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个股公告正文

万 科B:2011年年度报告(英文版)

日期:2012-03-13附件下载

    2011 Annual Report
    Important Notice:
    The Board of Directors, the Supervisory Committee and the Directors, members of the Supervisory Committee
    and senior management of the Company warrant that in respect of the information contained in this report,
    there are no misrepresentations or misleading statements, or material omission, and individually and
    collectively accept full responsibility for the authenticity, accuracy and completeness of the information
    contained in this report.
    Chairman Wang Shi, Director Yu Liang, Director Sun Jianyi, Director Xiao Li, Independent Director Zhang
    Liping, Independent Director Paul Chan Mo Po attended the board meeting in person. Deputy Chairman Qiao
    Shibo, and Director Jiang Wei were not able to attend the board meeting in person due to their business
    engagements and had authorised Director Yu Liang to represent them and vote on behalf of them at the board
    meeting. Director Wang Yin was not able to attend the board meeting in person due to business engagements
    and had authorised Director Xiao Li to represent him and vote on his behalf at the board meeting. Independent
    Director Qi Daqing was not able to attend the board meeting in person due to business engagements and had
    authorised Independent Director Paul Chan Mo Po to represent him and vote on his behalf at the board
    meeting. Independent Director Hua Sheng was not able to attend the board meeting in person due to business
    engagements and had authorised Independent Director Zhang Liping to represent him and vote on his behalf at
    the board meeting.
    Chairman Wang Shi, Director and President Yu Liang, and Executive Vice President and Supervisor of Finance
    Wang Wenjin declare that the financial report contained in the annual report is warranted to be true and
    complete.
    To Shareholders ……………………………………………………….……………………….… 2
    Basic Corporate Information …………………………………………………………………..…4
    Accounts and Financial Highlights…………………………………………………………..……5
    Change in Share Capital and Shareholders………………………………………………………5
    Directors, Members of Supervisory Committee, Senior Management and Employees… 10
    Corporate Governance Structure………………………………………………………………. 16
    Summary of Shareholders’ Meetings ……………………………………………………… …19
    Directors’ Report…………………………………………………………………………… … 20
    Report of Supervisory Committee ………………………………………………………… .….53
    Significant Events ………………………………………………………………………………. 55
    Chronology of 2011………………………………………………………………………………..66
    Financial Report ………………………………………………………………………………….66
    Page 1
    I. To Shareholders
    This winter feels like déjà vu. Perhaps, there is nothing new under the sun, and history merely repeats itself.
    Since 2006, we have undergone a complete industry cycle. Another winter should not come as a surprise, nor
    should it bring fear --- for the factors determining the industry prospects and its upward trend have remained
    unchanged. So were the deep-rooted contradictions that had caused the short-term ripples in the market.
    Although they had gone through several adjustments, these contradictions were actually nothing new. On this
    subject, we had discussed before in our past annual reports.
    Of course, the ups and downs of a market cannot be compared to the changing seasons of Nature. Each season
    arrives in order, and to know when it is the exact time for a season change is not that difficult. Yet, it would be a
    much more difficult task to make a similar precise prediction for a change in market cycles. Reason is that the
    market is human affairs. Humans have expectations. They have the ability to draw conclusions on things with
    regular patterns and they will try to exploit them as fully as possible. Moreover, people vary in observations,
    estimations, expectations and actions, and because of these differences, each individual will have his/her
    influence, whether big or small, on the development of things with regular patterns. As such, human affairs are
    not constant, without change, which are the characteristics of affairs governed by the law of nature.
    Change and constancy
    What is invariable in a market is perhaps change, and what is certain is its characteristic of uncertainty. That is
    why we have been advocating “response over prediction” and opposing to over estimating and superstitiously
    believing in one’s own ability to make predictions – even though we have competitive edge in such a power.
    And maybe what is more important than “response” is “constancy” – unwavering faith and aspirations,
    understanding of the perpetual business logic and stable business strategy.
    In the past reports, we have discussed in detail the reasons for the existence of an enterprise, the mission of
    professional managers, and China Vanke’s unwavering operating principles. Each individual or organisation
    may make a different choice on these issues, but once the choice is made, it will normally remain unchanged, or
    even become a path dependence that is difficult to change.
    Business strategy, on the other hand, is normally more flexible. Most of the companies will choose, based on
    their evaluation of market changes, a strategy that they believe is appropriate at the time. However, when the
    short-term change in the market has become extremely complex or even reversed its direction within a period of
    time too short for a company’s strategy to take effect, frequent adjustments to the strategy may be futile. When it
    is easier to gauge the market’s long-term development direction than its short-time volatility, the stability of a
    business strategy is perhaps more important than its flexibility.
    China Vanke’s business strategies are relatively stable. These strategies include: insist on building small and
    furbished units; insist on quick turnover and a land bank just sufficient to meet its development needs; attach
    great importance to collaboration; prudent investment strategies and promoting prefabrication in residential
    development and green construction.
    Detailed discussion on quick turnover, prudent investment, collaboration and aspiration to become an
    outstanding green enterprise had been recorded in the previous reports. Here, we will elaborate more on the
    remaining three areas.
    Small dwellings and furbished units
    Among all the leading enterprises in the industry, China Vanke perhaps has the smallest average size of
    residential units, and it may be the first property developer to hand over homes with basic full furbishing. China
    Vanke’s commitment to build small and fully furbished residential units originates from its vision and not
    commercial considerations.
    China is a country where land is scarce compared to its population. As the nation is undergoing urbanisation at
    an unprecedented pace in world history, this will certainly lead to upsurges in the number of families and
    population density in cities faced with the influx of migrants from other parts of China. However, urban
    construction and land development cannot keep pace with urbanisation. With limited land resources, only
    through the economical use of land can the living needs of families be satisfied to the greatest extent. We were
    aware of this as early as at the end of 1990s, and since then have been adhering to our belief that small dwellings
    will be an inevitable trend. Starting from 2001, China Vanke has commenced research on building small
    Page 2
    residential units. In recent years, close to 90% of our products sold have been residential units smaller than 144
    sq m.
    During the urbanisation process, young people make up the mainstream floating population. Among the new
    city migrants, the proportion of singles or young families with no children is high. This implies there is
    enormous market potential for ultra small homes. The market gap in ultra small housing has led to the
    emergence of “share housing” in mega cities in recent years. We believe this situation reflects that there is no
    better choice. To cope with this situation, China Vanke has completed the research and development of ultra
    small residential units with an area below 20 sq m, and construction of these dwellings has commenced.
    As the customer base gets younger, urban families have greater demand for a rich and eventful life. To the
    young families, it is a cumbersome task to take care of their home furbishing, which is time consuming and
    requires much energy during the process. Compared with an individual client handling his or her own furbishing
    works, a company has significant advantages in pricing negotiation during procurement and quality control.
    Besides, waste generated from centralised furbishing is far less than individual home furbishing, which helps
    save energy and protect the environment. Centralised furbishing also avoids causing disturbance to neighbours
    who might have their furbishing works take place at different times. At present, apartments under construction
    of the Company are basically furbished units. A larger proportion of homes to be handed over by the Company
    will be furbished units.
    On the other hand, as a developer specialising in residential properties, we hope what we produce serve as
    dwellings and not investment products. Large residential units are normally considered highly scarce, while the
    furbishing of these units will only depreciate. As such, investment-driven home buyers prefer large units and
    roughcast housing. However, we want to build homes with people living inside; we do not want to see the units
    we sell left unoccupied for a long period of time. As a company, we are unable to identify and select customers.
    But this inability can be resolved by our product mix focusing on small and furbished units, which can enhance
    the percentage of end users in our clients.
    Fame or profit was never the main reason for China Vanke to decide to build small and furbished units.
    However, what it might not have thought of at the beginning was that this decision could bring actual revenue to
    the Company and its shareholders. At the time of market adjustment, especially when the market adjusted in
    response to purchase restriction policy, end-users’ demand for small and furbished housing appeared to be more
    stable. To shareholders, what is important is the rate of return and not simply the profit margin. Although the
    profit margin of furbished units is lower than that of roughcast housing, the rate of return of the former is higher
    than the latter, which is reflected in the continued rise in the Company’s return on net assets in recent years.
    Commercial value of housing industrialisation
    Compared to small and furbished units, China Vanke’s commitment to promoting housing industrialisation
    seems to be more idealistic. However, as a matter of fact, there is a clear logic in housing industrialisation in
    respect of commercial value.
    There are a number of ways to measure shareholders’ value of a company. Yet, two indicators are exceptionally
    important. One is the maximum size a company can grow, which determines the long-term growth of a
    company; the other is the return on assets of a company in continuous operation, which defines the long-term
    income level of the company.
    Quality is the lifeline of a company. It is not only the bottom line for its long-term profitability, but also the
    foundation for which the company can achieve sustainable development. To a company aspiring to become a
    lasting company and continuously improve its shareholders’ value, it should ask itself this question: how can it
    ensure product quality, while it keeps pushing the maximum size limits?
    Continued growth in scale will increase complexity in management. Under the workshop type of production,
    management tasks, including quality control,will become more and more difficult as product units increase.
    Industrialisation is the only way out of this dilemma. It can result in economies of scale as well as significantly
    reduce the impact of change in scale on complexity in management.
    In recent years, labour shortage in the construction industry and substantial increase in labour costs escalate the
    need for housing industrialisation. Even though the labour cost in the construction industry had more than
    Page 3
    doubled from 2009 to 2011, the proportion of new-generation peasant workers born after 1980s who are willing
    to work in the construction industry is less than half of that of their fathers’ generation. At present, new-
    generation peasant workers account for approximately 60% of the number of migrant workers from rural areas.
    For quite a long period of time in future, the amount of construction works for residential projects will keep
    growing. If we do not take the path of industrialisation, labour shortage will cause a huge bottleneck in the
    housing supply.
    China Vanke’s industrialisation has entered the stage of mass production. In the next few years, China Vanke’s
    prefabricated construction area will sustain rapid growth.
    Better days lie ahead
    China Vanke’s 2012 theme is “Run Towards the Sun”, meaning to keep working diligently in the toughest days
    to maintain healthy operations and make small improvements each day to build a sound company.
    We believe that only if we make good use of the time in winter, could we be ready for the arrival of Spring; only
    if we take one step at a time, can we reach our goal. We also believe that, only if we are healthy, could we be
    better prepared for seasons change; and only if we are honest and open, could we head in the right direction for
    better prospects. These are the words of encouragement for all the staff of China Vanke, as well as thoughts we
    want to share with our shareholders who have given us their trust and support over the years.
    II. Basic Corporate Information
    1.      Company name (Chinese): 万科企业股份有限公司
    Company name (English): China Vanke Co., Ltd. (“Vanke”)
    2.      Legal representative: Wang Shi
    3.      Secretary of the Board: Tan Huajie
    E-mail address: IR@vanke.com
    Securities Affairs Representative: Liang Jie
    E-mail address: IR@vanke.com
    4. Contact address: Vanke Center, No. 33 Huanmei Road, Dameisha, Yantian District, Shenzhen, the People’s
    Republic of China
    5.      Telephone number: 0755-25606666
    Fax number: 0755-25531696
    6. Registered address: Vanke Center, No. 33 Huanmei Road, Dameisha, Yantian District, Shenzhen, the
    People’s Republic of China
    Postal code: 518083
    Office address: Vanke Center, No. 33 Huanmei Road, Dameisha, Yantian District, Shenzhen, the People’s
    Republic of China
    Postal code: 518083
    7.      Website: www.vanke.com
    E-mail address: IR@vanke.com
    8. Media for disclosure of information: “China Securities Journal”, “Securities Times”, “Shanghai Securities
    News” , “Securities Daily” and an English publication in Hong Kong
    Website for publication of annual reports: www.cninfo.com.cn
    9.      Place for annual report collection: The Office of the Company’s Board of Directors
    10.     Stock exchange on which the Company’s shares are listed: Shenzhen Stock Exchange
    11.     Company’s share abbreviation and stock codes on the stock exchange:         Vanke A, 000002
    Vanke B, 200002
    12.     First registration date of the Company: 30 May 1984; location: Shenzhen
    Date of change in registration: 13 April 2010; location: Shenzhen
    13. Corporate legal person business registration no.: 440301102900139
    Page 4
    14.     Taxation registration code:        Local taxation registration code: 440300192181490
    State taxation registration code: 440300192181490
    15.     Organisation code: 19218149-0
    16.     The name and address of the certified public accountants appointed by the Company:
    KPMG Huazhen Certified Public Accountants: 8/F, Office Tower E2, Oriental Plaza, 1 East Chang An Avenue,
    Beijing
    III. Accounts and Financial Highlights
    1. Three-year financial information summary (Unit: RMB’000)
    2011                       2010                      2009
    Revenue                                                              67,709,396                47,763,550                 46,047,893
    Share of profits less losses of associates and jointly                    643,988                   291,703                  541,861
    controlled entities
    Profit before income tax                                            19,490,060                    14,542,867                9,293,003
    Income tax expense                                                  (7,890,454)                  (5,703,257)              (2,862,995)
    Profit for the year                                                 11,599,606                     8,839,611                6,430,008
    Profit attributed to minority                                       (1,974,731)                  (1,556,483)              (1,100,270)
    Profit attributed to Equity shareholders of the
    9,624,875                7,283,127                5,329,738
    Company
    Basic earnings per share                                                      0.88                     0.66                      0.48
    Diluted earnings per share                                                    0.88                     0.66                      0.48
    Dividend per share                                                            0.13                     0.10                      0.07
    2. Impact of IFRS Adjustments on Net Profit (Unit: RMB’000)
    Items                                                        Net profit for 2011
    As determined pursuant to PRC accounting standards                                                                    9,624,875
    As restated in conformity with IFRS                                                                                   9,624,875
    IV. Change in Share Capital and Shareholders
    1. Change in Share Capital
    (1) Change in the shares of the Company (Unit: share, as at 31 December 2011)
    Increase / decrease
    31 December 2010                     (+, -)                   31 December 2011
    Class of Shares
    Percentage of            Others                               Percentage of
    Quantity                                                        Quantity
    shareholding            (Note 1)                              shareholding
    I. Restricted Shares
    1. State-owned and
    State-owned legal person
    shares
    2. Shares held by domestic
    legal persons
    3. Shares held by domestic            19,364,778           0.18%               -938,394           18,426,384            0.17%
    natural persons
    4. Shares held by foreign
    investors
    Total number of restricted            19,364,778           0.18%               -938,394           18,426,384            0.17%
    shares
    II. Non-restricted Shares
    1.RMB-denominated ordinary         9,660,889,972          87.86%                938,394       9,661,828,366            87.87%
    shares (A shares)
    2. Domestic listed foreign         1,314,955,468          11.96%                      0       1,314,955,468            11.96%
    shares (B shares)
    Total number of                   10,975,845,440         99.82%                 938,394      10,976,783,834            99.83%
    non-restricted shares
    III. Total Number of Shares       10,995,210,218        100.00%                       0      10,995,210,218           100.00%
    Notes: During the reporting period, as there were changes in the Compnay’s senior management, the Shenzhen office of China
    Securities Depository & Clearing Corporation Limited, according to regulations, imposed or lifted the selling restrictions on the
    Page 5
    restricted shares held by the related senior management staff, leading to a decrease of 938,394 shares in the number of restricted
    tradable shares held by the Company’s domestic natural persons and a corresponding increase in the Company’s non-restricted
    tradable shares.
    Change in Restricted Shares
    Unit: share
    Name of            Number of         Number of        Number of        Number of         Reasons for      Date of release
    shareholder       restricted shares lifted restricted   restricted    restricted shares selling restriction   of lock-up
    held at the     shares during        shares      held at the end of                        period
    beginning of the       the year       increased         the year
    year                         during the year
    Wang Shi                     5,112,901                0                 0         5,112,901     Director
    3,079,684 managementsenior
    Yu Liang                                                                                     Director,
    3,079,684                0                 0                                staff
    Member of
    Ding Fuyuan                  1,513,806                0                 0         1,513,806   Supervisory
    Committee       The Shenzhen
    Sun Jianyi                    519,177                 0                 0           519,177     Director       office of China
    Member of          Securities
    Zhou Qingping                   15,000                0                 0            15,000   Supervisory       Depository &
    Committee           Clearing
    Former senior      Corporation
    Liu Aiming                   1,238,233        1,238,233                 0                 0 management staff       Limited,
    Senior         according to
    Ding Changfeng               1,115,745                0                 0         1,115,745 management staff     regulations,
    Senior          imposed or
    Xie Dong                     1,115,745                0                 0         1,115,745 management staff      lifted the
    selling
    Senior
    Zhang Jiwen                  1,161,712                0                 0         1,161,712 management staff restrictions on
    certain
    Senior           restricted
    Mo Jun                       1,161,712                0                 0         1,161,712 management staff
    shares held by
    Former senior        directors,
    Xu Hongge                    1,238,233        1,238,233                 0                 0 management staff
    members of the
    1,085,137 managementsenior
    Director,          Supervisory
    Xiao Li                      1,085,137                0                 0                                staff Committee and
    Senior             senior
    Wang Wenjin                  1,007,693                0                 0         1,007,693 management staff
    management
    Senior              staff
    Du Jing                              0                0          551,859            551,859 management staff
    Senior
    Zhou Weijun                          0                0          778,549            778,549 management staff
    Former senior
    Yuan Boyin                           0                0          207,664            207,664 management staff
    Total                19,364,778         2,476,466        1,538,072         18,426,384        -                 -
    (2) Issue and listing of shares
    A. Issue of shares and derivative securities in the past three years
    Issue of corporate bonds
    Approved by Zhengjian Xu Ke [2008] No. 1056 documents of China Securities Regulatory Commission
    (“CSRC”), the Company issued an announcement on 2 September 2008 that it would make a public issue of
    corporate bonds with a par value not exceeding RMB5.9 billion. The corporate bonds in this issue were
    classified into secured bonds and unsecured bonds. Both of them bore a fixed interest rate with a 5-year
    maturity. The issuer of the unsecured bonds had the right to raise the coupon rate at the end of the third year of
    the bond duration, while investors had the right to resell their bonds. Pursuant to the feedback on the price, the
    coupon rate of the Company’s secured bonds was 5.50%, and that of the unsecured bonds was 7.00%. The issue
    was completed on 9 September 2008 and the actual size of the issue of secured bonds was RMB3 billion, while
    the actual size of the issue of unsecured bonds was RMB2.9 billion. The Company’s corporate bonds started to
    trade on the Shenzhen Stock Exchange on 18 September 2008. The stock codes of the Company’s secured bonds
    and unsecured bonds are 112005 and 112006 respectively and their abbreviations are 08 Vanke G1 and 08
    Vanke G2 respectively.
    In August 2011, the Company decided not to adjust the coupon rate of 08 Vanke G2. The coupon rate of 08
    Vanke G2 will remain at 7.00% in the last two years of the bond duration. No investors chose to resell 08 Vanke
    G2 to the Company.
    Page 6
    During the year under review, there was no change in the number of issued corporate bonds.
    B. During the year under review, there was no change in the Company’s total number of shares.
    C. As at the end of the year under review, the Company did not have any internal employee shares.
    2. Information on Shareholders (as at 31 December 2011)
    (1) Information on shareholders
    Unit: share
    Total number of                                                     Total number of                916,525 (A shares: 894,736,B
    948,934 (A shares: 925,732, B
    shareholders                                                      shareholders ended
    shares: 23,202)                                                        shares: 21,789)
    ended 2011                                                                  Feb 2012
    Shareholdings of the top 10 shareholders
    Classification     Percentage of          Total           Number of       Number of
    of           shareholdings       number of           restricted     pledged or
    Name of shareholder
    shareholder                           shares held        shares held      lock-up
    shares
    State-owned
    China Resources Co., Limited (“CRC”)                                      14.73%     1,619,094,766                 0                 0
    legal person
    E Fund Shenzhen Stock Exchange 100
    Others                1.23%          134,693,711                 0                 0
    Exchange-Traded Fund
    Liu Yuansheng                                       Others                1.22%          133,791,208                 0                 0
    China Life Insurance Company Limited–
    Dividend Distribution–Individual Dividend-         Others                1.18%          129,454,917                 0                 0
    005L-FH002 Shen
    Bosera Theme Industry Stock Securities
    Others                1.13%          123,999,920                 0                 0
    Investment Fund
    Rongtong Shenzhen Stock Exchange 100 Index
    Others                0.85%             93,990,303               0                 0
    Securities Investment Fund
    National Social Security Fund – Portfolio 103      Others                0.74%             81,100,000               0                 0
    HTHK/CMG FSGUFP-CMG FIRST STATE                     Foreign
    0.71%             78,355,190               0                 0
    CHINA GROWTH FD                                   shareholder
    Bosera Value Growth Securities Investment
    Others                0.68%             75,000,000               0                 0
    Fund
    UBSAG                                               Others                0.68%             74,936,080               0                 0
    Shareholdings of the top 10 shareholders of non-restricted shares
    Name of shareholder                              Number of non-restricted                     Class of shares
    shares held
    Ordinary RMB-denominated shares
    CRC                                                                         1,619,094,766
    (A shares)
    E Fund Shenzhen Stock Exchange 100                                                              Ordinary RMB-denominated shares
    134,693,711
    Exchange-Traded Fund                                                                                       (A shares)
    Ordinary RMB-denominated shares
    Liu Yuansheng                                                                133,791,208
    (A shares)
    China Life Insurance Company Limited–
    Ordinary RMB-denominated shares
    Dividend Distribution–Individual Dividend-                                  129,454,917
    (A shares)
    005L-FH002 Shen
    Bosera Theme Industry Stock Securities                                                           Ordinary RMB-denominated shares
    123,999,920
    Investment Fund                                                                                              (A shares)
    Rongtong Shenzhen Stock Exchange 100 Index                                                       Ordinary RMB-denominated shares
    93,990,303
    Securities Investment Fund                                                                                   (A shares)
    Ordinary RMB-denominated shares
    National Social Security Fund – Portfolio 103                                  81,100,000
    (A shares)
    HTHK/CMG FSGUFP-CMG FIRST STATE                                                                    Domestic listed foreign shares
    78,355,190
    CHINA GROWTH FD                                                                                              (B shares)
    Bosera Value Growth Securities Investment                                                        Ordinary RMB-denominated shares
    75,000,000
    Fund                                                                                                         (A shares)
    Ordinary RMB-denominated shares
    UBSAG                                                                           74,936,080
    (A shares)
    “Bosera Theme Industry Stock Securities Investment Fund”, “National Social
    Security Fund – Portfolio 103” and “Bosera Value Growth Securities Investment
    Remarks on the connected relationship or action   Fund” are funds managed by Bosera Fund Management. Apart from the above-
    in concert of the aforementioned shareholders     mentioned relationships, it is not known as to whether there are other connections or
    persons deemed to be acting in concert under the Measures for the Administration of
    the Takeover of Listed Companies among the above-mentioned shareholders.
