招商局B:2015年半年度报告(英文版)

                                                              Full Text of 2015 Semiannual Report of China Merchants Property Development Co., Ltd.




                           Full Text of 2015 Semiannual Report
                                                                  Announcement No.: [CMPD] 2015-064



               Section One Important Notice, Contents and Interpretation

             Important Notes:

         Board of Directors, Board of Supervisors, Directors, Supervisors and Officers of the Company hereby
    guarantee the Report as truthful, accurate, complete, and free from any fault record, misleading statement or
    major omission and bear joint and several liabilities.
         The seventh interim meeting of the 7th BOD in 2015 reviewed and approved 2015 Semiannual Report and
    abstracts and all directors attended the meeting.
         The legal representative Sun Chengming, Chief Financial Director Wu Zhenqin and Manager of Finance
    Department Li Shifang hereby state that: the financial statements under the Report are authentic and complete.
         During the reporting period, the Company will not distribute any cash bonus, bonus shares or convert
    capital reserve to share capital.
         The Report is made in Chinese and English. In case of any discrepancy, the Chinese version shall prevail.
         The Report involves future plan and other forward-looking statements, and does not constitute substantial
    commitment for the investor against the Company. Investors shall be aware of investment risks.

                                                                                  Contents
Section One Important Notice, Contents and Interpretation ....................................................................................................................1
Section Two Company Profile .................................................................................................................................................................3
Section Three Summary of Financial Data and Financial Index ..............................................................................................................5
Section Four Directors' Report ................................................................................................................................................................7
Section Five Important Events...............................................................................................................................................................30
Section Six Capital Changes and Shareholders' Information ..............................................................................................................42
Section Seven Information about the Company's Directors, Supervisors, and Officers ........................................................................46
Mr. Liu Wei resigns his his position of vice-general manager of the Company as a result of job transfer. ............................................48
Section Eight Financial Report ..............................................................................................................................................................48
The semi-annual Financial Report of the Company has not been audited. ............................................................................................48
Section Nine Contents of Reference Files ...........................................................................................................................................209





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                                 Abbreviation and Interpretation


Unless otherwise stated, the meanings of following abbreviations in this report are as follows:
              Item               means                                     Interpretation

SASAC                            means State-owned Assets Supervision and Administration Commission of State
                                       Council
CSRC                             means China Securities Regulatory Commission
SSE                              means Shenzhen Stock Exchange
The Company and Company          means China Merchants Property Development Co., Ltd.
China Merchants Group            means China Merchants Group Co., Ltd.
China Merchants Shekou           means China Merchants Shekou Industrial Zone Holdings Co., Ltd.
Dafeng International             means Dafeng International Limited Liability Company
Full Space Investment Limited    means Full-space Investment Limited Co., Ltd.
Zhangzhou Development Zone       means China Merchants Zhangzhou Development Zone Co., Ltd.
China Merchants        (Shenzhen) means
                                           China Merchants (Shenzhen) Power Supply Co., Ltd.
Power Supply
China Merchants        (Shenzhen) means
                                           China Merchants (Shenzhen) Property Development Co., Ltd.
Property
CMOCTPM                          means Shenzhen CMOCTPM Co., Ltd.
CMPI                             means China Merchants Property Investment Co., Ltd.
CMLL                             means China Merchants Land Limited





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                               Section Two Company Profile

I. Company profile

    Chinese name in full: 招商局地产控股股份有限公司 (Chinese name in short: 招商地产)
    English name in full: CHINA MERCHANTS PROPERTY DEVELOPMENT CO., LTD. (English name in
short: CMPD_
    Legal representative: Sun Chengming
    Stock Listing Exchange of the Company: SZSE, Secondary stock listing exchange of the Company: SGX
    Stock short name: ZSDC, ZSJB
    Stock code: 000024, 200024

II. Contact person and contact information

     Secretary of the Board of Directors: Liu Ning
    Representatives for Securities Affairs of the Company: Chen Jiang
    Contact address: Building 3, Nanhaiyiku, No. 6, Xinghua Road, Shekou, Nanshan District, Shenzhen City
    Post code: 518067
    Tel: 0755-26819600
    Fax:   0755-26818666
    E-mail:     cmpdir@cmhk.com

III. Others

1. Contact information

     Registered address of the Company: Building 3, Nanhaiyiku No. 6, Xinghua Road, Shekou, Nanshan
District, Shenzhen City
    Office address of the Company: Building 3, Nanhaiyiku, No. 6, Xinghua Road, Shekou, Nanshan District,
Shenzhen City
    Post code: 518067
    Website: http://www.cmpd.cn
    E-mail: cmpdir@cmhk.com

2. Information disclosure and designated place


    China Securities Journal, Securities Times, Shanghai Securities News, Securities Daily and Hong Kong
Commercial Daily
    Internet website to disclose information selected by CSRC: http://www.cninfo.com.cn


                                       Full Text of 2015 Semiannual Report of China Merchants Property Development Co., Ltd.


    Location to prepare and store annual report of the Company: secretariat of Board of Directors of the
Company

3. Change of registration


    1. Date of initial registration: September 19, 1990
    2. Place of initial registration: Shenzhen
    3. Registered Number of Business License of the Corporate Legal Entity: 440301503287841
    4. Registered number for taxation: SSDZ 440300618845136
    5. Organization code: 61884513-6
    6. Changes of main business and previous dominant stockholders since company’s listing

    The company’s predecessor is ―CHINA MERCHANTS SHEKOU PORT SERVICE CO., LTD.‖, mainly
engaged in port business. On June 7, 1993, the Company’s A shares and B shares were traded on SSE.

    From 1998 to 1999, the Company changed its own port-related assets with equity of China Merchants
(Shenzhen) Property, China Merchants (Shenzhen) Power Supply, etc. under China Merchants Shekou, holding 70%
of respective accumulative equity transferred from above companies.

    On July 21, 2000, the Company changed its name to ―CHINA MERCHANTS SHEKOU HOLDINGS CO.,
LTD.‖

    On July 13, 2001, the Company changed its own remaining port-related assets with 25% of equity of China
Merchants (Shenzhen) Property, China Merchants (Shenzhen) Power Supply, etc. under China Merchants Shekou.
    On June 24, 2004, the Company changed its name to ―CHINA MERCHANTS PROPERTY
DEVELOPMENT CO., LTD.‖, becoming a listed company mainly engaged in real estate development and
management.

    Since the Company’s listing, the dominant stockholders did not change.

4. Other relevant information

    Accounting Firm appointed by the Company
    Name: Shinewing Certified Public Accountants (Special Ordinary Partnership)
    Address: 8/F, Block A. Fu Hua Mansion, No.8, Chaoyangmen Beidajie, Dongcheng District, Beijing
    Signed CPA: Guo Jinlong Wang Yaming





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       Section Three Summary of Financial Data and Financial Index

I. Main accounting data and financial index

No retroactive adjustment or restatement of accounting data for previous years due to change in accounting policies and correction of
accounting errors
                                                                                                                          Unit: yuan
                                                                                                              Increase or decrease
               Main Accounting Data                      Reporting period           Amount of last year         of the end of this
                                                                                                                reporting period
Operating incomes                                                                                              compared with the
                                                           17,973,948,437.46            16,047,155,730.99                   12.01 %
                                                                                                                 same period of
Net profits attributable to the listed company                                                                    previous year %
                                                            2,145,502,164.69             1,785,434,748.85                   20.17
shareholders
Net profit attributable to shareholders of listed
company after deducting non-recurring profits and           1,977,585,479.54             1,842,876,971.45                     7.31 %
losses
Net cash flows from operating activities                   -7,361,095,087.22            -7,332,324,397.12                    -0.39 %

Basic earnings per share (Yuan/share)                                    0.83                         0.69                   20.29 %

Diluted earnings per share (Yuan/share)                                  0.83                         0.69                   20.29 %

Weighted average rate of return on equity    (%)                      6.76 %                       6.53 %     Increased 0.23 percent

                                                         End of reporting                                    Year-on-year increase
                                                                                    End of previous year          or decrease
                                                             period

Total assets                                              168,809,263,726.54           151,692,365,118.58                    11.28 %
Net assets attributable to the listed company              32,777,691,121.78            31,094,416,110.82                     5.41 %
shareholders


II. Data differences due to differences in Chinese and overseas accounting standards

                                                                                                                          Unit: yuan

                              Net profits attributable to the listed company         Net assets attributable to the listed company
                                               shareholders                                           shareholders
                                                                                      End of reporting
                               Reporting period         Amount of last year                                   End of previous year
                                                                                           period

By International Financial
                                   2,145,502,164.69          1,785,434,748.85           34,117,520,350.78         32,434,245,339.82
Reporting Standards
By Chinese accounting
                                   2,145,502,164.69          1,785,434,748.85           32,777,691,121.78         31,094,416,110.82
standard
Difference       between
domestic and foreign                                -                           -        1,339,829,229.00           1,339,829,229.00
accounting standards
Including: adjustment of
                                                    -                           -        1,339,829,229.00           1,339,829,229.00
goodwill value





                                            Full Text of 2015 Semiannual Report of China Merchants Property Development Co., Ltd.


                              There is no deviation of net profit of listing Company’s shareholders calculated as per International
                              Financial Reporting Standards and Chinese Accounting Standards. Main reasons for the adjustment of
Description of Deviation
                              the net profit of listing Company’s shareholders subject to International Financial Reporting Standards
between Domestic and
                              are: in accordance with Chinese Accounting Standards and relevant regulations, for equity investment
Foreign
                              difference caused by business merger of the same control, the capital reserve shall be adjusted, while the
Accounting Standards
                              goodwill against merger caused by International Financial Reporting Standards shall be separately listed
                              as assets.


III Items and amount of extraordinary profit or loss

                                                                                                                               Unit: yuan

                                                                                              Amount from beginning of year to end
                          Items of extraordinary profit or loss
                                                                                                         of reporting period

Losses and profits on disposal of non-current assets                                                                           141,917.96

Government subsidies                                                                                                        6,716,629.90

Profit or loss acquired by outward entrusted loan                                                                           6,562,957.96

Other non-operating incomes and expenditures except the foregoing items                                                     3,147,300.31

Other profit or loss items recognized by CSRC                                                                             275,247,008.70

Affected amount of minority interest income                                                                               -43,272,269.14

Affected amount of income taxes                                                                                           -80,626,860.54

                                           Total                                                                          167,916,685.15

     Note 1: the long-term equity investment after change in control of Shenzhen Overseas Chinese Town Co., Ltd. (OCT) by the
Company is measured by fair value. The equity fair value was mainly inventory evaluation appreciation. From January to June 2014,
based on the ratio of actual carried-forward inventory area in the total salable area of inventory to be carried forward on the date of
control right change of OCT, the appreciation of long-term equity investment acknowledged by assessed appreciation subject to
corresponding written off is RMB 16,539,852.23.
     Note 2: The Company acquired control over Beijing Guangying Residential Property Development Limited and consolidated
the financial statements on May 01, 2015. Its identifiable net assets was measured as per the fair value by the Company on the date of
control right change and the investment income of RMB 432,538,803 was included due to inventory evaluation appreciation. In May
and June 2015, based on the ratio of actual carried-forward inventory area in the total salable area of inventory to be carried forward
on the date of control right change, the inventory evaluation appreciation subject to corresponding written off is RMB
152,529,191.21. Due to control right change, other owners' equity in connection with the previously held equities transferred and
included in the investment income is RMB 11,777,249.14.





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                                 Section Four Directors' Report

I. Summary

Analysis of market situation

     In the first half of 2015, the economic operation in China is slow and stabilized, the policy environment of
real estate market was further eased. In an overall trend of low opening and high going, the sales volume of
commercial houses is RMB 3.4 trillion in the first half year with year-on -year growth of 10.0%. The favorable
situation of the sales failed to fully reach the upstream development and investment links. In the first half year,
RMB 4.4 trillion of development investment in real estate industry was completed in China, with the year-on-year
growth of 4.6% and the rate of growth was slower.

     From January to June, the new construction area for housing in China was 670 million m2 with the
year-on-year growth of 15.8%, which meant that the real estate market was still at the de-stocking stage in the first
half year. The inter-regional and inter-city differentiation is more obvious from the perspective of the quantity and
price of sales of commercial housing. While sales in the first and second-tier core cities were quickly warming up,
the de-stocking process of the third and fourth-tier cities was relatively slow due to high inventory level. In the
first half year, as the value increasing of former Haishekou Free Trade Area fueled a high rebound of sales
quantity and price of the overall real estate market in Shenzhen, a place with abundant reserves of the Company.

     Generally, main real estate companies all kept sales high in the first half year. However, as the industry is
more prudent on the manner of acquiring land resources before development, optimized asset-heavy strategy is
adopted universally, and the asset- light strategy mode is being probed. With the tendency of \"Mass Venturing and
Innovation\", lots of Internet companies focusing on exploiting new values of upstream and downstream industry
chains in real estate industry are established, which further expand the way of thinking in transformation of
traditional real estate companies.

Operating and management conditions of the Company

     In the context of gradually recovering of national real estate market in the first half of 2015, the Company
drove the improvement of marketing management through \"Five Strong Steps\", that is, strong steps to analyze
customers' effective demands, to enhance user experience and creation, to construct marketing channel, to reform
the marketing mechanism and to build marketing team. Moreover, through launching the first real estate mobile
Internet, which is the first matrix member marketing service own-media platform in China, the Company made a
firm step toward internal resources integration and Internet-based process to help effectively improve the overall
marketing capacity and performance. During the reporting period, the Company accumulatively achieved a
contracted sales area of 1,566,600 m2 with a year-on-year growth of 29.60 %; the contracted sales amount of
RMB 20.56 billion with a year-on-year growth of 14.86 %.




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     With a structure of obvious inter-city differentiation, the Company focused on supplementing the project
resources of strategically important cities with a moderate and prudent attitude for acquiring lands. During the
reporting period, an area of 988,300 m2 in cities like Shanghai was supplemented as the project resources, wherein
the interest area is 503,100 m2. Meanwhile, we are also actively tracking the high-quality projects in Shenzhen,
Beijing, Guangzhou, Xiamen, etc.

     In the respect of project management, the Company continued to perfect operational \"lighting\" guide to take
lighting warm control from seven dimensions, i.e., progress, quality, safety, marketing , cost, customer service,
efficiency and monitored the process of lighting,, which effectively improve the overall control ability of the
projects.

     During the reporting period, the Company continued to strengthen the implementation of product R&D and
standardization, optimized standardization product line based on market demands and creatively put forward the
product design concept of \"Two Children House\". The implementation of relevant standardization product in
cities like Nanjing had been well received by our customers.

     Under the complicated market situation, the Company vigorously developed direct financing channels,
actively supplemented high quality capital resources and ensure to meet the capital demands of operating
activities. Since the beginning of this year, the Company grasped the favorable time window of cutting bank
reserve requirement ratio and lowering interest rate and successfully issued three-year medium-term notes in two
tranches with a total amount of RMB 3 billion at an interest of 4.55% and 4.12% respectively. CMLL, a holding
subsidiary of the Company, successfully issued the 290 billion dollars convertible bonds with a nominal annual
interest rate of 0.5%, which further effectively lowered the cost of funds of the Company. In recent years, both the
interest rate and exchange rate market greatly fluctuated due to the economic situation changes at home and
abroad and the effect of policy adjustment of national currency and foreign exchanges. This puts forward higher
requirements for reasonable matching between monetary assets and monetary liabilities of capital-intensive real
estate companies and the Company will pay close attention to market changes and strengthen risk prevention.

     During the reporting period, the Company further refined the business strategy of ―One Foundation, Two
New Paths, Three Fertile Lands‖ and launched the decomposition of functional strategy, regional strategy, city
company strategy and specialized subsidiary-strategy of the Company to form a headquarter to optimize the top
design, create specialized platform and actually implement the risk management and control. The regional
management headquarters should play a proper role in decision-making, strengthen the platform relay. All city
companies should ensure a sustained growth in effective business and profits. All specialized subsidiary-strategies
should reinforce the links of value chain and create complete strategy system where the value of             asset-heavy
business is increased by operation service. All companies will work together to promote the achievement of
strategic targets of the Company.

     During the reporting period, the Company mainly focused on retirement, medical treatment, culture, science
and technology, consumption of imports, enhanced the study and practices of innovative business related to the
above fields, actively developed strategic partners and promoted the model study and implementation of projects



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of the themed industrial parks, healthy aging life industry, mobile Internet smart cities, etc. Meanwhile, we also
smoothly implemented the combination of industry and finance and the combination of industry and the Internet,
realized the effective coincidence of real estate business and financial capital and accelerated the promotion and
application the online service platform on the Internet, such as http://www.cmpmc.com/, Investment Fair, etc.
Furthermore, the Company preliminarily established a risk investment system with the combination of industry
and the Internet and strove to inject new vigor into strategic transformation of the Company.

     In the face of transformation, in addition to self-thinking and efforts, China Merchants Group, the actual
controller of the Company, launched consolidation of the Company with China Merchants Shekou, striving to
build a broader platform combining the flagship company of real estate sector of China Merchants Group with
core assets from the perspective of resources integration and coordinated development during the reporting period.
We are now processing the related work in an orderly manner and will release the announcement and resume
trading after performing the appropriate procedures.

     The comprehensive strength and brand value of the Company has been widely recognized by the market.
During the reporting period, the Company won the ―2015 TOP 10 Shanghai and Shenzhen Listed Real Estate
Companies with Comprehensive Strength‖, ―TOP 10 Companies with Sound Finance‖, ―TOP 10 Companies with
Wealth Creation Ability‖ and ―TOP 10 Companies with Investment Value‖ which was jointly evaluated and
selected by the Enterprise Institute of Development Research Center of the State Council, Real Estate Institute of
Tsinghua University and China Index Academy; ―2014 – 2015 Most Admirable Companies in China‖ that is
evaluated and selected by the Economic Observer; ―2015 TOP 100 Companies with Capital Brand Value‖ that is
jointly evaluated and selected by China Association for Public Companies, SIPF, Securities Association of China
and Asset Management Association of China, ―2014 TOP 30 Real Estate Listed Companies in China‖ and ―TOP
100 Excellent Real Estate Companies in China‖ that is evaluated and selected by Guandian New Media, ―Gallup
Global Most Devoted Organizations‖ that is evaluated and selected by Gallup Inc., ―2015 TOP 100 Companies
with Capital Brand Value‖ that is evaluated and selected by China Center for Market Value Management, ―Golden
Bee Companies‖ and ―Golden Bee  Sustainable Development Prize‖ that is evaluated and selected by WTO
Economic Herald of the Ministry of Commerce and ―China Blue Chip Enterprise Award in Real Estate‖ that is the
evaluated and selected by The Economic Observer. The operation and management performance of the Company
is fully affirmed by the outside.

Operational environment forecast and business concepts of the Company

     Currently, as the national economy is at a critical stage of adjusting structure and transferring mode, the pain
of structure adjustment is still lasting. The new power can hardly offset the effect caused by the decrease of
traditional power, so that the pressure of the economic downturn is high. In this context, a stable and wide policy
environment of real estate market is basically established, which will promote the                consistent and steady
recovery of real estate market in the second half year.

     The top priority of our work in the second half year is to strive to achieve the annual sales target. Based on
the implementation of \"Five Strong Steps\" in marketing, the Company will ensure the improvement of the



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marketing capability of companies of all cities, continue to organize crossover marketing, take advantage of the
resources integration force of \"CM companies\", thus helping to realize the sales target.

     While high quality resources should be continuously obtained from multiple channels, the resources in
strategically important cities, especially Shenzhen, Beijing and other key cities should be further effectively
configured. Furthermore, the Company will steadily undertake overseas expansion and focus on countries and
regions with great economic development potential and along the line of \"One Belt and One Road\".

     Efforts will be made to realize new breakthrough in transformation development. The Company will
continuously improve structural layout and major commercial project promotion of the first and second-tier cities
and constantly promote the construction of asset-light platforms, such as operation service platform of parks and
real estate fund management platform with combination of industry and finance. In addition, the Company will
energetically develop the cooperation in real estate finance fields, explore the possibility and feasibility of
securitization of remnant assets, vitalize remnant assets as soon as possible to improve efficiency of operation and
management.

     At the same time of carrying out normal production and operation, the Company will fully cooperate to
promote the integration of the real estate sector of China Merchants Group, profoundly consider and develop
development strategy and target for the new company to accelerate the realization of the integration effects of \"1 +
1 > 2\".

II. Analysis of main business

     In the first half of 2015, the total operating income of the Company reached RMB 17.974 billion, and the net
profit attributable to shareholders of listed companies was RMB 2.146 billion. In operating income, the sales
income of real estate is RMB 16.448 billion with a carried-over area of 1,329,500 m2; the investment property
rental income is RMB 542 million with a total rental area of 4,997,500 m2; the income of park power supply is
RMB 306 million with the sale of 372,310,000 kWh. Property management income is RMB 428 million with
property area of 23.01 million mat the end of June.

III. Main business structures

Industrial division of main businesses
                                                                                                          Unit: RMB 10,000
                                                                                                    Increase
                                                                                                        or      Percentage
                                                                                                  decrease of   increase or
                                                                                Year-to-year
                                                                  Gross                                the      decrease of
                           Operating                                          increase/decrease
      By industry                            Operating costs      profit                           operating       gross
                            incomes                                            of the operating
                                                                  margin                              costs       margin
                                                                                    income
                                                                                                   compared      over last
                                                                                                  to previous      year
                                                                                                      year
Real estate development
                                1,644,830          1,080,761          23 %                 12 %          16 %             -3
and sales



                                            Full Text of 2015 Semiannual Report of China Merchants Property Development Co., Ltd.


Rental           property
                                         54,179              27,177            44 %                  19 %           19 %
management

Power supply in the park                 30,607              24,009            21 %                   3%               3%

Property management                      42,838              40,036             1%                   -8 %              -4 %                 -3

Hotel management                         17,490              19,503           -17 %                  39 %              8%

Real estate agency                        5,056               4,317             9%                  117 %           38 %

Others                                    2,395               2,848           -44 %                  70 %           40 %                    -8

     Note 1: Due to the changes of carried-over distribution for real estate projects, the unit costs of the Company’s carried-over
projects declined slightly in the first half of 2015, mainly including more carried-over projects with low land price. Meanwhile, due
to may rigid demand projects, the unit sales price of carried-over projects also went down, and the carried-over average price
declined faster than the unit cost, leading to the year-on-year decrease of the gross profit margin of real estate development and sales;
     Note 2: As the renting rate increased, the gross profit margin for rental of investment property rental had a year-on-year
increase;
     Note 3: Due to the rapid growth of management costs, such as the labor costs of property management, the gross profit margin
of property management went down;
     Note 4: Main business of hotels of the Company includes Hilton Nanhai Hotel, Beijing Conrad Hotel & Resorts, Haitao Hotel
and Zhangzhou Meillen Health Resort. The occupancy rate of the above hotels needs to be improved. However, due to the higher
pre-operating costs for hotels, the gross margin is negative, but the gross margin has been greatly improved year on year. The NCF
(net cash flow) gradually becoming positive.



