongqing			of Chongqing •
Branch of China			Jinke Jiangjin World
CITIC Bank			City
Total		485,472,889.03

— 539 —

APPENDIX III

MANAGEMENT DISCUSSION AND ANALYSIS OF JINKE PROPERTY

Problems or other conditions in use and disclosure of raised funds

As Chongqing • Jinke Kaizhou Wealth Center and Chongqing • Jinke Jiangjin World City were developed and delivered houses by stages, the date when the projects reach the intended condition for use herein is the date when construction of the building is completed and which is the closest to the balance sheet date. As Chongqing • Jinke Kaizhou Wealth Center and Chongqing • Jinke Jiangjin World City were not completed in the current period, and have not reached the intended condition for use, no result was achieved in the current year.

• (3) Changes in use of raised funds

□ Applicable � Non-Applicable

There was no change in use of raised funds of the Company during the reporting period.

• (4) Analysis of major subsidiaries and shareholding companies

� Applicable □ Non-Applicable

Information about major subsidiaries and shareholding companies

Unit: RMB

			Main product	Registered			Operating	Operating
Company name	Company type	Industry	or services	capital	Total assets	Net assets	revenue	profit	Net profit
Chongqing Jinke Junyao Real	Subsidiary	Real estate	Real estate	200,000,000.00	5,427,861,592.26	2,242,196,787.76	1,053,898,726.50	460,027,947.44	396,877,154.00
Estate Development Co., Ltd.		development	development
Chongqing Jinke Industrial	Subsidiary	Real estate	Real estate	100,000,000.00	3,174,698,653.21	1,471,537,786.97	79,187,093.21	38,969,338.70	226,027,686.22
Group Kerun Real Estate		development	development
Development Co., Ltd.
Wuxi Jinke Jiarun Real Estate	Subsidiary	Real estate	Real estate	366,640,000.00	4,840,664,300.76	1,345,527,053.11	748,178,006.88	-501,835,343.26	-421,699,530.19
Development Co., Ltd.		development	development
Chongqing Jiangjin Jinke	Subsidiary	Real estate	Real estate	100,000,000.00	4,275,819,549.55	978,125,441.91	171,743.60	-30,458,280.49	-22,813,895.88
Guojun Real Estate Co., Ltd.		development	development
Jiangyin Jinke Real Estate	Subsidiary	Real estate	Real estate	150,000,000.00	1,632,123,500.64	802,788,725.92	528,596,948.42	115,503,524.56	85,468,842.85
Development Co., Ltd.		development	development
Chongqing Jinke Shangzun Real	Subsidiary	Real estate	Real estate	20,000,000.00	1,871,950,110.08	587,881,157.45	1,248,563,957.44	353,115,924.07	331,532,584.08
Estate Co., Ltd.		development	development
Chongqing Jinke Industrial	Subsidiary	Real estate	Real estate	21,748,895.00	1,062,344,211.10	527,905,481.31	36,322,144.50	64,103,839.72	128,907,864.69
Group Hongjing Real Estate		development	development
Development Co., Ltd.
Wuxi Jinke Kerun Real Estate	Subsidiary	Real estate	Real estate	588,240,000.00	1,150,015,894.70	515,511,359.00	262,960,622.18	-90,047,608.82	-96,996,194.17
Development Co., Ltd.		development	development

— 540 —

APPENDIX III

MANAGEMENT DISCUSSION AND ANALYSIS OF JINKE PROPERTY

			Main product	Registered			Operating	Operating
Company name	Company type	Industry	or services	capital	Total assets	Net assets	revenue	profit	Net profit
Chongqing Bishan Jinke	Subsidiary	Real estate	Real estate	30,000,000.00	2,354,175,154.63	380,656,250.34	922,733,802.00	124,321,376.77	100,813,358.46
Zhongxi Real Estate Co., Ltd.		development	development
Chongqing Qingke Trading Co.,	Subsidiary	Commercial	Commerce	200,000,000.00	8,307,578,437.18	271,322,710.76	1,813,827,877.94	39,049,988.00	37,825,864.41
Ltd.
Hunan Jinke Real Estate	Subsidiary	Real estate	Real estate	150,000,000.00	1,814,831,609.23	145,433,488.95	60,375,627.00	-77,177,096.04	-80,059,613.99
Development Co., Ltd.		development	development
Chongqing Jinke Real Estate	Subsidiary	Real estate	Real estate	20,000,000.00	5,188,133,382.14	96,080,516.74	1,149,383,454.02	136,482,642.30	110,596,622.53
Development Co., Ltd.		development	development
Chongqing Hechuan Jinke	Subsidiary	Real estate	Real estate	20,000,000.00	1,626,206,853.43	115,121,813.83	600,009,683.00	138,460,396.26	111,945,854.42
Hejun Real Estate Co., Ltd.		development	development
Chongqing Jinke Hexu Real	Subsidiary	Real estate	Real estate	100,000,000.00	1,528,426,466.54	584,966,618.53	73,675.40	-17,448,544.86	-13,198,265.87
Estate Development Co., Ltd.		development	development
Chongqing Jinke Zhongjun Real	Subsidiary	Real estate	Real estate	256,078,431.37	4,014,803,371.01	1,045,550,809.99	230,921.00	-26,694,836.23	-20,085,834.25
Estate Development Co., Ltd.		development	development
Jinan Jinke Xicheng Real Estate	Subsidiary	Real estate	Real estate	1,000,000,000.00	3,407,860,548.81	932,061,418.11	153,425.34	-50,115,821.33	-38,177,561.45
Development Co., Ltd.		development	development
USUM Investment Group Co.,	Shareholding	Investment and	Investment and	3,078,600,000.00	3,757,715,938.57	3,497,971,632.46	443,110,068.80	384,188,804.72	331,330,741.47
Ltd.	company	construction	construction
Chongqing Yinhai Finance	Shareholding	Financial	Finance	1,200,000,000.00	3,841,620,395.81	1,444,360,658.11	260,963,751.80	200,629,564.38	170,582,747.19
Leasing Co., Ltd.	company	industry

Information about major subsidiaries and shareholding companies Acquirement and disposal of subsidiaries during the reporting period

• Applicable □ Non-Applicable

Company name

• Purpose for acquiring Method of acquiring Effect on overall and disposing of and disposing of production & subsidiaries during subsidiaries during operation and the reporting period the reporting period business performance

• Tangshan Jinke Real Fail to acquire Estate Development expected projects Co., Ltd.

• Chongqing Jinke Hongrui Expand business scale Real Estate Development Co., Ltd.

• Chongqing Jinke Jinyu Expand business scale Real Estate Development Co., Ltd.

• Go through Has no significant cancellation formalities impact on the Company’s overall performance

• Being funded through No earnings has been investment carried forward at the early stage of the project development

• Being funded through No earnings has been investment carried forward at the early stage of the project development

— 541 —

APPENDIX III

MANAGEMENT DISCUSSION AND ANALYSIS OF JINKE PROPERTY

	Purpose for acquiring	Method of acquiring	Effect on overall
	and disposing of	and disposing of	production &
	subsidiaries during	subsidiaries during	operation and
Company name	the reporting period	the reporting period	business performance
Chongqing Jinke Yijia	Expand business scale	Being funded through	No earnings has been
Real Estate		investment	carried forward at the
Development Co., Ltd.			early stage of the
			project development
Chongqing Jinke Kunji	Expand business scale	Being funded through	No earnings has been
Real Estate		investment	carried forward at the
Development Co., Ltd.			early stage of the
			project development
Chengdu Jinke Zhuorui	Expand business scale	Being funded through	No earnings has been
Real Estate		investment	carried forward at the
Development Co., Ltd.			early stage of the
			project development
Beijing Jinke Zhanhao	Expand business scale	Being funded through	No earnings has been
Real Estate Co., Ltd.		investment	carried forward at the
			early stage of the
			project development
Chongqing Kangcheng	Expand business scale	Being funded through	Has no significant
International Travel		investment	impact on the
Agency Co., Ltd.			Company’s
			performance at the
			initial stage of
			business development
Chongqing Jinke Zhengtao	Expand business scale	Being funded through	No earnings has been
Real Estate		investment	carried forward at the
Development Co., Ltd.			early stage of the
			project development
Jinke Group Suzhou	Expand business scale	Being funded through	No earnings has been
Baijun Real Estate		investment	carried forward at the
Development Co., Ltd.			early stage of the
			project development
Jinke Industrial	Expand business scale	Being funded through	Has no significant
Investment Development		investment	impact on the
Company Limited			Company’s
			performance at the
			initial stage of
			business development

— 542 —

APPENDIX III

MANAGEMENT DISCUSSION AND ANALYSIS OF JINKE PROPERTY

	Purpose for acquiring	Method of acquiring	Effect on overall
	and disposing of	and disposing of	production &
	subsidiaries during	subsidiaries during	operation and
Company name	the reporting period	the reporting period	business performance
Jinke Cultural Tourism	Expand business scale	Being funded through	Has no significant
Investment &		investment	impact on the
Development Co., Ltd.			Company’s
			performance at the
			initial stage of
			business development
Chengdu Jinke Junfeng	Expand business scale	Being funded through	No earnings has been
Real Estate		investment	carried forward at the
Development Co., Ltd.			early stage of the
			project development
Chongqing Jinke Junkai	Expand business scale	Being funded through	No earnings has been
Real Estate		investment	carried forward at the
Development Co., Ltd.			early stage of the
			project development
Neijiang Jinke Liju Real	Expand business scale	Being funded through	No earnings has been
Estate Development		investment	carried forward at the
Co., Ltd.			early stage of the
			project development
Shandong Baijun Real	Expand business scale	Being funded through	No earnings has been
Estate Development		investment	carried forward at the
Co., Ltd.			early stage of the
			project development
Xinjiang Jinke Yukun Real	Expand business scale	Being funded through	No earnings has been
Estate Development		investment	carried forward at the
Co., Ltd.			early stage of the
			project development
Chongqing Guoguan	Expand business scale	Being funded through	Has no significant
Eco-agriculture		investment	impact on the
Development Co., Ltd.			Company’s
			performance at the
			initial stage of
			business development
Chongqing Huidian	Expand business scale	Being funded through	Has no significant
Business Management		investment	impact on the
Co., Ltd.			Company’s
			performance at the
			initial stage of
			business development

— 543 —

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MANAGEMENT DISCUSSION AND ANALYSIS OF JINKE PROPERTY

• Purpose for acquiring Method of acquiring Effect on overall and disposing of and disposing of production & subsidiaries during subsidiaries during operation and

• Company name the reporting period the reporting period business performance Chengdu Jinchen Real Expand business scale Being funded through No earnings has been Estate Development investment carried forward at the Co., Ltd. early stage of the project development

• Jinke New Energy Co., Expand business scale Being funded through Has no significant Ltd. investment impact on the Company’s performance at the initial stage of business development

• Tianjin Jinke Bozhi Real Expand business scale Being funded through No earnings has been Estate Co., Ltd. investment carried forward at the early stage of the project development

• Xinjiang Huaran Oriental Expand business scale Merger of enterprises Has no impact on the New Energy Co., Ltd. not under the same Company’s overall control performance

• Kumul Huaran Oriental Expand business scale Merger of enterprises Has no impact on the Jingxia Wind Power not under the same Company’s overall Generation Co., Ltd. control performance

• Yunan Jinke Xinhai Real Expand business scale Merger of enterprises No earnings has been Estate Co., Ltd. not under the same carried forward at the control early stage of the project development

• Information about major projects invested in with raised funds

• Applicable □ Non-Applicable

Unit: RMB’0,000

			Cumulative
			amount actually
	Planned	Amount	invested as at
	investment	invested in the	the end of the		Project
Item name	amount	reporting period	reporting period	Progress	earnings
Beijing • Jinke Napa House	486,191.00	27,931.45	397,185.21	Under construction	6,571.75
Beijing • Jinke Center	325,126.00	268,089.06	268,089.06	Under construction	—
Chongqing Jiangjin • Jinke	210,840.80	88,246.22	96,009.60	Under construction	—
Central Park

— 544 —

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MANAGEMENT DISCUSSION AND ANALYSIS OF JINKE PROPERTY

			Cumulative
			amount actually
	Planned	Amount	invested as at
	investment	invested in the	the end of the		Project
Item name	amount	reporting period	reporting period	Progress	earnings
Chongqing • Jinke Oriental	174,999.00	24,218.86	173,792.84	Under construction	12,810.80
Palace
Chongqing • Jinke World City	213,108.00	18,866.61	212,092.44	Under construction	19,717.72
Chongqing Rongchang • Jinke	429,228.00	33,580.31	170,998.36	Under construction	7,721.34
World City
Chongqing • Jinke Leijiaqiao	359,831.00	73,045.68	263,477.94	Under construction	210.94
Chengdu • Jinke Bridge	198,982.00	33,100.71	184,239.08	Under construction	7,876.97
Village
Chengdu • Jinke Nature City	127,700.00	20,578.41	118,546.91	Under construction	15,755.59
Chengdu • Jinke Oriental	150,000.00	40,220.74	40,220.74	Under construction	—
Elegance County
Chongqing Kaixian • Jinke	187,599.38	36,976.98	85,524.81	Under construction	—
Wealth Center
Chongqing Yongchuan • Jinke	150,000.00	48,855.71	48,855.71	Under construction	—
Park Palace
Xi’an • Jinke Nature City	226,414.56	27,395.12	98,376.22	Under construction	—
Chongqing Changshou • Jinke	494,499.00	50,252.83	133,524.71	Under construction	—
World City
Chongqing Beibei • Jinke	358,772.00	55,005.88	181,272.10	Under construction	—
City
Chongqing Fuling • Jinke	165,000.00	42,799.05	93,435.55	Under construction	—
Nature City
Jinan • Jinke World City	956,673.00	48,868.16	267,775.33	Under construction	—
Xiyong Tianchen (Phase II)	380,000.00	115,549.61	115,549.61	Early stage	—
Chongqing Nanchuan • Jinke	290,000.00	41,244.79	41,244.79	Under construction	—
World City
Chongqing • Xiyong Tianchen	465,800.00	108,176.31	178,840.32	Under construction	—
Chongqing • Jinke Konggang	190,000.00	23,017.16	23,017.16	Under construction	—
City
Xinjiang • Jinke Central Asia	197,737.00	4,583.49	12,986.56	Under construction	—
Household Appliances Expo
Park
Yunnan • Jinke Times Center	220,000.00	63,985.54	63,985.54	Early stage	—
Xianyang • Jinke World City	337,391.33	45,731.67	45,731.67	Under construction	—
Chongqing Changshou • Jinke	160,539.00	38,092.79	134,946.91	Under construction	10,014.65
Sunshine Town

— 545 —

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MANAGEMENT DISCUSSION AND ANALYSIS OF JINKE PROPERTY

			Cumulative
			amount actually
	Planned	Amount	invested as at
	investment	invested in the	the end of the		Project
Item name	amount	reporting period	reporting period	Progress	earnings
Chongqing Yunyang • Jinke	304,850.00	85,381.85	100,047.72	Under construction	—
World City
Chongqing Fuling • Jinke	246,593.00	65,001.71	86,098.48	Under construction	314.85
Central Park
Nantong • Bridge Waterfront	139,452.00	25,711.69	91,777.29	Under construction	7,128.92
Neijiang • Jinke Central Park	170,000.00	43,724.32	110,847.45	Under construction	10,225.32
Neijiang • New City Center	350,000.00	69,024.06	129,698.87	Under construction	—
Neijiang • Jinke Times Center	127,400.00	40,368.91	40,368.91	Under construction	—
Wuxi • Wealth Commercial	144,310.39	32,876.96	103,100.38	Under construction	—
Plaza
Qingdao • Jinke Sunshine	175,000.00	23,232.16	44,376.86	Early stage	—
Town
Chongqing Yongchuan • Jinke	154,244.00	6,496.15	143,925.45	Under construction	36,091.58
Central Park
Suzhou • Scene Mansion	370,598.00	42,678.57	300,967.10	Under construction	2,787.41
Suzhou • Nature Garden	158,618.00	37,662.97	111,542.92	Under construction	—
Chongqing Dazu • Jinke	240,392.00	43,297.49	109,322.41	Under construction	—
Central Park
Wuxi • Chengnan Aristocratic	515,579.11	32,813.88	438,085.85	Under construction	6,456.20
Family
Jiangyin • Oriental Mansion	187,048.01	17,265.84	177,841.61	Under construction	17,752.76
Zunyi • Jinke Central Park	255,744.00	19,969.65	36,425.90	Under construction	—
Wuxi • Milan Garden A	157,849.33	19,104.47	135,930.35	Under construction	1,413.74
Xinjiang • Jinke Bridge	219,615.00	33,384.89	43,112.42	Under construction	—
Village
Chongqing • Jinke Bridge	720,000.00	117,509.09	553,295.04	Under construction	55,500.38
Village
Beijing • Jinke Bridge Garden	258,077.00	21,555.08	235,452.12	Under construction	-1,606.42
Chongqing Yongchuan • Jinke	148,650.00	21,604.60	118,082.16	Under construction	19,721.92
Sunshine Town
Zhangjiagang • Bridge Court	187,276.00	49,063.76	125,602.36	Under construction	11,128.99
Chongqing Fengdou • Jinke	250,000.00	39,901.03	39,901.03	Under construction	—
Golden Coast
Chongqing • Jinke Times	387,420.00	40,125.67	168,705.23	Under construction	—
Center

— 546 —

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MANAGEMENT DISCUSSION AND ANALYSIS OF JINKE PROPERTY

			Cumulative
			amount actually
	Planned	Amount	invested as at
	investment	invested in the	the end of the		Project
Item name	amount	reporting period	reporting period	Progress	earnings
Chongqing • Jinke Sun Coast	200,000.00	10,189.19	152,632.77	Under construction	8,608.57
Chongqing Bishan • Jinke	306,011.00	57,665.83	199,814.12	Under construction	21,008.56
Central Park
Chongqing Fuling • Jinke	240,000.00	38,545.50	38,545.50	Early stage	—
Nanhu Project
Liuyang • Tianhu New City	175,338.00	21,940.96	100,434.21	Under construction	—
Changsha • Jinke World City	161,197.34	17,863.66	62,434.98	Under construction	—
Changsha • Jinke Center	229,411.00	47,268.07	104,089.54	Under construction	—
Changsha • Flourishing	209,369.40	13,803.76	187,168.27	Under construction	41.99
Oriental Courtyard
Total	14,846,473.65	2,513,444.91	7,739,346.47	—	277,254.53

VII. Estimated operating results for January-March 2015

The warning that the cumulative net profit from the beginning of the year to the end of the next reporting period may be negative or change significantly as compared with the same period last year and relevant reasons

□ Applicable � Non-Applicable

VIII. Information about special-purpose entities controlled by the Company

□ Applicable � Non-Applicable

IX. Future prospects of the Company

1. Industry development trends and development strategies of the Company

Against the background of continuous national economic growth, relatively low urbanization level and continuously increasing per capita disposable income, the real estate industry is still an important pillar industry in China. According to the development goal set out in the National New Urbanization Plan (2014-2020) promulgated by the state, urbanization rate of China’s resident population is expected to reach approximately 60% and that of registered population will reach approximately 45%, which means there is still great development potential for the real estate industry. The industry will see more development opportunities if our urbanization rate of resident population is to reach the 80% in developed countries.

— 547 —

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MANAGEMENT DISCUSSION AND ANALYSIS OF JINKE PROPERTY

Since the second half of 2014, the government launched a series of policies in favour of the real estate industry to encourage financial institutions to support households’ housing consumption, including “targeted RRR cuts” “five house loan policies of the Central Bank”, “9•30 New House Loan Policy”, and “reduction of interest and reserve ratio”, etc. In the meantime, various local governments have eased the home purchase restrictions to promote the gradual recovery of the real estate industry.

In its 2015 Work Report, the government proposed to stabilize housing consumption, give targeted guidance, implement policies suitable to local conditions, assign primary responsibility to local governments for the development of housing, support people’s demand for housing for personal use and second homes, and promote the stable and sound development of the real estate market. According to the report, the government set a relatively stable and positive tone for the real estate, which is a rare “warm wind” for the real estate market in recent years, indicating that policies for the real estate market will ease further in 2015. Recently, the Ministry of Land and Resources and the Ministry of Housing and Urban-Rural Development jointly issued the Circular on Optimizing the Housing and Land Supply Structure in 2015 to Promote the Stable and Healthy Development of the Real Estate Market , which mentioned again about supporting people’s demand for housing for personal use and second homes, and specified that the type of commodity housing under construction can be adjusted without changing the land usage and plot ratio, so as to help enterprises adjust housing types not adapting to the market demand in a timely manner. This not only means that the “90/70” policy, which has been implemented for nearly a decade, loosens formally, but also reflects the adjustments in housing structure and changes in “de-administration” regulations in recent years. The policy guidance in the Circular, e.g. differentiated land supply and adjustable usage of undeveloped land, will help destocking in areas under great pressure of destocking. It is expected that a series of policies aiming to boost the market will continue to be introduced to promote the smooth and healthy development of the real estate market.

From the perspective of demand, the sold GFA of commodity housing nationwide exceeded 1 billion square meters in recent years, and reached 1.2 billion square meters in 2014, showing that the demand was still strong, but investment growth inched down. The supply-demand of the real estate market will become balanced on the whole in about two years, which will be conducive to the long-term healthy development of the real estate industry. However, demand structure changes and personalized and improved demand will be more prominent.

New energy promises broad development potential. With the deterioration of global warming and China’s hazy weather, a consensus has been reached on increasing investment in clean and renewable energy. In recent years, many countries including China have introduced a series of policies supporting new energy development. The government in its 2015 Work Report urged to vigorously develop wind power and photovoltaic power generation, biomass energy and hydropower, safely develop nuclear power, and develop and utilize shale gas and coalbed methane.

— 548 —

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MANAGEMENT DISCUSSION AND ANALYSIS OF JINKE PROPERTY

As planned by relevant departments, by 2020 China’s total installed power generating capacity will reach 2.55 billion kW, 1.88 times that of the country’s total installed capacity (1.36 billion kW) by the end of 2014; at the same time the state will further optimize the energy structure; by 2020 the percentage of wind power generation is expected to reach 11% and installed capacity of wind-driven power will increase to 200 million kW from over 96 million kW in 2014; the percentage of photovoltaic power generation is expected to reach 5% and PV installed capacity will increase to 100 million kW from 28 million kW in 2014. According to the above situation analysis and judgment on industry development, the Company will give priority to both “new real estate + new energy” in the next period. With regard to new real estate, firstly, devote major efforts to developing innovative products, use personalized & innovative products and products adapting to changing demands to enhance smart home experience via the Internet and IoT technologies, vigorously promote the use of new materials, new equipment and green technologies, to build new core competitiveness; secondly, make vigorous efforts to promote model innovation, longitudinally make itself to be a developer, service provider or operator, implement the “strategy of integrated community services” by integrating residential and community business development and property management, so as to meet the overall demand of community residents, implement the “strategy of integrated industrial operations” by integrating the industrial real estate development and industrial real estate operations, so as to meet the overall demand in scientific research, production and operation, and achieve a five-in-one and city-industry integration development & operation mode.

With regard to new energy, implement the “strategy of developing wind power and photovoltaic power simultaneously”, focus on wind power and photovoltaic power generation, seek development opportunities in new fields such as solar-thermal (film) power generation, and achieve extraordinary development in new energy businesses via merger & acquisition and new establishment. Strive to raise the total installed capacity of wind power and photovoltaic power generation to 5GW, with total investment of about RMB40 billion in the next 3-5 years.

2. 2015 business plans

In 2015, the Company will further promote the industrial upgrading and transformation, continue to deepen the reform and innovation, consolidate the results of various reforms, adhere to the established management principles, and by focusing on comprehensively enhancing the Company’s management quality and efficiency, actually strengthen the sense of responsibility, intensify and improve execution, and actively adapt to the economic development and industry development under the new normal situation. The Company will also intensify destocking, improve turnover speed, reduce development cost, put forth effort to enhance the efficiency of operations in different areas, and complete various business objectives. The Company will further optimize and adjust the management model and organizational structure, implement the project co-investment scheme as soon as possible, effectively control investment risks; improve the Company’s long-effective incentive mechanism, and actively study equity incentive models suitable for the Company and put them into effect in time, so as to promote the fast, healthy and sustainable development of the Company.

— 549 —

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MANAGEMENT DISCUSSION AND ANALYSIS OF JINKE PROPERTY

(1) In respect of real estate business, the Company plans to log newly started GFA of about 5.6 million square meters, completed GFA of about 4.4 million square meters, and GFA under construction of about 12 million square meters by the end of the year.

Major planned real estate projects in 2015:

Unit: 0’000 m[2]

					Planned
					GFA under
			GFA to be	GFA to be	construction
			newly started	completed in	at the end
Region	Project name	Location	in 2015	2015	of 2015
Chongqing	Chongqing Hechuan •	Hechuan District	0.0	12.7	5.4
	Jinke World City
	Chongqing Hechuan •	Hechuan District	1.2	0.0	16.0
	Jinke Nature City
	Chongqing • Wansheng	Wansheng District	0.0	7.2	11.6
	Jinke China Health City
	Chongqing • Konggang	Yubei District	12.3	0.0	12.3
	New City
	Chongqing • Jinke Jiangjin	Jiangjin District	2.9	13.5	25.3
	World City
	Chongqing • Jinke Jiangjin	Jiangjin District	9.3	10.4	23.6
	Central Park
	Chongqing • Jinke Times	New North Zone	15.0	9.2	24.1
	Center
	Chongqing Beibei • Jinke	New North Zone	5.9	2.2	38.3
	World City
	Chongqing • Jinke Central	Nan’an District	0.0	21.9	6.7
	Imperial Garden
	Chongqing Bishan • Jinke	Bishan District	11.4	9.9	31.1
	Central Park
	Chongqing • Jinke Bridge	Shapingba District	3.2	45.6	33.4
	Village
	Chongqing • Jinke Xiyong	Shapingba District	24.7	0.0	49.6
	Tianchen
	Chongqing • Jinke Star	Dadukou District	18.5	0.0	18.5
	Chongqing • Jinke Central	Nan’an District	6.3	0.0	10.5
	Washington
	Chongqing Nanchuan •	Nanchuan District	12.6	0.0	25.1
	Jinke World City

— 550 —

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MANAGEMENT DISCUSSION AND ANALYSIS OF JINKE PROPERTY

					Planned
					GFA under
			GFA to be	GFA to be	construction
			newly started	completed in	at the end
Region	Project name	Location	in 2015	2015	of 2015
	Chongqing Fuling • Jinke	Fuling District	2.2	14.5	2.6
	Nature City
	Chongqing Changshou •	Fuling District	0.0	28.0	0.0
	Sunshine Town
	Chongqing Changshou •	Fuling District	14.3	0.0	27.8
	World City
	Chongqing Fuling • Jinke	Fuling District	0.0	15.0	0.9
	Central Park
	Chongqing Fengdu • Jinke	Fengdu County	20.1	0.0	33.2
	Golden Coast
	Chongqing Fuling • Nanhu	Fuling District	11.0	0.0	11.0
	Project
	Chongqing Yongchuan •	Yongchuan District	2.9	10.5	7.9
	Jinke Sunshine Town
	Chongqing Yongchuan •	Yongchuan District	10.8	0.0	17.6
	Jinke Park Palace
	Chongqing Rongchang •	Rongchang County	10.9	6.5	20.8
	Jinke World City
	Chongqing Dazu • Jinke	Dazu County	8.9	13.3	28.8
	Central Park
	Chongqing Kaixian • Jinke	Kaixian County	0.2	23.9	10.7
	Kaizhou City
	Chongqing Kaixian • Jinke	Kaixian County	0.0	32.1	18.7
	Wealth Center
	Chongqing Yunyang •	Yunyang County	30.4	0.0	68.6
	Jinke World City
	Zunyi • Jinke Central Park	Zunyi City	21.2	0.0	37.4
Jiangsu	Wuxi • Milan Garden	Wuxi New District	0.0	7.9	5.1
	Wuxi • Chengnan	Nanchang District	9.2	3.0	35.3
	Aristocratic Family
	Wuxi • Wealth	Wuxi New District	15.2	10.1	22.0
	Commercial Plaza
	Jiangyin • Oriental Palace	Jiangyin City	0.0	7.4	0.0
	Zhangjiagang • Bridge	Jiangyin City	0.0	6.5	14.1
	Impression

— 551 —

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MANAGEMENT DISCUSSION AND ANALYSIS OF JINKE PROPERTY

					Planned
					GFA under
			GFA to be	GFA to be	construction
			newly started	completed in	at the end
Region	Project name	Location	in 2015	2015	of 2015
	Zhangjiagang • Bridge	Jiangyin City	0.0	4.4	4.7
	Mansion
	Jiangsu Rugao • Jinke	Rugao City	0.0	11.9	1.4
	World City
	Suzhou • Scene Mansion	Suzhou City	0.0	10.3	13.7
	Suzhou • Nature Garden	Suzhou City	3.9	14.2	10.8
	Suzhou • Jinke World	Suzhou City	10.5	0.0	16.5
	View
	Nantong • Bridge	Nantong City	0.0	4.0	4.7
	Waterfront
Sichuan	Chengdu • Jinke Bridge	Xinjin County	1.6	0.2	8.7
	Village
	Chengdu • Jinke Center	Chenghua District	0.0	16.0	9.5
	Chengdu • Jinke Oriental	Damian Town,	15.5	0.0	19.8
	Elegance County	Longquanyi
		District
	Chengdu • Simaqiao	Simaqiao Street	12.4	0.0	12.4
	Project
	Chengdu • Yinhuang	Wuhou District	7.2	0.0	7.2
	Project
	Neijiang • Jinke Times	Neijiang City	10.5	0.0	23.4
	Center
	Neijiang • Jinke Park	Neijiang City	6.2	0.0	22.1
	Palace
	Neijiang • Jinke Central	Neijiang City	0.2	12.5	15.4
	Park
Beijing	Beijing • Jinke Napa	Changing District	0.0	1.3	11.0
	House
	Beijing • Jinke Bridge	Changing District	0.0	6.6	0.0
	Garden
	Beijing • Jinke Center	Daxing District	14.2	0.0	24.2
Hunan	Changsha • Flourishing	Yuelu District	0.0	6.8	2.1
	Oriental Courtyard
	Liuyang • Tianhu New	Liuyang City	0.0	7.4	2.3
	City

— 552 —

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MANAGEMENT DISCUSSION AND ANALYSIS OF JINKE PROPERTY

					Planned
					GFA under
			GFA to be	GFA to be	construction
			newly started	completed in	at the end
Region	Project name	Location	in 2015	2015	of 2015
	Changsha • Jinke World	Yuelu District	5.6	5.2	9.6
	City
	Changsha • Jinke Center	Changsha County	0.0	18.0	7.8
	Chenzhou • Jinke City	Chenzhou City	7.8	1.0	22.7
	Chenzhou • Nanling	Chenzhou City	0.0	1.0	2.2
	Eco-city “By the Water
	Side”
Shandong	Jinan • Jinke World City	Jinan City	36.2	8.0	53.0
	Qingdao • Jinke Sunshine	Qingdao City	7.3	0.0	12.3
	Town
	Qingdao • Ruichang Road	Qingdao City	20.8	0.0	20.8
	Zhuanqi Project
Xinjiang	Bridge Village	Wujiaqu City	8.8	3.4	32.3
	Mechanical & Electrical	Wujiaqu City	0.0	0.0	6.8
	Products Exhibition Hall
	Project
	Central Asia Mechanical &	Wujiaqu City	21.3	0.0	26.2
	Electrical Products Expo
	Center
Shaanxi	Xi’an • Jinke Nature City	Xi’an City	17.2	0.0	24.1
	World City	Xianyang City	9.2	0.0	9.2
Yunnan	Kunming • Jinke Times	Kunming City	30.0	0.0	30.0
	Center

In respect of project development, the Company will, following the “622” development strategy, stick to the principle of “focusing on second-tier cities and selectively expanding into first-tier and third-tier cities” and “focusing on central and western areas and selectively expanding into other areas”, gradually shifting the emphasis to projects with steady cash flow in capital cities and key second-tier and third-tier cities. The Company will make greater efforts to develop real estate projects in relation to high-tech industry park, culture & tourism and health industry. In the whole year the Company plans to log about RMB12 billion of land investment and about 5-6 million square meters of new capacity buildable area.

In respect of marketing, the Company will deepen sales terminal reform, keep the pace of marketing in rational control, integrate marketing resources, plan ahead key marketing nodes, gather together sales resources, increase incentives, reduce inefficient investment, balance sales of

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MANAGEMENT DISCUSSION AND ANALYSIS OF JINKE PROPERTY

residential and commercial real estate projects, leverage the large scale of residential real estate project sales and the high profit of commercial real estate project sales, and pay special attention to sales of commercial real estate projects. The contracted sales amount of the Company is expected to exceed RMB30 billion (including non-real estate sector).

In respect of financing, the Company will maintain good strategic cooperation with major state-owned banks, create a better credit receiving environment, keep financing costs under strict control, vigorously optimize the financing structure, strive to work out new financing channels, and make full use of the financing function of the capital market to realize diversified financing and cut down financing costs. The Company will continue sticking to structural financing and balance financing nodes with sales nodes in the principle of profitability to increase the efficiency of fund use.

In respect of product, the Company will keep placing emphasis on R&D positioning and design, establish clear product strategies, improve the core competitiveness of its products, increase positioning quality and value, intensify efforts in innovation and R&D of marketable products, increase the pace and quality of product design, continue to promote standardization of products, enhance smart home experience with the Internet and IOT technologies, vigorously promote the use of new materials, new equipment and green technologies, and build new core competitiveness in the traditional residential real estate business.

(2) In respect of new energy, first, the Company will, starting from wind power and photovoltaic power generation, pay close attention to changes in domestic and international markets and quicken the pace of quality project layout by means of acquisition and self development; second, launch new energy merger & acquisition financing and project operation financing, enhance coordination with various financial institutions in terms of financing, make sure bank loans and funds raised from nonbank institutions are extended as scheduled, and plan ahead direct financing in the capital market; third, enhance operational management to stabilize the capacity and price of grid-connected power generation; four, bring in senior professionals in the industry and formulate scientific team incentive policies to build the most competitive management team in the industry.

3. Capital guarantee measures of the Company

Since real estate and new energy industries are both capital-intensive industries, the Company has been attaching great importance to capital guarantee. The Company will continue maintaining a good relationship with banks and other financial institutions so as to obtain enough development loans and other funds necessary for its operation and development. Meanwhile, it will, giving full play to the capital market, keep promoting the issuance of corporate bonds, launch a new round of refinancing in due time, pay close attention to preferred shares related policies, and keep creating new financing channels.

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MANAGEMENT DISCUSSION AND ANALYSIS OF JINKE PROPERTY

APPENDIX III

4. Analysis on risks faced by the Company

(1) Policy risks

In recent years, the state has introduced a series of regulatory policies to guide and promote the sustainable, stable and healthy development of the real estate industry. Although relevant regulatory policies have signs of warming this year, they still have a direct impact on the operation and development of real estate development enterprises. If the Company cannot adapt to the changes in state policies, they may have a negative impact on the operation and development of the Company. Meanwhile, China’s leaps and bounds in wind power generation development in recent years is largely attributable to support from the state for the renewable energy industry, especially for wind power industry in respect of policies, laws and regulations and incentives. That is to say, any change in the said state policies in favor of wind power industry in the future may have an adverse effect on the operating results of the Company.

(2) Management risks

As a large real estate development enterprise, the Company has formed mature systems for the development, operation and management of real estate projects and cultivated a high-quality business team. The Company is in the fast-growing period with business scale expanding continuously, which puts forward higher requirements for its management capacity. If the Company’s human resource guarantee, risk control, project management, project development and capital chain control cannot meet the requirements of business expansion, the Company will face some management risk. Besides, as a real estate company which has just stepped in the new energy industry, the Company lacks relevant talent and management experience. If the Company fails to meet the needs of new business development in terms of human resource guarantee, risk control, project management, etc. and the professional team of the acquired project does not agree with the Company’s corporate culture, the Company will face some management risk.

(3) Market risk

In response to surging housing and land prices and the craze for speculative house purchasing in some cities in recent years, the government introduced a series of regulatory measures. Though this year saw an ease in these policies, fast rises in land, financing and labor costs may lead to longer development cycles and higher development cost. That is, the Company will face the risk of profit decline brought by market factors in the future.

(4) Financial risk

Since the development cycle of real estate projects is relatively long and large sums of investment is put in land purchase and earlier-stage works, the speed of capital turnover of real estate projects is relatively low. The Company has expanded quickly in recent years, with substantial investment placed in project development. With the expansion of business scale, there will be continuous demands for funds in subsequent development. If fluctuations in the real estate market have a negative impact on the Company’s recovery of sales proceeds, the Company may face the risk of insufficient cash flow resulting from a low turnover rate.

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MANAGEMENT DISCUSSION AND ANALYSIS OF JINKE PROPERTY

5. Coping strategies of the Company

The Company will pay close attention to policy changes and market trends, have in-depth analysis on macroeconomic policies and the market, and adapt itself to the “new normal” economy. The Company will unswervingly deepen the reform in an all-round way, quicken the pace of industrial upgrading, and promote standardization of products.

The Company will, based on policy trends and market conditions, further increase the Company’s core competitiveness in real estate and new energy businesses through rational investment, precise positioning, optimization of structured products and diversification of product line. The Company will implement comprehensive budget management to control costs, speed up recovering sales proceeds and diversify financing channels to ensure rational fund allocation, improve project operation and management level in an all-round way to reduce business risks, enhance risk control over material investment projects, further optimize the incentive mechanism, deepen the marketing system reform to ensure increase in both business scale and profit, increase the turnover rate of projects, and quicken the pace on the way toward becoming a larger and stronger player in the industry. In 2015 the Company will simultaneously take various measures to accomplish all tasks and goals of the year.

— 556 —

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MANAGEMENT DISCUSSION AND ANALYSIS OF JINKE PROPERTY

								Disclosure	index		Not applicable									Not applicable
								Date of	disclosure		Not applicable									Not applicable
					Connected	relation	with the	counterparty	(if applicable)		Not applicable									Not applicable
			Proportion of	net profit	brought by the	assets to the	listed company Is it a	in total net connected	profit transaction		-0.12% No									0.04% No
						Effect	on the	Company’s	gains/losses		-103.51									-38.52
						Effect	on the	Company’s	operation		No material	effect								No material	effect
V. Asset transactions	1. Acquisition of assets	�Applicable □Not Applicable					Acquired or	Counterparty or purchased Transaction	ultimate controller assets price Progress	(RMB’0,000)	Shaanxi Tongzhi Real 51% equity of 10,200 All assets	Estate Development Shaanxi involved have	Co., Ltd., Chang’an Jinrunda Real been	International Trust Estate transferred	Co., Ltd. Development ownership,	Co., Ltd. without transfer	of creditor’s	rights and	debts	Kunming Yisenying 1% equity of 20 All assets	Trade Co., Ltd. Yunnan Jinke involved have	Xinhaihui Real been	Estate Co., Ltd. transferred	ownership,	without transfer	of creditor’s	rights and	debts

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MANAGEMENT DISCUSSION AND ANALYSIS OF JINKE PROPERTY

					Disclosure	index		Not applicable									Not applicable									Not applicable
					Date of	disclosure		Not applicable									Not applicable									Not applicable
		Connected	relation	with the	counterparty	(if applicable)		Not applicable									Not applicable									Not applicable
Proportion of	net profit	brought by the	assets to the	listed company Is it a	in total net connected	profit transaction		0.00% No									0.00% No									0.00% No
			Effect	on the	Company’s	gains/losses		0									0									0
			Effect	on the	Company’s	operation		No material	effect								No material	effect								No material	effect
					Transaction	price Progress	(RMB’0,000)	51,181.54 All assets	involved have	been	transferred	ownership,	without transfer	of creditor’s	rights and	debts	200 All assets	involved have	been	transferred	ownership,	without transfer	of creditor’s	rights and	debts	24,000 All assets	involved have	been	transferred	ownership,	without transfer	of creditor’s	rights and	debts
				Acquired or	purchased	assets		44.44% equity	of Chongqing	Jinke Junyao	Real Estate	Development	Co., Ltd.				10% equity of	Shaanxi	Haoyuefu Real	Estate	Development	Co., Ltd.				44.44% equity	of Chongqing	Bishan Jinke	Zhongxi Real	Estate Co., Ltd.
					Counterparty or	ultimate controller		Chongqing Jiayun	Investment Co.,	Ltd.							Liu Wangtang, Wang	Wenming								Chongqing Jiayun	Investment Co.,	Ltd.

— 558 —

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MANAGEMENT DISCUSSION AND ANALYSIS OF JINKE PROPERTY

					Disclosure	index		www.cninfo.com.cn	Announcement	No.: 2014-148
					Date of	disclosure		23 December	2014
		Connected	relation	with the	counterparty	(if applicable)		Not applicable
Proportion of	net profit	brought by the	assets to the	listed company Is it a	in total net connected	profit transaction		0.00% No
			Effect	on the	Company’s	gains/losses		0
			Effect	on the	Company’s	operation		No material	effect
					Transaction	price Progress	(RMB’0,000)	70,000 All assets	involved have	been	transferred	ownership,	without transfer	of creditor’s	rights and	debts
				Acquired or	purchased	assets		100% equity of	Xinjiang	Huaran	Oriental New	Energy Co.,	Ltd.
					Counterparty or	ultimate controller		Xinjiang China	Merchants Kunlun	Capital Investment	Joint Venture	(limited	partnership),	Xinjiang Yiyuan	Zhonghui Capital	Investment Joint	Venture (limited	partnership)

— 559 —

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MANAGEMENT DISCUSSION AND ANALYSIS OF JINKE PROPERTY

											Disclosure	index		Not	applicable
											Date of	disclosure		Not	applicable
						Have all	creditor’s	rights and	debts	involved	been	transferred		Not	applicable
							Have all	assets	involved	been	transferred	ownership		Yes
							Connected	relation	with the	counterparty	(if	applicable)		Not	applicable
�Applicable □Not Applicable	Net profit	brought by	the assets Proportion	to the of net	listed profit	company brought by	from the the selling	beginning Effect of to the	of this the selling listed Pricing	period to on the company principle Is it a	Target Trading Transaction the trading Company in total net of assets connected	Counterparty assets day price day (Note 3) profit selling transaction	(RMB’0,000) (RMB’0,000)	Lonein 14.968% 2 April 50,343.23 1,000.38 No material 1.16% Negotiated No	Holdings equity of 2014 effect pricing	Co., Ltd. USUM	Investment	Group Co.,	Ltd.	3. Merger of enterprises	�Applicable □Not Applicable	See the financial report and the consolidated financial statements for details.