    Page 7
    (2) Number of shares held by the top 10 shareholders of restricted shares and the conditions of selling
    restrictions
    Unit: Share
    Increase in the
    Name of                     Date on which
    Number of                         number of
    shareholder of                   listing and
    No.                     restricted                    shares that may          Conditions of selling restrictions
    restricted                    trading may
    shares held                      be listed and
    shares                       commence
    traded
    1     Wang Shi           5,112,901
    2     Yu Liang           3,079,684
    3     Ding Fuyuan        1,513,806                                       The Shenzhen office of China Securities
    4     Zhang Jiwen        1,161,712                                       Depository & Clearing Corporation Limited,
    5     Mo Jun             1,161,712                                       according to relevant regulations, put selling
    ——             ——
    6     Ding Changfeng     1,115,745                                       restrictions on the Company’s shares held by
    7     Xie Dong           1,115,745                                       directors, members of the Supervisory
    8     Xiao Li            1,085,137                                       Committee and senior management staff
    9     Wang Wenjin        1,007,693
    10    Zhou Weijun          778,549
    (3) Controlling shareholders and beneficial controllers
    There were neither controlling shareholders nor beneficial controllers in the Company, and this situation
    remained the same during the year under review.
    (4) The single largest shareholder
    As at the end of the year under review, CRC was the single largest shareholder of the Company, holding an
    aggregate of 1,619,094,766 A shares of the Company, which represented 14.73 per cent of the total number of
    the Company’s shares.
    CRC was promoted and established by China Resources National Corporation (“CRNC”) in June 2003, with Mr
    Song Lin as its legal representative. CRC’s major assets include 100 per cent equity interests in China Resources
    (Holdings) Co., Ltd. in Hong Kong (“CRH”) and other assets in the PRC. Its core businesses include
    investments in finance, insurance, energy, transportation, electricity, communication, storage and logistics, food
    and beverage producers; investments in and management of retailers (including supermarket chains) and civil
    construction and engineering; manufacturing of petrochemicals, textile products and construction materials;
    processing, manufacturing, and sale of electronic and mechanical and electrical products; property management,
    exterior and interior decorations for civil construction projects; technical exchange, etc. The registered address
    of CRC is Unit 2801, 2805-06, 28/F China Resources Building, No. 5001 Shennan East Road, Luohu District,
    Shenzhen. CRC has a registered capital of approximately RMB16,467 million. CRNC holds 16,466,413,526
    State-owned shares in CRC, representing 99.9961% of CRC’s total share capital. China Resources International
    Tendering Co., Ltd. owns 650,000 State-owned legal person shares in CRC, representing 0.0039 per cent of
    CRC’s total share capital.
    CRNC has a registered capital of approximately RMB9,662 million. Its major assets are the equity interests in
    CRC. It is under the direct supervision of the State-owned Assets Supervision and Administration Commission
    of the State Council. Mr Song Lin is the legal representative of CRNC.
    The following chart shows the equity relationship between the single largest shareholder and the Company:
    Page 8
    State-owned Assets Supervision and
    Administration Commission of the
    State Council
    100%
    100%
    CRNC
    China Resources
    99.9961%                  International Tendering
    Co., Ltd.
    CRC
    0.0039%
    14.73%
    The Company
    3. Bondholdings of the Company’s bondholders (as at 31 December 2011)
    (1) Name of the top 10 bondholders of 08 Vanke G1 bonds and their bondholdings
    No. of bonds     Bondholding
    No.                                     Bondholder
    held          percentage
    New China Life Insurance Company – Dividend Distribution – Individual
    1                                                                                         5,548,262          18.49%
    Dividend – 018L-FH002 Shen
    2    China Petroleum Finance Co., Ltd.                                                   4,157,662          13.86%
    3    China Pacific Insurance (Group) Co. Ltd.                                            3,433,312          11.44%
    China Ping An Property and Casualty Insurance Company Limited –
    4                                                                                        2,698,727           9.00%
    Traditional – General Insurance Products
    5    China Life Insurance Company Ltd.                                                   2,619,042           8.73%
    6    Taiping General Insurance Co., Ltd.                                                 1,003,216           3.34%
    7    China Life Pension Company Ltd. – Internal Resources                               1,000,000           3.33%
    8    Haitong-BOC-Futong Bank                                                               897,256           2.99%
    China Life Property and Casualty Insurance Company Ltd. – Traditional –
    9                                                                                          820,000           2.73%
    General Insurance Products
    10    China Property & Casualty Reinsurance Company Ltd.                                    776,162           2.59%
    Note: China Life Pension Company Limited, which manages “China Life Pension Company Limited–Internal Resources”,
    is a majority-owned subsidiary of China Life Insurance Company Limited. China Life Property and Casualty Insurance
    Company Limited and China Life Insurance Company Limited, which manage “China Life Property and Casualty
    Insurance Company Limited–Traditional–General Insurance Products”, are majority-owned subsidiaries of China Life
    Insurance (Group) Company. Apart from the above-mentioned relationships, it is not known as to whether there are other
    connections or persons deemed to be acting in concert under the Measures for the Administration of the Takeover of Listed
    Companies among the above-mentioned bondholders.
    (2) Name of the top 10 bondholders of 08 Vanke G2 bonds and their bondholdings
    No. of bonds   Bondholding
    No.                                  Bondholder
    held        percentage
    1      ICBC Credit Suisse Credit Tianli Bond Securities Investment Fund               2,026,446         6.99%
    2      Harvest Stable Earning Bond Securities Investment Fund                         1,441,048         4.97%
    3      China AMC Bond Investment Fund                                                 1,040,607         3.59%
    4      China Ping An Trust & Investment Co. Ltd – CMB Furui Life Individual          1,019,410         3.52%
    ICBC Credit Suisse Asset Management Co., Ltd – ICBC – Assets of
    5                                                                                       889,101           3.07%
    Specific Clients
    Page 9
    6       National Social Security Fund – Portfolio 801                                   849,518            2.93%
    7       Fullgoal Tianfeng Surging Income Bond Securities Investment Fund                  565,000           1.95%
    8       China AMC Classic Allocation Hybrid Fund                                          550,000           1.90%
    9       CNPC Pension Scheme – ICBC                                                       522,491           1.80%
    10       GF Securities Co., Ltd.                                                           502,000           1.73%
    Note: “ICBC Credit Suisse Asset Management Co., Ltd – ICBC – Assets of Specific Clients” and “ICBC Credit Suisse Credit
    Tianli Bond Securities Investment Fund” are managed by ICBC Credit Suisse Asset Management Co., Ltd. “China AMC
    Bond Investment Fund”, “China AMC Classic Allocation Hybrid Fund” and “National Social Security Fund – Portfolio 801”
    are managed by China AMC Fund. Apart from the above-mentioned relationships, it is not known as to whether there are
    other connections or persons deemed to be acting in concert under the Measures for the Administration of the Takeover of
    Listed Companies among the above-mentioned bondholders.
    V. Directors, Members of Supervisory Committee, Senior Management and Employees
    1. Directors, Supervisors and Senior Management
    (1) Basic information
    Brief introduction to directors
    Wang Shi, male, born in 1951. He joined the military force in 1968. Wang Shi changed his career in 1973 and
    worked in the Water and Electrical supply department of Zhengzhou Railway. Wang Shi graduated from
    Lanzhou Railway College in 1978 majoring in water supply studies. After graduation, he had worked for
    Guangzhou Railway Bureau, Foreign Trade and Economic Cooperation Committee of Guangdong Province, and
    Shenzhen Special Region Development Company. In 1984, he established “Shenzhen Exhibition Centre for
    Modern Science and Education Equipment”, the predecessor of China Vanke, and acted as general manager. He
    became chairman and general manager of China Vanke Co. Ltd. in 1988. Mr Wang no longer acted as the
    general manager with effect from 1999. At present, he is the chairman of the Company. Mr Wang is also a
    director of Sohu.com Inc, and an independent director of China Resources Land Limited (“CRL”), Shanghai
    Metersbonwe Fashion & Accessories Co., Ltd., Central China Real Estate Limited, and Modern Media Holdings
    Limited respectively. Chairman Wang Shi was a visiting scholar at Harvard University Asia Center in 2011.
    Qiao Shibo, male, born in 1954, graduated from the Jilin University in 1983 with a bachelor’s degree in Chinese
    Language and Literature. He had served as a department head at the Ministry of Foreign Trade and Economic
    Cooperation of the People’s Republic of China (now Ministry of Commerce), the deputy general manager and
    general manager of the Human Resources Department of CRH, the general manager and chairman of China
    Resources Petrochems (Group) Co., Ltd. In 2000, Mr Qiao served as the director and assistant general manager
    of CRH. During this period, he also served as the deputy managing director of China Resources Enterprise Ltd.
    and the chairman of China Resources Machinery & Minmetals (Holdings) Co., Ltd. In 2003, Mr Qiao was a
    director and deputy general manager of CRH, during which he also served as the chairman of China Resources
    (Jilin) Bio-Chemical Co., Ltd., the chairman of the board of China Resources Cement Holdings Ltd., the chief
    executive officer of China Huayuan Group Ltd., and the general manager of Sanjiu Medical & Pharmaceutical
    Co., Limited. In 2008, he was a director and general manager of CRH, as well as the vice chairman and
    president of China Resources Medications Group Limited, the chairman of China Resources Enterprise Limited,
    the chairman of China Resources Sanjiu Medical & Pharmaceutical Co., Ltd., and the chairman of Shandong
    Dong E E Jiao Co., Ltd. He is a director and general manager of CRH, and the chairman of China Resources
    Enterprise, Limited. He has been a director and the deputy chairman of the Company since 2010.
    Yu Liang, male, born in 1965. He graduated from the Faculty of International Economics Studies of Peking
    University with a bachelor’s degree in 1988. Mr Yu obtained a master’s degree in economics from Peking
    University in 1997. He had previously worked for Shenzhen Waimao Group. He joined the Company in 1990.
    He became the general manager of Shenzhen Vanke Financial Consultancy Company Limited in 1993 and the
    deputy general manager of the Company in 1996, and the executive deputy general manager and Supervisor of
    Finance of the Company in 1999. He has been the general manager of the Company since 2001 and a director of
    the Company since 1994. At present, Mr Yu is the president of the Company.
    Sun Jianyi, male, born in 1953. He graduated from Zhongnan University of Finance and Economics, majoring
    in finance studies. He is a senior economist. He worked at Wuhan branch, the People’s Bank of China in 1971
    and was appointed as deputy department head and director. He became deputy general manager of Wuhan
    Branch, the People's Insurance Company of China, Limited and the committee member of the Communist Party
    Committee in 1985. Between 1990 and 2003, Mr Sun acted as assistant to general manager, deputy general
    manager, executive deputy general manager and executive director for Ping An Insurance Company of China. In
    Page 10
    2003, he became the executive director, executive deputy general manager and deputy chief executive officer of
    Ping An Insurance (Group) Company of China, Limited. Since 2008, he has been the vice chairman and deputy
    chief executive officer of Ping An Insurance (Group) Company of China, Limited. At present, Mr Sun is the
    chairman of Ping An Bank Limited and a director of Ping An Life Insurance Company of China, Limited, Ping
    An Property & Casualty Insurance Company of China, Limited, and Ping An Annuity Insurance Company of
    China, Limited, as well as a non-executive director of China Insurance Protection Fund Company Limited (中国
    保险保障基有限责任公司). He has been a director of the Company since 1995. He became an executive
    director in 1997 and deputy chairman of the Company in 1998. He was an independent director of the Company
    from 2001 to 2008. He became the convener of the remuneration and nomination committee and a member of
    the audit committee in 2005. He has become a director and a member of the remuneration and nomination
    committee of the Company since 2008.
    Wang Yin, male, born in 1956. He graduated from Shandong University with a bachelor’s degree in economics.
    He also obtained a master’s degree in Business Administration from the University of San Francisco. Mr Wang
    had worked in the Foreign Economic and Trade Cooperation Department. He became the deputy officer of
    CRNC in 1984, deputy general manager of the Human Resources Department of CRH in 1994, and the general
    manager of China Resources Construction (Holdings) Ltd., a subsidiary of CRH, in 1996. He is the vice
    chairman of CRH and the chairman of CRL. He has been a director of the Company since 2002.
    Xiao Li, female, born in 1964. She graduated from Wuhan University, majoring in English Literature in 1984.
    She obtained a master’s degree in Business Administration from China Europe International Business School in
    2000. She had worked in Central South University of Technology, China Technology Data Import & Export Co.
    and Mitsubishi Corporation Shenzhen Office. She joined China Vanke in 1994, and had since become the
    deputy director and director of the General Manager’s Office, as well as the director of the Office of the
    Company’s Board. From 1995 to 2009, she was the secretary of the Board of Directors. She has been a director
    of the Company since 2004, and a member of the investment and decision-making committee of the Board of
    the Company since 2005. Since 2007, she has been an executive vice president of China Vanke.
    Jiang Wei, male, born in 1963. He graduated from Foreign Economy and Trade University and obtained a
    master’s degree in international business and finance. He joined CRNC in 1988 and CRH in 1990. He became
    the general manager of the Finance Department of CRH in 1999 and a director of CRH in 2000. Mr Jiang
    became a director and financial controller of CRH in 2002, a director of CRC in 2005. At present, Mr Jiang is a
    director and deputy general manager of CRH and CRNC, a director of China Resources Financial Holding
    Company Limited, and a non-executive director of China Asset (Holdings) Limited, an executive director of
    Cosmos Machinery Enterprises Limited and an independent non-executive director of Greentown China
    Holdings Limited. He became a member of the Supervisory Committee of the Company in 2001 and has been a
    director of the Company since 2005. He has been a member of the audit committee and a member of the
    investment and decision-making committee of the Board of the Company since July 2005.
    Brief introduction to independent directors
    Qi Daqing, male, born in 1964. Mr Qi graduated from College of Business, Michigan State University in the
    USA and obtained a PhD in accountancy. Mr Qi obtained a master’s degree in management from University of
    Hawaii in the USA and a dual bachelor’s degree in biophysics and international journalism from Fudan
    University. He had worked for The Chinese University of Hong Kong and Eli Broad Graduate School of
    Management of Michigan State University in the USA, Center for East-west Studies in the USA and special
    correspondent foreign affairs department in Xinhua News Agency. He is currently a professor and vice president
    of Cheung Kong Graduate School of Business, and a member of American Accounting Association. He is also
    an independent director of several companies listed on NASDAQ, New York Stock Exchange (NYSE) and The
    Stock Exchange of Hong Kong Limited. He has become an independent director, convener of the remuneration
    and nomination committee and a member of the audit committee of the Company since 2008.
    Zhang Liping, male, born in 1958, graduated from Beijing Institute of Foreign Trade in 1980. He obtained his
    master’s degree in international affairs and international law from St. John’s University, the USA, in 1987. Mr
    Zhang had worked for the Ministry of Foreign Trade and Economic Cooperation (now Ministry of Commerce)
    and had served as director of the Investment Banking Division of Merrill Lynch, the USA, managing director
    and head of Greater China Region of Dresdner Bank, Germany, managing director of Pacific Concord Holdings
    Limited, Hong Kong, and chief executive officer of Imagi International Holdings Ltd, Hong Kong. In 2004, Mr
    Zhang joined Credit Suisse First Boston and is currently a member of the Global Investment Banking
    Department Operating Committee and vice chairman of Global Investment Banking Department and CEO
    Page 11
    (China) of Credit Suisse Group. Mr Zhang is also an independent non-executive director of the board of
    Zhejiang Expressway Co., Ltd. He has become an independent director, convener of the investment and
    decision-making committee and a member of the remuneration and nomination committee of the Company since
    2010.
    Paul Chan Mo Po, male, born in 1955. He graduated from Business Administration Department of New Asia
    College, The Chinese University of Hong Kong in 1977 and obtained a master’s degree in business
    administration from The Chinese University of Hong Kong in 1984. He had served as president of Hong Kong
    Institute of Certified Public Accountants, and the chairman of the Association of Chartered Certified
    Accountants-Hong Kong Branch. He was awarded Medal of Honour by The Government of the Hong Kong
    SAR in 2006 and was appointed as Justice of the Peace in 2007. At present, he is a legislative councillor
    (Functional Constituency – Accountancy) in Hong Kong SAR, chairman of Legal Aid Services Council, the
    chairman of the professional services advisory committee of Hong Kong Trade Development Council, the co-
    chairman of Crowe Horwath (HK) CPA Limited, a trustee and associate professor of The Chinese University of
    Hong Kong, adjunct professor of City University of Hong Kong, and a honorary professor of Hong Kong Shue
    Yan University. He is an independent non-executive director of HKSE-listed The Wharf (Holdings) Limited,
    Hong Kong Economic Times Holdings Limited, and China Communications Services Corporation Limited. He
    has become an independent director and convener of the audit committee of the Company since 2011.
    Hua Sheng, male, born in 1953 in Yangzhou, Jiangsu Province. He graduated from the Department of Political
    Economy of Nanjing Institute of Technology (currently Southeast University), with a bachelor’s degree in 1982.
    In 1985, he obtained a master’s degree from the Finance Department of Graduate School of The Chinese
    Academy of Social Sciences. He holds a PhD in economics of Wuhan University, and has studied, and engaged
    in research and teaching at the University of Oxford and the University of Cambridge. At present, he is the
    president of Yanjing Overseas Chinese University, and a professor and PhD Supervisor of Beijing Normal
    University. He is also an executive deputy chairman of China Federation of Overseas Chinese Entrepreneurs,
    and deputy chairman of Beijing Returned Overseas Chinese Federation. In 1986, he was among the first group
    of nationally accredited experts with outstanding contributions. He is the author and proponent of dual-track
    price system, State-owned assets management system and share segregation reform. He was a winner of China
    Economic Theory Innovation Award and Sun Yefang Economic Prize. He has been an independent director of
    China Vanke since 2011.
    Brief introduction to members of the Supervisory Committee
    Ding Fuyuan, male, born in 1950. He holds a tertiary qualification. He had worked in Guangdong Provincial
    Tourism Department, South China Sea Oil Joint Service Corporation, South China Petroleum Shenzhen
    Development Service Corporation and Nanhai Huaxin Group. He joined China Vanke in 1990 and became the
    deputy director of the General Manager’s Office in February 1991. In October 1991, he became the manager of
    the Human Resources Department of the Company. He has been the secretary of the Communist Party
    Committee of the Company since 1995. He became a member of the first Supervisory Committee of the
    Company in 1993 and has been the Chairman of the Supervisory Committee of the Company since 1995.
    Wu Ding, male, born in 1965. He holds a bachelor’s degree in economics from Shanxi University of Finance
    and Economics and a master’s degree in Business Administration from China Europe International Business
    School. He joined CRNC in 1988 and CRH in 1993 and had served as project manager for the Enterprise
    Development Divison of CRH, chairman/general manager of China Resources Shanghai Co., Ltd. and deputy
    general manager of CRL. He is now the CEO of China Resources Financial Holding Co., Ltd., the chairman and
    CEO of China Resources Investment and Asset Management Company Limited, chairman of China Resouces
    City Transport and Infrastructure Investment Limited (华润城市交通设施投资有限公司), director of Cosmos
    Machinery Enterprises Limited and Harvest Capital Limited . He has been a member of the Supervisory
    Committee of the Company since 2010.
    Zhou Qingping, male, born in 1969. He graduated from Hunan University (former Hunan Institute of Finance
    and Economics) in 1993, with a bachelor’s degree in accouting. He is a registered accountant in the PRC. He
    had worked in Xiangcai Securities Co., Ltd. He joined China Vanke in 1995 and served as finance manager of
    Vanke Financial Consultancy Company Limited. He became financial controller of Chengdu Vanke Real Estate
    Co., Ltd. in 2000 and deputy general manager of the Company’s Risk Management Department in 2003. He has
    been a member of the Supervisory Committee of the Company and the general manager of the Company’s Risk
    Management Department since 2010.
    Page 12
    Brief introduction to senior management
    Yu Liang: For biography of Yu Liang, please refer to the “Brief introduction to directors”.
    Ding Changfeng, male, born in 1970. He graduated from Peking University with a bachelor’s degree in
    international politics in 1991. He obtained a master’s degree in global economics from Peking University in
    1998. He had worked for Jiangsu Yancheng Party School. He joined China Vanke in 1992 and became deputy
    director of the Research Centre of the General Manager’s Office of the Company in 1994. He was the chief
    editor of “Vanke Periodical” in 1995 and the assistant to general manager of Northeast Operation and
    Management Department of the Company in 1996. He was the deputy general manager of Northeast Department
    of the Company in 1997 and the deputy general manager of Shanghai Vanke Real Estate Co., Ltd. in 1998. He
    became the manager of the Company’s Corporate Planning Department in 1999, and the general manager of
    Shanghai Vanke Real Estate Company Limited in 2000. He had been deputy general manager of the Company
    since 2001. He is currently an executive vice president of China Vanke.
    Xie Dong, male, born in 1965. He graduated from Nanjing Engineering Institution in 1987 with a bachelor’s
    degree in wireless electricity. He received a master’s degree in business administration from Shanghai Jiao Tong
    University in 1997. He had worked in Shenzhen RGB Electronic Co., Ltd., the headquarters of China Shenzhen
    TV Company. He joined the Company in 1992. He became the manager of the Company’s Personnel
    Management Department in 1996, and the general manager and director of the Company’s Human Resources
    Department in 2000 and 2001 respectively. He became deputy general manager of the Company in 2004. He is
    currently an executive vice president of China Vanke.
    Zhang Jiwen, male, born in 1967. He graduated from Tsinghua University with a bachelor’s degree in
    architecture in 1987 and obtained a master’s degree in engineering in 1994 from Tsinghua University. He had
    worked in Guizhou Architecture and Design Institute, Shenzhen Jin Xiu Zhong Hua Development Co., Ltd.,
    Shenzhen Window of the World Co., Ltd., Guangzhou Hua Heng Design Company, and Ho & Partners
    Architects Engineers & Development Consultants Ltd. in Hong Kong. He joined Shanghai Vanke Real Estate
    Co., Ltd. in 2001 as deputy general manager and became the Company’s design director in 2003. He became
    deputy general manager of the Company in 2004. He is currently an executive vice president of China Vanke.
    Mo Jun, male, born in 1967. He graduated from Tsinghua University in 1991 with a bachelor’s degree in
    architecture. He obtained an MBA degree from the China Europe International Business School in 2004. He
    joined the Company in 1991. He was the manager of Shenzhen Wanchuang Construction and Design
    Consultants Co., Ltd. in 1996, the general manager of Shenzhen Vanke Real Estate Co., Ltd. in 1999, the
    general manager of Beijing Vanke in 2000, deputy general manager of the Company in 2000, and executive
    deputy general manager of the Company in 2001. He resigned from the Company and became executive deputy
    general manager of Beijing Rongke Zhidi Real Estate Co., Ltd. in 2003. He joined the Company again as deputy
    general manager in 2004. He is currently an executive vice president of China Vanke.