  Regional division of main business
                                                                                                                    Unit: RMB 10,000

                                                                                                                              Percentage
                                                                                                                              increase or
                                                                                 Year-to-year         Year-to-year            decrease of
                         Operating                            Gross profit    increase/decrease    increase/decrease
    By regions                            Operating costs                                                                 gross margin
                          incomes                             margin (%)       of the operating     of the operating
                                                                                 income (%)             cost (%)          over the same
                                                                                                                          period of last
                                                                                                                                 year
   South China                796,888              438,850            31 %               -22 %                 -28 %

   North China                202,802              158,423            11 %                43 %                 92 %                     -21

    East China                561,164              421,595            17 %               132 %                119 %

  Central China               236,541              179,783            16 %                20 %                 14 %

  Note 1: The gross margin is derived from income minus operating costs and business taxes and surcharges

  Note 2: Because the gross margin of the rigid demand products for carried-over projects is low in north China, and the added value
of amortization evaluation for Beijing Guangying Zhenyuan resulted in the decrease of the gross margin decrease of RMB 152
million, the gross margin declined greatly in north China.

  Year-on-year changes of the main financial data

                                                                                                                       Unit: RMB 10,000



                                            Full Text of 2015 Semiannual Report of China Merchants Property Development Co., Ltd.


                                                                       Increase and
      Items of financial                            December 31,
                                   June 30, 2015                         decrease                 Main cause of changes
              liabilities
                                                                           (±%)
Prepayment                               231,925           361,919            -36 %    Decrease of land prepayment

                                                                                       The increase of payable intercourse funds of
Other receivables                       1,309,421          894,186             46 %
                                                                                       joint ventures and associated companies

Short-term loans                           66,136          388,690            -83 %    Payment of short-term debt

                                                                                       The increase of the payable project funds
Notes payable                              13,584              4,734          187 %
                                                                                       settled with bills

                                                                                       The    payment         of     employees’       salaries
Payroll payable                            22,855           39,875            -43 %
                                                                                       un-accrued at the end of last year

Tax payable                              137,932           313,369            -56 %    The payment of unpaid taxes

Interests payable                          30,595           19,214             59 %    Increase of borrowings

Non-current liabilities due                                                            The increase of long-term bank loans due
                                         879,100           597,010             47 %
within one year                                                                        within one year

                                                                                       Issuing   the     medium         term      notes      and
Bonds payable                            542,823           301,808             80 %
                                                                                       convertible bonds

                                                                                       The increasing payables by transferring the
Long-term payables                       357,506            10,435          3,326 %
                                                                                       rights and interests of subsidiary companies

Deferred          income     tax                                                       The fair-value adjustment of assets by
                                           43,387              3,582        1,111 %
liabilities                                                                            corporate merger
                                   January - June   January - June     Increase and
   Items of profit or loss                                                                        Main cause of changes
                                             2015             2014     decrease(±%)
Financial expenses                         45,574           32,610             40 %    Year-on-year increase of interest expense

Assets impairment losses                     -122                89          -237 %    The reversal of bad debt provision

                                                                                       The    original      holding      shares      shall    be
                                                                                       remeasured at the fair value on the date of
Investment income                          49,311           14,332            244 %
                                                                                       the   changes     of        control   right     of    the
                                                                                       newly-added subsidiary companies.
                                   January - June   January - June     Increase and
      Cash flow items                                                                             Main cause of changes
                                             2015             2014     decrease(±%)
Sub-total of cash inflows                                                              Consolidation of newly-added subsidiaries'
                                           69,561              2,059        3,278 %
from investing activities                                                              cash at the beginning of period

Sub-total of cash outflows                                                             The increasing investment spending of joint
                                           49,632              8,627          475 %
from investing activities                                                              ventures and associated enterprises

                                                                                       The increased net cash of investment
Net     cash        flows   from
                                           19,929           -6,568            403 %    subsidiaries is greater than the increased
investing activities
                                                                                       investment spending

Sub-total of cash inflows
                                        1,719,393          997,697             72 %    The increase of bank loans and bonds
from financing activities



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Net    cash    flows   from                                                     The year-on-year increase of bank loans and
                                    791,331          173,756           355 %
financing activities                                                            bonds are more than that of return loans


IV. Analysis of Core Competitiveness

      1. Strong China Merchants and more collaboration

      China Merchants Group owns a number of outstanding companies, including China Merchants Holdings
(International) Co., Ltd., China Merchants Ships Co., Ltd., China Merchants Roads Co., Ltd., China Merchants
Bank Co., Ltd., China Merchants Securities Co., Ltd., and China Merchants Capital for Direct Investment Fund
Management Platform. In recent years, China Merchants Group, specialized in industrial and financial field,
vigorously promotes the combination of industry and finance. Through the effective interaction between capital
and industry, it gives play to synergy benefits so as to develop by leaps and bounds. On the base that the Group
vigorously practiced the strategy of synergetic development and innovative development, the Company and
counterparts strived to exploit the opportunity of synergetic cooperation. So far, a solid strategic cooperation
alliance has been built in project cooperation, financial innovation, brand linkage, etc. In the future, the Company
will further strengthen industrial and financial combination to realize the resource sharing win-win situation and
mutual development.

      2. First-class capability of urban development, upgrading and operation

      Having been developed in Shekou for 30 years, China Merchants Shekou Industrial Zone has become an
excellent domestic park operator by accumulating abundant experiences and capabilities in first-class
development, operation and upgrading of parks. The experiences of \"30 years and 30 cities\" in property
development and operation enable the CMPD y to become a leading company of comprehensive development of
property. In effective combination with such experiences, the Company has become a top service supplier in urban
development, upgrading and operation.

      3. Abundant property assets and land resources of FTA and FTA policy on try prior to implementation

      In December 2014, Qianhai & Shekou area was officially designated as Guangdong FTA. In July 2015, the
Construction Implementation Plan on China (Guangdong) Pilot FTA was formally issued, proposing to give
priority to developing the strategic emerging service industries such as finance, modern logistics, information
service and technology service in    Qianhai & Shekou area, and build an experimental and demonstrative window
for Chinese financial industry open to the world, an important base of world service trade and an international hub
port. As the largest main body of development and construction in the Qianhai & Shekou FTA, the Company and
China Merchants Shekou possess plenty of business assets in Qianhai & Shekou, covering the office buildings,
shopping malls, apartments, factories, etc. ensuring the possession of stable operation and management income, as
well as the asset appreciation generated by the development of FTA. The Company will comply with the FTA
policy advantage to reasonably plan the development pace of the plenty of land resources to be developed in the
FTA (except as the properties which have been constructed) and industry development path, realizing the
innovation and promotion of a multi-level value.


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V. Analysis of Investment Situations

1. Foreign equity investment

(1) External investment

     The Company holds 3,646,889,329 outstanding shares of China Merchants Land Limited(CMLL)(0978.HK),
the holding subsidiary of the Company, without holding shares of other listed companies.


(2) Equity of financial enterprise held

     Not applicable

(3) Security investment

     Not applicable

2. Consigned financing, investment in derivatives and consignment loan

(1) Status of consigned financing

     Not applicable

(2) Investment in derivatives

     Not applicable

(3) Status of consignment loan

     Not applicable

3. Utilization of raised fund

    Within five years as of June 30, 2015, the Company has no fund-raising situations by publicly issuing shares.


4. Analysis of main subsidiaries and equity participation companies

                                                                                                                    Unit: RMB 10,000

  Company          Type of      Industr        Main         Registere     Total            Net       Operatin    Operatin       Net
    name          enterpris        y        product or      d capital     assets       assets        g incomes      g profit   profit
                       e                      service
China              Subsidiar      Real      Commercia         300,000    2,463,72      1,152,19        163,041        73,548   58,19
Merchants              y         estate     l residential                          6             7
(Shenzhen)                                   building
Property


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Development
Co., Ltd.

China              Subsidiar   Real       Commercia         20,000     915,080     282,756       59,216       37,358    28,02
Merchants             y        estate     l residential
Property                                   building
Investment
Co., Ltd.

China              Subsidiar   Public       Power            5,700     371,128     149,199       30,976        6,564    4,413
Merchants             y        utility     supply in
(Shenzhen)                                  the park
Power Supply
Co., Ltd.

Shanghai           Subsidiar   Real       Commercia          3,000     175,919      64,973      129,297       49,519    37,16
Fengyang Real         y        estate     l residential
Estate                                     building
Development
Co., Ltd.

Guangzhou          Subsidiar   Real       Commercia         10,000     265,566      31,017       88,347       25,552    19,23
Wanshang Real         y        estate     l residential
Estate Co., Ltd.                           building

Fujian             Subsidiar   Real       Commercia          5,000     233,338      69,103      102,448       38,615    28,99
Zhonglianshen         y        estate     l residential
g Real Estate                              building
Co., Ltd.

China              Subsidiar   Real       Commercia         20,000    1,030,88      94,585       62,277       29,572    22,27
Merchants             y        estate     l residential                      9
(Guangzhou)                                building
Property
Development
Co., Ltd.

Beijing            Subsidiar   Real       Commercia          1,515     436,204      22,250       72,473       23,102    17,46
Guangying             y        estate     l residential
Residential                                building
Property
Development
Limited

China              Subsidiar   Real       Commercia          3,000      36,076      20,985      147,578       27,123    21,18
Merchants             y        estate     l residential
(Suzhou)                                   building
Magnificent
House
Development



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Co., Ltd.

Shanghai    CM       Subsidiar       Real       Commercia             3,000       52,228     20,997           72,090       18,209    13,66
Hongfa                   y          estate      l residential
Property    Co.,                                 building
Ltd.


5. Description of key projects not invested by the raised fund

 (1) Equity investment
 During the reported period, there were 13 newly increased real estate project subsidiaries; the newly increased investment amount is
RMB 971,360,000; the investment situations are as follows:
                                                                                                                         Unit: RMB 10,000

                                                                          Proportion of
                                                                                               Actual
                                                          Registered          rights and
               Company name                                                                  investment                Business scope
                                                            capital           interests of
                                                                                               amount
                                                                          the Company
Xiamen Jinghucheng Real Estate Development
                                                                10,000                95 %            9,500     Real estate development
Co., Ltd.

Beijing     Guangying        Residential     Property
                                                                 1,515                34 %             515      Real estate development
Development Limited

China Merchants (Shanghai) Baoxin Property
                                                                 6,000                51 %            3,060     Real estate development
Co., Ltd.

China Merchants (Suzhou) Ruiying Property
                                                                40,000                51 %        20,400        Real estate development
Development Co., Ltd.

China Merchants (Suzhou) Mancheng Property
                                                                 3,000               100 %            3,000     Real estate development
Development Co., Ltd.

China Merchants (Chongqing) Yicheng Property
                                                                 2,700               100 %            2,700     Real estate development
Development Co., Ltd.

China Merchants (Chengdu) Boshi Property
                                                                40,000                51 %        20,400        Real estate development
Development Co., Ltd.

Shenzhen       Zhaopingruisheng            Investment
                                                                20,000                51 %        10,200        Investment in industry
Holdings Co., Ltd.

Xiamen Zhaogang Real Estate Development Co.,
                                                                 1,000                60 %             600      Real estate development
Ltd.

Foshan Evian Guanyuan Property Development
                                                                 1,050               100 %            1,050     Real estate development
Co., Ltd.

Nanjing Zhaopinglisheng Investment Co., Ltd.                    10,000                51 %            5,100     Investment in industry

China Merchants (Nanjing) Zhaosheng Property
                                                                20,000               100 %        20,000        Real estate development
Development Co., Ltd.




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Tiansheng investment co., LTD                            USD 100               100 %                611    Investment in industry

 (2) During the reported period, accumulated investments of major projects are as follows:
                                                                                                                    Unit: RMB 10,000

                                        Investment      Accumulated
                      Total planned       amount        input amount
 Project name          investment        during the     as of the end         Project progress                 Project earnings
                         amount          reporting      of reporting
                                           period          period
Shenzhen
Imperial     Park            886,837          22,885          310,159    Main body construction           Not yet carried over
Phase I

Shenzhen
Pingshan Garden              302,634          15,642          245,480    Main body construction           Not yet carried over
City

                                                                         Zone I, II, IV and V have
                                                                                                          Gross margin in this period
Shenzhen    Yihai                                                        been completed and the
                             735,678          25,576          452,418                                     has reached RMB -178.87
City                                                                     main body of Zone III and
                                                                                                          million
                                                                         VI is under construction.

Jingshan     The                                                                                          Gross margin in this period
Ninth            in          292,370           4,515          231,625    Completed                        has reached RMB 514.29
Shenzhen                                                                                                  million

                                                                                                          Gross margin in this period
Shenzhen Jinxiu
                             107,117           1,630           83,569    Completed                        has reached RMB 31.47
Kwun Town
                                                                                                          million

                                                                         Phase-IV and Phase-VIII
                                                                                                          Gross margin in this period
Guangzhou                                                                have been completed, and
                             398,447          15,918          377,007                                     has reached RMB 256.02
Jinshan Valley                                                           the main bodies of the rest
                                                                                                          million
                                                                         are under construction.

                                                                         Phase-I       has         been
                                                                         completed; part of Phase-II      Gross margin in this period
Donghuicheng in
                             289,176           7,476          188,702    has been completed; the          has reached RMB 258.75
Guangzhou
                                                                         main body of Phase-III is        million
                                                                         under construction.

Foshan Park 1872             241,783           8,896          179,506    Main body construction           Not yet carried over

Evian Riviera in
                             226,175           8,224          132,610    Main body construction           Not yet carried over
Foshan

Foshan      Evian
                             199,561           7,068          120,097    Main body construction           Not yet carried over
Kingbay

Foshan      Evian                                                        Main body construction of
                             135,468           6,871           63,624                                     Not yet carried over
Mansion                                                                  Phase-I




                                 Full Text of 2015 Semiannual Report of China Merchants Property Development Co., Ltd.


Evian
International     in    89,261       5,406          46,698    Main body construction         Not yet carried over
Foshan

                                                                                             Gross margin in this period
Evian       Buena                                             Phase-I and Phase-II have
                       206,677       7,382         164,632                                   has reached RMB 12.49
Vista in Foshan                                               been completed.
                                                                                             million

Foshan      Evian
                       205,315       6,108          82,840    Main body construction         Not yet carried over
Property Center

                                                              Phase-I         has     been
                                                              completed; part of Phase-II    Gross margin in this period
Zhangzhou
                       349,353      17,870         189,537    has been completed; the        has reached RMB 125.26
Cadaques
                                                              main body of Phase-III is      million
                                                              under construction.

                                                                                             Gross margin in this period
Xiamen          Hyde
                       233,354       7,457         221,442    Completed                      has reached RMB 42.89
Park
                                                                                             million

                                                              Phase-I and Phase-II have
                                                                                             Gross margin in this period
Xiamen Sea May                                                been completed, and the
                       256,949       7,422         205,716                                   has reached RMB 383.75
Flower                                                        main body of Phase-III is
                                                                                             million
                                                              under construction.

                                                              Phase-I to Phase-III have
Beijing Xicheng                                                                              Gross margin in this period
                                                              been completed, and the
Homeland         and   507,456      12,154         405,559                                   has   reached RMB      13.6
                                                              main body of Phase-IV is
Longyuan                                                                                     million
                                                              under construction.

                                                                                             Gross margin in this period
Beijing Park 1872      448,505       7,177         393,633    Completed                      has reached RMB 73.33
                                                                                             million

                                                              Phase-I         has     been
                                                                                             Gross margin in this period
Tianjin    Beacon                                             completed, and the main
                       512,700      23,435         295,737                                   has reached RMB -6.16
Hill                                                          body of Phase-II is under
                                                                                             million
                                                              construction.

                                                                                             Gross margin in this period
Tianjin Diamond                                               Phase-I to Phase-V have
                       359,494       9,141         338,331                                   has   reached RMB      4.94
Hill                                                          been completed
                                                                                             million

                                                              Phase-I         has     been
                                                                                             Gross margin in this period
Tianjin     Evian                                             completed, and the main
                        41,757       9,133          48,694                                   has reached RMB 24.52
County                                                        body of Phase-II is under
                                                                                             million
                                                              construction.

Beacon Hill in                                                Main body construction of
                       975,539      11,794         304,133                                   Not yet carried over
Harbin                                                        Phase-I and Phase -II





                                Full Text of 2015 Semiannual Report of China Merchants Property Development Co., Ltd.


                                                             Phase-I         has   been
                                                                                          Gross margin in this period
Harbin      Notting                                          completed, and the main
                      311,787      15,676         180,329                                 has reached RMB -3.72
Hill                                                         body of Phase-II is under
                                                                                          million
                                                             construction.

Orchid Valley in
                      128,518       8,417          87,742    Main body construction       Not yet carried over
Dalian

                                                             Phase-I         has   been
                                                                                          Gross margin in this period
Qingdao       Hyde                                           completed, and the main
                       45,201       6,056          43,560                                 has reached RMB 34.07
Garden                                                       body of Phase-II is under
                                                                                          million
                                                             construction.

                                                             Phase-I         has   been
                                                                                          Gross margin in this period
Qingdao LAVIE                                                completed, and the main
                      140,367       4,745          98,664                                 has   reached   RMB    7.87
Commune                                                      body of Phase-II is under
                                                                                          million
                                                             construction.

Maerbeila        of
                      308,068       4,646         147,374    Main body construction       Not yet carried over
Yantai Merchants

Rizhao       Leyden                                          Main body construction of
                      493,351       9,918         193,880                                 Not yet carried over
Town                                                         Phase-I

                                                                                          Gross margin in this period
Head Garden in
                      187,254      12,491         122,094    Main body construction       has       reached      RMB
Shanghai
                                                                                          494,820,000

                                                             Phase-I and Phase-II have
Shanghai                                                                                  Gross margin in this period
                                                             been completed, and the
Sheshan               308,041      10,871         289,854                                 has reached RMB -39.59
                                                             main body of Phase-III is
Longyuan                                                                                  million
                                                             under construction.

China Merchants
                                                                                          Gross margin in this period
Haiting          in   166,326       7,322         160,019    Completed
                                                                                          has reached RMB 530,000
Shanghai

Magnificent                                                                               Gross margin in this period
Times            in   146,328       5,498         133,428    Completed                    has reached RMB 184.62
Shanghai                                                                                  million

                                                             Phase-I         has   been
Suzhou                                                                                    Gross margin in this period
                                                             completed, and the main
Magnificent           148,119       6,435         129,879                                 has reached RMB 276.22
                                                             body of Phase-II is under
House                                                                                     million
                                                             construction.

                                                             Phase-I to Phase-VII have
                                                             been completed, and the      Gross margin in this period
Suzhou        Small
                      485,432      22,970         456,602    main bodies of Phase-VIII    has reached RMB 17.69
Stone City
                                                             and Phase-IX are under       million
                                                             construction.





                                   Full Text of 2015 Semiannual Report of China Merchants Property Development Co., Ltd.


                                                                Phase-I         has   been
                                                                                              Gross margin in this period
                                                                completed, and the main
Suzhou Yishanjun        174,038       22,556         128,934                                  has reached RMB 68.79
                                                                body of Phase-II is under
                                                                                              million
                                                                construction.

Suzhou        Evian
                        162,401       14,343         117,990    Main body construction        Not yet carried over
Riviera

                                                                                              Gross margin in this period
Changzhou                                                       Phase-I         has   been
                        300,031       15,564         134,191                                  has reached RMB 46.07
Garden City                                                     completed.
                                                                                              million

Nanjing
Magnificent             335,945       11,056         264,658    Main body construction        Not yet carried over
House

                                                                Phase-I and Phase-II have
                                                                                              Gross margin in this period
Throne    Bay     in                                            been completed, and the
                        621,044       18,601         478,900                                  has reached RMB -4.92
Zhenjiang                                                       main body of Phase-III is
                                                                                              million
                                                                under construction.

Wuhan Jiangwan
                        358,575       11,957         186,638    Main body construction        Not yet carried over
International

Moshui        Lake,
                        923,480       32,069         476,759    Main body construction        Not yet carried over
Wuhan

Wuhan                                                                                         Gross margin in this period
Magnificent              99,183           62          95,356    Completed                     has   reached RMB      8.59
House                                                                                         million

Evian Uptown in                                                 Main body construction of
                        425,234        7,912         100,864                                  Not yet carried over
Chengdu                                                         Phase-I

Magnificent                                                                                   Gross margin in this period
House             in    275,371        5,711         298,615    Completed                     has   reached RMB      71.8
Chengdu                                                                                       million

                                                                Phase-I         has   been
                                                                completed, and the main       Gross margin in this period
Chongqing Land
                       1,281,749      20,247         525,918    bodies of Phase-II and        has reached RMB -10.59
Mark Riverside
                                                                Phase-III       are   under   million
                                                                construction.

Chongqing Evian
                        333,988       13,491         135,103    Main body construction        Not yet carried over
Bay

Chongqing       Park                                            Main body construction of
                       1,179,807       8,257         421,278                                  Not yet carried over
Avenue                                                          Phase-I

                                                                Phase-I         has   been    Gross margin in this period
Chongqing
                        425,195       16,131         305,019    completed; part of Phase-II   has reached RMB 87.93
Garden City
                                                                has been completed; the       million




                                           Full Text of 2015 Semiannual Report of China Merchants Property Development Co., Ltd.


                                                                          main body of Phase-III is
                                                                          under construction.

                                                                          Zone A has been completed        Gross margin in this period
Bijie Garden City            280,578          23,659            140,935   and   Zone      B   is   under   has reached RMB 76.76
                                                                          construction.                    million

Kunming        Sea
                             320,099          17,694             66,428   Main body construction           Not yet carried over
Club House


VI. Explanation of the Board of Directors and Board of Supervisors on the Non-standard
Audit Report\" for reporting period by the accounting firm

      Not applicable

VII. Description of the Board of Directors on the \"Non-standard Audit Report\" of the
Previous Year

      Not applicable

VIII. Performance of Profit Distribution during Reporting Period

      The Company held the annual general meeting of stockholders of 2014 on May 7, 2015, approving the 2014 profit

distribution plan:

      The statutory surplus reserve of RMB 112,712,864.73 is withdrawn based on 10% of the net profit of RMB

1,127,128,647.31 of the parent company;

     Based on total equity stock of 2,575,950,754 at the end of the year, paying out RMB 3.20 cash dividend (including tax) per 10

shares, that is, paying out RMB 824,304,241.28 cash dividend.

     The remaining undistributed profit RMB 4,797,962,659.92 was carried over to the next year;

      The Company was not going to conduct capital stock increasing from public reserve funds in this year.

      Details are contained in the Announcement on Implementation of 2014 Profit Distribution Plan published in China

Securities Journal, Securities Times, Shanghai Securities News, Securities Daily, Hong Kong Commercial Daily and CNINFO

(http://www.cninfo.com.cn) by the Company on May 15, 2015. Until the report disclosure date, the above plan of

dividend distribution has been completed.


IX. Proposal for profit distribution and for converting capital reserve to share capital for the
reporting period

      The Company will not distribute profits and covert capital reserves for share capitals in the middle of 2015.



                                       Full Text of 2015 Semiannual Report of China Merchants Property Development Co., Ltd.