— 560 —

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MANAGEMENT DISCUSSION AND ANALYSIS OF JINKE PROPERTY

VIII. Important contracts and performance thereof

2. Guarantee

� Applicable □ Not Applicable

Unit: RMB’0,000

Guarantee among subsidiaries (excluding the Company’s guarantee to its subsidiaries)

			Date of actual					Whether the
	Date of disclosure		occurrence				Whether the	guarantee is
	of announcements		(date when the	Actual			guarantee is	provided to
Name of the	concerning	Guarantee	agreement is	guarantee	Guarantee	Guarantee	fulfilled or	a connected
guarantee target	guarantee limit	limit	signed)	amount	type	period	not	party or not
Fuling Kerun	28 October 2011	19,000	28 October 2011	19,000	Joint liability	5 years	No	No
					guarantee
Jinke Changjin	22 May 2012	10,700	1 October 2012	1,590	Mortgage	3 years	No	No
Jinke Guojun	23 September 2013	8,000	20 November 2013	3,000	Mortgage	1.5 years	No	No
Hunan Liangxing	23 September 2013	17,000	24 September	17,000	Mortgage	2 years	No	No
			2013
Jinke Huiyi	27 September 2013	20,000	25 February 2014	20,000	Mortgage	2 years	No	No
Jinke Property Group	1 May 2014	50,000	1 May 2014	50,000	Mortgage	2 years	No	No
Jinke Tuhong	27 September 2013	12,000	23 January 2014	12,000	Mortgage	29 months	No	No
Jinke Tuhong	27 September 2013	18,000	23 January 2014	18,000	Mortgage	22 months	No	No
Jinke Zhongjun	27 September 2013	49,000	4 January 2014	49,000	Mortgage	2 years	No	No
Jinke Property Group	26 March 2014	30,000	26 March 2014	24,065	Mortgage	5 years	No	No
Wujiaqu Jinke	27 September 2013	5,900	17 July 2014	5,900	Mortgage	3 years	No	No
Jinke Guojun	27 September 2013	30,000	18 March 2014	30,000	Mortgage	3 years	No	No
Neijiang Jinke Baijun	14 May 2014	17,750	15 September	17,750	Mortgage	2 years	No	No
			2014
Total limit of external guarantee approved in the			97,750	Total amount of external		91,815
reporting period (A1)				guarantee actually
				provided in the reporting
					period (A2)
Total limit of external guarantee approved as at			287,350	Total balance of external		267,305
the end of the reporting	period (A3)			guarantee actually
				provided as at the end of
				the reporting period (A4)

— 561 —

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MANAGEMENT DISCUSSION AND ANALYSIS OF JINKE PROPERTY

		**The **	Company’s guarantee to its subsidiaries	Company’s guarantee to its subsidiaries	Company’s guarantee to its subsidiaries
			Date of actual					Whether the
	Date of disclosure		occurrence				Whether the	guarantee is
	of announcements		(date when the	Actual			guarantee is	provided to
Name of the	concerning	Guarantee	agreement is	guarantee	Guarantee	Guarantee	fulfilled or	a connected
guarantee target	guarantee limit	limit	signed)	amount	type	period	not	party or not
Hunan Company	22 May 2012	25,000	5 September 2012	19,000	Joint liability	3 years	No	No
					guarantee
Jinke Zhongxi	22 May 2012	15,500	1 October 2012	15,500	Mortgage	3 years	No	No
Jinke Shangzun	22 May 2012	25,000	1 October 2012	12,680	Mortgage	3 years	No	No
Chongqing Bozhan	28 January 2013	50,000	6 February 2013	50,000	Joint liability	2 years	No	No
					guarantee
Chongqing Chenju	28 January 2013	20,000	28 February 2013	14,000	Joint liability	2 years	No	No
					guarantee
Jinke Baijun	28 January 2013	45,000	26 February 2013	45,000	Joint liability	2 years	No	No
					guarantee
Chongqing Chenju	28 January 2013	19,000	26 March 2013	7,600	Mortgage	3 years	No	No
Liuyang Jinke Real Estate	28 January 2013	20,000	28 March 2013	16,500	Joint liability	2.5 years	No	No
					guarantee
Jiangyin Real Estate	28 January 2013	30,000	26 April 2013	7,400	Joint liability	2 years	No	No
					guarantee
Beijing Napa	28 January 2013	160,000	16 April 2013	96,000	Joint liability	2 years	No	No
					guarantee
Chongqing Chenju	28 January 2013	2,200	2 May 2013	2,200	Mortgage	3 years	No	No
Fuling Kerun	4 May 2013	35,000	27 May 2013	33,000	Joint liability	2.5 years	No	No
					guarantee
Chongqing Chenju	4 May 2013	21,180	31 May 2013	5,500	Joint liability	2 years	No	No
					guarantee
Chongqing Xingju	4 May 2013	14,000	27 June 2013	12,000	Mortgage	2.5 years	No	No
Chongqing Chenju	4 May 2013	32,500	26 July 2013	30,000	Joint liability	3 years	No	No
					guarantee
Chengdu Jinke	4 May 2013	64,000	19 July 2013	62,000	Joint liability	3 years	No	No
					guarantee
Chenzhou Xiaobu	4 May 2013	10,000	2 July 2013	7,760	Joint liability	3 years	No	No
					guarantee
Suzhou Jinke	4 May 2013	40,000	19 July 2013	39,980	Joint liability	2 years	No	No
					guarantee
Chengdu Shuangyi	4 May 2013	95,000	13 August 2013	85,000	Joint liability	2 years	No	No
					guarantee
Chongqing Chenju	4 May 2013	27,800	2 September 2013	26,000	Mortgage	3 years	No	No

— 562 —

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MANAGEMENT DISCUSSION AND ANALYSIS OF JINKE PROPERTY

		**The **	Company’s guarantee to its subsidiaries	Company’s guarantee to its subsidiaries	Company’s guarantee to its subsidiaries
			Date of actual					Whether the
	Date of disclosure		occurrence				Whether the	guarantee is
	of announcements		(date when the	Actual			guarantee is	provided to
Name of the	concerning	Guarantee	agreement is	guarantee	Guarantee	Guarantee	fulfilled or	a connected
guarantee target	guarantee limit	limit	signed)	amount	type	period	not	**party **	or not
Suzhou Kerun	4 May 2013	21,400	18 September	21,400	Joint liability	3 years	No	No
			2013		guarantee
Jinke Bailexing	4 May 2013	10,000	6 September 2013	10,000	Joint liability	3 years	No	No
					guarantee
Zhangjiagang Jinke	4 May 2013	60,000	5 September 2013	58,000	Joint liability	3 years	No	No
Ruifeng					guarantee
Jiangsu Rugao	27 September 2013	35,000	21 November 2013	35,000	Joint liability	3 years	No	No
					guarantee
Zhangjiagang Jinke Real	27 September 2013	23,900	18 December 2013	23,900	Joint liability	3 years	No	No
Estate					guarantee
Suzhou Kerun	27 September 2013	45,000	24 March 2014	44,750	Joint liability	27 months	No	No
					guarantee
Wujiaqu Jinke	27 September 2013	14,900	18 March 2014	14,900	Joint liability	3 years	No	No
					guarantee
Jinke Guojun	27 September 2013	22,000	30 March 2014	22,000	Mortgage	2.5 years	No	No
Jinke Tuhong	14 May 2014	20,000	17 June 2014	20,000	Joint liability	25 months	No	No
					guarantee
Changsha Jinke	3 July 2014	30,000	25 June 2014	30,000	Joint liability	2 years	No	No
					guarantee
Beijing Zhanhao	16 September 2014	180,000	29 August 2014	130,000	Joint liability	12 months	No	No
					guarantee	and 24
						months
Jinke Huimao	14 May 2014	9,000	27 June 2014	6,140	Joint liability	2 years	No	No
					guarantee
Yunnan Jinke Xinhaihui	3 July 2014	78,000	21 July 2014	73,130	Joint liability	2 years	No	No
					guarantee
Jinan Jinke	3 July 2014	40,000	18 July 2014	40,000	Joint liability	2 years	No	No
					guarantee
Wuxi Jiarun	16 May 2014	89,000	21 November 2014	89,000	Joint liability	2.5 years	No	No
					guarantee
Suzhou Baijun	30 October 2014	60,000	20 November 2014	41,500	Joint liability	35 months	No	No
					guarantee
Total limit of guarantee to subsidiaries approved			506,000	Total amount of guarantee					429,770
in the reporting period (B1)				actually provided to
				subsidiaries in the
				reporting period (B2)

— 563 —

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MANAGEMENT DISCUSSION AND ANALYSIS OF JINKE PROPERTY

	The Company’s guarantee to its subsidiaries	The Company’s guarantee to its subsidiaries	The Company’s guarantee to its subsidiaries	The Company’s guarantee to its subsidiaries	The Company’s guarantee to its subsidiaries	The Company’s guarantee to its subsidiaries
		Date of actual							Whether the
Date of disclosure		occurrence						Whether the	guarantee is
of announcements		(date when the			Actual			guarantee is	provided to
Name of the concerning	Guarantee	**agreement **		is	guarantee	Guarantee	Guarantee	fulfilled or	a connected
guarantee target guarantee limit	limit	signed)			amount	type	period	not	party or not
Total limit of guarantee to subsidiaries approved			1,489,380		Total balance of guarantee				1,246,840
as at the end of the reporting period (B3)					actually provided to
					subsidiaries as at the end
					of the reporting period
						(B4)
Total guarantee amount of the Company (namely,	the sum of the top two)
Total guarantee limit approved in the reporting				603,750	Total amount of guarantee				521,585
period (A1+B1)					actually	provided in the
					reporting	period (A2+B2)
Total guarantee limit approved as at the end of			1,776,730		Total balance of guarantee				1,514,145
the reporting period (A3+B3)					actually provided as at
					the end	of the reporting
						period (A4+B4)
Percentage of total amount of guarantee actually	provided (namely, A4+B4)			in the					143.79%
net assets of the Company
Including:
Amount of guarantee provided to shareholders, effective controllers and their										0
connected parties (C)
Amount of debt guarantee directly or indirectly provided to the		guarantee	targets						1,514,145
whose asset-liability ratio exceeds 70% (D)
Amount of the surplus part of the total guarantee	amount exceeding 50%		of	net						0
assets (E)
Total amount of the abovementioned three guarantees (C+D+E)									1,514,145

Note:

During the reporting period, the Company and its holding subsidiaries did not provide guarantee to a third party other than those listed in the consolidated statements, or provide guarantee to the controlling shareholders, effective controllers and their connected parties, or have delayed or lawsuit-bound guarantee.

(1) Illegal external guarantees

□ Applicable � Not Applicable

The Company had no illegal external guarantee in the reporting period.

— 564 —

MANAGEMENT DISCUSSION AND ANALYSIS OF JINKE PROPERTY

APPENDIX III

3. Other important contracts

• Applicable � Not Applicable

The Company had no other important contracts in the reporting period.

4. Other important transactions

□ Applicable � Not Applicable

The Company had no other important transactions in the reporting period.

XIV. Other important events

� Applicable □ Not Applicable

(2) Medium-term notes

To improve the Company’s debt financing structure, reduce financial costs and promote sustainable and stable development of the Company, upon deliberation and approval by the 8th meeting of the 9th Board of Directors of the Company and the 9th extraordinary general meeting 2014, the Company applied for registration and issuance of medium-term notes of not more than RMB3.9 billion (inclusive) in the national interbank bond market. On 31 October 2014, the Company submitted relevant application documents concerning issuance of the medium-term notes to the National Association of Financial Market Institutional Investors. Currently relevant work is proceeding as planned.

(For details, refer to the relevant announcements published by the Company on 14 October 2014 on the media (such as www.cninfo.com.cn and China Securities Journal ) designated by the Company for information disclosure.)

(3) Recovery of creditor’s rights from associated companies

The Company’s wholly-owned subsidiary Jiangyin Jinke Real Estate Development Co., Ltd. (hereinafter referred to as “Jiangyin Jinke”) holds 50% equity of Wujiang Jinke Yangzi Real Estate Development Co., Ltd. (hereinafter referred to as “Wujiang Jinke”); Wujiang Jinke is an associated company of the Company. As at 30 June 2014, Wujiang Jinke did not repay the Company RMB296 million of principal and relevant interest of relevant creditor’s right as scheduled. To protect the interests of the Company and the investors, the Company negotiated many times with associated parties Jiangsu Hengyuan Real Estate Development Co., Ltd. (hereinafter referred to as “Jiangsu Hengyuan”) and Wujiang Jinke. Thanks to the Company’s efforts, Jiangyin Jinke, Wujiang Jinke and Jiangsu Hengyuan signed relevant supplementary agreement on 12 October 2014. On 13 October 2014, Jiangyin Jinke received from Wujiang Jinke the aforesaid loan principal RMB296 million before the deadline specified in the supplementary agreement.

— 565 —

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MANAGEMENT DISCUSSION AND ANALYSIS OF JINKE PROPERTY

(For details, refer to the relevant announcements published by the Company on 12 July and 14 October 2014 on the media (such as www.cninfo.com.cn and China Securities Journal ) designated by the Company for information disclosure.)

• (7) Main repayments and increased nonbank financing in the reporting period

• (1) In March 2012, the Company’s wholly-owned subsidiary Jinke Hotel and Chongqing International Trust signed a trust agreement, in which RMB300 million of debt financing was agreed on for a term of two years and at a consolidated cost of 9% per year. In the reporting period, the Company paid off the principal and interest of the trust fund.

• (2) In July 2012, the Company and Chongqing International Trust signed a trust agreement, in which RMB480 million of debt financing was agreed on for a term of two years and at a consolidated cost of 14% per year. In the reporting period, the Company paid off the principal and interest of the trust fund.

• (3) In September 2012, the Company and Chang’an International Trust signed a trust agreement, in which RMB220 million of debt financing was agreed on for a term of two years and at a consolidated cost of 12% per year. In the reporting period, the Company paid off the principal and interest of the trust fund.

• (4) In August 2012, the Company’s wholly-owned subsidiary Qingke Trading and Chang’an International Trust signed a trust agreement, in which RMB400 million of debt financing was agreed on for a term of two years and at a consolidated cost of 14.5% per year. In the reporting period, the Company paid off the principal and interest of the trust fund.

• (5) In October 2012, the Company’s wholly-owned subsidiary Jinke Xingju and China Industrial International Trust signed a trust agreement, in which RMB480 million of debt financing was agreed on for a term of two years and at a consolidated cost of 12% per year. In the reporting period, the Company paid off the principal and interest of the trust fund.

• (6) In December 2012, the Company and China Industrial International Trust signed a trust agreement, in which RMB600 million of debt financing was agreed on for a term of two years and at a consolidated cost of 11.8% per year. In the reporting period, the Company paid off the principal and interest of the trust fund.

• (7) In January 2014, the Company and Yinhua Capital signed an entrusted loan agreement, in which the Company took a loan of RMB999.26 million issued from Yinhua Capital through Bank of China for a term of two years and at a consolidated cost of 11.3% per year. As at the end of the reporting period, the said loan was still valid.

• (8) In March 2014, the Company and Avic Trust signed a trust agreement, in which RMB500 million of debt financing was agreed on for a term of two years and at a consolidated cost of 10.8% per year. As at the end of the reporting period, the said trust agreement was still valid.

— 566 —

APPENDIX III

MANAGEMENT DISCUSSION AND ANALYSIS OF JINKE PROPERTY

• (9) In April 2014, the Company and China Fortune International Trust signed a trust agreement, in which RMB300 million of debt financing was agreed on for a term of two years and at a consolidated cost of 10.94% per year. As at the end of the reporting period, the said trust agreement was still valid.

• (10) In April 2014, the Company and Chongqing Water Group signed an entrusted loan agreement, in which the Company took a loan of RMB400 million issued from Chongqing Water Group through China Construction Bank for a term of two years and at a consolidated cost of 10.99% per year. As at the end of the reporting period, the said trust agreement was still valid.

• (11) In April 2014, the Company’s holding subsidiary Jinke Zhongjun and Huarong Tianze signed a trust agreement, in which RMB490 million of debt financing was agreed on for a term of two years and at a consolidated cost of 11% per year. As at the end of the reporting period, the said trust agreement was still valid.

• (12) In April 2014, the Company and Founder Bea Trust signed a trust agreement, in which RMB500 million of debt financing was agreed on for a term of two years and at a consolidated cost of 11.5% per year. As at the end of the reporting period, the said trust agreement was still valid.

• (13) In May 2014, the Company and Jic Trust signed a trust agreement, in which RMB108 million of debt financing was agreed on for a term of two years and at a consolidated cost of 11.5% per year. As at the end of the reporting period, the said trust agreement was still valid.

• (14) In May 2014, the Company and Bosera Capital signed a trust agreement, in which RMB500 million of debt financing was agreed on for a term of two years and at a consolidated cost of 11.2% per year. As at the end of the reporting period, the said trust agreement was still valid.

• (15) In May 2014, the Company and China Orient Asset Chongqing Office signed an entrusted loan agreement, in which the Company took a loan of RMB500 million issued from China Orient Asset Chongqing Office through China CITIC Bank for a term of two years and at a consolidated cost of 11.5% per year. As at the end of the reporting period, the said loan was still valid.

• (16) In May 2014, the Company signed relevant cooperation agreement with Pingan Dahua to take an entrusted loan of not more than RMB2.5 billion from it through Chongqing Rural Commercial Bank for a term of two years and at a consolidated cost of 11.45% per year. The loan was raised by Pingan Dahua through phased special asset management plans. As at the end of the reporting period, RMB2,203,300,000 was raised through the asset management plan and the said loan was still valid.

— 567 —

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MANAGEMENT DISCUSSION AND ANALYSIS OF JINKE PROPERTY

• (17) In June 2014, the Company’s wholly-owned subsidiary Changsha Jinke and New China Trust signed a trust agreement, in which RMB300 million of debt financing was agreed on for a term of two years and at a consolidated cost of 10.5% per year. As at the end of the reporting period, the said trust agreement was still valid.

• (18) In July 2014, the Company and the Company’s holding subsidiary Yunnan Jinke Xinhaihui signed relevant cooperation agreement with Pingan Dahua to take an entrusted loan of not more than RMB780 million from it through Chongqing Rural Commercial Bank for a term of two years and at a consolidated cost of not more than 9% per year. The loan was raised by Pingan Dahua through phased special asset management plans. As at the end of the reporting period, RMB731,300,000 was raised through the asset management plan and the said loan was still valid.

• (19) In July 2014, the Company’s holding subsidiary Jinan Jinke Xicheng and Sdic Trust signed a trust agreement, in which RMB400 million of debt financing was agreed on for a term of two years and at a consolidated cost of 9.5% per year. As at the end of the reporting period, the said loan was still valid.

• (20) In July 2014, the Company signed relevant cooperation agreement with Pingan Dahua to take an entrusted loan of not more than RMB2 billion from it through China Merchants Bank for a term of two years and at a consolidated cost of 11.45% per year. The loan was raised by Pingan Dahua through phased special asset management plans. As at the end of the reporting period, RMB1,987,500,000 was raised through the asset management plan and the said loan was still valid.

• (21) In August 2014, the Company’s wholly-owned subsidiary Jinke Hexu and China Orient Asset signed an entrusted loan agreement, in which Jinke Hexu took a loan of RMB400 million issued from China Orient Asset through Chongqing Rural Commercial Bank for a term of two years and at a consolidated cost of 11.5% per year. As at the end of the reporting period, the said loan was still valid.

• (22) The Company’s wholly-owned subsidiary Beijing Zhanhao signed an entrusted loan agreement with Bosera Capital to take a loan of RMB1.3 billion from it through China Bohai Bank. The entrusted loan was issued in two installments: RMB300 million for a term of not more than one year and RMB1 billion for a term of not more than two years and at a consolidated cost of 9.5% per year. As at the end of the reporting period, the said loan was still valid.

Other financing projects of the Company all went well; please refer to relevant notes to this Financial Report of the Company for details.

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MANAGEMENT DISCUSSION AND ANALYSIS OF JINKE PROPERTY

APPENDIX III

Section 8 Directors, Supervisors, Senior Executives and Employees

III. Remuneration of directors, supervisors and senior executives

Decisions on, basis for and actual payment of remuneration of directors, supervisors and senior executives

During the reporting period, directors, supervisors and senior executives of the Company were paid remuneration according to relevant remuneration management rules of the Company and based on their positions other than director or supervisor.

The Company only granted allowance to independent directors according to the decisions of the general meeting, not other directors and supervisors.

Remuneration of directors, supervisors and senior executives of the Company during the reporting period

Unit: RMB’0,000

						Total	Actual
						remuneration	remuneration
					Total	gained	gained as at
					remuneration	from the	the end of
					gained from	shareholder	the reporting
Name	Position	Gender	Age	Incumbent or not	the Company	entity	period
Huang Hongyun	Chairman of the Board of	Male	48	Incumbent	459.52	0	276.9
	Directors
Jiang Sihai	Vice Chairman and	Male	48	Incumbent	469.88	0	282.6
	President of the Board of
	Directors
Zong Shusheng	Vice Chairman of the	Male	46	Incumbent	299.05	0	188.65
	Board of Directors
He Liwei	Director and Executive	Male	50	Incumbent	425.56	0	273.14
	Vice President
Pan Ping	Director	Male	59	Incumbent	0	0	0
Nie Meisheng	Independent Director	Female	74	Incumbent	7.5	0	6.08
Liu Bin	Independent Director	Male	52	Incumbent	12	0	9.68
Yuan Xiaobin	Independent Director	Male	45	Incumbent	12	0	9.68
Jiang Xingcan	Chairman of the	Male	62	Incumbent	187.82	0	130.72
	Supervisory Committee
Han Chong	Supervisor	Male	42	Incumbent	45.56	0	39.05
Zhou Yangmei	Supervisor	Female	44	Incumbent	54.21	0	45.64

— 569 —

APPENDIX III

MANAGEMENT DISCUSSION AND ANALYSIS OF JINKE PROPERTY

						Total	Actual
						remuneration	remuneration
					Total	gained	gained as at
					remuneration	from the	the end of
					gained from	shareholder	the reporting
Name	Position	Gender	Age	Incumbent or not	the Company	entity	period
Fu Xiaowen	Supervisor	Male	45	Incumbent	60.78	50.5	85.35
Chen Changfeng	Employee Supervisor	Female	46	Incumbent	247.46	0	171.04
Nie Ming	Employee Supervisor	Female	51	Incumbent	86.93	0	68.23
Chen Hong	Employee Supervisor	Female	46	Incumbent	56.34	0	48.03
Luo Licheng	Executive President	Male	49	Incumbent	389.91	0	241.67
Li Hua	Vice President and Chief	Male	51	Incumbent	281.45	0	187.77
	Financial Officer
Yu Linqiang	Vice President	Male	39	Incumbent	360.28	0	222.28
Wang Hongfei	Vice President	Male	49	Incumbent	228.56	0	150.55
Liu Zhonghai	Board Secretary	Male	39	Incumbent	87.54	0	70.14
Li Yuhang	Director	Male	44	Resigned	0	0	0
He Wenquan	Employee Supervisor	Male	64	Resigned	52.03	0	42.86
Zhou Da	Employee Supervisor	Male	34	Resigned	80.12	0	64.71
Li Zhanhong	Vice President	Male	54	Resigned	70.05	0	49.76
Luo Wei	Vice President	Male	52	Resigned	247.89	0	167.15
Chen Xingshu	Independent Director	Male	52	Resigned	4.5	0	3.6
Total	—	—	—	—	4,226.94	50.5	2,835.28

Note: In the reporting period, the remuneration of Supervisor Mr. Fu Xiaowen was for his post as Senior Associate Director of the Company’s Securitisation Department as at July 2014.

Equity incentive conferred to directors, supervisors and senior executives of the Company during the reporting period

□ Applicable � Non-Applicable

— 570 —

APPENDIX III

MANAGEMENT DISCUSSION AND ANALYSIS OF JINKE PROPERTY

IV. Changes of directors, supervisors and senior executives of the Company

Name	Position	Type	Date	Reason
Chen Changfeng	Vice President	Resigned	28 February	Willingly resigned as Vice
			2014	President of the Company and
				acted as Deputy General
				Manager of Chongqing Branch of
				the Company according to the
				Company’s arrangement.
Luo Licheng	Executive	Appointed	24 February	Appointed by the Board of
	President		2014	Directors of the Company
Li Zhanhong	Vice President	Resigned by the	13 May 2014	Term of office expired.
		end of his term
Luo Licheng	Director	Resigned by the	13 May 2014	Term of office for the 8th Board
		end of his term		of Directors expired.
Pan Ping	Director	Elected	13 May 2014	Elected upon expiry of term of
				office for the Board of Directors.
Yu Linqiang	Vice President	Appointed	13 May 2014	Appointed by the Board of
				Directors of the Company
Wang Hongfei	Vice President	Appointed	13 May 2014	Appointed by the Board of
				Directors of the Company
Chen Xingshu	Independent	Resigned by the	13 May 2014	Term of office for the 8th Board
	Director	end of his term		of Directors expired.
Nie Meisheng	Independent	Elected	13 May 2014	Elected upon expiry of term of
	Director			office for the Board of Directors.
Pan Ping	Supervisor	Resigned by the	13 May 2014	Term of office for the 8th
		end of his term		Supervisory Committee expired.
Zhou Yangmei	Supervisor	Elected	13 May 2014	Elected upon expiry of term of
				office for the Supervisory
				Committee.
Han Chong	Supervisor	Elected	13 May 2014	Elected upon expiry of term of
				office for the Supervisory
				Committee.
Zhou Da	Employee	Elected	13 May 2014	Elected upon expiry of term of
	Supervisor			office for the Supervisory
				Committee.
Fu Xiaowen	Supervisor	Elected	10 September	Elected at the general meeting
			2014	upon nomination by the
				Supervisory Committee.
Chen Changfeng	Employee	Elected	25 September	Democratically elected by the
	Supervisor		2014	employees of the Company.
Nie Ming	Employee	Elected	25 September	Democratically elected by the
	Supervisor		2014	employees of the Company.

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MANAGEMENT DISCUSSION AND ANALYSIS OF JINKE PROPERTY

Name	Position	Type	Date	Reason
Chen Hong	Employee	Elected	25 September	Democratically elected by the
	Supervisor		2014	employees of the Company.
He Wenquan	Employee	Resigned	25 September	Willingly resigned as Employee
	Supervisor		2014	Supervisor according to work
				arrangement.
Zhou Da	Employee	Resigned	25 September	Willingly resigned as Employee
	Supervisor		2014	Supervisor according to work
				arrangement.
Li Yuhang	Director	Resigned	19 November	Willingly resigned as Director of
			2014	the Company according to work
				arrangement.
Zong Shusheng	Vice President	Resigned	19 November	Willingly resigned as Vice
			2014	President of the Company
				according to work arrangement.
Pan Ping	Director	Resigned	20 March 2015	Willingly resigned as Director of
				the Company according to work
				arrangement.
Nie Meisheng	Independent	Resigned	20 March 2015	Willingly resigned as
	Director			Independent Director of the
				Company according to the
				organization department’s notice
				on regulating part-time job
				taking of retired leading cadres.

• V. Changes of core technical team or key technical staff in the reporting period (other than directors, supervisors and senior executives)

None

VI. Employees of the Company

As at 31 December 2014, the Company had 10,393 employees on the payroll, up 17% as compared with last year. Specifically, there were 2,997 employees in the real estate development system, 2,903 of whom have a junior college degree or above, accounting for 96.86% of the total number of employees in the system. For professional composition, the number of sales personnel, technical personnel, financial personnel and administrative personnel (including IT, law, human resources and information analysis personnel and senior executives) of the Company was 734, 1,123, 319 and 821 respectively. There were 5,925 employees in the Company’s property management system, 1,130 of whom have a junior college degree or above, accounting for 19.07% of the total number of employees in the system. There were 1,471 employees in the Company’s auxiliary industry system, 559 of whom have a junior college degree or above, accounting for 38.00% of the total number of employees in the system. The Company had no paid retired employees.

— 572 —

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MANAGEMENT DISCUSSION AND ANALYSIS OF JINKE PROPERTY

1. Remuneration policy

According to the Labor Law , Labor Contract Law and relevant laws and regulations and in the principle of basing return on contribution and remaining competitive in the industry, the Company stuck to a labor contract system for all employees and determined employees’ remuneration by their personal ability, job responsibility, value contribution and market value. The Company has paid basic old-age insurance, medical insurance, unemployment insurance, work-related injury insurance, maternity insurance and housing provident fund for employees pursuant to relevant state and local government regulations.

2. Training programs helps staff to gain life working ability

Through effective training and education, the Company kept developing employees’ potential and helped them improve their occupational ability, occupational quality and professionalism as well as lifelong employability. In the year the Company ensured not more than 50 hours of training for managerial personnel and not more than 30 hours of training for operators. Various subsidiaries organized professional skill training and the Group organized management training, realizing 99% coverage of employee training.

Education level of employees in the real estate development system

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

Other
3%
Junior college
education
18%
Bachelor degree
or above
79%
----- End of picture text -----

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MANAGEMENT DISCUSSION AND ANALYSIS OF JINKE PROPERTY

APPENDIX III

Professional composition of employees in the real estate development system

==> picture [171 x 85] intentionally omitted <==

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

Administrative Sale
personnel personnel
27% 25%
Financial
personnel
11% Technical
personnel
27%
----- End of picture text -----

Education level of employees in the property management system

==> picture [227 x 163] intentionally omitted <==

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

Bachelor degree
or above
10% Junior college
education
9%
Other
81%
----- End of picture text -----

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MANAGEMENT DISCUSSION AND ANALYSIS OF JINKE PROPERTY

APPENDIX III

Section 9 Corporate Governance

VIII. The evaluation and incentive mechanism for senior executives

With a complete evaluation and remuneration incentive mechanism, the Company conducted senior executive evaluation based on completion of key tasks, key performance indicators and assigned duties in the year. Remuneration of senior executives, on a post salary basis, consisted of fixed wages, bonus and social insurance & welfare; specifically, fixed wages were determined by post evaluation, job family and market position; bonus was determined by personal performance and fulfilment of job objectives; social insurance & welfare were determined by relevant regulations of the state and relevant systems of the Company.

MANAGEMENT DISCUSSION AND ANALYSIS OF THE RESULTS OF JINKE PROPERTY FOR THE YEAR ENDED 31 DECEMBER 2015

Section 4 Management Discussion and Analysis

I. Overview

• (I) Analysis of the real estate market in 2015

• Analysis of the real estate market position nationwide in 2015

In 2015, to echo the main policy tone of consumption promotion and destocking, easing real estate policies on the supply and demand sides were frequently rolled out, resulting in a stable increase in both sales volume and price and significantly improving the policy environment for industry operation. During the reporting period, the Central Government built an easing market environment through several rounds of cuts in RRR and interest rate and other measures including reduction of down payment for the first and second housings, tax reduction and exemption and lowering of access threshold; local policies also experienced flexible adjustments to stimulate consumption by multiple measures including tax reduction and exemption, fiscal subsidy, and cancellation of housing purchase quota and price restriction. Meanwhile, local governments further improved the market environment by controlling land supply, intensifying the monetized resettlement of low-income housings, and promoting long-effective mechanism including the household registration system and reform in housing provident fund. Multiple rounds of policy mix laid a foundation for a warming housing market.

Data from the National Bureau of Statistics showed that in 2015 the real estate development investment nationwide came up to RMB9,597.9 billion, representing a nominal growth of 1.0% (or actual growth of 2.8% with price put aside) as compared with last year, and the growth rate was 9.5 ppts less than that in the preceding year. In particular, residential investment increased 0.4% to RMB6,459.5 billion. Sold GFA of commodity housing nationwide rose 6.5% from last year to 1,284.95

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MANAGEMENT DISCUSSION AND ANALYSIS OF JINKE PROPERTY

APPENDIX III

million m[2] , of which, the sold GFA of residential housing grew 6.9%; sales amount of commodity housing increased 14.4% to RMB8,728.1 billion, of which, the sales amount of residential housing grew 16.6%. In 2015, the real estate sales markets across the country warmed up but the investment growth inched down as indicated in data.

2. Analysis of the real estate markets around the major projects of the Company

As at the end of the reporting period, the Company has carried out real estate business in 12 provinces (cities). During the reporting period, the contracted real estate sales amount of the Company mainly came from Chongqing, Beijing, Suzhou and Qingdao. The real estate market positions in these cities in 2015 are roughly as follows:

		Transaction						The		The
	**area **	of land for				Sold GFA of	Sales amount	Company’s	Contracted	Company’s
		commodity	Newly	In-construction	Completed	commodity	of commodity	contracted	amount of	market
City		housing	started GFA	GFA	GFA	housing	housing	sold GFA	the Company	share
		(0’000 m2)	(0’000 m2)	(0’000 m2)	(0’000 m2)	(0’000 m2)	(RMB’00	(0’000 m2)	(RMB’00	(%)
							million)		million)
Chongqing		3,726.89	5,810.85	28,985.67	4,630.29	5,381.37	2,952.21	198.4	107.6	3.69
Suzhou		1,078.05	2,153.41	11,285.85	1,653.14	2,133.73	2,200.00	18.96	18.95	0.89
Beijing		555.17	2,706.91	12,993.08	2,631.45	1,554.25	3,517.65	14.44	26.42	0.93
Qingdao		642.27	1,962.07	8,971.23	1,523.35	1,418.58	1,262.86	19.14	19.53	1.35

Note: The aforesaid data are from China Index Academy and the Company

(II) Summary of the Company’s operation during the reporting period

1. The Company’s overall operation during the reporting period

During the reporting period, the Company made concerted efforts to overcome difficulties, actively adapted itself to the new normal economy, further promoted transformation and upgrading and comprehensively deepened reform and innovation. These efforts helped the Company maintain advancement amid stability in a complicated market environment.

I. The Company’s earnings grew steadily. In 2015, the Company posted operating revenue of RMB19,399 million, up 11.98% year on year, and net profit of RMB1,234 million, up 42.99% year on year; in particular, the net profit attributable to shareholders of the listed company was RMB1,123 million (with the effect of perpetual bonds excluded), up 23.74% year on year.

The large increase of the earnings in the current period was mainly caused by high gross margin of the carryover items in the current period. Various business segments of the Company posted a combined sales amount of about RMB23.8 billion, representing a year-on-year rise of about 4%; in particular, the real estate sector recorded contracted sales amount of about RMB22.1 billion, up

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APPENDIX III

MANAGEMENT DISCUSSION AND ANALYSIS OF JINKE PROPERTY

approximately 5% year on year, and contracted sold GFA of about 3.32 million m[2] , up approximately 3% year on year. In full-year 2015, the newly started GFA came in at about 3.32 million m[2] , completed GFA was approximate to 4.07 million m[2] and booked GFA was about 2.86 million m[2] ; 75 projects were under construction at the end of 2015, with in-construction GFA of about 13.02 million m[2] .

II. Upgrading and transformation was sped up. The Company sped up integrated community services and positively pushed forward low-cost expansion. By undertaking management projects from external parties and improving service contents, the operation efficiency was further enhanced. In 2015, the property management company logged operating revenue of RMB589 million, representing a year-on-year increase of 35.52%, and net profit of RMB48 million, representing a year-on-year increase of 152%. The Company accelerated the development of industrial real estate projects. Following the landing of the Changsha Science and Technology City Project, the first big health industrial real estate project was successfully signed and was put into operation in Liangjiang New District, Chongqing in February 2016. Besides, the Company also made efforts to steadily promote new energy business, set up new energy industrial fund and positively explore light-asset operation mode.

III. Evident results were achieved in asset management. While ensuring project development loan and other traditional financing methods, the Company also stepped up direct financing from capital markets and inter-bank markets and acquired direct financing of RMB12.3 billion. The Company completed public and non-public issue of corporate bonds of RMB3.25 billion, issued medium-term notes of RMB2.1 billion and financed RMB1.5 billion through innovative securitization of property income asset, which not only effectively lowered the Company’s comprehensive financing cost but also improved the Company’s liability structure. In 2015, private equity placement was advanced amid stability. In 2015, sales proceeds of the Company were RMB24.2 billion, up 17% year on year; net operating cash flow turned from negative to positive, up 105% year on year. At the end of the period, the balance of monetary funds was RMB9.4 billion, up 25% year on year, scaling a new high. Cash flow continuously got better, further enhancing the debt repayment ability.

IV. Management mechanism was further improved. During the reporting period, the Company launched the real estate project follow-up investment system, and core managers in various regions implemented 12 follow-up investment projects, which fully mobilized the initiative of the project operating teams and further enhanced the operation quality and efficiency of the projects. Under the restricted equity incentive plan, the Company issued 191.44 million restricted shares to 147 incentive targets, which effectively combined shareholders’ interests with the interests of the Company and employees. The follow-up investment system and equity incentive mechanism adopted by the Company further improved the Company’s long-effective management and incentive mechanism and put the Company’s long-term development into a common concern.

— 577 —

APPENDIX III

MANAGEMENT DISCUSSION AND ANALYSIS OF JINKE PROPERTY

V. Reforms in major fields were further strengthened. First, the Company carried out major reforms in the real estate business management-control mode following the general principle of “making a strong presence in regions with a focus on the Group”. The Group changed the management-control mode for real estate business from “business-based control” to “strategy and core business-based control”. Second, firmly following staff reform, project, strategic thinking and implementation, the Company worked out the top-level design for reform in the fields of preliminary work, R&D positioning and design management and conducted balanced promotion of 77 reform tasks.

VI. Brand influence was continuously built up. During the reporting period, according to the third-party selection results, the Company was listed into “China’s Top 20 Real Estate Developers” for five years in a row, and Jinke Property won the honor of “China’s Top 10 Preferred Property Brand in Real Estate Services”; the Company entered the list of “China’s Top 100 Real Estate Enterprises” for 11 consecutive years and ranked No. 15 in comprehensive strength, and other awards included “China’s Top 100 Real Estate Enterprises in 2015 — Top 10 in Robustness”, “China’s Top 30 Commercial Real Estate Enterprises”, “China’s Top 20 Real Estate Listed Companies in Comprehensive Strength in 2015”, “China’s Top 20 Real Estate A-share Enterprises in 2015”, etc.

VII. Corporate governance was continuously enhanced. The Board of Directors, the Supervisory Committee and the general meeting operated healthily. During the reporting period, the Company convened 12 meetings of the Board of Directors, 6 meetings of the Supervisory Committee and 10 general meetings; the Company was independent from the controlling shareholders in business, personnel, assets, organization and finance and had independent and integral business and management capabilities; the Company strictly observed various rules on the listed companies, and disclosed information in a prompt, accurate and complete manner.

VIII. Investor relations management was significantly effective. The Company constantly reinforced the investor relations management. This year, at the 11th Gold Prize of Round Table of the Board of Directors of China’s Listed Companies election ceremony, the Board of Directors of the Company won the honour of “Excellent Board of Directors”, and the Board secretary was awarded as “Most Innovative Board Secretary”. Moreover, the Company won the Finalist Award of the Investors’ Most Respected Listed Company in 2015 issued by China Association for Public Companies, and the Board secretary received a prize for best investor relations at the 17th Golden Bull Award for China’s Listed Companies and won the 5th-straight title of “Golden Board Secretary” granted by New Fortune .

IX. Other businesses fared well. The Company continued to reinforce management of other businesses, and the operation management in respect of landscaping, hotel and doors & windows businesses was improved on a constant basis, lending support to the development of main businesses.

— 578 —

MANAGEMENT DISCUSSION AND ANALYSIS OF JINKE PROPERTY

APPENDIX III

1. Operation and development of the Company’s real estate projects during the reporting period

2. (1) The Company’s land reserves

By the end of the reporting period, the buildable area of the Company’s land reserve was 16.99 million m[2] . The new land reserves during the reporting period are as follows:

SN Land name Region Equity percentage Land area (m2) 1 Ruichang Road Project in Qingdao Qingdao, Shandong 100% 65,239 2 Wujiaqu Project in Urumqi Urumqi, Xinjiang 51% 95,846 3 Daqiu Project in Kai County, Chongqing Chongqing 100% 72,480 4 Changsha Science and Technology City Project Changsha, Hunan 55% 333,998 5 Dazhulin Project in Chongqing Chongqing 100% 276,230 6 New Wushan County Project in Chongqing Chongqing 100% 292,066 7 Luzhi Project in Suzhou Suzhou, Jiangsu 100% 52,969 8 Suzhou West Road project Urumqi, Xinjiang 100% 149,227 9 Nanhu Phase II Project in Fuling, Chongqing Chongqing 100% 99,268 Total 1,437,323

Capacity building area (m2) 213,499 143,769 196,256 681,270 753,236 963,818 95,343 149,227 198,537

3,394,955

— 579 —

APPENDIX III

MANAGEMENT DISCUSSION AND ANALYSIS OF JINKE PROPERTY

Actual	investment	amount as at	the end of the		reporting	period	(RMB’0,000)	196,315.68			140,443.88		15,711.93		621,207.59		243,617.92		195,830.97		84,372.56		299,409.85			110,788.19		248,171.37		131,056.51
		Estimated	total project		investment	amount	(RMB’0,000)	494,499.00			304,850.00		403,887.00		720,000.00		465,800.00		429,228.00		290,000.00		359,831.00			246,593.00		287,247.52		210,840.80
Cumulative	completed	GFA as at the	end of the		reporting	period	(m2)	—			—		—		1,318,835.00		—		365,534.00		—		281,771.00			146,939.00		696,561.00		103,817.00
						GFA	(m2)	1,093,584.00			821,999.00		963,818.00		1,835,796.00		1,543,273.00		946,065.00		617,359.00		526,948.00			639,680.00		891,924.00		718,608.00
					Capacity	building area	(m2)	899,542.00			701,834.00		963,818.00		1,492,616.00		1,324,619.00		830,517.00		532,919.00		413,831.00			505,922.00		750,328.00		572,333.00
						Land area	(m2)	341,831.00			329,915.00		292,066.00		681,649.00		518,818.00		333,521.00		191,082.00		230,218.00			259,758.00		213,129.00		323,921.00
					Equity	percentage		51%			60%		100%		100%		80%		100%		100%		100%			100%		100%		100%
						Progress		Under	construction		Under	construction	Not	commenced	Under	construction	Under	construction	Under	construction	Under	construction	Under	construction		Under	construction	Under	construction	Under	construction
						Region		Chongqing			Chongqing		Chongqing		Chongqing		Chongqing		Chongqing		Chongqing		Chongqing			Chongqing		Chongqing		Chongqing
						Business type		Residential			Residential		Residential		Residential		Residential		Residential		Residential		Residential			Residential		Residential		Residential
						Project		Changshou	World City		Yunyang World	City	Wushan Jinke	City	Chongqing	Bridge Village	Xiyong	Tianchen	Rongchang	World City	Nanchuan	World City	Chongqing	Jinke	Leijiaqiao	Fuling Central	Park	Kaizhou City		Jiangjin	Central Park
						SN		1			2		3		4		5		6		7		8			9		10		11

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APPENDIX III

MANAGEMENT DISCUSSION AND ANALYSIS OF JINKE PROPERTY

Actual	investment	amount as at	the end of the		reporting	period	(RMB’0,000)	96,030.71		57,096.99		141,552.77		229,689.00		204,393.97		248,037.52		68,076.26		37,486.54				135,744.83		196,555.07				119,506.11
		Estimated	total project		investment	amount	(RMB’0,000)	247,600.00		250,000.00		240,392.00		306,011.00		387,420.00		358,772.00		300,000.00		210,743.00				229,411.00		209,369.40				220,000.00
Cumulative	completed	GFA as at the	end of the		reporting	period	(m2)	—		—		173,878.00		296,145.00		90,948.00		21,802.00		—		—				—		376,931.00				—
						GFA	(m2)	498,277.00		600,974.00		736,645.00		793,736.00		540,885.00		867,201.00		753,236.00		663,466.00				492,872.00		376,931.00				259,849.00
					Capacity	building area	(m2)	393,969.00		497,924.00		625,927.00		673,801.00		492,614.00		738,355.00		753,236.00		647,266.00				418,045.00		359,095.00				218,920.00
						Land area	(m2)	189,543.00		197,570.00		194,927.00		259,248.00		150,851.00		396,067.00		276,230.00		333,998.00				94,118.00		310,029.00				62,768.00
					Equity	percentage		51%		100%		100%		100%		51%		100%		100%		55%				100%		100%				51%
						Progress		Newly started		Under	construction	Under	construction	Under	construction	Under	construction	Under	construction	Not	commenced	Not	commenced			Under	construction	Completed				Not	commenced
						Region		Chongqing		Chongqing		Chongqing		Chongqing		Chongqing		Chongqing		Chongqing		Changsha,	Hunan			Changsha,	Hunan	Changsha,	Hunan			Kunming,	Yunnan
						Business type		Residential		Residential		Residential		Residential		Residential		Residential		Residential		Residential				Residential		Residential				Residential
						Project		Jinke Nanhu	Project	Fengdu Golden	Coast	Dazu Central	Park	Bishan Central	Park	Jinke Times	Center	Beibei Jinke	City	Jinke Tianyuan	Road	Changsha	Science and	Technology	City Project	Changsha Jinke	Center	Changsha	Flourishing	Oriental	Courtyard	Yunnan Jinke	Times Center
						SN		12		13		14		15		16		17		18		19				20		21				22

— 581 —

APPENDIX III

MANAGEMENT DISCUSSION AND ANALYSIS OF JINKE PROPERTY

Actual	investment	amount as at	the end of the		reporting	period	(RMB’0,000)	54,817.09		121,283.94		50,699.42		184,738.38			457,936.80				215,182.56		146,699.46			311,843.14		128,624.54		342,122.47		71,023.50
		Estimated	total project		investment	amount	(RMB’0,000)	337,391.33		226,414.56		232,301.00		187,048.01			515,579.11				235,015.33		261,699.00			370,598.00		195,651.00		956,673.00		255,744.00
Cumulative	completed	GFA as at the	end of the		reporting	period	(m2)	—		—		—		394,648.00			460,371.00				415,350.00		169,954.00			287,269.00		—		—		—
						GFA	(m2)	642,366.00		347,420.00		528,018.00		394,648.00			710,400.00				466,242.00		382,541.00			289,498.00		305,681.00		1,452,242.00		897,386.00
					Capacity	building area	(m2)	642,366.00		245,706.00		443,904.00		292,244.00			521,472.00				362,169.00		277,216.00			265,645.00		223,526.00		1,133,327.00		734,798.00
						Land area	(m2)	160,592.00		62,079.00		166,410.00		155,084.00			206,455.00				142,694.00		105,704.00			176,304.00		65,239.00		269,988.00		368,482.00
					Equity	percentage		51%		100%		100%		100%			100%				100%		100%			100%		100%		51%		100%
						Progress		Not	commenced	Under	construction	Under	construction	Completed			Under	construction			Under	construction	Under	construction		Under	construction	Newly started		Under	construction	Under	construction
						Region		Xianyang,	Shaanxi	Xi’an, Shaanxi		Rugao, Jiangsu		Jiangyin,	Jiangsu		Wuxi, Jiangsu				Wuxi, Jiangsu		Wuxi, Jiangsu			Suzhou,	Jiangsu	Qingdao,	Shandong	Jinan,	Shandong	Zunyi, Guizhou
						Business type		Residential		Residential		Residential		Residential			Residential				Residential		Residential			Residential		Residential		Residential		Residential
						Project		Shaanxi World	City	Shaanxi Nature	City	Rugao World	City	Jiangyin	Oriental	Mansion	Wuxi	Chengnan	Aristocratic	Family	Milan Garden		Wuxi Wealth	Commercial	Plaza	Suzhou Scene	Mansion	Qingdao Jinke	Star	Jinan Jinke	World City	Zunyi Central	Park
						SN		23		24		25		26			27				28		29			30		31		32		33

— 582 —

APPENDIX III

MANAGEMENT DISCUSSION AND ANALYSIS OF JINKE PROPERTY

Actual	investment	amount as at	the end of the		reporting	period	(RMB’0,000)	197,203.13		306,838.74		419,275.75		242,767.30
		Estimated	total project		investment	amount	(RMB’0,000)	198,982.00		325,126.00		486,191.00		258,077.00
Cumulative	completed	GFA as at the	end of the		reporting	period	(m2)	250,628.00		—		98,584.00		174,046.00
						GFA	(m2)	346,783.00		296,391.00		187,077.00		174,046.00
					Capacity	building area	(m2)	322,363.00		235,485.00		153,061.00		143,796.00
						Land area	(m2)	370,803.00		80,118.00		152,307.00		113,707.00
					Equity	percentage		100%		100%		100%		100%
						Progress		Under	construction	Newly started		Under	construction	Completed
						Region		Chengdu,	Sichuan	Beijing		Beijing		Beijing
						Business type		Residential		Residential		Residential		Residential
						Project		Chengdu	Bridge Village	Beijing Nature	City	Beijing Napa	House	Beijing Bridge	Garden
						SN		34		35		36		37

— 583 —

APPENDIX III

MANAGEMENT DISCUSSION AND ANALYSIS OF JINKE PROPERTY

(3) Sales of major real estate projects

						GFA with
						pre-sale
						permit	Settled GFA
					Total	during the	during the
		Business		Equity	saleable	reporting	reporting
SN	Project	type	Region	percentage	GFA	period	period
					(m2)	(m2)	(m2)
1	Bishan Central Park	Residential	Chongqing	100%	410,365	29,980	93,445
2	Chongqing Jinke Leijiaqiao	Residential	Chongqing	100%	338,010	35,452	116,511
3	Jiangjin Central Park	Residential	Chongqing	100%	268,405	77,292	71,581
4	Jinke Konggang City	Residential	Chongqing	51%	81,540	81,540	—
5	Chongqing Bridge Village	Residential	Chongqing	100%	1,436,329	79,921	329,777
6	Nanchuan World City	Residential	Chongqing	100%	139,605	108,445	—
7	Jinke Xiyong Tianchen	Residential	Chongqing	80%	354,993	194,702	—
8	Changshou World City	Residential	Chongqing	51%	270,473	127,080	—
9	Fuling Nature City	Residential	Chongqing	51%	340,492	78,651	125,776
10	Dazu Central Park	Residential	Chongqing	100%	330,384	60,900	120,561
11	Rongchang World City	Residential	Chongqing	100%	455,563	43,488	87,837
12	Kaizhou City	Residential	Chongqing	100%	779,572	82,871	220,167
13	Kaizhou Wealth Center	Residential	Chongqing	100%	393,940	165,530	234,472
14	Yunyang Jinke World City	Residential	Chongqing	60%	332,133	214,815	—
15	Zunyi Jinke Central Park	Residential	Zunyi	100%	205,229	105,066	—
16	Suzhou World View	Residential	Suzhou	100%	116,851	101,738	—
17	Suzhou Scene Mansion	Residential	Suzhou	100%	204,533	—	40,178
18	Suzhou Nature Garden	Residential	Suzhou	100%	255,856	55,006	110,871
19	Wuxi Chengnan Aristocratic	Residential	Wuxi	100%	469,823	40,175	32,306
	Family
20	Neijiang New City Center	Residential	Neijiang	70%	243,604	60,442	—
21	Beijing Jinke Nature City	Residential	Beijing	100%	100,928	100,928	—
22	Jinan Jinke World City	Residential	Jinan	51%	395,717	163,828	—
23	Xinjiang Jinke Bridge Village	Residential	Urumqi	51%	247,559	63,464	17,623

— 584 —

APPENDIX III

MANAGEMENT DISCUSSION AND ANALYSIS OF JINKE PROPERTY

• (4) Main rent projects

Equity

SN Project

SN Project Business type Region percentage Floor area Rental rate (m[2] ) 1 Jinke International Plaza Commercial Yubei District, Chongqing 100% 106,927.62 100% 2 Fuling World Corridor B Commercial Fuling District, Chongqing 100% 94,089.73 82.17%

• (5) Corporate financing

SN Project

• 1 Bank loans

• 2 Loans from non-bank financial institutions 3 Bonds Total

Balance at the Financing Term end of the period cost range structure (RMB) 18,132,229,999.99 5%-7% 1-7 years 13,487,989,600.00 7%-11.5% 1-4 years 6,850,000,000.00 5.5%-7% 1-5 years 38,470,219,599.99

• (6) Income and cost statements of major projects

						Gross
SN	Region	Business type	Project	Operating revenue	Operating cost	margin
				(RMB)	(RMB)
1	Chongqing	Residential	Bishan Central Park	471,675,331.00	370,311,560.81	21.49%
2	Chongqing	Residential	Jiangjin Central Park	405,317,403.00	318,658,205.51	21.38%
3	Chongqing	Residential	Bridge Village	1,992,656,454.00	1,241,528,643.70	37.69%
4	Chongqing	Residential	Fuling Nature City	732,371,245.45	499,202,104.17	31.84%
5	Chongqing	Residential	Dazu Central Park	727,448,617.92	546,302,940.12	24.90%
6	Chongqing	Residential	Rongchang World	424,207,950.53	313,786,401.71	26.03%
			City
7	Chongqing	Residential	Kaizhou City	1,283,848,604.85	688,528,740.90	46.37%
8	Chongqing	Residential	Kaizhou Wealth	1,404,689,692.00	710,337,062.12	49.43%
			Center
9	Jiangsu	Residential	Suzhou Jinke Palace	754,963,243.00	621,409,733.00	17.69%
10	Jiangsu	Residential	Suzhou Nature City	899,194,119.00	705,081,719.17	21.59%
11	Jiangsu	Residential	Wuxi World City	330,193,885.00	263,220,872.98	20.28%
12	Beijing	Residential	Beijing • Jinke	1,387,868,658.00	978,641,920.82	29.49%
			Bridge Garden
13	Sichuan	Residential	Chengdu • Jinke	726,820,797.96	608,113,470.28	16.33%
			Center

— 585 —

APPENDIX III

MANAGEMENT DISCUSSION AND ANALYSIS

OF JINKE PROPERTY

						Gross
SN	Region	Business type	Project	Operating revenue	Operating cost	margin
				(RMB)	(RMB)
14	Chongqing	Residential	Chongqing	647,815,208.62	496,277,639.36	23.39%
			Changshou • Jinke
			Sunshine Town
15	Chongqing	Residential	Chongqing	618,379,723.19	439,687,819.60	28.90%
			Yongchuan • Jinke
			Sunshine Town
16	Chongqing	Residential	Chongqing Hechuan	616,800,697.00	422,768,174.96	31.46%
			• Jinke World City
17	Chongqing	Residential	Chayuan Central	1,099,556,896.00	1,133,338,529.48	-3.07%
			Imperial Garden
18	Chongqing	Residential	Chongqing • Jinke	580,388,883.00	367,018,429.18	36.76%
			Jiangjin World City
19	Jiangsu	Residential	Jiangyin • Oriental	569,282,059.00	466,968,190.41	17.97%
			Courtyard
20	Jiangsu	Residential	Zhangjiagang •	249,615,869.00	185,378,572.49	25.73%
			Bridge Court
21	Chongqing	Residential	Chongqing • Jinke	248,970,926.00	199,670,895.18	19.80%
			Times Center

3. New energy business

(1) New energy operation

In December 2014, the Company formally entered the new energy (wind) power generation industry by acquiring Xinjiang Huaran Oriental New Energy Co., Ltd. During the reporting period, regarding the Yandun-based wind power project of Huaran Oriental, the phase II wind power generators with a capacity of 100,000 kw and Phase III wind power generators with a capacity of 50,000 kw were connected to the grid to generate power in April and October 2015 respectively.