    Xiao Li: for biography of Xiao Li, please refer to the “Brief introduction to directors”.
    Wang Wenjin, male, born in 1966. He graduated from Zhongnan University of Economics and Law in 1994
    with a master’s degree. He is a registered accountant in the PRC. He had worked for Hefei No. 10 Plastic
    Factory and Anhui Optical Sophisticated Mechanic Research Centre of China Academy of Sciences. He joined
    the Company in 1993 and became the deputy manager of the Company’s Finance Department in 1998. He was
    the general manager of China Vanke’s Finance Department in 1999, and has been the Supervisor of Finance
    since 2002. Since 2004, he has been the financial controller of the Company. He is currently an executive vice
    president of China Vanke.
    Du Jing, male, born in 1971, graduated from the Southeast University in 1992 with a bachelor’s degree in
    architecture. He obtained a master’s degree in business administration from Cheung Kong Graduate School of
    Business in 2009. He had previously worked for China Overseas Construction (Shenzhen) Company Limited,
    China Overseas Development Company Limited and China Overseas Property Limited. Mr. Du Jing joined the
    Company in 2002, and was appointed as the general manager of Guangzhou Vanke in 2003. He became the vice
    president of the Company and general manager of Shenzhen Vanke Real Estate Co., Ltd. in 2007. He has been
    an executive vice president of China Vanke since January 2011.
    Zhou Weijun, male, born in 1956, graduated from Harbin Civil Engineering and Architecture Institute in 1988
    with a bachelor’s degree in industrial and civil engineering, He obtained his master’s degree in business
    Page 13
    management from Cheung Kong Graduate School of Business in 1999. Between 1980 and 1993, he worked for
    Infrastructure Construction Office of Anshan Institute of Iron and Steel Technology, Liaoning Province. He
    joined China Vanke in 1993, and served as general manager of Shenyang Vanke in the same year, and general
    manager of Beijing Vanke in 2004. He was vice president, and general manager of Beijing Vanke in 2007.
    Since 2009, he no longer served as general manager of Beijing Vanke. Since March 2011, Mr Zhou has been an
    executive vice president of China Vanke.
    Mao Daqing, male, born in 1969. He graduated from Southeast University with a bachelor’s degree in
    architecture in 1991. He graduated from Tongji University in 2002 with a PhD in administration and from
    Renmin University of China in 2006 with a doctoral degree in law. He worked for Beijing Uni-construction
    Group Co. Ltd., Hong Kong T. L. Loong Group, Thailand Xiechengchang Group, and Nikken Sekkei
    (Singapore) Limited during 1991 and 1996. He joined Capitaland, Singapore in 1996 and had served as senior
    project manager, chief representative, deputy general manager in Beijing district, and general manager of Bohai-
    Rim district. He joined China Vanke in 2009 as vice president, and general manager of Beijing Vanke. Since
    March 2011, Mr Mao has been an executive vice president of China Vanke.
    Tan Huajie, male, born in 1973. He graduated from the First Faculty of Mechanical Engineering of Huazhong
    University of Science and Technology in 1993. He joined the Company in 2001. He was appointed as the
    manager of the Customer Relations Department in 2003, and became the chief researcher and deputy director of
    the Office of the Board in 2004. Since 2008, he has been the director of the Office of the Board. He has been
    appointed as the secretary to the Board of Directors since h 2009.
    (2) Remuneration and changes in shareholdings of directors, members of Supervisory Committee and
    senior management during the year under review
    The Company continued to follow the principle of its remuneration policy, which is “to offer competitive
    salaries according to market principles to retain and attract high-calibre professionals”. The remuneration of the
    Company’s senior management members was determined not only with reference to market level but also in
    accordance with the growth in the overall operating results of the Company. In 2011, the Company sustained
    continued growth in its operating results. This was reflected in the adjustment to the remuneration of the senior
    management members employed by the Company, while the remuneration of those directors and members of
    Supervisory Committee who were not employed by the Company was determined at shareholders meeting.
    During the year under review, the aggregate amount of remunerations of the 14 directors, members of
    Supervisory Committee and senior management who were employees of the Company was RMB64.13 million.
    Among the directors and members of Supervisory Committee who were not employed by the Company, four
    directors, namely Mr Qiao Shibo, Mr Wang Yin, Mr Jiang Wei and Mr Sun Jianyi, each received a remuneration
    amount of RMB150,000. Independent Directors Mr Qi Daqing and Mr Zhang Liping each received independent
    director’s remuneration of RMB250,000; Independent Director Mr Paul Chan Mo Po received independent
    director’s remuneration of RMB190,000; Independent Director Mr Hua Sheng received no remuneration from
    the Company. Mr Wu Ding, a member of the Supervisory Committee, received a remuneration of RMB150,000.
    Mr Qiao Shibo, Mr Wang Yin, Mr Jiang Wei and Mr Wu Ding also received salaries from a connected entity of
    CRC. Mr Wang Shi also received remuneration for his role as independent director from CRL, a connected
    entity of CRC.
    Remuneration of directors, members of the Supervisory Committee and senior management of the
    Company is as follows:
    Any
    Numb        Total
    Numbe                                                        Paymen     remunerat
    er of   remunerat
    r of    Numbe             Numbe                               t of        ions
    Reas              share    ions (after
    Period   shares      r of              r of                           individu    received
    ons              option       tax)
    Se   A      of     held at    shares            share                               al        from
    Name     Position                                           for                 s      received
    x    ge   servic     the     held at           options                           income    sharehold
    chang             exerci    from the
    e      beginni   the end           granted                             tax        ers or
    es                sed    Company
    ng of    of 2011           (share)                          (RMB’0       other
    (share   (RMB’00
    2011                                                           00)     connected
    )          0)                    entities
    Wang     Chairma              2011.    6,817,2   6,817,2           6,600,0
    M    61                                                    0        8,570        6,470        Yes
    Shi        n                  3~        01        01                00
    Director
    Yu          ,                2011.    4,106,2   4,106,2           5,500,0
    M    47                                                    -        7,470        5,580        No
    Liang    Presiden              3~        45        45                00
    t
    Page 14
    Chairma
    n of
    Ding     Supervis            2010.   2,018,4   2,018,4
    M   62                                        -      -   4,970   3,540   No
    Fuyuan      ory                3~       08        08
    Committ                                           -
    ee
    Deputy
    Qiao                          2011.
    Chairma    M   58             0         0                -      -   150      30     Yes
    Shibo                          3~
    n
    Sun                          2011.
    Director   M   59           692,236   692,236            -      -   150      30     No
    Jianyi                         3~
    Wang                          2011.
    Director   M   56             0         0                -      -   150      30     Yes
    Yin                           3~
    Jiang                         2011.
    Director   M   49             0         0                -      -   150      30     Yes
    Wei                           3~
    Indepen
    Qi                          2011.
    dent     M   48             0         0                -      -   250      50     No
    Daqing                         3~
    Director
    Indepen
    Zhang                         2011.
    dent     M   54             0         0                -      -   250      50     No
    Liping                         3~
    Director
    Paul     Indepen             2011.
    Chan        dent     M   57             0         0                -      -   190      40     No
    3~
    Mo Po     Director
    Indepen
    Hua                          2011.
    dent     M   59             0         0                -      -    0       0      No
    Sheng                          3~
    Director
    Member
    of
    Wu       Supervis            2010.
    Ding        ory     M   47     3       0         0                -      -   150      30     Yes
    Committ
    ee
    Member
    of
    Zhou      Supervis            2010.
    Qingpi               M   43           20,000    20,000             -      -   1,770   1,020   No
    ory               3~
    ng      Committ
    ee
    Executiv                                          -
    Ding      e Vice             2001.   1,487,6   1,487,6         2,200,0
    Changf               M   42                                               0   4,730   3,360   No
    Presiden             2~       60        60              00
    eng           t
    Executiv
    Xie      e Vice             2004.   1,487,6   1,487,6         2,200,0
    M   47                                               0   3,770   2,580   No
    Dong     Presiden             3~       60        60              00
    t
    Executiv
    Zhang      e Vice             2004.   1,548,9   1,548,9         2,200,0
    M   45                                               0   4,730   3,360   No
    Jiwen     Presiden             8~       50        50              00
    t
    Executiv
    e Vice             2004.   1,548,9   1,548,9         2,200,0
    Mo Jun               M   45                                               0   4,440   3,130   No
    Presiden             10~      50        50              00
    t
    Director
    ,
    Shirley   Executiv   F   48   2007.   1,446,8   1,446,8         2,200,0   0   3,620   2,470   No
    L Xiao     e Vice              10~      49        49              00
    Presiden
    t
    Executiv
    Wang       e Vice             2007.   1,343,5   1,343,5         2,200,0
    M   46                                               0   3,770   2,580   No
    Wenjin    Presiden             10~      91        91              00
    t
    Executiv
    e Vice             2011.                             2,100,0
    Du Jing              M   41           735,812   735,812                   0   4,690   3,340   No
    Presiden             1~                                 00
    t
    Executiv
    Zhou       e Vice             2011.   1,038,0   1,038,0         2,000,0
    M   56                                               0   4,250   2,970   No
    Weijun    Presiden             3~       65        65              00
    t
    Executiv
    Mao       e Vice             2011.                             2,000,0
    M   43             0         0                       0   4,510   3,240   No
    Daqing    Presiden             3~                                 00
    t
    Page 15
    Secretar
    Tan                           2009.                               1,600,0
    Huajie    y to the   M   39               0         0                          0       2,840      1,870       No
    3~                                   00
    Board
    24,291,   24,291,           33,000,
    Total        -       -    -      -                            -                        65,570      4580        -
    627       627               000
    Note: As at 31 December 2011, the exercise price of the A-share stock options was RMB8.79, and the closing price of
    A shares was RMB7.74.
    (3) Change and reasons for the change in directors, members of the Supervisory Committee and senior
    management during the year under review
    During the year under review, Mr Wang Shi, Mr Yu Liang, Mr Qiao Shibo, Mr Sun Jianyi, Mr Wang Yin, Ms
    Xiao Li and Mr Jiang Wei were elected as the directors of the sixteenth session of the Board and Mr Qi Daqing,
    Mr Zhang Liping, Mr Paul Chan Mo Po and Mr Hua Sheng were elected as the independent directors of the
    sixteenth session of the Board at the Company’s 2010 Annual General Meeting.
    During the year under review, the Board appointed Mr Du Jing, Mr Yuan Boyin, Mr Zhou Weijun and Mr Mao
    Daqing as executive vice presidents of the Company. Mr Xu Hongge, Mr Liu Aiming and Mr Yuan Boyin
    resigned as executive vice presidents of the Company.
    2. Number and Composition of Employees
    As at 31 December 2011, there were 27,951 employees on the Company’s payroll, representing an increase of
    22.3 per cent from that of the previous year. The average age of the employees was 28.5.
    Among the entire workforce, there were 5,648 employees engaged in the property development division,
    representing an increase of 26.5 per cent from the previous year. The average age of the staff working for this
    division was 31 and the average years of service were 3.7; in terms of education level, 0.3 per cent held doctoral
    degree, 15.3 per cent with master’s degree, 69.3 per cent with university degree, 13.4 per cent with tertiary
    education and 1.7 per cent with education below tertiary level. Employees with university degree or above
    accounted for 84.9 per cent of the total staff in the property development division. The composition of
    employees in the property development division by job classification is as follows: 791 marketing and sales
    staff, accounting for 14.0 per cent and up by 23.2 per cent from the previous year; 3,863 professional
    technicians, accounting for 68.4 per cent and up by 53.0 per cent from the previous year; among the professional
    technicians, 1,887 were construction staff, accounting for 33.4 per cent, 661 were designers, accounting for 11.7
    per cent and 302 were cost management staff, accounting for 5.3 per cent; there were 222 project development
    staff, accounting for 3.9 per cent. The number of management staff, including those working in the departments
    of finance, audit, IT, legal, human resources, customer relations and data analysis as well as senior management
    staff, was 994, accounting for 17.6 per cent and down by 23.4 per cent from the previous year.
    There were 22,303 employees engaged in property management, up by 21.3 per cent from the previous year.
    The average age was 27.8 and the average years of service was 2.2. In terms of education level, 0.2 per cent held
    master’s degree, 8.9 per cent with university degree, 18.3 per cent with tertiary education and 72.6 per cent with
    education below tertiary level. Employees with tertiary education or above accounted for 27.4 per cent of the
    total staff in the property management division.
    VI.      Corporate Governance Structure
    1. Elaboration on the Company’s Compliance with the Requirements Set Out in the Regulatory
    Documents on Corporate Governance of Listed Companies
    As one of the first batch of companies listed in the PRC, the Company has always abided by its corporate
    values: to pursue simplicity, to be transparent, to be regulated and to be responsible. It had strictly complied with
    the requirements of the laws, regulations and regulatory documents governing listed companies and continued to
    fine-tune its corporate governance structure and regulate its operation. The Company had not faced with any
    problems with horizontal competition and connected transactions caused by partial restructuring.
    As a key pilot company to implement the Basic Internal Control Norms for Enterprises and its implementation
    guidelines, the Company had proactively enhanced its internal control in 2011. The Company formulated a
    proposal on the implementation of the Basic Internal Control Norms for Enterprises and set up a committee for
    the development of internal control in order to incorporate the implementation of the Basic Internal Control
    Norms for Enterprises into the Company’s internal control system. The Company adopted a management
    approach of “effective internal control” and attached great importance to taking effective actions to eliminate or
    Page 16
    minimise actual risks, in order to improve overall internal control. During the reporting period, the Company
    organised meetings on the implementation of the Basic Internal Control Norms for Enterprises and organised
    several staff training programmes on internal control to increase awareness and understanding of internal control
    within the Company. All the departments at the headquarters and frontline subsidiaries commenced the mapping
    of their existing internal control standards against the Basic Internal Control Norms for Enterprises. During the
    processing of comparing the existing system with each of the requirements specified in the relevant documents
    of the Basic Internal Control Norms for Enterprises including the implementation guidelines, any aspects of the
    existing system found to be deviated from the Basic Internal Control Norms for Enterprises had been rectified.
    Through the implementation of the Basic Internal Control Norms for Enterprises, the Company’s internal
    control and assessment ability have been further enhanced.
    In 2009, the Company established the “Inside Information and Insider Management System”, strengthening the
    management and prevention of inside information. During the year under review, no insider who had access to
    inside information had violated the laws to engage in insider trading.
    In 2011, the Company received The Best Board of Directors Award at the Seventh Session of the Gold
    Roundtable Awards organised by the Directors & Boards publication. The Company was awarded 2011 Best
    Board of Directors of Main Board Listed Companies in China organised by Moneyweek, received Golden Bull
    Award for Built to Last Companies and Investors’ Most Trusted Company Award organized by China Securities
    Journal.
    Corporate governance is a long-term commitment. In the future, the Company will continue to adhere to the
    principle of “professionalism + standardization + transparency”, and to further enhance its corporate
    governance.
    2. The Company’s Independence from Its Single Largest Shareholder in Business Operation, Staff,
    Assets, Organisation and Finance
    The Company continued to persist in maintaining complete independence from its single largest shareholder
    CRC and its connected companies with respect to business operation, staff, assets, organisation and finance, to
    ensure independence in its business integrity and operation autonomy.
    The Company has not disclosed any unpublished information to CRC, its single largest shareholder, or taken any
    other action that might violate the code of corporate governance.
    3. Execution of the Duties of the Independent Directors
    In 2011, all independent directors continued to give independent opinions and constructive advice to the
    Company on its remuneration scheme, stock option incentive plan, internal control development, external
    guarantee issues, derivatives investment and accounting treatment. With the active participation of the
    independent directors, the corporate governance was further enhanced.
    In 2011, the details of the attendance of independent directors at Board meetings, specialised committee
    meetings and their participation in voting by correspondence at Board meetings and specialised committee
    meetings are as follows:
    Number of           Number of      Number of     Number of
    resolutions voted   specialised    specialised   general
    by                  committee      committee     meetings
    Number of
    Name of                        Attendance inAttendance by Absence correspondence      meetings       meetings      attended
    Board
    independent    meetings held person (times) proxy (times) (times) including           needed to be   attended      (times)
    directors                                                         resolutions         attended       (times)
    during the year                                    considered by       (times)
    specialised
    committees
    Qi Daqing           5              5            0           0           17                8              8            1
    Zhang Liping         5              4             1          0            13                4              4            1
    Paul Chan Mo
    4              3             1          0            11                3              3            1
    Po
    Hua Sheng           4              3             1          0            8                 0              0            1
    4. The Establishment and Implementation of Appraisal, Incentive and Reward Mechanisms for Senior
    Management
    Page 17
    The Company implemented a balanced scorecard as its major organisation performance management system. In
    accordance with the concept of a balanced scorecard, senior management’s performance is evaluated in
    accordance with the achievement of annual business objectives based on the Company’s medium to long term
    development strategic goals, and such business objectives include the operating results of the period under
    review and sustainability of the Company. The review covers different categories including the Company’s
    financial position, customers, internal procedure, staff training and development. The Company has established
    objective benchmarks to measure the performance in each of the categories. The statistics on staff and
    customers’ satisfaction levels were obtained from survey conducted by an independent third party.
    The remuneration and nomination committee under the Board is responsible for studying and supervising the
    establishment and implementation of the appraisal, incentive and reward systems for senior management.
    Performance of the president was appraised by the Board.
    The remunerations of management staff are determined in accordance with the Company’s operating results of
    the year under review, the accomplishment of overall management indicators, their appraisal report, and
    comparison with the industry salary level. In each management year, performance review of senior management
    is conducted through the Company’s work report meeting. The major factors to be considered in reviewing the
    senior management of the Company’s headquarters include the Company’s overall performance, the value of the
    management staff’s role in the Company and their performance with reference to the duties stipulated under
    their respective positions. With regard to those in charge of front-line companies, the review is based on the
    performance of those front-line companies to which they are held accountable, the value of their roles and their
    performance with reference to the duties stipulated under their respective positions.
    In 2010, in order to realize shareholder orientation, align business decisions with shareholders’ interests and
    continue to achieve above market average operating results, the Company made adjustment to the overall
    remuneration scheme, by reducing the percentage of sales bonus and annual profit bonus and adopting
    Economic Profit (EP) as a performance indicator for EP bonus, in order to build up a balanced remuneration
    scheme structure comprised of fixed salaries, sales bonus, annual profit bonus and EP bonus.
    All staff receive fixed salaries. The amount of a fixed salary is determined according to the importance of the
    position to the Company and the basic living needs of the staff. The higher the position, the smaller percentage
    will the fixed salary that goes with that position take up in the total remuneration received by the person who
    holds that position.
    All staff is entitled to sales bonus, with emphasis on general staff. Based on the actual sales performance, sales
    bonus will be appropriated quarterly and will be distributed semiannually.
    All staff is entitled to annual profit bonus. Based on the profit for the year, the annual profit bonus will be
    appropriated and distributed annually.
    Beneficiaries of the EP bonus include the Company’s senior management staff, middle management staff, as
    well as staff nominated by the president for the important roles they play in the Company or for their
    outstanding contribution. The economic profit, achieved by the Company for a given year and calculated by an
    independent third party, is used as a performance target indicator and base for appropriation and deduction. A
    fixed percentage of the economic profit will be appropriated or deducted, with a two-way (positive and negative)
    adjustment mechanism. In other words, if the Company’s EP for the year is positive, an amount corresponding
    to the fixed percentage of the EP will be added to the designated bonus account; on the other hand, if the
    Company’s EP for the year is negative, an amount corresponding to the fixed percentage of the EP will be
    deducted from the bonus account. Each year, after the Board’s approval of the annual report, the Company,
    based on the EP calculation report, will make adjustment to the bonus account by either transfering the EP bonus
    for the year to the bonus account or transfering a corresponding amount from the bonus account to the
    Company’s account. An amount equivalent to 40% of the outstanding amount in the bonus account at the time
    will be withdrawn for distribution .
    The EP bonus for distribution is divided into two parts; one part will not be directed to the individuals but will
    be treated as collective bonus, distribution or payment of which will be deferred. This part of bonus will be
    subject to centralised management according to the provisions of this plan. There will be additional conditions to
    be met to receive the deferred bonus. Other than the collective bonus, there is the individual bonus, distribution
    or payment of which will be made at the time. The percertage of collective bonus to the total amount of bonuses
    for distribution each year is proposed by the president and approved by the chairman of the board of directors,
    Page 18
    and passed by the remuneration and nomination committee. The collective bonus can be held in escrow, through
    which investment gain can be made.
    During the deferred period, should there be any actions that are violations of duties or act that results in
    significant loss of the Company, the beneficiaries of the collective bonuses will be deprived of part or all of their
    deferred bonuses. The collective bonuses of directors, members of the Supervisory Committee and senior
    management staff will be deferred to the day on which they will no longer be the directors, members of the
    Supervisory Committeee and senior management staff. After that, the bonuses can be obtained over three years
    according to the provisions. Other beneficiaries are ineligible for bonus distribution during the first three years
    after becoming the beneficiaries of the collective bonuses. Starting from the fourth year, they can, according to
    the provisions, obtain a specified amount of collective bonuses each year. Beneficiaries who can receive their
    share of collective bonuses according to the provisions can also apply for voluntary deferral of bonus. The right
    to this part of collective bonus cannot, under any circumstances, be revoked.
    In accordance with the EP bonus plan, the EP bonus appropriated in 2010 amounted to RMB105,020,000, while
    the actual EP bonuses paid out to beneficiaries amounted to RMB90,450,000.
    VII. Summary of Shareholders’ Meetings
    1. The 2010 (23rd) Annual General Meeting
    The notice of 2010 Annual General Meeting (“AGM”) was published in China Securities Journal, Securities
    Times, Shanghai Securities News and irasia.com, Hong Kong, on 8 March 2011. The last day for verifying the
    qualification of shareholders was 22 March 2011.
    The AGM was held at 9:30 am on 31 March 2011 at Vanke Centre, No 33 Huanmei Road, Dameisha, Yantian
    District, Shenzhen. A total of 165 shareholders (proxies) attended the meeting, holding 3,010,902,494 shares,
    representing 27.38 per cent of the Company’s total number of shares with voting rights. There were 122
    shareholders (proxies) of A shares, holding 2,909,794,627 shares, representing 30.06 per cent of the Company’s
    total number of A shares with voting rights. There were 43 shareholders (proxies) of B shares, holding
    101,107,867 shares, representing 7.69 per cent of the Company’s total number of B shares with voting rights.