X. Registration form of reception of research, communication, interview, etc. during the
reporting period

                                                              Category of                                  Main discussion points and
  Reception time    Reception place     Reception way                              Reception object
                                                            reception object                                  information provided

                                                                                  INDUSTRIAL
                                                                                  SECURITIES,
                                      Telephone
January 04, 2015   Shenzhen                               Institution investors Haitong Securities,
                                      communication
                                                                                  Pacific   Insurance,
                                                                                  New China Asset

                                                                                  Zeal            Asset
January 05, 2015   Shenzhen           Field research      Institution investors                           ① Introduction of the
                                                                                  Management
                                                                                                          business condition of the
                                      Telephone
January 06, 2015   Shenzhen                               Individual investors Individual investors Company; ② Discussion on
                                      communication                                                 industrial development; ③
                                      Telephone                                                           Provision of declared
January 06, 2015   Shenzhen                               Institution investors Orient Securities
                                      communication                                                       information and the project
                                                                                                          brochure of the Company;
                                                                                  Citic-prudential
                                                                                  Fund,    PINGAN ④ Visit to the on-sale
January 07, 2015   Shenzhen           Field research      Institution investors Securities, Ping An buildings of the Company
                                                                                of China Asset and provision of sales
                                                                                  Management              brochure.

                                                                                  Ping An of China
                                      Telephone
January 08, 2015   Shenzhen                               Institution investors Asset Management,
                                      communication
                                                                                  GF Securities

                                      Telephone
January 09, 2015   Shenzhen                               Individual investors Individual investors
                                      communication

                                                                                  SHENYIN            &
                                      Telephone                                   WANGUO
January 11, 2015   Shenzhen                               Institution investors
                                      communication                               SECURITIES,
                                                                                  BOSERA FUNDS

                                      Telephone
January 12, 2015   Shenzhen                               Institution investors GF Securities
                                      communication

January 13, 2015   Shenzhen           Strategic Meeting   Institution investors Guosen Securities

January 14, 2015   Beijing            Strategic Meeting   Institution investors Deutsche Bank AG

January 14, 2015   Shanghai           Strategic Meeting   Institution investors UBS Securities

                                                                                  SINOLINK
January 15, 2015   Shenzhen           Strategic Meeting   Institution investors
                                                                                  SECURITIES

                                      Telephone
January 15, 2015   Shenzhen                               Individual investors Individual investors
                                      communication

January 16, 2015   Chongqing          Field research      Institution investors Deutsche Bank AG



                               Full Text of 2015 Semiannual Report of China Merchants Property Development Co., Ltd.


                                                                        CITIC    Securities,
                              Telephone
January 16, 2015   Shenzhen                     Institution investors SINOLINK
                              communication
                                                                        SECURITIES

                              Telephone
January 19, 2015   Shenzhen                     Individual investors Individual investors
                              communication

                                                                        HUA
January 21, 2015   Shenzhen   Field research    Institution investors
                                                                        INSURANCE, etc.

                              Telephone                                 Credit         Suisse
January 22, 2015   Shenzhen                     Institution investors
                              communication                             Founder Securities

                                                                        BOCI     Securities,
                                                                        CHINA
January 23, 2015   Shenzhen   Field research    Institution investors MERCHANTS
                                                                        FUND, AIA China,
                                                                        China AMC

                              Telephone                                 First        Shanghai
January 23, 2015   Shenzhen                     Institution investors
                              communication                             Securities

January 26, 2015   Shenzhen   Field research    Institution investors China AMC

                              Telephone
January 27, 2015   Shenzhen                     Individual investors Individual investors
                              communication

                                                                        SHENWAN
January 28, 2015   Shenzhen   Field research    Institution investors HONGYUAN
                                                                        SECURITIES

                              Telephone
January 29, 2015   Shenzhen                     Individual investors Individual investors
                              communication

                              Telephone
January 29, 2015   Shenzhen                     Institution investors Libang Investment
                              communication

                              Telephone
February 04, 2015 Shenzhen                      Individual investors Individual investors
                              communication

February 05, 2015 Shenzhen    Field research    Institution investors Galaxy Securities

                              Telephone                                 Orient   Securities,
February 09, 2015 Shenzhen                      Institution investors
                              communication                             GF Securities

                              Telephone                                 China    Investment
February 11, 2015 Shenzhen                      Institution investors
                              communication                             Securities

                              Telephone
February 13, 2015 Shenzhen                      Individual investors Individual investors
                              communication

                              Telephone
February 25, 2015 Shenzhen                      Institution investors GF Securities
                              communication

                              Telephone                                 Ping An of China
February 26, 2015 Shenzhen                      Institution investors
                              communication                             Asset Management



                              Full Text of 2015 Semiannual Report of China Merchants Property Development Co., Ltd.


                             Telephone
February 28, 2015 Shenzhen                       Individual investors Individual investors
                             communication

                             Telephone
February 28, 2015 Shenzhen                       Institution investors Kingdon Capital
                             communication

                             Telephone
March 02, 2015   Shenzhen                        Institution investors GF Securities
                             communication

                             Telephone
March 03, 2015   Shenzhen                        Individual investors Individual investors
                             communication

                                                                         Shenwan
                                                                         Hongyuan
                                                                         Securities,   CICC,
                             Telephone
March 09, 2015   Shenzhen                        Institution investors Pingan      Securities,
                             communication
                                                                         China         Galaxy
                                                                         Securities,        and
                                                                         Haitong Securities

                                                                         GF        Securities,
                             Telephone                                   Galaxy Securities,
March 10, 2015   Shenzhen                        Institution investors
                             communication                               Guotai         Junan
                                                                         Securities, etc.

                             Telephone                                   Pacific        Asset
March 10, 2015   Shenzhen                        Institution investors
                             communication                               Management

                             Telephone
March 10, 2015   Shenzhen                        Individual investors Individual investors
                             communication

                             Telephone
March 11, 2015   Shenzhen                        Individual investors Individual investors
                             communication

                                                                         PINGAN Securities
March 12, 2015   Beijing     Strategic Meeting   Institution investors
                                                                         etc.

                             Telephone
March 12, 2015   Shenzhen                        Individual investors Individual investors
                             communication

                             Telephone
March 13, 2015   Shenzhen                        Individual investors Individual investors
                             communication

                             Telephone
March 13, 2015   Shenzhen                        Institution investors Yuanta Securities
                             communication

                                                                         China     Merchants
                                                                         Securities, Telligent
March 16, 2015   Shenzhen    Field research      Institution investors
                                                                         Capital
                                                                         Management

                             Telephone
March 17, 2015   Shenzhen                        Individual investors Individual investors
                             communication

March 17, 2015   Shenzhen    Telephone           Institution investors Pacific          Asset



                             Full Text of 2015 Semiannual Report of China Merchants Property Development Co., Ltd.


                            communication                             Management

                            Telephone
March 18, 2015   Shenzhen                     Institution investors GTJA
                            communication

                            Telephone
March 22, 2015   Shenzhen                     Individual investors Individual investors
                            communication

                            Telephone
March 23, 2015   Shenzhen                     Institution investors GTJA
                            communication

March 24, 2015   Shenzhen   Field research    Institution investors Shinhan Investment

                                                                      China     Securities,
                                                                      China           AMC,
March 25, 2015   Shenzhen   Field research    Institution investors Huatai             Asset
                                                                      Management         and
                                                                      GR Asset

                            Telephone
March 25, 2015   Shenzhen                     Institution investors GF Securities
                            communication

                            Telephone
March 25, 2015   Shenzhen                     Individual investors Individual investors
                            communication

March 27, 2015   Shenzhen   Field research    Institution investors Huatai Securities

                            Telephone
March 30, 2015   Shenzhen                     Individual investors Individual investors
                            communication

March 31, 2015   Shenzhen   Field research    Institution investors Samsung Securities

                                                                      Shenwan
                            Telephone                                 Hongyuan
March 31, 2015   Shenzhen                     Institution investors
                            communication                             Securities,    Yuanta
                                                                      Securities

                            Telephone
March 31, 2015   Shenzhen                     Individual investors Individual investors
                            communication

                            Telephone                                 CICC,          Pingan
April 01, 2015   Shenzhen                     Institution investors
                            communication                             Securities

                            Telephone
April 01, 2015   Shenzhen                     Individual investors Individual investors
                            communication

                                                                      China           AMC,
                                                                      Galaxy Securities,
                                                                      CICC,        Industrial
                                                                      Securities,        GF
                            Telephone
April 02, 2015   Shenzhen                     Institution investors Securities,       Orient
                            communication
                                                                      Securities,    Guotai
                                                                      Junan     Securities,
                                                                      CITICS, Shenwan
                                                                      Hongyuan



                             Full Text of 2015 Semiannual Report of China Merchants Property Development Co., Ltd.


                                                                      Securities, Haitong
                                                                      Securities,    Pingan
                                                                      Securities,    China
                                                                      Investment
                                                                      Securities

                                                                      Jefferies,     Credit
                            Telephone
April 03, 2015   Shenzhen                     Institution investors Suisse          Founder
                            communication
                                                                      Securities

                            Telephone
April 03, 2015   Shenzhen                     Individual investors Individual investors
                            communication

                            Telephone
April 07, 2015   Shenzhen                     Individual investors Individual investors
                            communication

                                                                      Pacific         Asset
                            Telephone                                 Management, Ping
April 07, 2015   Shenzhen                     Institution investors
                            communication                             An              Asset
                                                                      Management

                            Telephone
April 08, 2015   Shenzhen                     Individual investors Individual investors
                            communication

                            Telephone
April 09, 2015   Shenzhen                     Individual investors Individual investors
                            communication

                            Telephone
April 09, 2015   Shenzhen                     Institution investors GF Securities
                            communication

                            Telephone
April 10, 2015   Shenzhen                     Individual investors Individual investors
                            communication

                            Telephone
April 13, 2015   Shenzhen                     Individual investors Individual investors
                            communication

                            Telephone
April 14, 2015   Shenzhen                     Individual investors Individual investors
                            communication

                            Telephone
April 15, 2015   Shenzhen                     Individual investors Individual investors
                            communication

                            Telephone
April 16, 2015   Shenzhen                     Individual investors Individual investors
                            communication

                            Telephone
April 17, 2015   Shenzhen                     Individual investors Individual investors
                            communication

                            Telephone
April 20, 2015   Shenzhen                     Individual investors Individual investors
                            communication

                            Telephone
April 21, 2015   Shenzhen                     Individual investors Individual investors
                            communication

April 22, 2015   Shenzhen   Telephone         Individual investors Individual investors




                              Full Text of 2015 Semiannual Report of China Merchants Property Development Co., Ltd.


                             communication

                             Telephone
April 23, 2015   Shenzhen                        Individual investors Individual investors
                             communication

                             Telephone
April 24, 2015   Shenzhen                        Individual investors Individual investors
                             communication

                                                                         Guotai         Junan
                             Telephone                                   Securities,
April 27, 2015   Shenzhen                        Institution investors
                             communication                               Industrial
                                                                         Securities

                             Telephone
April 28, 2015   Shenzhen                        Individual investors Individual investors
                             communication

                             Telephone
April 29, 2015   Shenzhen                        Individual investors Individual investors
                             communication

                                                                         UBS        Securities,
April 30, 2015   Hong Kong   Strategic Meeting   Institution investors
                                                                         etc.

                             Telephone
May 04, 2015     Shenzhen                        Individual investors Individual investors
                             communication

                             Telephone
May 05, 2015     Shenzhen                        Individual investors Individual investors
                             communication

May 06, 2015     Nanning     Field research      Institution investors Gao Hua Securities

                             Telephone
May 06, 2015     Shenzhen                        Individual investors Individual investors
                             communication

May 07, 2015     Shenzhen    Field research      Institution investors Credit Suisse

                             Telephone
May 07, 2015     Shenzhen                        Individual investors Individual investors
                             communication

May 08, 2015     Hong Kong   Strategic Meeting   Institution investors Citi, etc.

                             Telephone
May 10, 2015     Shenzhen                        Individual investors Individual investors
                             communication

                             Telephone
May 11, 2015     Shenzhen                        Individual investors Individual investors
                             communication

                             Telephone
May 12, 2015     Shenzhen                        Individual investors Individual investors
                             communication

                             Telephone
May 13, 2015     Shenzhen                        Individual investors Individual investors
                             communication

                             Telephone
May 14, 2015     Shenzhen                        Individual investors Individual investors
                             communication

                             Telephone
May 14, 2015     Shenzhen                        Institution investors GF Securities
                             communication




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                           Telephone
May 15, 2015    Shenzhen                       Individual investors Individual investors
                           communication

                           Telephone
May 18, 2015    Shenzhen                       Individual investors Individual investors
                           communication

                           Telephone
May 19, 2015    Shenzhen                       Individual investors Individual investors
                           communication

                           Telephone
May 20, 2015    Shenzhen                       Individual investors Individual investors
                           communication

                           Telephone
May 20, 2015    Shenzhen                       Institution investors GTJA
                           communication

                           Telephone
May 21, 2015    Shenzhen                       Individual investors Individual investors
                           communication

                           Telephone
May 22, 2015    Shenzhen                       Individual investors Individual investors
                           communication

                           Telephone
May 25, 2015    Shenzhen                       Individual investors Individual investors
                           communication

                           Telephone
May 26, 2015    Shenzhen                       Individual investors Individual investors
                           communication

                           Telephone
May 27, 2015    Shenzhen                       Individual investors Individual investors
                           communication

                           Telephone
May 28, 2015    Shenzhen                       Individual investors Individual investors
                           communication

                                                                       Morgan   Stanley,
May 29, 2015    Beijing    Strategic Meeting   Institution investors
                                                                       etc.

                           Telephone
June 01, 2015   Shenzhen                       Individual investors Individual investors
                           communication

                           Telephone
June 02, 2015   Shenzhen                       Individual investors Individual investors
                           communication

                           Telephone
June 03, 2015   Shenzhen                       Individual investors Individual investors
                           communication

                           Telephone
June 04, 2015   Shenzhen                       Individual investors Individual investors
                           communication

                           Telephone
June 05, 2015   Shenzhen                       Individual investors Individual investors
                           communication

                           Telephone
June 08, 2015   Shenzhen                       Individual investors Individual investors
                           communication

                           Telephone
June 09, 2015   Shenzhen                       Individual investors Individual investors
                           communication





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                            Telephone
June 10, 2015   Shenzhen                        Individual investors Individual investors
                            communication

                            Telephone
June 11, 2015   Shenzhen                        Individual investors Individual investors
                            communication

                            Telephone
June 12, 2015   Shenzhen                        Individual investors Individual investors
                            communication

                            Telephone
June 15, 2015   Shenzhen                        Individual investors Individual investors
                            communication

                            Telephone
June 16, 2015   Shenzhen                        Individual investors Individual investors
                            communication

                            Telephone
June 17, 2015   Shenzhen                        Individual investors Individual investors
                            communication

                            Telephone
June 18, 2015   Shenzhen                        Individual investors Individual investors
                            communication

                            Telephone
June 19, 2015   Shenzhen                        Individual investors Individual investors
                            communication

                            Telephone
June 22, 2015   Shenzhen                        Individual investors Individual investors
                            communication

                            Telephone
June 23, 2015   Shenzhen                        Individual investors Individual investors
                            communication

                            Telephone
June 24, 2015   Shenzhen                        Individual investors Individual investors
                            communication

                            Telephone
June 25, 2015   Shenzhen                        Individual investors Individual investors
                            communication

June 26, 2015   Hong Kong   Strategic Meeting   Institution investors Citigroup, etc.

                            Telephone
June 26, 2015   Shenzhen                        Individual investors Individual investors
                            communication

                            Telephone
June 29, 2015   Shenzhen                        Individual investors Individual investors
                            communication

                            Telephone
June 30, 2015   Shenzhen                        Individual investors Individual investors
                            communication





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                                    Section Five Important Events

(I) Corporate governance

     In compliance with the Company Law, Securities Law and other securities regulations, the Company

constantly improves the corporate governance and internal control system, deeply carries out governance activities

and promotes its governance level. Based on the favorable corporate governance, the Company establishes a trust

and win-win relationship with a large number of investors.

     During reporting period, the holding shareholders and actual controller of company strictly fulfill their

commitments all the time and support the sound development of company.

     The corporate governance structure is sound; and the General Meeting of Stockholders, Board of Directors

and Board of Supervisors are in the standardized operation and perform function and power in accordance with

stipulations of laws and regulations as well as Articles of Association of company.

    The Company discloses information timely and fairly in strict compliance with the principle of disclosing authentic,

accurate and complete information. Awarded the title of excellent company in assessment of information disclosure of 2014

(Class A) by Shenzhen Stock Exchange, the Company adheres to linkage of the information disclosure of CMLL (0978.HK),

ensuring the timely access to and consistency of the information of investors from Shenzhen and Hong Kong market.


II. Major lawsuit and arbitration

     The Company was free from significant lawsuit and arbitration during reported period.

III. Query from the media

     The Company was free from media query during reported period.

IV. Bankruptcy reorganization

     Not applicable

V. Asset transactions

1. Purchase of assets

     Not applicable



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2. Sales condition of assets

      Not applicable

3. Combination of enterprises

     On May 01, 2015, the Company obtained majority voting rights in the board of directors of Beijing
Guangying Residential Property Development Limited, thus having control over such company. The control right
was included into the consolidation scope of the consolidated statements after being altered.
     On June 30, 2015, the Company has control over Xiamen Jinghucheng Real Estate Development Co., Ltd.
by increasing capital and share.
     Details for the above consolidation matters are stated in the Notes to the Financial Statements \"VII. Change
in Consolidation Scope\".

VII. Implementation of stock option incentive and the impact

    On September 17, 2014, the Company conducted the 11th interim meeting of the 7th BOD in 2014 and the
22nd meeting of the 7th BOS, reviewed and adopted the Proposal on Change of Incentive Objects and Granting
Quantities for Plan of Initial Granting of Stock Options; the meeting also reviewed and adopted the Proposal on
Determination of Related Matters for Plan of Initial Granting of Stock Option, and the BOD determined to grant
23.2283 million shares of stock option to 143 incentive objects on September 18, 2014, with exercise price as
RMB11.24 /share.
     On December 12, 2014, the Company completed the registration of initial stock option granting, stock option
short name: China Merchants JLC1, Code: 037036.
     The exercise price of the stock option granted in the incentive plan was adjusted to RMB 10.92/share since
completion of equities distribution of 2014. So far, the Company has not yet executed rights during the first exercise
period of stock option.
    For details about stock option incentive plan, please see Notices on China Securities Journal, Securities Time,
Shanghai Securities News, Hong Kong Commercial Daily, Securities Daily and http://www.cninfo.com.cn/.

VII. Material related transactions

1. Related transaction related to normal operation

     During the reporting period, as approved by the 16th Meeting of the 7th Board of Directors, the Company
established the following leasing transaction with China Merchants Shekou:
    The Company and part of its subsidiaries in Shenzhen leases the land use right of operation sites from China
Merchants Shekou, with the total rental of RMB 3.7820 million for the reporting period, accounting for 13.09% of the amount
of similar transactions;   China Merchants Property Investment, a wholly-owned subsidiary of the Company, leases the land use right
and top head estates of the 1st, 2nd, 5th and 6th building of Property in Huajian area of Shekou (Shenzhen ) owned by China
Merchants Shekou, with the total rental of RMB 10.6544 million for the reporting period, accounting for 36.88 % of the amount of
similar transactions; China Merchants (Shenzhen) Property, a wholly-owned subsidiary of the Company, releases land use right and
superstructures estates of the 3rd building of Property in Huajian area of Shekou (Shenzhen ) owned by China Merchants Shekou,
with the total rental of RMB 2.6636 million for the reporting period, accounting for 9.22 % of the amount of similar transactions;



                                           Full Text of 2015 Semiannual Report of China Merchants Property Development Co., Ltd.


affiliated companies including China Merchants Shekou lease the rental properties including New Era Plaza of the Company with the
total rental of RMB 7.5995 million for the reporting period, accounting for 1.40 % of the amount of similar transactions.


2. Related transaction of asset acquisition and sale

     Not applicable

3. Important related transactions with joint investments

     Reviewed and approved on the 18th Interim meeting of the 7th BOD in 2014, China Merchants (Chengdu) Beihu Land Ltd.
(―China Merchants Beihu‖), China Merchants (Shenzhen) Property Investment Co., Ltd. and China Merchants Kunlun Capital Co.,
Ltd. (―China Merchants Kunlun‖), which are subsidiaries of the Company, jointly acquire 100 % shares rights and creditors’ rights of
all shareholders of Chengdu China MCC5 Wentou Land Ltd. As of the end of the reporting period, China Merchants Beihu, China
Merchants Property Investment and Ganzhou Yuankang Investment Partnership (hereinafter referred to as \"Ganzhou Yuankang\", the
executive partner of China Merchants Kunlun, in place of China Merchants Kunlun in project acquisitions upon establishment of the
Auction Consortium) have jointly acquired 100% equities and all creditor's rights of shareholders of Chengdu China MCC5 Wentou
Land Ltd., among which, China Merchants Beihu and China Merchants Investment respectively acquired 31% and 20% of the
equities and creditor's rights of shareholders of Chengdu China MCC5 Wentou Land Ltd. China Merchants Beihu and China
Merchants Property Investment pay a total of RMB 906 million with respect to such acquisition respectively as
per the equity ratio and the ratio of creditor's rights ratio. The Company and China Merchants Kunlun Capital Co.,
Ltd. are controlled by China Merchants Group and transactions stated above constitute related party transactions.

     Disclosure: For the detailed disclosure of the above said transaction, please refer to http://www.cninfo.com.cn.


4. Current associated rights of credit and liabilities

As of June 30, 2015, main current funds between the Company and related parties include:
                                                                                                                    Unit: RMB 10,000

                                                                                                         Beginn
                                                                                                                        i
                                                                                                                        n
                                                                                                                        g
                                                                                           Whether                                Balan
                                                                                           there is                 Amount        ce at
                                                                                                                       b
                                                          Category of                    non-operati                incurre        the
                                                                                                                       a
           Related party               Relationship       credits and       Reason            ng                    d in the      end of
                                                                                                                       l
                                                             debts                       occupation                 current        the
                                                                                                                       a
                                                                                         of funds or                 period       perio
                                                                                                                       n
                                                                                              not                                   d
                                                                                                                        c
                                                                                                                        e
                                                                                                         Balanc
                                                                                                                        e
China Ocean Shipping Agency                Under           Accounts         Current
                                                                                              No                -           821     821
Shenzhen                                  common           receivable       account




                                              Full Text of 2015 Semiannual Report of China Merchants Property Development Co., Ltd.