By the end of the reporting period, 200,000 kw wind power generators of Huaran Oriental were all connected to the grid to generate power and worked well. During the reporting period, the Jingxia wind power project declared by Kumul Huaran Oriental Jingxia Wind Power Generation Co., Ltd., the wholly-owned subsidiary of Huaran Oriental, was approved by Xinjiang Uygur Autonomous Region Development and Reform Commission, involving a total installed capacity of 200,000 kw and total investment of RMB1,565 million. The photovoltaic power generation project in Zhongzhi, Wulian, Shandong declared by Jinke New Energy was registered and filed by Rizhao Municipal Development and Reform Commission, with a total installed capacity of 20,000 kw and total investment of RMB153 million. At present, power generators for the two new energy power generation projects were under preparation.

— 586 —

APPENDIX III

MANAGEMENT DISCUSSION AND ANALYSIS OF JINKE PROPERTY

During the reporting period, Huaran Oriental generated power of 479.35 million kwh, including on-grid power of 247.96 million kwh and losses from power rationing of 231.39 million kwh, with a power rationing loss ratio of 48.27%. As at the end of the reporting period, Huaran Oriental posted total assets of RMB1,664.82 million and net assets of RMB383.06 million. The operating revenue in 2015 was RMB121.97 million.

(2) Main causes for worse-than-expected operating results

Since Jinke New Energy completed acquisition of Huaran Oriental, its management team has been working conscientiously and diligently, with a view to further improving the operating results of Huaran Oriental. However, given weak growth of power consumption in the whole society in 2015, especially Xinjiang Power Grid’s vigorous efforts to build outward transmission channels and looped network across Xinjiang, power transmission of the whole network was affected. In addition, force majeure such as repeated issue of notice by State Grid Xinjiang Electric Power Company Control Center about analysis test of power grid oscillation disturbance source, overhaul of essential power grid equipment and Tianshan-Zhongzhou DC power transmission system, and peak shaving of power grid led to serious power rationing of Huaran Oriental in the reporting period, with a power rationing loss rate of 48.27% (the average power rationing loss rate was 2.03% in 2014). As a result, the operating results in the reporting period were lower than expected.

(3) Countermeasures taken by the Company

Given the abovementioned objective conditions, the Company and China Merchants Kunlun Capital Co., Ltd. (CMK Capital) (the original shareholder of Huaran Oriental), upon repeated negotiation and discussion, finally made adjustments regarding the original acquisition matters via a package deal including reduction of original acquisition price, capital increase and joint investment of the original shareholders’ related parties for new energy industry fund and cancellation of performance undertakings. With the completion of construction of new outward transmission channels of Xinjiang Power Grid and looped network across Xinjiang, Huaran Oriental’s power rationing will be obviously improved. Meanwhile, to effectively control investment risks, the Company adjusted the progress of new energy investment and main investment modes in due time, so as to steadily propel new energy development. In December 2015, the Company and its partners including CMK Capital jointly funded Jinke new energy industry fund. As at the reporting date, the fund (namely, Xinjiang Jinke New Energy Equity Investment Partnership (limited partnership)) had been established, RMB401 million contributed by all the partners had been in place and the fund-related work was under way. In the future, the total fund size will be increased according to investment needs and subsequent fund raising of managing partners. By establishing industry fund, the Company can not only broaden the fund and project channels for new energy development and achieve synergy with the Company’s existing new energy business, but also leverage the partners’ resource advantages and industry investment experience to incubate quality projects in the new energy field and lock them by means of pre-emptive right, so as to expand and consolidate the new energy sector.

— 587 —

APPENDIX III

MANAGEMENT DISCUSSION AND ANALYSIS OF JINKE PROPERTY

II. Analysis of main businesses

1. Overview

• Refer to the contents of “I. Overview” in “Management Discussion and Analysis”.

2. Revenue and cost

• (1) Composition of operating revenue

Unit: RMB

	2015	2015	2014	2014
		Percentage		Percentage	Year-on-
		in the		in the	year
		operating		operating	increase/
	Amount	revenue	Amount	revenue	decrease
Total operating revenue	19,398,573,320.90	100%	17,323,507,266.17	100%	11.98%
By sector
Real estate sales	18,033,959,311.54	92.96%	15,826,213,813.90	91.36%	13.95%
Property management	588,934,957.61	3.04%	434,578,287.97	2.51%	35.52%
Hotel operation	201,973,043.37	1.04%	145,435,930.10	0.84%	38.87%
New energy	121,968,406.24	0.63%
Landscaping and others	451,737,602.14	2.33%	917,279,234.20	5.29%	-50.75%
By product
Real estate sales	18,033,959,311.54	92.96%	15,826,213,813.90	91.36%	13.95%
Property management	588,934,957.61	3.04%	434,578,287.97	2.51%	35.52%
Hotel operation	201,973,043.37	1.04%	145,435,930.10	0.84%	38.87%
New energy	121,968,406.24	0.63%
Landscaping and others	451,737,602.14	2.33%	917,279,234.20	5.29%	-50.75%
By region
Chongqing	15,069,887,440.51	77.69%	12,737,670,545.39	73.53%	18.31%
Jiangsu	2,910,015,099.00	15.00%	2,514,342,102.42	14.51%	15.74%
Other regions	1,418,670,781.39	7.31%	2,071,494,618.36	11.96%	-31.51%

— 588 —

APPENDIX III

MANAGEMENT DISCUSSION AND ANALYSIS OF JINKE PROPERTY

• (2) Sectors, products or regions from which the revenues account for over 10% of the Company’s operating revenue or operating profit

• Applicable □ Not Applicable

Unit: RMB

				Increase/
				decrease in	Increase/
				operating	decrease in
				revenue	operating cost	Increase/decrease
				as compared	as compared	in gross margin as
				with the same	with the same	compared with the
			Gross	period of the	period of the	same period of the
	Operating revenue	Operating cost	margin	preceding year	preceding year	preceding year
By sector
Real estate sales	18,033,959,311.54	13,097,536,021.97	27.37%	13.95%	7.42%	Increase of 4.42%
By product
Real estate sales	18,033,959,311.54	13,097,536,021.97	27.37%	13.95%	7.42%	Increase of 4.42%
By region
Chongqing	15,069,887,440.51	11,015,797,915.43	26.90%	18.31%	13.97%	Increase of 2.78%
Jiangsu	2,910,015,099.00	2,238,106,415.66	23.09%	15.74%	10.31%	Increase of 3.78%

As the statistical calibre of main business data of the Company was adjusted in the reporting period, the main business data are those adjusted as per the calibre at the end of the reporting period in the past one year

□ Applicable � Not Applicable

• (3) Whether the Company’s sales revenue from material objects is higher than labour service revenue

� Yes □ No

					Year-on-year
					increase/
Sector	Item	Unit	2015	2014	decrease
Real estate development	Contracted sales area	0,000 M2	332	322	3.11%
	Contracted sales	RMB’0,000	221	210	5.24%
	amount

— 589 —

MANAGEMENT DISCUSSION AND ANALYSIS OF JINKE PROPERTY

APPENDIX III

Description of reasons for a year-on-year change of over 30% in relevant data

□ Applicable � Not Applicable

• (4) Performance of major sales contracts signed by the Company as at the reporting period

□ Applicable �Not Applicable

• (5) Composition of operating revenue

Sector and product classification

Unit: RMB

		2015	2015	2014	2014
			Percentage		Percentage	Year-on-
			in the		in the	year
			operating		operating	increase/
Sector	Item	Amount	cost	Amount	cost	decrease
Real estate sales	Real estate development	13,097,536,021.97	94.31%	12,193,291,958.81	91.43%	7.42%
Property management	Property management	452,045,818.68	3.26%	348,305,539.15	2.61%	29.78%
Hotel operation	Hotel operation	63,023,806.93	0.45%	35,794,789.06	0.27%	76.07%
New energy	New energy	44,509,612.98	0.32%
Landscaping and others	Landscaping and others	229,888,396.42	1.66%	759,266,234.19	5.69%	-69.72%

Unit: RMB

		2015	2015	2014	2014
			Percentage		Percentage	Year-on-
			in the		in the	year
			operating		operating	increase/
Product	Item	Amount	cost	Amount	cost	decrease
Real estate sales	Real estate development	13,097,536,021.97	94.31%	12,193,291,958.81	91.43%	7.42%
Property management	Property management	452,045,818.68	3.26%	348,305,539.15	2.61%	29.78%
Hotel operation	Hotel operation	63,023,806.93	0.45%	35,794,789.06	0.27%	76.07%
New energy	New energy	44,509,612.98	0.32%
Landscaping and others	Landscaping and others	229,888,396.42	1.66%	759,266,234.19	5.69%	-69.72%

— 590 —

MANAGEMENT DISCUSSION AND ANALYSIS OF JINKE PROPERTY

APPENDIX III

(6) Whether the consolidation scope changed in the reporting period

• Yes □ No

See the Company’s financial report and note 6 to the consolidated financial statements for details.

• (7) Material changes or adjustments in the Company’s businesses, products or services in the reporting period

□ Applicable � Not Applicable

(8) Information about main customers and main suppliers

Information about the Company’s main customers

Total amount of sales to the top 5 customers (RMB) 286,571,344.69 Percentage of the total amount of sales to the top 5 customers in the annual total sales amount 1.48%

Information about the Company’s top 5 customers

			Percentage in the annual	Percentage in the annual
SN	Name of customer	Sales volume	total sales volume
		(RMB)
1	Customer 1	121,968,406.24		0.64%
2	Customer 2	60,000,000.00		0.31%
3	Customer 3	39,566,448.50		0.20%
4	Customer 4	33,185,499.86		0.17%
5	Customer 5	31,850,990.09		0.16%
Total	—	286,571,344.69		1.48%

Other information about the main customers

□ Applicable � Not Applicable

Information about the Company’s main suppliers

Total amount of purchase from the top 5 suppliers (RMB)	3,205,597,328.70
Percentage of the total amount of purchase from the top 5 suppliers
in the annual total purchase amount	26.40%

— 591 —

APPENDIX III

MANAGEMENT DISCUSSION AND ANALYSIS OF JINKE PROPERTY

Information about the Company’s top 5 suppliers

			Percentage in annual
SN	Name of supplier	Purchase amount	total purchase amount
		(RMB)
1	Supplier 1	1,037,495,699.62	8.54%
2	Supplier 2	869,987,653.45	7.17%
3	Supplier 3	498,168,530.17	4.10%
4	Supplier 4	445,867,488.94	3.67%
5	Supplier 5	354,077,956.52	2.92%
Total	—	3,205,597,328.70	26.40%

Other information about the main suppliers

□ Applicable � Not Applicable

3. Expenses

Unit: RMB

			Year-on-year
			increase/	Description of
	2015	2014	decrease	material changes
Sales expenses	693,511,364.21	638,071,318.92	8.69%
Management expenses	922,634,484.07	719,321,145.66	28.26%	It is primarily because
				the increased regional
				expansion and
				development projects in
				the current period led
				to increase in employee
				remuneration and
				management cost
Financial expenses	268,251,960.03	162,979,839.75	64.59%	It is primarily because
				of increase in
				interest-converted
				expense after
				completion of
				construction of projects
				in the current period

— 592 —

APPENDIX III

MANAGEMENT DISCUSSION AND ANALYSIS OF JINKE PROPERTY

4. R&D investment

□ Applicable � Not Applicable

1. Cash flow

			Unit: RMB
			Year-on-year
			increase/
Item	2015	2014	decrease
Subtotal of cash inflows from	27,149,506,802.23	24,494,383,530.50	10.84%
operating activities
Subtotal of cash outflows for	26,737,236,774.52	32,879,146,530.58	-18.68%
operating activities
Net cash flows from operating	412,270,027.71	-8,384,763,000.08	104.92%
activities
Subtotal of cash inflows from	67,189,911.11	565,873,679.63	-88.13%
investing activities
Subtotal of cash outflows for	1,032,413,767.65	1,246,748,737.74	-17.19%
investing activities
Net cash flows from investing	-965,223,856.54	-680,875,058.11	-41.76%
activities
Subtotal of cash inflows from	31,622,219,872.03	31,692,592,094.80	-0.22%
financing activities
Subtotal of cash outflows for	28,907,244,532.75	21,534,485,363.70	34.24%
financing activities
Net cash flows from financing	2,714,975,339.28	10,158,106,731.10	-73.27%
activities
Net increase in cash and cash	2,162,021,510.45	1,092,468,672.91	97.90%
equivalents

Description of main reasons for material year-on-year changes in relevant data

� Applicable □ Not Applicable

Increase in net cash flows from operating activities is primarily due to increase in sales proceeds and decrease in land expense; decrease in net cash flows from investing activities is primarily due to decrease in cash received in the investment recovered in the current period; increase in subtotal of cash outflows for financing activities is primarily due to increase in repayment of loans in the current period; decrease in net cash flows from financing activities is primarily due to increase in repayment of loans in the current period;

— 593 —

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MANAGEMENT DISCUSSION AND ANALYSIS OF JINKE PROPERTY

Description of reasons for big difference between the Company’s net cash flows from operating activities in the reporting period and net profit in the current year

□ Applicable � Not Applicable

III. Analysis of non-main businesses

□ Applicable � Not Applicable

IV. Assets and liabilities

1. Material changes in asset composition

Unit: RMB

	End of 2015	End of 2015	End of 2014	End of 2014
	Percentage		Percentage		Increase/
		in total		in total	decrease in	Description of
	Amount	assets	Amount	assets	percentage	material changes
Monetary fund	9,389,188,261.83	9.83%	7,527,131,604.31	9.17%	0.66%
Accounts receivable	729,045,821.34	0.76%	709,008,179.14	0.86%	-0.10%
Inventories	72,163,859,948.41	75.52%	62,262,559,625.16	75.87%	-0.35%
Investment properties	2,888,950,566.79	3.02%	2,905,436,061.00	3.54%	-0.52%
Long-term equity	391,087,261.46	0.41%	336,774,746.08	0.41%	0.00%
investments
Fixed assets	2,528,455,846.44	2.65%	1,132,931,471.61	1.38%	1.27%
Construction in	158,257,610.66	0.17%	653,283,292.96	0.80%	-0.63%
progress
Short-term borrowings	1,881,600,000.00	1.97%	2,206,670,000.00	2.69%	-0.72%
Long-term borrowings	13,294,059,999.99	13.91%	21,311,210,000.00	25.97%	-12.06%	It is primarily
						because the
						long-term
						borrowings maturing
						within one year was
						stated as non-current
						liabilities maturing
						within one year at
						the beginning of the
						year
Non-current liabilities	18,099,147,400.00	18.94%	8,831,319,600.00	10.76%	8.18%	Same as above
maturing within one
year
Bonds payable	5,313,257,329.71	5.56%	0.00	0.00%	5.56%	It is primarily
						because of issuance
						of bonds by the
						Company in the
						current period

— 594 —

APPENDIX III

MANAGEMENT DISCUSSION AND ANALYSIS OF JINKE PROPERTY

2. Assets and liabilities measured at fair value

• Applicable □ Not Applicable

Unit: RMB

		Gains/losses		Provision for
		from change	Cumulative	depreciation
	Amount at the	in fair value	changes in fair	withdrawn in	Purchase	Sales amount	Amount at
	beginning of	in the current	value stated	the current	amount in the	in the current	the end of
Item	the period	period	as equity	period	current period	period	the period
Financial assets
Investment properties	2,905,436,061.00	39,863,547.99	620,872,917.24				2,888,950,566.79
Total	2,905,436,061.00	39,863,547.99	620,872,917.24				2,888,950,566.79
Financial liabilities	0.00						0.00

Whether material changes appeared in the measurement attributes of the Company’s major assets in the reporting period

□ Yes � No

V. Investment

I. Overview

• Applicable □ Not Applicable

Investment in the Investment in the same reporting period period of the preceding year Change (RMB) (RMB) 748,817,400.00 10,000,000.00 7,388.17%

1. Major equity investments obtained in the reporting period

2. Applicable � Not Applicable

3. Major ongoing non-equity investments in the reporting period

4. Applicable � Not Applicable

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MANAGEMENT DISCUSSION AND ANALYSIS OF JINKE PROPERTY

4. Financial assets investment

• (1) Securities investment

□ Applicable � Not Applicable

The Company did not make any securities investment in the reporting period.

(2) Derivatives investment

□ Applicable � Not Applicable

The Company did not make any derivatives investment in the reporting period.

5. Use of raised funds

• Applicable □ Not Applicable

(1) General use of raised funds

• Applicable □ Not Applicable

Unit: RMB’0,000

								Percentage of
						Total amount	Accumulated	accumulated			Amount of
				Total amount	Total amount	of raised funds	total amount	total amount		Intended use	raised funds
				of raised funds	of raised funds	with purpose	of raised funds	of raised funds	Total amount	and direction of	that have been
**Year **	of	Way of	Total amount	used in the	accumulatively	changed in the	with purpose	with purpose	of raised	raised funds	laid idle for
**fund **	raising	fund raising	of raised funds	current period	used	reporting period	changed	changed	funds unused	unused	over two years
2014		Non-public	217,233.28	52,643.22	141,828.43	0	0	0.00%	75,404.85	Deposited in the	0
		issuance of								special account
		ordinary shares								for raised funds
Total		—	217,233.28	52,643.22	141,828.43	0	0	0.00%	75,404.85	—	0

Description of general use of raised funds

• (I) Actual amount of raised funds and time when the raised funds arrived at the account

Upon approval by China Securities Regulatory Commission in Document Zheng Jian Xu Ke [2014] No. 987, the Company non-publicly issued 220 million RMB ordinary shares (A shares) to specific targets via its lead underwriter Essence Securities Co., Ltd. (hereinafter referred to as Essence Securities). The issuance price was RMB10.00 per share and RMB2,200 million was raised in total.

— 596 —

APPENDIX III

MANAGEMENT DISCUSSION AND ANALYSIS OF JINKE PROPERTY

After the underwriting fee and sponsorship fee of RMB26.2 million were deducted, the raised funds came to RMB2,173.8 million, which was remitted by the lead underwriter Essence Securities to the Company’s account for supervision of raised funds on 5 December 2014. Moreover, after deduction of increased external expenses of RMB1.4672 million directly relating to issuance of equity securities including accountant’s fee and lawyer’s fee, the net raised funds of the Company amounted to RMB2,172.3328 million this time. The abovementioned raised funds have been verified by Pan-China Certified Public Accountants (special general partnership), which has issued a Capital Verification Report (Tian Jian Yan [2014] No. 8-57).

(II) Use and balance of raised funds

The raised funds used by the Company in previous years reached RMB891.8521 million, including RMB795.3554 million used for temporary supplement of working capital. The net amount of bank interest received after deduction of bank charges in previous years was RMB0.3476 million. In 2015, the raised funds actually used by the Company amounted to RMB526.4322 million, the raised funds of RMB795.3554 million that had been used for temporary supplement of working capital in previous years were recovered, and the net amount of bank interest received after deduction of bank charges was RMB2.1436 million in 2015. The raised funds accumulatively used came to RMB1,418.2843 million and the net amount of bank interest accumulatively received after deduction of bank charges was RMB2.4912 million. As at 31 December 2015, the balance of raised funds was RMB756.5397 million (including net amount of bank interest accumulatively received after deduction of bank charges).

(2) Information about projects to be invested in with raised funds

� Applicable □ Not Applicable

Unit: RMB’0,000

			Whether the						Date when			Whether
			projects are		Total	Amount	Accumulated	Investment	the projects	Benefits		material
			changed	Total amount	investment	invested	amount	progress as	reach the	achieved	Whether the	changes
**Projects **		to be invested in	(including	of raised	after	in the	invested as at	at the end of	intended	in the	anticipated	appear in
and investment direction			partial	funds to be	adjustment	reporting	the end of the	the period	condition	reporting	results are	project
**of **	over-raised funds		change)	invested	(1)	period	period (2)	(3)＝(2)/(1)	for use	period	achieved	feasibility
Projects		to be invested in
1.		Chongqing • Jinke	No	118,490.88	118,490.88	40,116.74	73,393.04	61.94%	31 October	50,610.35	Note	No
		Kaizhou Wealth							2016
		Center
2.		Chongqing • Jinke	No	98,742.40	98,742.40	12,526.48	68,435.39	69.31%	30 June 2016	12,890.41	Note	No
		Jiangjin World City
Subtotal		of projects to be	—	217,233.28	217,233.28	52,643.22	141,828.43	—	—	63,500.76	—	—
	invested in
Total			—	217,233.28	217,233.28	52,643.22	141,828.43	—	—	63,500.76	—	—

— 597 —

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MANAGEMENT DISCUSSION AND ANALYSIS OF JINKE PROPERTY

Failure to reach planned progress or Not applicable anticipated results and the reasons (specific project) Description about material changes Not applicable in project feasibility Amount, purpose and use progress Not applicable of the over-raised funds

Change in place of implementation Not applicable of projects invested in with raised funds

Adjustment of method for Not applicable implementation of projects invested in with raised funds

Up-front cost and replacement of Applicable projects invested in with raised funds On 22 December 2014, the 13th meeting of the 9th board of directors of the Company deliberated and approved the Proposal on the Company’s Use of Raised Funds to Replace the Self-collected Funds Previously Invested in the Projects and the Company was approved to use the raised funds to replace the self-collected funds of RMB869.3974 million previously invested in the projects.

Applicable

Temporary supplement of working Upon deliberation and approval by the 13th meeting of the capital with idle raised funds 9th board of directors of the Company held on 22 December 2014, the Company was approved to use idle raised funds of not more than RMB800 million (inclusive) to temporarily supplement working capital for not more than 12 months and the amount used for temporary supplement of working capital was RMB795.3554 million. As at 22 December 2015, the Company had successively recovered the raised funds of RMB795.3554 million used for temporary supplement of working capital in 2014.

• Amount of surplus raised funds in project implementation and the reasons

Not applicable

— 598 —

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MANAGEMENT DISCUSSION AND ANALYSIS OF JINKE PROPERTY

Intended use and direction of raised As at 31 December 2015, the Company had two special funds unused accounts for raised funds and the raised funds were deposited as follows:

Unit: RMB

Balance of Issuing bank Bank account No. raised funds Notes Agricultural Bank of China 31440801040003823 452,961,564.92 Used for the project Limited, Chongqing Kaixian of Chongqing Kaixian Ankang Sub-branch • Jinke Wealth Center Business Department of 7421010182600453565 303,578,170.49 Used for the project Chongqing Branch of China of Chongqing • Jinke CITIC Bank Jiangjin World City Total 756,539,735.41 Problems or other conditions in use Notes: 1. As Chongqing • Jinke Kaizhou Wealth Center and and disclosure of raised funds Chongqing • Jinke Jiangjin World City were developed and delivered houses by stages, the date when the projects reach the intended condition for use herein is the date when construction of the building is completed and which is the closest to the balance sheet date.

1. As Chongqing • Jinke Kaizhou Wealth Center and Chongqing • Jinke Jiangjin World City were developed and delivered houses by stages and only some houses were sold in the current period, it is difficult to judge whether the anticipated benefits are achieved before a comparison is made between the achieved results and the anticipated results after the projects invested in with raised funds sell out all houses.

(3) Changes in use of raised funds

• Applicable � Non-Applicable

There was no change in use of raised funds of the Company during the reporting period.

VI. Sale of material assets and stock rights

1. Sale of material assets

□ Applicable � Non-Applicable

The Company did not sell any material assets during the reporting period.

— 599 —

APPENDIX III

MANAGEMENT DISCUSSION AND ANALYSIS OF JINKE PROPERTY

												Disclosure index		Www.cninfo.com.cn;	announcement No.:	2015-008
											Date of	disclosure		7 February	2015
			Has the	selling	proceeded as	scheduled; if	not, please	explain the	reason and	the measures	taken by the	Company		Yes
							Have all	stock rights	involved	been	transferred	ownership		Yes
									Connected	relation	with the	counterparty		An enterprise	controlled by	the connected	person
										Is it a	connected	transaction		Yes
									Pricing	principle of	stock right	selling		Negotiated	pricing
					Proportion	of net profit	brought by	the selling to	Effect of the listed	the selling company in	on the total net	Company profit		This selling 2.55%	had no effect	on the	Company’s	business	continuity	and	management	stability; this	stock right	transfer	generated	RMB41,991,300	of proceeds.
2. Sale of material stock rights	�Applicable □Non-Applicable	Net profit	brought by	the stock	right to the	listed	company	from the	beginning of	this period	Target Transaction to the	Counterparty stock right Trading day price trading day	(RMB’0,000) (RMB’0,000)	Chongqing 47.62% stock 12 January 5,990 199.75	Zhongke rights of 2015	Holdings Chongqing	Co., Ltd. Zhanhe	Agriculture	Development	Co., Ltd.

— 600 —

APPENDIX III

MANAGEMENT DISCUSSION AND ANALYSIS OF JINKE PROPERTY

VII. Analysis of major holding and shareholding companies

� Applicable □ Non-Applicable

Information about major subsidiaries and shareholding companies contributing more than 10% of the Company’s net profit

Unit: RMB

Company Major Registered Operating Operating Company name type business capital Total assets Net assets revenue profit Net profit Chongqing Jinke Real Estate Subsidiary Real estate 20,000,000.00 6,379,439,825.24 287,479,325.81 58,242,821.94 194,596,329.69 191,398,809.07 Development Co., Ltd. Chongqing Jiangjin Jinke Subsidiary Realestate 100,000,000.00 3,671,543,311.20 1,142,706,546.60 986,256,585.92 200,124,457.02 164,581,104.69 Guojun Real Estate Co., Ltd. Chongqing Jinke Xingju Real Subsidiary Realestate 30,000,000.00 3,936,345,179.38 662,391,271.35 1,994,075,846.55 579,539,903.39 482,952,086.48 Estate Co., Ltd. Chongqing Jinke Junyao Real Subsidiary Realestate 200,000,000.00 5,493,483,841.40 2,656,392,760.02 2,699,076,547.85 909,629,175.62 771,195,972.26 Estate Development Co., Ltd. Beijing Jinke Hongju Real Subsidiary Realestate 198,000,000.00 1,061,564,870.83 869,250,637.57 1,388,227,096.51 258,877,882.14 194,539,255.18 Estate Co., Ltd. Chongqing Jinke Chenju Real Subsidiary Realestate 20,000,000.00 1,755,724,489.90 -262,574,142.54 1,100,236,916.00 -187,169,587.36 -225,621,590.85 Estate Co., Ltd. Jinke Bailexing Real Estate Subsidiary Realestate 50,000,000.00 634,528,178.12 -56,243,436.00 222,843,960.87 -133,704,795.17 -136,804,977.78 Co., Ltd. (Wansheng Economic and Technological Development Zone, Chongqing) Liuyang Jinke Real Estate Co., Subsidiary Realestate 50,000,000.00 1,205,365,972.63 -152,008,250.61 46,562,147.33 -141,868,073.06 -156,525,476.19 Ltd.

Acquirement and disposal of subsidiaries during the reporting period

� Applicable □ Non-Applicable

Method of acquiring and disposing of subsidiaries Company name during the reporting period

Effect on overall production & operation and business performance

Zhengzhou Xinyinke Real Estate Equity transfer No material effect Co., Ltd. Anhui Guorun Electronic Equity transfer No material effect Technology Co., Ltd.

— 601 —

APPENDIX III

MANAGEMENT DISCUSSION AND ANALYSIS OF JINKE PROPERTY

	Method of acquiring and	Effect on overall production
	disposing of subsidiaries	& operation and business
Company name	during the reporting period	performance
Chongqing Zunda Property	Equity transfer	No material effect
Management Co., Ltd.
Xinjiang Jinke Yijia Real Estate	New establishment	No material effect
Development Co., Ltd.
Chongqing Jinke Wuchen Real	New establishment	No material effect
Estate Development Co., Ltd.
Chongqing Jinke Zhuchen Real	New establishment	No material effect
Estate Co., Ltd.
Jinke Group Suzhou Dongjun	New establishment	No material effect
Real Estate Development Co.,
Ltd.
Qingdao Yuhua Jinke Real Estate	New establishment	No material effect
Development Co., Ltd.
Chongqing Jinke Jiahan Real	New establishment	No material effect
Estate Development Co., Ltd.
Suining Jinke Dongjun Real	New establishment	No material effect
Estate Development Co., Ltd.
Hunan Jinke Yida Industrial	New establishment	No material effect
Development Co., Ltd.
Changsha Jingke Real Estate Co.,	New establishment	No material effect
Ltd.
Jinan Xingsheng Business	New establishment	No material effect
Management Co., Ltd.
Chengdu Lexiang Century Hotel	New establishment	No material effect
Management Co., Ltd.
Lexiang Century Commercial	New establishment	No material effect
Management Co., Ltd.
Tianjin Bozhi Real Estate Co.,	Cancellation	No material effect
Ltd.

VIII. Structured entities controlled by the Company

□ Applicable � Non-Applicable

IX. Future prospects of the Company

1. Industry structure and trend

(1) Real estate business

Against the background of continuous national economic growth, relatively low urbanization level and continuously increasing per capita disposable income, the real estate industry is still an

— 602 —

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MANAGEMENT DISCUSSION AND ANALYSIS OF JINKE PROPERTY

important pillar industry in China. Data from the National Bureau of Statistics revealed that urbanization rate of China’s resident population increased from 52.57% in 2012 to 56.1% in 2015. According to the development goal set out in the National New Urbanization Plan (2014-2020) , urbanization rate of China’s resident population is expected to reach approximately 60% and that of registered population will reach approximately 45%, which means there is still great development potential for the real estate industry. The industry will see more development opportunities if our urbanization rate of resident population is to reach the 80% in developed countries.

Since the second half of 2014, especially in 2015, the government launched a series of policies in favour of the real estate industry including “targeted RRR cuts” “five house loan policies of the Central Bank”, “9.30 New House Loan Policy”, “reduction of interest and reserve ratio”, “adjustment of business tax and deed tax policies”, “reduction of minimum down payment ratio for first and second houses”, etc., making house purchase easier for home buyers and stimulating house purchase demands. Meanwhile, various local governments have eased the home purchase restrictions and adjusted the tax policies to provide a favourable housing consumption market environment and promote sustained and sound development of the real estate industry.

In 2016, the first year of China’s “13th Five Year Plan” for national economic and social development, the government, at the Central Economic Working Conference, put “real estate destocking” as one of the five major economic tasks this year. To cut the housing inventory, efforts should be made to accelerate citizenization of migrant workers, expand effective demands, open up the supply and demand channel and stabilize the real estate market in compliance with the requirements of quickening the pace of increasing the urbanization rate of registered population and deepening housing system reform.

The central government in its 2016 Work Report urged to deepen the promotion of new-style urbanization. First, it will move faster to see that urban residency is granted to more people with rural household registration living in urban areas. It will deepen reform of the household registration system and relax restrictions on eligibility for urban residency. It will introduce policies for making both the transfer payments and the land designated for urban development granted to the government of a local jurisdiction conditional upon the number of people with rural household registration who are granted permanent urban residency in that jurisdiction. The full range of trials for developing new urbanization will be extended to more areas. It will promote the development of small towns and small and medium-sized cities in the central and western regions to help more rural migrant workers find employment or start businesses in urban areas closer to home so that they do not have to choose between earning money and taking care of the families they leave behind. Second, the government will promote the construction of government-subsidized housing in urban areas and the healthy development of the real estate market. This year, we will see to it that six million housing units are rebuilt in rundown urban areas and that more people displaced by the rebuilding of such areas receive monetary housing compensation rather than housing. Taking into consideration people’s demand for buying homes or improving their housing situation, the government will improve the tax and credit policies to support justified personal housing consumption and adopt different policies in different cities as appropriate to their local conditions in order to cut housing inventory. The government will put in place a housing system which encourages both renting and purchasing and, over time, enable eligible non-registered urban residents to apply for public rental housing.

— 603 —

MANAGEMENT DISCUSSION AND ANALYSIS OF JINKE PROPERTY

APPENDIX III

Against such a background, the Company predicts that this year will see more relaxed real estate industrial policies, a continuously recovering market, high sales and steadily rising housing prices amid expanding regional differentiation of housing demands.

(2) Integrated community service

After years of rapid development, China’s real estate industry has gradually entered an age of stock property instead of increment property, bringing increasing opportunities for “integrated community services” in the post real estate market. On the one hand, current population structure determined that communities will be major places of consumption in the future. According to incomplete statistics, as of 2016 the number of China’ post-80s and post-90s will reach 390 million. As this social group reaches their childbearing age, families will be major spending units and communities will be major places of consumption. Moreover, with the old-age population expanding rapidly, by 2020 there will be more than 300 million people aged 60 or above in China; as the elderly are generally more dependent on the community, it is expected that communities will soon replace downtown to be more convenient places of consumption.

On the other hand, the property services market is huge and remains to be integrated. According to the statistics, China’s total living space recorded 16.5 billion square meters in 2014. Despite such a huge market, domestic property services industry is still at its initial stage and lacks industry concentration. Few brands stand out among over 100,000 property management companies and top 50 companies in the industry occupies a market share of mere 5.6%, far lower than that (approximately 30%) of North American property management companies.

Meanwhile, technological conditions are mature for upgrading pure property management services to integrated community services. Thanks to the wide availability of mobile Internet and the development of cloud computation and big data, some technological platform companies are in full swing and market is mature for acquisition, making it possible for traditional property management companies to transform into new-type integrated community services providers.

Though property management companies are developing toward the direction of large scale, intensification and branding, most property management companies including some of the top 100 enterprises still pursue a traditional property management mode. There is huge market potential for integrated community services and industry concentration remains to be increased. Now it is the crucial time for enterprise integration and brand building.

(3) New energy business

With the deterioration of global warming and China’s hazy weather, a consensus has been reached on increasing investment in clean and renewable energy. In recent years, many countries including China have introduced a series of policies supporting new energy development.

As planned by relevant departments, by 2020 China’s total installed power generating capacity will reach 2.55 billion kW, 1.88 times that of the country’s total installed capacity (1.36 billion kW) by the end of 2014; at the same time the state will further optimize the energy structure; by 2020 the

— 604 —

APPENDIX III

MANAGEMENT DISCUSSION AND ANALYSIS OF JINKE PROPERTY

percentage of wind power generation is expected to reach 11% and installed capacity of wind-driven power will increase to 200 million kW from over 96 million kW in 2014; the percentage of photovoltaic power generation is expected to reach 5% and PV installed capacity will increase to 100 million kW from 28 million kW in 2014.

Although in 2015 new energy power generation was restricted in some areas for some reasons, new energy promises broad development potential. In its 2016 Work Report, the central government pointed out that it would support the development of wind energy, solar energy and biomass energy to increase the proportion of clean energy. In March 2016, the National Energy Administration issued the Notice on Further Implementing Relevant Requirements on 2016 Wind Power Consumption Work, requiring various provincial development and reform commissions and energy bureaus to fully understand the importance and urgency of grid connection and consumption of wind power, conscientiously implement the system of guaranteeing the purchasing of electricity generated by using renewable energy sources in full amount, dig into the potential of systematic wind power consumption and actively explore wind power heating and other wind power consumption methods.

2. Future development strategies

According to the national macroeconomic situation and industry trends, the Company will quicken the pace of upgrading and transformation, make great efforts to develop modern service industry relying on new real estate and new energy and provide users with “real estate + integrated community services”, in a bid to develop into a “high quality life service provider” in China. The Company plans to realize three strategic changes in the future. First, at the level of product, shift the focus of attention from house (basic housing demand) to community (habitability), realizing a change of business cycle from 5 years to 65 years; second, at the level of users, shift from one-off consumption to continuous consumption, turning customers to residents and to users and members (fans); third, at the enterprise level, transform from a real estate developer into a integrated community service provider, realizing a change from asset-heavy investment to asset-light operation.

With respect to new real estate, firstly, the Company will make greater efforts to innovate and enhance its housing real estate business. On the one hand, it will speed up product renewal based on users’ needs. Great efforts will be made to develop green housing projects and more new materials and environmental friendly materials and equipment will be used to provide higher residential satisfaction. The company will also expand the application of intelligent equipment and terminals and strive to build an intelligent development system and big data platform. On the other hand, the Company will properly adjust its business layout and product structure, consolidate its existing strengths and ensure steady increase in business size and performance, so as to lay a solid foundation for upgrading and transformation. Secondly, the Company will realize “real estate + industry” linkage. On the one hand, giving full play to its expertise in real estate development, develop multi-theme and mixed-type projects in connection with the health industry, scientific and technological industry and culture & tourism industry. On the other hand, by means of community demand diversion, financial and policy support, industry chain linkage, etc., open up the B2C supply & demand channel, adhere to the concept of win-win cooperation, and actively develop industrial enterprises. With respect to industrial park management, strive to improve follow-up operation and service capacity and provide all-round supporting services for industrial parks. Thirdly, the Company will upgrade traditional property

— 605 —

APPENDIX III

MANAGEMENT DISCUSSION AND ANALYSIS OF JINKE PROPERTY

management companies to “integrated community service providers” and establish a complete closed-loop value system centering on “big membership, big consumption and big finance”. On the one hand, effectively and rapidly expand the property management area, build a massive resident base, and establish a systematic big data platform based on family archives. On the other hand, strengthen opening up and cooperation of various businesses, work with excellent external businesses to build an ecological community service circle, and realize intensified and vertical development of community education, community health care, community old-age security, community finance and other areas, striving to become an industry magnate with full earning power.

With regard to regional strategic layout of new real estate businesses, stick to the state’s urban agglomeration development strategy and adopt a regional development strategy of “making stronger presence in Chongqing, expanding business in East China and North China, and ensuring stable business development in the Midwest”.

With regard to new energy, focus on wind power and photovoltaic power generation, seek development opportunities in new fields such as solar-thermal (film) power generation, and steadily develop new energy businesses via merger & acquisition and new establishment, striving to become a technological and service innovative clean energy provider.

3. 2016 business plans

In 2016, the Company will take the initiative to embrace changes, adapt to the new normal economy, maintain strategic strength, speed up the transformation and upgrading, deepen reform and innovation, optimize the strategic layout, speed up destocking, adjust product structure, and increase scale and profits. Main business plans in 2016 are as follows:

• (1) In respect of real estate business, the Company plans to log newly started GFA of about 4 million square meters, completed GFA of about 6.1 million square meters, and GFA under construction of about 11 million square meters by the end of 2016. The contracted sales amount is expected to reach about RMB28 billion in 2016 (including non-real estate sector).

• (2) In respect of project development, in 2016, the Company will increase land bank with total capacity buildable area of about 3.5 million square meters, and invest about RMB10 billion in land projects. First, “focus on second-tier cities, selectively expand into first-tier cities and key third-tier cities, and gradually exit fourth-tier cities”; put more weight on “10 core cities”, and strive to enter Shanghai, Tianjin, Zhengzhou, Nanjing and Wuhan (now projects in Zhengzhou and Nanjing have been put into operation) on the basis of strengthening and expanding the market in Chongqing, Suzhou, Beijing, Chengdu and Hefei. Second, implement the “name list” management for cities that the Company will enter. Third, fully implement strategic alliance, strategic cooperation and strategic merger and acquisition. Fourth, improve the bidding capacity at land auctions. Fifth, steadily develop joint-venture partnership. Sixth, actively explore innovative cooperation models. Seventh, start the demonstration of “going out” development strategy, and actively seek overseas real estate development opportunities.

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• (3) In respect of marketing, take destocking and higher profits as central tasks of marketing. First, implement classified management over projects, and develop differentiated marketing strategies for hot-selling projects, main selling projects, slow-selling projects, difficult projects, and remaining projects. Second, keep destocking. Take the supply-side reform as the starting point to optimize the function and use of stock properties. For example, according to the market situation, change the commercial buildings into housing or offices and hotels, or change offices and hotels into apartments, etc., that is, change stocks into marketable products. Pay close attention to subsidy and preferential policies for citizenization of migrant workers and speed up destocking in the third- and fourth-tier cities. Third, firmly implement the consumption-based marketing model, and fully implement the organizational guarantee of “big marketing, big planning and big background”.

• (4) In respect of funds, speed up recovering sales proceeds, expand the scale of direct financing and reduce financing cost to ensure the safety of capital chain. While taking various initiatives to strengthen recovering sales proceeds and loan financing for development of projects, the Company will give priority to the following work: First, do everything possible to facilitate the reporting and examination of a new round of private equity placement and issue shares at an appropriate time upon approval; second, make full use of corporate bonds and medium-term notes to replace the short-term nonbank financing with high up-front costs, so as to effectively adjust the liability structure; third, create innovative modes of financing, actively promote asset securitization, and study convertible bonds, preferred shares and other new models; fourth, set up an industry fund when appropriate and participate in land reclamation projects, industrial park projects, projects for renovating shantytowns, old houses and dilapidated houses, and government PPP projects in first-tier cities.

• (5) In respect of products, give priority to rigid demand, improve quality and gradually adjust the structure of high-end customers from 7:2:1 to 5:4:1. Intensify efforts in innovation and R&D of marketable products and continue to promote standardization of products. Take green real estate as the standard, use the Internet and IoT technologies to enhance the level of smart home, and vigorously promote the use of new materials, new equipment and green technologies, to build new core competitiveness in the residential area. Build “humanized community”, and based on users’ sensitive demand, form implementation standards for “Jinke • Beautiful Home”. Accelerate the building of fine decoration standard system, focus on building “Smart Community” and build community supporting system. In addition, the Company will also put forth effort to improve its operation management, strengthen project supervision and improve its capacity in controlling costs of projects.

• (6) Accelerate the development of integrated community service. First, insist on providing good property services, do a solid job in sanitation work, security, maintenance and other basic services to improve the owner service satisfaction, and lay a solid foundation for integrated community services. Second, vigorously promote the intelligent management system and technical equipment for communities, establish and improve community O2O platform and build big data of community services, so as to build a powerful Internet

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MANAGEMENT DISCUSSION AND ANALYSIS OF JINKE PROPERTY

platform for integrated community service. Third, rapidly expand property service area with quality, and expand the basic property service area by way of entrusted management, equity cooperation, mergers and acquisitions, etc. Fourth, speed up the implementation of vertical businesses, e.g. community education and community health care, open integrated community service platform, and create a rich and diversified community service ecosystem.

• (7) Steadily push forward the development of new energy business. First, speed up the construction of Jingxia 200MW wind power farm and strive to achieve grid-connected power generation in 2016. Second, strengthen management on existing grid-connected projects, strive to solve the problem of wind power curtailment and rationing, and comprehensively improve the project’s business performance. Third, use the platform of new energy industry fund to enhance the industrial incubating and nurturing capacity, thus accelerating the early landing of new projects.

• (8) Make garden and other business sectors bigger and stronger. Speed up the structural adjustment of garden business, intensify the linkage with real estate projects, and aggregate municipal garden construction and ecological governance businesses to improve profitability. In respect of hotel sector, enhance five-star hotel brand, create innovative hotel management strategies, expand diversified consumer markets, and make all-out efforts to promote the operation and building of service apartments. Further improve the management model and mechanism of garden and other sectors, complete the restructuring of relevant subsidiaries, and actively study capital operations like listing on the New Third Board.