    The AGM considered and approved (1) the Directors’ Report for the year 2010; (2) Report of the Supervisory
    Committee for 2010, (3) the Annual Report and audited financial report for the year 2010; (4) the resolution
    regarding the proposal on profit appropriation and dividend distribution for the year 2010; (5) the resolution
    regarding the reappointment of certified public accountants for the year 2011; (6) the resolution regarding the
    grant of authority to the Company to carry out corporate citizenship activities within specified budget. Wang
    Shi, Qiao Shibo, Yu Liang, Sun Jianyi, Wang Yin, Xiao Li, and Jiang Wei were elected as the directors of the
    sixteenth session of the Board, and Qi Daqing, Zhang Liping, Paul Chan Mo Po and Hua Sheng were elected as
    the independent directors of the sixteenth session of the Board by cumulative voting.
    The announcement of the resolutions of the AGM was published in China Securities Journal, Securities Times,
    Shanghai Securities News and irasia.com, Hong Kong, on 1 April 2011.
    2. The First Extraordinary General Meeting of 2011
    The notice of the First Extraordinary General Meeting of 2011 (“EGM”) was published in China Securities
    Journal, Securities Times, Shanghai Securities News and irasia.com, Hong Kong, on 23 March 2011. The last
    day for verifying the qualification of shareholders was 28 March 2011.
    The on-site meeting of the EGM was held at 14:00 on 8 April 2011 at Vanke Centre, No 33 Huanmei Road,
    Dameisha, Yantian District, Shenzhen. A total of 780 shareholders (proxies) attended the EGM and/or
    participated in online voting, holding 4,224,460,742 shares, representing 38.42 per cent of the Company’s total
    number of shares with voting rights. There were 541 shareholders (proxies) of A shares, holding 3,717,962,113
    shares, representing 38.41 per cent of the Company’s total number of A shares with voting rights. There were
    242 shareholders (proxies) of B shares, holding 506,498,629 shares, representing 38.52 per cent of the
    Company’s total number of B shares with voting rights.
    The EGM considered and approved:
    (1) “A-Share Stock Option Incentive Scheme (Revised Draft) of China Vanke Co., Ltd.” including each of the
    resolutions set out below as as a separate resolution by way of poll:
    Page 19
    1     Basis for determination and scope of the beneficiaries of the Stock Option Incentive Scheme
    2     Source and number of the underlying shares under the Scheme
    3     Allotment of stock options granted to the beneficiaries
    4     Validity period, grant date, vesting period, exercise arrangement, lock-up period of the underlying
    stocks of the Stock Option Incentive Scheme
    5    Exercise price and methods for determining the exercise price of the stock options
    6    Conditions for granting and exercising stock options
    7    Method and procedures for adjustment of the Stock Option Incentive Scheme
    8    Accounting treatments of the stock options
    9    Procedure for grant of stock options by the Company and exercise of stock options by the
    beneficiaries
    10 Rights and obligations of the Company and beneficiaries
    11 Ways for handling stock options under special situations including changes in or termination of the
    Stock Option Incentive Scheme
    (2) the resolution regarding granting the Board the authority to handle matters relating to the Company’s Stock
    Option Incentive Scheme;
    (3) the resolution regarding the establishment of the implementation and appraisal methods of the Stock Option
    Incentive Scheme of China Vanke Co., Ltd.; and
    (4) the resolution regarding cooperation with CRC.
    The announcement of the resolutions of the EGM was published in China Securities Journal, Securities Times,
    Shanghai Securities News and irasia.com, Hong Kong, on 9 April 2011.
    VIII. Directors’ Report
    1. Management Discussion and Analysis
    Changes in market environment and management’s opinion
    During the year under review, the sales area and sales amount of China’s commodity housing reached 1,099
    million sq m and RMB5,910 billion respectively, up by 4.9% and 12.1% respectively, indicating a slowdown in
    growth when compared with that of 2010. In the first three quarters, sales were sluggish in the first and second
    tier cities, while the third and fourth tier cities saw relatively fast sales growth. The sales area of China’s
    commodity housing in general continued to increase in the first three quarters, up by 14.9%, 11.6% and 12.9%
    year-on-year respectively. In the fourth quarter, sales in the third and fourth tier cities began to slow down, while
    the sales area in China’s commodity housing reduced by 7.1% when compared with that of the same period last
    year.
    Sales area in the 14 cities (Shenzhen, Guangzhou, Dongguan, Foshan, Shanghai, Suzhou, Wuxi, Hangzhou,
    Nanjing, Beijing, Tianjin, Shenyang, Chengdu, and Wuhan) to which China Vanke attached great importance,
    continued to drop year-on-year by 19.2% in 2011, after shedding 29.6% in 2010 from 2009.
    The approved pre-sales area in the above-mentioned 14 cities in the second, third and fourth quarters rose by
    77.5%, 100.3% and 86.4% respectively; however, the sales area in these cities dropped by 15.8%, 10.2% and
    15.9% respectively. Increase in new housing supply and decline in market sales led to continued rise in
    inventory level and continued increase in the time needed to digest inventories. The sales area of commodity
    housing to approved pre-sales area of new housing ratio in the 14 cities in 2011 dropped from 0.94 in 2010 to
    0.70, which was close to 0.63 of 2008; in particular, the sales area of commodity housing to approved pre-sales
    area of new housing ratio between September and December was 0.54, which was almost the same level when
    the market reached its bottom in 2008.
    Led by a group of developers with influential power, price reduction to boost sales started to become the norm
    after the third quarter. Rise in prices in various areas was suppressed. The number of cities with relaxed and
    declined housing price continued to increase. According to the recent figures published by the statistics bureau,
    the prices of newly constructed commodity housing in 70 medium and large cities in January 2012 either
    declined or remained the same when compared with those in the previous month; none of them rose from the
    previous month.
    In the first three quarters, the central bank thrice raised the benchmark RMB-denominated borrowing and
    lending interest rates, resulting in tighter liquidity in the market. According to figures released by the central
    bank, the aggregate amount of various types of RMB-denominated loans of all the financial institutions in 2011
    increased by RMB7,470 billion, representing a decrease of approximately 6% compared to the growth rate of
    Page 20
    last year; Of the total amount, the aggregate mortgage loans increased by RMB1,260 billion, representing a
    decrease of approximately 38% when compared with the growth rate of last year. China Banking Regulatory
    Commission also raised concerns over real estate trust risks and further tightened the relevant regulations.
    Affected by these factors, the sources of funding in the property industry significantly reduced.
    In 2011, domestic loans accounted for only 15.1% of sources of funds for property development, which was a
    historical low. Since sales slowed down, “other loans”, which mainly comprised of sales proceeds, saw its
    percentage contribution to total sources of funds for property development dropped by 2.2 percentage points
    from that of 2010, and 5.5 percentage points from 2009. Domestic loans and sales proceeds have been the most
    important sources of funds in the property industry. Decline in the aforesaid two indicators thus increased
    pressure on capital and caused enterprises to significantly reduce land acquisition and development investments.
    With insufficient capital, commercial banks in general raised the down payment ratio for first-time home buyers
    in the second half of 2011, and gradually increased the mortgage rates for first-time home buyers to 1.05-1.1
    times of benchmark lending rates. A number of banks in certain cities had even ceased commercial mortgage
    lending for home purchase. Especially after September, first-time home buyers found it increasingly difficult to
    get a mortgage. Credit tightening and increase in lending costs had reduced first-time home owners’ ability to
    pay. This problem recently received much attention from the relevant government departments. To implement
    differential housing credit policy, the central bank reiterated in early 2012 that banks should “meet the mortgage
    demands of families’ first home purchase.
    With the control on rising prices taking effect, and with an aim to ease the tight capital flow, the central bank on
    30 November announced that it would cut deposit reserve ratio. On 24 February 2012, the central bank further
    lowered the deposit reserve ratio by 0.5 percentage point. It is expected that the liquidity in the market is likely
    to improve in the near future when compared with 2011. However, as the direction of government austerity
    measures remains unchanged, any improvement in the capital flow of the property industry is yet to be seen.
    Since the speed in receiving sales proceeds slowed down and source of funding in the industry narrowed,
    property developers’ investment ability and desire in general weakened during the year under review. The
    growth rate in floor area commencing construction of housing in China dropped from 40.7% in 2010 to 16.2%,
    with growth rate declining each month since August. The floor area commencing construction in December
    alone shrank by 24.8% from that of the same period last year. By comparison, the adjustment in property
    investment was relatively smaller, with growth rate sliding from 33.2% in 2010 to 27.9%. However, the
    downward trend escalated at the end of the year. Since there is time lag between the publication of investment
    statistics and changes in them, it is expected that the downward trend in investment will be more significant for
    some time in future, and we see risks of insufficient new housing supply in the next two years.
    Affected by commodity housing market adjustments, the land market in the third and fourth quarters began to
    cool down significantly, as reflected in the continued retreat in the price premium in the land market, rise in the
    incidents of failed auction, and the fact that most land lots changed hands at the reserve price. In the 16 major
    cities where statistics are accessible by the public (including Shenzhen, Guangzhou, Dongguan, Foshan,
    Shanghai, Hangzhou, Nanjing, Suzhou, Ningbo, Beijing, Tianjin, Shenyang, Dalian, Chengdu, Wuhan, and
    Chongqing), the percentage of failed auctions increased to 37% in the fourth quarter, with only 11% of
    transactions completed with price premium, which was close to 2008’s rock bottom level.
    During the year under review, China’s plan for massive construction of affordable housing was implemented.
    Construction of over 10 million units of affordable housing and modified housing in shanty towns commenced
    during the year. According to the plan, the Chinese government will continue to push ahead with the
    construction of affordable housing in 2012, with the commencement of construction of 7 million units of
    affordable housing and modified housing in shanty towns. In the opinion of China Vanke, the affordable housing
    system has fully leveraged its potential, marking the success of the government’s regulation on the market as
    well as being a prerequisite for a healthy and steady development of the industry in the long run. The Company
    has been dedicating its professionalism to the affordable housing initiatives by actively participating in the
    development of affordable housing and exploring a sustainable operating model for affordable housing.
    Operating results and analysis
    Faced with tremendous changes in the market environment during the year under review, the Company
    persevered with its product positioning targeted at end users and continued to adhere to the strategy of quick
    turnover. As a result of its proactive response to market changes, the Company saw relatively satisfactory sales.
    Page 21
    In 2011, the Company realized sales area and sales revenue of 10,753,000 sq m and RMB121.54 billion
    respectively, representing year-on-year increases of 19.8% and 12.4% respectively. Among the 54 cities that the
    Company had market presence, China Vanke was among the top three developers in 25 cities in terms of sales;
    of these 25 cities, the Company ranked first in 11 cities, including Shenzhen, Dongguan, Foshan, Tianjin,
    Shenyang, Changchun, Anshan, Qingdao, Zhenjiang, Wuxi and Wuhan; and ranked second in Shanghai,
    Chengdu, Suzhou, Yantai and Tangshan. The number of frontline subsidiaries of China Vanke with annual sales
    surpassing RMB5 billion jumped from 8 in 2010 to 13 (Beijing, Shenzhen, Shanghai, Guangzhou, Shenyang,
    Wuhan, Tianjin, Sunan, Dongguan, Foshan, Changchun, Chengdu and Qingdao), thereby further consolidating
    and enhancing the Company’s market position.
    The Company’s product mix continued to be dominated by small to medium sized ordinary commodity housing
    units. Residential units of less than 144 sq m accounted for 88% of all the units sold.
    During the year under review, the revenue and net profit of the Company amounted to RMB67.71 billion and
    RMB9.62 billion respectively, representing year-on-year increases of 41.8% and 32.2% respectively. The
    Company realized booked area and booked revenue of 5,624,000 sq m and RMB66.64 billion respectively,
    representing year-on-year increases of 24.4% and 41.4% respectively.
    As at the end of 2011, the Company had an area of 10,850,000 sq m sold but not yet booked stated in the
    consolidated statements, with a contract amount of RMB122.2 billion, representing increases of 59.6% and
    49.0% when compared with those at the end of 2010.
    The booked gross profit margin and booked net profit margin of the Company’s property business were 30.44%
    and 15.01% respectively, representing decreases of 2.16 percentage point and 0.51 percentage point from those
    of 2010 respectively. Owing to the time lag between revenue recognition and sales completion in the property
    industry, the booked area during the year under review was mostly comprised of units sold but not yet booked at
    the end of 2010 and units sold in the first half of 2011. At the time when these units were sold, there was no
    significant adjustment in the market price. As such, the profit of these units remained at a relatively high level.
    The Company’s cost management and expenses control initiatives in recent years have also helped enhance
    profitability to certain extent. Affected by the aforementioned factors, the booked profit margin of the Company
    remained at a relatively high level in 2011. However, with market downturn in the second half of 2011,
    incidents of price cut to promote sales increased, which inevitably affected the gross profit margin of residential
    sales. With continued market adjustments, it got more difficult to complete sales. In 2011, sales and distribution
    expenses and administration expenses as a percentage of sales amount was 2.1%, which was higher than that in
    2010. It is expected that for a certain period of time in future, the booked gross profit margin and net profit will
    be lowered than that of 2011.
    In 2011, the Company had a floor area of 14,480,000 sq m commencing construction, representing an increase
    of 9.0% from 13,290,000 sq m planned at the beginning of the year; the Company achieved completed area of
    6,590,000 sq m (completed area included in the Company’s consolidated statement was 5,970,000 sq m), which
    was 9.6% less than 7,290,000 sq m planned at the beginning of the year.
    In view of no significant adjustment in the reserve price of land in major cities during the year under review and
    an uncertain market outlook, the Company continued to remain prudent in land acquisition. During the year
    under review, the Company acquired 52 development projects, with a site area attributable to China Vanke’s
    equity holding of approximately 4,160,000 sq m (planned GFA attributable to China Vanke’s equity holding of
    approximately 9,220,000 sq m) and average land premium per floor area of approximately RMB2,707 per sq m.
    Besides, the Company was also involved in 6 city redevelopment projects; according to the current planning
    requirements, the related site area attributable to China Vanke’s equity holding was approximately 690,000 sq m
    (planned GFA attributable to China Vanke’s equity holding was approximately 2,270,000 sq m) and the average
    composite redevelopment cost and land premium per floor area was approximately RMB2,010 per sq m. During
    the year under review, the Company entered new markets of Wuhu, Qinhuangdao, Taiyuan and Jinzhong , while
    intensifying the penetration of its existing markets
    As at the end of the year under review, the aggregate GFA of the Company’s projects under planning
    attributable to China Vanke’s equity holding amounted to 35,470,000 sq m, which can basically meet its
    development needs in the coming 2 to 3 years.
    Page 22
    As at the end of the year under review, the Company’s inventories included RMB7.24 billion of completed
    properties (properties ready for sale), accounting for 3.5%; RMB138.33 billion of properties under development
    (including properties sold but not yet booked), accounting for 66.3%; RMB62.99 billion of properties held for
    development (corresponding to the Company’s projects under planning), accounting for 30.2%.
    The Company persevered with prudent operation and maintained a sound financial position. As at the end of the
    year under review, the Company’s net gearing ratio continued to remain at a relatively low level of 23.8% when
    compared with the industry average. Owing to substantial increase in advance receipts from RMB74.41 billion
    at the end of 2010 to RMB111.10 billion, the Company’s gearing ratio rose from 74.7% of the same period of
    last year to 77.1%. However, advance receipts did not give rise to any real pressure for debt repayment.
    Excluding advance receipts, the Company’s other liabilities as a percentage of total assets was 39.7%, which
    was lower than 40.3% at the end of 2010. The debt structure of the Company was healthy. The interest-bearing
    borrowings as a percentage of total liabilities was merely22.0%; of the interest-bearing borrowings, long-term
    borrowings accounted for 53.2%.
    Owing to better sales performance than market average and adherence to prudent investment strategy, the
    Company was able to maintain a solid financial position when the industry was faced with a tightened financing
    environment. As at the end of the year under review, the cash and cash equivalents held by the Company
    amounted to RMB34.24 billion, which was much higher than the sum of short-term borrowings and long-term
    borrowings due within one year of RMB23.57 billion, which was sufficient to ensure sound and stable
    operations.
    Review on the Company’s management in 2011
    In 2011, the area of projects under the Company’s management surpassed 33 million sq m and the number of
    residential units handed over during the year exceeded 60,000 units. To ensure construction safety and quality of
    the units handed over, the Company adhered to its work safety philosophy of “zero tolerance”, and strictly
    implemented quality and safety management scheme. During the year under review, the Company strengthened
    the precise measurement system, improved the evaluation system for overall outlook of products, fine-tuned the
    management procedures for commencing construction and enhanced management accountability system.
    Positive results had been achieved from these initiatives. According to a customer survey conducted by an
    independent third party, the overall satisfaction level of owners of China Vanke’s residential units was high, and
    the overall satisfaction level of owners who had already moved in their homes also increased. Amid a
    considerable growth of over 50% in the number of units handed over, in 2011, the percentage of major accidents
    within the Company significantly dropped, while product quality further improved, with over 95% scoring a
    passing rate.
    To cope with the challenges brought by massive scale of construction to construction quality and to fully
    leverage economies of scale, the Company continued to carry out large-scale strategic main contracting. During
    the year, the Company entered into strategic collaborative agreements with China Construction Fourth
    Engineering Division Corp. Ltd and Shanghai Construction (Group) General Co. respectively. Up to the present
    time, the area of construction carried out through large-scale strategic main contracting accounted for 21% of the
    Company’s total construction area. In addition, the Company and its strategic partners started to explore the
    possibility of jointly promoting housing industrialization by fully leveraging each other’s competitive edge.
    During the year under review, the application of prefabrication within the Group further increased. The number
    of subsidiaries of the Company using prefabrication techniques rose from 8 in 2010 to 10 in 2011. For the full
    year of 2011, the floor area commencing construction using prefabrication technology reached 2,720,000 sq m,
    representing an increase of 36% as compared to 2,000,000 sq m planned at the beginning of the year.
    The Company continued to actively carry out its green strategy. It stepped up efforts to promote green buildings
    and strengthened its research capability and application of green building techniques. In 2011, the planned GFA
    of the Company’s projects built with the Three-Star green building standards amounted to 2,737,000 sq m,
    representing a 265% year-on-year increase, among which the area of Three-Star green residential projects
    amounted to 2,684,000 sq m, accounting for 50.7% of the total area of residential projects qualified for the
    Three-Star green building standards in China during the same period. Starting from June 2011, the Company
    requires that all of its new construction projects meeting planning conditions should be designed and constructed
    in accordance with standards not lower than those set for One-Star green building. In addition, the Company has
    started to prepare for the construction of a green construction park in Beijing and collaborated with UK-based
    Page 23
    BRE (Building Research Establishment), striving to build the park as the most advanced platform for promoting
    green ideology in the PRC.
    During the year under review, the Company continued to improve and diversify its product lines and stepped up
    efforts in research on new topics such as elderly apartments as well as sustainable development of communities.
    During the year under review, the Company’s A-Share Stock Option Incentive Scheme was approved and
    implemented. Up to now, the Company has established a remuneration structure comprised of fixed salaries,
    short-term compensation and long-term incentives, which will further improve the check-and-balance
    mechanism between shareholders and professional management team through linking up their interests and
    ensure the implementation of shareholder-oriented strategy.
    Along with industry development, professional management staff are faced with more opportunities, and their
    turnover rate therefore increases. In 2011, three executive vice presidents left the Company to start their own
    business or pursue other endeavours. While this shows that professional managers of China Vanke gain social
    recognition, it also alerts the Company to pay more attention to competition for talents. During the year under
    review, the Company continued to step up the grooming of talent successors, further strengthen its corporate
    culture and competitive edge in institution establishment, as well as explore ways to fine-tune its remuneration
    and incentive mechanism so as to increase its talent attraction.
    During the year under review, the Company’s projects under development received 104 provincial and national
    awards, evidencing the Company’s good project management and civilized construction image. Among these
    projects, Shenzhen Longhua Public Rental Housing Project received accolades from governments at all levels
    for introducing prefabrication technology into affordable housing construction. Beijing Xihongmen Project and
    Banbuqiao Public Rental Housing Project were awarded a runner-up prize in the First Session of Affordable
    Housing Design Competition in China. Phase II of No. 1, Songshan Lake, Dongguan, Phase II of The Paradiso,
    Guangzhou and Hongshi Jiayuan (红狮家园) project, Beijing (Affordable Housing) were awarded Outstanding
    Projects of Residential Community of Zhan Tianyou Award organized by China Civil Engineering Society.
    During the year under review, the Company was named as “The Most Respectable Enterprise in China” by
    Economic Observer and Management Case Center of Peking University for the ninth time in a row. On the list
    of “2011 Most Praised PRC Enterprises” announced by Fortune China (Chinese version), the Company ranked
    first in the real estate industry category. The Company was also awarded the No. 1 title out of the “Top 10
    Among China’s Leading 100 Property Developers in 2011, Overall” selected by Enterprise Research Institute of
    the Development Research Center of the State Council, Institute of Real Estate Studies of Tsinghua University
    and China Index Academy.
    The Company gained wide recognition for its achievements in staff management, employer brand building and
    corporate culture establishment. The Company was the only property developer among the “Best Employers in
    China 2011” selected by world-renowned human resources management and consulting company Aon Hewitt.
    On the “25 Top Companies for Grooming Leaders” list announced by Fortune, the Company ranked fourth in
    the Asia Pacific region.
    During the year under review, China Vanke Property Management Co., Ltd. was selected as the “No. 1 Property
    Management Company in China, Overall”. In a study conducted by China Real Estate Top 10 Research Team
    on the brand value of property management companies in China in 2011, China Vanke Property Management
    Co., Ltd. ranked first again among “China Property Management Companies with Excellent Brands”
    The Company maintained close contact with its investors. During the year, the number of investor visits and
    telephone conferences organized by the Company exceeded 620. In addition, via online presentations, results
    announcement meetings and company visits, the Company proactively strengthened its communication with
    investors, which earned praise from the industry. During the year under review, the Company received the
    awards for Outstanding Investor Relations by An A-Share Listed Company in China and the Best Investor
    Relations by a CEO in China from IR Global Rankings. The Company’s secretary to the Board again received
    the title of Golden Secretary to the Board and was named Institutional Investors’ Most Popular Secretary to the
    Board by New Fortune at the Seventh Session of the Golden Secretary to the Board Awards.
    Future development prospects in 2012
    Page 24
    In 2012, the Company will continue to be market oriented, customer oriented, shareholder oriented, and strategy
    oriented. It will adopt higher standards for reviewing its work and actively cope with market challenges.
    In view of a planned increase of number of units to be handed over to home owners, the Company will continue
    to set work safety and product quality assurance as its top priority. The Company will promote an “engineering
    culture” through the launch of the “RMB100 Billion Plan”. It will arrange to send a large number of project
    systems management senior staff and core technicians to Japan to study and to acquire advanced project
    management experience of developed countries. The Company also plans to establish a pilot project, to which
    the Company will introduce experienced overseas managers, which will set a benchmark for management. The
    above initiatives are aimed to enhance the Company’s quality management capability.