                                             ultimate
                                              control

Foshan Merchants Longyuan Real                                 Other        Current                                          67,36
                                           Joint venture                                    No          67,369          -
Estate Co., Ltd.                                            receivables     account

China Merchants Shekou Industrial          Controlling       Accounts       Current
                                                                                            No        255,394    -254,009    1,385
Zone Holdings Co., Ltd.                    shareholder        payable       account

                                              Under
China       Merchants        Zhangzhou       common                         Current                                          50,50
                                                           Other payables                   No          38,000     12,500
Development Zone Co., Ltd.                   ultimate                       account
                                              control

                                              Under
Shenzhen        China        Merchants       common                         Current                                          33,19
                                                           Other payables                   No          81,106    -47,916
Financial Service Co., Ltd.                  ultimate                       account
                                              control

                                              Under
Ganzhou       Yuankang       Investment      common                         Current                                          21,31
                                                           Other payables                   No               -     21,312
Partnership                                  ultimate                       account
                                              control

                                                                            Current                                          20,58
Shanghai Ledu Property Co., Ltd.            Associates     Other payables                   No          24,601     -4,019
                                                                            account

                                              Under
Dafeng       International     Limited       common                         Current                                          13,18
                                                           Other payables                   No          20,995     -7,808
Liability Company                            ultimate                       account
                                              control

Tianjin     Xinghai     Real     Estate                                     Current                                          10,60
                                            Associates     Other payables                   No          10,608          -
Development Co., Ltd.                                                       account

Shanghai New South Mountain                                                 Current
                                            Associates     Other payables                   No           4,488      4,125    8,613
Real Estate Development Co., Ltd.                                           account

                                           Non-controlli
ORIENTURE                HOLDINGS                                           Current
                                                ng         Other payables                   No               -      7,789    7,789
COMPANY LIMITED                                                             account
                                           shareholder

Tianjin     Munanqiushi       Industrial                                    Current
                                            Associates     Other payables                   No           1,700          -    1,700
Co., Ltd.                                                                   account

China Merchants Shekou Industrial          Controlling                      Current
                                                           Other payables                   No              16        267      283
Zone Holdings Co., Ltd.                    shareholder                      account

China Merchants Overseas Chinese                                            Current
                                            Associates     Other payables                   No          47,972    -47,972         -
Town                                                                        account



As of June 30, 2015, related parties have provided the following bank loan guarantees for the Company and the Company's
subsidiaries:(Unit: RMB)



                                       Full Text of 2015 Semiannual Report of China Merchants Property Development Co., Ltd.


            Names of related parties                   The guaranteed                            Amount of guarantee

Long-term loan guarantee

China Merchants Group Co., Ltd.          The Company                                       RMB                  5,500,000,000

China Merchants Shekou Industrial Zone
                                         The Company                                       RMB                  1,394,200,000
Co., Ltd.

China Merchants Shekou Industrial Zone China     Merchants       (Shenzhen)     Property
                                                                                           RMB                    500,000,000
Co., Ltd.                                Development Co., Ltd.

China Merchants Shekou Industrial Zone Wuhan Aoming Property Development Co.,
                                                                                           RMB                    287,000,000
Co., Ltd.                                Ltd.

China Merchants Shekou Industrial Zone Beijing Conrad Property Development Co.,
                                                                                           RMB                    105,560,000
Co., Ltd.                                Ltd.

China Merchants Shekou Industrial Zone Shenzhen        Shekou       Seaworld       Hotel
                                                                                           RMB                    230,300,000
Co., Ltd.                                Management Co., Ltd.

China Merchants Shekou Industrial Zone Shenzhen         Jinyurongtai          Investment
                                                                                           RMB                    470,500,000
Co., Ltd.                                Development Co., Ltd.

China Merchants Shekou Industrial Zone
                                         Shenzhen Merchants Construction Co., Ltd.         RMB                     50,000,000
Co., Ltd.

China Merchants Shekou Industrial Zone
                                         Foshan Merchants Real Estate Co., Ltd.            RMB                    249,000,000
Co., Ltd.

China Merchants Group (Hongkong) Co.,
                                         Eureka Investment Company Ltd.                    USD                  1,039,000,000
Ltd.


5. Other major affiliated transactions

       See other related transaction occurred during the reporting period in notes to financial statements.

VIII. Occupation of non-operating funds of the listed company by controlling shareholders
and their related parties

       Not applicable

IX. Important contract and its performance

1. Description on trust, contracting and lease matters

   No major items of collocating, contracting and leasing other corporate assets have occurred during the
reporting period.





                                                              Full Text of 2015 Semiannual Report of China Merchants Property Development Co., Ltd.


     2. Guarantee

                                                                                                                                                             Unit: RMB 10,000

                                          External guarantee of the Company (excluding guarantee for the subsidiaries)

                     Disclosure date of                                                                                                                                 Whether
   Name of                                                  Actual occurrence           Actual                                                          Completing
                       announcement        Guarantee                                                      Type of                                                     guaranteed for
  guaranteed                                                 date (agreement          guarantee                            Guarantee period             fulfillment
                         regarding               limit                                                  guarantee                                                     related party
     object                                                        date)               amount                                                             or not
                       guarantee limit                                                                                                                                  (yes or no)

                                                                                                                      From        the     day     the
                                                                                                                      mortgage bank released
                                                            Since the day the
Mortgaged                                                                                               Phased joint loans to the day the Real
                            None                            mortgage         bank       661,188.14                                                          No             No
house owner                                661,188.14                                                    guarantee Estate                ownership
                                                            released loans
                                                                                                                      certificate is issued for
                                                                                                                      house buyers


                     November 03, 2011            14,700        March 15, 2012             1,002.47                   Two years from the date               No             Yes
China
                                                                                                          Several     after the expiration date
Merchants
                     March 20, 2012                19,110         May 18, 2012             9,465.09       liability   of     the        loan     term       No             Yes
Guangming
                                                                                                         Guaranty     specified          in      loan
Science Park
                     March 18, 2014                 4,900         June 12, 2014                 3,381                 contract.                             No             Yes


China
Merchants                                                                                                             Two years from the date
                                                                                                          Several
Group Industrial                                                                                                      when debt performance
                     November 14, 2014              9,800       March 31, 2015                    490     liability                                         No             Yes
Park (Qingdao)                                                                                                        period under the loan
                                                                                                         Guaranty
Development                                                                                                           contract expires
Co., Ltd.




                                                                       Guarantee for the subsidiaries

                      Disclosure date                                                                                                                                   Whether
Name            of                                          Actual occurrence           Actual                                                          Completing
                     of announcement Guarantee                                                            Type of                                                     guaranteed for
guaranteed                                                   date (agreement          guarantee                            Guarantee period             fulfillment
                        regarding               limit                                                   guarantee                                                     related party
object                                                             date)               amount                                                             or not
                      guarantee limit                                                                                                                                   (yes or no)

Including:

                                           US$30
China                                                                                                                 30 days from the date
                                           million                                  US$30 million
Merchants                                                                                                             when                      debt
                                           (equivalent                              (equivalent    to
(Shenzhen)           March 19, 2013                         June 11, 2013                                 Several     performance              period       No             Yes
                                           to       RMB                             RMB 183.408
Power       Supply                                                                                        liability   agreed under the loan
                                           183.408                                  million)
Co., Ltd.                                                                                                Guaranty     contract expires
                                           million)

China                                                                                                                 Two years from the date
                     September 26, 2014           50,000 September 26, 2014                    49,980                                                       No             Yes
Merchants                                                                                                             when the period of debt




                                                    Full Text of 2015 Semiannual Report of China Merchants Property Development Co., Ltd.


(Shenzhen)                                                                                  performance        by      the
Property                                                                                    debtor which is agreed
Development                                                                                 under     the       master
Co., Ltd.                                                                                   contract expires

China
Merchants
(Harbin) Jiatian
                      March 18, 2014       12,500 November 27, 2014       12,500                                             No   Yes
Property
Development
Co., Ltd.

Shenzhen
Jinyurongtai
Investment            March 10, 2015       25,000 March 18, 2015          25,000                                             No   Yes
Development
Co., Ltd.

Beijing Conrad
Property
                      May 15, 2012         30,000 May 15, 2012            15,834                                             No   Yes
Development
Co., Ltd.

Shenzhen Vanke
Binhai Property December 26, 2013          40,000 December 06, 2013       20,000                                             No   Yes
Co., Ltd.

China
Merchants
(Guangzhou)
                      June 25, 2014        60,000     April 23, 2014      28,700                                             No   Yes
Property
Development
Co., Ltd.



China
Merchants
(Foshan)
                      June 25, 2014        12,000     April 30, 2014      11,940                                             No   Yes
Xincheng                                                                                    From the effective date
High-tech      Co.,                                                                         of contract till two years
Ltd.                                                                                        from the date when all
                                                                                            loans    under          Credit

Foshan      Kaida                                                                           Agreement are due

Town
Investment            September 29, 2014   60,000 September 26, 2014      14,950                                             No   Yes
Development
Co., Ltd.





                                                  Full Text of 2015 Semiannual Report of China Merchants Property Development Co., Ltd.


Foshan Shunde
Evian Zhenyuan
                    September 29, 2014   22,000 September 29, 2014       5,445                                                No   Yes
Property     Co.,
Ltd.

                                                                                          From        the    effective
                                                                                          date      of      guarantee
                                                                                          contract till the date
                                                                                          when                     China
                                                                                          Merchants
                                                                                          Commercial                goes
                                                                                          through             security
                                                                                          guarantee procedures,
                                                                                          with China Merchants
Shenzhen China                                                                            Bank as mortgagee,
Merchants                                                                                 of No.1, No.2 and
Business            January 13, 2015     15,300 December 23, 2014       12,495            No.3              buildings         No   Yes
Development                                                                               (specific              names
Co., Ltd.                                                                                 subject to the real
                                                                                          estate            ownership
                                                                                          certificate issued by
                                                                                          related authorities) of
                                                                                          Shenzhen          Haishang
                                                                                          Shijie
                                                                                          Plaza-Chuanqian
                                                                                          Plaza       which        it    is
                                                                                          legally        entitled       to
                                                                                          own or dispose of.

Shenzhen
Shekou
Seaworld Hotel December 26, 2013         25,500   October 22, 2013      23,970                                                No   Yes
Management
Co., Ltd.
                                                                                          Two years upon the
China
                                                                                          period of performance
Merchants
                                                                                          of all guaranteed debts
(Nanjing        )
                    March 05, 2014       60,000    August 26, 2013      60,000            expires         from          the   No   Yes
Property
                                                                                          effective         date        of
Development
                                                                                          guarantee contract
Co., Ltd.

Nanjing     China
Merchants
                    March 05, 2014       17,000   January 27, 2014      16,700                                                No   Yes
Ruisheng
Property     Co.,





                                                         Full Text of 2015 Semiannual Report of China Merchants Property Development Co., Ltd.


Ltd.




Nanjing      China
Merchants
Ruisheng              March 05, 2014           58,000     January 27, 2014              57,700                                       No           Yes
Property       Co.,
Ltd.

Shenzhen
Jinyurongtai
Investment            June 25, 2014            25,000        June 27, 2014              22,050                                       No           Yes
Development
Co., Ltd.

                                          US$60                                                        The period from the
                                          million                            US$60 million             effective     date     of
Huitai
                                          (equivalent                        (equivalent    to         guarantee contract to the
Investment Co., April 18, 2015                             March 03, 2015                                                            No           Yes
                                          to RMB                             RMB 366.816               date   when    borrowers
Ltd.
                                          366.816                            million)                  repay all debts under
                                          million)                                                     the loan contract

Total corporate guarantee amount is RMB 11,078,130,900




       (1) Illegal external guarantee of the Company

            The Company was free from illegal guarantee during the reported period.

       3. Other important contracts

            The Company has successively signed loan contract with Agricultural Bank of China, China Construction Bank, Bank of
       Communication and China Merchants Bank; as of the end of the reported period, total amount of line of credit equals to RMB 81.5
       billion.


       4. Other major transactions

             Not applicable

       X. Existing commitments made by the Company or shareholder holding 5% and above
       in/before the reporting period

                                  Commitment                                                                               Commitment
            Commitments                                      Commitment content                  Commitment time                           Performances
                                       party                                                                                  term

       Commitment of             China            After reform of non-tradable shares, land                           Till two years      During the
                                                                                                 December 9, 2005
       equity division           Merchants        and other high-quality assets will be                               after the           reporting



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reform               Shekou        continued to be input to support the                            shareholder no   period,
                                   Company development.                                            longer holds the commitments
                                                                                                   shares of the    have been
                                                                                                   Company          strictly
                                                                                                                    fulfilled.

                                   Not to (directly or indirectly) engage in or
                                   develop any businesses or projects with
                                   business scopes similar to the Company;
                                   not to establish, develop, participate in or
                                   assist in any enterprises with any direct or
                                                                                                   Till two years   Till two years
                                   indirect competition with the Company for
                                                                                                   after the        after the
Other commitments China            the China Merchants Group and the
                                                                                                   shareholder no   shareholder no
for non-majority     Merchants     related parties or on behalf of any third      March 19, 2008
                                                                                                   longer holds the longer holds the
shareholders         Shekou        parties; not to engage in or participate in
                                                                                                   shares of the    shares of the
                                   (directly or indirectly in) activities that
                                                                                                   Company          Company
                                   compete with the Company by taking
                                   advantages of the information obtained
                                   from the Company; and not to have any
                                   other competing behaviors that infringe or
                                   may infringe the Company interests.

                                   WHEREAS, the convertible bonds to be
                                   issued by CMPD in public in 2015 are
                                   required for issuance of convertible bond
                                                                                                                    During the
                                   this time, as the holding stockholder of
                                                                                                                    reporting
                                   CMPD, China Merchants Shekou makes a
                     China                                                                                          period,
Commitment made                    commitment: where the Company and                               Long-term
                     Merchants                                                    March 11, 2015                    commitments
in IPO/refinancing                 investors suffer losses arising out of the                      effective
                     Shekou                                                                                         have been
                                   violation of laws and rules including the
                                                                                                                    strictly
                                   matter of leaving non-disclosed land idle
                                                                                                                    fulfilled.
                                   during the reporting period by      CMPD,
                                   the committing party shall undertake the
                                   corresponding liability for damage.

Has the commitment
performed in a       Yes
timely manner




XI. Employment and dismissal of the accounting firm

     As approved in the annual general meeting of shareholders of the Company of 2014, the Company continues to employ
Shinewing Certified Public Accountants (Special Ordinary Partnership) as the external audit institution of Company of 2015.





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XII. Punishment and rectification

    Not applicable

XIII. Risk disclosure on delisting violating laws and rules

    Not applicable

XIV. Other important events

    Major asset restructuring
    China Merchants Group, the practical controller of the Company, is planning for the major assets restructuring involving
unprecedented matters which is associated with the Company. The shares of the Company were continually suspended from April 3,
2015. China Merchants Group is actively promoting the consolidation of the Company with China Merchants
Shekou Industrial Zone Holdings Co., Ltd. (a holding company of the Company, originally named \"China
Merchants Shekou Industrial Zone Co., Ltd.\"). As of the disclosure date, the proposed plan is that China
Merchants Shekou will merge the Company and apply to Shenzhen Stock Exchange for listing.
    Document on Application for Cancellation of Issuing of Convertible Bonds of the Company
    The Company, upon approval by the third extraordinary general shareholders' meeting 2014, proposed to apply to China
Securities Regulatory Commission for the issuance of RMB 8 billion's convertible bonds and authorized the board of directors to
submit the Report on Applying for the Issuance of Convertible Bonds By China Merchants Property Development Co., Ltd. and other
application documents in December 2014 and obtained the CSRC No.141796 Notice on Acceptance of the Administrative
License Application by China Securities Regulatory Commission.
      Whereas China Merchants Group is discussing and working on the major assets restructuring plan to advance
the integration of the Company and the Shekou Industrial Zone, the issuance of convertible bonds is not
applicable. Approved in the 6th Temporary Conference of the 7th Board of Directors of the Company in 2015, the
Company has applied to China Securities Regulatory Commission for withdrawal of the documents on applying
for the public issuance of convertible bonds in 2014 . The Company has received the Notice on Review
Termination of the Administrative Licensing Application by China Securities Regulatory Commission ([2015]
No.131) before the report disclosure date. Pursuant to the applicable provisions in Article 20 of the Regulation on
Procedure Implementation of the Administrative Licensing by China Securities Regulatory Commission, China
Securities Regulatory Commission decided to terminate the review for the above administrative license
application.
    Phase II medium-term notes of 2015 issued by the Company

     The matter on issuance of the debt financing instruments no less than RMB 5 billion by the Company has
been approved at the Second Extraordinary General Meeting of 2014 on October 24,2014, for which details are
contained in the Notice on the Resolution at the Second Extraordinary General Meeting of 2014 by China
Merchants Property Development Co., Ltd. (Announcement No. [CMPD] 2014-070) published in China
Securities Journal, Shanghai Securities News, Securities Times, Securities Daily, Hong Kong Commercial Daily
and CNINFO (http://www.cninfo.com.cn) by the Company on October 25, 2014.
     On December 15, 2014, the Company received the Notice of Registration Acceptance (Z.S.X.Z. [2014] No.
MTN458) issued by National Association of Financial Market Institutional Investors (NAFMII), agreeing to
accept the registration of medium-term notes with a registered amount of RMB 5 billion. The registration limit
shall be effective within 2 years from the date of issuance of the Notice of Registration Acceptance by NAFMII.


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     The Company successfully issued the phase II medium-term notes of 2015 on July 9, 2015, for which details
are contained in the Notice on the Resolution at the Second Extraordinary General Meeting of 2014 by China
Merchants Property Development Co., Ltd. (Announcement No. [CMPD] 2015-052) published in China
Securities Journal, Shanghai Securities News, Securities Times, Securities Daily, Hong Kong Commercial Daily
and CNINFO (http://www.cninfo.com.cn) by the Company on July 14, 2015.





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            Section Six Capital Changes and Shareholders' Information

I. Changes in equity

                                                                                                                           Unit: share

                               Prior to this change                Changes (+/-) in this time                 After this change

                                                                              Shares
                                                                             converted
                                                          Stock   Dividend
                               Quantity      Proportion                        from      Others Subtotal     Quantity      Proportion
                                                          issue    stock
                                                                              reserved
                                                                               funds

I. Shares with trading
                             1,337,166,996     51.91 %                                    9,975   9,975 1,337,176,971        51.91 %
limited conditions

1. Share held by the state

2. Shares held by
                             1,040,128,975     40.38 %                                                     1,040,128,975     40.38 %
state-owned corporate

3. Other domestic-held
                                  380,487       0.02 %                                    9,975   9,975         390,462       0.02 %
shares

Including: shares held by
domestic corporate

          Shares held by
                                  380,487       0.02 %                                    9,975   9,975         390,462       0.02 %
domestic natural person

4. Share held by foreign
                              296,657,534      11.51 %                                                      296,657,534      11.51 %
capital

Including: shares held by
                              296,564,159      11.51 %                                                      296,564,159      11.51 %
overseas corporate

          Shares held by
                                   93,375          0%                                                            93,375           0%
foreign natural person

II. Shares without trading
                             1,238,783,758     48.09 %                                   -9,975   -9,975 1,238,773,783       48.09 %
limited conditions

1. Ordinary shares in RMB 1,026,426,357        39.85 %                                   -9,975   -9,975 1,026,416,382       39.85 %

2. Domestically-listed
shares held by foreign        212,357,401       8.24 %                                                      212,357,401       8.24 %
investors

3. Overseas-listed shares
held by foreign investors

4. Others




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III. Total shares                2,575,950,754       100 %                                                             2,575,950,754       100 %

During the reporting period, the officers of the Company have left the Company and part of officers have increased stocks of the
Company through the secondary market; and according to related stipulations, Shenzhen Branch of China Securities Depository and
Clearing Corporation Limited (CSDC) has increased the restricted stocks held by corresponding senior managers, which has caused
changes to the limited and unlimited stocks of the Company.


II. Number of shareholders and shareholding status

                                                                                                                                       Unit: share

  Total number of
       common
 shareholders as of                                      98,350 (A-shares: 87,713, B-shares: 10,637)
   the end of the
  reporting period

                                           Information of shares held by the top ten shareholders

                                                        Quantity of                                                         Pledged or frozen
                                                                                                             Quantity of
                                                       shares held at Increase/decreas Quantity of                               status
       Name of           Nature of the   Shareholdin                                                            held
                                                        the end of        e during this     restricted
   shareholders           shareholder      g ratio                                                           un-restricte Shareholdin Quantit
                                                       this reporting reporting period     share held
                                                                                                               d share      g status    y
                                                        period (%)

China      Merchants State-owned                       1,040,128,97                        1,040,128,97
                                            40.38 %                          None                              None          None          None
Shekou                  corporate                                     5

Full           Space
                        Overseas
Investment                                    5.48 % 141,216,075             None          141,216,075         None          None          None
                        corporate
Limited

China      Merchants
                        Overseas
Securities       (HK)                         2.92 %     75,241,545               36,468    73,863,367        1,378,178      None          None
                        corporate
Co., Ltd.

FOXTROT
                        Overseas
INTERNATIONA                                  1.61 %     41,580,000          None           41,580,000         None          None          None
                        corporate
L LIMITED

ORIENTURE
                        Overseas
INVESTMENT                                    1.55 %     39,904,717          None           39,904,717         None          None          None
                        corporate
LTD

GOLDEN CHINA Overseas
                                              1.03 %     26,487,893          None             None           26,487,893      None          None
MASTER FUND             institutions

National      Social Domestic
Security Fund 118 non-state-owne              0.86 %     22,189,608            5,053,220      None           22,189,608      None          None
Portfolio               d corporate

Invesco Great Wall Domestic
                                              0.58 %     15,000,052          11,999,980       None           15,000,052      None          None
Selective        Blue non-state-owne



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Chip          Share d corporate
Securities
Investment Funds

Fullgoal     Tianbo Domestic
Innovative Theme non-state-owne           0.54 %     13,849,442         -4,950,558        None     13,849,442     None       None
Stock Fund           d corporate

GREENWOODS
                     Overseas
CHINA        ALPHA                        0.51 %     13,031,565        None               None     13,031,565     None       None
                     institutions
MASTER FUND

                                     Shareholding status of top ten un-restricted shareholders

                                                    Quantity of held unrestricted share                Class of shares
              Name of shareholders
                                                   as of the end of the reporting period Class of shares          Quantity

GOLDEN CHINA MASTER FUND                                                    39,904,717       B share                     39,904,717

National Social Security Fund 118 Portfolio                                 22,189,608       A share                     22,189,608

Invesco Great Wall Selective Blue Chip Share                                                 A share
                                                                            15,000,052                                   15,000,052
Securities Investment Funds

Fullgoal Tianbo Innovative Theme Stock Fund                                 13,849,442       A share                     13,849,442

GREENWOODS CHINA ALPHA MASTER                                                                B share
                                                                            13,031,565                                   13,031,565
FUND

Rongtong New Blue Chip Securities Investment                                                 A share
                                                                            12,000,056                                   12,000,056
Funds

NORGES BANK                                                                 11,641,091       B share                     11,641,091

Invesco Great Wall Domestic Needs Growth No                                                  A share
                                                                            10,490,450                                   10,490,450
Two Shares Securities Investment Funds

National Social Security Fund 413 Portfolio                                 10,000,000       A share                     10,000,000

National Social Security Fund 101 Portfolio                                   8,736,473      A share                      8,736,473

                                                   1. China Merchants Shekou and its subsidiaries - FOXTROT INTERNATIONAL
                                                   LIMITED and ORIENTURE INVESTMENT LTD are Persons Acting in Concert;
                                                   GOLDEN CHINA MASTER FUND and GREENWOODS CHINA ALPHA
                                                   MASTER FUND are Persons Acting in Concert. Dafeng International, a
Statement on related relationship and acting in
                                                   subsidiary of China Merchants Shekou, has entrusted 73,863,367 shares of the
concert of the above-mentioned shareholders
                                                   Company to China Merchants Securities (Hongkong) Co., Ltd.
                                                   2. Both the Invesco Great Wall Blue-chip Stock Securities Investment Fund and
                                                   the Invesco Great Wall Domestic Demand Growth No. 2 Stock Securities
                                                   Investment Fund are run by the same funds management company.