• Analysis on risks faced by the Company

• (1) Policy risks

In respect of the real estate business, the state has introduced a series of regulatory policies in recent years to guide and promote the sustainable, stable and healthy development of the real estate industry. Although relevant regulatory policies have signs of warming this year, they still have a direct impact on the operation and development of real estate development enterprises. If the Company cannot adapt to the changes in state policies, they may have a negative impact on the operation and development of the Company.

In respect of the new energy business, China’s new energy industry has been developing by leaps and bounds in recent years, which largely benefited from substantial support from the state for the renewable energy industry, especially for wind power and photovoltaic industry in respect of feed-in tariff protection, compulsory grid connection, compulsory purchase of electricity and various preferential tax policies. If state policies in support of wind power, photovoltaic and other relevant new energy industries weaken in the future, the Company’s revenues from new energy projects may decline.

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APPENDIX III

(2) Management risks

As a large real estate development enterprise, the Company has formed mature systems for development of real estate projects, operating model and management, and cultivated a high-quality business team. The Company is in the fast-growing period with business scale expanding continuously, which puts forward higher requirements for its management capacity. If the Company’s human resource guarantee, risk control, project management, project development and capital chain control cannot meet the requirements of business expansion, the Company will face some management risk.

At the same time, the Company is increasing investment in the new energy industry. The new energy industry is a resource-based and capital-intensive industry, and has much in common with the Company’s real estate industry in business model, but as a newly developed business, if the Company cannot make appropriate adjustments in talent pool, management philosophy and organizational structure, it may still face some management risk.

(3) Operational risks

The Company may face operational risks in its operating process, e.g. greater difficulties in the development of real estate projects and shrinking profitability of projects due to external factors including changes in prices of products and raw materials, adjustment in urban planning. If the Company cannot properly solve the above problems in a timely manner, they may have some impact on the Company’s business performance.

At present, the Company’s wind farms are mainly concentrated in Hami, Xinjiang, with the generated electricity transported to Henan mainly through Minan - Zhengzhou HVDC transmission line that operates at �800 kV. The building and operation of the Company’s wind power projects are likely to be adversely affected by any changes in the wind conditions in Hami, transmitting capacity of grid and grid companies’ implementation of state policies, or increase in “wind power curtailment and rationing”, or even changes in the natural environment surrounding the project.

At present, wind power projects which have been put into operation are subject to uniform dispatch in power grid. Adjusting the generating capacity according to the dispatching instruction is a prerequisite for all power generation enterprises to operate in grid-connected mode. As wind resources cannot be stored, some wind resources of wind power generation enterprises are underutilized due to “power rationing”, which is known as “wind curtailment”. According to the Preliminary Statistics of Wind Power Brownouts for 2011 , 2012 China Wind Power Construction Statistics Evaluation Report , 2013 China Wind Power Construction Statistics Evaluation Report , and the Monitoring of Wind Power Industry in 2014 and the Development of Wind Power Industry in 2015 released by the National Energy Administration in 2014 and 2015, the ratio of “wind power curtailment and rationing” in Xinjiang from 2011 to 2015 was 5.20%, 4.29%, 5.23%, 15% and 32%, respectively. Grid-connected generation depends on many factors, e.g. the transmission capacity of local grid, local power consumption capacity, etc. Therefore, if relevant grid companies ration the power supply of the Company’s wind power projects due to changes in the overall load of local grid, it will adversely affect the Company’s revenue.

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MANAGEMENT DISCUSSION AND ANALYSIS OF JINKE PROPERTY

(4) Risk of market competition

The development of new energy projects, e.g. wind power and photovoltaic power generation, is, to a large extent, subject to the wind energy, solar energy and other scarce resources in limited areas and specific locations, and local grid transmission capacity. At present, the competition in the wind power, photovoltaic power generation and other new energy industries mainly exists in obtaining the right to develop and operate new wind power farms and photovoltaic power stations, and the acquisition of existing high-quality new energy projects. Enterprises engaging in new energy like wind power and photovoltaic, obtain the right to develop new energy projects in specific periods and areas in the form of agreement after consultation with local governments. Therefore, the market for development of new energy projects in areas with abundant wind power and solar energy and sufficient electricity transmission capacity or acquisition of high-quality projects is highly competitive.

China’s renewable energy, including wind, solar, hydro, biomass, geothermal and ocean energy, enjoys relevant incentives from the government, e.g. feed-in tariff subsidies and prior connection to the grid. If the state continues to increase policy support for other renewable energy in the future, the Company may also face the fierce competition from other companies engaging in renewable energy power generation. Wind power industry is also facing competition from traditional energy power generation industries, including coal, natural gas and fuel. The price decline caused by technical improvement in the exploitation of traditional energy or exploration of abundant energy reserves may bring down the cost of traditional energy power generation companies, thus affecting the wind power industry.

(5) Financial risk

Both real estate development industry and new energy industry are capital-intensive industries which involve massive investments in the land acquisition and project development process. Investment in project development will increase along with the expanding business scale of the Company. The project development fund of the Company comes from the Company’s own capital and external financing by way of bank loan, issuance of securities, etc. Any material change or adjustment in the national macroeconomic situation, credit policy and capital market may constrain the Company’s financing or raise the costs of financing, which has a negative impact on the Company’s production and operation.

The Company has expanded quickly in recent years, with substantial investment in the real estate and new energy projects. If fluctuations in the real estate market have a negative impact on the Company’s recovery of sales proceeds, or if its development of new energy business is slower than expected, the Company may face some pressure of capital turnover and debt risk.

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APPENDIX III

Section 5 Important Events

• XV. Implementation of the Company’s equity incentive plan, employee stock ownership plan or other employee incentive measures

• Applicable □ Not Applicable

On 20 August 2015, the Company convened the 21st meeting of the 9th Board of Directors and deliberated and approved the Restricted Share Incentive Plan (Advance Scheme) of Jinke Property Group Co., Ltd. and other proposals.

On 19 November and 7 December 2015, the 24th meeting of the 9th Board of Directors of the Company and the 8th extraordinary general meeting 2015 deliberated and approved the Restricted Share Incentive Plan (Draft) of Jinke Property Group Co., Ltd. and summary thereof, Measures for Assessment and Management of Restricted Share Incentive Plan of Jinke Property Group Co., Ltd. and other relevant proposals. The Company planned to grant 206.78 million Jinke shares (underlying stocks) to the incentive targets, including 196.44 million shares granted for the first time and 10.34 million shares reserved.

On 9 December 2015, the Company convened the 26th meeting of the 9th Board of Directors, deciding to take 9 December 2015 as the grant date of the incentive shares and to grant 196.44 million restricted shares to 157 qualified incentive targets.

In the course when the Company’s Board of Directors granted restricted shares, some incentive targets waived the right to subscribe for some or all restricted shares for personal reasons. Therefore, the number of incentive targets subject to first grant of the Company’s restricted shares of the incentive plan was reduced from 157 to 147, and the total number of restricted shares was changed from 206.78 million to 201.78 million. In particular, the total number of restricted shares subject to first grant was changed from 196.44 million to 191.44 million. Grant of 5 million shares that the incentive targets waived the right to subscribe for was cancelled and the reserved 10.34 million shares remained unchanged. The restricted shares for grant and registration in this equity incentive plan were registered with Shenzhen Branch of China Securities Depository and Clearing Corporation Limited on 24 December, 2015. The restricted shares for grant were listed on 29 December, 2015.

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1. Connected transactions relating to daily operations	�Applicable □Not Applicable	Percentage Whether Available	Pricing in the the Settlement market	Type of Content of principle of Prices of Amount of amount of Approved approved method of price of	Connection connected connected connected connected connected similar transaction limit is connected similar Date of	Connected party relationship transactions transactions connections transactions transactions transactions limit exceeded transactions transactions disclosure Index of disclosure	(RMB’0,000) (RMB’0,000)	Red Star Enterprise controlled Lease Property Market price Market price 3,995.05 51.50 % 4,000 No Transfer 31 March www.cninfo.com.cn,	Macalline by the effective lease 2015 announcement No.:	controller of the 2015-016	shareholder	China Sciences Enterprise controlled Provision of Provision of Market price Market price 53.50 0.05% 400 No Transfer 31 March	Group by the connected labor labor 2015	person	USUM Associated enterprise Provision of Provision of Market price Market price 3.75 0.003% 500 No Transfer 31 March	Investment labor labor 2015	Group	Jinke Holding Controlling Sale of Sale of Market price Market price 33.65 0.03% 100 No Transfer 31 March	and affiliated shareholders of the commodities commodities 2015	enterprises Company and and	thereof provision of provision of	labor labor	Total — — 4,085.95 — 5,000 — — — — —	Details about large-amount sales returns None	Information about actual performance in the reporting period (if any) The abovementioned daily connected transactions of the Company were carried out in strict accordance with the Proposal on Estimate of the Company’s	if the total amount of daily connected transactions that will occur in Daily Connected Transactions in 2015 deliberated and approved at the annual general meeting 2014, and did not exceed the total amount of daily	the current period is estimated by type connected transactions deliberated and approved at the general meeting.	Reasons for the significant difference between the transaction price None	and market price (if applicable)

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MANAGEMENT DISCUSSION AND ANALYSIS OF JINKE PROPERTY

				Index of	disclosure		www.cninfo.com.cn,	announcement	No. 2014-123,	2015-008
2. Connected transactions resulting from acquisition or sale of assets or equity	�Applicable □Not Applicable	Pricing Settlement	Type of Content of principle of Book value of Appraised method of Transaction	Connection connected connected connected assets value of assets connected gains and Date of	Connected party relationship transactions transactions connections transferred transferred Transfer price transactions losses disclosure	(RMB’0,000) (RMB’0,000) (RMB’0,000) (RMB’0,000)	Chongqing Enterprise controlled Equity sale 47.62% equity Negotiation- 1,790.87 5,019.88 5,990 Transfer 4,199.13 15 November	Zhongke by the connected of Chongqing based pricing 2014 and 7	Holdings Co., person Zhanhe February 2015	Ltd. Agriculture	Development	Co., Ltd.	Reasons for significant difference between the transfer price and the book None	value or appraised value (if any)	Effect on the Company’s operating result and financial position The abovementioned equity transfer contributed an income of RMB41.9913 million.	Achievement of performance in the reporting period if relevant transaction None	involves performance agreement	3. Connected transactions involving joint external investment	□Applicable �Not Applicable	No connected transaction involving joint external investment has occurred as at the end of the reporting period.

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MANAGEMENT DISCUSSION AND ANALYSIS OF JINKE PROPERTY

4. Connected claims and debts

• Applicable □ Not Applicable

Whether there is any non-operating connected claim and debt

• Yes □ No

Debts payable to the connected parties

										Balance of
				Balance of						principal and
				principal at the	Increased		Amount			interest at the
	Connection			beginning of the	amount in the	returned in the			Interest in the	end of
Connected party	relationship	Formation reasons		period	current period	current period		Interest rate	current period	the period
				(RMB’0,000)	(RMB’0,000)		(RMB’0,000)		(RMB’0,000)	(RMB’0,000)
USUM Investment Group	Associated enterprise	Replenishment of		10,500				12.00%	1,260	13,049.8
		funds
Yinhai Leasing	Associated enterprise	Call money		18,500			18,500	9.90%	356.13
Yinhai Leasing	Associated enterprise	Call money		15,000			15,000	9.95%	608.95
Effect of connected debts on the	Company’s operating	1.	The connected debts payable to USUM Investment			Group are funds provided by USUM			Investment Group to Neijiang
result and financial position			Hongjun (the Company’s holding subsidiary) to support				its operation as a minority shareholder of Neijiang Hongjun and have
			no material	effect on the Company’s operating results;

1. The connected debts payable to Yinhai Leasing are funds obtained from the connected party (non-bank financing) according to the Company’s production and operation needs and have no material effect on the Company’s operating result.

5. Other material connected transactions

� Applicable □ Not Applicable

To support the operation and development of the Company and its holding subsidiaries, the Company’s controlling shareholder Chongqing Jinke Investment Holding (Group) Co., Ltd. and effective controllers Huang Hongyun and Tao Hongxia (Huang Hongyun’s wife) agreed to provide financing guarantee (the specific guarantee amount is determined according to the Company’s needs) for the Company’s borrowings from financial institutions in 2015 according to the business needs of the Company and its holding subsidiaries. The Company paid a guarantee fee to them as per a rate of not more than 1% or 0.7% according to specific conditions. Moreover, the Company paid a total guarantee fee of not more than RMB25 million to them in 2015. In the current period, the Company accumulatively paid a financing guarantee fee of RMB25 million to Jinke Investment, Huang Hongyun and his wife Tao Hongxia. (Refer to the Company’s announcement No. 2015-018 for details)

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MANAGEMENT DISCUSSION AND ANALYSIS OF JINKE PROPERTY

Relevant queries on the website for disclosure of interim reports of material connected transactions

Name of interim announcement

Date of disclosure of interim announcement

Name of website for disclosure of interim announcement

Announcement regarding 7 February 2015 progress of transfer of associated companies and connected transactions

Announcement regarding 31 March 2015 payment of guarantee fee to the controlling shareholder and effective controllers and connected transactions

www.cninfo.com.cn

www.cninfo.com.cn

XVII. Important contracts and performance thereof

2. Significant guarantee

• Applicable □ Not Applicable

• (1) Guarantee

In RMB’0,000

External guarantee of the Company and its subsidiaries (excluding guarantee to subsidiaries)

Date of

Date of
disclosure of		Date of actual				Whether the
Name of announcements		occurrence (date			Whether the	guarantee is
the concerning		when the Actual			guarantee is	provided to
guarantee guarantee	Guarantee	agreement is guarantee		Guarantee	fulfilled or	a connected
target limit	limit	signed) amount	Guarantee type	period	not	party or not
Total limit of external	0	Total amount of external		0
guarantee approved in		guarantee actually provided
the reporting period		in the reporting period (A2)
(A1)
Total limit of external	0	Total balance of external		0
guarantee approved as		guarantee actually provided
at the end of the		as at the end of the
reporting period (A3)		reporting period (A4)

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MANAGEMENT DISCUSSION AND ANALYSIS OF JINKE PROPERTY

			**Guarantee between the Company **	**Guarantee between the Company **	and its subsidiaries
	Date of							Whether the
	disclosure of		Date of actual					guarantee is
	announcements		occurrence (date	Actual			Whether the	provided to a
Name of the	concerning		when the agreement	guarantee		Guarantee	guarantee is	connected party
guarantee target	guarantee limit	Guarantee limit	is signed)	amount	Guarantee type	period	fulfilled or not	or not
Chengdu Jinke	4 May 2013	64,000	19 July 2013	61,000	Joint liability	3 years	No	No
					guarantee
Chenzhou Xiaobu	4 May 2013	10,000	2 July 2013	2,760	Joint liability	3 years	No	No
					guarantee
Chengdu Shuangyi	4 May 2013	95,000	13 August 2013	55,000	Joint liability	3 years	No	No
					guarantee
Jinke Bailexing	4 May 2013	10,000	6 September 2013	2,600	Joint liability	3 years	No	No
					guarantee
Zhangjiagang Jinke	4 May 2013	60,000	5 September 2013	42,000	Joint liability	3 years	No	No
Ruifeng					guarantee
Jiangsu Rugao	27 September	35,000	21 November 2013	35,000	Joint liability	3 years	No	No
	2013				guarantee
Suzhou Kerun	27 September	45,000	24 March 2014	42,000	Joint liability	27 months	No	No
	2013				guarantee
Wujiaqu Jinke	27 September	14,900	18 March 2014	10,900	Joint liability	3 years	No	No
	2013				guarantee
Jinke Guojun	27 September	22,000	30 March 2014	13,000	Mortgage	2.5 years	No	No
	2013
Jinke Tuhong	14 May 2014	20,000	17 June 2014	20,000	Joint liability	25 months	No	No
					guarantee
Changsha Jinke	2 July 2014	30,000	25 June 2014	30,000	Joint liability	2 years	No	No
					guarantee
Beijing Zhanhao	16 September	180,000	29 August 2014	130,000	Joint liability	12 months and	No	No
	2014				guarantee	24 months
Yunnan Jinke	2 July 2014	78,000	21 July 2014	73,130	Joint liability	2 years	No	No
Xinhaihui					guarantee
Jinan Jinke	2 July 2014	40,000	18 July 2014	40,000	Joint liability	2 years	No	No
					guarantee
Wuxi Jiarun	16 May 2014	89,000	21 November 2014	71,200	Joint liability	2.5 years	No	No
					guarantee
Suzhou Baijun	30 October 2014	60,000	20 November 2014	54,000	Joint liability	35 months	No	No
					guarantee
Kelsinki	13 May 2014	10,000	21 January 2015	10,000	Joint liability	1 year	No	No
					guarantee
Tianhao Menchuang	13 May 2014	8,000	3 February 2015	8,000	Joint liability	1 year	No	No
					guarantee
Yuanhao Decorations	13 May 2014	5,000	3 February 2015	5,000	Joint liability	1 year	No	No
					guarantee
Zhanhong Landscaping	13 May 2014	8,000	27 January 2015	8,000	Joint liability	1 year	No	No
					guarantee
Jinke Jinyu	29 October 2014	15,100	28 February 2015	10,500	Mortgage	3 years	No	No

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Guarantee between the Company and its subsidiaries

	Date of							Whether the
	disclosure of		Date of actual					guarantee is
	announcements		occurrence (date	Actual			Whether the	provided to a
Name of the	concerning		when the agreement	guarantee		Guarantee	guarantee is	connected party
guarantee target	guarantee limit	Guarantee limit	is signed)	amount	Guarantee type	period	fulfilled or not	or not
Jinan Jinke	2 July 2014	30,000	5 February 2015	30,000	Joint liability	1 year	No	No
					guarantee
Kelsinki	13 May 2014	10,000	10 March 2015	10,000	Joint liability	2 years	No	No
					guarantee
Jinke Junwei	13 May 2014	20,000	19 March 2015	10,000	Joint liability	28 months	No	No
					guarantee
Zhanhong Landscaping	13 May 2014	20,000	8 April 2015	20,000	Joint liability	2 years	No	No
					guarantee
Jinke Huiyi	20 April 2015	20,000	19 May 2015	15,956	Joint liability	2 years	No	No
					guarantee
Jinke Zhuorui	2 July 2014	54,102	31 December 2014	34,102	Joint liability	3 years	No	No
					guarantee
Qingdao Dushun	2 July 2014	54,000	30 March 2015	35,000	Joint liability	2 years	No	No
					guarantee
Jinke Shangzun	20 April 2015	11,100	29 April 2015	11,100	Mortgage	2 years	No	No
Jinke Shangzun	20 April 2015	20,000	29 April 2015	20,000	Joint liability	2 years	No	No
					guarantee
Changsha Jinke	20 April 2015	60,000	25 May 2015	60,000	Joint liability	2 years	No	No
					guarantee
Jinke Junfeng	20 April 2015	23,000	29 May 2015	18,000	Joint liability	2 years	No	No
					guarantee
Jinke Yijia	20 April 2015	55,000	24 June 2015	54,800	Joint liability	2 years	No	No
					guarantee
Yuanhao Decorations	20 April 2015	10,000	24 June 2015	10,000	Joint liability	1 year	No	No
					guarantee
Fuling Kerun	20 April 2015	35,600	29 June 2015	35,600	Joint liability	3 years	No	No
					guarantee
Qingdao Yuhua Jinke	20 April 2015	50,000	31 July 2015	50,000	Joint liability	2 years	No	No
					guarantee
Shaanxi Haoyuefu	20 April 2015	20,000	23 July 2015	20,000	Joint liability	2 years	No	No
					guarantee
Shaanxi Jinrunda	20 April 2015	20,000	2 July 2015	20,000	Joint liability	2 years	No	No
					guarantee
Hunan Liangxing	20 April 2015	50,000	28 September 2015	50,000	Pledge	2 years	No	No
Wujiaqu Jinke	20 April 2015	30,000	20 November 2015	17,000	Joint liability	3 years	No	No
					guarantee
Tianhao Menchuang	14 September	10,000	7 September 2015	10,000	Joint liability	1 year	No	No
	2015				guarantee
Zhanhong Landscaping	14 September	6,000	26 August 2015	6,000	Joint liability	1 year	No	No
	2015				guarantee

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			**Guarantee between the Company **	**Guarantee between the Company **	and its subsidiaries
	Date of							Whether the
	disclosure of		Date of actual					guarantee is
	announcements		occurrence (date	Actual			Whether the	provided to a
Name of the	concerning		when the agreement	guarantee		Guarantee	guarantee is	connected party
guarantee target	guarantee limit	Guarantee limit	is signed)	amount	Guarantee type	period	fulfilled or not	or not
Total limit of guarantee	to subsidiaries	420,700		Total amount of guarantee		544,956
approved in the reporting period (B1)				actually provided to
				subsidiaries	in the reporting
				period (B2)
Total limit of guarantee	to subsidiaries	1,507,802		Total balance of guarantee		1,261,648
approved as at the end of the reporting				actually provided to
period (B3)				subsidiaries	as at the end of the
				reporting period (B4)
			**Guarantee **	among subsidiaries
	Date of							Whether the
	disclosure of		Date of actual					guarantee is
	announcements		occurrence	Actual			Whether the	provided to a
Name of the	concerning		(date when the	guarantee		Guarantee	guarantee is	connected party
guarantee target	guarantee limit	Guarantee limit	agreement is signed)	amount	Guarantee type	period	fulfilled or not	or not
Fuling Kerun	28 October 2011	19,000	28 October 2011	19,000	Joint liability	5 years	No	No
					guarantee
Hunan Liangxing	23 September	17,000	24 September 2013	17,000	Mortgage	2 years	No	No
	2013
Jinke Huiyi	27 September	20,000	25 February 2014	20,000	Mortgage	3 years	No	No
	2013
Jinke Property Group	1 May 2014	50,000	1 May 2014	50,000	Mortgage	2 years	No	No
Jinke Tuhong	27 September	12,000	23 January 2014	7,000	Mortgage	29 months	No	No
	2013
Jinke Tuhong	27 September	18,000	23 January 2014	13,000	Mortgage	27 months	No	No
	2013
Jinke Zhongjun	27 September	49,000	4 January 2014	49,000	Pledge	2 years	No	No
	2013
Wujiaqu Jinke	27 September	5,900	17 July 2014	5,900	Mortgage	3 years	No	No
	2013
Neijiang Jinke Baijun	14 May 2014	17,750	15 September 2014	17,750	Mortgage	2 years	No	No
Jinke Property Group	25 December	140,000	16 February 2015	140,000	Pledge	None	No	No
	2014
Jinke Junwei	20 April 2015	55,100	28 April 2015	55,100	Mortgage	3 years	No	No
Jinke Zhengtao	20 April 2015	35,000	27 April 2015	34,700	Joint liability	3 years	No	No
					guarantee;
					mortgage
Jinke Property Group	20 April 2015	50,000	16 September 2015	50,000	Mortgage	2 years	No	No
Jinke Property Group	20 April 2015	36,000	12 December 2014	20,000	Pledge	7 years	No	No

— 618 —

APPENDIX III

MANAGEMENT DISCUSSION AND ANALYSIS OF JINKE PROPERTY

				**Guarantee **	among subsidiaries
Date of								Whether the
disclosure of			Date of actual					guarantee is
announcements			occurrence		Actual		Whether the	provided to a
Name of the concerning			**(date when **	the	guarantee	Guarantee	guarantee is	connected party
guarantee target guarantee limit	Guarantee limit		**agreement **	is signed)	amount Guarantee type	period	fulfilled or not	or not
Total limit of guarantee to subsidiaries	176,100				Total amount of guarantee	299,800
approved in the reporting period (C1)					actually provided to
					subsidiaries in the reporting
					period (C2)
Total limit of guarantee to subsidiaries	524,750				Total balance of guarantee	498,450
approved as at the end of the reporting					actually provided to
period (C3)					subsidiaries at the end of the
					reporting period (C4)
		Total guarantee amount of the Company (namely, the sum of the				top three)
Total guarantee limit approved in the	596,800				Total amount of guarantee	844,756
reporting period (A1+B1+C1)					actually provided in the
					reporting period (A2+B2+C2)
Total guarantee limit approved as at the	2,032,552				Total balance of guarantee	1,760,098
end of the reporting period (A3+B3+C3)					actually provided as at the end
					of the reporting period
					(A4+B4+C4)
Percentage of total amount of guarantee actually provided (namely, A4+B4+C4) in					136.93%
the net assets of the Company
Including:
Amount of guarantee provided to shareholders, effective controllers and their					0
connected parties (D)
Amount of debt guarantee directly or indirectly provided to the			guarantee targets		1,760,098
whose asset-liability ratio exceeds 70% (E)
Amount of the surplus part of the total guarantee amount exceeding 50% of net					0
assets (F)
Total amount of the abovementioned three	guarantees	(D+E+F)			1,760,098

Description about compound guarantee

None

• (2) Illegal external guarantees

□ Applicable � Not Applicable

The Company had no illegal external guarantee in the reporting period.

— 619 —

MANAGEMENT DISCUSSION AND ANALYSIS OF JINKE PROPERTY

APPENDIX III

XVIII. Other important events

• Applicable □ Not Applicable

1. Non-public issuance of shares

On 20 August 2015, the Company convened the 21st meeting of the 9th Board of Directors and deliberated and approved the Scheme on 2015 Non-public Issuance of Stocks and other relevant matters. The Company planned to issue no more than 773,195,876 shares (inclusive) in non-public mode at a price of not lower than RMB5.82/share, with a view to raising a maximum of RMB4.5 billion funds for development and construction of the Company’s projects and repayment of borrowings from financial institutions. On 4 February and 22 February, 2016, the Company convened the 28th meeting of the 9th Board of Directors and the 2nd extraordinary general meeting 2016. According to the changes in the capital market environment, to smoothly promote non-public issuance of shares, the Company adjusted the “pricing base date, issuance price and pricing principle” and “number of shares to be issued” in the scheme on non-public issuance of shares, and extended the “validity period of resolution” and “validity period of authorization” concerning the non-public issuance of shares. After adjustment, the pricing base date concerning the non-public issuance of shares was 5 February 2016, the issuance price was not lower than RMB3.68/share, the number of shares to be issued was not more than 1,222,826,086, and the validity period of resolution and validity period of authorization were extended to 12 months as from the date of deliberation and approval by the 2nd extraordinary general meeting 2016.

At present, matters concerning the non-public issuance of shares are under way.

(For details, refer to the relevant announcements published by the Company on 21 August 2015, 5 February 2016 and 23 February 2016 on the media (such as www.cninfo.com.cn and China Securities Journal ) designated by the Company for information disclosure.)

2. Public issuance of corporate bonds

The 2nd extraordinary general meeting 2014 of the Company deliberated and approved the proposals relating to public issuance of corporate bonds. The Company planned to publicly issue corporate bonds of not more than RMB3.8 billion (inclusive) with a term of not more than 10 years (inclusive) to the public. The annual coupon rate will be determined by the Company and the lead underwriter upon negotiation according to the offline enquiry results and relevant state provisions. On 17 June 2015, the Company’s application for public issuance of corporate bonds was examined and approved by the Issuance Examination Committee of China Securities Regulatory Commission, and the approval reply was received on 6 August. The bonds were issued in two tranches. In the reporting period, the Company completed issuance of 2015 corporate bonds (the first tranche) worth RMB2 billion of Jinke Property Group Co., Ltd., with a coupon rate of 6.40% and a term of five years. The remaining part unissued will be issued by the Company at an appropriate time.

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MANAGEMENT DISCUSSION AND ANALYSIS OF JINKE PROPERTY

APPENDIX III

(For details, refer to the relevant announcements published by the Company on 18 June, 7 August and 28 August 2015 on the media (such as www.cninfo.com.cn and China Securities Journal ) designated by the Company for information disclosure.)

3. Non-public issuance of corporate bonds

The 5th extraordinary general meeting 2015 of the Company deliberated and approved the proposals relating to non-public issuance of corporate bonds. The Company planned to issue corporate bonds of not more than RMB3.8 billion (inclusive) with a term of not more than 7 years (inclusive) to the qualified investors in a non-public mode. The annual coupon rate will be determined by the Company and the lead underwriter upon negotiation according to the offline enquiry results and relevant state provisions. On 5 August, 2015, the Company received a No Objection Letter for Compliance with Transfer Conditions of Shenzhen Stock Exchange Regarding Non-public Issuance of Bonds by Jinke Property Group Co., Ltd. in 2015 from Shenzhen Stock Exchange. The bonds were issued in two tranches. In particular, the first tranche of shares issued amounted to RMB1.25 billion, with a term of three years and a coupon rate of 7.00%. On 16 December, 2015, the Company fully completed the payment for subscription. In particular, the second tranche worth RMB2.55 billion has two varieties: the first variety worth RMB1.25 billion, with a term of 3 years and a coupon rate of 6.8%; and the second variety worth RMB1.3 billion, with a term of 3 years and a coupon rate of 6.0%. On 17 March 2016, the Company fully completed the payment for subscription.

(For details, refer to the relevant announcements published by the Company on 30 June, 16 July, 6 August and 18 December, 2015, and 18 March 2016 on the media (such as www.cninfo.com.cn and China Securities Journal ) designated by the Company for information disclosure.)

4. Medium-term notes

Upon deliberation and approval by the 8th meeting of the 9th Board of Directors of the Company and the 9th extraordinary general meeting 2014, the Company applied for registration and issuance of medium-term notes of not more than RMB3.9 billion (inclusive) in the national interbank bond market. On 31 October 2014, the Company submitted relevant application documents concerning issuance of the medium-term notes to the National Association of Financial Market Institutional Investors and the application was accepted in August 2015. On 13 October 2015, the Company’s medium-term notes were approved to be registered, with a registered amount of RMB3.2 billion. The Company’s first tranche of medium-term notes 2015 worth RMB2.1 billion was issued on 20 November 2015, with a term of three years and a coupon rate of 5.5%. The funds raised were all in place on 24 November 2015. The Company’s first tranche of medium-term notes 2016 worth RMB1.1 billion was issued on 21 March 2016, with a term of three years and a coupon rate of 5.3%. The funds raised were all in place on 22 March 2016.

(For details, refer to the relevant announcements published by the Company on 14 October and 25 November, 2015 on the media (such as www.cninfo.com.cn and China Securities Journal ) designated by the Company for information disclosure.)

— 621 —

APPENDIX III

MANAGEMENT DISCUSSION AND ANALYSIS OF JINKE PROPERTY

5. Special asset-backed plan

On 28 August, 2015, the Company convened the 22nd meeting of the 9th Board of Directors and deliberated and approved the special asset-backed plan of Jinke Property. Moreover, it made financing by issuing asset-backed securities via the special plan. The issuance scale of the special plan did not exceed RMB1.5 billion, including RMB1.4 billion of preferred securities, which were classified as five grades. The issuance scale of secondary products did not exceed RMB100 million, which were all subscribed for by Jinke Property. On 21 October, 2015, the Company received a no objection letter regarding the special plan from Shenzhen Stock Exchange. Established on 5 November 2015, the special plan received an actual subscription fund of RMB1.5 billion. The coupon rate of the five grades of products ranged from 5.00% to 6.20%.

(For details, refer to the relevant announcements published by the Company on 29 August, 7 September, 22 October and 9 November 2015 on the media (such as www.cninfo.com.cn and China Securities Journal ) designated by the Company for information disclosure.)

6. Entrusted loans without a fixed term

(1) Upon deliberation and approval by the 10th extraordinary general meeting 2014 of the Company held on 25 December, 2014, the Company and Minsheng Royal Asset Management Co., Ltd. (hereinafter referred to as “Minsheng Royal”) signed the Entrusted Loan Agreement . Minsheng Royal worked out a special asset management plan to raise funds and authorized China Minsheng Bank, Chongqing Branch to grant loans to the Company with the funds raised. The loans amounted to RMB1.4 billion without a fixed term. On 13 February, 2015, the Company received the abovementioned loans issued by China Minsheng Bank, Chongqing Branch.

(2) Upon deliberation and approval by the 4th extraordinary general meeting 2015 of the Company held on 25 June, 2015, the Company and Minsheng Royal signed the Entrusted Loan Agreement . Minsheng Royal worked out a special asset management plan to raise funds and authorized China Minsheng Bank, Chongqing Branch to grant loans to the Company with the funds raised. The loans amounted to RMB1.4 billion without a fixed term. As at the reporting date, Minsheng Royal has not issued the loans to the Company.

(For details, refer to the relevant announcements published by the Company on 17 February, 10 June and 26 June 2015 on the media (such as www.cninfo.com.cn and China Securities Journal ) designated by the Company for information disclosure.)

7. Other main repayments and increased nonbank financing in the reporting period

• (1) In February 2013, the Company’s wholly-owned subsidiary Chongqing Bozhan and Anxin Trust signed a trust agreement, in which RMB500 million of debt financing was agreed on for a term of two years and at a consolidated cost of 10% per year. In the reporting period, the Company paid off the principal and interest of the trust fund.

— 622 —

APPENDIX III

MANAGEMENT DISCUSSION AND ANALYSIS OF JINKE PROPERTY

• (2) In February 2013, the Company’s wholly-owned subsidiary Jinke Chenju and Chongqing International Trust signed a trust agreement, in which RMB200 million of debt financing was agreed on for a term of two years and at a consolidated cost of 9.995% per year. In the reporting period, the Company paid off the principal and interest of the trust fund.

• (3) In February 2013, the Company’s holding subsidiary Jinke Baijun and China Railway Trust signed a trust agreement, in which RMB450 million of debt financing was agreed on for a term of two years and at a consolidated cost of 10.7% per year. In the reporting period, the Company paid off the principal and interest of the trust fund.

• (4) In February 2013, the Company and China Industrial International Trust signed a trust agreement, in which RMB400 million of debt financing was agreed on for a term of two years and at a consolidated cost of 12% per year. In the reporting period, the Company paid off the principal and interest of the trust fund.

• (5) In March 2013, the Company’s wholly-owned subsidiary Qingke Trading and Chongqing International Trust signed a trust agreement, in which RMB300 million of debt financing was agreed on for a term of two years and at a consolidated cost of 11.5% per year. In the reporting period, the Company paid off the principal and interest of the trust fund.

• (6) In April 2013, the Company’s holding subsidiary Beijing Jinke Napa Real Estate Co., Ltd., Business Department of the Head Office of China CITIC Bank and Kunlun Trust jointly signed a Syndicated Loan Agreement , in which RMB1,600 million (including trust financing of RMB800 million) of debt financing was agreed on for a term of two years and at a consolidated cost of 9.7% per year. In the reporting period, the Company paid off the principal and interest of the said loans.

• (7) In July 2013, the Company and New Times Trust signed a trust agreement, in which RMB500 million of debt financing was agreed on, including RMB200 million for a term of one year and RMB300 million for a term of two years at a consolidated cost of 10.5% per year and 11.5% per year, respectively. In the reporting period, the Company paid off the principal and interest of the said loans.

• (8) In July 2013, the Company’s wholly-owned subsidiary Jinke Group Suzhou Real Estate Development Co., Ltd. and China Industrial International Trust signed a trust agreement, in which RMB400 million of debt financing was agreed on for a term of two years and at a consolidated cost of 11% per year. In the reporting period, the Company paid off the principal and interest of the said loans.

• (9) In September 2013, the Company’s holding subsidiary Hunan Liangxing and Shandong International Trust signed a trust agreement, in which RMB440 million of debt financing was agreed on for a term of two years and at a consolidated cost of 8.7% per year. In the reporting period, the Company paid off the principal and interest of the said loans.

— 623 —

APPENDIX III

MANAGEMENT DISCUSSION AND ANALYSIS OF JINKE PROPERTY

• (10) In February 2015, the Company’s holding subsidiary Chongqing Jinke Hexu Real Estate Development Co., Ltd. and Shanghai Dongyuan Tianxin Investment Center signed an Entrusted Loan Agreement , in which Chongqing Jinke Hexu Real Estate Development Co., Ltd. took a loan of RMB400 million issued from Shanghai Dongyuan Tianxin Investment Center through Chongqing Rural Commercial Bank for a term of three years and at a consolidated cost of 11.5% per year. As at the end of the reporting period, the said Entrusted Loan Agreement was still valid.

• (11) In February 2015, the Company’s holding subsidiary Jinan Jinke Xicheng and Jinan Jinke Xiqu Investment Consultation Partnership (limited partnership) signed an Entrusted Loan Agreement , in which Jinan Jinke Xicheng took a loan of RMB300 million issued from Jinan Jinke Xiqu Investment Consultation Partnership through China CITIC Bank for a term of one year and at a consolidated cost of 10% per year. As at the end of the reporting period, the said Entrusted Loan Agreement was still valid.

• (12) In March 2015, the Company and Southwest Securities Co., Ltd. signed an Entrusted Loan Agreement , in which the Company took a loan of RMB550 million issued from Southwest Securities Co., Ltd. through Chongqing Three Gorges Bank for a term of two years and at a consolidated cost of 11% per year. As at the end of the reporting period, the said entrusted loan agreement was still valid.

• (13) In March 2015, the Company and China Securities Co., Ltd. signed a trust agreement, in which RMB492 million of debt financing was agreed on for a term of two years and at a consolidated cost of 11.5% per year. As at the end of the reporting period, the said trust agreement was still valid.

• (14) In May 2015, the Company’s wholly-owned subsidiary Changsha Jinke Real Estate Development Co., Ltd. and Shangdong International Trust Co., Ltd. signed a trust agreement, in which RMB600 million of debt financing was agreed on for a term of three years and at a consolidated cost of 9% per year. As at the end of the reporting period, the said trust agreement was still valid.

• (15) In June 2015, the Company’s holding subsidiary Chengdu Jinke Junfeng and Minsheng Royal Asset Management Co., Ltd. signed an Entrusted Loan Agreement , in which Chengdu Jinke Junfeng took a loan of RMB230 million issued from Minsheng Royal Asset Management Co., Ltd. through Bank of Shanghai for a term of two years and at a consolidated cost of 10.8% per year. As at the end of the reporting period, the said entrusted loan agreement was still valid.

• (16) In July 2015, the Company’s wholly-owned subsidiaries Shandong Baijun Real Estate Development Co., Ltd. and Qingdao Yuhua Jinke Real Estate Development Co., Ltd. signed a Creditor’s Right Transfer Agreement with CITIC Trust Co., Ltd., in which Shandong Baijun transferred all of its creditor’s rights (RMB500 million) in Qingdao Yuhua Jinke to CITIC Trust for financing for a term of two years and at a consolidated cost of 8.5% per year. As at the end of the reporting period, the said transfer agreement was still valid.

— 624 —

APPENDIX III

MANAGEMENT DISCUSSION AND ANALYSIS OF JINKE PROPERTY

• (17) In July 2015, the Company and the Company’s wholly-owned subsidiary Shaanxi Haoyuefu Real Estate Development Co., Ltd. signed a Creditor’s Right Transfer Agreement with China Huarong Asset Management Co., Ltd., in which the Company transferred all of its creditor’s rights (RMB200 million) in Shaanxi Haoyuefu to China Huarong Asset Management Co., Ltd. for financing for a term of two years and at a consolidated cost of 11% per year. As at the end of the reporting period, the said transfer agreement was still valid.

• (18) In July 2015, the Company and the Company’s wholly-owned subsidiary Shaanxi Jinrunda Real Estate Development Co., Ltd. signed a Creditor’s Right Transfer Agreement with China Huarong Asset Management Co., Ltd., in which the Company transferred all of its creditor’s rights (RMB200 million) in Shaanxi Jinrunda to China Huarong Asset Management Co., Ltd. for financing for a term of two years and at a consolidated cost of 11% per year. As at the end of the reporting period, the said transfer agreement was still valid.

• (19) In September 2015, the Company took a loan of RMB500 million issued from Shenzhen Pingan Dahua Huitong Wealth Management Co., Ltd. through Bank of Jiangsu, Shenzhen Branch for a term of two years and at a consolidated cost of 11% per year; the funds were raised by Shenzhen Pingan Dahua Huitong Wealth Management Co., Ltd. through its asset management plan. As at the end of the reporting period, the said loan was still valid.

• (20) In September 2015, the Company’s holding subsidiary Hunan Liangxing Real Estate Development Co., Ltd. took a loan of RMB500 million from Bank Of Communications International Trust Co., Ltd. for a term of two years and at a consolidated cost of 9.5% per year. As at the end of the reporting period, the said loan was still valid.

Other financing projects of the Company all went well; please refer to relevant notes to this Financial Report of the Company for details.

XXI. Bond-related issues of the Company

Does the Company have any corporate bonds which were listed on the stock exchange through public issuance and were undue by the date of authorizing issue of the annual report or had come due but were not fully cashed

Yes

— 625 —

APPENDIX III

MANAGEMENT DISCUSSION AND ANALYSIS OF JINKE PROPERTY

1. Basic information about the Company’s bonds

	Abbreviation of			Repayment of principal
Bond name	the bonds	Bond code Date of issue Maturity date	Bond balance Interest rate	plus interest
			(RMB’0,000)
2015 corporate bonds	15 Jinke 01	112272 28 August 2015 28 August 2020	200,000 6.40%	For current bonds, simple
(the first tranche)				interest (instead of
				compound interest) is
				calculated on a yearly
				basis; the interest is paid
				once a year and the
				principal is repaid at one
				time on the maturity date;
				interest of the last
				instalment is paid together
				with the principal.
2015 non-public	15 Jinke Bonds	118427 16 December 16 December	125,000 7.00%	For current bonds, simple
corporate bonds	01	2015 2018		interest (instead of
(the first tranche)				compound interest) is
				calculated on a yearly
				basis; the interest is paid
				once a year and the
				principal is repaid at one
				time on the maturity date;
				interest of the last
				instalment is paid together
				with the principal
Place where the corporate bonds are		Shenzhen Stock Exchange
listed or transferred
Eligibility management of investors		15 Jinke 01: According to Article 2 of the _Notice on _	Rules of Shenzhen Stock Exchange for the Listing of Corporate
		Bonds (Revised in 2015), if the current bonds issued	encounter an adjustment to eligibility management of investors,
		the current bonds will receive eligibility management of investors (only by qualified investors); public investors shall
		not buy in current bonds anymore and those public investors holding bonds may choose to hold them to maturity or
		sell them; the aforesaid circumstance will affect the liquidity of current bonds.
		15 Jinke Bonds 01: According to the Interim Measures of Shenzhen Stock Exchange for the Administration of
		Non-publicly Issued Corporate Bonds, investors applying for transfer of current bonds shall meet relevant conditions of
		eligibility management of investors.
The Company’s payment of bond interest		The Company did not pay bond interest during the reporting period
during the reporting period
Implementation of option clauses,		15 Jinke Bonds 01: With option of adjusting coupon	rate for issuer and sell-back options	for investors, the current
interchangeable terms and other		bonds have a term of 5 years. The coupon rate will remain unchanged for the first three years within the duration of
special terms of the issuer or investors		the current bonds; at the end of the third year within the duration of the current bonds, the issuer may choose to raise
(if applicable).		the coupon rate; the annual coupon rate of the bonds	is the annual coupon rate in the first 3 years within the duration
		plus the basis points raised, which will remain unchanged in the last 2 years within the duration. After the issuer
		announces to adjust the coupon rate, the investors have the right to sell, at par value, the		bonds held by them in whole
		or in part back to the issuer on the third interest payment date of the current bonds.
		15 Jinke Bonds 01: With option of adjusting coupon	rate for issuer and sell-back options	for investors, the current
		bonds have a term of 3 years. At the end of the second year within the duration of the current bonds, the issuer may
		have the right to adjust the coupon rate for the third	year of the bonds. If the issuer fails	to exercise such right, the
		coupon rate will remain unchanged in the remaining	period. The investors have the right to sell, at par value, the
		current bonds held by them in whole or in part back	to the issuer on the second interest payment date or waive such
		right and continue holding the bonds.

— 626 —

APPENDIX III

MANAGEMENT DISCUSSION AND ANALYSIS OF JINKE PROPERTY

2. Information about bonds trustee managers and rating agency

Bonds trustee managers:

Name	Essence Securities	Office address	35F, Anlian	Contact person	Chen Bin	Tel.:	0755-82825472
	Co., Ltd.		Mansion, No. 4018,
			Jintian Road, Futian
			District, Shenzhen
Name	Huatai United	Office address	6F, Block A, Feng	Contact person	Wang Zimeng	Tel.:	010-56839300
	Securities Co.,		Ming International
	Ltd.		Building, No. 22,
			Fengsheng Alley,
			Xicheng District,
			Beijing

Rating agency conducting track rating for corporate bonds during the reporting period: Name Dagong Global Credit Rating Co., Ltd. Office address 29F, Block A, Eagle Run Plaza, No. 26, Xiaoyun Road, Chaoyang District, Beijing Reason for, procedure of and effect on investors’ interests of any Not Applicable change in the bonds trustee manager and rating agency engaged by the Company during the reporting period (if applicable)

3. Use of funds raised from issuance of corporate bonds

Details about use of funds raised During the reporting period, the Company used the funds for from issuance of corporate the purposes specified in the Prospectus ; specifically, RMB2 bonds billion of funds raised from public issuance of corporate bonds were used for repaying loans from financial institutions and RMB1.25 billion of funds raised from non-public issuance of corporate bonds were used for adding liquidity.

Balance at the end of the year 0 (RMB’0,000)

Operation status of the account of The Company’s account of raised funds worked well raised funds

Were the raised funds used in Yes accordance with the purpose, use plan and other requirements specified in the prospectus

— 627 —

MANAGEMENT DISCUSSION AND ANALYSIS OF JINKE PROPERTY

APPENDIX III

4. Rating of corporate bonds

During the reporting period, the Company successively issued medium-term notes and non-public corporate bonds. The issuer was rated AA by Dagong Global Credit Rating Co., Ltd. with no rating difference.

The latest track rating will be conducted by Dagong Global Credit Rating Co., Ltd. within two months after the Company announces its 2015 Annual Report; the Company will responsively disclose relevant rating results through its official media.

5. Credit enhancement mechanism, debt repayment plan and other debt repayment safeguard measures for corporate bonds

During the reporting period, the credit enhancement mechanism, debt repayment plan and other debt repayment safeguard measures for corporate bonds remained unchanged as set out in the prospectus.

6. Convening of bond holder meetings during the reporting period

During the reporting period, the Company did not convene a bond holder meeting as there was no need for one.

7. Duty performance of bonds trustee managers during the reporting period

Essence Securities Co., Ltd. and Huatai United Securities Co., Ltd., as bonds trustee managers of the Company’s “15 Jinke 01” and “15 Jinke Bonds 01”, continuously paid attention to the Company’s operational, financial and credit positions and actively performed their duties to protect the legitimate rights and interests of bond holders.

Essence Securities Co., Ltd. will complete the Company’s 2015 bonds trustee management report within a month after announcement of the Company’s 2015 annual report; Huatai United Securities Co., Ltd. will complete the Company’s 2015 bonds trustee management report within six months after the end of the Company’s 2015 fiscal year. The Company will responsively disclose relevant reports through its official media.