    Against the backdrop of market adjustments, profitability poses a challenge to the Company. As such, the
    Company will regard cost management as a priority task. In 2011, the Company established the Group-wide
    standardized cost benchmarking system and cost alignment mechanism, while strengthening its ability to avoid
    inefficient cost. Supported by the aforesaid systems and practice, the Company’s cost management will focus on
    two key elements, namely “enhancing basic work quality” and “strengthening cost control”. The Company will
    push ahead with the implementation of the systems, step up its effort to study and monitor the construction and
    construction materials markets, and enhance cost information system. By comparing the Company’s metrics to
    industry best, China Vanke strives to improve cost estimation, control and management, analysis, and execution
    capability.
    In view of the continued yearly growth in the project development business, the Company started in 2009 to
    implement by phase the Group’s centralised procurement to ensure quality consistency of materials purchased
    and to fully leverage the Company’s economies of scale. By now, the Company has a relatively well-developed
    centralised procurement system. In future, the Company will further strengthen its pre-procurement quality
    inspection and enhance on-site inspection of materials.
    The Company will be more prudent in new project development. It would rather forgo an opportunity than
    making a wrong acquisition. In addition to a prudent management approach, the Company will pay close
    attention to any possible land market adjustments, and identify the right opportunities for acquiring land
    resources that could meet its sustainable development needs in future.
    In 2012, the floor area commencing construction and completed area of the Company’s existing projects are
    expected to reach 13,280,000 sq m and 8,900,000 sq m respectively. To ensure it has the “appropriate products
    for sale”, the Company adheres to its principle of building quality housing for ordinary people. It will follow
    closely on the changes in market transactions, strengthen its capacity of analysis and research on customers’
    actual needs, insist on continued fine-tuning of the composition of newly started projects according to the size
    and functions of residential units, and build quality and appropriate products.
    The prospects for capital flows in the industry are not optimistic for a certain period of time in future. The
    Company will adhere to “cash is king” strategy to ensure safe and sound operation. Meanwhile, the Company
    will capitalise on its reputation and brand equity in the capital market to actively broaden financing channels.
    The Company will continue to explore innovative collaboration mechanisms to obtain more resources to support
    its business development.
    The Company will continue to increase the use of prefabrication technology and green construction techniques.
    In 2012, the Company plans to commence construction of prefabricated projects with an area of over 3 million
    sq m., with an aim to obtain China’s Three Star certification granted for those realise a floor area commencing
    construction of projects using prefabrication technology of over 3 million sq m.
    The Company will stick to its development strategy which focuses on the ordinary housing market. At the same
    time, the Company will, in addition to consolidating its existing business, gradually step up efforts to explore
    other types of properties that are in line with urban development and complement residential properties. This
    initiative will be customer oriented and take into account the changes in urban development and housing needs.
    It will further strengthen the Company’s overall development capability while creating new opportunities for
    business expansion.
    2. Operation of the Company
    (1) The scope and operations of the Company’s core businesses
    Page 25
    A. By sector
    The Company specialises in property development with commodity housing as its major products. In 2011, the
    Company’s sales area and sales revenue were 10,753,000 sq m and RMB121.54 billion respectively,
    representing increases of 19.8% and 12.4% respectively when compared with those of 2010.
    In 2011, the total sales of commodity housing in the PRC amounted to RMB5,911.9 billion. Based on the
    aforesaid amount, the Company accounted for 2.06% of the domestic market in terms of sales revenue, which
    remained stable as compared with last year’s.
    During the year under review, the booked area, booked revenue and booked cost of the Company’s property
    projects were 5,624,000 sq m, RMB66.64 billion and RMB42.65 billion respectively, representing increases of
    24.4%, 41.1%, and 46.6% respectively when compared with those of the previous year. The operating profit
    margin of the property business for the year was 30.44%, down by 2.16 percentage point from that of the
    previous year.
    Unit RMB’000
    Revenue                     Cost of sales               Operating profit margin
    Sector
    Amount         Change       Amount           Change         Value              Change
    Propertysales                     66,637,958      41.42%     42,647,332            46.63%      30.44%          downby2.16percent
    Propertymanagementandothers         1,071,438     65.25%          602,086          35.63%      43.81%           Upby12.28percent
    Total                             67,709,396      41.76%     43,249,418            46.47%     30.65%           downby1.93percent
    Note: Land appreciation tax had been deducted from the operating profit margin
    B. By investment region
    Revenue                                                              Booked
    from core                          Net profit
    Percentage                      Percentage           area        Percentage
    businesses                        (RMB’000)                          (sq m)
    (RMB’000)
    Guangshen Region          23,846,667         35.79%        4,214,962          39.76%     1,775,144.55          31.56%
    Shanghai Region            19,444,648        29.18%        3,428,774          32.35%     1,391,878.49          24.75%
    Beijing Region             15,995,163        24.00%         2,221,853         20.96%     1,551,015.15          27.58%
    Chengdu Region              7,351,480        11.03%          734,976           6.93%      906,220.91           16.11%
    Total                      66,637,958       100.00%        10,600,566        100.00%     5,624,259.10        100.00%
    (2) Operating results of the major wholly-owned subsidiaries and non wholly-owned subsidiaries of the
    Company
    (Unit: ’000 RMB)
    Total assets
    Equity     Revenue in        Net profit
    Name of company                                                            at the end of Major projects developed
    interest      2011             in 2011                                   in 2011
    2011
    Shenzhen Haixuan Investment                                                                         Vanke Hong ( 万 科 红 ),
    100%         1,967,599         371,150            908,912 Shenzhen
    Development Company Limited
    Guangzhou Panyu Xiangxin Real           100%         1,797,513         324,563          4,175,945      Stratford, Guangzhou
    Estate Co., Ltd
    Nanjing Jinyu Blue Property                                                                            Aureate City, Nanjing, The
    Company                                 100%         1,937,442         321,286          3,424,269      Paradiso, Nanjing
    Shanghai Vanke Blue Mountain            100%         1,713,344         396,441             971,416     The Village, Shanghai
    Town Property Co., Ltd.
    Phase I, Blue Mountain,
    Beijing, Phase I, Hongshi
    Beijing Vanke Company Limited           100%         1,502,989         508,238        15,635,731       Jiayuan ( 红 狮 家 园 ),
    Beijing, City Garden,
    Beijing
    Ningbo Vanke Real Estate                100%          1,460,755         361,893         2,666,637      Golden Town, Ningbo
    Company
    Shenzhen Vanke Nancheng Real            100%          1,444,707         328,099         1,444,208      The Village, Shenzhen
    Estate Company Limited
    Guangzhou Wanxin Property               100%          1,258,226         312,045         2,086,157      Wanjingde, Guangzhou
    Company Limited
    Shenyang Vanke Hunnan Jinyu
    Property Development Company            100%          1,103,502         150,537         1,476,647      The Paradiso, Shenyang
    Limited
    Shenzhen Vanke Huayu Garden                                                                            Golden Hill, Shenzhen (深
    100%          1,005,738         273,489         1,191,268
    Real Estate Co., Ltd.                                                                                  圳色半山)
    Note: Profit and loss of minority interests are included in the net profit.
    Page 26
    (3) Implementation of the business plan
    The Company focused on mainstream customers – end-users, and actively promoted sales to achieve satisfactory
    performance. In 2011, the Company’s sales area and sales revenue amounted to 10,753,000 sq m and
    RMB121.54 billion respectively, representing increases of 19.8% and 12.4%.
    The Company’s planned floor area commencing construction and completed area at the beginning of the year
    were 13,290,000 sq m and 7,290,000 sq m respectively. In 2011, the actual floor area commencing construction
    amounted to 14,480,000 sq m, representing a slight increase from the area planned at the beginning of the year.
    Completion of certain projects of the Company was affected by factors including an increased proportion of
    furbished units, labour shortage, and interruption in construction. The actual completed area achieved by the
    Company for the full year amounted to 6,590,000 sq m, which decreased by 9.6% compared with the area
    planned at the beginning of the year.
    Development of the Company’s major projects in 2011
    Unit: Sq m
    Project Name            Location      Equity    Site area    Planned          Area of        Area of      Accumulated
    interes                 GFA           construction   construction      area of
    t                                     work        work done in   construction
    commenced         2011        work done as
    in 2011                     at the end of
    2011
    Guangshen region
    Vanke Centre,                Yantian      100%          61,730         80,201              -              -         26,000
    Shenzhen
    Vega Villa (天琴湾)          Yantian      100%         253,990         25,040          1,150              -           5,890
    Shenzhen
    Yantian Central Line         Yantian      100%         137,250        345,270              -              -               -
    Project, Shenzhen
    King Metropolis,              Baoan       100%          68,310        196,182              -         73,840        189,441
    Shenzhen
    Respecte Chateau (            Baoan       100%          65,364        161,856         85,366         68,518         68,518
    色领域), Shenzhen
    Ravine Village,               Baoan        60%         158,639         47,270              -              -               -
    Shenzhen
    Feilijun (翡丽郡),            Baoan        55%          77,265        254,930         28,762              -               -
    Shenzhen
    The Village, Shenzhen       Longgang      100%         421,916        595,982        118,785         69,849        478,294
    Golden Hill, (色半          Longgang      100%          62,474         96,969              -         52,778         52,778
    山), Shenzhen
    Jiuzhou Project,            Longgang      100%         201,833        967,428         85,794              -               -
    Shenzhen
    Qianlin Shanju,             Longgang      100%         198,597        361,753         45,911         68,512        204,907
    Shenzhen
    Home (万科红),              Longgang      100%          31,337        150,370         58,041         83,135         83,135
    Shenzhen
    Jinse Qinyuan (色沁         Longgang       90%          37,740         69,608              -         68,939         68,939
    园), Shenzhen
    Shuijing (水径) Project,    Longgang       60%         164,989        455,134              -              -               -
    Buji, Shenzhen
    Park Avenue (公园),         Longgang       65%         104,819        471,915              -              -               -
    Shenzhen
    Langqi Project,             Longgang      100%          41,487         22,380              -              -               -
    Shenzhen
    Golden Paradise,            Pingshan      100%         104,801        315,808         79,561              -         80,267
    Shenzhen                   New District
    Yuyi Village Project,       Nanshan        80%          19,500        142,000              -              -               -
    Shenzhen
    Nanyuan New Village         Nanshan        80%          82,600        581,700              -              -               -
    Project, Shenzhen
    Tangyue (棠樾),             Tangxia        51%         596,786        412,504         35,345         39,119        139,041
    Dongguan                     Town
    Dajia Island, Shenzhen      Huizhou       100%         364,450       93,340                -              -               -
    Lunas Del Mar (双月         Huidong        67%         704,223    1,139,325          204,700              -               -
    湾), Huizhou
    Jinyu Huating, Huizhou      Huicheng      100%         151,298        313,678         65,951         83,548        139,242
    Subsequent phase of         Huidong        67%          28,000         56,000              -              -              -
    Lunas Del Mar (双月
    湾), Huizhou,
    The Paradiso,                Baiyun        50%         144,657        433,584              -         35,958        310,177
    Guangzhou
    Jinshazhou B04,              Baiyun       100%          17,207         30,973              -         30,973         30,973
    Guangzhou
    Page 27
    Baiyun New Town,            Baiyun      100%    24,052        94,264         -         -         -
    Guangzhou
    Le Bonheur,                 Liwan       100%    38,111       135,689         -    35,635   117,573
    Guangzhou
    Tongfu West,                Haizhu      100%     9,929        85,279    46,078    39,201    39,201
    Guangzhou
    Fuqian No. 1 (府前一        Nansha      95%    134,760       269,520         -         -         -
    号), Guangzhou
    Racho Santa Fe,             Huadu       49%    210,288       124,338         -         -    61,508
    Guangzhou
    Dream Town,                Qingyuan     100%   689,326   1,356,279      21,600         -         -
    Qingyuan
    Vanke Huafu (万科华        Qingyuan     100%    79,164       312,820   126,000         -         -
    府), Qingyuan
    Donghui Town (东荟         Luogang      55%    177,588       454,175   136,002         -         -
    城), Guangzhou
    Landlot B, Science         Luogang      33%    109,748       274,370         -         -         -
    City, Guangzhou
    Aureate City,               Panyu       100%    58,093        72,549         -    66,278    72,549
    Guangzhou
    Stratford, Guangzhou        Panyu       100%   364,651       571,743   174,322    71,426    71,426
    Jinyu Songhu (域松         Songshan      51%   136,151       381,000    60,329         -         -
    湖), Dongguan                Lake
    Hongxinuoya,               Songshan     100%   349,951       267,450    10,332    44,889   130,979
    Dongguan                     Lake
    Humen Zitai (虎门紫       Humen Town    100%    60,570       151,426   118,666         -         -
    台), Dongguan
    Chang’ an Vanke           Chang’an    100%    75,653       249,654    44,462         -         -
    Centre, Dongguan            Town
    Vanke Building,            Nanchang     100%     4,771        42,937    42,937         -         -
    Dongguan
    King Metropolis,           Nanchang     51%    189,934       493,827   114,632   111,497   155,700
    Dongguan
    Feilishan (翡丽山),        Nanchang     50%    249,534       374,302    48,822         -         -
    Dongguan
    Jiyu International,       Houjie Town   100%    88,788       257,486   208,641         -         -
    Dongguan
    Changping Dream            Changping    100%   635,971       442,460         -    38,841   215,754
    Town, Dongguan
    Vanke Luhu, (万科麓        Dalingshan   100%   146,674       117,341    34,005    45,309    45,309
    湖) Dongguan                 Town
    The Paradiso,             Dalang Town   51%     91,780       183,560         -    49,782   179,662
    Dongguan
    Spring Dew Mansion,        Tangxia      51%    128,144       256,129    79,908         -         -
    Dongguan                    Town
    Songshan Lake Centre      Songshan      34%     95,506        73,872         -         -         -
    (松湖中心), Dongguan        Lake
    Songshan Lake Centre      Songshan      25%     30,084        30,084         -         -         -
    II, Dongguan                Lake
    The Paradiso, Foshan       Nanhai       55%    221,035       574,690    11,731    89,649    89,649
    Crystal City, Foshan       Shunde        49%   284,036       710,092    63,500    88,794    88,794
    Qinyuan, Foshan            Shunde       100%    80,571       241,712         -     6,296     6,296
    Nancun Project, Foshan    Chancheng     57%    114,429       564,667         -         -         -
    Binfen Siji (缤纷四季),    Shunde       100%   158,640       429,527    42,212    56,852    56,852
    Foshan
    Tianaowan Project,          Shunde      50%     30,382        75,954    55,050         -         -
    Foshan
    Jinse Xigu Huayuan          Nanhai      100%    66,533        79,839    25,383         -         -
    (色溪谷花园),
    Foshan
    Xincheng Wanpan (新         Shunde      100%    69,877       139,754         -    12,959   139,754
    城湾畔), Foshan
    Rancho Santa Fe,            Shunde      100%   127,598       228,002         -    51,176   227,476
    Foshan
    King Metropolis,            Nanhai      100%   110,001       240,170         -    22,529   238,047
    Foshan
    The Dream Town,           Chancheng     100%   337,544       776,350    17,700         -   219,416
    Foshan
    Jinyu Huating, Foshan      Nanhai        55%    75,916       184,607         -    65,803   144,791
    Nanyue Project, Foshan    Chancheng      51%    89,000       373,820         -         -         -
    Zhubin Garden (珠宾       Xiangzhou     100%   109,917       143,792         -     7,654    25,708
    花园), Zhuhai
    Jinyu Gangwan (域          Xiangzhou    50%     78,000       192,203         -         -         -
    港湾), Zhuhai
    Jinyue Huating (悦         Tanzhou      100%    32,103       127,789         -         -         -
    Page 28
    华庭), Zhongshan
    A Glamous City,              Doumen      100%     137,061        274,122           -           -           -
    Zhuhai
    City Garden, Zhuhai          Jinwan       51%      63,233        185,432    103,927           -           -
    City Views, Zhongshan       Zhongshan    100%     338,516        523,177          -      85,375     481,276
    South
    Spring Dew Mansion,         Zhongshan    100%      76,387        175,133           -     24,934      24,934
    Zhongshan                      East
    Golden Home (色家           Dongfeng     100%     236,937        829,280    169,200            -           -
    园), Zhongshan                Town
    Crystal City,                 Huoju      65%      219,484        447,589           -           -           -
    Zhongshan
    Huxin Island, Xiamen           Huli      100%      95,098        199,710           -          -           -
    Jinse Yuecheng (色          Xiang’an    100%      54,441        109,000           -     63,046      63,046
    悦城), Xiamen
    King Metropolis,              Jimei      100%     102,427        443,000    125,872            -           -
    Xiamen
    Haicang Dream Town,         Haicang      40%      189,752        517,690           -           -           -
    Xiamen
    King Metropolis,              Yuhua      60%      238,066        585,091    276,465     128,251     128,251
    Changsha
    The Paradiso,                Furong      100%     120,208        363,369           -           -    103,762
    Changsha
    City Garden, Changsha         Yuelu      80%       39,339        157,214     21,608      70,215      70,215
    The Dream Town,               Kaifu      70%      204,010        560,543    375,393     119,512     119,512
    Changsha
    Zitai, Changsha              Tianxin     70%       99,770        168,422           -           -           -
    Golden Paradise,              Yuelu      78%       43,737        128,026           -           -           -
    Changsha
    Junjie Project,               Yuelu      58%       41,712        179,346           -           -           -
    Changsha
    Gaozheng Project,             Yuhua      60%       40,360        169,797           -           -           -
    Changsha
    Jinyu Rongjun (域榕           Jinan      100%     166,736        385,988           -      1,275      95,387
    郡), Fuzhou
    King Metropolis,           Cangshan      100%      16,168         37,599           -     34,399      34,399
    Fuzhou
    Yongtai Dream Town,         Yongtai      51%      392,000        556,032           -           -           -
    Fuzhou
    Vanke Plaza, Fuzhou         Taijiang     100%      93,359        432,407    275,400            -           -
    Jinyu Garden (域花          Taijiang      60%      25,397        127,129          -            -           -
    园), Fuzhou
    Dream Town, Putian          Licheng      80%      148,014        329,906    146,092            -           -
    Forest Holiday Park,          Sanya      65%      942,745        470,814     60,644            -           -
    Sanya
    Gaozhiyuan Project,           Sanya      65%      387,807        349,026           -     69,185      69,185
    Sanya
    Vanke Lakeside                Sanya      80%      260,293        301,650           -           -           -
    Holiday Park, Sanya
    Subtotal                   15,237,322   28,983,214    3,846,279   2,175,931   5,394,013
    Shanghai region
    Chonggu Project,             Qingpu      49%      116,524        145,266     22,465            -           -
    Shanghai
    Crystal Garden,              Qingpu      100%      77,804         79,523           -     62,779      79,523
    Shanghai
    Ledu Road Project,          Songjiang    33%       67,932        108,137     86,633            -           -
    Songjiang, Shanghai
    Golden Paradise,           Xinzhou New   100%     166,273        282,194    132,447            -           -
    Jiaxing                       District
    Guangfulin      Project,    Songjiang     45%     130,970        104,778           -           -           -
    Shanghai
    Qinglinjing,Shanghai          Pudong     100%      99,209        148,814           -           -           -
    New
    District
    Wujiefang project,         Pudong New    100%     121,463        129,242           -           -           -
    Shanghai                     District
    Land lot of Beiyi New        Gangzha     55%       99,910        218,650    117,499            -           -
    City, Nantong
    Tongshan Street            Pudong New    75%       58,550        182,230     52,338            -           -
    Project, Shanghai            District
    Firenze, Shanghai           Minhang       49%     296,295        285,793     23,147      80,433     143,823
    Bingjiang Project,         Pudong New    100%      38,753        103,132          -           -           -
    Shanghai                     District
    Blue Mountain Town,        Pudong New    100%     433,180        209,171           -     57,476     209,171
    Page 29
    Shanghai                   District
    Golden City, Shanghai    Pudong New     60%     405,627        809,929         -         -   244,437
    District
    Castle Tudor, Shanghai     Baoshan      100%    231,753        241,169         -    91,230   168,599
    Juyuan Project,            Jiading       50%     90,013        180,026    44,624         -         -
    Shanghai
    Floral City, Shanghai     Minhang       100%    140,678        207,773         -    32,523   207,773
    187 Wuzhong Road,         Minhang       100%     61,724        145,065         -    14,513   145,065
    Shanghai
    No. 53, Qibao Project,    Minhang       100%     49,294        126,869         -         -         -
    Shanghai
    New City Garden,          Minhang       51%     287,741        334,669    13,750    52,681    92,959
    Shanghai
    North of Land Lot No.     Minhang       51%      39,366         69,913         -         -         -
    35, Qibao, Shanghai
    Southern portion of       Minhang       50%      32,170        110,462         -         -         -
    Land Lot No. 03,
    Hongqiao Shanghai
    Nimble Bay, Suzhou        Industrial    70%     384,042        821,664         -         -   580,269
    District
    Benan Project, Suzhou     Industrial    51%     155,673        124,538         -    22,986   124,388
    District
    Golden Home (色家         Canglang      100%    134,771        242,588         -    22,977   242,588
    园), Suzhou
    Changfeng Villa (长风     Canglang      49%      48,713         48,693         -    27,726    48,700
    别墅), Suzhou
    Vanke International       Industrial    51%      47,177        117,936         -    64,786    64,786
    Plaza, (万科国际广场),     District
    Suzhou
    Vanke New Metropolis     Suzhou New     55%      89,098         83,220         -         -         -
    (万科新都会), Suzhou       District
    Golden Milestone          Jinchang      49%      99,093        247,732    87,139         -         -
    Project, Suzhou
    Quemeibin Project,        Wuzhong       55%     144,535        361,338         -         -         -
    Mudu Town, Suzhou          District
    Kunshan Golf Project      Bacheng       100%    433,916        328,678     9,407         -         -
    Town
    Glamorous City, Wuxi       Binhu         60%    960,000    1,346,963      46,607    99,736   830,329
    Golden Paradise,Wuxi     New District   100%    224,376      620,713      78,648    92,645   136,532
    The Paradiso, Wuxi         Binhu        100%    154,468      431,592           -    25,887   106,734
    Xincheng Road Project,     Binhu        100%    154,119      385,299     122,328         -         -
    Wuxi
    Liangzhu New Town,         Yuhang       100%   3,095,310   2,183,173      56,225    14,537   679,567
    Hangzhou
    West Spring Butterfly       Xihu        51%     155,838        354,038         -   150,351   210,646
    Garden, Hangzhou
    Golden Home (色家          Fuyang       55%      55,576        110,834         -   110,834   110,834
    园), Hangzhou
    Gongwang (公望),           Fuyang       100%    517,900        208,981         -    15,914    67,704
    Hangzhou
    Caozhuang Project,        Jianggan      100%     37,178         86,938         -         -         -
    Hangzhou
    Jinse Caozhuang (色       Jianggan      50%      68,564        150,841         -         -         -
    草庄). Hangzhou
    Fuyang Golf Land Lot       Fuyang       20%      69,941        104,912         -         -         -
    A, Hangzhou
    Fuyang Golf Land Lot       Fuyang       20%      69,989         83,987         -         -         -
    B, Hangzhou
    Fuyang Golf Land Lot       Fuyang       20%      68,244         68,244         -         -         -
    C, Hangzhou
    Fuyang Golf Land Lot       Fuyang       20%      59,933         59,933         -         -         -
    D, Hangzhou