III. Changes in the Controlling Shareholder or Actual Controllers

       During the reporting period, there is no change in controlling shareholder or actual controller of the Company.



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On June 26, 2015, the Company was renamed China Merchants Shekou Industrial Zone Holdings Co., Ltd.
    Block Diagram of Property and Control Relations between the Company and Actual Controller is as follows:




                                               State-owned              Assets

                                               Supervision      100 %      and

                                               Administration Commission of
                                                        China Merchants
                                               State Council
                                                        Group 100 %
                                     40.38 %
                                                        China      Merchants
                        C                               Shekou 100 %
                        hi            2.87 %
                        na                                Dafeng
                        M
                        er                                Internationa
                                                               100 %
                        ch                      OrienturelHoldings Co. Ltd
                        an
                        ts
                                      5.48 %                                     100 %
                        Pr                              Full Space Investment Limited
                        op
                        er
                        ty            1.61 %                                     100 %
                                                 Foxtrot International Limited
                        De
                        ve
                        lo            1.55 %                                     100 %
                        p                       OrientureInvestment Limited
                        m
                        en
                        t
                        C
                        o.,
IV. Stock Overweight Plan Proposed or Implemented by Shareholders of the Company and
                        Lt
                        d.
Persons Acting in Concert during the Reporting Period

    During the reporting period, the shareholders of the Company and persons acting in concert have not
proposed or implemented the stock overweight plan.





                                              Full Text of 2015 Semiannual Report of China Merchants Property Development Co., Ltd.



            Section Seven Information about the Company's Directors,

                                             Supervisors, and Officers

I. Changes in ownership of directors, supervisors and officers

                                            Number of shares     Number of increased     Number of decreased       Number of shares
                                 Position held at the beginning  shares held during       shares held during      held at the end of the
     Name         Title
                                  status  of the period (share) current period (share)   current period (share)      period (share)

                                            A share   B share     A share    B share     A share      B share      A share     B share

Sun
             Chairman           Incumbent
Chengming

Fu                              Incumbent
             Vice-chairman
Gangfeng

Yang                            Incumbent
             Vice-chairman
Tianping

             Managing           Incumbent
He Jianya                                   187,306                                                                 187,306
             Director

Hu Yong      Director           Incumbent

             Director     and Incumbent
Wu           Chief
                                                         7,500                                                                    7,500
Zhenqin      Financial
             Director

Chen Gang Director              Incumbent

             Independent        Incumbent
Chai Qiang
             director

Liu          Independent        Incumbent
Hongyu       director

Lu           Independent        Incumbent
Weixiong     director

             Independent        Incumbent
Zhang Wei
             director

             Chairman      of Incumbent
Hua Li       Board         of
             Supervisors

Liu                             Incumbent
             Supervisor
Qingliang

Huang                           Incumbent
             Supervisor
Junlong




                                          Full Text of 2015 Semiannual Report of China Merchants Property Development Co., Ltd.
            Employee        Incumbent
Chen Yan
            Supervisor

            Employee        Incumbent
Chen Qing
            Supervisor

            Deputy          Incumbent
Yang
            General                      100,192    49,500                                                  100,192     49,500
Zhiguang
            Manager

            Chief Green     Incumbent
Hu Jianxin Low-carbon                     38,600                                                             38,600
            Officer

            Deputy          Incumbent
Zhu
            General                       41,500                                        8,375                33,125
Wenkai
            Manager

            Deputy          Incumbent
Meng Cai    General                      108,523                                                            108,523
            Manager

            Deputy          Incumbent
Zhang Lin General                         18,300    17,250                                                   18,300     17,250
            Manager

Wang        Chief           Incumbent
                                                    30,000                                                              30,000
Zhengde     Economist

            Deputy          Incumbent
He Fei      General                        3,000                                                              3,000
            Manager

            Deputy          Incumbent
Wang Xi     General                                            10,000                                        10,000
            Manager

            Secretary     of Incumbent
Liu Ning    the Board of                            20,251                                                              20,251
            Directors

            Former          Quitted
            Deputy
Liu Wei                                    9,900                                                              9,900
            General
            Manager

Total               --          --       507,321   124,501     10,000            -      8,375           -   508,946    124,501





                                   Full Text of 2015 Semiannual Report of China Merchants Property Development Co., Ltd.
II. Personnel changes of directors supervisors and officers


  Mr. Liu Wei resigns his his position of vice-general manager of the Company as a result of job change.




                              Section Eight Financial Report


  The semi-annual Financial Report of the Company has not been audited.



   Unit in statements in financial notes: RMB





                                          Full Text of 2015 Semiannual Report of China Merchants Property Development Co., Ltd.
   Financial Statements

                                              Consolidated Balance Sheet
                                                        June 30, 2015
Prepared by: China Merchants Property Development Co., Ltd.                Unit: yuan
                                                                           Balance at the end of
                            Item                              Note                                      Beginning balance
                                                                                 the period
Current assets:
     Monetary fund                                            VI. 1             23,752,513,388.51          22,983,386,443.02
     Financial assets measured at fair value with
changes included in profits and losses
     Notes receivable                                         VI. 2                  13,120,000.00               4,390,000.00
     Accounts receivable                                      VI. 3                  75,738,101.42              68,311,944.30
     Prepayments                                              VI. 4              2,319,248,549.47           3,619,194,870.49
     Interests receivable                                     VI. 5                  17,574,533.16
     Dividends receivable                                     VI. 6                                             64,195,980.00
     Other receivables                                        VI. 7             13,094,208,594.56           8,941,860,794.39
     Inventories                                              VI. 8            112,708,539,725.92         101,018,636,735.26
     Divided into assets held for sale
     Non-current assets due within one year
     Other current assets                                     VI. 9              4,014,013,467.72           3,550,695,892.97
                   Total current assets                                        155,994,956,360.76         140,250,672,660.43
Non-current assets:
     Available-for-sale financial assets
     Held-to-maturity investment
     Long-term accounts receivable                            VI. 10             1,197,613,748.94
     Long-term equity investments                             VI. 11             2,016,904,362.05           1,905,735,901.68
     Investment property                                      VI. 12             5,340,268,772.92           5,447,243,949.46
     Fixed assets                                             VI. 13             1,785,900,854.51           1,845,537,869.92
     Construction in progress                                 VI. 14                 80,437,759.42              84,973,050.61
     Engineering material
     Liquidation of fixed assets
     Intangible assets                                        VI. 15               503,207,197.99             511,546,467.17
     Development expenses
     Goodwill                                                 VI. 16               159,560,861.23             159,560,861.23
     Long-term deferred expenses                              VI. 17               248,867,341.99             247,265,491.47
     Deferred income tax assets                               VI. 18             1,336,712,299.28           1,239,828,866.61
     Other non-current assets                                 VI. 19               144,834,167.45
              Total non-current assets                                          12,814,307,365.78          11,441,692,458.15
                       Total assets                                            168,809,263,726.54         151,692,365,118.58
The Notes are the integral part of the financial statement, and the financial statement is signed by the
following persons

Legal representative: Sun Chengming Accounting supervisor: Wu Zhenqin Legal representative of the
accounting firm: Li Shifang



                                       Full Text of 2015 Semiannual Report of China Merchants Property Development Co., Ltd.
                                    Consolidated Balance Sheet (Continued)
                                                 June 30, 2015
Prepared by: China Merchants Property Development
                                                                                                                 Unit: yuan
Co., Ltd.
                                                                        Balance at the end of
                        Item                               Note                                       Beginning balance
                                                                             the period
Current liabilities:
    Short-term loans                                       VI. 20               661,360,000.00            3,886,900,000.00
    Financial liabilities measured at fair value with
changes included in current profits and losses
    Notes payable                                          VI. 21               135,838,559.70               47,344,138.00
    Accounts payable                                       VI. 22            11,398,328,029.62           15,213,477,059.40
    Account received in advance                            VI. 23            44,331,491,628.00           35,599,290,811.40
    Payroll payable                                        VI. 24               228,547,487.17              398,745,343.32
    Tax payable                                            VI. 25             1,379,322,049.30            3,133,693,418.62
    Interests payable                                      VI. 26               305,950,402.18              192,136,769.30
    Dividends payable                                      VI. 27               118,244,875.70              160,730,318.08
    Other payables                                         VI. 28            12,994,818,432.01           11,782,505,874.39
    Divided into liabilities held for sale
    Non-current liabilities due within one year            VI. 29             8,790,998,800.00            5,970,100,938.48
    Other current liabilities                              VI. 30             3,450,912,959.45            3,729,367,673.26
              Total current liabilities                                      83,795,813,223.13           80,114,292,344.25
Non-current liabilities:
    Long-term loans                                        VI. 31            28,108,117,424.75           24,666,515,200.02
    Bonds payable                                          VI. 32             5,428,232,355.96            3,018,076,924.57
    Long-term payables                                     VI. 33             3,575,058,351.11              104,353,146.52
    Long-term remuneration payable
    Special payables:
    Estimated liabilities
    Deferred income                                        VI. 34                 8,001,340.28                6,526,053.33
    Deferred income tax liabilities                        VI. 18               433,869,872.83               35,822,337.24
    Other non-current liabilities                          VI. 35                61,341,172.42
            Total non-current liabilities                                    37,614,620,517.35           27,831,293,661.68
                   Total liabilities                                        121,410,433,740.48          107,945,586,005.93
Owners' equity:
    Share capital                                          VI. 36             2,575,950,754.00            2,575,950,754.00
    Other equity instruments
    Capital reserve                                        VI. 37             8,891,695,526.72            8,529,757,654.36
    Less: treasury stocks
    Other comprehensive income                             VI. 38                 79,040,568.71              78,901,353.52
    Special reserves
    Surplus reserve                                        VI. 39             1,246,228,257.72            1,246,228,257.72
    Undistributed profit                                   VI. 40            19,984,776,014.63           18,663,578,091.22
      Total owners' equity attributable to parent
                                                                             32,777,691,121.78           31,094,416,110.82
                       company
    Minority shareholders' equity                                            14,621,138,864.28           12,652,363,001.83
            Total shareholders' equity                                       47,398,829,986.06           43,746,779,112.65
     Total liabilities and shareholders' equity                             168,809,263,726.54          151,692,365,118.58





                                           Full Text of 2015 Semiannual Report of China Merchants Property Development Co., Ltd.
                                   Consolidated Balance Sheet of Parent Company
                                                         June 30, 2015
Prepared by: China Merchants Property
                                                                                                                    Unit: yuan
Development Co., Ltd.
                                                                        Balance at the end of
                         Item                              Note                                        Beginning balance
                                                                              the period
Current assets:
     Monetary fund                                                             6,548,407,550.60              8,893,516,594.16
     Financial assets measured at fair value with
changes included in profits and losses
     Notes receivable
     Accounts receivable
     Prepayments
     Interests receivable                                                         13,695,834.47                  25,144,020.00
     Dividends receivable                                                      2,096,966,208.84              2,037,168,805.28
     Other receivables                                    XVI. 1             24,687,852,992.53              29,205,557,475.48
     Inventories
     Divided into assets held for sale
     Non-current assets due within one year
     Other current assets
                Total current assets                                         33,346,922,586.44              40,161,386,894.92
Non-current assets:
     Available-for-sale financial assets
     Held-to-maturity investment
     Long-term accounts receivable                                             3,241,036,294.96
     Long-term equity investments                         XVI. 2               9,047,225,858.39              8,926,259,288.07
     Investment property
     Fixed assets                                                                  1,014,639.49                   1,153,721.49
     Construction in progress
     Engineering material
     Liquidation of fixed assets
     Intangible assets
     Development expenses
     Goodwill
     Long-term deferred expenses
     Deferred income tax assets
     Other non-current assets
            Total non-current assets                                         12,289,276,792.84               8,927,413,009.56
                    Total assets                                             45,636,199,379.28              49,088,799,904.48





                                          Full Text of 2015 Semiannual Report of China Merchants Property Development Co., Ltd.
                                  Balance Sheet of Parent Company (continued)
                                                        June 30, 2015
Prepared by: China Merchants Property
                                                                                                                   Unit: yuan
Development Co., Ltd.
                                                                    Balance at the end of
                         Item                            Note                                        Beginning balance
                                                                          the period
Current liabilities:
     Short-term loans                                                          50,000,000.00                3,275,000,000.00
     Financial liabilities measured at fair value
with changes included in current profits and
losses
     Notes payable                                                             37,059,280.36
     Accounts payable                                                        173,765,648.91                   320,143,894.81
     Account received in advance
     Payroll payable                                                             -420,070.35                     9,402,578.82
     Tax payable                                                               29,133,542.72                       656,908.61
     Interests payable                                                       207,280,933.56                   139,423,235.44
     Dividends payable
     Other payables                                                       13,504,078,979.52                14,165,111,926.02
     Divided into liabilities held for sale
     Non-current liabilities due within one year                           2,592,610,800.00                 4,012,581,100.00
     Other current liabilities
             Total current liabilities                                    16,593,509,114.72                21,922,319,643.70
Non-current liabilities:
     Long-term loans                                                      11,173,809,920.00                 9,695,442,200.00
     Bonds payable                                                         1,000,000,000.00
     Long-term payables
     Long-term remuneration payable
     Special payables:
     Estimated liabilities
     Deferred income
     Deferred income tax liabilities
     Other non-current liabilities
          Total non-current liabilities                                   12,173,809,920.00                 9,695,442,200.00
                 Total liabilities                                        28,767,319,034.72                31,617,761,843.70
Owners' equity:
     Share capital                                                         2,575,950,754.00                 2,575,950,754.00
     Other equity instruments
     Capital reserve                                                       8,080,172,222.38                 8,077,543,540.86
     Less: treasury stocks
     Other comprehensive income
     Special reserves
     Surplus reserve                                                       1,195,276,864.72                 1,195,276,864.72
     Undistributed profit                                                  5,017,480,503.46                 5,622,266,901.20
          Total shareholders'        equity                               16,868,880,344.56                17,471,038,060.78
 Total liabilities and shareholders' equity                               45,636,199,379.28                49,088,799,904.48


Full Text of 2015 Semiannual Report of China Merchants Property Development Co., Ltd.





                                               Full Text of 2015 Semiannual Report of China Merchants Property Development Co., Ltd.
                                                 Consolidated profit statement
                                                          January - June 2015
Prepared by: China Merchants Property                                                                                  Unit: yuan
Development Co., Ltd.
                                                                             Amount of current            Amount of the same
                             Item                               Note
                                                                                    period                 period of last year
I. Total operating income                                                        17,973,948,437.46             16,047,155,730.99
      Including: operating income                              VI. 41            17,973,948,437.46             16,047,155,730.99
II. Total operating cost                                                         14,998,019,532.62             12,845,676,701.45
    Including: operating cost                                  VI. 41            11,986,510,250.36             10,391,068,273.47
              Operating taxes and surcharges                   VI. 42              1,950,243,032.76             1,614,019,700.29
              Sales expenses                                   VI. 43                334,261,066.67               281,938,248.45
              Administrative expenses;                         VI. 44                272,488,851.73               231,659,798.70
              Financial expenses                               VI. 45                455,736,062.10               326,102,386.55
              Assets impairment losses                         VI. 46                 -1,219,731.00                   888,293.99
         Add: income from changes in fair
value(―-‖indicates the loss)
              Investment profit (―-‖ indicates the loss)     VI. 47                493,114,654.44               143,318,415.51
                 Including: investment income from
                                                               VI. 47                 42,235,644.34               143,318,415.51
affiliated enterprises and joint ventures
III. Operating profit (“-” indicates the loss)                                   3,469,043,559.28             3,344,797,445.05
      Add: non-operating income                                VI. 48                 27,355,516.15                35,496,879.63
            Including: gains from disposal of
                                                               VI. 48                    150,369.00                     14,184.22
non-current assets
      Less: non-operating expenditure                          VI. 49                 17,349,667.98                21,725,415.49
            Including: loss from disposal of
                                                               VI. 49                        8,451.04                 175,062.57
non-current assets
IV. Total profit (“-” indicates the total loss)                                  3,479,049,407.45             3,358,568,909.19
      Less: income tax                                         VI. 50              1,090,902,279.86               964,496,768.41
V. Net profit (―-‖ indicates the net loss)                                       2,388,147,127.59             2,394,072,140.78
      Net profits attributable to the parent company
                                                                                   2,145,502,164.69             1,785,434,748.85
shareholders
      Gain and loss of minority shareholders                                         242,644,962.90               608,637,391.93
VI. After-tax net of other comprehensive
                                                                                         187,243.03
incomes
      After-tax net of other comprehensive incomes
                                                                                         139,215.19
owned by the owner of the parent company
          (I) Other comprehensive incomes that
cannot be classified into profit and loss in the
future
          1. Re-measurement of changes in net
liabilities or net assets in defined benefit plan
          2. Share in other comprehensive incomes
that cannot be reclassified into profit and loss in
investee by equity method
          (II) Other comprehensive incomes that
                                                                                         139,215.19
would be classified into profit and loss in the future


                                         Full Text of 2015 Semiannual Report of China Merchants Property Development Co., Ltd.
    1. Shares in other comprehensive incomes
that can be reclassified into profit and loss in
investee by equity method in the future
    2.Loss and profit of change in fair value of
available-for-sale financial assets
    3. Loss and profit of available-for-sale
financial assets of held-to-maturity investments
    4. Effective part of hedge profit and loss of
cash flow
    5. Translation difference in the foreign
                                                                                   139,215.19
currency financial statement
    6. Others
     Net of tax from other comprehensive incomes
                                                                                    48,027.84
owned by minority stockholders
VII. Total comprehensive income                                              2,388,334,370.62             2,394,072,140.78
     Total consolidated income attributable to the
                                                                             2,145,641,379.88             1,785,434,748.85
shareholder of the parent company
     Total consolidated income attributable to
                                                                               242,692,990.74               608,637,391.93
minority shareholders
VIII. Earnings per share:
     (I) Basic earnings per share                                                         0.83                          0.69
     (II) Diluted earnings per share                                                      0.83                          0.69





                                                  Full Text of 2015 Semiannual Report of China Merchants Property Development Co., Ltd.
                                                  Profit Statement of Parent Company
                                                             January - June 2015
Prepared by: China Merchants Property Development Co.,
                                                                                                                           Unit: yuan
Ltd.
                                                                                                                    Amount of the
                                                                                          Amount of current
                                   Item                                        Note                                 same period of
                                                                                                 period
                                                                                                                       last year
I. Operating income                                                           XVI. 3             6,240,000.00              500,000.00
    Less: operating cost                                                  XVI. 3             1,228,912.37            1,057,252.16
             Operating taxes and surcharges                                                      1,119,189.10            2,240,568.26
             Sales expenses
             Administrative expenses;                                                           20,395,505.54           20,151,253.94
             Financial expenses                                                                -16,619,737.45           83,121,614.09
             Assets impairment losses
    Add: income from changes in fair value(―-‖indicates the
loss)
             Investment profit (―-‖ indicates the loss)                     XVI. 4           218,361,212.94           53,839,437.84
                 Including: investment income from affiliated
                                                                              XVI. 4                 69,929.10            -359,190.17
enterprises and joint ventures
II. Operating profit (―-‖ indicates the loss)                                                218,477,343.38          -52,231,250.61
    Add: non-operating income                                                                1,040,500.16
                Including: gains from disposal of non-current
assets
    Less: non-operating expenses                                                                                         2,000.00
                Including: loss from disposal of non-current
assets
Ⅲ. Total profit (\"-\"indicates the total loss)                                                 219,517,843.54          -52,233,250.61
    Less: income tax
IV. Net profit (―-‖ indicates the loss)                                                      219,517,843.54          -52,233,250.61
V. After-tax net of other comprehensive incomes
          (I) Other comprehensive incomes that cannot be
classified into profit and loss in the future
          1. Re-measurement of changes in net liabilities or net
assets in defined benefit plan
          2. Share in other comprehensive incomes that cannot
be reclassified into profit and loss in investee by equity
method
          (II) Other comprehensive incomes that would be
classified into profit and loss in the future
          1. Shares in other comprehensive incomes that can be
reclassified into profit and loss in investee by equity method
in the future
          2.Loss and profit of change in fair value of
available-for-sale financial assets
          3. Loss and profit of available-for-sale financial assets
of held-to-maturity investments


                                       Full Text of 2015 Semiannual Report of China Merchants Property Development Co., Ltd.
       4. Effective part of hedge profit and loss of cash flow
       5. Translation difference in the foreign currency
financial statement
       6. Others
VI. Total Comprehensive Income                                                      219,517,843.54          -52,233,250.61
VII. Earnings per share
     (I) Basic earnings per share
     (II) Diluted earnings per share





                                       Full Text of 2015 Semiannual Report of China Merchants Property Development Co., Ltd.
                                        Consolidated Cash Flow Statement
                                                     January - June 2015
Prepared by: China Merchants Property Development Co., Ltd.         Unit: yuan
                                                                            Amount of current        Amount of the same
                            Item                                  Note
                                                                                    period            period of last year
I. Cash flows from operating activities:
       Cash received from sales of commodities and
                                                                              22,919,760,919.87         18,355,477,590.23
provision of services
       Refunds of taxes and levies
       Cash received from other operating activities              VI. 51         4,950,861,844.21        3,871,017,979.61
   Sub-total of cash inflows from operating activities                        27,870,622,764.08         22,226,495,569.84
       Cash paid for purchasing goods and services                            20,261,758,470.60         20,625,105,111.33
       Cash paid to and for employees                                            1,161,424,042.43          854,694,963.32
       Payments of taxes                                                         6,010,179,943.53        5,455,155,348.46
       Other cash paid relating to operating activities           VI. 51         7,798,355,394.74        2,623,864,543.85
   Sub-total of cash outflows from operating activities                       35,231,717,851.30         29,558,819,966.96
         Net cash flows from operating activities                                -7,361,095,087.22      -7,332,324,397.12
II. Cash flows from investing activities:
       Cash received from withdrawal of investments
       Cash received from returns on investments                                    65,195,980.00            20,548,073.61
       Net cash received from disposal of fixed assets,
                                                                                       174,843.10                46,854.00
intangible assets and other long-term assets
       Net cash received from disposal of subsidiaries and
other business units
       Other cash received relating to investing activities       VI. 51           630,235,033.61
    Sub-total of cash inflows from investing activities                            695,605,856.71            20,594,927.61
       Cash paid to acquire fixed assets, intangible assets &
                                                                                    12,390,482.84            27,602,326.34
other long-term assets
       Cash paid to acquire investments                                            483,925,736.00            58,671,105.19
       Net cash received from payment of subsidiaries and
other business units
       Cash payments relating to other investment activities
   Sub-total of cash outflows from investing activities                            496,316,218.84            86,273,431.53
         Net cash flows from investing activities                                  199,289,637.87           -65,678,503.92
III. Cash flows from financing activities:
       Cash received from capital contribution                                     889,181,567.06            52,690,666.19
          Including: cash from the investment of minority
                                                                                   889,181,567.06            52,690,666.19
shareholders of the subsidiaries
       Cash received from borrowings                                          13,555,217,307.88          9,924,282,155.82
       Cash from issue of bonds                                                  2,749,531,871.47
       Other cash received relating to financing activities
    Sub-total of cash inflows from financing activities                       17,193,930,746.41          9,976,972,822.01
       Cash repayment for debts                                                  7,149,750,641.35        6,715,774,121.48
       Cash paid for distribution of dividends and profits or
                                                                                 2,130,870,039.43        1,522,713,038.14
payment of interests
          Including: dividends and profits paid by                                 161,873,738.11          232,862,000.00