— 628 —

APPENDIX III

MANAGEMENT DISCUSSION AND ANALYSIS OF JINKE PROPERTY

1. Principal accounting data and financial indexes of the Company for the two years ended as at the reporting period

Unit: RMB

			Same period
Item	2015	2014	rate of change
Earnings before interest, taxes,	2,302,525,559.42	1,010,740,819.1	127.81%
depreciation and amortization
(EBITDA)
Net cash flows from investing activities	-965,223,856.54	-680,875,058.11	-41.76%
Net cash flows from financing activities	2,714,975,339.28	10,158,106,731.1	-73.27%
Ending balance of cash and cash	7,967,303,772.09	5,805,282,261.64	37.24%
equivalents
Current ratio	144.41%	164.48%	-20.07%
Asset-liability ratio	83.95%	83.96%	-0.01%
Quick ratio	25.16%	28.27%	-3.11%
Total debts ratio of EBITDA	5.79%	2.89%	2.9%
Interest covered multiple	0.63	0.33	90.91%
Cash interest covered multiple	1.28	-2.15	159.74%
Interest covered multiple of EBITDA	0.68	0.35	94.29%
Loan repayment ratio	100.00%	100.00%	0
Interest payment ratio	100.00%	100.00%	0

Major reasons for an over 30% year-on-year change in the said accounting data and financial indexes

• Applicable □ Not Applicable

Year-on-year increase in EBITDA was primarily due to a significant rise in pre-tax profit;

Decrease of net cash flows from investing activities was primarily due to a decrease in cash received in the investment recovered in the current period;

Decrease of net cash flows from financing activities was primarily due to an increase in repayment of loans in the current period;

Increase of ending balance of cash and cash equivalents was primarily due to an increase in sales proceeds and decrease in land expense in the current period;

Increase of total debts ratio of EBITDA was primarily due to a significant rise in pre-tax profit;

Increase of interest covered multiple was primarily due to a significant rise in pre-tax profit;

— 629 —

MANAGEMENT DISCUSSION AND ANALYSIS OF JINKE PROPERTY

APPENDIX III

Increase of cash interest covered multiple was primarily due to an increase in sales proceeds and decrease in land expense in the current period;

Increase of interest covered multiple of EBITDA was primarily due to a significant rise in pre-tax profit.

1. Restricted assets as at the end of the reporting period

Unit: RMB

		Book value at
	Book value at the	the beginning of	Reason for
Item	end of the period	the period	restriction
Monetary fund	1,421,884,489.74	1,721,849,342.67	Margin deposit
Accounts receivable [Note]	162,071,601.97	346,808,430.00	Pledged loan
Inventory	18,303,055,894.48	19,766,160,882.27	Mortgaged loan
Investment property	1,932,254,486.05	1,739,433,040.23	Mortgaged loan
Fixed assets	1,369,612,973.13	576,989,350.87	Mortgaged loan
Construction in progress	149,031,423.92	612,835,176.98	Mortgaged loan
Intangible assets	24,886,771.14	28,171,281.17	Mortgaged loan
Total	23,362,797,640.43	24,792,247,504.19

[Note] According to the Accounts Receivable Pledge Agreement under the Engineering General (Excluding Design) Contract of Phase II (150 MW) of the Sixth Wind Farm (200 MW) Project in Yandun, Hami of Xinjiang Huaran Oriental New Energy Co., Ltd. signed between the subsidiary Xinjiang Huaran and Xijiang Haiwei New Energy Power Engineering Co., Ltd. (the Pledgee), the Pledgor agreed to provide the electricity charging right related to its project and all revenues under it to the Pledgee as a pledge guarantee;

According to the Entrusted Loan Agreement and the Pledge Contract of CMS Super Value - Jinke Property Asset-backed Plan No.1 under the Asset Transfer Agreement of CMS Super Value - Jinke Property Asset-backed Plan No.1 signed between the Company and the Company’s subsidiary Jinke Property Services Group Limited (the Pledgor) with CMS Asset Management Co., Limited (the Pledgee), the Pledgor agreed to provide all the property service fees and parking management fees it collected to the Pledgee as a pledge guarantee.

10. Interest payment for other bonds and debt financing instruments during the reporting period

The Company did not pay interest for other bonds and debt financing instruments during the reporting period.

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MANAGEMENT DISCUSSION AND ANALYSIS OF JINKE PROPERTY

11. Bank credit granted and used and bank loan repayment during the reporting period

Having maintained a long-term relationship with major banks like Industrial and Commercial Bank of China, China Merchants Bank and China Minsheng Bank, the Company enjoyed good credit and relatively strong financing capacity. As at the end of the reporting period, the Company had been granted a bank credit line of RMB62.396 billion in total, including RMB14.245 billion of credit used and a credit balance of RMB48.151 billion. The Company repaid RMB12.204 billion bank loans during the reporting period.

12. Implementation of relevant agreements or commitments in the bond prospectus of the Company during the reporting period

During the reporting period, the Company used the raised funds in strict compliance with the bond prospectus of the Company and did not harm the interests of bond holders.

13. Major issues during the reporting period

There were no major issues as specified in Article 45 of the Measures for the Issuance and Trading of Corporate Bonds during the reporting period.

1. Is there any guarantor for the corporate bonds

□ Yes � No

Section 8 Directors, Supervisors, Senior Executives and Employees

IV. Remuneration of directors, supervisors and senior executives

Decisions on, basis for and actual payment of remuneration of directors, supervisors and senior executives

During the reporting period, directors, supervisors and senior executives of the Company were paid remuneration according to relevant remuneration management rules of the Company and based on their positions other than director or supervisor.

The Company only granted allowance to independent directors according to the decisions of the general meeting, not other directors and supervisors.

Remuneration of directors, supervisors and senior executives of the In RMB’0,000 Company during the reporting period

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MANAGEMENT DISCUSSION AND ANALYSIS OF JINKE PROPERTY

						Did the director/
						supervisor/senior
					Total pre-tax	executive obtain
					remuneration	remuneration from
					gained from the	the Company’s
Name	Position	Gender	Age	Incumbent or not	Company	connected party
Huang Hongyun	Chairman of the Board of	Male	49	Incumbent	625.64	No
	Directors
Jiang Sihai	Vice Chairman and President of	Male	49	Incumbent	632.08	No
	the Board of Directors
He Liwei	Director and Vice President	Male	51	Incumbent	519.42	No
Zhang Tiancheng	Director and Vice President	Male	40	Incumbent	181.43	No
Liu Zhonghai	Director and Board Secretary	Male	40	Incumbent	165.68	No
Li Ming	Independent Director	Male	52	Incumbent	11.45	No
Cheng Yuanwei	Independent Director	Male	51	Incumbent	11.45	No
Cao Guohua	Independent Director	Male	49	Incumbent	10.6	No
Jiang Xingcan	Chairman of the Supervisory	Male	63	Incumbent	229.41	No
	Committee
Han Chong	Supervisor	Male	43	Incumbent	47.83	No
Zhou Yangmei	Supervisor	Female	45	Incumbent	61.54	No
Fu Xiaowen	Supervisor	Male	46	Incumbent	0	Yes
Chen Changfeng	Employee Supervisor	Female	47	Incumbent	323.37	No
Nie Ming	Employee Supervisor	Female	52	Incumbent	89.54	No
Chen Hong	Employee Supervisor	Female	47	Incumbent	83.87	No
Li Hua	Vice President and Chief	Male	52	Incumbent	402.99	No
	Financial Officer
Yu Linqiang	Vice President	Male	40	Incumbent	456.57	No
Luo Licheng	Executive President	Male	50	Incumbent	535.86	No
Wang Hongfei	Vice President	Male	50	Incumbent	377.57	No
Zong Shusheng	Vice Chairman of the Board of	Male	47	Resigned	145.17	No
	Directors
Pan Ping	Director	Male	60	Resigned	0	Yes
Nie Meisheng	Independent Director	Female	75	Resigned	2.67	No
Liu Bin	Independent Director	Male	53	Resigned	5.22	No
Yuan Xiaobin	Independent Director	Male	46	Resigned	4.37	No
Total	—	—	—	—	4,923.73	—

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MANAGEMENT DISCUSSION AND ANALYSIS OF JINKE PROPERTY

Equity incentive conferred to directors, supervisors and senior executives of the Company during the reporting period

�Applicable	�Applicable	□Not Applicable	□Not Applicable	□Not Applicable
									Unit: share
								Number of
				Exercise		Number of		restricted
		Number of	Number of	price of		restricted	Number of	shares newly		Number of
		exercisable	exercised	exercised	Market price	shares held	unlocked	conferred	Price of	restricted
		shares during	shares during	shares during	at the end of	at the	shares in the	during the	restricted	shares held
		the reporting	the reporting	the reporting	the reporting	beginning of	current	reporting	shares	at the end of
Name	Position	period	period	period	period	the period	period	period	conferred	the period
				(RMB/share)	(RMB/share)				(RMB/share)
Jiang Sihai	Vice Chairman and							25,000,000	3.23	25,000,000
	President of the
	Board of Directors
He Liwei	Director and Vice							3,000,000	3.23	3,000,000
	President
Zhang Tiancheng	Director and Vice							7,000,000	3.23	7,000,000
	President
Liu Zhonghai	Director and Board							7,000,000	3.23	7,000,000
	Secretary
Li Hua	Vice President and							9,000,000	3.23	9,000,000
	Chief Financial
	Officer
Yu Linqiang	Vice President							7,000,000	3.23	7,000,000
Luo Licheng	Executive President							10,000,000	3.23	10,000,000
Wang Hongfei	Vice President							10,000,000	3.23	10,000,000
Total	—			—	—			78,000,000	—	78,000,000

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MANAGEMENT DISCUSSION AND ANALYSIS OF JINKE PROPERTY

V. Employees of the Company

1. Number, professional composition and educational background of employees

Number of in-service employees of the parent company (Person)	295
Number of in-service employees of major subsidiaries (Person)	10,133
Total number of in-service employees (Person)	10,428
Total number of paid employees in the current period (Person)	10,428
Number of paid retired employees in the parent company and major
subsidiaries (Person)	0
Professional composition
Category	Number (Person)
Sales personnel	820
Technical personnel	1,633
Financial personnel	226
Administrative personnel	2,273
Operators	5,476
Total	10,428
Education level
Category	Number (Person)
Master’s degree or above	226
Bachelor degree	3,189
Junior college student	1,380
Below junior college education	5,633
Total	10,428

2. Remuneration policy

According to the Labor Law , Labor Contract Law and relevant laws and regulations and in the principle of basing return on contribution and remaining competitive in the industry, the Company stuck to a labor contract system for all employees and determined employees’ remuneration by their personal ability, job responsibility, value contribution and market value. The Company has paid basic old-age insurance, medical insurance, unemployment insurance, work-related injury insurance, maternity insurance and housing provident fund for employees pursuant to relevant state and local government regulations.

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APPENDIX III

3. Training programs

Through effective training and education, the Company kept developing employees’ potential and helped them improve their occupational ability, occupational quality and professionalism as well as lifelong employability. In the year the Company ensured not more than 50 hours of training for managerial personnel and not more than 30 hours of training for operators. Various subsidiaries organized professional skill training and the Group organized management training, realizing 99% coverage of employee training.

4. Labor outsourcing

□ Applicable � Not Applicable

Section 9 Corporate Governance

VIII. THE EVALUATION AND INCENTIVE MECHANISM FOR SENIOR EXECUTIVES

With a complete evaluation and remuneration incentive mechanism, the Company conducted senior executive evaluation based on completion of key tasks, key performance indicators and assigned duties in the year. Remuneration of senior executives, on a post salary basis, consisted of fixed wages, bonus and social insurance & welfare; specifically, fixed wages were determined by post evaluation, job family and market position; bonus was determined by personal performance and fulfilment of job objectives; social insurance & welfare were determined by relevant regulations of the state and relevant systems of the Company.

MANAGEMENT DISCUSSION AND ANALYSIS OF THE RESULTS OF JINKE PROPERTY FOR THE YEAR ENDED 31 DECEMBER 2016

Section 3 Business Highlights

I. Main businesses the Company engaged in during the reporting period

The Company is a large conglomerate focusing on real estate development, supplemented by operation in relevant industries such as community life service, hotel operation and management, landscaping, doors and windows and new energy power generation. The Company has class A qualification in real estate development, and its subsidiaries have class A qualification in respect of property management, urban landscaping and greening, landscaping planning and design, and professional contracting of building and decoration engineering. Regarding the real estate sector, the Company mainly engages in residential development independently, together with development of commercial property and development and operation of industrial property. The Company’s marketing is mainly carried out by its own marketing team. Its real estate business is mainly located in the Yangtze River Delta Economic Circle, Beijing-Tianjin-Hebei Economic Circle, Chengdu-Chongqing Economic Circle and the Yangtze River Economic Belt (known as “Three Circles and One Belt”),

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MANAGEMENT DISCUSSION AND ANALYSIS OF JINKE PROPERTY

forming a regional development pattern covering Chongqing, East China, North China and West-Central China. The Company has carried out business in 14 provinces (cities) across the country, with the development projects mostly in Chongqing, Beijing, Tianjin, Suzhou, Nanjing, Hefei, Zhengzhou, Chengdu, Wuhan and other main tier-1 and tier-2 cities.

Community life services become a development priority during the Company’s real estate transformation and upgrading. By building smart life communities, the Company provides the property project owners under its management with all-round people-oriented services, with basic property fee and income from other value-added services as the main income contributors. Its businesses cover Chongqing, Beijing, Sichuan, Jiangsu, Hunan, Shaanxi, Shandong, etc.

II. Material changes in major assets

Major assets	Description of material changes
Equity assets	Up by 101.04% on a year-on-year basis, primarily ascribable
	to increased external investment
Fixed assets	No material change
Intangible assets	No material change
Construction in progress	Up by 255.17% on a year-on-year basis, primarily ascribable
	to increased investment in new energy projects in the current
	period
Monetary fund	Primarily ascribable to sales proceeds and funds raised
	through non-public issuance of shares in the current period

Section 4 Operation Discussion and Analysis

• I. Overview

• (I) Analysis of the real estate market in 2016

• Analysis of the real estate market position nationwide in 2016

In 2016, the real estate policy stayed closely with the main tone of “solving the real estate inventory problem and promoting sustainable development of the real estate industry”; especially in the first half of 2016, various supporting policies including decrease of down payment for the first housing, adjustment of real estate purchase tax and reduced benchmark interest rate for banks were rolled out in succession. Under the influence of sustained monetary and industry policy easing and intensive release of upgrading demand, the real estate market saw an increase in both price and volume, scaling a new high. Data from the National Bureau of Statistics showed that in 2016 the real estate development investment nationwide came up to RMB10,258.1 billion, representing a nominal growth of 6.9% (or actual growth of 7.5% with price put aside) as compared with last year, and the growth rate was 5.9 ppts more than that in the preceding year, among which, residential investment

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MANAGEMENT DISCUSSION AND ANALYSIS OF JINKE PROPERTY

increased by 6.4% to RMB6,870.4 billion; sold GFA of commodity housing nationwide rose 22.5% from last year to 1,573.49 million m[2] , of which, the sold GFA of residential housing grew 22.4%; sales amount of commodity housing increased 34.8% to RMB11,762.7 billion, of which, the sales amount of residential housing grew 36.1%. Amid intensified regional differentiation, industrial concentration was further enhanced, pointing to an increasingly evident market fragmentation.

Rapid rise of house price and land price in hotspot cities arouse great attention of the country. From the third quarter of 2016 onwards, to curb the constantly warming real estate market, the meeting of the Political Bureau began to release control signal, and large cities quickly rolled out real estate control policies in response. The Central Economic Work Conference also made it clear that “houses are for self-living rather than speculation”, and some hotspot cities also tightened their previously easing policies on real estate.

2. Analysis of the real estate markets around major projects of the Company

As at the end of the reporting period, the Company has carried out real estate business in 14 provinces (cities). During the reporting period, the contracted real estate sales amount of the Company mainly came from Chongqing, Zhengzhou, Wuxi, Suzhou, Jinan, Beijing and Chengdu. The real estate market positions in these cities in 2016 are roughly as follows:

	Transaction
	area of land					Sales	The	Contracted	The
	for		In-		Sold GFA of	amount of	Company’s	amount of	Company’s
	commodity	Newly	construction	Completed	commodity	commodity	contracted	the	market
City	housing	started GFA	GFA	GFA	housing	housing	sold GFA	Company	share
	(0’000 m2)	(0’000 m2)	(0’000 m2)	(0’000 m2)	(0’000 m2)	(RMB’00	(0’000 m2)	(RMB’00	(%)
						million)		million)
Chongqing	5,521.02	4,875.16	27,363.39	4,421.30	6,257.15	3,432.00	277.12	146.86	4.43
Zhengzhou	2,475.87	5,287.21	14,229.97	1,455.24	2,859.18	2,333.89	22.96	24.03	0.80
Wuxi	813.33	978.18	5,981.17	1,171.01	1,272.72	1,106.02	28.83	19.69	2.27
Suzhou	2,139.38	2,966.51	12,124.10	1,882.07	2,494.05	3,322.54	13.20	17.87	0.53
Jinan	1,448.47	1,944.94	7,920.35	1,134.12	1,425.29	1,175.49	18.28	12.89	1.28
Beijing	415.44	2,795.57	12,976.00	2,369.95	1,658.93	4,561.60	3.18	12.78	0.19
Chengdu	2,015.11	4,312.79	19,880.94	2,734.24	3,928.77	2,948.07	18.91	12.76	0.48

Note: The aforesaid data are from China Index Academy and the Company

(II) Summary of the Company’s operation during the reporting period

1. The Company’s overall operation during the reporting period

• I Operating results hit a new high. In 2016, the Company posted operating revenue of RMB32,235 million, up 66.17% year on year, and net profit of RMB1,790 million, up 45.13% year on year; in particular, the net profit attributable to shareholders of the listed company was RMB1,232 million (with the effect of entrusted loans without a fixed term excluded), up 9.69% year on year. In 2016, various business segments of the Company posted a combined sales

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MANAGEMENT DISCUSSION AND ANALYSIS OF JINKE PROPERTY

APPENDIX III

amount of about RMB34.1 billion, representing a year-on-year rise of about 43%, the highest level in history; in particular, the real estate sector recorded contracted sales amount of about RMB31.9 billion, up approximately 44% year on year, and contracted sold GFA of about 4.99 million m[2] , up approximately 50% year on year. In 2016, the newly started GFA came in at about 5.68 million m[2] , completed GFA was approximate to 7.15 million m[2] and booked GFA was about 4.98 million m[2] ; 72 projects were under construction at the end of 2016, with in-construction GFA of about 11.55 million m[2] .

• II Development capability was continuously improved. During the reporting period, the Company obtained land resources effectively, and the full-year investment in land projects amounted to about RMB20.8 billion, with 34 parcels of land acquired in total. The Company entered key cities including Zhengzhou, Nanjing, Wuhan, Tianjin and Nanjing for the first time, basically completing the layout in “10 core cities” included in the Three Circles and One Belt and gradually effectuating the development philosophy of “focusing on development in hotspot tier-2 cities, supplemented by development in tier-1 and core tier-3 cities, and gradually exiting tier-4 cities”. In 2016, the Company carried out 10 acquisition and cooperation projects, with its capability to secure projects improved continuously. By the end of the reporting period, the Company had substantial land reserve, with the buildable area up to 18.46 million m[2] .

• III Evident results were achieved in asset operation. During the reporting period, the Company completed non-public issuance of shares as scheduled and raised funds of RMB4.5 billion, which improved its capital structure and effectively reduced the asset-liability ratio. The Company stepped up direct financing through capital market and leveraged bond financing, directly financing RMB15.5 billion. Through innovative securitization of assets of final real estate payment receivable, the financing cost scaled a new low and the liability structure was continuously improved. In 2016, sales proceeds of the Company were RMB32,946 million, up 36.20% year on year; the balance of monetary funds at the end of the period was RMB17,645 million, up 87.93% year on year, pointing to the improved cash flow position and enhanced debt repayment ability.

• IV The sales pattern experienced constant optimization. In 2016, starting with supply-side reform, the Company insisted on property destocking and sped up sales in tier-3 and tier-4 cities, and the full-year contracted sales amount from main tier-1 and tier-2 cities and capital cities amounted to about RMB23.4 billion, accounting for about 73% of the total sales, indicating a continuously improving sales pattern. The Company maintained a leadership in Chongqing market, with the contracted sales amount up to RMB14.7 billion and market share as high as 4.43%.

• V Industrial upgrading got momentum. During the reporting period, the Company set up an integrated community service group and education company, continuously promoting its industrial upgrading. Community life service performance was improved steadily, platform operation achieved initial results and full-year new contract area was on an upward trend. Moreover, the Company also expanded its business by entering more than 60 cities in Zhejiang, Shanxi, Hubei and Liaoning, with more than 300 projects under management. Under the further improved and expanded community operation and management system, the Company saw revenue add up to RMB970 million, representing a year-on-year growth of 45%, and net profit

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MANAGEMENT DISCUSSION AND ANALYSIS OF JINKE PROPERTY

surpass RMB100 million, representing a year-on-year growth of 150%. With the setup of the “Tianqi” community big data platform, the Company basically formed the information management capability. Integrated industrial operation gained momentum, the new project Liangjiang Health, Science and Technology City in Chongqing was secured, and full-year cumulative contracted sales of industrial projects reached RMB950 million, indicating the initial operation effects.

• VI Brand influence was continuously built up. The Company has been named one of China’s top 100 real estate enterprises for 12 years in a row and won many honorary titles including “China’s Top 20 Listed Real Estate Companies with Comprehensive Strength in 2016” and “China’s Top 10 Property Service Providers in 2016”. The Company paid sustained attention to investor relations management and earnestly protected shareholders’ interests, it received 51 institutions and organized six general meetings during the year. In 2016, the Company’s shares were successively included as targets in margin trading and short selling and Shenzhen-Hong Kong Stock Connect. The Company’s Board secretary won the 6th title of “Golden Board Secretary” granted by New Fortune and entered the “Half of Fame” of New Fortune.

• Operation and development of the Company’s real estate projects during the reporting period

• (1) The Company’s land reserves

By the end of the reporting period, the buildable area of the Company’s land reserve was about 18.46 million m[2] . The new project land reserves during the reporting period are as follows:

					Capacity
			Equity		building
SN	Land name	Region	**percentage **	Land area	area
				(m2)	(m2)
1	Wawuli Project in Zhengzhou	Zhengzhou, Henan	50%	160,343	561,199
2	Baohuashan Project	Zhenjiang, Jiangsu	100%	355,884	340,836
3	Liangjiang Industrial Project	Chongqing	100%	272,600	378,101
4	Lvbo Project in Zhengzhou	Zhengzhou, Henan	40%	66,588	166,435
5	Peninsula No. 1 Project in Hefei	Hefei, Anhui	100%	288,000	188,500
6	Wenjiang Project	Chengdu, Sichuan	100%	93,844	234,611
7	Zhaiziping Project in Kai County	Chongqing	100%	139,513	380,652
8	Binhu East Road Land in Kaizhou	Chongqing	100%	24,400	47,000
9	Zhangqiu Project in Jinan	Jinan, Shandong	50%	199,999	301,599
10	Land for Zone F of Lijia Cluster	Chongqing	100%	156,205	156,207
	in Chongqing
11	Shuangshan Land in Chongqing	Chongqing	100%	20,800	51,978
12	Wujiaqu Project in Urumqi	Urumqi, Xinjiang	51%	274,753	424,383

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MANAGEMENT DISCUSSION AND ANALYSIS OF JINKE PROPERTY

SN Land name Region Equity percentage Land area (m2) 13 Jixing West Road Project in Gaoxin District, Nanning Nanning, Guangxi 49% 82,684 14 Hedong District Project in Liuzhou Liuzhou, Guangxi 100% 90,066 15 Xiangsihu Project in Gaoxin District, Nanning Nanning, Guangxi 100% 88,412 16 Lanshan Mansion Project in Jinan Jinan, Shandong 100% 83,333 17 Roland Mansion Project in Qingdao Qingdao, Shandong 100% 16,267 18 Peach Garden Project in Tai’an Tai’an, Shandong 100% 217,333 19 Yaohai Project in Hefei Hefei, Anhui 100% 71,080 20 Baohe Project in Hefei Hefei, Anhui 100% 97,200 21 Luyang Project in Hefei Hefei, Anhui 100% 21,473 22 East Land of Tuanbo Outlets Tianjin 100% 209,258 23 East New City Project in Kai County Chongqing 100% 49,249 24 Land for Zone M of Caijia Chongqing 100% 177,239 25 Land for Zone P of Caijia Chongqing 100% 188,667 Total 3,445,190

Capacity building area (m2) 413,419 207,900 353,700 266,795 30,954 158,496 142,159 213,843 38,651 251,110 172,371 403,708 246,614

6,131,221

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MANAGEMENT DISCUSSION AND ANALYSIS OF JINKE PROPERTY

Actual	investment	amount as at	the end of	the reporting	period	(RMB0’000)	251,012		174,494		293,811		666,586		468,949		210,898		207,473		165,696		212,755		226,215		92,292
		Estimated	total project	investment	amount	(RMB0’000)	287,558		216,647		358,772		720,000		845,800		387,420		540,000		240,392		429,228		437,603		250,000
Cumulative	completed	GFA as at the	end of the	reporting	period	(m2)	435,187		301,559		478,483		1,612,543		207,350		228,803		—		321,451		485,487		335,995		132,375
					GFA	(m2)	793,736		789,259		924,045		1,835,796		1,643,159		540,885		1,002,708		736,645		946,065		1,093,584		600,974
			Capacity	building	area	(m2)	673,801		653,233		727,767		1,492,616		1,353,240		492,614		758,930		625,927		830,517		899,542		497,924
				Equity	percentage Land area	(m2)	100% 259,248		100% 323,921		100% 396,067		100% 681,649		100% 518,818		51% 150,851		100% 276,230		100% 194,927		100% 333,521		100% 341,831		100% 197,570
					Location Progress		Chongqing Under	construction	Chongqing Under	construction	Chongqing Under	construction	Chongqing Under	construction	Chongqing Under	construction	Chongqing Under	construction	Chongqing Under	construction	Chongqing Under	construction	Chongqing Under	construction	Chongqing Under	construction	Chongqing Under	construction
				Business	type		Residential		Residential		Residential		Residential		Residential		Residential		Residential		Residential		Residential		Residential		Residential
					Project		Bishan Central	Park	Jiangjin Central	Park	Caijia Jinke City		Bridge Village		Xiyong Tianchen		Jinke Times	Center	Tianyuandao		Dazu Central Park		Rongchang World	City	Changshou World	City	Fengdu Golden	Coast
					SN		1		2		3		4		5		6		7		8		9		10		11

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MANAGEMENT DISCUSSION AND ANALYSIS OF JINKE PROPERTY

Actual	investment	amount as at	the end of	the reporting	period	(RMB0’000)	113,278		126,200		271,166	190,492		111,395		37,558		40,955		117,057		151,623		481,155		169,940		215,317		128,297
		Estimated	total project	investment	amount	(RMB0’000)	222,043		232,214		287,248	304,850		300,000		221,384		220,000		249,138		200,000		515,579		241,426		235,015		232,783
Cumulative	completed	GFA as at the	end of the	reporting	period	(m2)	222,180		—		891,924	186,013		—		—		—		101,295		—		582,824		197,752		415,350		139,235
					GFA	(m2)	639,680		696,814		891,924	821,999		1,020,455		462,003		990,196		856,452		262,369		710,400		382,541		466,242		472,917
			Capacity	building	area	(m2)	505,922		592,506		750,328	701,834		798,387		375,689		953,815		711,469		221,440		521,472		277,216		362,169		382,473
				Equity	percentage Land area	(m2)	100% 259,758		80% 288,811		100% 213,129	60% 329,915		100% 318,579		100% 139,513		100% 292,066		100% 368,482		51% 62768		100% 206,455		100% 105,704		100% 142,694		100% 166410
					Location Progress		Chongqing Under	construction	Chongqing Under	construction	Chongqing Completed	Chongqing Under	construction	Chongqing Under	construction	Chongqing Not	commenced	Chongqing Under	construction	Zunyi, Under	Guizhou construction	Kunming, Under	Yunnan construction	Wuxi, Under	Jiangsu construction	Wuxi, Under	Jiangsu construction	Wuxi, Under	Jiangsu construction	Rugao, Under	Jiangsu construction
				Business	Project type		Lidu Central Park Residential		Nanhu Jinke Residential	Tianchen	Kaizhou City Residential	Yunyang World Residential	City	Wanzhou World Residential	View	Kaizhou Yunxitai Residential		Wushan Jinke City Residential		Zunyi Central Residential	Park	Yunnan Jinke Residential	Times Center	Wuxi World City Residential		Wuxi Jinke Center Residential		Wuxi Milan Residential		Rugao World City Residential
					SN		12		13		14	15		16		17		18		19		20		21		22		23		24

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MANAGEMENT DISCUSSION AND ANALYSIS OF JINKE PROPERTY

Actual	investment	amount as at	the end of	the reporting	period	(RMB0’000)	404,051		170,848		279,282		70,573		69,822		202,530		159,087		80,029		353,204		56,566
		Estimated	total project	investment	amount	(RMB0’000)	767,260		195,651		504,520		115,507		270,266		350,000		229,411		337,391		444,125		188,881
Cumulative	completed	GFA as at the	end of the	reporting	period	(m2)	274,304		—		—		335,802		—		199,644		182,553		—		—		—
					GFA	(m2)	1,452,242		305,681		772,659		603,035		261865		815,024		492,872		771,327		303,205		668,677
			Capacity	building	area	(m2)	1,133,327		223,526		557,038		566,306		252,579		637,677		418,045		618,542		234,571		647,801
				Equity	percentage Land area	(m2)	51% 269,988		100% 65,239		50% 160347		100% 633,250		100% 350,956		70% 160,882		100% 94,118		51% 160,592		100% 80,118		55% 333,998
					Progress		Under	construction	Under	construction	Under	construction	Under	construction	Not	commenced	Under	construction	Under	construction	Under	construction	Under	construction	Under	construction
					Location		Jinan,	Shandong	Qingdao,	Shandong	Zhengzhou,	Henan	Hefei,	Anhui	Zhenjiang,	Jiangsu	Neijiang,	Sichuan	Changsha,	Hunan	Xianyang,	Shaanxi	Beijing		Changsha,	Hunan
				Business	type		Residential		Residential		Residential		Residential		Residential		Residential		Residential		Residential		Residential		Industrial
					Project		Jinan Jinke City		Qingdao	Ruichanglu	Zhengzhou Jinke	City	Hefei Peninsula	No. 1	Baohuashan	Project	Neijiang Park	Palace	Changsha Times	Center	Shaanxi World	City	Beijing Nature	City	Changsha	Liangjiang	Science and	Technology City
					SN		25		26		27		28		29		30		31		32		33		34

— 643 —

APPENDIX III

MANAGEMENT DISCUSSION AND ANALYSIS OF JINKE PROPERTY

— 644 —

APPENDIX III

MANAGEMENT DISCUSSION AND ANALYSIS OF JINKE PROPERTY

(3) Sales of major real estate projects

					Total
					saleable	GFA with
					GFA as of	pre-sale	Booked
		Business		Equity	the end of	permit in	GFAin
SN	Project	type	Region	percentage	2016	2016	2016
					(m2)	(m2)	(m2)
1	Chayuan Central	Residential	Chongqing	100%	413,782	163,812	168,897.56
	Imperial Garden
2	Jiangjin Central Park	Residential	Chongqing	100%	469,948	264,357	156,011.53
3	Jinke City	Residential	Chongqing	100%	371,808	173,873	255,456.89
4	North Land of	Residential	Chongqing	51%	110,814	62,025	63,300.29
	Konggang Project
5	Bridge Village	Residential	Chongqing	100%	1,563,548	339,149	256,468.09
6	Nanchuan World City	Residential	Chongqing	100%	224,197	121,348	85,952.20
	Phase I
7	Shuangshan Jinke	Residential	Chongqing	100%	116,343	79,903	48,093.23
	Star
8	Tianyuandao	Residential	Chongqing	100%	143,732	143,732	0
9	Xiyong Tianchen	Residential	Chongqing	80%	576,897	280,785	112,297.52
10	Fuling Nature City	Residential	Chongqing	80%	431,393	179,283	213,377.24
11	Nanhu Jinke	Residential	Chongqing	80%	141,542	113,076	0
	Tianchen
12	Jinke World View	Residential	Chongqing	100%	136,653	117,099	0
13	Jinke Vega de la	Residential	Chongqing	100%	159,584	132,770	0
	Reina
14	Kaizhou Wealth	Residential	Chongqing	100%	465,095	152,722	82,932.48
	Center
15	Yunyang Jinke World	Residential	Chongqing	60%	428,597	193.766	116,724.48
	City
16	Zunyi Jinke Central	Residential	Zunyi,	100%	352,828	186,919	82,405.76
	Park		Guizhou
17	Yunnan Jinke Times	Residential	Kunming,	51%	159,114	159,114	0
	Center		Yunnan
18	Chengdu Jinke	Residential	Chengdu,	100%	154,157	98,103	0
	Oriental Elegance		Sichuan
	County
19	Hunan Jinke Center	Residential	Changsha,	100%	262,228	167,350	96,590.63
			Hunan
20	Xi’an Nature City	Residential	Xi’an,	100%	177,465	113,340	76,683.74
			Shaanxi

— 645 —

APPENDIX III

MANAGEMENT DISCUSSION AND ANALYSIS OF JINKE PROPERTY

									Total
									saleable	GFA with
									GFA as of	pre-sale	Booked
		Business					Equity		the end of	permit in	GFAin
SN	Project	type		Region		percentage			2016	2016	2016
									(m2)	(m2)	(m2)
21	Wuxi Jinke Center	Residential		Wuxi,			100%		229,114	78,239	153,161.56
				Jiangsu
22	Wuxi World City	Residential		Wuxi,			100%		579,909	239,476	126,357.53
				Jiangsu
23	Suzhou World View	Residential		Suzhou,			100%		175,750	84,412	57,712.59
				Jiangsu
24	Suzhou Jinke Palace	Residential		Suzhou,			100%		220,825	58,362	29,308.41
				Jiangsu
25	Suzhou Eastern	Residential		Suzhou,			100%		50,243	36,999	0
	Palace			Jiangsu
26	Zhengzhou Jinke City	Residential		Zhengzhou,				50%	238,645	238,645	0
				Henan
27	Hefei Peninsula	Residential		Hefei, Anhui			100%		329,118	76,878	42,397.51
	No. 1
28	Jinan Jinke City	Residential		Jinan,				51%	529,090	236,081	233,911.48
				Shandong
29	Beijing Jinke Palace	Residential		Beijing			100%		164,951	68,302	48,424.25
30	Changsha Science	Residential		Changsha,				55%	0	169,144	0
	and Technology City			Hunan
(4)	Major rental projects
			Business						Equity
SN	Project		type		Region				percentage	**Floor area **	Rental rate
										(m2)
1	Jinke International Plaza		Commercial		Yubei District,				100%	106,927.62	100%
					Chongqing
2	Fuling World Corridor	B	Commercial		Fuling	District,			100%	94,089.73	80.61%
					Chongqing

— 646 —

APPENDIX III

MANAGEMENT DISCUSSION AND ANALYSIS OF JINKE PROPERTY

• (5) Corporate financing

		Balance at the end	Financing cost
SN	Project	of the period	range	Term structure
		(RMB)
1	Bank loans	17,889,861,794	4.75%-11%	1-7 years
2	Loans from non-bank	4,638,489,600	6.1%-11.5%	1-3 years
	financial institutions
3	Bonds	22,120,000,000	4.7%-7.2%	1-5 years
Total		44,648,351,394

(6) Income and cost statements of major projects

		Business		Operating		Gross
SN	Region	type	Project	revenue	Operating cost	margin
				(RMB)	(RMB)
1	Chongqing	Residential	Chongqing Jinke Times	1,489,137,652.69	956,711,947.17	35.75%
			Center
2	Chongqing	Residential	Chongqing Jinke Bridge	1,391,964,940.90	1,000,535,093.46	28.12%
			Village
3	Chongqing	Residential	Chongqing Kaixian Kaizhou	865,344,051.90	568,006,897.91	34.36%
			City
4	Chongqing	Residential	Chongqing Kaixian Jinke	454,629,757.53	245,584,165.74	45.98%
			Wealth Center
5	Chongqing	Residential	Chongqing Jinke Central	1,127,917,623.95	1,009,270,694.53	10.52%
			Imperial Garden
6	Chongqing	Residential	Chongqing Beibei Jinke City	1,762,038,956.96	1,416,288,753.48	19.62%
7	Chongqing	Residential	Chongqing Jiangjin Jinke	802,258,306.66	614,178,505.17	23.44%
			Central Park
8	Chongqing	Residential	Chongqing Fuling Jinke	1,029,126,294.69	799,379,354.59	22.32%
			Nature City
9	Chongqing	Residential	Chongqing Changshou Jinke	912,579,524.68	768,077,053.67	15.83%
			World City
10	Chongqing	Residential	Chongqing Xiyong Tianchen	714,569,879.96	635,260,911.11	11.10%
11	Chongqing	Residential	Chongqing Yunyang Jinke	612,414,639.09	476,016,415.39	22.27%
			World City
12	Chongqing	Residential	Chongqing Bishan Jinke	609,363,294.11	534,350,483.31	12.31%
			Central Park
13	Chongqing	Residential	Chongqing Dazu Jinke	592,148,186.21	477,221,779.00	19.41%
			Central Park
14	Chongqing	Residential	Chongqing Hechuan Nature	431,581,744.22	344,345,897.05	20.21%
			City Project

— 647 —

APPENDIX III

MANAGEMENT DISCUSSION AND ANALYSIS OF JINKE PROPERTY

		Business		Operating		Gross
SN	Region	type	Project	revenue	Operating cost	margin
				(RMB)	(RMB)
15	Chongqing	Residential	Chongqing Rongchang World	508,681,896.95	382,782,588.45	24.75%
			City
16	Chongqing	Residential	Chongqing Jinke Konggang	483,615,903.17	278,988,270.86	42.31%
			City
17	Chongqing	Residential	Chongqing Nanchuan Jinke	431,967,201.67	375,749,244.11	13.01%
			World City
18	Beijing	Residential	Beijing Jinke Napa House	1,381,450,718.89	1,271,413,698.20	7.97%
19	Hunan	Residential	Changsha Jinke Center	540,009,796.32	457,308,679.45	15.31%
20	Sichuan	Residential	Neijiang Park Palace	652,310,457.28	535,216,122.05	17.95%
21	Sichuan	Residential	Chengdu Jinke Center	503,639,045.02	386,743,461.80	23.21%
22	Shaanxi	Residential	Xi’an Jinke Nature City	523,600,694.95	470,502,652.84	10.14%
23	Jiangsu	Residential	Wuxi Wealth Commercial	1,215,280,584.45	996,884,807.99	17.97%
			Plaza
24	Jiangsu	Residential	Wuxi Chengnan Aristocratic	930,581,839.46	859,327,623.19	7.66%
			Family
25	Jiangsu	Residential	Suzhou Nature Garden	1,046,382,039.34	923,796,450.72	11.72%
26	Jiangsu	Residential	Jiangsu Rugao Jinke World	524,447,919.24	449,920,315.30	14.21%
			City
27	Jiangsu	Residential	Suzhou World View	524,323,623.57	421,411,948.96	19.63%
28	Jiangsu	Residential	Suzhou Scene Mansion	502,744,019.39	415,525,946.50	17.35%
29	Jiangsu	Residential	Zhangjiagang Bridge	501,579,667.72	431,498,115.71	13.97%
			Mansion
30	Jiangsu	Residential	Zhangjiagang Bridge Court	932,717,910.25	705,248,117.78	24.39%
31	Guizhou	Residential	Zunyi Jinke Central Park	501,216,560.71	370,181,202.31	26.14%
32	Shandong	Residential	Jinan Jinke World City	1,630,386,105.09	1,185,261,588.31	27.30%

1. New energy business

During the reporting period, the Company stepped up management of grid-connected projects and took a series of measures to solve the problem of wind power curtailment and rationing. In 2016, on-grid power was 326,228,100 kwh, representing a year-on-year growth of 31.4%, and the power rationing loss ratio was 47.4%, representing a year-on-year decrease of 1.6 ppts. The Company strengthened collection of tariff subsidies and cumulatively recovered tariff subsidies of RMB64.73 million. As at the end of the reporting period, assets of new energy projects amounted to RMB2,590,545,200, and net assets were RMB925,114,900. In 2016, the operating revenue came in at RMB140,812,800, up 15.4% year on year.

During the reporting period, the Company actively promoted construction of the 200,000 kw Jingxia Project, and the full-year investment added up to RMB560 million, completing approximately 36% of the investment schedule.

— 648 —

APPENDIX III

MANAGEMENT DISCUSSION AND ANALYSIS OF JINKE PROPERTY

II. Analysis of main businesses

1. Overview

Refer to the contents of “I. Overview” in “Operation Discussion and Analysis”.

2. Revenue and cost

• (1) Composition of operating revenue

Unit: RMB

	2016	2016	2015
		Percentage		Percentage	Year-on-
		in the		in the	year
		operating		operating	increase/
	Amount	revenue	Amount	revenue	decrease
Total operating revenue	32,235,441,627.03	100%	19,398,573,320.90	100%	66.17%
By sector
Real estate sales	30,259,794,518.79	93.87%	18,033,959,311.54	92.96%	67.79%
Property management	972,900,790.65	3.02%	588,934,957.61	3.04%	65.20%
Hotel operation	281,605,571.48	0.87%	201,973,043.37	1.04%	39.43%
New energy	140,812,768.39	0.44%	121,968,406.24	0.63%	15.45%
Landscaping and others	580,327,977.72	1.80%	451,737,602.14	2.33%	28.47%
By product
Real estate sales	30,259,794,518.79	93.87%	18,033,959,311.54	92.96%	67.79%
Property management	972,900,790.65	3.02%	588,934,957.61	3.04%	65.20%
Hotel operation	281,605,571.48	0.87%	201,973,043.37	1.04%	39.43%
New energy	140,812,768.39	0.44%	121,968,406.24	0.63%	15.45%
Landscaping and others	580,327,977.72	1.80%	451,737,602.14	2.33%	28.47%
By region
Chongqing	19,910,349,049.92	61.77%	15,069,887,440.51	77.69%	32.12%
Jiangsu	6,715,272,618.06	20.83%	2,910,015,099.00	15.00%	130.76%
Other regions	5,609,819,959.05	17.40%	1,418,670,781.39	7.31%	295.43%

• (2) Sectors, products or regions from which the revenues account for over 10% of the Company’s operating revenue or operating profit

• Applicable □ Not Applicable

Whether the Company needs to abide by requirements for disclosure by special industry Yes

— 649 —

APPENDIX III

MANAGEMENT DISCUSSION AND ANALYSIS OF JINKE PROPERTY

Real estate

							Unit: RMB
				Increase/
				decrease in
				operating
				revenue as		Increase/	Increase/
				compared	decrease in		decrease in
				with the	operating cost as		gross margin as
				same period	compared with		compared with
				of the	the same period		the same period
	Operating		Gross	preceding	of the preceding		of the preceding
	revenue	Operating cost	margin	year		year	year
By sector
Real estate	30,259,794,518.79	24,297,619,251.82	19.70%	67.79%		85.51%	Decrease of
sales							7.67%
By product
Real estate	30,259,794,518.79	24,297,619,251.82	19.70%	67.79%		85.51%	Decrease of
sales							7.67%
By region
Chongqing	19,910,349,049.92	15,132,973,089.78	23.99%	32.12%		37.38%	Decrease of
							2.91%
Jiangsu	6,715,272,618.06	5,656,272,404.56	15.77%	130.76%		152.76%	Decrease of
							7.32%

As the statistical calibre of main business data of the Company was adjusted in the reporting period, the main business data are those adjusted as per the calibre at the end of the reporting period in the past one year.

• Applicable � Not Applicable

• (3) Whether the Company’s sales revenue from material objects is higher than labor service revenue

�Yes □ No

					Year-on-year
					increase/
Sector	Item	Unit	2016	2015	decrease
Real estate	Contracted sales	0,000 m2	499	332	50.30%
development	area
	Contracted sales	RMB100	319	221	44.34%
	amount	million

— 650 —

MANAGEMENT DISCUSSION AND ANALYSIS OF JINKE PROPERTY

APPENDIX III

Description of reasons for a year-on-year change of over 30% in relevant data

• Applicable □Not Applicable

The Company’s real estate sales increased significantly during the reporting period.

• (4) Performance of major sales contracts signed by the Company as at the reporting period

• Applicable � Not Applicable

• (5) Composition of operating revenue

Sector and product classification

Unit: RMB

		2016		2015
		Percentage in			Percentage in	Year-on-year
		**the **	operating		the operating	increase/
Sector	Item	Amount	cost	Amount	cost	decrease
Real estate sales	Real estate sales	24,297,619,251.82	95.10%	13,097,536,021.97	94.31%	85.51%
Property	Property management	756,240,869.37	2.96%	452,045,818.68	3.26%	67.29%
management
Hotel operation	Hotel operation	83,118,160.85	0.33%	63,023,806.93	0.45%	31.88%
New energy	New energy	74,743,910.43	0.29%	44,509,612.98	0.32%	67.93%
Landscaping and	Landscaping and	337,881,020.35	1.32%	229,888,396.42	1.66%	46.98%
others	others

Unit: RMB

		2016		2015
		Percentage in			Percentage in	Year-on-year
		**the **	operating		the operating	increase/
Product	Item	Amount	cost	Amount	cost	decrease
Real estate sales	Real estate sales	24,297,619,251.82	95.10%	13,097,536,021.97	94.31%	85.51%
Property	Property management	756,240,869.37	2.96%	452,045,818.68	3.26%	67.29%
management
Hotel operation	Hotel operation	83,118,160.85	0.33%	63,023,806.93	0.45%	31.88%
New energy	New energy	74,743,910.43	0.29%	44,509,612.98	0.32%	67.93%
Landscaping and	Landscaping and	337,881,020.35	1.32%	229,888,396.42	1.66%	46.98%
others	others

— 651 —

APPENDIX III

MANAGEMENT DISCUSSION AND ANALYSIS OF JINKE PROPERTY

• (6) Whether the consolidation scope changed in the reporting period

• Yes □No

See the Company’s financial report and Note VI to the Consolidated Financial Statements for details.