    Anpin Street, Nanjing       Baixia      100%     27,325         20,340         -         -         -
    The Paradiso, Nanjing     Jiangning     100%    272,298        544,612   153,035    70,648    70,648
    Golden Milestone,          Yuehua       100%     42,318         82,341         -    70,031    82,341
    Nanjing
    Respecte Chateau (          Qixia       100%     91,751        201,388    92,122         -         -
    色领域), Nanjing
    Yanshan Avenue             Pukou        100%     62,300        100,000         -         -         -
    Landlot, Nanjing          District
    Glamorous City,           Runzhou       100%    795,100        942,820   109,206    77,561   338,530
    Zhenjiang
    Blue Mountain,            Runzhou       60%     285,683        416,285    63,000         -         -
    Zhenjiang
    Page 30
    Golden Town, Ningbo        Yinzhou      100%     190,369        313,602          -      61,224     312,391
    Yunluwan (云鹭湾),         Jiangbei      15%     314,200        393,740     38,296           -           -
    Ningbo
    Golden City, Ningbo        Yinzhou      100%      95,242        171,435     93,908           -           -
    Dream Town, Ningbo         Zhenhai       49%     226,777        488,148    137,378           -           -
    Golden Mingjun, Hefei      Shushan      50%      107,326        401,670    117,128     102,435     162,522
    King Metropolis, Hefei     Shushan      50%      115,628        412,101     67,775           -           -
    Dream Town, Hefei           Binhu       55%      107,220        376,857      3,196           -           -
    Qingshan Lake,            Qingshan      50%       97,061        133,693          -      22,904      37,830
    Nanchang                     Lake
    Dew Garden (润园),        Qingyunpu     50%       97,109        144,011     89,086      54,804      54,804
    Nanchang
    The Paradiso,                Xihu       50%       21,818         75,338     75,338            -           -
    Nanchang
    Tianxiang Garden            Gaoxin      33%      299,845        417,362           -           -           -
    Project, Nanchang
    Longwan Project,           Longwan      60%      125,219        179,768     90,424            -           -
    Wenzhou
    Dream Town, Wuhu           Dongxin      100%     274,404        493,926    151,329            -           -
    District
    Dream Town,                Hanjiang     65%      297,139        313,970     72,867            -           -
    Yangzhou                    District
    Subtotal                   14,219,815   19,419,047    2,247,345   1,499,621   5,553,493
    Beijing Region
    Ruyuan, Beijing             Haidian     49%      138,644        279,937     31,100           -           -
    No. 5 Park Front           Chaoyang     60%       37,917         97,044          -      33,345      97,044
    Boutique Apartment,
    Beijing
    Blue Mountain, Beijing     Chaoyang     100%      55,885        147,249      9,218      62,819      62,819
    The Metropolis (大都       Chaoyang      50%       5,329         42,556     42,556           -           -
    会), Beijing
    Changyang Project,         Fangshan     50%      437,179        853,165     66,943      64,381      64,381
    Beijing
    Changyang No. 3            Fangshan     50%       78,325        157,992     21,365            -           -
    Project, Beijing
    Xingfuhui (幸福汇),        Fangshan     68%       71,912        137,808     58,637            -           -
    Beijing
    New Milestone, Beijing     Fangshan     50%       77,834        146,002     66,883           -           -
    Jinyu Vanke City,          Changping    49%      178,908        543,461    120,200      97,740     267,093
    Beijing
    King Metropolis,           Changping    50%      206,007        577,188    212,575            -           -
    Beijing
    Holiday Town, Beijing       Fengtai      50%     224,289        413,304           -     70,312     388,338
    Hongshi Jiayuan (红狮       Fengtai     100%      59,800        184,502           -          -     146,009
    家园), Beijing
    King                         Lubei      60%       78,977        197,442    131,223            -           -
    Metropolis.Tangshan
    Stratford, Tangshan          Lunan      100%     153,527         96,661     49,760      29,363      29,363
    Holiday Views (假日风       Haigang      48%     270,549        642,357    241,798           -           -
    景) Qinghuangdao
    Phase II                    Fengtai     100%      14,449         36,123           -           -           -
    Guogongzhuang,
    Beijing
    Phase V                     Fengtai     50%      233,209        629,170           -           -           -
    Guogongzhuang,
    Beijing
    Golden Paradise,           Fangshan     50%       67,682        156,536           -           -           -
    Beijing
    Castle Tudor, Beijing       Daxing       50%       67,650      172,825           -           -           -
    Waterfront, Tianjin         Dongli      100%    2,708,886    1,763,059      91,596      75,633     709,878
    A Glamorous City,           Dongli      100%      176,773      258,579      25,521      64,275     158,417
    Tianjin
    New Milestone, Tianjin      Dongli       51%     136,524        204,786          -      93,797      93,797
    Holiday Dew Garden,         Xiqing      100%     229,300        343,101     79,069      18,895     126,559
    Tianjin
    Jin’ao International,      Xiqing      100%      58,577        162,566           -     33,360      33,360
    Tianjin
    Binhai Modern, Tianjin    Development   100%        6,538        40,312           -           -           -
    District
    Park Residence, Tianjin   Development   100%      32,270         48,731           -           -           -
    District
    Harbor (海港城),          Binhai New    51%      149,483        373,691    128,860            -           -
    Page 31
    Tianjin                    District
    Jinlu (锦庐), Tianjin    Binhai New    95%     90,604       126,600    13,580         -         -
    District
    East Coast, Tianjin      Binhai New    51%    255,000       382,500         -         -         -
    District
    Jinse Yazhu (色雅          Dongli      49%     90,792       171,281    14,616    56,064    56,064
    筑), Tianjin
    Shilinyuan (仕苑),         Jinnan      40%     63,582       114,474   104,573         -         -
    Tianjin
    New Elm Mansion,         Hunnan New    100%   182,139       289,647         -    57,843   289,647
    Shenyang                   District
    Dream Town,                Heping      49%    361,320       874,752    59,706    68,217   561,158
    Shenyang
    Rancho Santa Fe,          Dongling     100%   387,700       132,784         -    27,571   132,784
    Shenyang
    A Glamorous City,          Yuhong      100%   156,817       297,026      416     41,613   248,316
    Shenyang
    The Paradiso,            Hunnan New    100%   226,356       615,688    75,379   108,858   261,019
    Shenyang                   District
    Jiyu International (域      Tiexi      100%    27,249       108,581         -   106,092   106,092
    国际), Shenyang
    Park Residence,            Shenhe      55%     83,227       291,295         -         -         -
    Shenyang
    Whistler (惠斯),          Dongling     70%    315,362       378,434    43,715         -         -
    Shenyang
    Dadong Blue                Dadong      60%     74,527       222,520   100,919         -         -
    Mountain , Shenyang
    Spring Dew Mansion          Tiexi      70%     66,547       180,363    85,147         -         -
    (Long Mansion),
    Shenyang
    Spring Dew Mansion          Tiexi      100%    40,971       102,013         -         -         -
    (Run Mansion) ,
    Shenyang
    Xianghushengjing (香       Yuhong      49%    190,156       360,715   140,015         -         -
    湖胜景), Shenyang
    02A Xianghushengjing,      Yuhong      51%    135,464       286,165         -         -         -
    Shenyang
    Chunhe Project,            Shenhe      79%     81,378       431,232    82,623         -         -
    Shenyang
    Lutedan (特),              Heping      100%   120,333       360,999   103,013         -         -
    Shenyang
    Tomorrow Square,         Hunnan New    65%    199,319       597,957   215,818         -         -
    Shenyang                   District
    The Paradiso, Fushun     Development   100%   135,079       391,100   154,165         -         -
    District
    Whistler (惠斯),           Tiedong     100%   303,700       414,816   130,803    85,909    85,909
    Anshan
    Golden Home Anshan         Tiedong     100%    48,874        97,969         -         -    97,969
    Dream Town, Anshan         Gaoxin      100%   167,664       393,838   109,288    39,238   158,638
    Whistler East (惠斯        Tiedong     100%   118,500       296,250         -         -         -
    东) Project, Anshan
    Phase II of South Lake   Development   100%    91,500       348,000         -         -         -
    Project, Fushan            District
    Yongle Park, Anshan         Tiexi      51%    225,715       677,000         -         -         -
    Ravine Village, Dalian    Ganjingzi    55%    363,716       380,922    33,780   128,084   362,790
    A Glamorous City,         Ganjingzi    55%    216,000       448,512    71,186   100,496   228,495
    Dalian
    Spring Dew Mansion,,      Ganjingzi    100%   118,879       229,822         -         -         -
    Dalian
    Habor, Dalian            Puwan New     55%    757,350   1,253,300     194,033         -         -
    District
    Xishan Project, Dalian    Ganjingzi    55%     90,404       113,308         -         -         -
    Cherry Blossom            High-Tech    55%    192,248       363,349         -         -         -
    Garden, Dalian            Industrial
    Zone
    Yangpu Garden,            Economic     100%    89,678       176,618         -    78,856   175,964
    Changchun                Development
    Zone
    Waterside Villa (潭溪      Jingyue     100%    75,000        49,019         -    12,663    48,263
    别墅), Changchun         Development
    Zone
    Blue Mountine,              Erdao      100%   251,356       501,678   176,038         -         -
    Changchun
    Whistler (惠斯),           Jingyue     50%    399,715       484,714    65,526         -         -
    Changchun
    Page 32
    Park Residence,           Chaoyang       100%     276,769        503,349    220,739            -           -
    Changchun
    Dream Town, Jinlin         Gaoxin        65%      728,139     2,155,910     345,263            -           -
    Dream Town,                Jingyue       51%      350,965     1,056,480     137,112            -           -
    Changchun                Development
    Zone
    Wonderland, Qingdao          Jimo        55%      153,284        240,507     30,698      68,478     148,161
    A Glamorous City,         Chengyang      80%      200,289        341,404     51,604      56,157     293,566
    Qingdao
    City Garden, Qingdao       Chengyang      80%     130,873        228,823    114,913      56,700      56,700
    Aureate City, Qingdao         Sifang     100%      61,873        174,102          -      63,297     150,871
    Blue Mountain,                Shibei     100%      68,153        202,485     66,816           -           -
    Qingdao
    Dream Town, Qingdao           Sifang      55%     154,607        399,565     91,723            -           -
    Qingdao Ecological            Licang     100%     141,273        260,784    179,883            -           -
    Town
    Qingdao Town                 Jiaonan      34%     933,293        989,125          -            -           -
    Jinyu Internationl,        Wanbolin      100%      49,407        169,679    169,679            -           -
    Taiyuan
    Zitai, Taiyuan               Yingze      51%       95,687        331,236    136,224            -           -
    Spring Dew Mansion,            Yuci      51%      218,143        482,246    104,626            -           -
    Jinzhong
    Blue Mountain,             Wanbolin      51%      198,392        687,671           -           -           -
    Taiyuan
    Dituan Project, Yantai        Zhifu      100%     311,614        444,065     47,546            -           -
    Zhonglian Logistic           Fushan       70%     190,281        361,220    157,172            -           -
    Project, Yantai
    Subtotal                   17,013,686   30,680,039    5,205,641   1,800,056   5,639,464
    Chengdu region
    A Glamorous City,          Chenghua      60%      308,501        761,258     69,350     138,233     612,385
    Chengdu
    Jinyu Xiling (域西            Jinniu     60%       79,331        361,100           -    127,912     225,224
    岭), Chengdu
    Respecte Chateau (         Qingyang      100%      49,628        244,459    140,164            -           -
    色领域), Chengdu
    Jinrun Huafu, Chengdu       Jingjiang    100%      52,895        267,928     67,169      47,350      47,350
    Golden Hairong,              Wuhou        49%      54,970        234,125          -           -      51,110
    Chengdu
    Haiyue Huicheng,           Shuangliu     90%      104,307        521,698    138,298            -           -
    Chengdu
    Phase 1, Wulonshang           Xindu      100%     345,168        356,503    203,118            -           -
    (五龙山), Cheungdu
    Vanke Diamond Plaza,       Chenghua      100%      15,404         92,422     92,422            -           -
    Chengdu
    A Glamorous City,          East Lake     100%     225,258        405,457           -    143,061     405,457
    Wuhan                      High-Tech
    Development
    Zone
    Element Integration (万     Jianghan     55%       12,022         42,869           -     37,527      37,527
    科圆方), Wuhan
    Golf City Garden,          Dongxihu      49%      237,660        393,858     10,280     101,456     286,822
    Wuhan
    King Metropolis,            Wuchang      55%       59,790        191,300           -     36,458      36,458
    Wuhan
    Dream Town, Wuhan           Jianghan     100%      65,901        299,337    130,511     109,305     109,305
    Vanke Stratford,           East Lake     100%     230,970        349,607    147,744      84,679      84,679
    Wuhan                      High-Tech
    Develop-
    mentZone
    The Paradiso, Wuhan      Economic and    100%     213,440        533,600     85,487            -           -
    Technological
    Development
    Zone
    Huanzi Lake, Wuhan          Jianghan     100%     102,500       542,923           -            -           -
    Tangjiadun, Wuhan           Jianghan      50%     267,200     1,324,300           -            -           -
    Hanyang International,      Hanyang      100%     167,240       570,676     101,779            -           -
    Wuhan
    Changzheng Village         Hongshan      100%     282,235        871,721           -           -           -
    Wuhan
    Golden City, Wuhan         Hongshan      100%     274,100        896,484    370,837            -           -
    Huashan Ecological         Hongshan      50%      199,705        299,557          -            -           -
    Town, Wuhan
    Page 33
    Youcheng Ecological              Yubei          51%       229,581         344,372              31,486        122,649           280,406
    Garden (友诚生态名
    苑), Chongqing
    Tixiangjun (缇香郡),          Northern New     100%        41,448         145,067                   -          56,327           56,327
    Chongqing                       District
    Yuefu (悦府),                 Northern New     100%       138,071         376,737          186,386             23,178           23,178
    Chongqing                       District
    Jincheng (锦程),                Yuzhong        100%       105,463         533,486          270,491                  -                 -
    Chongqing
    Dream Town,                   Northern New      55%       278,165         647,378          215,219                  -                 -
    Chongqing                       District
    Vega Villa (天琴湾),            Jiangbei        45%       435,499         649,158                   -               -                 -
    Chongqing
    Xinde City, Xi’an               Yanta         100%        20,156         106,616                -             51,558          106,616
    Jinyu Qujiang (域曲           Qujiang New       55%       152,667         385,408          181,354                  -                -
    江), Xi’an                     District
    Dream Town, Xi’an             Chang’an        85%       176,056         614,377          232,082                  -                 -
    Landlot No. 3, Dream           Chang’an       100%       113,231         352,803           88,021                  -                 -
    Town, Xi’an
    King Metropolis, Xi’an         Weiyang         51%       106,667         373,634                -                  -                -
    Daminggong, Xi’an.             Weiyang         70%        69,052         221,603                -                  -                -
    King Metropolis,                Xiaohe          51%       351,800         581,217          132,776             30,393           30,393
    Guiyang
    Nimble Bay, Guiyang             Yunyan         100%        90,456         201,012            6,804                  -                 -
    Power Plant, Guiyang            Xiaohe          51%       181,235         761,187                -                  -                 -
    Jinyu Tixiang,                  Panlong        100%       104,724         267,084          103,972                  -                 -
    Kunming
    Dew Garden (润园),              Panlong        100%       192,104         243,214              53,942               -                 -
    Baisha, Kunming
    King Metropolis,              New District     100%        53,267         146,009          116,506                  -                 -
    Urumqi
    Nanshan Villa, Urumqi        Urumqi            100%        32,760          14,900                   -               -                 -
    County
    Subtotal                           6,220,627       16,522,544        3,176,198        1,110,086        2,393,237
    Total                            52,691,450       95,604,844       14,475,463        6,585,694       18,980,207
    3. Major Suppliers and Customers
    (1) The aggregate purchase amount from the Company’s five largest suppliers as a percentage of its total
    purchase during the year
    In 2011, the Company continued to expand the scope of sourcing, deepen the relationship with its partners and
    increase the proportion of centralised procurement and strategic collaborations, in order to achieve economies of
    scale. During the year under review, the aggregate purchase amount from the five largest material and
    equipment suppliers was RMB2.34 billion, representing a year-on-year increase of 63.6% and accounting for
    3.19% of the total purchase for the year, which is 1.56 percentage points lower than 2010’s.
    (2) The aggregate revenue from the Company’s five largest customers as a percentage of its total revenue
    during the year
    The Company’s product is commodity housing. A majority of its customers are individual homebuyers from
    various cities. Government projects made up only a certain portion of its total sales and sales to bulk purchasers
    generating a relatively high sales amount were seen only in a few cases. Revenue from the five largest customers
    in 2011 amounted to approximately RMB1.732 billion, accounting for 2.6% of the Company’s total revenue of
    2011.
    4. Financial status of the Company
    During the year under review, the Company’s operations remained stable and its financial position was sound.
    Unit:RMB’000
    Financial indicators             31-Dec-2011         31-Dec-2010          Change (+/-)                 Reasons for changes
    Total Assets                           296,534,297        215,984,662             37.29%        Expansion of the Company
    Inventories                            208,661,350        133,680,569             56.09%        Increase in newly added projects
    Increase in Investment properties under
    Investment properties                      1,126,105         129,176                 771.76%    development and properties under
    development
    Current    Loans        and
    23,570,276       16,783,691                40.44%     Change in debt structure
    borrowings
    Page 34
    Increase in investment for the
    development   of   projects with
    Trade and other payables              168,893,596            106,138,344               59.13%
    associates and jointly controlled
    entities
    Total equity attributable
    to equity
    52,967,795            44,232,677               19.75%    Increase in net profit
    shareholders      of     the
    Company
    Financial indicators                  2011                   2010           Change (+/-)                   Reasons for changes
    Revenue                                 67,709,396            47,763,550             41.76%      Increase in booked scales
    Cost of sales                           43,249,418            29,528,521             46.47%      ncrease in booked scales
    Profit before taxation                  19,490,060            14,542,867             34.02%      Operating profit increased
    Income tax                               7,890,454             5,703,256             38.35%      Net profit increased during the year
    Profit Attributable to                                                                           Net profit increased during the year
    Equity shareholders of the                9,624,875          7,283,128                 32.15%
    Company
    Other financial indicators                   2011                 2010        Change (+/-)               Reasons for changes
    Greater increase in advance receipts,
    Gearing ratio                               77.12%               74.73%      Up by 2.39percent
    etc
    Relatively rapid increase in advance
    Current ratio                                  1.41                              down by 0.18    receipts    and     properties     under
    1.59
    development
    Relatively rapid increase in advance
    Quick ratio                                    0.37                 0.56        Down by 0.19     receipts    and     properties     under
    development
    Down by     Greater increase in receipts in advance,
    Equity ratio                                21.88%               25.27%
    2.39percent   etc
    Accounts turnover (Day)                           8                      9                   -   Speed up turnover
    Relatively rapid increase in properties
    Increase by
    Inventory turnover (Day)                     1,442                 1,337                         held for development and properties
    58days
    under development
    5. Investment of the Company
    (1) Use of proceeds from the capital market
    Public issue of A Shares in 2007
    Having obtained the approval from the relevant authorities, the Company issued a prospectus regarding the
    public issue of A shares on 22 August 2007. The Company issued 317,158,261 shares (par value: RMB1 per
    share) at an issue price of RMB31.53 per share, raising proceeds of RMB9,999,999,969.33. After deducting
    issuing expenses of RMB63,398,268.11, the net proceeds amounted to RMB9,936,601,701.22 and were received
    on 30 August 2007. Shenzhen Nanfang-Minhe CPA Firm Co., Ltd (深圳南方民和会计师事务所) had prepared
    and filed a capital verification report (Shen Nan Yan Zi (2007) No. 155).
    The aforesaid proceeds were used to invest in 11 projects. Details on the investment amount, investment
    gain, development progress of the projects as of 31 December 2011 are as follows:
    Unit: RMB’000
    Total amount of proceeds, net                           9,936,600 Funds used for investment during the year                     209,820
    Amount of proceeds with
    0
    changed usage
    Accumulated funds used                           9,816,810
    Percentage of proceeds with
    0%
    changed usage
    Is there              Funds used                                               Does it
    any                   for                                      Accumulated
    change Planned        investment Accumulated Investment                        achieve     Change in
    Investment projects                                                                      realized
    investment                funds used  progress                        estimated   feasibility
    in                    during the                               income          income
    project               year
    Everest Town (former
    Science City H3 Project),         No        600,000                       600,000    100%            150,400       Yes          No
    Guangzhou
    The Paradiso (former                                                                                 436,200       Yes          No
    Jinshazhou                        No        800,000                       800,000    100%
    Project), Guangzhou
    The Dream Town (former                                                                               397,950       Yes          No
    No        900,000                       900,000    100%
    Nanzhuang Project), Foshan
    Page 35
    Zhuhai Hotel Project,                                                                                228,230      Yes          No
    Xiangzhou                        No        650,000         9,960         650,000     100%
    District, Zhuhai
    West Spring Butterfly Garden     No                                                                  991,590      Yes          No
    (former Jiangcun Project),                 700,000                       700,000     100%
    Hangzhou
    Liangzhu Project, Yuhang         No                                                                  435,810      Yes          No
    District,                                1,700,000                     1,700,000     100%
    Hangzhou
    Golden Town Project,             No                                                                  907,570      Yes          No
    1,636,600                     1,636,600     100%
    Yinzhou District, Ningbo
    Wujiefang Project, Pudong,       No                                                                         -     Yes          No
    1,200,000       139,650       1,200,000     100%
    Shanghai
    Jinse Yazhu (former Zhonglin     No                                                                  268,760      Yes          No
    700,000                       700,000     100%
    Project), Shanghai
    Anpin Street Project, Baixia     No                                                                         -     Yes          No
    650,000        60,210         530,210     82%
    District, Nanjing
    Stratford (former Huangjiayu     No                                                                   45,620      No           No
    400,000                       400,000     100%
    Project), Nanjing
    Total              No       9,936,600       209,820 9,816,810            99%           3,862,130             -      -
    (1) The preconstruction of Shanghai Wujiefang Project was affected by the Government’s redirection
    of roads due to its location within the Expo area. Construction has already commenced in the second
    half of 2010. The overall development plan of the project will be adjusted according to progress. The
    project is expected to be ready for sale in 2012. Nanjing Anpin Street Project was not able to
    commence construction according to schedule, as the government was making adjustment to its
    Remarks on delay and failure planning to preserve the city’s heritage. The Company has completed planning reports submittion.