                                        Full Text of 2015 Semiannual Report of China Merchants Property Development Co., Ltd.
subsidiaries to minority shareholders
         Other cash payments relating to financing activities                                                    922,920.00
   Sub-total of cash outflows from financing activities                          9,280,620,680.78         8,239,410,079.62
          Net cash flows from financing activities                               7,913,310,065.63         1,737,562,742.39
IV. Influence of exchange rate change on cash and cash
                                                                                    27,172,033.42             10,709,264.21
equivalents
V. Net increase of cash and cash equivalents                                       778,676,649.70        -5,649,730,894.44
     Add: balance of cash and cash equivalents at the
                                                                               22,947,760,259.27         24,235,680,921.50
beginning of period
VI. Balance of cash and cash equivalents at the end of
                                                                  VI. 51       23,726,436,908.97         18,585,950,027.06
period





                                       Full Text of 2015 Semiannual Report of China Merchants Property Development Co., Ltd.
                                    Cash Flow Statement of Parent Company
                                                   January - June 2015
Prepared by: China Merchants Property Development
                                                                                                                Unit: yuan
Co., Ltd.
                                                                           Amount of current         Amount of the same
                          Item                                 Note
                                                                               period                 period of last year
I. Cash flows from operating activities:
         Cash received from sales of commodities and
                                                                                    6,245,000.00                500,000.00
provision of services
         Refunds of taxes and levies                                                                                    -
         Cash received from other operating activities                         40,879,009,183.66         5,154,554,447.21
   Sub-total of cash inflows from operating activities                         40,885,254,183.66         5,155,054,447.21
         Cash paid for purchasing goods and services                                                                    -
         Cash paid to and on behalf of employees                                   30,224,753.14            36,214,887.14
         Payments of taxes                                                          4,140,137.42             4,271,957.18
         Other cash paid relating to operating activities                      36,733,046,791.70         7,456,488,650.15
  Sub-total of cash outflows from operating activities                         36,767,411,682.26         7,496,975,494.47
           Net cash flows from operating activities                             4,117,842,501.40        -2,341,921,047.26
II. Cash flows from investing activities:
         Cash received from withdrawal of investments                                                                   -
         Cash received from returns on investments                                 11,048,172.61           216,213,570.06
         Net cash received from disposal of fixed assets,
                                                                                                                           -
intangible assets & other long-term assets
         Net cash received from disposal of subsidiaries
and other business units
         Other cash received relating to investing
                                                                                                                           -
activities
   Sub-total of cash inflows from investing activities                             11,048,172.61           216,213,570.06
         Cash paid to acquire fixed assets, intangible
                                                                                         9,448.00                20,880.00
assets and other long-term assets
         Cash paid to acquire investments                                         269,633,231.99            88,671,105.19
         Net cash received from payment of subsidiaries
                                                                                                                           -
and other business units
         Cash payments relating to other investment
                                                                                2,780,870,504.49                           -
activities
  Sub-total of cash outflows from investing activities                          3,050,513,184.48            88,691,985.19
           Net cash flows from investing activities                            -3,039,465,011.87           127,521,584.87
III. Cash flows from financing activities:
         Cash received from capital contribution                                                                        -
         Cash received from borrowings                                          2,050,000,000.00         4,917,261,400.00
         Cash from issue of bonds                                               1,000,000,000.00                        -
         Other cash received relating to financing
activities
   Sub-total of cash inflows from financing activities                          3,050,000,000.00         4,917,261,400.00
         Cash repayments of amounts borrowed                                    5,215,972,250.00         3,158,976,000.00
         Cash payments for interest expenses and
                                                                                  797,121,299.64           674,974,230.45
distribution of dividends or profit
         Other cash payments relating to financing
                                                                                  457,078,758.74                           -
activities
  Sub-total of cash outflows from financing activities                          6,470,172,308.38         3,833,950,230.45
          Net cash flows from financing activities                             -3,420,172,308.38         1,083,311,169.55
IV. Influence of exchange rate change on cash and                                  -3,314,224.71           -11,144,685.25



                                     Full Text of 2015 Semiannual Report of China Merchants Property Development Co., Ltd.
cash equivalents
V. Net increase of cash and cash equivalents                                 -2,345,109,043.56        -1,142,232,978.09
     Add: balance of cash and cash equivalents at the
                                                                              8,893,516,594.16         6,296,121,745.68
beginning of period
VI. Balance of cash and cash equivalents at the end
                                                                              6,548,407,550.60         5,153,888,767.59
of period





                                                                                                                              Full Text of 2015 Semiannual Report of China Merchants Property Development Co., Ltd.

                                                                                            Consolidated Statement of Owners' Equity Changes
                                                                                                                         January - June 2015
                                            Prepared by: China Merchants Property Development Co., Ltd.                   Unit: yuan
                                                                                                                                              Current year
                                                                                                   Total shareholders' equity attributed to parent company
                                     Item                                                                                                                                                        Minority
                                                                                                                  Less:      Other                            General                                             Total owners'
                                                                                                                                                                            Undistributed      shareholders'
                                                                         Share capital    Capital reserve       treasury comprehensive   Surplus reserve        risk                                                 equity
                                                                                                                                                                               profit             equity
                                                                                                                 stocks     income                           provisions
I. Balances at the end of previous year                                 2,575,950,754.00 8,529,757,654.36                78,901,353.52 1,246,228,257.72                   18,663,578,091.22 12,652,363,001.83 43,746,779,112.65
Add: profit or loss from accounting policy changes
Fund for corrections of errors of previous period
Corporate merge under common control
Others
II. Balances at the beginning of this year                              2,575,950,754.00 8,529,757,654.36                78,901,353.52 1,246,228,257.72                   18,663,578,091.22 12,652,363,001.83 43,746,779,112.65
III. Increased/decreased amount this year (“-” indicates decrease)                       361,937,872.36                   139,215.19                                     1,321,197,923.41   1,968,775,862.45   3,652,050,873.41
  (I) Total comprehensive income                                                                                            139,215.19                                     2,145,502,164.69    242,692,990.74    2,388,334,370.62
  (II) Capital paid in and reduced by shareholders                                         373,715,121.50                                                                                     1,845,471,167.44   2,219,186,288.94
1. Ordinary share invested by shareholders                                                  49,615,778.95                                                                                     1,739,195,664.69   1,788,811,443.64
2. Capital invested by other equity instruments holders                                    308,053,942.66                                                                                      106,275,502.75     414,329,445.41
3. Amounts of share-based payments recognized in shareholders' equity                       16,045,399.89                                                                                                          16,045,399.89
4. Others
  (III) Profit distribution                                                                                 -                                                               -824,304,241.28   -119,388,295.73    -943,692,537.01
1. Appropriation to surplus reserves
2. Appropriation of general risk reserves
3. Distribution to owners (or shareholder)                                                                                                                                  -824,304,241.28   -119,388,295.73    -943,692,537.01
4. Others
  (IV) Internal carried-forward of shareholders’ equity                                                    -
1. Capital reserves transferred to share capital
2. Surplus reserves transferred to share capital
3. Surplus reserves for making up losses
4. Others
  (V) Special reserve                                                                                       -
1. Withdrawn amount of this year
2. Utilization amount of this year
  (VI) Others                                                                              -11,777,249.14                                                                                                          -11,777,249.14
IV. Balance at the ending of this year                                  2,575,950,754.00 8,891,695,526.72                79,040,568.71 1,246,228,257.72                   19,984,776,014.63 14,621,138,864.28 47,398,829,986.06





                                                                                                                            Full Text of 2015 Semiannual Report of China Merchants Property Development Co., Ltd.

                                                                                           Consolidated Statement of Owners' Equity (continued)
                                                                                                                      January - June 2015
                                            Prepared by: China Merchants Property Development Co., Ltd.                Unit: yuan

                                                                                                   Total shareholders' equity attributed to parent company
                                     Item                                                                                                                                                    Minority
                                                                                                              Less:      Other                            General                                             Total owners'
                                                                                                                                                                        Undistributed      shareholders'
                                                                         Share capital    Capital reserve   treasury comprehensive     Surplus reserve      risk                                                 equity
                                                                                                                                                                           profit             equity
                                                                                                             stocks     income                           provisions
I. Balances at the end of previous year                                 1,717,300,503.00 8,458,826,075.70             78,901,353.52 1,133,515,392.99                  15,336,958,642.03 12,191,665,237.52    38,917,167,204.76
Add: profit or loss from accounting policy changes
Fund for corrections of errors of previous period
Corporate merge under common control
Others
II. Balances at the beginning of this year                              1,717,300,503.00 8,458,826,075.70             78,901,353.52 1,133,515,392.99                  15,336,958,642.03 12,191,665,237.52    38,917,167,204.76
III. Increased/decreased amount this year (“-” indicates decrease)     858,650,251.00     70,931,578.66                               112,712,864.73                 3,326,619,449.19    460,697,764.31     4,829,611,907.89
  (I) Total comprehensive income                                                                                                                                       4,263,636,555.36   1,246,213,906.48    5,509,850,461.84
  (II) Capital paid in and reduced by shareholders                                         929,581,829.66                                                                                  439,818,386.34     1,369,400,216.00
1. Ordinary share invested by shareholders                                                                                                                                                1,360,260,617.14    1,360,260,617.14
2. Capital invested by other equity instruments holders                                                                                                                                                                        -
3. Amounts of share-based payments recognized in shareholders' equity                        9,113,603.33                                                                                                         9,113,603.33
4. Others                                                                                  920,468,226.33                                                                                 -920,442,230.80           25,995.53
  (III) Profit distribution                                                                                                             112,712,864.73                  -937,017,106.17 -1,225,334,528.51    -2,049,638,769.95
1. Appropriation to surplus reserves                                                                                                    112,712,864.73                  -112,712,864.73
2. Appropriation of general risk reserves
3. Distribution to owners (or shareholder)                                                                                                                              -824,304,241.44 -1,225,334,528.51    -2,049,638,769.95
4. Others
  (IV) Internal carried-forward of shareholders’ equity                 858,650,251.00   -858,650,251.00
1. Capital reserves transferred to share capital                         858,650,251.00   -858,650,251.00
2. Surplus reserves transferred to share capital
3. Surplus reserves for making up losses
4. Others
  (V) Special reserve
1. Withdrawn amount of this year
2. Utilization amount of this year
  (VI) Others
IV. Balance at the ending of this year                                  2,575,950,754.00 8,529,757,654.36             78,901,353.52 1,246,228,257.72                  18,663,578,091.22 12,652,363,001.83    43,746,779,112.65





                                                                                                                       Full Text of 2015 Semiannual Report of China Merchants Property Development Co., Ltd.

                                                                  Statement of Equity Changes of Parent Company Owner
                                                                                              January - June 2015
Prepared by: China Merchants Property Development Co., Ltd.                 Unit: yuan
                                                                                                                                   Current year
                                  Item                                                                                        Other
                                                                                                      Less: treasury                          Special                        Undistributed      Total owners'
                                                                  Share capital    Capital reserve                        comprehensiv                    Surplus reserve
                                                                                                         stocks                              reserves                           profit             equity
                                                                                                                            e income
                                                                 2,575,950,754.0   8,077,543,540.8                                                        1,195,276,864.7                      17,471,038,060.7
I. Balances at the end of previous year                                                                                                                                     5,622,266,901.20
                                                                               0                 6                                                                      2
Add: profit or loss from accounting policy changes
Fund for corrections of errors of previous period
Others
                                                                 2,575,950,754.0   8,077,543,540.8                                                        1,195,276,864.7                      17,471,038,060.7
II. Balances at the beginning of this year                                                                                                                                  5,622,266,901.20
                                                                               0                 6                                                                      2
III. Increased/decreased amount this year (“-” indicates
                                                                                     2,628,681.52                                                                           -604,786,397.74    -602,157,716.22
decrease)
   (I) Total comprehensive income                                                                                                                                            219,517,843.54     219,517,843.54
  (II) Capital paid in and reduced by shareholders                                   2,628,681.52                                                                                                 2,628,681.52
1. Ordinary share invested by shareholders
2. Capital invested by other equity instruments holders
3. Amounts of share-based payments recognized in shareholders'
                                                                                     2,628,681.52                                                                                                 2,628,681.52
equity
4. Others
  (III) Profit distribution                                                                                                                                                 -824,304,241.28    -824,304,241.28
1. Appropriation to surplus reserves
2. Distribution to shareholders                                                                                                                                             -824,304,241.28    -824,304,241.28
3. Others
  (IV) Internal carried-forward of shareholders’ equity
1. Capital reserves transferred to share capital
2. Surplus reserves transferred to share capital
3. Surplus reserves for making up losses
4. Others
  (V) Special reserve
1. Withdrawn amount of this year
2. Utilization amount of this year
  (VI) Others
                                                                 2,575,950,754.0   8,080,172,222.3                                                        1,195,276,864.7                      16,868,880,344.5
IV. Balance at the ending of this year                                                                                                                                      5,017,480,503.46
                                                                               0                 8                                                                      2





                                                                                                                       Full Text of 2015 Semiannual Report of China Merchants Property Development Co., Ltd.

                                                             Statement of Equity Changes of Parent Company Owner (continued)
                                                                                              January - June 2015
Prepared by: China Merchants Property Development Co., Ltd.                 Unit: yuan

                                  Item                                                                                        Other
                                                                                                      Less: treasury                             Special                      Undistributed      Total owners'
                                                                  Share capital    Capital reserve                        comprehensiv                     Surplus reserve
                                                                                                         stocks                                 reserves                         profit             equity
                                                                                                                            e income
                                                                 1,717,300,503.0   8,927,054,193.0                                                         1,082,563,999.9                      17,159,074,056.0
I. Balances at the end of previous year                                                                                                                                      5,432,155,360.06
                                                                               0                 0                                                                       9
Add: profit or loss from accounting policy changes                                                                                                                                                               -
Fund for corrections of errors of previous period                                                                                                                                                                -
Others                                                                                                                                                                                                           -
                                                                 1,717,300,503.0   8,927,054,193.0                                                         1,082,563,999.9                      17,159,074,056.0
II. Balances at the beginning of this year                                                                                                                                   5,432,155,360.06
                                                                               0                 0                                                                       9
III. Increased/decreased amount this year (“-” indicates
                                                                 858,650,251.00    -849,510,652.14                                                         112,712,864.73     190,111,541.14     311,964,004.73
decrease)
   (I) Total comprehensive income                                                                                                                                            1,127,128,647.31   1,127,128,647.31
  (II) Capital paid in and reduced by shareholders                                    9,139,598.86                                                                                                 9,139,598.86
1. Ordinary share invested by shareholders
2. Capital invested by other equity instruments holders
3. Amounts of share-based payments recognized in shareholders'
                                                                                      9,113,603.33                                                                                                 9,113,603.33
equity
4. Others                                                                                25,995.53                                                                                                    25,995.53
  (III) Profit distribution                                                                                                                                112,712,864.73    -937,017,106.17    -824,304,241.44
1. Appropriation to surplus reserves                                                                                                                       112,712,864.73    -112,712,864.73
2. Distribution to shareholders                                                                                                                                              -824,304,241.44    -824,304,241.44
3. Others
  (IV) Internal carried-forward of shareholders’ equity         858,650,251.00    -858,650,251.00
1. Capital reserves transferred to share capital                 858,650,251.00    -858,650,251.00
2. Surplus reserves transferred to share capital
3. Surplus reserves for making up losses
4. Others
  (V) Special reserve
1. Withdrawn amount of this year
2. Utilization amount of this year
  (VI) Others
                                                                 2,575,950,754.0   8,077,543,540.8                                                         1,195,276,864.7                      17,471,038,060.7
IV. Balance at the ending of this year                                                                                                                                       5,622,266,901.20
                                                                               0                 6                                                                       2





Notes to Financial Statements of China Merchants Property Development Co., Ltd.
From January 1, 2015 to June 30, 2015
(Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)



     I. Company profile

    China Merchants Property Development Co., Ltd (hereinafter referred to as the Company and the Group when

the subsidiaries are referred to), originally named China Merchants Shekou Holdings Co., Ltd and founded in

Shenzhen, China, September 1990, is a joint venture through restructuring of China Merchants Shekou Port Service

Co., Ltd by China Merchants Shekou Industrial Zone Holdings Co., Ltd. (hereinafter referred to China Merchants

Shekou).


    In February 1993, the Company issued 27,000,000 Class A shares by way of public offering within the territory

of People's Republic of China and 50,000,000 Class B shares outside the territory of People's Republic of China as

approved by SFBF (1993) No. 358 Document issued by the General Office of the People’s Government of Shenzhen.

This made the total shares of the Company aggregate to 210,000,000 shares.    A share and B share issued by
the Company were listed on the Shenzhen Stock Exchange in June 1993.

      In July 1995, part of B shares of the Company was listed on the Singapore Stock Exchange
in the form SDR (Singapore Depository Receipts).

      In June 2004, the Company was renamed as China Merchants Property Development Co.,
Ltd. As of December 31, 2004, the total shares of the Company aggregated to 618,822,672
shares through dividend payout and distribution from 1994 to 2004.

      On January 18, 2006, the scheme of split structure reform of Class A shares was adopted at
relevant shareholder’ meetings of the Company, namely each holder of outstanding Class A
shares of the Company can acquire two Class A shares and cash of RMB 3.14 from
non-outstanding shareholders for every 10 outstanding Class A shares he or she held. After the
implementation of the scheme, the total shares of the Company remained unchanged.

      As approved by Doc.No.67 (ZJFZ[2006]) of China Securities Regulatory Commission, on
August 30, 2006, the Company preferably placed the full amount to the shareholders of the
original A share who waive part of 15,100,000 convertible bonds (with the par value of
RMB100 for each) of the Company which was distributed by the way of public offering to
institutional investors offline at fixed prices. This part of convertible bonds of the Company was
listed on Shenzhen Stock Exchange for trading from September 11, 2006 (―China Merchants
Convertible Bond‖ for short) and these bonds were converted into shares on March 1, 2007.

      On May 25 2007, the China Merchants convertible bond stopped trading and converted,
the non-converted bonds were repurchased by the Company. As result, the Company had a total
of 15,093,841 convertible bonds with the par value of RMB 1,509,384,100 converted to
115,307,691 shares; the remaining non-converted 6,159 bonds with the par value of RMB


Notes to Financial Statements of China Merchants Property Development Co., Ltd.
From January 1, 2015 to June 30, 2015
(Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)


615,900 were repurchased by the Company. As result, the total shares of the Company
aggregated to 734,130,363 shares.

      As approved by Doc.No.299 (ZJFXZ [2007]) of China Securities Regulatory Commission,
the Company issued 110,736,639 non-public shares to China Merchants Shekou (the
shareholder of the Company) on September 19, 2007. After this issuance, the total shares of the
Company aggregated to 844,867,002 shares.

      On March 17, 2008, the Scheme of Profit Distribution and Capitalization from Capital
Public Reserve for 2007 was reviewed and adopted at the annual shareholder meeting in 2007,
in which the Company made a profit contribution for every 10 shares with 3 shares based on
844,867,002 shares in total on December 31, 2007 and every 10 shares were distributed with 2
shares from capitalization of capital public reserve. After this distribution and conversion, the
total shares of the Company aggregate to 1,267,300,503 shares.

      As approved by Doc.No.989 (ZJXK [2008]) of China Securities Regulatory Commission ,
the Company publicly issued 450,000,000 shares to the shareholders of the original A share
on November 26, 2008, of which China Merchants Shekou purchased 279,349,288 shares. After
this issuance, the total shares of the Company aggregated to 1,717,300,503 shares.

      On April 14, 2014, the Scheme of Profit Distribution and Capitalization from Capital
Public Reserve to Capital Stock 2013 was reviewed and adopted at the annual shareholder
meeting in 2013, in which every 10 shares were distributed with 5 ordinary shares from
capitalization from capital public reserve based on the total 1,717,300,503 share at the end of
2013 . After this, a total of 858,650,251 shares were added and the total shares of the Company
aggregated to 2,575,950,754 shares.

     As of June 30, 2015, the total shares of the Company aggregated to 2,575,950,754 shares, of which there were

1,337,176,971 shares with trading limited conditions (accounting for 51.91% of total shares) and 1,238,773,783

shares without trading limited conditions (accounting for 48.09% of total shares).


      The Company is a property development company, mainly engaging in the property
development, operation and management and utilities (power) supply services.

      The controlling shareholder of the Company is China Merchants Shekou, and the ultimate
controller is China Merchants Group. The Shareholder's General Committee is the Company's
organ of authority and shall exercise decision right of such major events as preparation of
operational guideline, financing, investment, profit distribution, etc. The Board of Directors is
accountable to the Shareholder's General Committee and shall exercise the rights of




Notes to Financial Statements of China Merchants Property Development Co., Ltd.
From January 1, 2015 to June 30, 2015
(Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)


management and decision-making; the management is liable for the organization and
implementation of decisions of Shareholder's General Committee and Board of Directors, and
organization of production, operation and management of the Company.

         II. Scope of consolidated financial statements

    The consolidated financial statements of the Group involve 191 companies such as the Company and China

Merchants Real Estate (Shenzhen) CO., LTD.       Compared to last year, 11 companies including China
Merchants (Shanghai) Baoxin Property Co., Ltd. are added due to establishment, as well as 2
companies including Beijing Guangying Residential Property Development Limited due to
combination of enterprises not under the common control.

      For details, see Note ―VII Change in consolidation scope‖ and ―VIII Rights and interests in
other parties‖.

   III. Formulation basis of financial statements

      The financial statements were prepared on the basis of going-concern assumption, actual
trades, Enterprise Accounting System issued by the Ministry of Finance as well as accounting
policies and accounting estimates based on Note IV \"Significant Accounting Policies and
Accounting Estimates\".

   IV. Significant Accounting Policies and Accounting Estimates

      1. Statement for Compliance with Enterprise Accounting System

      The financial statements prepared by the Company fully comply with Accounting
Standards for Business Enterprise and demonstrate truly and completely the financial status of
the Company and the Group, operating performance and cash flow.

      2. Accounting period

      The fiscal year of the Group runs from January 1 to December 31 of each calendar year.

      3. Functional Currency

      Except as the overseas operational entity in the Note of \"53.(2) under VI.\", the Company
and other subsidiaries recognize RMB as their functional currency.





Notes to Financial Statements of China Merchants Property Development Co., Ltd.
From January 1, 2015 to June 30, 2015
(Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)


      4. Accounting methods for corporate merger under the same control and not under the
          same control

      The assets and debts acquired by the Group (as the merging party) through merging with
other enterprises under common control shall be measured as per the book value of the merged
party in the consolidated financial statements of the ultimate controller on the day of merger.
The difference between the book value of net assets acquired and the book value of the
combination paid is used to adjust the capital reserves, and the retained earnings are adjusted in
case of insufficient capital reserves.