• (7) Material changes or adjustments in the Company’s businesses, products or services in the reporting period

□ Applicable � Not Applicable

• (8) Information about main customers and main suppliers

Information about the Company’s main customers

Total amount of sales to the top 5 customers (RMB)	224,117,373.72
Percentage of the total amount of sales to the top 5 customers in the	0.70%
annual total sales amount
Percentage of the amount of sales to connected parties among the top	0.00%
5 customers in the annual total sales amount

Information about the Company’s top 5 customers

			Percentage in the
			annual total sales
SN	Name of customer	Sales amount	amount
		(RMB)
1	Customer 1	140,812,768.39	0.44%
2	Customer 2	23,980,000.00	0.07%
3	Customer 3	21,643,333.33	0.07%
4	Customer 4	19,350,000.00	0.06%
5	Customer 5	18,331,272.00	0.06%
Total	—	224,117,373.72	0.70%

Other information about the main customers

• Applicable � Not Applicable

— 652 —

APPENDIX III

MANAGEMENT DISCUSSION AND ANALYSIS OF JINKE PROPERTY

Information about the Company’s main suppliers

Total amount of purchase from the top 5 suppliers (RMB) 2,685,303,739.69 Percentage of the total amount of purchase from the top 5 suppliers in 23.00% the annual total purchase amount

Information about the Company’s top 5 suppliers

			Percentage in	Percentage in
				annual total
SN	Name of supplier	Purchase amount	purchase amount
		(RMB)
1	Supplier 1	1,105,457,516.45		9.47%
2	Supplier 2	573,157,655.49		4.91%
3	Supplier 3	378,628,453.69		3.24%
4	Supplier 4	347,616,314.06		2.98%
5	Supplier 5	280,443,800.00		2.40%
Total	—	2,685,303,739.69		23.00%

Other information about the main suppliers

□ Applicable � Not Applicable

3. Expenses

Unit: RMB

			Year-on-year
			increase/	Description of
	2016	2015	decrease	material changes
Sales expenses	980,862,344.26	693,511,364.21	41.43%	Primarily ascribable
				to increased sales in
				the current period
Management	1,247,074,213.53	922,634,484.07	35.16%	Primarily ascribable
expenses				to regional
				expansion and
				increased
				development
				projects in the
				current period
Financial	305,433,886.51	268,251,960.03	13.86%
expenses

— 653 —

APPENDIX III

MANAGEMENT DISCUSSION AND ANALYSIS OF JINKE PROPERTY

1. R&D investment □ Applicable � Not Applicable 5. Cash flow

Unit: RMB

			Year-on-year
			increase/
Item	2016	2015	decrease
Subtotal of cash inflows from	37,616,162,021.23	27,149,506,802.23	38.55%
operating activities
Subtotal of cash outflows for	31,372,040,540.59	26,737,236,774.52	17.33%
operating activities
Net cash flows from operating	6,244,121,480.64	412,270,027.71	1414.57%
activities
Subtotal of cash inflows from	13,694,619.72	67,189,911.11	-79.62%
investing activities
Subtotal of cash outflows for	5,664,683,387.92	1,032,413,767.65	448.68%
investing activities
Net cash flows from investing	-5,650,988,768.20	-965,223,856.54	485.46%
activities
Subtotal of cash inflows from	39,681,420,933.82	31,622,219,872.03	25.49%
financing activities
Subtotal of cash outflows for	30,982,871,266.14	28,907,244,532.75	7.18%
financing activities
Net cash flows from financing	8,698,549,667.68	2,714,975,339.28	220.39%
activities
Net increase in cash and cash	9,291,682,380.12	2,162,021,510.45	329.77%
equivalents

Description of main reasons for material year-on-year changes in relevant data

� Applicable □ Not Applicable

Increase in subtotal of cash inflows from operating activities is primarily due to increase in sales proceeds in the current period; increase in net cash flows from operating activities is primarily due to increase in sales proceeds in the current period; increase in subtotal of cash outflows for investing activities is primarily due to investment in new energy projects and consideration paid for debt-assumed acquisition of project companies in the current period; decrease in net cash flows from investing activities is primarily due to investment in new energy projects and consideration paid for debt-assumed acquisition of project companies in the current period; increase in net cash flows from

— 654 —

APPENDIX III

MANAGEMENT DISCUSSION AND ANALYSIS OF JINKE PROPERTY

financing activities is primarily due to increased issue of medium-term notes and non-public issuance of bonds in the current period; increase in net increase in cash and cash equivalents is primarily due to increased sales proceeds and funds raised through non-public issuance of shares in the current period.

Description of reasons for big difference between the Company’s net cash flows from operating activities in the reporting period and net profit in the current year

□ Applicable � Not Applicable

• III. Analysis of non-main businesses

□ Applicable � Not Applicable

• IV. Assets and liabilities

1. Material changes in asset composition

Unit: RMB

	End of 2016	End of 2016	End of 2015	End of 2015
		Percentage		Percentage	Increase/	Description
		in total		in total	decrease in	of material
	Amount	assets	Amount	assets	percentage	changes
Monetary fund	17,644,842,213.69	16.15%	9,389,188,261.83	9.83%	6.32%	It was
						primarily due
						to increase in
						sales proceeds
						and funds
						raised from
						non-public
						issuance of
						shares
Accounts	829,286,610.93	0.76%	729,045,821.34	0.76%	0.00%
receivable
Inventories	71,527,195,481.07	65.47%	72,163,859,948.41	75.52%	-10.05%
Investment	2,885,492,754.63	2.64%	2,888,950,566.79	3.02%	-0.38%
properties
Long-term equity	786,240,483.34	0.72%	391,087,261.46	0.41%	0.31%
investments
Fixed assets	2,666,413,793.03	2.44%	2,528,455,846.44	2.65%	-0.21%
Construction in	562,088,918.24	0.51%	158,257,610.66	0.17%	0.34%
progress
Short-term	1,526,000,000.00	1.40%	1,881,600,000.00	1.97%	-0.57%
borrowings

— 655 —

APPENDIX III

MANAGEMENT DISCUSSION AND ANALYSIS OF JINKE PROPERTY

	End of 2016	End of 2016	End of 2015	End of 2015
		Percentage		Percentage	Increase/	Description
		in total		in total	decrease in	of material
	Amount	assets	Amount	assets	percentage	changes
Long-term	18,507,910,000.00	16.94%	13,294,059,999.99	13.91%	3.03%	It was
borrowings						primarily due
						to increase in
						borrowings
						with a term of
						more than one
						year
Non-current	5,261,934,693.99	4.82%	18,099,147,400.00	18.94%	-14.12%	It was
liabilities						primarily
maturing within						because the
one year						non-current
						liabilities
						maturing
						within one
						year at the
						beginning of
						the period
						were repaid in
						the current
						period
Bonds payable	18,891,277,180.01	17.29%	5,313,257,329.71	5.56%	11.73%	It was
						primarily due
						to increase in
						scale of
						medium-term
						notes issued
						and bonds
						non-publicly
						issued in the
						current period

— 656 —

APPENDIX III

MANAGEMENT DISCUSSION AND ANALYSIS OF JINKE PROPERTY

2. Assets and liabilities measured at fair value

• Applicable □ Not Applicable

Unit: RMB

		Gains/losses	Cumulative	Provision for
		from change in	changes in	depreciation	Purchase
	Amount at the	fair value in	fair value	withdrawn in	amount in	Sales amount	Amount
	beginning of	the current	stated as	the current	the current	in the current	at the end of
Item	the period	period	equity	period	period	period	the period
Financial assets
Investment
properties	2,888,950,566.79	63,367,452.14	620,250,211.75			2,885,492,754.63
Total	2,888,950,566.79	63,367,452.14	620,250,211.75			2,885,492,754.63
Financial
liabilities	0.00	0.00	0.00				0.00

Whether material changes appeared in the measurement attributes of the Company’s major assets in the reporting period

• □Yes �No

• Restricted assets as at the end of the reporting period

Unit: RMB

Book value at the Book value at the beginning of the Reason for Item end of the period period restriction Monetary fund 385,856,061.48 1,421,884,489.74 Margin deposit Accounts receivable [Note] 241,421,238.76 162,071,601.97 Pledged loan Inventories 18,093,358,238.81 18,303,055,894.48 Mortgaged loan Investment properties 637,608,751.33 1,932,254,486.05 Mortgaged loan Fixed assets 1,807,729,827.73 1,369,612,973.13 Mortgaged loan Construction in progress 197,719,075.96 149,031,423.92 Mortgaged loan Intangible assets 4,035,689.71 24,886,771.14 Mortgaged loan Total 21,367,728,883.78 23,362,797,640.43

— 657 —

APPENDIX III

MANAGEMENT DISCUSSION AND ANALYSIS OF JINKE PROPERTY

Note: According to the Maximum Amount Pledge Contract regarding accounts receivable under the Fixed Asset Borrowing Contract signed by and between the subsidiary Huaran Oriental and Industrial and Chongqing Jianxin North Road Sub-branch of Commercial Bank of China Limited (the Pledgee) for the construction of “Yandun-based 6th Wind Power Plant of the 200,000 KW Wind Power Project in Southeast Wind Region in Hami, Xinjiang”, the Pledgor agreed to provide its revenues concerning the 100,000 KW part in the period of its principal creditor’s right over the project to the Pledgee as a pledge guarantee. According to the Entrusted Loan Agreement and the Pledge Contract of CMS Super Value - Jinke Property Asset-backed Plan No.1 under the Asset Transfer Agreement of CMS Super Value - Jinke Property Asset-backed Plan No.1 signed by the Company and the Company’s subsidiary Jinke Property Services Group Limited (the Pledgor) with CMS Asset Management Co., Limited (the Pledgee), the Pledgor agreed to provide all the property service fees and parking management fees it collected to the Pledgee as a pledge guarantee.

According to the Asset Purchase and Sale Agreement of CMS Super Value - Jinke Co., Ltd. Accounts Receivable (Phase I) Asset-backed Plan signed between the Company and CMS Asset Management Co., Limited (hereinafter referred to as CMS Asset Management), CMS Asset Management should set up a special plan to use the raised funds to purchase the creditor’s right (that is, requiring the house buyers to make payment for the houses) as well as other rights and attached security interests enjoyed by the Company and the 26 project companies (including but not limited to these) in the consolidation scope as from the date of setup of the special plan (hereinafter referred to as underlying assets), and open a supervision account to deposit the proceeds resulting from the underlying assets. As the range and amount of the underlying assets are constantly changing, the specific amount of accounts receivable corresponding to restriction of the ownership cannot be determined.

V. Investment

I. Overview

� Applicable □ Not Applicable Investment in the reporting period Investment in the same period of the (RMB) preceding year (RMB) Change 1,308,273,581.66 748,817,400.00 74.71%

— 658 —

APPENDIX III

MANAGEMENT DISCUSSION AND ANALYSIS OF JINKE PROPERTY

		Unit: RMB				Disclosure index	(if any)	www.cninfo.com.cn																				—
					Date of	disclosure (if	any)	6 December	2016																			—
				Whether the	Company is	involved in	litigation	No																				—
			Investment	profit and	loss in the	current	period																					—
						Anticipated	income																					—
						Progress as at the	balance sheet date	Relevant industrial	and commercial	registration and	handover procedures				In process													—
						Product	type	None																				—
2. Major equity investments obtained in the reporting period	�Applicable □Not Applicable				Name of	invested Major Investment Investment Shareholding Investment	company business way amount percentage Fund source Partner term	Jinan Real estate Acquisition 2,350,8 100.00 % Self-raised 100% None	Hairui business 65,941. 99 shareholding, no	Real partner	Estate	Development	Co.,	Ltd.	Qingdao	Haichang	Real	Estate	Co.,	Ltd.,	Taian	Haida	Real	Estate	Development	Co.,	Ltd.	Total — — 2,350,8 — — — —	65,941. 99

— 659 —

APPENDIX III

MANAGEMENT DISCUSSION AND ANALYSIS OF JINKE PROPERTY

3. Major ongoing non-equity investments in the reporting period

□ Applicable � Non-Applicable

1. Financial assets investment

2. (1) Securities investment

□ Applicable � Non-Applicable

The Company did not make any securities investment in the reporting period.

• (2) Derivatives investment

□ Applicable � Non-Applicable

The Company did not make any derivatives investment in the reporting period.

1. Use of raised funds

2. Applicable □ Not Applicable

— 660 —

APPENDIX III

MANAGEMENT DISCUSSION AND ANALYSIS OF JINKE PROPERTY

		Unit: RMB’0,000		Amount of	raised funds	that have	Intended use and been laid idle	direction of raised for over two	funds unused years	Deposited in the 0	special account for	raised funds and	used for temporary	supplement of	working capital	Deposited in the 0	special account for	raised funds and	used for temporary	supplement of	working capital	— 0
							Total amount	of raised	funds unused	49,821.03						206,730.84						256,551.87
			Percentage of	accumulated	total amount	of raised	funds with	purpose	changed	0.00%						0.00%						0.00%
				Accumulated	total amount	of raised	funds with	purpose	changed	0						0						0
			Total amount	of raised	funds with	purpose	changed in	the reporting	period	0						0						0
(1) General use of raised funds	�Applicable □Not Applicable				Total amount Total amount	Year of raised of raised	of Total amount funds used in funds	fund Way of fund of raised the current accumulatively	raising raising funds period used	2014 Non-public 217,233.28 25,583.82 167,412.25	issuance of	shares				2016 Non-public 444,208.80 237,477.96 237,477.96	issuance of	shares				Total — 661,442.08 263,061.78 404,890.21

— 661 —

APPENDIX III

MANAGEMENT DISCUSSION AND ANALYSIS OF JINKE PROPERTY

Description of general use of raised funds

• (I) Actual amount of raised funds and time when the raised funds arrived at the account

• Upon approval by China Securities Regulatory Commission in Document Zheng Jian Xu Ke [2014] No. 987, the Company non-publicly issued 220 million RMB ordinary shares (A shares) to specific targets via its lead underwriter Essence Securities Co., Ltd. (hereinafter referred to as Essence Securities). The issuance price was RMB10.00 per share and RMB2,200 million was raised in total. After the underwriting fee and sponsorship fee of RMB26.2 million were deducted, the raised funds came to RMB2,173.8 million, which was remitted by the lead underwriter Essence Securities to the Company’s account for supervision of raised funds on 5 December 2014. Moreover, after deduction of increased external expenses of RMB1,467,200 directly relating to issuance of equity securities including reporting accountant’s fee and lawyer’s fee, the net raised funds of the Company amounted to RMB2,172,332,800 this time. The abovementioned raised funds have been verified by Pan-China Certified Public Accountants (special general partnership), which has issued a Capital Verification Report (Tian Jian Yan [2014] No. 8-57).

• Upon approval by China Securities Regulatory Commission in Document Zheng Jian Xu Ke [2016] No. 1319, the Company non-publicly issued 1,020,408,163 RMB ordinary shares (A shares) to specific targets via its joint lead underwriters Great Wall Securities Co., Ltd. (hereinafter referred to as Great Wall Securities) and Huatai United Securities Co., Ltd. The issuance price was RMB4.41 per share and RMB4,500 million was raised in total. After the underwriting fee and sponsorship fee of RMB56 million were deducted, the raised funds came to RMB4,444 million, which was remitted by the lead underwriter Great Wall Securities to the Company’s account for supervision of raised funds on 26 September 2016. Moreover, after deduction of increased external expenses of RMB1.912 million directly relating to issuance of equity securities including online issuance fee, prospectus printing fee, reporting accountant’s fee, lawyer’s fee and assessment fee, the net raised funds of the Company amounted to RMB4,442.088 million this time. The abovementioned raised funds have been verified by Pan-China Certified Public Accountants (special general partnership), which has issued a Capital Verification Report (Tian Jian Yan [2016] No. 8-90).

(II) Use and balance of raised funds

The raised funds used by the Company in previous years reached RMB1,418,284,300, and the net amount of bank interest received after deduction of bank charges in previous years was RMB2.4912 million. In 2016, the raised funds actually used amounted to RMB2,630,617,800, including RMB1,990 million used for temporary supplement of working capital. In 2016, the net amount of bank interest received after deduction of bank charges was RMB12,505,100. The raised funds accumulatively used came to RMB4,048,902,100 and the net amount of bank interest accumulatively received after deduction of bank charges was RMB14,996,300. As at 31 December 2016, the balance of raised funds was RMB590.515 million (including net amount of bank interest accumulatively received after deduction of bank charges).

— 662 —

APPENDIX III

MANAGEMENT DISCUSSION AND ANALYSIS OF JINKE PROPERTY

• (2) Information about projects to be invested in with raised funds

• Applicable □ Not Applicable

Unit: RMB’0,000

			Whether the							Date when			Whether
			projects are		Total	Amount	Accumulated		Investment	the projects			material
			changed	Total amount	investment	invested in	amount	progress as at		reach the	Benefits	Whether the	changes
**Projects **		to be invested in	(including	of raised	after	the	invested as at		the end of	intended	achieved in	anticipated	appear in
and investment direction			partial	funds to be	adjustment	reporting	the end of the		the period	condition for	the reporting	results are	project
**of **	over-raised funds		change)	invested	(1)	period	period (2)		(3)＝(2)/(1)	use	period	achieved	feasibility
Projects		to be invested in
1.		Chongqing ●Jinke	No	118,490.88	118,490.88	19,905.23	93,298.27		78.74%	31 August	15,062.60	Note	No
		Kaizhou Wealth								2017
		Center
2.		Chongqing ●Jinke	No	98,742.4	98,742.4	5,678.59	74,113.98		75.06%	30 June 2017	2,358.99	Note	No
		Jiangjin World City
3.		Chongqing ●	No	40,000	76.62%	40,000	30,647.28		30,647.28	30 June 2017	1,427.06	Note	No
		Nanchuan Jinke
		World City Phase I
4.		Zunyi ●Jinke	No	110,000	33.41%	110,000	36,747.86		36,747.86	30 June 2017	5,324.74	Note	No
		Central Park Phase
		I
5.		Chongqing ●	No	150,000	18.54%	150,000	27,812.47		27,812.47	30 April 2018		Note	No
		Wanzhou Jinke
		Guanlan
6.		200,000 KW wind	No	54,208.8	96.42%	54,208.8	52,270.35		52,270.35	31 December		Note	No
		power project in								2017
		District C of the
		second wind farm
		in Jingxia
7.		Repayment of	No	90,000	90,000	90,000	90,000 100.00%						No
		borrowings from
		financial
		institutions
Subtotal		of projects to be	—	661,442.08	661,442.08	263,061.78	404,890.21		—	—	24,173.39	—	—
	invested in
Total			—	661,442.08	661,442.08	263,061.78	404,890.21		—	—	24,173.39	—	—

Failure to reach planned progress or Not applicable anticipated results and the reasons (specific project) Description about material changes Not applicable in project feasibility Amount, purpose and use progress Not applicable of the over-raised funds

— 663 —

APPENDIX III

• Change in place of implementation of projects invested in with raised funds

• Adjustment of method for implementation of projects invested in with raised funds

• Up-front cost and replacement of projects invested in with raised funds

• Temporary supplement of working capital with idle raised funds

MANAGEMENT DISCUSSION AND ANALYSIS OF JINKE PROPERTY

• Not applicable

Not applicable

Applicable

On 15 November 2016, the 38th meeting of the 9th board of directors of the Company deliberated and approved the Proposal on the Company’s Use of Raised Funds to Replace the Self-collected Funds Previously Invested in the Projects and the Company was approved to use the raised funds to replace the self-collected funds of RMB2,190.1211 million previously invested in the projects.

Applicable

Upon deliberation and approval by the 29th meeting of the 9th board of directors of the Company held on 7 March 2016, the Company was approved to use idle raised funds of not more than RMB300 million (inclusive) to temporarily supplement working capital for not more than 12 months and the amount used for temporary supplement of working capital was RMB300 million. As at 4 November 2016, the Company had returned the raised fund of RMB300 million used for temporary supplement of working capital to the Company’s special account for raised funds. Upon deliberation and approval by the 38th meeting of the 9th board of directors of the Company held on 15 November 2016, the Company was approved to use idle raised funds of not more than RMB1,990 million (inclusive) to temporarily supplement working capital for not more than 12 months and the amount used for temporary supplement of working capital was RMB1,990 million. As at 31 December 2016, the raised funds used for supplement of working capital totaled RMB1,990 million.

• Amount of surplus raised funds in project implementation and the reasons

Not applicable

— 664 —

APPENDIX III

Intended use and direction of raised funds unused

MANAGEMENT DISCUSSION AND ANALYSIS OF JINKE PROPERTY

As at 31 December 2016, the Company had six special accounts for raised funds and the raised funds were deposited as follows:

		Balance of raised
Issuing bank	Bank account No.	funds (RMB)	Notes
Agricultural Bank of China	31440801040003823	116,133,029.02	Used for the project
Limited, Chongqing Kaixian			of Chongqing Kaixian
Ankang Sub-branch			• Jinke Wealth Center
Business Department of	7421010182600453565	48,703,761.98	Used for the project
Chongqing Branch of China			of Chongqing • Jinke
CITIC Bank			Jiangjin World City
China Bohai Bank, Beijing	2003242051000185	94,134,044.24	Used for the project
East Second Ring Road			of Chongqing •
Sub-branch			Nanchuan Jinke
			World City Phase I
China CITIC Bank	8111201012100156889	163,986,730.03	Used for the project
Corporation Limited,			of Zunyi • Jinke
Chongqing Liangjiang			Central Park Phase I
Sub-branch
China CITIC Bank	8111201012300156915	143,159,302.54	Used for the project
Corporation Limited,			of Chongqing •
Chongqing Liangjiang			Wanzhou Jinke
Sub-branch			Guanlan
Industrial and Commercial	3100023419200243082	19,872,850.92	Used for 200,000 KW
Bank of China Limited,			wind power project in
Chongqing Jianxin North			District C of the
Road Sub-branch			second wind farm in
			Jingxia
China CITIC Bank Corporation	8111201012900156438	4,525,245.90	Interest income
Limited, Chongqing
Liangjiang Sub-branch
Total		590,514,964.63

Problems or other conditions in use and disclosure of raised funds

Notes: 1. As Chongqing • Jinke Kaizhou Wealth Center, Chongqing • Jinke Jiangjin World City, Chongqing • Nanchuan Jinke World City Phase I, Zunyi • Jinke Central Park Phase I and Chongqing • Wanzhou Jinke Guanlan were developed and delivered by stages, the date when the projects reach the intended condition for use herein is the date when construction of the building is completed and which is the closest to the balance sheet date.

— 665 —

APPENDIX III

MANAGEMENT DISCUSSION AND ANALYSIS OF JINKE PROPERTY

1. As Chongqing • Jinke Kaizhou Wealth Center, Chongqing • Jinke Jiangjin World City, Chongqing • Nanchuan Jinke World City Phase I and Zunyi • Jinke Central Park Phase I were developed and delivered by stages and only some houses were sold in the current period, it is difficult to judge whether the anticipated results are achieved before a comparison is made between the achieved results and the anticipated results after the projects invested in with raised funds sell out all houses.

2. As the construction of Chongqing • Wanzhou Jinke Guanlan was not completed in the current period and has not reached the intended condition for use, no result was achieved in the current year.

3. As the 200,000 KW wind power project in District C of the second wind farm in Jingxia was still under construction in the current period and has not reached the intended condition for use, no result was achieved in the current year.

4. (3) Changes in use of raised funds

□ Applicable � Not Applicable

• VI. Disposal of material assets and equity interest

• Disposal of material assets

• Applicable � Not Applicable

The Company did not dispose of any material assets during the reporting period.

1. Disposal of material equity interest

2. Applicable � Not Applicable

VII. Analysis of major subsidiaries and investees

• Applicable □ Not Applicable

— 666 —

APPENDIX III

MANAGEMENT DISCUSSION AND ANALYSIS OF JINKE PROPERTY

Unit: RMB		Operating profit Net profit	1,118,375,285.26 1,134,063,333.11		247,363,156.07 196,776,179.01		420,299,023.40 337,756,754.19		326,200,776.71 257,521,326.80		273,145,815.49 205,460,686.54		224,209,257.91 213,477,092.94		-144,064,776.54 -148,253,347.48		272,311,942.76 204,379,669.78			-231,589,292.49 -266,763,927.26
	Major Registered Operating	business capital Total assets Net assets revenue	Real estate 20,000,000.00 9,802,495,303.72 1,421,542,658.92 366,753,556.18		Real estate 50,000,000.00 2,283,293,716.02 269,167,450.36 1,391,964,940.90		Real estate 294,117,647.06 1,306,056,217.83 341,458,883.23 1,489,137,652.69		Real estate 200,000,000.00 5,299,403,726.99 2,197,914,086.82 1,323,358,117.69		Real estate1,000,000,000.00 4,087,339,042.10 1,104,755,764.78 1,630,386,105.09		Real estate 366,640,000.00 6,080,440,780.99 1,551,248,103.84 2,145,862,423.91		Real estate 100,000,000.00 23,325,108.81 -47,184,613.19 2,229,094.87		Real estate 200,000,000.00 856,636,019.19 265,808,273.08 1,050,474,499.20			Real estate 400,000,000.00 1,331,387,988.91 -18,747,362.15 627,280,940.72
	Company	type	Subsidiary		Subsidiary		Subsidiary		Subsidiary		Subsidiary		Subsidiary		Subsidiary		Subsidiary			Investee
		Company name	Chongqing Jinke Real Estate	Development Co., Ltd.	Chongqing Jinke Xingju Real	Estate Co., Ltd.	Chongqing Jinke Zhongjun Real	Estate Development Co., Ltd.	Chongqing Jinke Junyao Real	Estate Development Co., Ltd.	Jinan Jinke Xicheng Real Estate	Development Co., Ltd.	Wuxi Jinke Jiarun Real Estate	Development Co., Ltd.	Jiangyin Jinke Real Estate	Development Co., Ltd.	Zhangjiagang Bonded Area Jinke	Ruifeng Real Estate	Development Co., Ltd.	Wujiang Jinke Yangzi Real Estate	Development Co., Ltd.

— 667 —

APPENDIX III

MANAGEMENT DISCUSSION AND ANALYSIS OF JINKE PROPERTY

Acquisition and disposal of subsidiaries during the reporting period

• Applicable □ Not Applicable

Method of

Company name

acquiring and disposing of subsidiaries during the reporting period

Effect on overall production & operation and business performance

Jurong Yifeng Real Estate Development Co., Ltd.

Anhui Xihu Xincheng Real Estate Co., Ltd. Henan Guofengyuan Real Estate Co., Ltd. Zhengzhou Yuanwei Enterprise Management Consulting Co., Ltd.

Henan Zhongjian Jinlun Real Estate Co., Ltd. Shandong Lanhai Linghang E-commerce Industrial Park Co., Ltd.

Shandong Linghang Real Estate Co., Ltd. Chongqing Aojia Real Estate Co., Ltd. Dehong Huajiang Property Co., Ltd.

Chongqing Shunsheng Chengxun Property Management Co., Ltd.

Chengdu Jinke Zhanhong Real Estate Development Co., Ltd.

Chongqing Jinke Kejian Real Estate Co., Ltd.

Chongqing Jusihai Enterprise Management Co., Ltd.

Nanning Jinzhuoli Real Estate Development Co., Ltd.

• Liuzhou Jinmingliu Real Estate Development Co., Ltd.

Jinke Property Group (Wuhan) Co., Ltd.

Nanjing Jinke Tianchen Real Estate Co., Ltd. Hunan Jinke Yida Industry Operation and Management Co., Ltd.

Shenzhen Jinke Industry Investment Fund Management Co., Ltd.

Equity transfer

No material effect

Equity transfer Equity transfer Equity transfer

No material effect No material effect No material effect

Equity transfer Equity transfer

No material effect No material effect

Equity transfer No material effect Equity transfer No material effect Equity transfer No material effect Equity transfer No material effect

New establishment No material effect

New establishment No material effect New establishment No material effect New establishment No material effect New establishment No material effect

New establishment No material effect New establishment No material effect New establishment No material effect New establishment No material effect

— 668 —

APPENDIX III

MANAGEMENT DISCUSSION AND ANALYSIS OF JINKE PROPERTY

Method of

Company name

acquiring and Effect on overall disposing of production & subsidiaries during operation and the reporting business period performance

Chongqing Tengjie Trading Co., Ltd. New establishment No material effect Chengdu Hongteng Century Business New establishment No material effect Management Co., Ltd. Tianjin Jinke Binsheng Real Estate Co., Ltd. New establishment No material effect Hefei Jinke Baijun Real Estate Development New establishment No material effect Co., Ltd. Hefei Jinke Juncheng Real Estate Development New establishment No material effect Co., Ltd. Hefei Jinke Tianchen Real Estate Development New establishment No material effect Co., Ltd. Shihezi Jinke Zhongsheng Yi Equity New establishment No material effect Investment Limited Partnership Shihezi Jinke Zhongsheng Shisan Equity New establishment No material effect Investment Limited Partnership Shihezi Jinke Zhongsheng Shiwu Equity New establishment No material effect Investment Limited Partnership Shihezi Jinke Zhongsheng Shiliu Equity New establishment No material effect Investment Limited Partnership Shihezi Jinke Zhongsheng Shiqi Equity New establishment No material effect Investment Limited Partnership Shihezi Jinke Zhongsheng Shiba Equity New establishment No material effect Investment Limited Partnership Shihezi Jinke Zhongsheng Shijiu Equity New establishment No material effect Investment Limited Partnership Shihezi Jinke Zhongsheng Ershi Equity New establishment No material effect Investment Limited Partnership Shihezi Jinke Zhongsheng Qi Equity New establishment No material effect Investment Limited Partnership Chongqing Casin Jiangjing Real Estate Liquidation and No material effect Development Co., Ltd. deregistration

— 669 —

MANAGEMENT DISCUSSION AND ANALYSIS OF JINKE PROPERTY

APPENDIX III

VIII. Structured entities controlled by the Company

□ Applicable � Not Applicable

IX. Future prospects of the Company

1. Industry structure and trend

(1) Real estate business

In 2016, continued profound adjustment and rebalance of world economy, the US’s entry into rate-hike cycle and frequent black swan events posed great challenges to China’s economic growth. Driven by supply-side reform and steady growth policies, China’s economy grew slowly amid stability and made a good start for the “13th Five-Year Plan”. A GDP growth of 6.7% was recorded in the year. However, world economy remained sluggish, the thought of “reverse globalization” and protectionism trend are on the rise, the policy trend and spillover effect of major economies are too variable and unstable and uncertain factors are increasing obviously. As China is in an arduous development stage, many conspicuous contradictions and problems exist in its economic operation. In respect of monetary policies, such factors as interest rate hike by the Fed and expiry of the European Central Bank’s quantitative easing policy may set off a new round of worry about narrowing of global liquidity. As China will undergo transformation and upgrading in a long time in the future, supply-side structural reform has a long way to go and there are still obvious contradictions such as weak demand and excessive capacity. Tightened real estate policies in hot cities recently increased the pressure on economic downturn in 2017 and the base for stable economic operation was not secure. GDP growth will go down in 2017. However, no radical changes happened in China’s economic fundamentals and China’s economic growth was still higher than the global average.

The Central Economic Work Conference emphasized “insisting on maintaining stability in the general work guideline” this year. As the general tone has been set, the real estate industry will maintain steady and healthy development. On this basis, the Company’s judgment of the market this year is: the regulation tone of adopting different policies in different cities will remain unchanged, the overall market will see decreased volume and stable price and some cities will witness increase in both volume and price. The industry will stay at high levels in the medium and long term albeit fluctuation in the short term.

(2) Integrated community service

After the tide of industry merger and cooperation in 2016, the basic pattern of property service industry in China has basically taken shape and the top 100 property enterprises saw rapidly increasing market share and gradually evident edges in scale operation. In particular, the top 10 property enterprises logged an average management scale of over 100 million m[2] and were obviously superior over other counterparts in acquisition of market resources, policy support and cooperation opportunities. The merger and cooperation of property enterprises marked the formal start of the scale competition age of “big fish swallowing little fish and fast ones defeating slow ones”.

— 670 —

APPENDIX III

MANAGEMENT DISCUSSION AND ANALYSIS OF JINKE PROPERTY

In 2017, the property industry will witness increased investment merger scale and rapidly rising industry concentration. Meanwhile, with intervention of capital and real estate powers, property service industry will not only see competition among property enterprises. Various brands will speed up getting land, there are fewer and fewer properties that can be expanded in core cities, competition for quality projects will be brutal, and the boundaries of the power territory between brand property enterprises will be broken, presenting a situation of mutual integration.

(3) New energy business

Given constantly accelerated transformation of economic structure, deepened promotion of development concept of “innovation, coordination, green, opening and sharing” and increasingly urgent demand of the public for favorable environment, China rolled out a series of policies and measures to specify further development of new energy industry. The state’s Outline of the 13th Five-Year Plan for the National Economic and Social Development explicitly and repeatedly proposed to propel new energy industry development. The “13th Five-Year” Plan for Renewable Energy made it clear that non-fossil energy should account for 15% (including over 210 million KW from wind power installation) and 20% of the total primary energy consumption in 2020 and 2030, respectively.

Although China has successively issued a series of encouraging and stimulating policies, power rationing of different degrees still appeared in some areas, which greatly restricted industry development. According to the data issued by National Energy Administration, the curtailment rates in Gansu and Xinjiang with advantageous wind resources in 2016 were 43% and 38%, respectively. Serious wind curtailment and power rationing in the industry may not turn for the better in the near term.

2. Future development strategies

According to the national macroeconomic situation and industry development trends, the Company will quicken the pace of upgrading and transformation, propose to actively develop modern service industry based on real estate and service industires and provide users with “real estate + integrated community services”, in a bid to become a first-class “high quality life service provider” in China. The Company proposed five product ideas, that is, wonderful growth memories, convenient life, healthy body, neighborhood relationship and home space, so as to enable the users to obtain more comfortable living experience. The Company plans to realize three strategic changes in the future. First, at the level of product, shift the focus of attention from house (basic housing demand) to community (habitability), realizing a change of business cycle from 5 years to 65 years; second, at the level of users, shift from one-off consumption to continuous consumption, turning customers to residents and to users and members (fans); third, at the enterprise level, transform from a real estate developer into a community life service provider, realizing a change from asset-heavy investment to asset-light operation.

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MANAGEMENT DISCUSSION AND ANALYSIS OF JINKE PROPERTY

With respect to real estate, firstly, the Company will make greater efforts to innovate and enhance its housing real estate business. On the one hand, it will speed up product renewal based on users’ needs. Great efforts will be made to develop green housing projects and more new materials and environmental friendly materials and equipment will be used to provide higher residential satisfaction. The Company will also expand the application of intelligent equipment and terminals and strive to build an intelligent development system and big data platform. On the other hand, the Company will properly adjust its business layout and product structure, consolidate its existing strengths and ensure steady increase in business size and performance, so as to lay a solid foundation for upgrading and transformation. Secondly, the Company will realize “real estate + industry” linkage. On the one hand, giving full play to its expertise in real estate development, develop multi-theme and mixed-type projects in connection with the health industry, scientific and technological industry and culture & tourism industry. On the other hand, by means of community demand diversion, financial and policy support, industry chain linkage, etc., open up the B2C supply & demand channel, adhere to the concept of win-win cooperation, and actively develop industrial enterprises. With respect to industrial park management, strive to improve follow-up operation and service capacity and provide all-round supporting services for industrial parks. Thirdly, the Company will endeavor to become a “community business operation and service leader” in commercial real estate. Centered on community operation, the Company will try to improve community quality, create community convenience and lead community prosperity, so as to build a community business supporting system. With regard to regional strategic layout of real estate businesses, the Company will stick to the state’s urban agglomeration development strategy, focus on making layout in ten core cities such as Shanghai, Tianjin, Beijing, Nanjing, Hefei, Zhengzhou and Wuhan in compliance with the overall arrangement of “three circles and one belt”, and keep implementing the regional development strategy of “making stronger presence in Chongqing, expanding business in East China and North China, and ensuring stable business development in the Midwest”, so as to gradually adjust the Company’s business layout.

In integrated community service, the Company will upgrade traditional property management companies to “integrated community service providers”. On the one hand, the Company will effectively and rapidly expand the property management area and establish a systematic technology platform so as to greatly improve users’ big data analysis ability. On the other hand, the Company will enhance development of value-added services, introduce excellent partners to build an ecological community service circle, seek intensified and vertical development in such areas as community education, community health and community finance, in order to further serve users and improve earning power.

Regarding new energy, the Company will keep tracking the industry development changes, pay close attention to the objective problem of wind curtailment and power rationing, appropriately adjust new energy development strategies according to market conditions, industry status quo and the Company’s situation and prudently expand the new projects of new energy.

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MANAGEMENT DISCUSSION AND ANALYSIS OF JINKE PROPERTY

3. 2017 business plans

In 2017, the Company will strengthen its development confidence, maintain its strategic composure, promote customer-oriented organizational reform based on the general thought of “reform & innovation and cooperation & mutual benefit”, and start with the cultivation of systematic organization ability to improve its ability in various aspects and fully complete various operation targets. The Company’s main business plans are as follows:

• (1) In respect of real estate business, in 2017, the Company plans to log newly started GFA of about 5.5 million square meters, completed GFA of about 4.3 million square meters, and GFA under construction of about 12.75 million square meters by the end of 2017. The contracted sales amount is expected to reach about RMB43 billion in 2017 (including non-real estate sector).

• (2) In respect of project development, in 2017, the Company plans to increase land bank by a total capacity buildable area of about 6.5 million square meters, and invest not less than RMB35 billion in land projects. First, make innovations in land acquisition model; specifically, acquire land at the right time, diversify the channels of land acquisition, strategically promote urban village reconstruction and urban renewal projects, and innovate development model by trying asset-light operation. Second, make greater efforts to acquire enterprises with quality land resources. Third, enhance joint investment; specifically, promote strategic cooperation with the pricing side and land resources management authority to ensure low-cost acquisition of land, strengthen cooperation with brand real estate enterprises to increase competitiveness, and enter into joint development with third party operators to complement each other’s advantages.

• (3) In respect of funds, the Company will diversify financing channels, innovate financing modes, optimize capital structure, continuously reduce financing cost, and ensure the efficient use and safety of funds. First, step up direct financing from inter-bank markets keeping close track of capital market trends. Second, work on building a fund settlement centre to increase the efficiency of fund use. Third, keep innovating financing modes, actively promote asset securitization, and work on convertible bonds and other new businesses. Fourth, improve daily management and risk control of funds, increase the utilization efficiency of raised funds, and ensure fund security.

• (4) In respect of sales, the Company aims to achieve RMB40 billion of real estate sales. First, conduct adequate study and analysis on market environment, plan for a reasonable pace of launching real estate products, and make precise marketing strategies. Second, make full use of project value, promote project appreciation, and make all efforts to build a project value system. Third, speed up destocking in tier 3 and tier 4 cities. Fourth, highlight product concept design, understand full value of products and speed up product renewal. Fifth, promote sales terminal reform and enter into in-depth cooperation with large intermediary agencies.

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MANAGEMENT DISCUSSION AND ANALYSIS OF JINKE PROPERTY

• (5) In respect of products, create featured product system to realize product appreciation; specifically, implement the product concepts of “better growth, more convenient, better health, better living and better neighborhood”, develop mid-high end products in accordance with the Company’s future development strategies, study the demands of high net worth individuals and develop high-end products suiting their tastes and values, develop a standard product line and increase operation efficiency according to development strategies, stick to the bottom line of product quality, and promote refined decoration products in reply to customers’ demands.

• (6) Innovate operational modes and speed up community development. First, promote mechanism reform, quicken the pace of establishing a follow-up investment system, enhance the sense of mission and responsibility of the management team, and build a community of destiny. Second, following the development strategy of “big membership, big consumption”, strive to expand property service area by way of acquisition, cooperation and entrusted management. Third, enhance management of existing platforms, increase customers’ dependence on the Company’s services and build a big data platform of community services. Fourth, work closer with platform businesses to develop an integrated community service platform, and improve property management services in an all-round way to satisfy home owners’ needs. Fifth, speed up the implementation of deep vertical businesses such as community education and community health care. Six, keep maintaining good community management, provide more support for the incubation of new services, and quicken the pace of building a community service ecosystem.

• (7) Expand and consolidate the industry sector. Strive to become a domestic leading “integrated industry operator”, create benchmark projects in the industry, develop a three in one business model combining development, operation and investment, integrate the upstream and downstream sectors, build industry chain barriers, and form a more competitive industry ecosystem. Promote structural transformation of garden business, focus on developing municipal service and carry out reform of follow-up investment system of landscaping companies. For the hotel sector, attach equal importance to operation efficiency and brand effect and steadily promote coordinated development of multi-product lines.

• (8) Prudently promote new energy development. First, strengthen management on existing grid-connected projects, take different measures to solve the problem of wind power curtailment and rationing, and increase the utilization efficiency of power generation. Second, improve the management of projects under construction, ensure the quality and production safety of projects under construction, advance project construction in an orderly manner, and complete construction and grid-connected generation of the 200,000 KW Jingxia project. Third, carry out more demonstration research on newly invested projects, fully evaluate investment risks and invest in new projects in a prudent manner.

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APPENDIX III

4. Analysis on risks faced by the Company

(1) Policy risks

Real estate industry is highly related to the overall national economy and, as a typical resource-dependent industry, is sensitive to government macroeconomic policies. Since the third quarter last year, the government has sent the message that “houses are for self-living rather than speculation”. In response to this, various provincial and municipal governments have imposed restrictions on home purchase and extension of housing loans and introduced relevant financial policies, which will have a direct impact on real estate development enterprises and promote the sustainable, steady and sound development of real estate industry. If the Company cannot adapt to the changes in state policies, they may have a negative impact on the operation and development of the Company.

(2) Management risks

The Company has expanded quickly in recent years, which puts forward higher requirements for its management capacity, decision-making efficiency and risk prevention. If the Company cannot adapt itself to the business expansion in terms of management system, system building, retaining human resource and risk control, the Company will face some management risk.

(3) Operational risks

During its operation, rise in land prices and objective factors in project development, construction and sales may cut down on the profit of real estate projects. If the Company cannot properly solve these problems in a timely manner, they may have some impact on the Company’s business performance.

(4) Financial risks

The real estate development industry is a capital-intensive industry which involves massive investments in the processes of land acquisition and project development. In addition, development cycle of real estate projects is relatively long and the speed of capital turnover is relatively low. Investment in project development will increase with the expanding business scale of the Company. If fluctuations in the real estate market have a negative impact on the Company’s recovery of sales proceeds, the Company may face the risk of insufficient cash flow resulting from a low turnover rate. Meanwhile, any material change or adjustment in the national macroeconomic situation, credit policy and capital market may constrain the Company’s financing or raise the costs of financing, which will have a negative impact on the Company’s production and operation.

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APPENDIX III

Section 5 Important Events

• XV. Implementation of the Company’s equity incentive plan, employee stock ownership plan or other employee incentive measures

• Applicable □ Not Applicable

On 20 August 2015, the Company convened the 21st meeting of the 9th Board of Directors and deliberated and adopted the Restricted Share Incentive Plan (Draft) of Jinke Property Group Co., Ltd. and other proposals; on 19 November 2015, the Company convened the 24th meeting of the 9th Board of Directors and deliberated and adopted the Restricted Share Incentive Plan (Draft) of Jinke Property Group Co., Ltd. and summary thereof, Measures for Assessment and Management of Restricted Share Incentive Plan of Jinke Property Group Co., Ltd. and Resolution on Proposing the General Meeting to Authorize the Board of Directors to Take Charge of the Matters Related to The Restricted Share Incentive Plan and other relevant proposals, which were also deliberated and adopted at the 8th extraordinary general meeting 2015 held on 7 December 2015.

On 9 December 2015, the Company convened the 26th meeting of the 9th Board of Directors, deciding to take 9 December 2015 as the grant date of the incentive shares and to grant 196.44 million restricted shares to 157 qualified incentive targets. In the course of the Company’s Board of Directors granting the restricted shares, 10 incentive targets waived the right to subscribe for part of the respective restricted shares (totaling 5 million shares) for personal reasons. On 24 December 2015 the Company registered 191,440,000 restricted shares for 147 incentive targets with Shenzhen Branch of China Securities Depository and Clearing Corporation Limited.

During the reporting period, there were a total of nine unqualified incentive targets, whose restricted shares granted but not yet unlocked were repurchased and cancelled by the Company’s Board of Directors upon deliberation and approval.

On 8 December 2016, Proposal on First Grant of Restricted Shares That Can Be Unlocked in the First Unlocking Period under the Company’s Restricted Share Incentive Plan was deliberated and adopted at the 40th meeting of the 9th Board of Directors. Under the restricted share incentive plan, a total of 138 incentive targets were assessed in the first unlocking period and 44,260,000 restricted shares were available for unlocking application. Specifically, three incentive targets failed to meet the unlocking condition since their personal performance was not up to standard, and the 275,000 restricted shares held by them could not be unlocked; six incentive targets managed to pass personal performance assessment so 80% of the restricted shares held by them could be unlocked and the rest 20% (152,500 shares) could not be unlocked; all conditions for unlocking other first grant of restricted shares in the first unlocking period were met. Under this restricted share incentive plan, 43,832,500 shares were unlocked on 15 December 2016 (i.e. the day of circulation), involving 135 holders. Restricted shares that couldn’t be unlocked as detailed above will be repurchased and cancelled by the Company as per relevant provisions; on the same day, the Board of Directors deliberated and adopted the Proposal on Issue of Restricted Shares Reserved in the Restricted Share Incentive Plan to Incentive Targets ; conditions for granting the restricted shares reserved in the restricted share incentive plan had been met; 8 December 2016 was determined as the date of grant and 10,300,000 reserved restricted

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MANAGEMENT DISCUSSION AND ANALYSIS OF JINKE PROPERTY

APPENDIX III

shares were granted to 12 incentive targets at a price of RMB2.62/share. The restricted shares reserved in the restricted share incentive plan were registered with Shenzhen Branch of China Securities Depository and Clearing Corporation Limited on 21 December 2016 and were listed on 23 December 2016.

The aforesaid unlocking of restricted shares and grant of reserved restricted shares had been completed. For details, refer to relevant announcements published on CNINFO website (www.cninfo.com.cn).