    The overall development plan of the project will be adjusted according to progress.
    to achieve estimated income
    (by project)                  (2) Stratford Project in Nanjing was almost sold out and delivered in 2010. Accumulative net margin
    amounted to 9.95%. The project had achieved brand effect but the income generated from the project
    did not reach the estimated level stated in the prospectus, while the income of other projects financed
    by the raised proceeds exceeded or is expected to exceed the estimated level. It is expected that the
    overall return from the projects financed by the raised proceeds will be higher that the estimated level
    stated in the prospectus.
    Remarks on reasons and
    procedures for changes (by No changes
    project)
    Application of the balance of As of 31 December 2011, the Company had applied RMB9,816,810,000 of the proceeds
    in accordance with the prospectus. The amount represented 98.8% of the net proceeds of
    the                           RMB9,936.6 million. The balance of proceeds of RMB119.79 million will be applied in
    proceeds           accordance with the progress of project development.
    (2) Use of capital not from the capital market
    A. Equity investment
    During the year under review, the Company’s investment amount increased by RMB12,263 million, which were
    used as follows:
    1) During the year under review, the Company promoted and established 26 new subsidiaries, each with
    registered capital of over RMB30 million, of which actual investment had been made. The details are as follows:
    Actual
    Registered
    N                                                                                                  investment by         Scope of
    Newly-established company                       Currency         Capital
    o.                                                                                                 China Vanke           business
    (’000)
    (RMB’000)
    Shenyang Vanke Hengxiang Property Co., Ltd.                   RMB                2,500,000          1,975,000     Property
    1    (阳万科恒祥置地有限公司)                                                                                          development
    Shenyang Vanke Dongban Property Co., Ltd.                     RMB                1,700,000          1,105,000     Property
    2    (阳万科东阪置业有限公司)                                                                                          development
    Dalian Xicheng Property Co., Ltd.                             RMB                  340,000            187,000     Property
    3    (大连西城置业有限公司)                                                                                            development
    Chongqing Wanxu Property Co., Ltd.                            RMB                  225,000            225,000     Property
    4    (重庆万旭置业有限公司)                                                                                            development
    Dalian Vanke The Paradiso Development Co., Ltd.               USD                  200,000            720,000     Property
    5    (大连万科域蓝湾开发有限公司)                                                                                      development
    Qinhuangdao Vanke Real Estate Co., Ltd.                       RMB                  160,000            160,000     Property
    6    (秦皇岛万科房地产开发有限公司)                                                                                    development
    Qinhuangdao Vanke Holiday Town Real Estate                    RMB                  150,000            120,000     Property
    Development Co., Ltd.                                                                                             development
    7    (秦皇岛万科假日风景房地产开发有限公司)
    Page 36
    Wuhan Liantou Vanke Ecological Town Real Estate Co.,    RMB   150,000          75,000   Property
    Ltd.                                                                                    development
    8       (武汉联投万科生态城房地产有限公司)
    Chengdu Vanke Kaibin Land Consolidation Co., Ltd.       USD   130,000         504,645   Land
    9       (成都万科凯宾土地整有限公司)                                                            consolidation
    Vanke(Chongqing)Blue Mountain Property Co., Ltd.        USD   110,000         383,681   Property
    10      (万科(重庆)蓝山置业有限公司)                                                          development
    Rizhou Vanke Real Estate Development Co., Ltd.          RMB   100,000         100,000   Property
    11      (日照万科房地产开发有限公司)                                                            development
    Zhejiang Zhenan Vanke Real Estate Co., Ltd.             RMB   100,000         100,000   Property
    12      浙江浙南万科房地产有限公司                                                              development
    Tianjin Vanke Jiangjian Property and Investment Co.,    RMB   100,000          51,000   Property
    Ltd.                                                                                    development
    13      (天津万科疆建置业投资有限公司)
    Changchun Vanke Xincheng Real Estate Co., Ltd.          RMB   100,000          51,000   Property
    14      (长春万科新城房地产开发有限公司)                                                        development
    Jiangxi Vanke Yida Property Investment Co., Ltd.        RMB   100,000          50,000   Property
    15      (江西万科益达置业投资有限公司)                                                          development
    Beijing Jindi Vanke Real Estate Development Co., Ltd.   RMB    60,000          30,000   Property
    16      (京第万科房地产开发有限公司)                                                            development
    Xuhu Vanke Real Estate Co., Ltd.                        RMB    60,000          60,000   Property
    17      (芜湖万科房地产有限公司)                                                                development
    Beijing Wanzhu Real Estate Development Co., Ltd.        RMB    51,000           5,100   Property
    18      (京万筑房地产开发有限责任公司)                                                          development
    Nantong Vanke Investment Co., Ltd.                      RMB    50,000          27,500   Property
    19      (南通万科投资有限公司)                                                                  development
    Wanzhou Vanke Litian Property Co., Ltd.                 RMB    50,000          30,000   Property
    20      (温州万科天置业有限公司)                                                                development
    Beijing Wukuang Vanke Property Co., Ltd.                RMB    50,000          24,500   Property
    21      (京五矿万科置业有限公司)                                                                development
    Wuhu Vanke Wanjia Real Estate Co., Ltd.                 RMB    30,000          30,000   Property
    22      (芜湖万科万嘉房地产有限公司)                                                            development
    Wuhu Vanke Wandong Real Estate Co., Ltd.                RMB    30,000          30,000   Property
    23      (芜湖万科万东房地产有限公司)                                                            development
    Guangzhou Wanrong Real Estate Co., Ltd.                 RMB    30,000          30,000   Property
    24      (广州市万融房地产有限公司)                                                              development
    Putian Vanke Property Co., Ltd.                         RMB    30,000          24,000   Property
    25      (莆田市万科置业有限公司)                                                                development
    Xiamen Vanke Maluanwan Co., Ltd.                        RMB   30,0000          12,000   Property
    26      (厦门市万科马銮湾置业有限公司)                                                          development
    Total                                                                               6,110,425
    In addition to the aforesaid companies, the Group had promoted and established another 34
    companies, with a total amount of investment of RMB240 million.
    2). The major companies the Group acquired during the year under review are as follows:
    a) On 1 April 2011, the Company acquired 100% equity interests in Guangzhou Panyu Xingxin Real Estate
    Co., Ltd. for a consideration of RMB3.1 billion.
    b) On 4 November 2011, the Company acquired 50% equity interests in Shenzhen Mingjue Investment
    Development Company Limited, through which the Company obtained 90% equity interests in Shenzhen
    Mingjue Real Estate Co., Ltd. ( 深 圳 市 名 爵 房 地 产 有 限 公 司 ), a subsidiary of Shenzhen Mingjue
    Investment Development Company Limited, for a consideration of RMB854 million.
    c) On 4 November 2011, the Company acquired 65% equity interests in Jiangxi Tianxiangyuan Property Co.,
    Ltd (江西天香园房产置业有限公司)for a consideration of RMB173 million.
    d) On 9 May 2011, the Company acquired 100% equity interests in Hong Kong Future Vision Investment Ltd.
    (香港鸿弘投资有限公司) for a cash consideration of US$23 million.
    e) On 25 August 2011, the Company acquired 60% equity interests in Urumqi Yama West Bank Trading Co.,
    Ltd. (乌鲁木齐市雅玛西岸商贸有限公司) for a consideration of RMB123 million.
    During the year under review, the Company acquired another 16 companies for a total consideration of RMB247
    million.
    Page 37
    3) During the year under review, the Company increased the capital of 18 subsidiaries by RMB1,242 million. Of
    the total amount, RMB568 million was for Guangzhou Wanyi Real Estate Co., Ltd. and RMB250 million for
    Beijing Zhuzong Vanke Real Estate Development Co., Ltd. Capital injection to other companies amounted to
    RMB424 million.
    B. Other investments
    During the year under review, the Company acquired 52 development projects, with a site area attributable to
    China Vanke’s equity holding of approximately 4,160,000 sq m (planned GFA attributable to China Vanke’s
    equity holding of approximately 9,220,000 sq m). Besides, the Company was also involved in 6 city
    redevelopment projects; according to the current planning, the related site area attributable to China Vanke’s
    equity holding was approximately 690,000 sq m (planned GFA attributable to China Vanke’s equity holding
    was approximately 2,270,000 sq m).
    Unit: sq m
    GFA
    attributable
    Equity                 Planned     to China
    No.      City                  Project              Location                       Site area                                Progress
    interest                 GFA        Vanke’s
    equity
    holding
    1     Shenzhen     Langqi Project             Longgang District         100%          41,487       22,380         22,380       Pre-
    construction
    2     Shenzhen     Feilijun, Shenzhen         Bao’an                    55%          77,265      254,930       140,212       Sale in
    District                                                                       progress
    3     Huizhou      Subsequent phase of        Huidong County             67%           28,000      56,000        37,520        Pre-
    Lunas Del Mar,                                                                                          construction
    4     Dongguan     Spring Dew Mansion         Tangxia Town               51%          53,060      105,641        53,877       Under
    construction
    5     Dongguan     Phase II of Tangxia Town   Tangxia Town               51%          75,084      150,488        76,749        Pre-
    construction
    6     Dongguan     Song Lake Centre           Songshan Lake              34%          95,506       73,872        25,116        Pre-
    Science and                                                                  construction
    Technology
    Industry Park
    7     Dongguan     Area 2, Song Lae Centre    Songshan Lake              25%          30,084       30,084         7,521       Pre-
    Science and                                                                  construction
    Technology
    Industry Park
    8     Guangzhou    Stratford                  Panyu District            100%         364,651      571,743       571,743       Sale in
    progress
    9     Guangzhou    Landlot B, Science City,   Luogang District           33%         109,748      274,370        90,542        Pre-
    construction
    10    Guangzhou    Baiyun New Town,           Baiyun District           100%          24,052       94,264        94,264        Pre-
    construction
    11    Foshan       Nanyue Project,            Chancheng                  51%          89,000      373,820       190,648        Pre-
    District                                                                     construction
    12    Zhongshan    Crystal City               Torch Development          65%         219,484      447,589       290,933        Pre-
    Zone                                                                         construction
    13    Zhuhai       City Garden                Jinwan District            51%           63,233     185,432        94,570        Pre-
    construction
    14    Xiamen       Dream Town                 Haicang District           40%         189,752      517,690       207,076        Pre-
    construction
    15    Putian       Dream Town                 Licheng District           80%         148,014      329,906       263,925       Under
    construction
    16    Changsha     Gaozheng Project           Yuhua District             60%          40,360      169,797       101,878        Pre-
    construction
    17    Shanghai          Juyuan project        Jiading District           50%          90,013      180,026        90,013       Under
    construction
    18    Shanghai     Ledu Road project ,        Songjiang District         33%          67,932      108,137        35,685       Under
    Songjiang                                                                                               construction
    19    Shanghai     Southern portion of Land   Minhang District           50%          32,170      110,462        55,231        Pre-
    Lot No. 03, Hongqiao                                                                                    construction
    20    Hangzhou     Land Lot A, Fuyang Golf    Fuyang City                20%          69,941      104,912        20,982        Pre-
    construction
    Page 38
    21   Hangzhou     Land Lot B, Fuyang Golf      Fuyang City                20%     69,989     83,987     16,797       Pre-
    construction
    22   Hangzhou     Land Lot C, Fuyang Golf      Fuyang City                20%     68,244     68,244     13,649       Pre-
    construction
    23   Hangzhou     Land Lot D, Fuyang Golf      Fuyang City                20%     59,933     59,933     11,987       Pre-
    construction
    24   Suzhou       Golden Milestone             Jinchang District          49%     99,093    247,732    121,389      Sale in
    progress
    25   Suzhou       Quemeibin Project, Mudu      Wuzhong District           55%    144,535    361,338    198,736       Pre-
    Town                                                                                           construction
    26   Nanjing      Yanshan Avenue Project       Pukou District            100%     62,300    100,000    100,000       Pre-
    construction
    27   Nanchang     Tianxiangyuan                Gaoxin                     33%    299,845    417,362    135,643       Pre-
    District                                                          construction
    28   Hefei        Dream Town                   Binhu District             55%    107,220    376,857    207,272       Pre-
    construction
    29   Wuhu         Dream Town                   Chengdong        New      100%    274,404    493,926    493,926      Sale in
    District                                                            progress
    30   Beijing      Phase II, Guogongzhuang      Fengtai District          100%     14,449     36,123     36,123       Pre-
    Project                                                                                        construction
    31   Beijing      Phase V Guogongzhuang,       Fengtai District           50%   233,209     629,170    314,585       Pre-
    Beijing                                                                                        construction
    32   Beijing      Golden Paradise,             Fangshan District          50%     67,682    156,536     78,268       Pre-
    construction
    33   Beijing      Castle Tudor                 Daxing District            50%     67,650    172,825     86,413       Pre-
    construction
    34   Qinhuangda   Holiday Town                 Haigang                    48%    270,549    642,357    308,331      Sale in
    o                                                                                                             progress
    35   Tianjin      East Coast,                  Binhai New Area            51%    255,000    382,500    195,075       Pre-
    construction
    36   Tianjin      Shilinyuan                   Jinnan District            40%     63,582    114,474     45,790      Sale in
    progress
    37   Shenyang     Tomorrow City                Hunnan                     65%    199,319    597,957    388,672      Sale in
    New District                                                        progress
    38   Fushun       Phase II, Paradiso Project   Development               100%     91,500    348,000    348,000       Pre-
    District                                                          construction
    39   Dalian       Xishan Project               Ganjingzi District         55%     90,404    113,308          `       Pre-
    construction
    40   Dalian       Cherry Blossom Garden        High-Tech Zone             55%    192,248    363,349    199,842       Pre-
    construction
    41   Anshan       Yongle Park Project          Tiexi District             51%    225,715    677,000    345,270       Pre-
    construction
    42   Changchun    Dream Town                   Jingyue Economic           51%    350,965   1,056,480   538,805      Sale in
    Development Zone                                                    progress
    43   Qingdao      Qingdao Town                 Jiaonan City               34%    933,293    989,125    336,303      Under
    construction
    44   Taiyuan      Zitai                        Yingze District            51%     95,687    331,236    168,931      Under
    construction
    45   Taiyuan      Jinyu Internationl,          Wanbolin District         100%     49,407    169,679    169,679      Sale in
    progress
    46   Taiyuan      Blue Mountain                Wanbolin District          51%    198,392    687,671    350,712      Under
    construction
    47   Jinzhong     Spring Dew Mansion,          Yuci                       51%    218,143    482,246    245,945      Under
    construction
    48   Chengdu      Vanke Diamond Plaza          Chenghua District         100%     15,404     92,422     92,422      Under
    construction
    49   Wuhan        Golden City                  Hongshan                  100%    138,500    426,072    426,072       Pre-
    District                                                          construction
    50   Wuhan        Changzhengcun                Hongshan                  100%    282,235    871,721    871,721       Pre-
    District                                                          construction
    51   Wuhan        Huashan Ecological Town      Huashan Ecological         50%    199,705    299,557    149,779       Pre-
    Project                      New Town                                                          construction
    52   Wuhan        Hanyang     International    Hanyang District          100%    167,240    570,676    570,676      Sale in
    project                                                                                          progress
    53   Xi’an,      Land Lot No. 3, Dream        Chang’an District        100%    113,231    352,803    352,803      Sale in
    Town                                                                                             progress
    54   Xi’an,      Daminggong Project           Weiyang District           70%     69,052    221,603    155,122       Pre-
    construction
    Page 39
    55    Xi’an,         King Metropolis             Weiyang District           51%                 106,667         373,634          190,553           Pre-
    construction
    56    Chongqing       Vega Villa                  Jiangbei                   45%                 435,499         649,158          292,121           Pre-
    District                                                                                       construction
    57    Guiyang         Power Plant Project         Xiaohe District            51%                 181,235         761,187          388,205           Pre-
    construction
    58    Urumqi          Nanshan Project             Urumqi County              100%                 32,760          14,900             14,900         Pre-
    construction
    Total                                        -         8,453,122        18,954,692        11,493,701              -
    The total land premium and composite redevelopment cost of the above-mentioned projects attributable to China
    Vanke’s equity holding was approximately RMB29.5 billion. As at the end of 2011, the Company had paid a
    total premium and redevevlopment cost of approximately RMB18.2 billion for the above-mentioned new
    projects.
    From the end of the year under review to the date of publication of this report, the Company had participated in
    1 redevelopment project, with a site area of approximately 84,000 sq m.According to current planning, the
    corresponding GFA was approximately 394,000 sq m. Details are as follows:
    (Unit: sq m)
    GFA
    attributable
    Equity                          Planned         to China
    City               Project            Location                           Site area                                           Progress
    interest                        GFA             Vanke’s
    equity
    holding
    Wenchong                                                                                                        Under
    Guangzhou      redevelopment, project    Huangpu            100%                84,226         394,432             394,432     construction
    6. Project development plan for the new year
    At the end of 2011, the Company had 280 development projects; the total GFA of projects under development
    attributable to China Vanke’s equity holding amounted to approximately 21,650,000 sq m, the total GFA of
    projects under planning attributable to China Vanke’s equity holding amounted to approximately 35,470,000 sq
    m.
    In 2012, adjustment will continue in the property market. In view of the Company’s existing projects, the floor
    area commencing construction for the year is expected to amount to 13,280,000 sq m, which is 8.3% lower than
    the actual floor area commencing construction achieved in 2011. Since construction of part of the projects
    acquired in 2012 will commence in the current year, it is expected that the actual construction area in 2012 will
    be higher than that of 2011. On the other hand, the Company will also continue to speed up construction to
    shorten the time for completion. The completed area in 2012 is expected to amount to 8,900,000 sq m, up by
    35% from the actual completed area in 2011.