     Regarding combination not under common control, the recognizable assets, liabilities and
 contingent liabilities of the seller are measured upon fair value on the purchase day. The
 merger cost is the sum of cash or the fair value of non-cash assets, issued or borne debts and
 issued equity securities paid by the Group for acquiring the control over the acquiree on the
 purchase day and all of the expenses incurred to the Group directly relevant to the merging. In
 case of merging by step, the merger cost is the sum of the cost of every single transaction.
 Where the merger cost is more than acquired definable net assets fair proportion of the
 acquiree, the balance is recognized as goodwill. Where the merger cost is less than acquired
 definable net assets fair proportion of the acquiree, the definable assets, debts, fair value of
 contingent liabilities and the fair value of the non-cash assets or issued equity securities as
 merger consideration are rechecked first, and in case the merger cost is less than acquired
 definable net assets fair proportion of the acquiree after recheck, the balance is included in
 current nonrevenue receipt.

      5. Preparation method of consolidated financial statements

      The Group incorporates all of the subsidiaries and structured entities under its control into
the consolidated financial statements.

      For any difference occurring in accounting policies and accounting periods between the
Company and its subsidiaries when preparing consolidated financial statements, necessary
adjustments shall be made based on accounting policies and periods of the Company.

      All transactions, significant balances and unrealized gains within the consolidation range
are reduced in the preparation of consolidated financial statements. For the subsidiaries, the
proportion of ownership equity not belonging to the parent company, current net profits and
losses, other comprehensive income and the proportion of the total comprehensive income
belonging to minority shareholder are included in ―Equity for minority shareholder‖, ―Profits
and losses for minority shareholder‖, ―Other comprehensive income for minority shareholder





Notes to Financial Statements of China Merchants Property Development Co., Ltd.
From January 1, 2015 to June 30, 2015
(Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)


―and ―Total comprehensive income for            minority shareholder‖ respectively in the consolidated
financial statements.

    For the subsidiaries under common control merged by the Group, the operation results and
cash flow of such subsidiaries are incorporated into the consolidated financial statements from
the beginning of the current period in which the merger is carried out. When preparing the
comparative consolidated financial statements, the relevant items in the financial statements of
the last year are adjusted based on the assumption that the reporting entity exists since the
ultimate controller has obtained the controlling right

    For the subsidiaries not under common control merged by the Group, the operation results
and cash flow of such subsidiaries are incorporated into the consolidated financial statements
from the day of the Group acquiring the control over the subsidiary. In preparation of
consolidated financial reports, financial statements of subsidiaries shall be adjusted based on the
fair value of recognizable net assets, liabilities and contingent liability defined on the purchasing
date.

    Where the Group disposed part of long-term equity investment in the subsidiaries without
losing control over of such subsidiaries, in the financial statements, the balance between the
income from disposal and the net assets proportion of the subsidiaries entitled by the disposed
long-term equity investment and continually calculated from the purchase day or day of merger
is adjusted as the capital stock premium of the capital public reserve and retained earnings is
adjusted in case of the capital public reserve not enough for deduction.

    Where the Group lost the control over the invested party for such reason as disposing
partial equity investment, the remaining equity was re-measured as per the fair value of such
equity on the day of losing controlling right when preparing the consolidated financial
statements. The balance between the sum of the consideration from the disposal of equity and
the fair value of the remaining equity and the net assets proportion of the subsidiaries entitled by
the disposed long-term equity investment and continually calculated from the purchase day or
day of merger is included in the investment income for the period and the goodwill is deducted.
Other consolidated income related to the equity investment of the original subsidiary shall be
transferred into current investment profit and loss upon losing control.

    Where the Group lost control over a subsidiary through multiple transactions and
step-by-step disposal of the equity of the subsidiary, and such multiple transactions to a package
deal, the multiple transactions shall be deemed one transaction in which the control in the
subsidiary was lost; however, the balance between the disposal price and the net assets
proportion of the subsidiaries entitled by the disposed long-term equity investment prior losing


Notes to Financial Statements of China Merchants Property Development Co., Ltd.
From January 1, 2015 to June 30, 2015
(Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)


control over the subsidiary was recognized as other comprehensive income and was transferred
to the profits and losses of current period at the time of losing control.

      6. Classification of joint arrangement and accounting methods for joint operation

      The joint arrangement of the Group includes joint operation and joint venture. For jointly
operated projects, the Group as a partner recognizes the assets and debts it holds independently
and proportionally as well as recognizes the income and expenses as agreed. Where purchase
and sale of an asset during joint operation does not constitute a business, only the part in the
profits and losses from the transaction belonging to other partners is recognized.

      7. Cash and cash equivalent

      Cash in the Cash Flow Statement refers to cash in hold and deposits which can be used for
payment at any time. Cash equivalents in the Cash Flow Statements refer to short-lived
(generally not more than 3 months) and highly liquid investments that are readily convertible to
known amounts of cash and which are subject to an insignificant risk of change in value.

      8. Foreign currency transaction and foreign currency statement translation

      (1)        Foreign currency transactions

      The transactions denominated in foreign currency of the Group are converted in the initial
recognition at the rate which is approximate to the spot exchange rate on the transaction day,
which shall be the spot exchange rate of the beginning of the month when the transaction
occurs.

      At the balance sheet date, the monetary items denominated in foreign currency are
translated to RMB at the spot exchange rate at the balance sheet date, and the balance between
the spot exchange rate at the balance sheet date and the rate in the initial recognition or on the
last balance sheet date is included in current profits and losses except for 1) the balance from
exchange of specific borrowings that is capitalized and included as part of the cost qualifying
asset; 2) the balance from exchange of hedge instrument adopted for evading the exchange risks
that is treated according to hedge accounting; 3) the balance from exchange arising from the
foreign currency non-monetary items available for sale (e.g. the stock) and that arising from the
change in the book value of the monetary items available for sale except for amortized cost is
recognized as other comprehensive income.

      Non-monetary items of foreign currency measured by historical cost still adopt spot
exchange rate of transaction date for conversion with functional currency amount unchanged.



Notes to Financial Statements of China Merchants Property Development Co., Ltd.
From January 1, 2015 to June 30, 2015
(Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)


As for the foreign currency non-monetary items measured by fair value, the spot exchange rate
on the date when the fair value is confirmed is adopted for conversion. The amount differences
between functional currency amount after conversion and the original functional currency
amount, processed as fair value changes (including change in exchange rate), are recognized
into current profits and losses or recognized into other comprehensive incomes.

      (2)        Foreign currency financial statement translation
      For the purpose of preparing the consolidated financial statements, the foreign currency
statements for overseas business will be converted into RMB, that is all assets and liabilities in
the balance sheet will be converted as per the exchange rate near to spot exchange rate on the
balance sheet date; the shareholders’ equity except for ―undistributed profit‖ will be converted
as per the spot exchange rate when it is incurred; all items in the income statement and those
reflecting the incurred amount of profit distribution will be converted as per the spot exchange
rate on transaction date; undistributed profit at beginning of the year should be the undistributed
profit at the end of last year after translation; undistributed profit at end of the year will be
calculated as per various items of profit distribution after translation, and; difference between
assets & liabilities after translation and total amount of shareholders’ equity will be listed
separately, as the translation difference in foreign currency statements, under the shareholders’
equity in the balance sheet.

      Cash flow of foreign currency and overseas subsidiaries will be converted as per the
exchange rate near to spot exchange rate on the date when cash flow is incurred; amount of cash
and cash equivalents affected by exchange rate changes will be listed separately, as the
adjusting item, under ―influence of exchange rate changes on cash and cash equivalent‖ in the
cash flow statement. Financial assets and liabilities are adopted under the asset and liability in
the balance sheet

      9. Financial assets and liabilities

      The Group recognizes one item of financial asset or financial liability when it becomes a
party of any financial instruments contract.

      (1)        Financial assets

    1)     Classification, recognition basis and measurement method of financial assets

      The financial assets of the Group are divided into the following categories in accordance
with investment purposes and economic substance: the financial assets at fair value through





Notes to Financial Statements of China Merchants Property Development Co., Ltd.
From January 1, 2015 to June 30, 2015
(Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)


profit or loss; held-to-maturity investments, loans and receivables; and available-for-sale
financial assets.

      The financial assets that are measured by fair value and the changes are recognized into
current profit or loss include trading financial assets and the financial assets that are measured
by fair value and the changes are recognized into current profit or loss when they are initially
recognized. The financial assets meeting any of the following conditions can be classified as trading financial
assets by the Group: they are acquired for the purpose of selling in the near future; they are derivative instruments,

other than the designated derivative instruments which are effective hedging instruments, or derivative instruments to

financial guarantee contracts, and the derivative instruments which are connected with the equity instrument

investments for which there is no quoted price in the active market, of which the fair value cannot be reliably

measured, and which should be settled by delivering the said equity instruments.      The financial instruments
meeting any of the following conditions can be designated, when they are initially recognized,
as financial assets which are measured at their fair value and of which the variation is
recognized into the current profits and losses: the designation can eliminate or obviously reduce
the discrepancies in the recognition or measurement of relevant gains or losses arisen from the
different measurement basis of such financial assets; mixed instrument containing one or more
embedded derivative instruments is designated, unless the embedded derivative instrument does
not significantly change the cash flow of the mixed instrument, or the derivative instruments
embedded in similar mixed instruments shall obviously not be separated from the relevant
mixed instruments; mixed instrument containing the embedded derivative instruments which
need to be split but could not be separately measured as of the acquisition date or subsequent
balance sheet dates. Such financial assets designated by the Group currently only include the
call option of convertible bond. For such financial assets, fair value is adopted for subsequent
measurement. Variations of fair value are recognized in the fair value variation profits and
losses; interest or cash dividends acquired during the asset holding period are recognized as
investment income; and the difference between its fair value and initial recognition amount shall
be recognized as investment profits and losses upon disposal, and fair value variation profits and
losses shall be adjusted simultaneously.

      Held-to-maturity investment refers to non-derivative financial assets which have fixed due
date and fixed or confirmed recovery amount and which the Group is determined and able to
hold till maturity. As to held-to-maturity investment, effective interest method is adopted for
subsequent measurement as per amortized cost. The profit or loss occurred by amortization,
impairment or derecognition are all recognized into current profit or loss.

      Receivables refer to non-derivative financial assets which have no quotation in active
market and fixed or determined recovery amount. Effective interest method is adopted for





Notes to Financial Statements of China Merchants Property Development Co., Ltd.
From January 1, 2015 to June 30, 2015
(Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)


subsequent measurement as per amortized cost. The profit or loss occurred by amortization,
impairment or derecognition are all recognized into current profit or loss.

      Available-for-sale financial assets are those non-derivative financial assets that are
designated as available-for-sale at initial measurement or are not classified in any of the three
preceding categories. For this kind of assets, the equity instrument investment with no price in
active market and its fair value not reliably measured and the derivative financial assets linked
with the equity instrument and settled through the delivery of the equity instrument are
subsequently measured as per the cost; those with quotation in active market and the fair value
reliably measured are measured as per the fair value and the changes in fair value are included
in other comprehensive income. Fair value is adopted for subsequent measurement for such
financial assets. In addition to exchange gains or losses generated from impairment loss and
foreign currency financial assets, changes in fair value of available-for-sale financial assets will
be directly included in shareholder' equity and the accumulative amount of the changes in the
fair value that is originally directly included in equity shall be transferred in current profit or
loss upon the derecognition of the financial assets. For the available-for-sale liability
instruments, the interest is calculated with actual interest rate during the holding period, together
with the cash dividend of the available-for-sale equity instrument investments shall be
recognized into current profits and losses as investment incomes when the invested company
distributes the dividend. The investments in equity instruments not quoted in an active market
and whose fair value cannot be reliably measured is subsequently measured based on the cost.

    2)     Recognition basis and measurement method for financial asset transfer

      Where a financial asset satisfies any of the following requirements, the recognition shall be
terminated: (1) the contractual rights for collecting the cash flow of the said financial asset are
terminated; (2) the said financial asset has been transferred with almost all risks and
remunerations thereof transferred to the transferee; (3) the said financial asset has been
transferred and the Group gives up the control over the financial assets even though it neither
transfers nor retains almost all risks and remunerations thereof.

      Where the Company neither transfers/retains almost all risks and remunerations in
connection with the financial assets nor gives up the control over the financial assets, it shall
recognize related financial assets as well as related financial liabilities according to its
continuing involvement in the transferred financial assets.

      If the overall transfer of financial assets meets the conditions for derecognition, the balance
between the following two amounts shall be recognized into current profits and losses: (1) book
value of transferred financial assets; (2)the sum of the consideration received from the transfer



Notes to Financial Statements of China Merchants Property Development Co., Ltd.
From January 1, 2015 to June 30, 2015
(Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)


and the accumulative amount of changes in the fair value that is originally and directly
recognized into other comprehensive income.

      If the partial transfer of financial assets does not meet the conditions of derecognition, the
overall book value of transferred financial assets between derecognition and non-derecognition
shall be amortized based on relative fair value. The balance between following two amounts
shall be recognized into current loss and profit; (1) the sum of the consideration received from
the transfer and the accumulative amount of changes in fair value that shall be amortized for
derecognition and recognized into other comprehensive income and (2) the balance of the
amortized of the aforesaid carrying amount.

    3)     Financial asset depreciation test and accounting methods

      The Group examines the book value of other financial assets except those which are
measured at their fair value and of which the variation is recorded into the profits and losses of
current period on each balance sheet date and accrues the provisions for impairment if any
objective evidences prove the impairment of the financial assets.

      In case of impairment of financial assets measured by amortized cost, the impairment
provision of assets is accrued based on the shortfall of book value over its present value
(excluding future credit losses that have not been incurred). The formerly recognized
impairment shall be reversed and recognized into the current profit or loss if there is objective
evidence showing that the financial assets are recovered and it objectively has relations with the
items happened after the impairment is recognized.

      If there is impairment loss of available-for-sale financial assets, the accumulated loss due
to the decline of fair value that is previously and directly included in the owners' equity shall be
transferred and recognized into impairment loss. As for available-for-sale debt instruments with
impairment affirmed, the fair value has been increased in the subsequent accounting period and
objectively has relations with the items happened after the recognition of former impairment,
the formerly recognized impairment shall be reversed and recognized into the current profit or
loss. As for available-for-sale debt instruments with impairment affirmed, the increased fair
value in the subsequent accounting period shall be directly included in the shareholder's equity.

      (2)        Financial liabilities

       1)     Classification, recognition basis and measurement method of financial liabilities





Notes to Financial Statements of China Merchants Property Development Co., Ltd.
From January 1, 2015 to June 30, 2015
(Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)


    Financial liabilities are divided into the following categories at the initial recognition: the
financial liabilities that are measured by fair value and whose changes are included in current
profit or loss, and other financial liabilities.

    For the financial liabilities measured with fair value and the changes recognized into
current profit or loss including trading financial liabilities and the financial liabilities that are
measured with fair value and the changes recognized into current profit or loss on initial
recognition, fair value is adopted for subsequent measurement; and all profits or losses from
change in fair value as well as dividend and interest income relevant to such financial liabilities
shall be recognized into current profits and losses.

    Other financial liabilities adopt effective interest method for subsequent measurement
according to amortized cost.

         2)    Derecognition of financial liabilities

    All of or part of the current obligations of financial liabilities have been canceled.
Derecognize the financial liabilities or part with obligations being derecognized. The balance
between partial book value and the consideration paid shall be included in the current profit or
loss.

    10. Provision for bad debts of accounts receivable

    The following standards shall be followed to determine the provision for bad debts of
accounts receivable: debt unit cancellation, bankruptcy, insolvency, serious shortage of cash
flow, production halt due to serious natural disaster and failure to pay back debts within
foreseeable times; the debt unit fails failure to perform its obligations three (3) years after due;
and other conclusive evidences showing that such debt cannot or is unlikely to be withdrawn.

    Possible bad debt losses are accounted by allowance method with separate impairment test
or that by portfolio taken at the end of the year, and provision for bad debts are accrued are
included in current profits and losses. For accounts receivable with conclusive evidence
showing that such accounts receivable cannot be recovered, such accounts receivable are
included into bad debt losses with the approval from the Group's management and bad debt
reserves are offset.

        (1)     Receivables of individual account with significant amount and accrued provision
for bad debt

Judgment       basis   or    amount     Receivable more than RMB 5 million shall be deemed as a



Notes to Financial Statements of China Merchants Property Development Co., Ltd.
From January 1, 2015 to June 30, 2015
(Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)


standard for significant single         significant single account
amount
                                        Individual impairment test will be made on the financial assets with
                                        significant single account. Financial assets with no impairment in
Accounts          receivable    with
                                        separate impairment test are included into financial assets portfolios
significant single amount and
                                        with similar characteristics of credit risk for impairment test.
accrued method for provision of
                                        Receivables with impairment recognized after individual testing are
bad debts by single account
                                        no longer included into financial assets portfolios with similar
                                        characteristics of credit risk for impairment test.


      (2)         Receivables for which the bad debts reserve is withdrawn based on the credit risk
feature portfolio

Basis for portfolio determination

                                        The portfolios are classified according to the credit risk features of
                                        the debtors and include mainly the receivables confirmed as not to be
                                        depreciated by independent test (including the single significant or
Portfolio 1
                                        insignificant receivable from the associated parties of the Group,
                                        government agencies and the joint venture, such as reserve funds and
                                        deposits). Such receivables are least impossible to become bad debts
                                        This portfolio includes receivables except for Portfolio 1 and the
                                        receivables for which single bad debts reserve is withdrawn. When
Portfolio 2                             withdrawing the bad debts reserve for the receivables of this
                                        portfolio, the Group adopts aging analysis method in combination
                                        with the past experience in this regard.
Accrued method for provision of bad account by portfolio

Portfolio 1                             No provision for bad debts

Portfolio 2                             Aging analysis


     1) Provisions for bad debts can be accrued with aging analysis method and the accruing
     proportion is as follow:

            Aging                      Accruing rate of account             Accruing rate of other receivables
                                            receivable (%)                                    (%)
Within        6       months
                                                   2
(inclusive)
From 6 to 12 months                                5



Notes to Financial Statements of China Merchants Property Development Co., Ltd.
From January 1, 2015 to June 30, 2015
(Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)


            Aging                     Accruing rate of account              Accruing rate of other receivables
                                            receivable (%)                                 (%)
1-2 years                                          20
2-3 years                                          50
Over 3 years                                      100


      (3)       Receivables for which single amount is insignificant but the bad debts reserve is
withdrawn independently

Reason for bad debt provision by        The single amount is insignificant and there is evidence showing that
single account                          it is possible not to recover contractual cash flow.
Method to charge provision for          The provision for bad debts is accrued based on the balance of the
bad debt                                present value of future cash flow lower than the book value balance.


      11. Inventories

      The inventories of the Group include mainly property development products, raw materials,
commodity stocks, low-value consumables and others.

      The property development products include the properties under construction (including
the land to be developed) and as-built properties (including the leased property available for
sale). Actual costs of real estate development products include land-transferring cost, supporting
infrastructure cost, construction & installation cost, loans before completion of the development
projects and other relevant cost during development. Actual costs of delivered real estate
development products are determined by specific identification of costs.

      Actual cost accounting is adopted for construction contract, including direct costs and
indirect costs from contract signing to completion of the contract and related to fulfillment of
the contract. The net amount after the offset of accumulated cost and accumulated recognized
gross profits       (loss) for the properties under construction and the settlement is listed as net
amount after offset in the balance sheet. Where the sum of accumulated cost and accumulated
recognized gross profits (loss) for the properties under construction is more than the settlement,
the balance is listed as inventories; where the latter is more than the former, the balance is listed
as account received in advance.

      Travel expenses, tender expenses, etc. for construction contract signing can be separately
distinguished and reliably calculated. For contracts probably to be concluded, expenses are
recognized into contract cost upon receiving the contract; otherwise, expenses are recognized
into current profits or losses.



Notes to Financial Statements of China Merchants Property Development Co., Ltd.
From January 1, 2015 to June 30, 2015
(Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)


      One-off amortization method is adopted for receipt of low-value consumables and other
inventories.

      The ending inventory is measured by the cost and net reliable value whichever is lower.
When the net reliable value of the property development product is less than the cost, the
inventory devaluation provision shall be withdrawn. Net reliable value refers to the amount of
the predicted sale price less predicted as-built cost and expenses arising from sale and taxes
during normal production and operation process. Estimates of net realisable value are based on
the most reliable evidence available at the time the estimates are made and take into
consideration the purpose for which the inventory is held and the influences of events occurring
after the balance sheet day.

      After the accrual of devaluation provision for inventory, where affecting factors for former
write-down of inventory value has disappeared, the write-down amount shall be recovered and
reversed in the formerly accrued depreciation provision , and reversed amount shall be included
in current profit or loss.

      12. Long-term equity investments

      The long-term equity investment of the Group includes mainly the investment to the
subsidiaries, associated enterprises and joint ventures.

      The basis for the Group to define joint control is that all participating parties or the
combination of the parties control the arrangement jointly and the policies relevant to the
activities of the arrangement must be agreed by such parties.

      The Group will be generally deemed to have significant impact on the invested entity if the
Group holds 20% (inclusive) to 50% of voting right of an invested entity directly or indirectly
through its subsidiaries. Where the Group holds less than 20% of voting right of an invested
entity, the Group’s significant impact on the invested entity will depend on whether the Group
has its representative in the Board of Director or any similar organ of power of the invested
entity, whether the Group participates in the formulation of financial and operation policies of
the invested entity, whether the Group has important deals with the invested entity, whether the
Group dispatches management personnel to the invested entity or whether the Group provides
the invested entity with key technical data.

      Any entity under the control of the Group is the subsidiary of the Group. The long-term
equity investment acquired through merging with an enterprise under common control, the book
value of net asset of the acquiree in the consolidated financial statements of the ultimate




Notes to Financial Statements of China Merchants Property Development Co., Ltd.
From January 1, 2015 to June 30, 2015
(Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)


controller on the day of merger is taken as the initial investment cost of the long-term equity
investment. Where the book value of net asset of the acquiree on the day of merger is negative,
the cost of the long-term equity invest is recognized as zero.

      Where the long-term equity investment is acquired thorough merging with an enterprise
not under common control, the merger cost is taken as initial investment cost. The merger cost
is the fair value of the assets given, debt occurred or borne and equity securities issued by the
Group for acquiring the controlling right of the acquiree on the day of merger

      Aside from the above long-term equity investment acquired by the merger of enterprises,
long-term equity investment acquired by cash payment adopts the actual paid purchase amount
as the investment cost; long-term equity investment acquired by issuance of equity securities
adopts the fair value of issued equity securities as the investment cost; long-term equity
investment invested by investors adopts the value reached in the investment contract or
agreement as the investment cost.

      The investment of the Group to the subsidiaries is calculated with cost method, and equity
method is applied for joint ventures and associated enterprises.

      For the long-term equity investment with cost method applied for subsequent measurement,
in case investment is added, the book value of the long-term equity investment cost is added
with the fair value of additional investment cost and resulting transaction expenses. The cash
dividend or profit distributed by an invested entity is recognized as current return on investment
based on the distributed amount.

      For the long-term equity investment with equity method applied for subsequent
measurement, the book value of the long-term equity investment is increased or decreased with
the change in the ownership equity of the invested entity. The proportion of net profit or loss of
the invested company to be enjoyed or assumed by the Group is confirmed by taking the fair
value of recognizable assets of the invested company upon obtaining the investments as the base,
and offsetting the proportion of internal transaction profits and losses occurring between the
associated enterprises and joint ventures which is due to the investing enterprise according to
shareholding proportion and adjusting the net profit of the invested unit.