XVII. Important contracts and performance thereof

2. Significant guarantee

� Applicable □ Not Applicable

(1) Guarantee

Unit: RMB’0,000

External guarantee of the Company and its subsidiaries (excluding guarantee to subsidiaries)

	Date of							**Whether **	the
	disclosure of		Date of actual					guarantee is
	announcements		occurrence (date	Actual			Whether the	**provided **	to a
Name of the	concerning		when the agreement	guarantee		Guarantee	guarantee is	connected party
guarantee target	guarantee limit	Guarantee limit	is signed)	amount	Guarantee type	period	fulfilled or not	or not
Nanning Sunac	2 December 2016	130,000	2 December 2016	58,800	Joint liability	3 years	No	Yes
Shicheng Property					guarantee
Co., Ltd. (Note)
Total limit of external	guarantee approved		130,000	Total amount of external					58,800
in the reporting period (A1)				guarantee actually provided in
				the reporting period (A2)
Total limit of external	guarantee approved		130,000	Total balance of external					58,800
as at the end of the	reporting period			guarantee actually provided as
(A3)				at the end of the reporting
				period (A4)
			**Guarantee between the Company **		and its subsidiaries
	Date of							**Whether **	the
	disclosure of		Date of actual					guarantee is
	announcements		occurrence (date	Actual			Whether the	**provided **	to a
Name of the	concerning		when the agreement	guarantee		Guarantee	guarantee is	connected party
guarantee target	guarantee limit	Guarantee limit	is signed)	amount	Guarantee type	period	fulfilled or not	or not
Wuxi Jiarun	16 May 2014	89,000	21 November 2014	53,400	Joint liability	2.5 years	No	No
					guarantee

— 677 —

APPENDIX III

MANAGEMENT DISCUSSION AND ANALYSIS OF JINKE PROPERTY

			**Guarantee between the Company **	**Guarantee between the Company **	and its subsidiaries
	Date of							Whether the
	disclosure of		Date of actual					guarantee is
	announcements		occurrence (date	Actual			Whether the	provided to a
Name of the	concerning		when the agreement	guarantee		Guarantee	guarantee is	connected party
guarantee target	guarantee limit	Guarantee limit	is signed)	amount	Guarantee type	period	fulfilled or not	or not
Suzhou Baijun	30 October 2014	60,000	20 November 2014	33,000	Joint liability	35 months	No	No
					guarantee
Zhanhong Landscaping	13 May 2014	20,000	8 April 2015	18,000	Joint liability	2 years	No	No
					guarantee
Jinke Zhuorui	2 July 2014	54,102	31 December 2014	46,102	Joint liability	3 years	No	No
					guarantee
Qingdao Dushun	2 July 2014	54,000	30 March 2015	34,000	Joint liability	2 years	No	No
					guarantee
Jinke Jinyu	2 July 2014	15,100	30 March 2015	13,100	Joint liability	3 years	No	No
					guarantee
Jinke Shangzun	20 April 2015	11,100	29 April 2015	11,100	Mortgage	2 years	No	No
Jinke Shangzun	20 April 2015	20,000	29 April 2015	19,950	Joint liability	2 years	No	No
					guarantee
Changsha Jinke	20 April 2015	60,000	25 May 2015	60,000	Joint liability	2 years	No	No
					guarantee
Jinke Yijia	20 April 2015	55,000	24 June 2015	25,000	Joint liability	2 years	No	No
					guarantee
Fuling Kerun	20 April 2015	35,600	29 June 2015	35,600	Joint liability	3 years	No	No
					guarantee
Jinke Kunji	20 April 2015	8,000	5 September 2015	2,000	Joint liability	3 years	No	No
					guarantee
Wujiaqu Jinke	20 April 2015	30,000	20 November 2015	3,985	Joint liability	3 years	No	No
					guarantee
Jinke Junkai	20 April 2015	40,000	14 January 2016	40,000	Joint liability	2 years	No	No
					guarantee
Jinke Hongjing	20 April 2015	70,000	14 January 2016	35,000	Joint liability	2 years	No	No
					guarantee
Jinke New Energy	20 April 2015	50,000	22 January 2016	50,000	Joint liability	12 years	No	No
					guarantee
Tianhao Menchuang	14 September	7,000	25 January 2016	7,000	Joint liability	1 year	No	No
	2015				guarantee
Yuanhao Decorations	14 September	5,000	25 January 2016	5,000	Joint liability	1 year	No	No
	2015				guarantee
Jinke Huiyi	20 April 2015	21,000	25 January 2016	18,000	Joint liability	3 years	No	No
					guarantee
Qingke Trading	20 April 2015	40,000	21 January 2016	40,000	Joint liability	5 years	No	No
					guarantee
Jinke Zhuchen	20 April 2015	65,000	28 January 2016	32,000	Joint liability	2 years	No	No
					guarantee
Jinke Tuhong	20 April 2015	50,000	15 February 2016	48,000	Joint liability	2 years	No	No
					guarantee

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APPENDIX III

MANAGEMENT DISCUSSION AND ANALYSIS OF JINKE PROPERTY

			**Guarantee between the Company **	**Guarantee between the Company **	and its subsidiaries
	Date of							Whether the
	disclosure of		Date of actual					guarantee is
	announcements		occurrence (date	Actual			Whether the	provided to a
Name of the	concerning		when the agreement	guarantee		Guarantee	guarantee is	connected party
guarantee target	guarantee limit	Guarantee limit	is signed)	amount	Guarantee type	period	fulfilled or not	or not
Jinke Zhongxi	20 April 2015	100,000	29 February 2016	80,000	Joint liability	3 years	No	No
					guarantee
Jinke Junyao	20 April 2015	12,500	1 March 2016	12,500	Joint liability	3 years	No	No
					guarantee
Jinke Guojun	20 April 2015	13,800	30 March 2016	13,800	Mortgage	3 years	No	No
Jinke Junkai	20 April 2015	110,000	18 March 2016	50,000	Joint liability	5 years	No	No
					guarantee
Jinke Huimao	20 April 2015	35,000	28 March 2016	35,000	Joint liability	3 years	No	No
					guarantee
Zhanhong Landscaping	14 September	6,000	8 April 2016	6,000	Joint liability	10 months	No	No
	2015				guarantee
Tianhao Menchuang	14 September	10,000	8 April 2016	10,000	Joint liability	10 months	No	No
	2015				guarantee
Suzhou Dongjun	18 April 2016	24,000	22 April 2016	24,000	Joint liability	3 years	No	No
					guarantee
Chongqing Jinke	18 April 2016	50,000	26 May 2016	50,000	Joint liability	3 years	No	No
					guarantee
Jinke Xinhaihui	18 April 2016	45,000	27 May 2016	45,000	Joint liability	2 years	No	No
					guarantee
Chongqing Jinke	18 April 2016	4,400	31 May 2016	4,400	Joint liability	11 months	No	No
					guarantee
Zhengzhou Xinyinke	18 April 2016	165,000	30 June 2016	60,000	Joint liability	3 years	No	No
					guarantee
Hami Huaran	18 April 2016	50,000	7 July 2016	23,207	Joint liability	14 years	No	No
					guarantee
Wuxi Jiarun	18 April 2016	20,000	9 July 2016	10,000	Joint liability	2 years	No	No
					guarantee
Hunan Yida	18 April 2016	40,000	25 August 2016	40,000	Joint liability	2 years	No	No
					guarantee
Suining Dongjun	18 April 2016	35,000	25 July 2016	10,000	Joint liability	3 years	No	No
					guarantee
Qingdao Yuhua	18 April 2016	50,000	29 July 2016	50,000	Joint liability	2 years	No	No
					guarantee
Huaran Oriental	18 April 2016	60,000	23 August 2016	57,000	Joint liability	10 years	No	No
					guarantee
Chengdu Zhanhong	18 April 2016	90,000	15 November 2016	30,000	Joint liability	3 years	No	No
					guarantee
Beijing Zhanhao	18 April 2016	98,000	23 September 2016	57,000	Joint liability	3 years	No	No
					guarantee
Wuxi Jinke	18 April 2016	72,000	27 October 2016	72,000	Joint liability	3 years	No	No
					guarantee

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MANAGEMENT DISCUSSION AND ANALYSIS OF JINKE PROPERTY

			**Guarantee between the Company **	**Guarantee between the Company **	and its subsidiaries
	Date of							Whether the
	disclosure of		Date of actual					guarantee is
	announcements		occurrence (date	Actual			Whether the	provided to a
Name of the	concerning		when the agreement	guarantee		Guarantee	guarantee is	connected party
guarantee target	guarantee limit	Guarantee limit	is signed)	amount	Guarantee type	period	fulfilled or not	or not
Qingdao Yuhua	18 April 2016	108,000	22 November 2016	3,000	Joint liability	3 years	No	No
					guarantee
Shaanxi Jinrunda	18 April 2016	38,000	24 November 2016	38,000	Joint liability	2 years	No	No
					guarantee
Chongqing Changjin	18 April 2016	40,000	28 November 2016	40,000	Joint liability	0	No	No
					guarantee
Zhengzhou Xinyinke	18 April 2016	118,000	27 December 2016	118,000	Joint liability	3 years	No	No
					guarantee
Jinke Hongjing	18 April 2016	60,000	9 August 2016	60,000	Joint liability	3 years	No	No
					guarantee
Total limit of guarantee to subsidiaries			1,167,400	Total amount of guarantee					1,273,907
approved in the reporting period (B1)				actually provided to
				subsidiaries	in the reporting
				period (B2)
Total limit of guarantee to subsidiaries			2,314,602	Total balance of guarantee					1,629,144
approved as at the end of the reporting				actually provided to
period (B3)				subsidiaries	at the end of the
				reporting period (B4)

		**Guarantee among subsidiaries (including subsidiaries’ guarantee to **	**Guarantee among subsidiaries (including subsidiaries’ guarantee to **	**Guarantee among subsidiaries (including subsidiaries’ guarantee to **	the Company)
	Date of						**Whether **	the
	disclosure of		Date of actual				guarantee is
	announcements		occurrence (date	Actual		Whether the	**provided **	to a
Name of the	concerning		when the agreement	guarantee	Guarantee	guarantee is	connected party
guarantee target	guarantee limit	Guarantee limit	is signed)	amount Guarantee type	period	fulfilled or not	or not
Jinke Co., Ltd.	25 December	140,000	16 February 2015	120,000 Pledge	0	No	No
	2014
Jinke Zhengtao	20 April 2015	35,000	27 April 2015	27,300 Joint liability	3 years	No	No
				guarantee;
				mortgage
Jinke Co., Ltd.	20 April 2015	36,000	12 December 2015	32,000 Pledge	7 years	No	No
Jinke Huiyi	20 April 2015	3,000	1 April 2016	3,000 Mortgage	3 years	No	No
Total limit of guarantee to subsidiaries			0	Total amount of guarantee				3,000
approved in the reporting period (C1)				actually provided to
				subsidiaries in the reporting
				period (C2)
Total limit of guarantee to subsidiaries			214,000	Total balance of guarantee				182,300
approved as at the	end of the reporting			actually provided to
period (C3)				subsidiaries as at the end of the
				reporting period (C4)

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APPENDIX III

MANAGEMENT DISCUSSION AND ANALYSIS OF JINKE PROPERTY

		Guarantee among subsidiaries (including subsidiaries’ guarantee to the Company)	Guarantee among subsidiaries (including subsidiaries’ guarantee to the Company)	Guarantee among subsidiaries (including subsidiaries’ guarantee to the Company)	Guarantee among subsidiaries (including subsidiaries’ guarantee to the Company)
Date of							Whether the
disclosure of			Date of actual				guarantee is
announcements			occurrence (date	Actual		Whether the	provided to a
Name of the concerning			when the agreement	guarantee	Guarantee	guarantee is	connected party
guarantee target guarantee limit	Guarantee limit		is signed)	amount Guarantee type	period	fulfilled or not	or not
		Total guarantee amount of the Company (namely, the sum of the top			three)
Total guarantee limit approved in the			1,297,400	Total amount of guarantee				1,335,707
reporting period (A1+B1+C1)				actually provided in the
				reporting period (A2+B2+C2)
Total guarantee limit approved as at the			2,658,602	Total balance of guarantee actually provided as at				1,870,244
end of the reporting period (A3+B3+C3)				the end of the reporting period	(A4+B4+C4)
Percentage of total amount of guarantee actually provided (namely, A4+B4+C4) in								93.48%
the net assets of the Company
Including:
Amount of guarantee provided to shareholders, effective controllers and their									0
connected parties (D)
Amount of debt guarantee directly or indirectly provided to the			guarantee targets					1,870,244
whose asset-liability ratio exceeds 70% (E)
Amount of the surplus part of the total guarantee amount exceeding 50% of net									0
assets (F)
Total amount of the abovementioned three	guarantees (D+E+F)							1,870,244

Note: Nanning Sunac Shicheng Property Co., Ltd. is an investee company of which the Company holds 49% shares.

Description of compound guarantee

None

(2) Illegal external guarantees

□ Applicable � Not Applicable

The Company had no illegal external guarantee in the reporting period.

XIX. Other important events

� Applicable □ Not Applicable

1. Non-public issuance of shares

On 20 August 2015, the Company convened the 21st meeting of the 9th Board of Directors and deliberated and approved the Scheme on 2015 Non-public Issuance of Shares and other relevant

— 681 —

MANAGEMENT DISCUSSION AND ANALYSIS OF JINKE PROPERTY

APPENDIX III

matters. The Company planned to issue not more than 773,195,876 shares (inclusive) in non-public mode at a price of not lower than RMB5.82/share, with a view to raising a maximum of RMB4.5 billion funds for development and construction of the Company’s projects and repayment of borrowings from financial institutions.

The Company convened the 28th meeting of the 9th Board of Directors and the 2nd extraordinary general meeting 2016 respectively on 4 February and 22 February 2016 and deliberated and approved the adjustments to the “pricing base date, issuance price and pricing principle” and “number of shares to be issued” in the scheme on non-public issuance of shares, and extended the “validity period of resolution” and “validity period of authorization” concerning the non-public issuance of shares. After adjustment, the pricing base date concerning the non-public issuance of shares was 5 February 2016, the issuance price was not lower than RMB3.68/share, and the number of shares to be issued was not more than 1,222,826,086. During the reporting period, the Company implemented the 2015 Equity Distribution Scheme, in which the issuance price was adjusted from not lower than RMB3.68/share to not lower than RMB3.63/share and the number of shares to be issued was adjusted from not more than 1,222,826,086 to not more than 1,239,669,421.

On 21 July 2016, the Company received the reply concerning approval of non-public issuance of shares by the Company from China Securities Regulatory Commission.

In September 2016, the Company completed this non-public issuance of shares. 1,020,408,163 shares were issued at a price of RMB4.41/share. Three qualified investors subscribed for these shares and a total of RMB4,499,999,998.83 was raised. After deducting the issue expenses, the net raised funds amounted to RMB4,442,087,958.01. Pan-China Certified Public Accountants (special general partnership) verified the raised funds and issued relevant report after the funds were in place. The issued shares became tradable on 3 November 2017.

(For details, refer to the relevant announcements published by the Company on 5 February, 23 February, 21 June, 22 July, 22 September and 2 November 2016 on the media (such as www.cninfo.com.cn and China Securities Journal ) designated by the Company for information disclosure.)

2. Non-public issuance of corporate bonds

• (1) The 5th extraordinary general meeting 2015 of the Company deliberated and approved the proposals relating to non-public issuance of corporate bonds. The Company planned to issue corporate bonds of not more than RMB3.8 billion (inclusive) to qualified investors in a non-public mode. The bonds were issued in tranches. RMB1.25 billion bonds were issued in the first tranche in 2015.

During this reporting period, RMB2.55 billion bonds were issued in the second tranche with two varieties: the first variety amounted to RMB1.25 billion, with a term of 3 years and a coupon rate of 6.8%; and the second variety amounted to RMB1.3 billion, with a term of 3 years and a coupon rate of 6.0%.

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APPENDIX III

(For details, refer to the relevant announcements published by the Company on 18 March 2016 on the media (such as www.cninfo.com.cn and C hina Securities Journal ) designated by the Company for information disclosure.)

• (2) Upon deliberation and approval at the 1st extraordinary general meeting 2016, the Company planned to issue corporate bonds of not more than RMB10 billion (inclusive) with a term of not more than 7 years (inclusive) in a non-public mode. The bond rate will be determined by the Company and the lead underwriter upon negotiation according to market inquiry results.

In April 2016, the Company received a No Objection Letter for Compliance with Transfer Conditions of Shenzhen Stock Exchange Regarding Non-public Issuance of Bonds by Jinke Property Group Co., Ltd. in 2016 from Shenzhen Stock Exchange.

The bonds were issued in tranches. RMB5.4 billion bonds were issued in the first tranche with three varieties: the first variety amounted to RMB520 million, with a term of 3 years and a coupon rate of 6.00%; the second variety amounted to RMB4.4 billion, with a term of 3 years and a coupon rate of 6.70%, and the third variety amounted to RMB480 million, with a term of 5 years and a coupon rate of 7.20%.

RMB4.6 billion bonds were issued in the second tranche with two varieties: the first variety amounted to RMB1 billion, with a term of 3 years and a coupon rate of 5.17%; and the second variety amounted to RMB3.6 billion, with a term of 3 years and a coupon rate of 6.40%.

(For details, refer to the relevant announcements published by the Company on 5 January, 21 January, 22 April, 6 May and 28 July 2016 on the media (such as www.cninfo.com.cn and China Securities Journal ) designated by the Company for information disclosure.)

3. Medium-term notes

Upon deliberation and approval by the 8th meeting of the 9th Board of Directors of the Company and the 9th extraordinary general meeting 2014, the Company applied for registration and issuance of medium-term notes of not more than RMB3.9 billion (inclusive) in the national interbank bond market.

On 13 October 2015, the Company received a notice from the National Association of Financial Market Institutional Investors, which agreed to accept the Company’s registration of medium-term notes with registered amount of RMB3.2 billion. The first tranche of RMB2.1 billion medium-term notes were issued by the Company in 2015.

On 21 March 2016, the Company issued the remaining RMB1.1 billion medium-term notes with a term of 3 years and a coupon rate of 5.3%. The funds raised were all in place on 22 March 2016.

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(For details, refer to the relevant announcements published by the Company on 23 March 2016 on the media (such as www.cninfo.com.cn and C hina Securities Journal ) designated by the Company for information disclosure.)

4. Special asset-backed plan

On 5 July 2016, the Company convened the 33rd meeting of the 9th Board of Directors, which deliberated and approved the home mortgage loan backed special plan. Moreover, it made financing by issuing asset-backed securities via the special plan.

On 4 November 2016, the Company received a no objection letter from Shanghai Stock Exchange regarding the listing transfer of “CMS Super Value - Jinke Property Accounts Receivable (Phase I) Asset-backed Plan”. On 2 December 2016, the Company raised RMB1.8 billion through the said plan, of which the priority securities amounted to RMB1.7 billion; with coupon rate of 4.70% and earnings cashed semiannually, such securities were subscribed by qualified investors; the subordinated securities amounted to RMB100 million, which were fully subscribed by Chongqing Jinke Liangjiang Hotel Co., Ltd.; for such securities, the principal and earnings were not distributed for the duration of the special plan. The special plan has a term of 3 years, and the funds raised were all in place on 2 December 2016.

(For details, refer to the relevant announcements published by the Company on 6 July and 6 December 2016 on the media (such as www.cninfo.com.cn and China Securities Journal ) designated by the Company for information disclosure.) ）

5. Entrusted loans without a fixed term

• (1) The 10th extraordinary general meeting 2014 of the Company deliberated and approved the proposal on the Company’s acceptance of entrusted loan without a fixed term issued by Minsheng Royal Asset Management Co., Ltd. (hereinafter referred to as “Minsheng Royal”). The loan amounted to RMB1.4 billion without a fixed term. The interest rate of the entrusted loan is 11.5% of the loan principal for the first year, 12% for the second year, 15% for the third year, and 18% for the fourth year and beyond. As at the end of the reporting period, the balance of the entrusted loan was RMB1.2 billion and the exercise rate was 8.8%/year.

(For details, refer to the relevant announcements published by the Company on 10 December, 26 December 2014 and 20 August 2016 on the media (such as www.cninfo.com.cn and China Securities Journal ) designated by the Company for information disclosure.)

• (2) The 4th extraordinary general meeting 2015 of the Company deliberated and approved the proposal on the Company’s acceptance of entrusted loan without a fixed term. The loan amounted to RMB1.4 billion without a fixed term, which would be used for the subsidiaries’ project construction. The interest rate of the entrusted loan is 11.9% of the loan principal for the first and second years, 15% for the third year and 18% for the fourth year and beyond. Due to market environment and other factors, this loan was not executed.

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MANAGEMENT DISCUSSION AND ANALYSIS OF JINKE PROPERTY

(For details, refer to the relevant announcements published by the Company on 10 June and 20 June 2015 on the media (such as www.cninfo.com.cn and China Securities Journal ) designated by the Company for information disclosure.)

• (3) The 3rd extraordinary general meeting 2016 of the Company deliberated and approved the proposal on the Company’s acceptance of entrusted loan without a fixed term. The loan amounted to RMB1.7 billion without a fixed term, which would be used for the subsidiaries’ project construction and repayment of debts. The interest rate of the entrusted loan is 6% of the loan principal for the first three years, 12% for the fourth year, 15% for the fifth year and 18% for the sixth year and beyond, capped at 18%. This matter is now in process and the current exercise rate is 6%/year.

(For details, refer to the relevant announcements published by the Company on 2 September and 20 September 2016 on the media (such as www.cninfo.com.cn and China Securities Journal ) designated by the Company for information disclosure.)

• (4) The 5th extraordinary general meeting 2016 of the Company deliberated and approved the proposal on the wholly-owned subsidiary’s acceptance of entrusted loan without a fixed term. Jinke Changjin, the Company’s wholly-owned subsidiary accepted the RMB700 million loan without a fixed term for project construction and repayment of debts. The interest rate of the entrusted loan is 6% of the loan principal for the first year, 9% for the second year, 13% for the third year and 13% for the fourth year and beyond, capped at 13%. As at the end of the reporting period, the balance of the entrusted loan was RMB400 million and the current exercise rate is 6%/year.

(For details, refer to the relevant announcements published by the Company on 19 November and 2 December 2016 on the media (such as www.cninfo.com.cn and China Securities Journal ) designated by the Company for information disclosure.)

1. Matters relating to issue of debt financing instruments

On 23 December 2016, the Company convened the 35th meeting of the 9th Board of Directors, which deliberated and approved relevant proposals on the Company’s application for issuance of debt financing instruments to the National Association of Financial Market Institutional Investors. The Company intended to apply to the National Association of Financial Market Institutional Investors for issuing debt financing instruments of not more than RMB16 billion, including but not limited to ultra-short-term financing bonds, short-term financing bonds, medium-term notes, medium-term notes with long-term rights and other types of debt financing instruments recognized by the National Association of Financial Market Institutional Investors. The Company would, in accordance with the actual capital requirements and the issuance window, issue the bonds by one time or for many times through public and non-public offering. The term of the registration and issuance of debt financing instruments should not exceed 7 years (except for medium-term notes with long-term rights), and the specific interest rate would be determined by market conditions. At present, the National Association of Financial Market Institutional Investors has formally accepted the application materials and matters concerning the issue of debt financing instruments are under way.

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(For details, refer to the relevant announcements published by the Company on 24 December 2016 on the media (such as www.cninfo.com.cn and C hina Securities Journal ) designated by the Company for information disclosure.)

1. Main repayments and increased nonbank financing in the reporting period

2. (1) In January 2014, the Company and Yinhua Capital signed an entrusted loan agreement, in which the Company took a loan of RMB999.26 million issued from Yinhua Capital through Bank of China for a term of two years and at a consolidated cost of 11.3% per year. As at the end of the reporting period, the Company has paid off the principal and interest of the said entrusted loan.

3. (2) In February 2015, the Company’s holding subsidiary Jinan Jinke Xicheng and Jinan Jinke Xiqu Investment Consultation Partnership (limited partnership) signed an Entrusted Loan Agreement , in which Jinan Jinke Xicheng took a loan of RMB300 million issued from Jinan Jinke Xiqu Investment Consultation Partnership through China CITIC Bank for a term of one year and at a consolidated cost of 10% per year. As at the end of the reporting period, the Company has paid off the principal and interest of the said entrusted loan.

4. (3) In March 2014, the Company and Avic Trust signed a trust agreement, in which RMB500 million of debt financing was agreed on for a term of two years and at a consolidated cost of 10.8% per year. As at the end of the reporting period, the Company has paid off the principal and interest of the said trust fund.

5. (4) In April 2014, the Company’s holding subsidiary Jinke Zhongjun and Huarong Tianze signed a trust agreement, in which RMB490 million of debt financing was agreed on for a term of two years and at a consolidated cost of 11% per year. As at the end of the reporting period, the Company has paid off the principal and interest of the said trust fund.

6. (5) In April 2014, the Company and Chongqing Water Group signed an entrusted loan agreement, in which the Company took a loan of RMB400 million issued from Chongqing Water Group through Chongqing Branch of Sino-German Bausparkasse for a term of two years and at a consolidated cost of 10.99% per year. As at the end of the reporting period, the Company has paid off the principal and interest of the said entrusted loan.

7. (6) In April 2014, the Company and China Fortune International Trust signed a trust agreement, in which RMB300 million of debt financing was agreed on for a term of two years and at a consolidated cost of 10.94% per year. As at the end of the reporting period, the Company has paid off the principal and interest of the said trust fund.

8. (7) In April 2014, the Company and Founder Bea Trust signed a trust agreement, in which RMB500 million of debt financing was agreed on for a term of two years and at a consolidated cost of 11.5% per year. As at the end of the reporting period, the Company has paid off the principal and interest of the said trust fund.

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• (8) In May 2014, the Company and Jic Trust signed a trust agreement, in which RMB108 million of debt financing was agreed on for a term of two years and at a consolidated cost of 11.5% per year. As at the end of the reporting period, the Company has paid off the principal and interest of the said trust fund.

• (9) In May 2014, the Company and China Orient Asset Chongqing Office signed an entrusted loan agreement, in which the Company took a loan of RMB500 million issued from China Orient Asset Chongqing Office through China CITIC Bank for a term of two years and at a consolidated cost of 11.5% per year. As at the end of the reporting period, the Company has paid off the principal and interest of the said entrusted loan.

• (10) In June 2014, the Company’s wholly-owned subsidiary Changsha Jinke and New China Trust signed a trust agreement, in which RMB300 million of debt financing was agreed on for a term of two years and at a consolidated cost of 10.5% per year. As at the end of the reporting period, the Company has paid off the principal and interest of the said trust fund.

• (11) In June 2015, the Company’s holding subsidiary Chengdu Jinke Junfeng and Minsheng Royal Asset Management Co., Ltd. signed an entrusted loan agreement, in which Chengdu Jinke Junfeng took a loan of RMB230 million issued from Minsheng Royal Asset Management Co., Ltd. through Bank of Shanghai for a term of two years and at a consolidated cost of 10.8% per year. As at the end of the reporting period, the Company has paid off the principal and interest of the said entrusted loan.

• (12) In August 2014, the Company’s holding subsidiary Jinke Hexu and China Orient Asset signed an entrusted loan agreement, in which Jinke Hexu took a loan of RMB400 million issued from China Orient Asset through Chongqing Rural Commercial Bank for a term of two years and at a consolidated cost of 11.5% per year. As at the end of the reporting period, the Company has paid off the principal and interest of the said entrusted loan.

• (13) In September 2015, the Company and Shenzhen Pingan Dahua Huitong Wealth Management Co., Ltd. signed an entrusted loan agreement, in which the Company took a loan of RMB500 million issued from Shenzhen Pingan Dahua Huitong Wealth Management Co., Ltd. through Bank of Jiangsu, Shenzhen Branch for a term of one year and at a consolidated cost of 8.5% per year. As at the end of the reporting period, the Company has paid off the principal and interest of the said entrusted loan.

• (14) In July 2014, the Company’s subsidiary Yunnan Jinke Xinhaihui and Shenzhen Pingan Dahua Huitong Wealth Management Co., Ltd. signed an entrusted loan agreement, in which Yunnan Jinke Xinhaihui took a loan of RMB731.3 million issued from Shenzhen Pingan Dahua Huitong Wealth Management Co., Ltd. through the Business Department of Chongqing Rural Commercial Bank Co., Ltd. for a term of two years and at a consolidated cost of 12.5% per year. As at the end of the reporting period, the Company has paid off the principal and interest of the said entrusted loan.

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• (15) In July 2015, the Company’s subsidiary Qingdao Yuhua and CITIC Trust Co., Ltd. signed an entrusted loan agreement, in which Qingdao Yuhua took a loan of RMB500 million issued from CITIC Trust Co., Ltd. through CITIC Bank Qingdao Hangzhou Road Branch for a term of three years and at a consolidated cost of 8.5% per year. As at the end of the reporting period, the Company has paid off the principal and interest of the said entrusted loan.

• (16) In July 2015, the Company’s subsidiary Qingdao Yuhua and CITIC Trust Co., Ltd. signed an entrusted loan agreement, in which Qingdao Yuhua took a loan of RMB500 million issued from CITIC Trust Co., Ltd. through CITIC Bank Qingdao Hangzhou Road Branch for a term of four years and at a consolidated cost of 7.95% per year. As at the end of the reporting period, the Company has paid off the principal and interest of the said entrusted loan.

• (17) In September 2015, the Company’s subsidiary Hunan Liangxing and Bank Of Communications International Trust Co., Ltd. signed an entrusted loan agreement, in which Hunan Liangxing took a loan of RMB500 million issued from Bank Of Communications International Trust Co., Ltd. for a term of two years and at a consolidated cost of 9.5% per year. As at the end of the reporting period, the Company has paid off the principal and interest of the said entrusted loan.

• (18) In July 2015, the Company’s subsidiary Shaanxi Haoyuefu and China Huarong Asset Management Co., Ltd. Shaanxi Branch signed an entrusted loan agreement, in which Shaanxi Haoyuefu took a loan of RMB200 million from China Huarong Asset Management Co., Ltd. Shaanxi Branch for a term of one year and at a consolidated cost of 11% per year. As at the end of the reporting period, the Company has paid off the principal and interest of the said entrusted loan.

• (19) In July 2015, the Company’s subsidiary Shaanxi Junrunda and China Huarong Asset Management Co., Ltd. Shaanxi Branch signed an entrusted loan agreement, in which Shaanxi Haoyuefu took a loan of RMB200 million from China Huarong Asset Management Co., Ltd. Shaanxi Branch for a term of one year and at a consolidated cost of 11% per year. As at the end of the reporting period, the Company has paid off the principal and interest of the said entrusted loan.

• (20) In July 2015, the Company’s subsidiary Jinan Jinke and Sdic Trust signed an entrusted loan agreement, in which Jinan Jinke took a loan of RMB400 million from Sdic Trust for a term of two years and at a consolidated cost of 9.5% per year. As at the end of the reporting period, the Company has paid off the principal and interest of the said entrusted loan.

• (21) In July 2014, the Company’s subsidiary Chengdu Jianglong and the Business Department of Ping An Bank Chengdu Branch signed an entrusted loan agreement, in which Chengdu Jianglong took a loan of RMB950 million from the Business Department of Ping An Bank Chengdu Branch through Everbright Xinglong Trust Co., Ltd. for a term of two years and at a consolidated cost of 8.61% per year. As at the end of the reporting period, the Company has paid off the principal and interest of the said entrusted loan.

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• (22) In February 2015, the Company’s subsidiary Hexu Real Estate and China Orient Asset signed an entrusted loan agreement, in which Hexu Real Estate took a loan of RMB400 million issued from China Orient Asset through the Business Department of Chongqing Rural Commercial Bank Co., Ltd. for a term of two years and at a consolidated cost of 11.5% per year. As at the end of the reporting period, the Company has paid off the principal and interest of the said entrusted loan.

• (23) The Company and its wholly-owned subsidiary Chongqing Jinke Industrial Group Hongjing Real Estate Development Co., Ltd. signed the Trust Beneficiary Right Investment Agreement , Trust Contract, Repayment Agreement and other agreements with CITIC Trust Co., Ltd. in January 2016. The Company entrusted the CITIC Trust to set up a trust scheme of flowing creditor’s rights for the RMB700 million creditor’s rights lawfully enjoyed by the Company in Jinke Hongjing, and transferred the scheme to the investor Chongqing Branch of China CITIC Bank. The loan under the main debt has a term of 2 years and a consolidated cost of 8% per year. As at the end of the reporting period, the said loan was still valid.

• (24) The Company’s wholly-owned subsidiaries Chongqing Jinke Real Estate Development Co., Ltd. and Chongqing Jinke Junkai Real Estate Development Co., Ltd. signed the Trust Beneficiary Right Investment Agreement , Trust Contract, Repayment Agreement and other agreements with CITIC Trust Co., Ltd. in January 2016. Chongqing Jinke Real Estate Development Co., Ltd. entrusted the CITIC Trust to set up a trust scheme of flowing creditor’s rights for the RMB400 million creditor’s rights lawfully enjoyed by Chongqing Jinke in Junkai, and transferred the scheme to the investor Chongqing Branch of China CITIC Bank. The loan under the main debt has a term of 2 years and a consolidated cost of 8% per year. As at the end of the reporting period, the said loan was still valid.

• (25) The Company and its wholly-owned subsidiary Chongqing Jinke Zhuchen Real Estate Co., Ltd. signed the Cooperation Framework Agreement with Shenzhen Pingan Dahua Huitong Wealth Management Co., Ltd. in February 2016. Shenzhen Pingan Dahua Huitong Wealth Management Co., Ltd. issued no more than RMB650 million entrusted loans through its asset management plan and Chongqing Rural Commercial Bank for a term of two years and at a consolidated cost of 7.8% per year. As at the end of the reporting period, RMB320 million loan was issued and the said entrusted loan was still valid.

• (26) In February 2016, the Company’s wholly-owned subsidiary Chongqing Bishan Jinke Zhongxi Real Estate Co., Ltd. accepted the entrusted loan of RMB800 million provided by CITIC-CP Asset Management Company through Beijing Branch of China Bohai Bank for a term of three years and at a consolidated cost of 7% per year. As at the end of the reporting period, the said entrusted loan was still valid.

• (27) In January 2016, the Company’s wholly-owned subsidiary Chongqing Qingke Trading Co., Ltd. accepted the entrusted loan of RMB400 million provided by Southwest Securities Co., Ltd. through Jiangbei Branch of Chongqing Three Gorges Bank for a term of five years and at a consolidated cost of 6.1% per year. As at the end of the reporting period, the said entrusted loan was still valid.

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• (28) In May 2016, the Company’s holding subsidiary Yunnan Jinke Xinhaihui and Minsheng Royal Asset Management Co., Ltd. signed a trust agreement, in which RMB450 million of debt financing was agreed on for a term of two years and at a consolidated cost of 7.5% per year. As at the end of the reporting period, the said trust agreement was still valid.

• (29) In May 2016, the Company’s wholly-owned subsidiary Chongqing Jinke Real Estate Development Co., Ltd. and CITIC-CP Asset Management Company signed an entrusted loan agreement, in which Chongqing Jinke Real Estate Development Co., Ltd. took a loan of RMB500 million issued from CITIC-CP Asset Management Company through China Bohai Bank for a term of three years and at a consolidated cost of 7% per year. As at the end of the reporting period, the said entrusted loan was still valid.

• (30) In June 2016, the Company’s wholly-owned subsidiary Chongqing Jinke Real Estate Development Co., Ltd. and Everbright Financial Holding (Shanghai) Asset Management Co., Ltd. signed an entrusted loan agreement, in which Chongqing Jinke Real Estate Development Co., Ltd. took a loan of RMB44 million issued from Everbright Financial Holding (Shanghai) Asset Management Co., Ltd. through Chongqing Rural Commercial Bank for a term of one year and at a consolidated cost of 7% per year. As at the end of the reporting period, the said entrusted loan was still valid.

• (31) In December 2016, the Company and Great Wall Securities Limited signed an entrusted loan agreement, in which the Company took a loan of RMB50 million issued from Great Wall Securities Limited through Chongqing Rural Commercial Bank for a term of two years and at a consolidated cost of 8% per year. As at the end of the reporting period, the said entrusted loan was still valid.

• (32) In December 2016, the Company took a loan of RMB300 million from Ping An Trust Co., Ltd. for a term of two years and at a consolidated cost of 6.6% per year. As at the end of the reporting period, the said entrusted loan was still valid.

• (33) In August 2016, the Company’s holding subsidiary Hunan Jinke Yida Industrial Development Co., Ltd. took a loan of RMB400 million from Western Trust Co., Ltd. for a term of one year and at a consolidated cost of 7.2% per year. As at the end of the reporting period, the said entrusted loan was still valid.

• (34) In June 2016, the Company’s holding subsidiary Zhengzhou Xinyinke Real Estate Co., Ltd. and China Securities Co., Ltd. signed an entrusted loan agreement, in which Zhengzhou Xinyinke Real Estate Co., Ltd. took a loan of RMB600 million issued from China Securities Co., Ltd. through China Bohai Bank for a term of one year and at a consolidated cost of 5.7% per year. As at the end of the reporting period, the said entrusted loan was still valid.

Other financing projects of the Company all went well; please refer to relevant notes to this Financial Report of the Company for details.

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8. About investment in Wujiang Jinke

The Company’s wholly-owned subsidiary Jiangyin Jinke and Jiangsu Hengyuan Real Estate Development Co., Ltd. (hereinafter referred to as “Jiangsu Hengyuan”) signed the Cooperation Development Agreement on 7 January 2011. The two parties jointly established Wujiang Jinke Yangzi Real Estate Development Co., Ltd. (hereinafter referred to as Wujiang Jinke) to develop the “Bridge Waterfront” project. In particular, each held 50% stake in Wujiang Jinke and Jiangyin Jinke was responsible for the operation and management of Wujiang Jinke.

On 30 October 2013, Jiangyin Jinke and Jiangsu Hengyuan signed the Supplementary Agreement to the Cooperation Development Agreement , which specified that Jiangsu Hengyuan, instead of Wujiang Jinke, would be responsible for the operation and management. Since then, Wujiang Jinke was no longer incorporated in the scope of the consolidated financial statements of the Company and changed to an associated enterprise of the Company. According to the aforesaid supplementary agreement, Jiangsu Hengyuan should ensure that Wujiang Jinke would pay a lump sum off the RMB296 million provided by Jiangyin Jinke to Wujiang Jinke before December 2011 and the loan interest of RMB29,308,900 in 2012 before 30 June 2014. For the aforesaid RMB296 million creditor’s rights, a capital occupation fee should be charged at an annual interest rate of 7% from 1 January 2013 to the period when Wujiang Jinke actually returned it to Jiangyin Jinke, and Jiangsu Hengyuan should ensure that Wujiang Jinke would make a lump-sum payment before 31 December 2018. If Wujiang Jinke fails to repay the aforesaid debt and interest to Jiangyin Jinke before the deadline, a penalty interest rate of 20%/year should be imposed, and Jiangsu Hengyuan and Jiangsu Yangzijiang Shipbuilding (Holdings) Ltd. should bear the joint and several liabilities for the said loan and interest.

To urge Wujiang Jinke to pay relevant debts as soon as possible, the Company has consulted with the associated enterprises Jiangsu Hengyuan and Wujiang Jinke for many times. As urged by the Company, on 12 October 2014, Jiangyin Jinke, Wujiang Jinke and Jiangsu Hengyuan signed the Supplementary Agreement II to the Cooperation Development Agreement . The main contents of the Agreement are as follows: 1. Wujiang Jinke borrowed RMB296 million from Jiangsu Hengyuan and paid a lump sum off the said loan principal of RMB296 million to Jiangyin Jinke; 2. the accrued interest of RMB29,308,931.45 in 2012 and the interest (based on an annual interest rate of 7%) of the aforesaid loan principal of RMB296 million from 1 January 2013 to the period when Wujiang Jinke actually repaid the loan should be settled upon completion of the project. If there is any loss during the settlement of the project, Jiangyin Jinke should exempt Wujiang Jinke from any responsibility of repayment of interest; 3. this Agreement should enter into force after Wujiang Jinke fully paid the said loan principal of RMB296 million to Jiangyin Jinke, otherwise, the parties should still fulfill their responsibilities and obligations according to the originally signed Cooperation Development Agreement and Supplementary Agreement to the Cooperation Development Agreement .

On 13 October 2014, Jiangyin Jinke duly received the loan principal of RMB296 million from Wujiang Jinke.

(For details, refer to the relevant announcements published by the Company on 12 July and 14 October 2014 on the media (such as www.cninfo.com.cn and China Securities Journal ) designated by the Company for information disclosure.)

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As at 31 December 2015, the book value of long-term equity investment of Jiangyin Jinke in Wujiang Jinke was RMB103,257,200, and the book balance and book value of other accounts receivable were RMB64,777,800 and RMB46,735,900, respectively. During the reporting period, affected by the regional market and local real estate control policies, the projects developed by Wujiang Jinke recorded losses of RMB266,763,900 in the current period, and red ink is expected also for the project settlement. As such, the book value of long-term equity investment stated by equity method in the current period was RMB0. In the meantime, the ending book balance of other accounts receivable from Wujiang Jinke was RMB65,495,900, which should be fully withdrawn for impairment after single impairment test, with RMB47,454,000 additionally withdrawn for bad debts.

In accordance with the Cooperation Development Agreement and relevant supplementary agreements and the Articles of Association of Wujiang Jinke, the Company will actively fulfill its shareholder’s rights, strengthen communication and coordination with the partners, and strive to reduce the operating loss of the project company and enhance the operating performance and solvency, to try to avoid or reduce investment losses.

9. Other investment-related matters

To speed up the upgrading and transformation, and by relying on the main business of real estate, actively develop modern service industry, connect users through “real estate + integrated community service”, create integrated community service platform, and focus on vertical development of community, and become the first-rank “Good Life Service Provider” in China, the Company plans to set aside RMB1 billion respectively to establish Jinke Integrated Community Service Group Limited (tentative name) and Jinke Education Investment Management Co., Ltd. (tentative name) (hereinafter referred to as the “Education Company”). As at the reporting date, the name of the Education Company has been certified and relevant follow-up issues are under way.

(For details, refer to the relevant announcements published by the Company on 6 July 2016 on the media (such as www.cninfo.com.cn and C hina Securities Journal ) designated by the Company for information disclosure.)

Section 8 Directors, Supervisors, Senior Executives and Employees

IV. Remuneration of directors, supervisors and senior executives

Decision-making procedures and determination basis for and actual payment of remuneration of directors, supervisors and senior executives

During the reporting period, directors, supervisors and senior executives of the Company were paid remuneration according to relevant remuneration management rules of the Company and based on their positions other than director or supervisor.

The Company only granted allowance to independent directors according to the decisions of the general meeting, not other directors and supervisors.

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Remuneration of directors, supervisors and senior executives of the Company during the reporting period

Unit: RMB’0,000

					Total pre-tax	Did he/she obtain
					remuneration	remuneration from
					gained from the	the Company’s
Name	Position	Gender	Age	Incumbent or not	Company	connected party
Jiang Sihai	Chairman of the Board of	Male	50	Incumbent	661.45	No
	Directors and President
Liu Zhonghai	Director and Board Secretary	Male	41	Incumbent	225.75	No
Shang Yu	Director	Male	37	Incumbent	0	Yes
Zhang Qiang	Director	Male	42	Incumbent	0	Yes
Luo Liang	Employee Director	Male	39	Incumbent	134.75	No
Zhou Da	Employee Director	Male	35	Incumbent	129.85	No
Li Ming	Independent Director	Male	53	Incumbent	18	No
Cheng Yuanwei	Independent Director	Male	52	Incumbent	18	No
Cao Guohua	Independent Director	Male	50	Incumbent	18	No
Jiang Xingcan	Chairman of the Supervisory	Male	64	Incumbent	244.05	No
	Committee
Han Chong	Supervisor	Male	44	Incumbent	80.35	No
Zhou Yangmei	Employee Supervisor	Female	46	Incumbent	46.92	No
Luo Licheng	Executive President	Male	51	Incumbent	558.42	No
Li Hua	Vice President and Chief	Male	53	Incumbent	420.94	No
	Financial Officer
Fang Mingfu	Vice President	Male	43	Incumbent	374.7	No
Yu Linqiang	Vice President	Male	41	Incumbent	689.69	No
He Liwei	Vice President	Male	52	Incumbent	525.4	No
Wang Hongfei	Vice President	Male	51	Incumbent	1,089.81	No
Huang Hongyun	Chairman of the Board of	Male	50	Resigned	607.92	No
	Directors
Zhang Tiancheng	Director and Vice President	Male	41	Resigned	190.80	No
Fu Xiaowen	Supervisor	Male	47	Resigned	0	Yes
Chen Changfeng	Employee Supervisor	Female	48	Resigned	277.5	No
Nie Ming	Employee Supervisor	Female	53	Resigned	96.06	No
Chen Hong	Employee Supervisor	Female	48	Resigned	63.98	No
Total	—	—	—	—	6,472.34	—

— 693 —

APPENDIX III

MANAGEMENT DISCUSSION AND ANALYSIS OF JINKE PROPERTY

Equity incentive granted to directors and senior executives of the Company during the reporting period

� Applicable □ Not Applicable

Unit: share

								Number of
				Exercise		Number of		restricted
		Number of	Number of	price of		restricted	Number of	shares newly		Number of
		exercisable	exercised	exercised	Market price	shares held	unlocked	conferred	Price of	restricted
		shares during	shares during	shares during	at the end of	at the	shares in the	during the	restricted	shares held
		the reporting	the reporting	the reporting	the reporting	beginning of	current	reporting	shares	at the end of
Name	Position	period	period	period	period	the period	period	period	conferred	the period
				(RMB)	(RMB/share)				(RMB/share)
Jiang Sihai	Chairman of the					25,000,000	6,250,000	2,000,000	2.62	20,750,000
	Board of Directors
	and President
Liu Zhonghai	Director and Board					7,000,000	1,750,000	0		5,250,000
	Secretary
Luo Liang	Employee Director					2,500,000	625,000	500,000	2.62	2,375,000
Zhou Da	Employee Director					1,150,000	287,500	1,000,000	2.62	1,862,500
Luo Licheng	Executive President					10,000,000	2,500,000	0		7,500,000
Li Hua	Vice President and					9,000,000	2,250,000	0		6,750,000
	Chief Financial
	Officer
Fang Mingfu	Vice President					7,000,000	1,750,000	1,000,000	2.62	6,250,000
Yu Linqiang	Vice President					7,000,000	1,750,000	0		5,250,000
He Liwei	Vice President					3,000,000	750,000	0		2,250,000
Wang Hongfei	Vice President					10,000,000	2,500,000	0		7,500,000
Total	—			—	—	81,650,000	20,412,500	4,500,000	—	65,737,500
Remarks (if any)		No

— 694 —

APPENDIX III

MANAGEMENT DISCUSSION AND ANALYSIS OF JINKE PROPERTY

V. Employees of the Company

1. Number, professional composition and educational background of employees

Number of in-service employees of the parent company (Person)	262
Number of in-service employees of major subsidiaries (Person)	11,744
Total number of in-service employees (Person)	12,006
Total number of paid employees in the current period (Person)	12,006
Number of paid retired employees in the parent company and major
subsidiaries (Person)	0
Professional composition
Category	Number (Person)
Sales personnel	783
Technical personnel	1,778
Financial personnel	240
Administrative personnel	2,361
Operators	6,844
Total	12,006
Education level
Category	Number (Person)
Master’s degree or above	380
Bachelor degree	4,400
Junior college student	1,335
Below junior college education	5,891
Total	12,006

1. Remuneration policy

According to the Labor Law , Labor Contract Law and relevant laws and regulations and in the principle of basing return on contribution and remaining competitive in the industry, the Company stuck to a labor contract system for all employees and determined employees’ remuneration by their personal ability, job responsibility, value contribution and market value. The Company has paid basic old-age insurance, medical insurance, unemployment insurance, work-related injury insurance, maternity insurance and housing provident fund for employees pursuant to relevant state and local government regulations.

3. Training programs

Through effective training and education, the Company kept developing employees’ potential and helped them improve their occupational ability, occupational quality and professionalism as well as lifelong employability. In the year the Company ensured not more than 50 hours of training for managerial personnel and not more than 30 hours of training for operators. Various subsidiaries organized professional skill training and the Group organized management training, realizing 99% coverage of employee training.