      For disposal of long-term equity investment, the difference between the book value and the
actual received payment shall be recognized into current income. For the disposal of the
long-term equity investments which are calculated with equity method and recognized into the
owner equity due to the changes in owner equity other than the net profits and losses of the





Notes to Financial Statements of China Merchants Property Development Co., Ltd.
From January 1, 2015 to June 30, 2015
(Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)


invested company, the part initially recognized into the owner equity shall be carried over to
current income and losses in corresponding proportion.

      Where losing joint control over or significant impact on the invested entity is a result of
such fact as disposing partial equity investment, the remaining equity is calculated as the
finance asset available for sale and the balance between the fair value and the book value of the
remaining equity on the day of losing joint control or significant impact is included in current
profits and losses. For other comprehensive income of the original equity investment recognized
with equity method, the basis same as that of the invested entity directly disposing relevant asset
or debts is applied for accounting when the equity method is ceased to be used.

      Where losing control over the invested entity is a result of disposing partial long-term
equity investment and the Group has a common control over or have significant impact on the
invested entity by using the remaining equity, the equity method is applied, the balance between
the book value and disposal consideration of the disposed equity is included in the return on
investment, and the remaining equity is adjusted as if it was calculated with equity method since
the acquiring of such equity. In case the Group cannot have a common control over or have
significant impact on the invested entity by using the remaining equity, regulations for financial
assets available for sale are applied and the balance between the book value and disposal
consideration of the disposed equity is included in the return on investment, and the balance
between the fair value and book value of the remaining equity on the day of losing control is
included in current profits and losses.

      13. Investment property

      The investment property of the Group includes the leased land use right, the land use right
it is entitled to for assignment after appreciation, the leased properties and the properties it holds
for sale. Cost model is applied for measurement.

      The investment property of the Group is amortized with the average service life method.
Estimated service life, net residual value rate and annual amortization rate of investment
property are as follows:

                                                                       Estimated
                                                                        residual      Annual depreciation rate
   Type          Asset class            Depreciation years
                                                                       value rate              (%)
                                                                          (%)
                                                                                          Determined as per
Land     use                      Remaining service life of
               ——                                                         0         calculation of depreciation
rights                            land use right
                                                                                                 year
Houses and                        30 years or duration of land
               Steel structure                                              5                   ≥3.17
buildings                         use whichever is shorter



Notes to Financial Statements of China Merchants Property Development Co., Ltd.
From January 1, 2015 to June 30, 2015
(Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)

                Reinforced
                                     25 years or duration of land
                cement                                                      5                    ≥3.8
                                     use whichever is shorter
                structure
                Brick-concrete       20 years or duration of land
                                                                            5                    ≥4.75
                   structure         use whichever is shorter


      14. Fixed assets

      The Group's fixed assets are tangible assets that: (i) are held for use in the production or
supply of goods or services, for rental to others, or for administrative purposes; (ii) have useful
lives more than one year; and (iii) have unit value more than RMB 5,000.

      The fixed assets can be recognized only when their economic interests may flow into the
Group and their costs can be reliably measured. Fixed assets of the Group are classified as
houses and buildings, machines and equipment, transportation equipment, office facility, etc.

      All fixed assets, apart from those fixed assets that have been depreciated and accrued but
are still in use and those lands that are transferred into fixed assets separately according to actual
values, are depreciated and accrued by the Group. The average service life method is applied for
accrual of depreciation. The classification, depreciation years, estimated net residual value rate
and depreciation rate of fixed assets are as follows:

                                                                                 Estimated             Annual
     Type              Asset class              Depreciation years              residual value     depreciation
                                                                                  rate (%)             rate (%)
                                            30 years or duration of land                          ≥3.17
                   Steel structure
                                              use whichever is shorter
 Houses and        Reinforced cement        25 years or duration of land                          ≥3.8

buildings          structure                  use whichever is shorter
                   Brick-concrete           20 years or duration of land                          ≥4.75

                   structure                  use whichever is shorter
 Plant
                   ——                             5 to 20 years                     5           4.75-19
equipment
                   Passenger car                          5                           5
                   Vehicles           for                                                         11.88-19
 Transportati
                   production                       5 to 8 years
on equipment
                   Auxiliaries         of

                   vehicles
 Office            Instruments                            5                           5
equipment          Office goods                           5                           5



Notes to Financial Statements of China Merchants Property Development Co., Ltd.
From January 1, 2015 to June 30, 2015
(Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)


                                                                                Estimated           Annual
     Type              Asset class             Depreciation years             residual value   depreciation
                                                                                 rate (%)           rate (%)
                   Computer
                                                  3 to -10 years                               9.5-31.67
                   equipment
                   Furniture         and
                                                         5
                   appliances
                   Others                         5 to -10 years                      5        9.5-19


      The Group shall check the useful life of fixed assets, expected net salvage value and
depreciation method not later than the end of the year. Any change will be disposed as
accounting estimation change.

      15. Construction in progress

      The constructions in progress shall be transferred into the fixed assets based on the
estimated value since the date when they are in the intended use state, according to project
budget, cost or actual cost of the project, etc., and be withdrew and depreciated since the next
month.      The estimated value then is adjusted according to the actual cost after the completion
settlement has not been handled.

      16. Borrowing costs

      The borrowings used for fixed assets, investment property and inventories needing more
than 1 year to construct or product for intended use or sale are capitalized after the capital is
paid, borrowings are obtained and the construction or production begins, and are ceased to be
capitalized after the intended use or sale of the same is available. The subsequent borrowings
are in included in current profits and losses. If the asset in conformity with capitalization
conditions suffers abnormal disruption during the process of purchase and construction or
production, and the duration of the disruption exceeds three (3) consecutive months, the
capitalization of borrowing costs shall be suspended until the purchase and construction or
production activity of the asset resumes.

      In the property development project of the Group, the construction or production necessary
for intended use or sale of the assets mean that the land use right required for the construction
has been obtained and the construction (such as the pile foundation works or other substantial
construction works) has commenced; the asset available for intended use or sale mean the return
receipt of final acceptance records of the property project is received and the delivery conditions
has been met.



Notes to Financial Statements of China Merchants Property Development Co., Ltd.
From January 1, 2015 to June 30, 2015
(Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)


      In the case of loan specially borrowed for the acquisition and construction or production of
assets conforming to capitalization conditions, the capitalized amount is equal to actual interests
of the loan specially borrowed minus the interest income of the borrowed capital that has not
been used in the bank deposit or the income from temporary investment from the actual interests
incurred in the current period of specially borrowed capital. The interest amount of general loan
to be capitalized is calculated by multiplying the weighted average of the part of aggregate
assets expenditure in excess of the special loan expenditure of assets by the capitalization rate of
utilized general loan. The capitalization rate is determined on the basis of weighted average
interest rate of general loans.

      17. Intangible assets

      The intangible assets of the Group include the land use right and software acquired for the
construction of self-used properties. The land use right acquired for daily operation is calculated
as the inventory. Intangible assets are measured at actual cost upon acquisition, where, the
actual cost of intangible assets purchased consists of the actual payment and relevant expenses;
and the cost input by the investors in intangible assets is determined in accordance with the
value stipulated in the investment contract or agreement; unless the contract or agreement
stipulates that the value is not fair, then the actual cost is measured at the fair value.

      Land use right is amortized averagely according to transfer term counted from transferring
date; software and other intangible assets shall be amortized averagely according to the shortest
term among anticipated service life, beneficiary years stipulated in contract and valid terms
formulated by law. Amortized amount is included in relevant asset cost and current profit or loss
by beneficiaries. Estimated service life and amortization method of intangible assets with
limited service life are recheck at the end of each year, treatment of changes in accounting
estimates is adopted for any change.

      18. Impairment of non-financial asset excluding goodwill

      When the Group found that there was an indication of impairment of long-term equity
investment, investment property, fixed assets, project under construction, and intangible assets
with limit service life on each balance sheet date, the Group conducted impairment test. The
intangible assets with uncertain service life shall be tested in impairment at the end of the year,
no matter whether there is any sign of impairment.

      The recoverable amount of assets should be estimated on a single asset basis, or the
recoverable amounts of a single asset cannot be estimated, it is allowed to estimate the
recoverable amount of the asset group to which they said asset belongs. The recoverable amount



Notes to Financial Statements of China Merchants Property Development Co., Ltd.
From January 1, 2015 to June 30, 2015
(Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)


is determined to be the fair value of the asset or asset group with the disposal expense deducted
or the present value of estimated cash flow of the asset or asset group, whichever is higher. If
the book value of the asset is more than the recoverable amount, the difference will be
recognized as the impairment loss; and once the impairment loss is recognized, it shall not be
reversed in the later accounting periods.

      19. Goodwill

      The balance of the equity investment costs or consolidation costs not under the same
control greater than the fair value of the share of net assets or recognizable net assets of the
invested unit or seller acquired from enterprise consolidation is recognized as goodwill.

      Goodwill related to the subsidiary is separately listed on the consolidated financial
statements; goodwill related to the associated enterprises and joint ventures is included in the
book value of long-term equity investment.

      Impairment test is carried out for goodwill at the end of the year, no matter whether there is
any sign of impairment. The goodwill was, together with the related asset group or combination
of asset groups, subject to the impairment test. That is, the book value of goodwill was
reasonably apportioned to the asset group or combination of asset groups which benefit from the
synergy of business merger from the purchase date. If the recoverable amount of the asset group
or combination of asset groups of goodwill with apportionment is less than its book value, the
related impairment loss shall be recognized. Impairment loss is firstly amortized to the book
values of goodwill in asset group or asset group portfolio, and then deducted for the carrying
value of other assets in according to the percentage occupied of other assets (except goodwill) in
the asset group or asset group portfolio.

      20. Long-term deferred expenses

      The long-term unamortized expenses of the Group include the improvement expenditure of
fixed assets under operating lease and other expenses with a benefit period over 1 year. Such
expenses were amortized averagely in the benefit period. Where the long-term deferred
expenses fail to benefit the subsequent accounting periods, all amortized value that has not been
amortized yet shall be transferred to the current profits and losses.

      21. Employee remuneration

      The remuneration of employees in the Group includes short-term remuneration, welfare
after dimission, dismissal welfare and other long-term welfare.




Notes to Financial Statements of China Merchants Property Development Co., Ltd.
From January 1, 2015 to June 30, 2015
(Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)


      The short-term remunerations mainly include the employee’s salary and welfare expense of
employee. The actual short-term remunerations shall be recognized as the debt during the
accounting period when the employees provide service and included in current profits and
losses or related asset costs according to the benefit object.

      The welfare after demission mainly includes the basic endowment insurance premium and
unemployment insurance expense and is classified into the defined contribution plan and the
defined benefit plan according to the risk an obligation undertaken by the Company. For the
defined contribution plan, the sinking fund deposited to an independent entity for the service
provided by employee in the accounting period on the balance sheet date is recognized as the
debt and included in current profits and losses or related asset costs according to the benefit
object. There is no defined benefit plan in the Company.

      When the Group cannot unilaterally withdraw the dismissal welfare provided for the plan
on the cancellation of labor relationship or layoff proposal, or recognize the cost or expense
involved with the recombination of dismissal welfare or payment of such dismissal welfare
(whichever is earlier), the employee’s remuneration incurred by the dismissal welfare is
recognized as the debt and included in current profits and losses or related asset costs.

      22. Estimated liabilities

      When the businesses related to contingencies like external guarantee and pending actions
or arbitrations conform to the following conditions at the same time, they will be recognized as
the debt by the Group: the obligation is the current obligation undertaken by the Group; the
implementation of such obligation may probably cause the outflow of economic interests from
the Group; and the amount of that obligation can be measured reliably.

      23. Share payment

      The equity-settled share-based payment to exchange the provision of service by employees
is measured by the fair value of the equity instrument conferred to the employees on the grant
date. Where it is exercisable upon finishing the service within the waiting period or satisfying
the regulated performance conditions, based on the optimal estimation of the exercisable equity
instrument quantity within the waiting period, the fair value amounts are included in relevant
cost or expense after calculation by the method of line, with relevant capital surplus increased.

      24. Recognition and measurement of income

      The operation income of the Group mainly include the sales revenue, lease revenue and
property management revenue of real estate development products, utilities (electric power


Notes to Financial Statements of China Merchants Property Development Co., Ltd.
From January 1, 2015 to June 30, 2015
(Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)


supply) revenue and construction contract revenue and revenue recognition policies are as
follows:

      1)       The revenue of real estate development products are recognized under the
following conditions:

      A. Seller and Purchaser sign the sales contract and file a record in the land department;

      B. The revenue of real estate development products are completed and are qualified in
acceptance;

      C. The Company has received full house-purchase price or obtained the right of collecting
the full purchase price (e.g. the written commitment letter for releasing mortgage payment from
bank);

      D. The formalities of property delivery are handled or the customers are deemed to accept
the property according to the terms in the purchase contract.

      2)       Lease revenue: the lease revenue of investment property is recognized as the lease
revenue by the method of line according to rent agreed in the contract or agreement over the
lease term.

      3)       Utilities revenue: when electric power supply service has been provided and its
relevant economic benefit has obtained by the Company, meanwhile, relevant revenue and cost
can be measured reliably, the realization of utilities revenue is recognized.

      4)       Property management revenue: when property management service has been provided and its relevant
economic benefit has obtained by the Company, meanwhile, relevant revenue and cost can be measured reliably, the

realization of utilities revenue is recognized .


      25. Government subsidies

       Government subsidies refer to monetary assets and non-monetary assets acquired without
any charge from the government. Government subsidies can only be recognized upon meeting
the condition that the Company meets all conditions of government subsidy and is able to
receive the government subsidy.

       If government subsidies are monetary assets, it shall be calculated according to the
received; if the government subsidy is distributed subject to fixed quota standard or if there is
definite evidence showing that it is in conformity with relevant requirements of the financial
support policies, it shall be calculated according to the receivable amount; and if the





Notes to Financial Statements of China Merchants Property Development Co., Ltd.
From January 1, 2015 to June 30, 2015
(Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)


government subsidy is non-monetary assets, it shall be measured at the fair value; and if the fair
value fails to be obtained reliably, it shall be calculated according to nominal amount (RMB 1).

      Government subsidies in relation to assets are recognized as deferred income and allocated
equally within the service life of relevant assets, which will then be included in current profit or
loss. Government subsidies relevant with incomes and that are used to make up future expenses
or losses will be recognized as deferred income and recognized into current profits and losses
within the recognition period of relevant expenses; government subsidies used to make up
incurred relevant expenses or losses are included into current profits or losses directly.

      26. Deferred income tax assets and deferred income tax liabilities

      Deferred income tax assets and deferred income tax liabilities are measured in accordance
with the tax base of assets and liabilities and difference of its book value (temporary difference).
Deferred income tax assets shall be recognized based on the deductible losses of the income tax
payable in the following year in accordance with the tax law. A deferred tax liability shall not be
recognized if the temporary difference arises from the initial recognition of goodwill. The
deferred income tax assets and liabilities shall not be recognized to the extent that the temporary
difference arises from the initial recognition of an asset or liability in a transaction which
contains both of the following characteristics (i): the transaction is not a business combination
and (ii) at the time of the transaction, it affects neither accounting profit nor taxable profit (or
deductible loss). At the balance sheet date, the deferred income tax assets and deferred tax
liabilities shall be measured at the tax rates that are expected to apply to the period when the
asset is realized or the liability is settled, according to the requirements of tax laws.

      Deferred tax assets are recognized with a limit of the future taxable income which is likely
to be used by the Group for deducting any deductible temporary difference, deductible loss and
tax deduction.

      27. Leasing

      The leasing business of the Group is operating lease.

      The rent paid by the Group as the Lessee in the operating lease is included in related asset
costs or current profits and losses by the method of line over the lease term.

      28. Change in significant accounting policies and accounting estimates

     (1) Significant changes in accounting estimates





Notes to Financial Statements of China Merchants Property Development Co., Ltd.
From January 1, 2015 to June 30, 2015
(Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)


      The Company approved the Proposal for Alteration of Accounting Estimation on Fixed
Assets at the 18th Interim Meeting of the 7th Board of Directors on December 27, 2014,
allowing to include at a time the fixed assets with the unit value not more than RMB 5,000 into
the current cost, for which the depreciation calculation by year is not required. Such matter is
executed as of January 1, 2015. The Company adopts the prospective application.

   V. Taxation

     1.    Main taxes and tax rates

           Taxes                          Tax calculation basis                             Tax rate
Enterprise income tax Note1    Taxable income                                                Note 1
                               Sales revenue of real estate and property
Business tax                                                                                  5%
                               lease revenue
                               Commodity sales revenue and power
Value-added tax                                                                               17 %
                               supply revenue
                               Sales revenue of real estate - sum of            As per 30%-60% of progressive
Land value increment tax
                               deductible items                                       tax rate of super-rate
                               Transfer amount of land use rights and
Deed tax                                                                                      3%
                               property
                               70% of original value of the property or rent
Housing property tax                                                                     1.2 % or 12 %
                               revenue Note 2

City maintenance and
                               Business tax (or paid value added tax)                        1%-7%
construction tax
Education surtax               Business tax (or paid value added tax)                         3%


      Note 1: The profit tax rate of the Company’s subsidiary in Hong Kong is 16.5% as per the
Inland Revenue Ordinance of Hong Kong and the profit tax rate of the Company and other
subsidiaries in the Chinese Mainland is 25%.

      Note 2: The housing property tax is paid according to 70% of initial book value of assets
and specified tax rate for the fixed assets like house and rental property of the Company and the
subsidiaries in Shenzhen, and the new houses are exempted from the housing property tax three
years after the houses are filed a record in the tax authority; the housing property tax of the
subsidiaries in the other place shall be paid according to the local regulations.

   VI. Notes to Major Items in Consolidated Financial Statement

      With respect to the following data disclosed in the Financial Statements, unless otherwise
stated, \"the beginning of the year\" refers to January 1, 2015; \"the end of the period\" refers to




Notes to Financial Statements of China Merchants Property Development Co., Ltd.
From January 1, 2015 to June 30, 2015
(Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)


June 30, 2015; \"this period\" refers to the period between January 1, 2015 to June 30, 2015, and
the \"previous year\" refers to the period between January 1, 2014 to December 31, 2014. The
currency unit is RMB.

      1.    Monetary fund
                                              Balance at the end of the           Balance at the beginning of
                  Item
                                                      period                               the year
Cash                                                           289,924.34                           372,572.19
Bank deposit                                           19,039,335,443.97                     19,547,572,224.50
Other monetary fund                                      4,712,888,020.20                     3,435,441,646.33
Total                                                  23,752,513,388.51                     22,983,386,443.02
   Including: total amount deposited
                                                           1,882,938,967.60                     920,105,484.28
in the foreign countries


    Note: The balance of housing sales amount received in advance which is regulated under the Regulatory

Measures on Pre-sale Funds in the other monetary fund is RMB 4,686,811,540.66; the restricted monetary fund's is

RMB 26,076,479.54.

      2.    Notes receivable

     (1)     Category of notes receivable
                                           Balance at the end of the           Balance at the beginning of the
               Item
                                                   period                                   year
Bank acceptance bill                                      13,120,000.00                           4,390,000.00
Total                                                     13,120,000.00                           4,390,000.00

      3.    Accounts receivable

     (1)     Types of accounts receivable
                                               Balance at the end of the period
                                  Book balance            Provision for bad debts
           Type
                                           Proportion                    Proportion              Book value
                                Amount                     Amount
                                              (%)                            (%)
Accounts receivable of
individual account with
significant amount and         6,974,970.60             7.50      6,974,970.60         100.00
accrued provision for
bad debts
Receivables           of
individual account with
insignificant    amount        5,872,817.05             6.31      5,872,817.05         100.00
but      accrued     for
provision of bad debts
Accounts      receivable
with provision for bad
debts withdrawn based
on the credit risk



Notes to Financial Statements of China Merchants Property Development Co., Ltd.
From January 1, 2015 to June 30, 2015
(Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)

                                               Balance at the end of the period
                                  Book balance            Provision for bad debts
          Type
                                           Proportion                    Proportion             Book value
                                Amount                     Amount
                                              (%)                            (%)
feature portfolio
Portfolio 1                  36,827,991.84            39.59                                    36,827,991.84
Portfolio 2                  43,346,034.72            46.60       4,435,925.14         10.23   38,910,109.58
Subtotal of portfolio        80,174,026.56            86.19       4,435,925.14          5.53   75,738,101.42
Total                        93,021,814.21           100.00      17,283,712.79                 75,738,101.42


      Continued:

                                               Amount at the beginning of the year
                                    Book balance           Provision for bad debts
          Type
                                             Proportion                  Proportion             Book value
                                  Amount                    Amount
                                                (%)                         (%)
Accounts receivable of
individual account with
significant amount and          6,974,970.60              8.17    6,974,970.60        100.00
accrued provision for
bad debts
Receivables             of
individual account with
insignificant amount but        5,872,817.05              6.88    5,872,817.05        100.00
accrued for provision for
bad debts
Accounts        receivable
with provision for bad
debts withdrawn based
on the credit risk feature
portfolio
Portfolio 1                    33,254,915.38            38.96                                  33,254,915.38
Portfolio 2                    39,250,012.81            45.99 4,192,983.89             10.68   35,057,028.92
Subtotal of portfolio          72,504,928.19            84.95 4,192,983.89              5.78   68,311,944.30
Total                          85,352,715.84           100.00 17,040,771.54                    68,311,944.30

     1) Accounts receivable which single amount is significant and bad debts reserve is
           withdrawn at the end of period
                                                    Balance at the end of the period
Company name                                        Provision for bad         Accruing          Reason for
                         Accounts receivable
                                                          debts            proportion (%)        accruing
Customer I                        6,974,970.60            6,974,970.60         100.00          Unrecoverable
Total                             6,974,970.60            6,974,970.60

     2) Accounts receivable with bad debts provisions accrued by aging analysis method in
           the portfolio
               Aging                                       Balance at the end of the period




Notes to Financial Statements of China Merchants Property Development Co., Ltd.
From January 1, 2015 to June 30, 2015
(Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)

                                                                    Provision for bad          Accruing
                                        Accounts receivable
                                                                          debts             proportion (%)
Within one year                                 38,880,242.91               864,467.12                   2.22
1 to -2 years                                      680,085.13               136,017.03                  20.00
2 to -3 years                                      700,531.40               350,265.71                  50.00
Over 3 years                                     3,085,175.28             3,085,175.28                100.00
Total                                           43,346,034.72             4,435,925.14                  10.23


      (2) Provision for bad debts withdrawn and returned back (or taken back) in this period

      Provision for bad debts withdrawn in this period is RMB 362,533.28; bad debts reserve
returned back or taken back in this period is RMB 119,592.03.

      (3) Top five arrears balance of accounts receivable by the end of the period

                                                                     Proportion in
                                                                      total ending       Ending balance of
                         Balance at the end
 Company name                                         Aging            balance of        provision for bad
                           of the period
                                                                        accounts               debts
                                                                     receivable (%)
                                                   Within one
Customer I                      9,148,304.51                                      9.84             182,966.09
                                                      year
                                                   Within one
Customer II&