— 695 —

MANAGEMENT DISCUSSION AND ANALYSIS OF JINKE PROPERTY

APPENDIX III

1. Labor outsourcing

□ Applicable � Not Applicable

Section 9 Corporate Governance

VIII. The evaluation and incentive mechanism for senior executives

With a complete evaluation and remuneration incentive mechanism, the Company conducted senior executive evaluation based on completion of key tasks, key performance indicators and assigned duties in the year. Remuneration of senior executives, on a post salary basis, consisted of fixed wages, bonus and social insurance & welfare; specifically, fixed wages were determined by post evaluation, job family and market position; bonus was determined by personal performance and fulfilment of job objectives; social insurance & welfare were determined by relevant regulations of the state and relevant systems of the Company.

1. Principal accounting data and financial indexes of the Company for the two years ended as at the reporting period

Unit: RMB0’000

			Same period
Item	2016	2015	rate of change
Earnings before interest, taxes, depreciation	282,116.54	230,252.56	22.52%
and amortization (EBITDA)
Current ratio	207.37%	144.41%	62.96%
Asset-liability ratio	79.38%	83.95%	-4.57%
Quick ratio	57.95%	25.16%	32.79%
Total debts ratio of EBITDA	6.27%	5.79%	0.48%
Interest covered multiple	0.82	0.63	30.16%
Cash interest covered multiple	3.39	1.28	164.84%
Interest covered multiple of EBITDA	0.90	0.68	32.35%
Loan repayment ratio	100.00%	100.00%	0%
Interest payment ratio	100.00%	100.00%	0%

Major reasons for an over 30% year-on-year change in the said accounting data and financial indexes

• Applicable □ Not Applicable

• Current ratio was primarily due to an increase in monetary capital and a decrease in the borrowing due within a year;

— 696 —

MANAGEMENT DISCUSSION AND ANALYSIS OF JINKE PROPERTY

APPENDIX III

1. Quick ratio was primarily due to an increase in monetary capital and a decrease in the borrowing due within a year;

2. Interest covered multiple was primarily due to an increase in earnings before interest and taxes during the period as compared with those of the corresponding period last year;

3. Cash interest covered multiple was primarily due to a significant increase in the net cash flows generated from the operating activities during the period;

4. Interest covered multiple of EBITDA was primarily due to a significant increase in the earnings before interest, taxes, depreciation and amortization.

— 697 —

UNAUDITED PRO FORMA FINANCIAL INFORMATION OF THE GROUP

APPENDIX IV

UNAUDITED PRO FORMA FINANCIAL INFORMATION OF THE GROUP

The following is an illustrative and unaudited pro forma consolidated statement of assets and liabilities of the Group as at 31 December 2016 (the “ Unaudited Pro Forma Financial Information ”) which has been prepared based on the basis of the notes set out below for the purpose of illustrating the effect of the acquisitions of the relevant equity interests of Jinke Property Group Co., Ltd. (“ Jinke Property ”) from 1 January 2017 to 28 April 2017 (the “ Transactions ”), as if the Transactions had been taken place on 31 December 2016. This pro forma financial information has been prepared for illustrative purposes only and because of its hypothetical nature, it may not give a true picture of the financial position of the Group had the Transactions been completed as at 31 December 2016 or at any future date.

The Unaudited Pro Forma Financial Information of the Group should be read in conjunction with other financial information included elsewhere in this circular.

UNAUDITED PRO FORMA CONSOLIDATED STATEMENT OF ASSETS AND LIABILITIES OF THE GROUP

			Unaudited
	Audited		pro forma
	consolidated		consolidated
	statement of assets		statement of assets
	and liabilities of the		and liabilities of
	Group as at	Pro forma	the Group as at
	31 December 2016	adjustments	31 December 2016
	(Note 1)	(Note 2)
	RMB’000	RMB’000	RMB’000
Assets
Non-current assets
Property, plant and equipment	546,526	—	546,526
Investment properties	656,046	—	656,046
Intangible assets	421,353	—	421,353
Investments accounted for using the equity
method	34,552,860	1,180,156	35,733,016
Prepayments	1,657,285	—	1,657,285
Deferred income tax assets	2,385,982	—	2,385,982
Available-for-sale financial assets	160,000	—	160,000
Derivative financial instruments	105,359	—	105,359
	40,485,411	1,180,156	41,665,567

— 698 —

APPENDIX IV

UNAUDITED PRO FORMA FINANCIAL INFORMATION OF THE GROUP

			Unaudited
	Audited		pro forma
	consolidated		consolidated
	statement of assets		statement of assets
	and liabilities of the		and liabilities of
	Group as at	Pro forma	the Group as at
	31 December 2016	adjustments	31 December 2016
	(Note 1)	(Note 2)
	RMB’000	RMB’000	RMB’000
Current assets
Properties under development	106,962,516	—	106,962,516
Completed properties held for sale	23,658,662	—	23,658,662
Trade and other receivables	8,416,425	—	8,416,425
Amounts due from related companies	37,919,092	—	37,919,092
Prepayments	5,928,319	—	5,928,319
Restricted cash	17,726,623	—	17,726,623
Cash and cash equivalents	52,086,050	(1,180,156)	50,905,894
	252,697,687	(1,180,156)	251,517,531
Total assets	293,183,098	—	293,183,098
Liabilities
Non-current liabilities
Borrowings	80,199,682	—	80,199,682
Derivative financial instruments	187,776	—	187,776
Deferred income tax liabilities	8,790,371	—	8,790,371
	89,177,829	—	89,177,829
Current liabilities
Trade and other payables	41,413,335	—	41,413,335
Advanced proceeds from customers	34,376,367	—	34,376,367
Amounts due to related companies	51,671,111	—	51,671,111
Current income tax liabilities	8,488,966	—	8,488,966
Borrowings	32,644,337	—	32,644,337
	168,594,116	—	168,594,116
Total liabilities	257,771,945	—	257,771,945
Net assets	35,411,153	—	35,411,153

— 699 —

APPENDIX IV

UNAUDITED PRO FORMA FINANCIAL INFORMATION OF THE GROUP

Notes to the Unaudited Pro Forma Financial Information of the Group:

1. The balances are extracted from the audited consolidated balance sheet of the Company as at 31 December 2016 as set out in the Company’s published annual report for the year ended 31 December 2016.

2. As at 31 December 2016, Jinke Property was a 21.08% indirectly owned associate of the Company. After 31 December 2016 and up to 28 April 2017, the Company further acquired 209 million shares of Jinke Property at total investment cost of RMB1,180,156,481, which included cash consideration of RMB1,179,917,569 and transaction cost of RMB238,912. Upon the completion of the acquisitions, the Company indirectly holds a total of 1,335,841,985 shares, representing approximately 25% of the total issued shares of Jinke Property as at 28 April 2017.

For the purpose of this Unaudited Pro Forma Financial Information, the Company has estimated its share of the net fair value of Jinke Property’s identifiable assets and liabilities, which was less than the consideration. The excess of the consideration over the Company’s share of the fair value of Jinke Property’s net assets is accounted for as goodwill and recorded in the carrying value of the investment in Jinke Property.

1. No adjustment has been made to the Unaudited Pro Forma Financial Information of the Group to reflect any trading results or other transactions of the Group and Jinke Property entered subsequent to 31 December 2016.

— 700 —

UNAUDITED PRO FORMA FINANCIAL INFORMATION OF THE GROUP

APPENDIX IV

The following is the text of a report received from PricewaterhouseCoopers, Certified Public Accountants, Hong Kong, for the purpose of incorporation in this circular.

==> picture [70 x 51] intentionally omitted <==

INDEPENDENT REPORTING ACCOUNTANT’S ASSURANCE REPORT ON THE COMPILATION OF UNAUDITED PRO FORMA FINANCIAL INFORMATION

To the Directors of Sunac China Holdings Limited

We have completed our assurance engagement to report on the compilation of unaudited pro forma financial information of Sunac China Holdings Limited (the “Company”) and its subsidiaries (collectively the “Group”), and Jinke Property Group Co., Ltd. (“Jinke Property”) by the directors for illustrative purposes only. The unaudited pro forma financial information consists of the unaudited pro forma consolidated statement of assets and liabilities as at 31 December 2016, and related notes (the “Unaudited Pro Forma Financial Information”) as set out on pages 698 to 700 of the Company’s circular dated 26 May 2017, in connection with the acquisition of the relevant equity interests of Jinke Property (the “Transactions”). The applicable criteria on the basis of which the directors have compiled the Unaudited Pro Forma Financial Information are described on pages 698 to 700.

The Unaudited Pro Forma Financial Information has been compiled by the directors to illustrate the impact of the Transactions on the Group’s financial position as at 31 December 2016 as if the Transactions had taken place at 31 December 2016. As part of this process, information about the Group’s financial position has been extracted by the directors from the Group’s financial statements for the year ended 31 December 2016, on which an audit report has been published.

Directors’ Responsibility for the Unaudited Pro Forma Financial Information

The directors are responsible for compiling the Unaudited 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”).

— 701 —

UNAUDITED PRO FORMA FINANCIAL INFORMATION OF THE GROUP

APPENDIX IV

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 behaviour.

Our firm applies Hong Kong Standard on Quality Control 1 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 Accountant’s Responsibilities

Our responsibility is to express an opinion, as required by paragraph 4.29(7) of the Listing Rules, on the Unaudited 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 Unaudited 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 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 accountant plans and performs procedures to obtain reasonable assurance about whether the directors have compiled the Unaudited 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 purposes of this engagement, we are not responsible for updating or reissuing any reports or opinions on any historical financial information used in compiling the Unaudited 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 Unaudited Pro Forma Financial Information.

The purpose of unaudited pro forma financial information included in a circular is solely to illustrate the impact of a significant event or transaction on unadjusted financial information of the entity 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 Transactions at 31 December 2016 would have been as presented.

— 702 —

UNAUDITED PRO FORMA FINANCIAL INFORMATION OF THE GROUP

APPENDIX IV

A reasonable assurance engagement to report on whether the unaudited 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 unaudited 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

• The unaudited pro forma financial information reflects the proper application of those adjustments to the unadjusted financial information.

The procedures selected depend on the reporting accountant’s judgment, having regard to the reporting accountant’s understanding of the nature of the company, the event or transaction in respect of which the unaudited pro forma financial information has been compiled, and other relevant engagement circumstances.

The engagement also involves evaluating the overall presentation of the unaudited 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 Unaudited Pro Forma Financial Information has been properly compiled by the directors of the Company 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 Unaudited Pro Forma Financial Information as disclosed pursuant to paragraph 4.29(1) of the Listing Rules.

PricewaterhouseCoopers

Certified Public Accountants Hong Kong, 26 May 2017

— 703 —

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 Group. 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) Director’s Interest in the securities of the Company and its associated corporation

As at the Latest Practicable Date, save as disclosed below, none of the Directors or the chief executive of the Company or their respective associates had or was deemed to have any interests and short positions in the Shares, underlying Shares or debentures of the Company and its associated corporations (within the meaning of Part XV of the SFO) (i) which were required 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 they were taken or deemed to have under such provisions of the SFO); or (ii) which were required, pursuant to section 352 of the SFO to be entered in the register referred to therein; or (iii) which were required to be notified to the Company and the Stock Exchange pursuant to the Model Code for Securities Transactions by Directors of Listed Companies contained in the Listing Rules:

— 704 —

GENERAL INFORMATION

APPENDIX V

(i) Interest in Shares of the Company and/or associated corporation

				Approximate
		Relevant		percentage
		company		of interest
		(including	Number of shares	in the
	Nature of	associated	of the relevant	relevant
Name of Director	Interest	corporations)	company (1)	company(2)
Mr. Sun Hongbin	Interest in	The Company	2,091,329,884 (L)	53.76%
	controlled
	corporations(3)
	Beneficial	The Company	10,090,000 (L)	0.26%
	interest
	Beneficial	Sunac	1 (L)	100%
	interest	International(4)
Mr. Wang Mengde	Beneficial	The Company	5,600,000 (L)	0.14%
	interest
Mr. Jing Hong	Beneficial	The Company	6,100,000 (L)	0.16%
	interest
Mr. Chi Xun	Beneficial	The Company	784,000 (L)	0.02%
	interest
Mr. Tian Qiang	Beneficial	The Company	2,602,000 (L)	0.07%
	interest
Mr. Shang Yu	Beneficial	The Company	1,150,000 (L)	0.03%
	interest

Notes:

• (1) The letter “L” denotes the person’s long position in such Shares.

• (2) Based on 3,889,762,901 Shares in issue as at the Latest Practicable Date.

• (3) These Shares were held by Sunac International and 天津標的投資諮詢有限公司 (for identification only, Tianjin Biaodi Investment Consultancy Company Limited) (“ Tianjin Biaodi ”), which were wholly and beneficially owned by Mr. Sun. Mr. Sun was also the sole director of Sunac International. Mr. Sun was deemed to be interested in all these Shares by virtue of the SFO.

• (4) Sunac International is the holding company of the Company and therefore an “associated corporation” of the Company within the meaning of Part XV of the SFO.

— 705 —

GENERAL INFORMATION

APPENDIX V

(ii) Interest in the underlying shares of our Company

			Approximate
		Number of	percentage of
		Underlying	interest in the
Name of Director	Nature of Interest	Shares (1)	Company (2)
Mr. Sun Hongbin	Beneficial interest	1,300,000	0.03%
Mr. Wang Mengde	Beneficial interest	7,400,000	0.19%
Mr. Jing Hong	Beneficial interest	3,500,000	0.09%
Mr. Chi Xun	Beneficial interest	6,800,000	0.17%
Mr. Tian Qiang	Beneficial interest	6,600,000	0.17%
Mr. Shang Yu	Beneficial interest	6,300,000	0.16%
Mr. Huang Shuping	Beneficial interest	4,950,000	0.13%

Note:

• (1) The interests in the underlying shares are in relation to the options granted under the share option schemes of the Company.

• (2) Based on 3,889,762,901 Shares in issue as at the Latest Practicable Date.

As at the Latest Practicable Date, save as disclosed above, none of the Directors was a director or employee of a company which had, or was deemed to have, an interest or a short position in the Shares or underlying Shares of the Company which would fall to be disclosed to the Company and the Stock Exchange under the provisions of Divisions 2 and 3 of Part XV of the SFO.

(b) Substantial shareholders’ interest

As at the Latest Practicable Date, so far as is known to any Director or chief executive of the Company, the following persons (other than a Director or chief executive of the Company) had interests or short positions in the Shares or underlying shares of the Company as recorded in the register kept by the Company pursuant to section 336 of the SFO which would fall to be disclosed to the Company under the provisions Divisions 2 and 3 of Part XV of the SFO:

— 706 —

GENERAL INFORMATION

APPENDIX V

Long positions in the Shares and underlying Shares of the Company

			Approximate
			% of the
		Number of	issued share
		Shares	capital of the
Name of Shareholder	Nature of interest	interested	Company (1)
Sunac International	Beneficial interest	2,042,623,884	52.51%
Ping An Bank Company	Security interest	1,589,549,451	40.86%
Limited, Shanghai Pilot
Free-Trade Zone Branch
(平安銀行股份有限公司
上海自貿試驗區分行)
Ping An Bank Company	Interest in a controlled	1,589,549,451	40.86%
Limited	corporation
(平安銀行股份有限公司)
Ping An Insurance (Group)	Interest in a controlled	1,589,549,451	40.86%
Company of China, Ltd.	corporation
(中國平安保險(集團)股份
有限公司)

Note:

(1) Based on 3,889,762,901 Shares in issue as at the Latest Practicable Date.

Save as disclosed above, as at the Latest Practicable Date, no other person (other than the Directors or chief executives of the Company) had an interest or short position in the Shares or underlying Shares of the Company which were recorded in the register kept by the Company pursuant to section 336 of the SFO which would fall to be disclosed to the Company under the provisions of Divisions 2 and 3 of Part XV of the SFO.

3. DIRECTORS’ COMPETING INTERESTS

As at the Latest Practicable Date, none of the Directors and their respective associates is and was interested in any business apart from the Group’s businesses which competes, or may compete, either directly or indirectly, with the businesses of the Group pursuant to Rule 8.10 of the Listing Rules.

4. DIRECTORS’ INTERESTS IN ASSETS

As at the Latest Practicable Date, none of the Directors had any interest, either directly or indirectly, in any assets which has since 31 December 2016 (being the date to which the latest

— 707 —

GENERAL INFORMATION

APPENDIX V

published audited consolidated financial statements of the Group were made up), up to the Latest Practicable Date, been acquired or disposed of by or leased to, any member of the Group or are proposed to be acquired or disposed of by, or leased to, any member of the Group.

5. DIRECTORS’ SERVICE CONTRACTS

As at the Latest Practicable Date, none of the Directors had any existing or proposed service contract with any member of the Group which does not expire or is not determinable by such member of the Group within one year without payment of compensation (other than statutory compensation).

6. DIRECTORS’ INTERESTS IN CONTRACT OR ARRANGEMENT OF SIGNIFICANCE

As at the Latest Practicable Date, none of the Directors was materially interested, directly or indirectly, in any contract or arrangement entered into by any member of the Group subsisting at the Latest Practicable Date and which is significant in relation to the business of the Group.

7. MATERIAL CONTRACTS

The following contracts (being contracts entered into outside the ordinary course of business carried on by the Group) have been entered into by members of the Group within the two years immediately preceding the date of this circular and up to the Latest Practicable Date:

• (a) the cooperation agreement dated 12 May 2017 entered into between Tianjin Sunac Aocheng Investment Company Limited (天津融創奧城投資有限公司) (“ Tianjin Sunac ”), an indirect wholly-owned subsidiary of the Company, and Kunming Xingyao Sports City Company Limited (昆明星耀體育運動城有限公司) (“ Kunming Xingyao ”) in relation to the acquisition of 80% equity and debt interest in Tianjin Xingyao Investment Company Limited (天津星耀投資有限公司) (“ Tianjin Xingyao* ”) at a total consideration of approximately RMB10,254,240,579.30;

• (b) the restructuring agreement dated 12 May 2017 entered into between Tianjin Sunac, Kunming Xingyao, Tianjin Xingyao and three trust companies incorporated in the PRC in relation to the repayment of debts owed by Tianjin Xingyao to those three trust companies, and all supplemental agreements thereto, details of which are set out in the Company’s announcement dated 12 May 2017;

• (c) the equity transfer agreement dated 1 March 2017 centered into between, among others, Beijing Sunac Raycom Real Estate Company Limited (北京融創科技地產有限公司) (“ Beijing Sunac ”), an indirect wholly-owned subsidiary of the Company, as purchaser, and Tianjin Bolian Investment Partnership Enterprise (Limtied Partnership) (天津博聯投資合 夥企業(有限合夥)), as vendor, in relation to the acquisition of 30% equity and debt investment in Beijing Rongzhi Ruifeng Investment Company Limited (北京融智瑞豐投資 有限公司) at a total consideration of RMB686,812,439.55; (ii) the equity transfer agreement dated 1 March 2017 entered into between, among others, Beijing Sunac, as purchaser, and Lenovo (Beijing) Limited (聯想(北京)有限公司), as vendor, in relation to

— 708 —

APPENDIX V

GENERAL INFORMATION

the acquisition of 49% equity interests in Chengdu Lianchuang Rongjin Investment Limited* (成都聯創融錦投資有限責任公司) at a total consideration of RMB1,617,330,459.59; the total consideration for the acquisitions was RMB2,304,142,899.14;

• (d) the contractual arrangements entered into between Sunac Real Estate Group Co., Ltd. (融創房地產集團有限公司) (“ Sunac Real Estate ”), Tianjin Yingrui Huixin Corporate Management Co., Ltd. (天津盈瑞匯鑫企業管理有限公司), Tianjin Jiarui Huixin Corporate Management Co., Ltd.* (天津嘉睿匯鑫企業管理有限公司), Mr. Wang Peng and/or Mr. Zheng Pu, namely, (i) the exclusive technology consulting and services agreement; (ii) the entrustment agreements; (iii) the exclusive option agreements; (iv) the loan agreements with each of Mr. Wang Peng and Mr. Zheng Pu as borrowers; (v) the equity pledge agreements; and (vi) the confirmation letters from the spouse of each of Mr. Wang Peng and Mr. Zheng Pu, the details of which are set out in the paragraph headed “INFORMATION ON THE CONTRACTUAL ARRANGEMENTS” in the Company’s announcement dated 13 January 2017;

• (e) the capital increase agreement dated 9 January 2017 entered into by Sunac Real Estate, Homelink Real Estate Agency Co., Ltd. (北京鏈家房地產經紀有限公司) (“ Homelink ”) and a group of 15 operation shareholders of Homelink, including eight natural persons (namely, Zuo Hui, Shan Yigang, Xu Wangang, Dang Jie, Du Xin, Chen Rong, Ruan Guangjie and Gao Jun) and seven limited partnerships (namely, 上海毓睿投資管理中心(有 限合夥) (Shanghai Yurui Investment Management Centre (Limited Partnership)) , 上海毓思投資管理中心(有限合夥) (Shanghai Yusi Investment Management Centre (Limited Partnership)), 上海毓揚投資管理中心(有限合夥) (Shanghai Yuyang Investment Management Centre (Limited Partnership)), 上海鼎聰投資管理中心(有限合夥) (Shanghai Dingcong Investment Management Centre (Limited Partnership)), 上海博隽投資管理中心 (有限合夥) (Shanghai Bojun Investment Management Centre (Limited Partnership)), 上海站本投資管理中心(有限合夥) (Shanghai Bojun Investment Management Centre (Limited Partnership)) and 北京合誠創投投資合夥企業(有限合夥) (Shanghai Hecheng Venture Capital Investment Management Centre (Limited Partnership)) in relation to the subscription of the increased registered capital of Homelink at a total consideration of RMB2,600,000,000;

• (f) the equity transfer agreement dated 6 January 2017 entered into between Chengdu Sunac Hongchang Properties Development Co., Ltd. (成都融創泓昶房地產開發有限公司) (“ Chengdu Sunac ”), an indirect wholly-owned subsidiary of the Company, and Huoerguosi Bochen Investment Co., Ltd. (霍爾果斯博辰創業投資有限公司), Huoerguosi Chenghui Tantu Investment Co., Ltd. (霍爾果斯誠慧坦途創業投資有限公司), and Huoerguosi Kaige Investment Co., Ltd. (霍爾果斯凱格創業投資有限公司) in relation to the acquisition of the entire equity interest in Chengdu Zixi Commercial Management Co., Ltd. (成都紫希 商業管理有限公司) (“ Chengdu Zixi* ”) at a total consideration of RMB1,352,584,598.19;

• (g) the equity transfer agreement dated 6 January 2017 entered into between Chengdu Sunac, Chengdu Zixi, Xiao Miaomiao and Xiao Yongqiong in relation to the acquisition of 10% equity interest in the Second Target Company at a total consideration of RMB157,366,946.32;

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APPENDIX V

GENERAL INFORMATION

• (h) the cooperation framework agreement dated 20 December 2016 entered into between Hangzhou Rongxinheng Investment Co., Ltd. (杭州融鑫恒投資有限公司) (“ Hangzhou Rongxinheng ”), an indirect wholly-owned subsidiary of the Company, and Hangzhou Jinhan Investment Co., Ltd. (杭州金翰投資有限公司) (“ Hangzhou Jinhan ”) in relation to the acquisition of 17.34% equity and debt interests in Hangzhou Jinhong Properties Co., Ltd.* (杭州金泓置業有限公司) at a total consideration of RMB435,731,198.71;

• (i) the cooperation framework agreement dated 20 December 2016 entered into between Hangzhou Rongxinheng and Hangzhou Jinhan in relation to the acquisition of 17.34% equity and debt interests in Hangzhou Jinhe Properties Co., Ltd.* (杭州金合置業有限公司) at a total consideration of RMB148,613,522.92;

• (j) the cooperation framework agreement dated 20 December 2016 entered into between Hangzhou Rongxinheng, Jincheng Real Estate Group Co., Ltd. (金成房地產集團有限公 司) and Hangzhou Jinhan in relation to the acquisition of 34% equity and debt interests in Hangzhou Ducheng Properties Co., Ltd. (杭州都城置業有限公司) at a total consideration of RMB274,306,530.51;

• (k) the equity transfer agreement dated 29 November 2016 between Sunac (Qingdao) Real Estate Company Limited (融創(青島)置地有限公司) (“ Qingdao Sunac ”), an indirect wholly-owned subsidiary of the Company, and Calxon Group (Shanghai) Limited Company (嘉凱城集團(上海)有限公司) (“ Calxon Group ”) in relation to the sale and purchase of the entire equity interest in Qingdao Calxon Real Estate Development Company Limited (青島嘉凱城房地產開發有限公司) (“ Qingdao Calxon* ”) at a total consideration of RMB3,662,000,000;

• (l) the guarantee agreement dated 29 November 2016 executed by Beijing Sunac Property Construction and Investment Limited（北京融創建投房地產有限公司）(“ Beijing Sunac Property ”) in favour of Calxon Group in respect of, among other things, the obligation of Qingdao Calxon to repay the shareholder loans to Calxon Group and its related parties;

• (m) the counter guarantee agreement dated 29 November 2016 executed by Beijing Sunac Property in favour of Calxon Group and China Evergrande Group Company Limited (恒大地產集團有限公司) (“ Evergrande* ”) in respect of all the liabilities and expenses, including the principal and interest of the loan, any penalties, damages and expenses which may be payable by Calxon Group and Evergrande under the certain guarantee provided by them in respect of liabilities of Qingdao Calxon, details of which are set out in the Company’s announcement dated 29 November 2016;

• (n) the supplemental agreement (the “ Supplemental Agreement 1 ”) dated 28 October 2016 entered into among Sunac Real Estate, Raycom (as defined below) and Legend Holdings (as defined below) to adjust the consideration payable for the equity interests of 40 target companies under the Framework Agreement 1 (as defined below);

• (o) the subscription agreement dated 26 September 2016 entered into between the Company and Sunac International Investment Holdings Ltd in connection with the subscription of 453,074,433 new Shares by Sunac International Investment Holdings Ltd at a subscription price of HK$6.18 per Share;

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GENERAL INFORMATION

• (p) the subscription agreement dated September 2016 entered into between Tianjin Jujin Property Management Ltd. (天津聚金物業管理有限公司) (“ Jujin Property ”), an indirect wholly-owned subsidiary of the Company, and Jinke Property Group Co., Ltd. (金科地產 集團股份有限公司) (“ Jinke Property ”), pursuant to which Jujin Property agreed to subscribe for 907,029,478 shares in Jinke Property at a subscription price of RMB4.41 per share, representing a total consideration of RMB3,999,999,997.98;

• (q) the asset transfer framework agreement (the “ Framework Agreement 1 ”) dated 16 September 2016 entered into among Sunac Real Estate, an indirect wholly-owned subsidiary of the Company, and Raycom Real Estate Development Co., Ltd. (融科智地房 地產股份有限公司) (“ Raycom ”) and Legend Holdings Corporation (聯想控股股份有限公 司) (“ Legend Holdings ”) (as amended and supplemented by a supplemental agreement dated 28 October 2016 (the “ Supplemental Agreement 1* ”) entered into by the same parties) pursuant to which Raycom and Legend Holdings agreed to sell, and Sunac Real Estate agreed to purchase: (i) the relevant equity interests of 40 target companies; (ii) the loans and payables owed by the onshore target companies and their respective subsidiaries to Raycom and Legend Holdings; and (iii) the loans owed by an offshore target company to Right Lane Limited (南明有限公司), an offshore subsidiary of Legend Holdings, for a total consideration of approximately RMB13,850,820,000 (having taken into account the adjustments pursuant to the Supplemental Agreement 1, and subject to any other adjustments pursuant to the terms and conditions of the Framework Agreement 1). Pursuant to the adjustment mechanisms in the Framework Agreement I and consultation between the Sunac Real Estate, Raycom and Legend Holdings, the number of target companies finally acquired by the Group under Framework Agreement I was reduced from 40 to 35, and the adjusted total consideration for the acquisitions was approximately RMB15,623,382,700;

• (r) the asset transfer framework agreement (the “ Framework Agreement 2 ”) dated 16 September 2016 entered into between Sunac Real Estate and Legend Holdings pursuant to which Legend Holdings agreed to sell and Sunac Real Estate agreed to purchase (i) 100% equity interest in Beijing EnsenCare Holdings Co., Ltd. (北京安信頤和控股有限公司) (“ EnsenCare* ”) at the consideration of RMB87,000,000; and (ii) the outstanding shareholders’ borrowings of RMB50,000,000 owed by EnsenCare to Legend Holdings and accrued but unpaid interest of RMB617,300. As such, the total consideration contemplated under the Framework Agreement 2 shall be RMB137,617,300, subject to adjustments pursuant to the terms and conditions of the Framework Agreement 2;

• (s) the equity transfer framework agreement dated 22 August 2016 entered into between Hainan Sunac Properties Co., Ltd. (海南融創基業房地產有限公司) (“ Hainan Sunac ”), an indirect wholly-owned subsidiary of the Company, and Hangzhou Jinhan Investment Co., Ltd. (杭州金翰投資有限公司) (“ Hangzhou Jinhan ”), pursuant to which Hainan Sunac agreed to acquire and Hangzhou Jinhan agreed to dispose of 50% equity and debt interests in each of 杭州禾明投資有限公司 (Hangzhou Heming Investment Co., Ltd.), 杭州融悅投 資有限公司 (Hangzhou Rongyue Investment Co., Ltd.) and 浙江悅成投資有限公司 (Zhejiang Yuecheng Investment Co., Ltd.*), of which (i) the consideration for the equity interests was RMB1,954,717,510; and (ii) the relevant outstanding shareholder’s borrowings owed by the relevant target companies to Hangzhou Jinhan was RMB99,117,490. Therefore, the aggregate consideration for the acquisition was RMB2,053,835,000;

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APPENDIX V

GENERAL INFORMATION

• (t) the framework agreement dated 19 May 2016 (as supplemented by two supplemental agreements both dated 22 July 2016) entered into between the Company and Top Spring International Holdings Limited, pursuant to which the Company agreed to (a) acquire the entire equity interest in six target companies and (b) settle the inter-company loans among the six target companies and/or the project companies owned by such target companies, which are holding interests in property development projects in Shanghai, Nanjing, Shenzhen, Huizhou and Hangzhou in the PRC, at a total adjusted consideration of RMB4,225,230,000;

• (u) the cooperation agreement dated 18 March 2016 entered into between Shanghai Sunac Property Development Co., Ltd. (“ Shanghai Sunac ”), a wholly-owned subsidiary of the Company, and Shanghai Moke Real Estate Co. Ltd (上海摩克房地產有限公司) (“ Shanghai Moke ”) in connection with the formation of a joint venture and the acquisition of two target projects. Pursuant to the cooperation agreement, the equity interests of the joint venture will ultimately be held as to 80% and 20% by Shanghai Sunac and Shanghai Moke, respectively, and the joint venture will be responsible for the development of the two target projects. The aggregate amount payable by Shanghai Sunac under the cooperation agreement is approximately RMB3,305,347,400 together with accrued interest;

• (v) the cooperation agreement dated 25 February 2016 entered into between Tianjin Sunac Ao Cheng Investment Co., Ltd (“ Tianjin Sunac Ao Cheng ”), a wholly-owned subsidiary of the Company, as purchaser, Sunac Real Estate, as guarantor of the purchaser, Zhengzhou Meisheng Real Estate Development Co. Ltd. (鄭州美盛房地產開發有限公司) (“ Zhengzhou Meisheng ”) as vendor and Henan Zhaoteng Investment Co. Ltd (河南省兆騰投資有限公司) , as guarantor of the vendor, pursuant to which, Tianjin Sunac Ao Cheng agreed to acquire and Zhengzhou Meisheng agreed to dispose of 70% equity and debt interests in Zhongmu Meisheng Real Estate Co., Ltd (中牟美盛置業有限公司) (“ Zhongmu Meisheng ”) at a total consideration of RMB753,916,863.21;

• (w) the two equity transfer agreements dated 1 February 2016 entered into between Shanghai Sunac as purchaser and Der Group Co. Ltd. (“ Der Group ”) and Mr. HE Yonggang as vendors (collectively the “ Suzhou Vendors ”), pursuant to which (i) Shanghai Sunac agreed to acquire and the Suzhou Vendors agreed to dispose of the entire equity and debt interests in Suzhou Der Taihu Bay Properties Co., Ltd. (“ Suzhou Der Taihu Bay ”), of which the consideration for (a) the equity interests amounted to RMB724,459,419 (after adjustment); and (b) the entire outstanding shareholder’s loan owed by Suzhou Der Taihu Bay to the Suzhou Vendors amounted to RMB685,540,581, representing an aggregate consideration of RMB1,410,000,000 (after adjustment) (“ Acquisition I ”); and (ii) Shanghai Sunac agreed to acquire and the Suzhou Vendors agreed to dispose of the entire equity and debt interests in Suzhou Der Taihu Town Real Estate Co., Ltd. (“ Suzhou Der Taihu Town ”), of which the consideration for (a) the equity interests amounted to RMB28,308,318; and (b) the entire outstanding shareholder’s loan owed by Suzhou Der Taihu Town to the Suzhou Vendors amounted to RMB51,691,682, representing an aggregate consideration of RMB80,000,000 (“ Acquisition II ”). As such, the total consideration for the transactions contemplated under Acquisition I and Acquisition II is RMB1,490,000,000 (after adjustment);

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APPENDIX V

GENERAL INFORMATION

• (x) the equity transfer agreement dated 15 January 2016 entered into between Shanghai Sunac Ruifeng Investment Co., Ltd. (上海融創睿豐投資有限公司) (“ Shanghai Sunac Ruifeng ”), a wholly-owned subsidiary of the Company, as purhcaser and Beijing Fengdan Investment Management Co., Ltd. (北京楓丹投資管理有限公司) (“ Beijing Fengdan ”) as vendor in relation to the acquisition of 12.5% equity interest in Shanghai Fengdan Lishe Real Estate Development Co., Ltd. (上海楓丹麗舍房地產開發有限公司) (“ Shanghai Fengdan ”) and the outstanding shareholder’s loan owing by Shanghai Fengdan to Beijing Fengdan at a total consideration of RMB437,500,000;

• (y) the equity transfer agreement dated 15 January 2016 entered into between Shanghai Sunac Ruifeng as purhcaser and Shenzhen Zhongshan Xingye Trading Co., Ltd. (深圳市仲山興業 貿易有限公司) (“ Shenzhen Zhongshan ”) as vendor in relation to the acquisition of 5% equity interest in Shanghai Fengdan and the outstanding shareholder’s loan owing by Shanghai Fengdan to Shenzhen Zhongshan at a total consideration of RMB175,000,000;

• (z) the equity transfer agreement dated 15 January 2016 entered into between Shanghai Sunac Ruifeng as purhcaser and Shenzhen Hua Shun Digital Technology Co., Ltd. (深圳市華順數 碼科技有限公司) (“ Shenzhen Hua Shun ”) as vendor in relation to the acquisition of 12.5% equity interest in Shanghai Fengdan and the outstanding shareholder’s loan owing by Shanghai Fengdan to Shenzhen Hua Shun at a total consideration of RMB437,500,000;

• (aa) the equity transfer agreement dated 15 January 2016 entered into between Shanghai Sunac Ruifeng as purhcaser and Shenzhen SZITIC Property Development Co., Ltd. (深圳深國投 房地產開發有限公司) (“ SZITIC Property ”) as vendor in relation to the acquisition of 7.855% equity interest in Shanghai Fengdan and the outstanding shareholder’s loan owing by Shanghai Fengdan to SZITIC Property at a total consideration of RMB274,925,000;

• (bb) the equity transfer agreement dated 13 January 2016 entered into between Shanghai Sunac and Jiangsu Youyi Hesheng Property Development Co., Ltd. (“ Jiangsu Youyi ”) for an aggregate consideration of RMB1,038,234,731, pursuant to which (i) Shanghai Sunac agreed to acquire and Jiangsu Youyi agreed to dispose of, 95% equity interest in Suzhou Xinyou Real Estate Co. Ltd. (蘇州新友置地有限公司) (“ Suzhou Xinyou ”), for RMB183,652,145, and (ii) Shanghai Sunac agreed to repay on behalf of Suzhou Xinyou the entire outstanding shareholder’s loan in the amount of RMB854,582,586 owing by it to Jiangsu Youyi;

• (cc) the agreement dated 4 January 2016 entered into between Shanghai Sunac Ruifeng and Shanghai Pudong Development Group Limited (上海浦東發展(集團)有限公司) (“ Shanghai Pudong Development ”), pursuant to which Shanghai Sunac Ruifeng agreed to acquire 9.4% interest in Shanghai Huafeng for a consideration of RMB752,000,000 and Shanghai Pudong Development was entrusted to hold the 9.4% indirect interest in Shanghai Huafeng on behalf of Shanghai Sunac Ruifeng;

• (dd) the supplemental agreement dated 30 November 2015 entered into between, among others, Tianjin Sunac Ao Cheng and Sunac Real Estate, which are both wholly-owned subsidiaries of the Company and Xian Titan Real Estate Group Co., Ltd (“ Xian Titan ”), pursuant to which the parties thereto agreed to amend and supplement the cooperative agreement dated 2 September 2015 with respect to the acquisition of Jinan Lihao Properties Co., Ltd. (濟南立皓置業有限公司) and Jinan Liyuan Properties Co., Ltd. (濟南立遠置業有限公司);

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GENERAL INFORMATION

APPENDIX V

• (ee) the supplemental agreements dated 30 November 2015 entered into between, among others, Tianjin Sunac Ao Cheng, Sunac Real Estate and Xian Titan, pursuant to which the parties thereto agreed to amend and supplement the cooperative agreement dated 2 September 2015 with respect to the acquisition of Tianmao Properties (Nanjing)., Ltd. (天茂置業

• （南京）有限公司), Titan International Investment Group Limited and Nanjing Titan Technology Investment Development Co., Ltd. (南京天朗科技投資發展有限公司);

• (ff) the equity transfer agreement dated 29 October 2015 entered into between Shanghai Sunac Real Estate Development Co., Ltd (“ Shanghai Sunac Real Estate ”), a wholly-owned subsidiary of the Company, as purchaser, and Shanghai Yuehua Kangjian Investment Management Co., Ltd (“ Shanghai Yuehua ”) as vendor, pursuant to which Shanghai Sunac Real Estate agreed to, or would procure its designated wholly-owned subsidiary to, acquire and Shanghai Yuehua agreed to dispose of, the entire equity interest in Shanghai Lingwu Investment Management Co., Ltd. (“ Shanghai Lingwu ”) and the outstanding shareholder’s loan owing by Shanghai Lingwu to Shanghai Yuehua at a total consideration of RMB1,400,000,000;

• (gg) the cooperative agreement dated 2 September 2015 entered into between, among others, Tianjin Sunac Ao Cheng and Tianjin Sunac Zhidi Co., Ltd (“ Sunac Zhidi ”), which are both wholly-owned subsidiaries of the Company, and Xian Titan, pursuant to which Tianjin Sunac Ao Cheng and Xian Titan agreed to cooperate to establish a joint venture company in Xian, the PRC (the “ Joint Venture ”) with a registered capital of RMB100 million, and was contributed as to 80% by Tianjian Sunac Ao Cheng and 20% by Xian Titan. Upon establishment of the Joint Venture, it (i) shall acquire the equity interest in the two property projects under development in Xian, the PRC held by Xian Titan for a total consideration of RMB187.9 million; (ii) can acquire and develop the projects to be developed by Xian Tital or its affiliated companies in Xian, the PRC by participating in the process of tender, auction and listing; and (iii) shall cooperate with Xian Titan in the acquisition and development of the reserve projects in Xian to be participated or intended to be acquired by Xian Titan or its affiliated companies and subsidiaries in the future by way of joint injection of funds for the establishment of project companies of which Xian Titan and the Joint Venture shall hold no more than 30% and no less than 70% equity interest in such project companies, respectively. Further, pursuant to the cooperative agreement, Tianjin Sunac Ao Cheng agreed to acquire (by itself or through its designated company) the 100% equity interest in the project companies of Xian Titan with property projects located in Jinan, Nanjing and Chengdu of the PRC for a total consideration of RMB496.17 million;

• (hh) the equity transfer agreement dated 26 August 2015 entered into between Shanghai Sunac Ruifeng as purchaser and Shenzhen Shenshangzhi Management Co., Ltd. (“ SZ Shenshangzhi ”) as vendor, pursuant to which Shanghai Sunac Ruifeng agreed to acquire and SZ Shenshangzhi agreed to dispose of 14% equity interest in Shanghai Fengdan and the outstanding shareholder’s loan owing by Shanghai Fengdan to SZ Shenshangzhi at a total consideration of RMB329,000,000;

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APPENDIX V

GENERAL INFORMATION

• (ii) the equity transfer agreement dated 26 August 2015 entered into between Shanghai Sunac Ruifeng as purchaser and China Resources SZITIC Investment Ltd. (“ CR SZITIC Investment ”) as vendor, pursuant to which Shanghai Sunac Ruifeng agreed to acquire and CR SZITIC Investment agreed to dispose of 10.29% equity interest in Shanghai Fengdan and the outstanding shareholder’s loan owing by Shanghai Fengdan to CR SZITIC Investment at a total consideration of RMB241,815,000;

• (jj) the acquisition agreement dated 24 July 2015 entered into between, among others, Ease Success Holdings Limited (“ Ease Success ”), a wholly-owned subsidiary of the Company, as purchaser, and Marvel Leader Investments Limited (“ Marvel Leader ”) as vendor, pursuant to which Ease Success conditionally agreed to acquire and Marvel Leader conditionally agreed to dispose of (i) the entire issued shares in Joyview Group Limited (“ Joyview ”) which in turn indirectly owned 80% equity interest in Chengdu Guojia Zhide Zhiye Co., Ltd. (成都國嘉志得置業有限公司) (“ Chengdu Guojia ”) and (ii) the outstanding shareholder’s loan owing by Joyview to Marvel Leader, at a total consideration of RMB2,755,553,457.92; and

• (kk) the acquisition agreement dated 24 July 2015 entered into between, among others, Chongqing Sunac Foundation Real Estate Development Co. Ltd. (“ Chongqing Sunac Foundation ”), a wholly-owned subsidiary of the Company, as purchaser, and Sichuan Guojia Real Estate Co. Ltd. (“ Sichuan Guojia ”) as vendor, pursuant to which Chongqing Sunac Foundation conditionally agreed to acquire and Sichuan Guojia conditionally agreed to dispose of 20% equity interest in Chengdu Guojia and the outstanding shareholder’s loan and interest owing by Chengdu Guojia to Sichuan Guojia at a total consideration of RMB450,000,000.

8. EXPERT’S QUALIFICATION AND CONSENT

The following is the qualification of the expert whose name/advices and/or reports are contained in this circular:

Name	Qualification
PricewaterhouseCoopers	Certified Public Accountants, Hong Kong
Pan-China Certified Public Accountants	Certified Public Accountants

As at the Latest Practicable Date, each of the above expert (i) had no shareholding in any member of the Group and did not have any right, whether legally enforceable or not, to subscribe for or to nominate persons to subscribe for securities in any member of the Group; (ii) had no direct or indirect interest in any assets which had been, since 31 December 2016 (the date to which the latest published audited consolidated financial statements of the Group were made up), acquired, disposed of by, or leased to any member of the Group, or were proposed to be acquired, disposed of by, or leased to any member of the Group; and (iii) has given and has not withdrawn its consent to the issue of this circular with the inclusion of its letter and the reference to its name included herein in the form and context in which it appears.

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GENERAL INFORMATION

APPENDIX V

9. LITIGATION

As at the Latest Practicable Date, none of the members of the Group was engaged in any litigation, arbitration or claim of material importance and no litigation, arbitration or claim of material importance was known to the Directors to be pending or threatened against any member of the Group.

10. GENERAL

• (a) The registered office of the Company is 190 Elgin Avenue, George Town, Grand Cayman KY1- 9005, Cayman Islands.

• (b) The address of the head office of the Company is 10/F, Building C7, Magnetic Plaza, Binshuixi Road, Nankai District, Tianjin 300381 and the principal place of business of the Company in Hong Kong is 36/F, Tower Two, Times Square, 1 Matheson Street, Causeway Bay, Hong Kong.

• (c) Mr. Gao Xi (“ Mr. Gao ”) is one of the joint company secretaries of the Company and the Company has engaged Ms. Mok Ming Wai (“ Ms. Mok ”) as the other joint company secretary of the Company to assist Mr. Gao.

Mr. Gao is currently the vice president of the Group and a joint company secretary of the Company. Since joining the Group in 2007, he had held different positions in various departments of the Group, including the capital operations centre, financial management center and financing management department. Since 2011, he began to act successively as the manager, director and general manager of the investor relations department of the Company. Mr. Gao has participated in the work in relation to the Company’s initial public offering, and upon the listing of the shares of the Company on the Stock Exchange in 2010, he contributed to establish the investor relations department, where he is mainly responsible for listing compliance, corporate governance, investor relations and offshore financing related matters. Mr. Gao graduated from Shanxi University of Finance & Economics in 2008 with a master’s degree in quantitative economics.

Ms. Mok is a director of KCS Hong Kong Limited. She has over 15 years of professional and in-house experience in the company secretarial field. She is a fellow member of the Hong Kong Institute of Chartered Secretaries and the Institute of Chartered Secretaries and Administrators in the United Kingdom.

• (d) The Cayman Islands principal share registrar and transfer office is Royal Bank of Canada Trust Company, (Cayman) Limited, 4th Floor, Royal Bank House, 24 Shedden Road, George Town, Grand Cayman KY1-1110, Cayman Islands.

• (e) The Hong Kong branch share registrar and transfer is Computershare Hong Kong Investor Services Limited, at Shops 1712-1716, 17th Floor, Hopewell Centre, 183 Queen’s Road East, Wanchai, Hong Kong.

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GENERAL INFORMATION

APPENDIX V

• (f) This circular is prepared in both English and Chinese. In the event of inconsistency, the English text shall prevail over its Chinese text unless otherwise specified.

11. DOCUMENTS AVAILABLE FOR INSPECTION

Copies of the following documents will be available for inspection during normal business hours from 9:00 a.m. to 6:00 p.m. on any weekday (except public holidays) at the principal place of business of the Company in Hong Kong at 36/F, Tower Two, Times Square, 1 Matheson Street, Causeway Bay, Hong Kong up to and including the date falling on 14 days from the date of this circular:

• (a) the memorandum and articles of association of the Company;

• (b) the annual reports of the Company for the two years ended 31 December 2016;

• (c) the annual reports of Jinke Property for the three years ended 31 December 2016;

• (d) the report on unaudited pro forma financial information of the Group, the text of which is set out in Appendix IV to this circular;

• (e) the material contracts referred to in the paragraph headed “Material Contracts” in this Appendix;

• (f) the circular of the Company dated 4 May 2017; and

• (g) this circular.

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