    The Group’s major projects in 2012:
    Unit: sq m
    Planned
    area of         Planned           GFA
    newly           complete          construction
    Project Name                           Location   Equity        Site area             Planned          commen          d                 of which not
    interest                            GFA              ced             area   in         commenced
    construct       2012              as at the end
    ion                               of 2011
    in 2012
    Guangshen region
    Vanke Centre, Shenzhen                 Yantian      100%                 61,730              80,201               -             -                    -
    Vega Villa, Shenzhen                   Yantian      100%                253,990              25,040               -         2,901               4,092
    Yantian Central Line Project           Yantian      100%                137,250             345,270     193,870                 -            325,370
    King Metropolis, Shenzhen              Baoan        100%                 68,310             196,182               -             -                    -
    Respecte Chateau, Shenzhen             Baoan        100%                 65,364             161,856               -        49,343               7,972
    Ravine Village, Shenzhen               Baoan         60%                158,639              47,270               -             -              47,270
    The Village, Shenzhen                  Longgang     100%                421,916             595,982               -             -                    -
    Golden Hill, Shenzhen                  Longgang     100%                 62,474              96,969               -        41,001                    -
    Page 40
    Jiuzhou Project, Shenzhen           Longgang    100%        201,833    967,428    157,370         -   427,218
    Qianlin Shanju, Shenzhen            Longgang    100%        198,597    361,753          -     7,485         -
    Home, Shenzhen                      Longgang    100%         31,337    150,370          -         -         -
    Jinse Qinyuan Project, Shenzhen     Longgang     90%         37,740     69,608          -         -         -
    Shuijing Project, Buji, Shenzhen    Longgang    60%         164,989    455,134    112,848         -   449,360
    Park Avenue, Shenzhen               Longgang    65%         104,819    471,915     92,450         -   433,785
    Golden Paradise,, Shenzhen          Pingshan    100%        104,801    315,808    120,356         -   158,440
    New
    District
    Yuyi Village Project, Shenzhen      Nanshan     80%          19,500    142,000          -         -   142,000
    Nanyuan New Village Project,        Nanshan     80%          82,600    581,700          -         -   581,700
    Shenzhen
    Tangyue, Dongguan                   Tangxia     51%         596,786     412,504    63,403    25,883   218,187
    Dajia Island, Shenzhen              Huizhou     100%        364,450      93,340         -         -    93,340
    Lunas Del Mar, Huizhou              Huidong      67%        704,223   1,139,325    65,000         -   645,800
    Jinyu Huating, Huizhou              Huicheng    100%        151,298     313,678    64,751    24,477   157,961
    Langqi Project, Shenzhen            Longgang    100%         41,487      22,380         -         -    22,380
    Feilijun, Shenzhen                  Baoan       55%          77,265     254,930   112,056         -   226,168
    Subsequent phase of Lunas Del       Huidong     67%          28,000      56,000         -         -    56,000
    Mar,
    Huidong
    The Paradiso, Guangzhou             Baiyun      50%         144,657     433,584         -         -         -
    Aureate City, Guangzhou             Panyu       100%         58,093      72,549         -         -         -
    Tongfu West, Guangzhou              Haizhu      100%          9,929      85,279         -         -         -
    Le Bonheur, Guangzhou               Liwan       100%         38,111     135,689         -    36,084         -
    Jinshazhou B04 Project, Guangzhou   Baiyun      100%         17,207      30,973         -         -         -
    Fuqian No. 1, Guangzhou             Nansha       95%        134,760     269,520         -    66,557         -
    Racho Santa Fe, Guangzhou           Huadu        49%        210,288     124,338         -    14,517         -
    Dream Town, Qingyuan                Qingyuan    100%        689,326   1,356,279   566,000   113,382   989,349
    Vanke Huafu, Qingyuan               Qingyuan    100%         79,164     312,820    73,598    22,442   186,820
    Donghui Town, Guangzhou             Luogang     55%         177,588     454,175    56,545         -   318,173
    Stratford, Guangzhou                Panyu       100%        364,651     571,743         -         -   397,421
    Landlot B, Science City,            Luogang     33%         109,748     274,370    73,816         -   274,370
    Guangzhou
    Baiyun New Town, Guangzhou          Baiyun      100%         24,052     94,264     45,000         -    94,264
    Jinyu Songhu (域松湖),              Songshan    51%         136,151    381,000    169,260    78,064   176,505
    Dongguan                            Lake
    Hongxinuoya, Dongguan               Songshan    100%        349,951    267,450          -    86,247        0
    Lake
    Humen Zitai (虎门紫台),             Humen       100%         60,570    151,426          -    90,921         -
    Dongguan
    Chang’ an Vanke Centre,            Chang’an   100%         75,653    249,654    100,412    43,150   205,192
    Dongguan                            Town
    Vanke Building, Dongguan            Nanchang    100%          4,771     42,937          -         -         -
    King Metropolis, Dongguan           Nanchang    51%         189,934    493,827    119,871    78,815   119,871
    Feilishan (翡丽山), Dongguan        Nanchang    50%         249,534    374,302          -    50,744   218,833
    Jiyu International,                 Houjie      100%         88,788    257,486     48,845    16,479    48,845
    Dongguan                            Town
    Changping Dream Town,               Changpin    100%        635,971    442,460    106,424    18,928   106,424
    Dongguan                            g
    Vanke Luhu, (万科麓湖) Dongguan     Dalingsha   100%        146,674    117,341          -    37,402         -
    n
    The Paradiso, Dongguan              Dalang      51%          91,780    183,560          -         -         -
    Spring Dew Mansion, Dongguan        Tangxia     51%         128,144    256,129    117,930         -   176,221
    Song Lake Centre, Dongguan          Songshan    34%          95,506     73,872     31,733         -    73,872
    Lake
    Song Lake Centre II, Dongguan       Songshan    25%          30,084     30,084     30,084         -    30,084
    Lake
    The Paradiso, Foshan                Nanhai       55%        221,035    574,690    219,213   163,012    95,708
    Crystal City, Foshan                Shunde      49%         284,036    710,092     97,700    38,013   503,854
    Qinyuan, Foshan                     Shunde      100%         80,571    241,712     64,080   144,324    68,005
    Nancun Project,                     Chanchen    57%         114,429    564,667    461,680         -   421,387
    Foshan                              g
    Binfen Siji (缤纷四季) Project,     Shunde      100%
    Foshan                                                      156,840    429,527     90,959   118,910    90,959
    Tianaowan, Foshan                   Shunde      50%          30,382     75,954          -         -    20,904
    Page 41
    Jinse Xigu Huayuan (色溪谷花        Nanhai       100%          66,533      79,839            -     27,181       54,456
    园), Foshan
    Xincheng Wanpan, Foshan             Shunde       100%         69,877      139,754           -           -            -
    Rancho Santa Fe, Foshan             Shunde       100%        127,598      228,002           -           -            -
    King Metropolis, Foshan             Nanhai       100%        110,001      240,170           -           -            -
    The Dream Town, Foshan              Chanchen     100%        337,544      776,350     145,800      59,723      465,383
    g
    Jinyu Huating, Foshan               Nanhai       55%           75,916     184,607           -      35,387            -
    Nanyue Project, Foshan              Chanchen     51%           89,000     373,820     112,000           -      373,820
    g
    Zhubin Garden, Zhuhai               Xiangzho     100%        109,917      143,792            -     65,429             -
    u
    Jinyugangwan, Zhuhai                Xiangzho     50%           78,000     192,203      39,993            -     192,203
    u
    Jinyuehuating, Zhuhai               Tanzhou      100%         32,103      127,789           -           -            -
    A Glamorous City, Zhuhai            Doumen       100%        137,061      274,122     160,588           -      274,122
    City Garden, Zhuhai                 Jinwan        51%         63,233      185,432      81,505           -       81,505
    City Views, Zhongshan               Zhongsha     100%        338,516      523,177           -      17,930            -
    n South
    Spring Dew Mansion, Zhongshan       Zhongsha     100%          76,387     175,133            -     64,989             -
    n East
    Golden Home, Zhongshan              Dongfeng     100%        236,937      829,280            -     64,505      660,080
    Town
    Crystal Town, Zhongshan             Torch        65%         219,484      447,589      55,000            -     447,589
    Developm
    ent Zone
    Heart of Lake, Xiamen               Huli         100%         95,098      199,710           -      47,044      135,355
    Joying Golden City, Xiamen          Xiang’an    100%         54,441      109,000           -      42,152            -
    King Metropolis, Xiamen             Jimei        100%        102,427      443,000     143,704     112,327      204,908
    Haicang Dream Town, Xiamen          Haicang      40%         189,752      517,690     167,755           -      517,690
    King Metropolis, Changsha           Yuhua        60%         238,066      585,091      79,410     122,199       79,410
    The Paradiso, Changsha              Furong       100%        120,208      363,369      43,613           -      249,127
    City Garden, Changsha               Yuelu        80%          39,339      157,214           -      62,981            -
    The Dream Town, Changsha            Kaifu         70%        204,010      560,543      49,136           -       49,136
    Zitai, Changsha                     Tianxin      70%          99,770      168,422      55,836           -      168,422
    Golden Paradise, Changsha           Yuelu        78%          43,737      128,026     116,869           -      128,026
    Junjie Project, Changsha            Yuelu         58%         41,712      179,346     123,123           -      179,346
    Gaozheng Project, Changsha          Yuhua        60%          40,360      169,797           -           -      169,797
    Jinyu Rongjun (域榕郡), Fuzhou      Jinan        100%        166,736      385,988      22,226      66,061       63,249
    King Metropolis, Fuzhou             Cangshan     100%         16,168       37,599           -       3,200            -
    Yongtai Dream Town, Fuzhou          Yongtai       51%        392,000      556,032     136,672           -      556,032
    Vanke Plaza, Fuzhou                 Taijiang     100%         93,359      432,407     130,742           -      157,007
    Jinyu Garden, Fuzhou                Taijiang     60%          25,397      127,129     127,129           -      127,129
    The Dream Town, Putian              Lichen        80%        148,014      329,906     103,856           -      183,814
    Sanya Forest Holiday Park           Sanya         65%        942,745      470,814     133,694           -      355,437
    Gaozhiyuan, Sanya                   Sanya         65%        387,807      349,026           0           -      337,005
    Vanke Lakeside Holiday Park         Sanya         80%        260,293      301,650     150,497      54,874      301,650
    Subtotal                                             15,237,322    28,983,214   5,634,402   2,075,063   15,407,676
    Shanghai Region
    Chonggu Project, Shanghai           Qingpu        49%        116,524      145,266            -     91,619            -
    Crystal Garden, Shanghai            Qingpu       100%         77,804       79,523            -          -            -
    Ledu Road Project, Songjiang,       Songjiang     33%         67,932      108,137            -     53,009       21,504
    Shanghai
    Golden Paradise, Jiaxing            Xinzhou     100%         166,273      282,194            -           -     149,747
    New
    District
    Guangfulin Project, Shanghai        Songjiang     45%        130,970      104,778            -     27,082       77,998
    Qinglin Jing, Shanghai              Pudong       100%         99,209      148,814            -    107,345            -
    New
    District
    Wujiefang project, Shanghai         Pudong       100%        121,463      129,242            -           -            -
    New
    District
    Land lot of Beiyi New City,         Gangzha      55%           99,910     218,650            -           -     101,151
    Nantong
    Tongshan Street Project, Shanghai   Pudong       75%           58,550     182,230            -           -     129,892
    Page 42
    New
    District
    Firenze, Shanghai                   Minhang       49%        296,295     285,793          -    23,147    112,611
    Bingjiang Project, Shanghai         Pudong       100%         38,753     103,132          -         -    103,132
    New
    District
    Blue Mountain Town, Shanghai        Pudong       100%        433,180     209,171          -         -             -
    New
    District
    Golden City, Shanghai               Pudong       60%         405,627     809,929          -         -    513,188
    New
    District
    Castle Tudor, Shanghai              Baoshan      100%        231,753     241,169          -    66,307          -
    Juyuan project, Shanghai            Jiading       50%         90,013     180,026     29,323         -    135,402
    Floral City, Shanghai               Minhang      100%        140,678     207,773          -         -          -
    187 Wuzhong Road, Shanghai          Minhang      100%         61,724     145,065          -         -          -
    No. 53, Qibao project, Shanghai     Minhang      100%         49,294     126,869          -         -    126,869
    New City Garden, Shanghai           Minhang       51%        287,741     334,669          -    10,447    133,682
    North of Land Lot No. 35, Qibao,    Minhang       51%         39,366      69,913          -         -     69,913
    Shanghai
    Southern portion of Land Lot No.    Minhang      50%          32,170     110,462          -         -    110,462
    03, Hongqiao ,Shanghai
    Nimble Bay, Suzhou                  Industrial   70%         384,042     821,664     45,000    88,450    119,931
    District
    Benan Project, Suzhou               Industrial   51%         155,673     124,538          -         -             -
    District
    Foyer Dore, Suzhou                  Canglang     100%        134,771     242,588          -         -             -
    Changfeng Villa, Suzhou             Canglang      49%         48,713      48,693          -         -             -
    Vanke International Plaza, Suzhou   Industrial    51%         47,177     117,936          -         -             -
    District
    Vanke New Metropolis, Suzhou        Suzhou       55%          89,098      83,220     39,374    24,534    55,076
    New
    District
    Golden Milestone project, Suzhou    Jinchang     49%          99,093     247,732     41,291         -    160,593
    Quemeibin Project, Mudu Town,       Wuzhong      55%         144,535     361,338    110,000         -    361,338
    Suzhou                              District
    Kunshan Golf Project                Bacheng      100%        433,916     328,678          -         -    316,926
    Town
    Glamorous City, Wuxi                Binhu         60%        960,000    1,346,963    65,601   142,958    304,328
    Golden Paradise,                    New          100%        224,376      620,713   129,427    56,757    342,314
    Wuxi                                District
    The Paradiso, Wuxi                  Binhu        100%         154,468     431,592    29,040    55,356     271,435
    Xincheng Road, Wuxi                 Binhu        100%         154,119     385,299    54,539         -     262,971
    Liangzhu New Town, Hangzhou         Yuhang       100%       3,095,310   2,183,173   137,290   171,761   1,224,378
    West Spring Butterfly Garden,       Xihu          51%         155,838     354,038         -    88,317           -
    Hangzhou
    Golden Home, Hangzhou               Fuyang        55%         55,576     110,834          -         -          -
    Hangzhou, Gongwang(杭州公          Fuyang       100%        517,900     208,981          -         -    121,026
    望)
    Caozhuang, Hangzhou                 Jianggan     100%         37,178      86,938     52,644    34,294     52,644
    Jinse Caozhuang, Hangzhou(杭州     Jianggan      50%         68,564     150,841          -         -    150,841
    色草庄)
    Fuyang Golf Land Lot A,             Fuyang       20%          69,941     104,912          -         -    104,912
    Hangzhou
    Fuyang Golf Land Lot B, Hangzhou    Fuyang       20%          69,989      83,987          -         -     83,987
    Fuyang Golf Land Lot C, Hangzhou    Fuyang       20%          68,244      68,244          -         -     68,244
    Fuyang Golf Land Lot D,             Fuyang       20%          59,933      59,933          -         -     59,933
    Hangzhou
    Anpin Street, Nanjing               Baixia       100%         27,325      20,340          -         -     17,340
    The Paradiso, Nanjing               Jiangning    100%        272,298     544,612     49,296    16,373    217,957
    Golden Milestone (色程),            Yuehua       100%         42,318      82,341          -         -          -
    Nanjing
    Golden Domain, Nanjing(南京色       Qixia        100%         91,751     201,388     30,883         -   109,267
    领域)
    Yanshan Avenue Land Lot, Nanjing    Pukou        100%         62,300     100,000     80,000         -    100,000
    District
    Glamorous City, Zhenjiang           Tanshan      100%        795,100     942,820     85,023   104,133    426,006
    Road
    Blue Mountain, Zhenjiang            Runzhou       60%        285,683     416,285     20,028    30,952    333,981
    Golden Town, Ningbo                 Yinzhou      100%        190,369     313,602          -         -          -
    Page 43
    Yunluwan (云鹭湾)                  Jiangbei     15%           314,200      393,740      63,385       75,367        280,077
    , Ningbo
    Golden City, Ningbo                Yinzhou      100%           95,242      171,435           -       77,527              -
    Dream Town, Ningbo                 Zhenhai       49%          226,777      488,148     138,557            -        350,770
    Golden Mingjun, Hefei              Shushan      50%           107,326      401,670           -      105,585              -
    King Metropolis, Hefei             Shushan      50%           115,628      412,101           -       97,248        208,991
    Dream Town, Hefei                  Binhu        55%           107,220      376,857     189,104            -        373,662
    Qingshan Lake,                     Qingshan     50%            97,061      133,693           -       47,736              -
    Nanchang                           Lake
    Dew Garden ,Nanchang               Qingyunp     50%            97,109      144,011            -        6,521                -
    u
    The Paradiso, Nanchang             Xihu          50%           21,818       75,338           -             -             -
    Tianxiang Garden, Nanchang         Gaoxin        33%          299,845      417,362      60,000             -       348,880
    Longwan Project, Wenzhou           Longwan       60%          125,219      179,768      89,344             -        89,344
    Dream Town, Wuhu                   Dongxin      100%          274,404      493,926     198,940         4,786       342,597
    District
    Dream Town, Yangzhou               Hanjiang     65%           297,139      313,970      99,290                -    241,103
    District
    Total                                                       14,219,815   19,419,047   1,837,379   1,607,611       9,286,403
    Beijing Region
    Ruyuan, Beijing                    Haidian      49%                                                                 248,83
    138,644      279,937      48,429            -              7
    Park No. 5, Beijing                Chaoyang      60%           37,917       97,044           -       17,345              -
    Beijing Hills                      Chaoyang     100%           55,885      147,249           -       62,690         19,059
    The Metropolis, Beijing            Chaoyang     50%             5,329       42,556           -            -              -
    Changyang Project, Beijing         Fangshan      50%          437,179      853,165      45,242      202,487        430,505
    Changyang No, 3 Project, Beijing   Fangshan      50%           78,325      157,992      30,000            -        136,627
    Xingfuhui, Beijing                 Fangshan      68%           71,912      137,808       9,000       28,837         79,171
    New Milestone, Beijing             Fangshan         50         77,834      146,002      11,333       28,102         79,119
    Jinyu Vanke City, Beijing          Changpin     49%           178,908      543,461            -     138,888         69,027
    g
    King Metropolis, Beijing           Changpin     50%          206,007       577,188      88,182      152,575       367,978
    g
    Holiday Town, Beijing              Fengtai      50%           224,289      413,304            -        1,337                -
    Hongshi Jiayuan (红狮家园),        Fengtai      100%           59,800      184,502            -        8,414                -
    Beijing
    King Metropolis, Tangshan          Lubei         60%            78,977      197,442     66,219            -         66,219
    Stratford, Tangshan                Lunan        100%           153,527       96,661          -       73,082              -
    Qinhuangdao Holiday Town           Haigang       48%           270,549      642,357     72,859            -        400,559
    Phase II Guogongzhuang, Beijing    Fengtai      100%            14,449       36,123     36,123            -         36,123
    Phase V Guogongzhuang, Beijing     Fengtai       50%           233,209      629,170          -            -        629,170
    Golden Paradise, Beijing           Fangshan      50%            67,682      156,536     84,999            -        156,536
    Castle Tudor, Beijing              Daxing        50%            67,650      172,825     50,000            -        172,825
    Waterfront, Tianjin                Dongli       100%         2,708,886    1,763,059    131,463      121,288        895,496
    A Glamorous City, Tianjin          Dongli       100%           176,773      258,579      4,945       68,968          4,945
    New Milestone, Tianjin             Dongli        51%           136,524      204,786          -      105,427              -
    Holiday Dew Garden, Tianjin        Xiqing       100%           229,300      343,101     14,787            -         14,787
    Jin’ao International, Tianjin     Xiqing       100%            58,577      162,566          -       69,486              -
    Binhai Modern, Tianjin             Developm     100%             6,538       40,312          -            -              -
    ent
    District
    Park Residence, Tianjin            Developm     100%           32,270       48,731      22,493        25,421        22,493
    ent
    District
    Harbor (海港城), Tianjin           Binhai       51%           149,483      373,691      27,747        97,415       147,416
    New
    District
    Jinlu (锦庐), Tianjin              Binhai       95%            90,604      126,600            -       45,046        66,018
    New
    District
    East Coast, Tianjin                Binhai       51%           255,000      382,500      81,502                -    382,500
    New
    District
    Jinse Yazhu (色雅筑), Tianjin      Dongli       49%            90,792      171,281            -     126,496              -
    Shilinyuan, Tianjin                Jinnan       40%            63,582      114,474        9,901           -          9,901
    Page 44
    New Elm Mansion, Shenyang         Hunnan       100%        182,139    289,647           -         -           -
    New
    District
    Dream Town, Shenyang              Heping        49%        361,320    874,752    104,740    115,763    104,913
    Rancho Santa Fe, Shenyang         Dongling     100%        387,700    132,784          -          -          -
    A Glamorous City, Shenyang        Yuhong       100%        156,817    297,026          -     44,559          -
    The Paradiso, Shenyang            Hunnan       100%        226,356    615,688     35,717     50,714    201,203
    New
    District
    Jiyu International(域国际),       Tiexi        100%         27,249    108,581           -     1,442           -
    Shenyang
    Park Residence, Shenyang          Shenhe       55%          83,227    291,295          -     98,543    174,512
    Whistler, Shenyang                Dongling     70%         315,362    378,434          -          -    334,719
    Shenyang Hills                    Dadong       60%          74,527    222,520          -    127,908      1,604
    Shenyang Long Mansion (阳         Tiexi        70%          66,547    180,363     27,000          -     80,401
    园)
    Shenyang Dew Garden               Tiexi        100%         40,971    102,013          -          -    102,013
    Lakeside Grand View, Shenyang     Yuhong        49%        190,156    360,715      8,000     13,585    220,700
    2A, Lakeside Grand View,          Yuhong        51%        135,464    286,165          -          -    286,165
    Shenyang
    Mid Town, Shenyang                Shenhe        79%         81,378    431,232     61,128     54,732    348,609
    Rotterdam , Shenyang              Changbai     100%        120,333    360,999          -          -    257,986
    Heping
    Shenyang Tomorrow City            Hunnan       65%         199,319    597,957           -         -    382,139
    New
    District
    The Paradiso, Fushun              Developm     100%        135,079    391,100           -    25,014    236,935
    ent
    District
    Whistler Project, Anshan          Tiedong      100%        303,700    414,816           -   118,357    153,656
    Golden Home, Anshan               Tiedong      100%         48,874     97,969           -         -          -
    Dream Town, Anshan                Gaoxin       100%        167,664    393,838           -    51,992     77,025
    Whistler East Project, Anshan     Tiedong      100%        118,500    296,250           -         -    296,250
    Phase II of South Lake Project,   Developm     100%         91,500    348,000           -         -    348,000
    Fushan                            ent
    District
    Yongle Park, Anshan               Tiexi         51%        225,715    677,000     70,633          -     677,000
    Ravine Village, Dalian            Ganjingzi     55%        363,716    380,922          -          -           -
    A Glamorous City, Dalian          Ganjingzi     55%        216,000     448,512          -   173,186     -
    Spring Dew Mansion, Dalian        Ganjingzi    100%        118,879     229,822   99,746       -         229,822
    Habor, Dalian                     Puwan         55%        757,350   1,253,300    75,517          -   1,059,267
    New
    District
    Xishan Project, Dalian            Ganjingzi    55%          90,404    113,308     20,412          -     113,30
    8
    Cherry Blossom Garden, Dalian     High-        55%         192,248    363,349    104,810          -    363,349
    Tech
    Industrial
    Zone
    Yangpu Garden, Changchun          Economic     100%         89,678    176,618           -         -           -
    Developm
    ent Zone
    Waterside Villa (潭溪别墅),       Jingyue      100%         75,000     49,019           -         -           -
    Changchun                         Developm
    ent Zone
    Blue Mountine, Changchun          Erdao        100%        251,356     501,678         -    113,456     191,386
    Whistler, Changchun               Jingyue       50%        399,715     484,714    80,813     83,629     351,756
    Park Residence, Changchun         Chaoyang     100%        276,769     503,349    24,095     68,286     282,610
    Dream Town, Jinlin                Gaoxin        65%        728,139   2,155,910   356,323    148,394   1,810,647
    Dream Town, Changchun             Jingyue       51%        350,965   1,056,480    81,640          -     919,368
    Developm
    ent Zone
    Wonderland, Qingdao               Jimo         55%         153,284    240,507           -    92,055           -
    A Glamorous City, Qingdao         Chengyan     80%         200,289    341,404           -    52,572           -
    g
    City Garden, Qingdao              Chengyan     80%         130,873    228,823           -   123,322           -
    g
    Aureate City, Qingdao             Sifang       100%         61,873    174,102          -     28,336          -
    Blue Mountain, Qingdao            Shibei       100%         68,153    202,485     56,298     77,098     60,967
    District
    Page 45
    Dream Town, Qingdao                  Sifang       55%        154,607      399,565     127,213      114,273       213,621
    Qingdao Ecological Town              Licang      100%        141,273      260,784      80,902       16,834        80,902
    Qingdao Town                         Jiaonan      34%        933,293      989,125      65,000            -       649,748
    Jinyu Internationl, Taiyuan          Wanbolin    100%         49,407      169,679           -            -             -
    Taiyuan Zitai                        Yingze       51%         95,687      331,236      34,956            -       195,012
    Spring Dew Mansion, Jinzhong         Yuci         51%        218,143      482,246      50,054            -       377,620
    Blue Mountain, Taiyuan               Wanbolin     51%        198,392      687,671      95,742            -       687,671
    Dituan Project, Yantai               Zhifu       100%        311,614      444,065     118,445       53,753       319,895
    Zhonglian Logistic Project, Yantai   Fushan       70%        190,281      361,220     112,274       97,898       204,048
    Subtatol                                                   17,013,686   30,680,039   2,726,682     3,319,005   16,830,138
    Chengdu Region
    A Glamorous City, Chengdu            Chenghua     60%        308,501      761,258     68,120             -        68,120
    Jinyu Xiling (域西岭), Chengdu       Jinniu       60%         79,331      361,100           -       50,083             -
    Golden Domain , Chengdu              Qingyang    100%         49,628      244,459           -       71,910             -
    Jinrun Huafu, Chengdu                Jingjiang   100%         52,895      267,928           -       87,132             -
    Golden Hairong, Chengdu              Wuhou        49%         54,970      234,125     100,648       90,648       100,648
    Haiyue Huicheng, Chengdu             Shuangliu    90%        104,307      521,698     252,913       62,400       252,913
    Phase 1, Wulong                      Xindu       100%        345,168      356,503     153,385      120,694       153,385
    Mountain,Chengdu
    Vanke Diamond Plaza, Chengdu         Chenghua    100%         15,404       92,422              -         -              -
    A Glamorous City, Wuhan              East Lake   100%        225,258      405,457              -         -              -
    High-
    Tech
    Developm
    entZone
    Element Integration(万科圆方),       Jianghan    55%          12,022       42,869              -         -              -
    Wuhan
    Golf City Garden, Wuhan              Dongxihu     49%        237,660      393,858           -      115,258             -
    New Oriental Mansion, Wuhan          Wuchang      55%         59,790      191,300      39,634       98,763        39,634
    Dream Town, Wuhan                    Jianghan    100%         65,901      299,337           -       36,996             -
    Vanke Stratford, Wuhan               East Lake   100%        230,970      349,607      15,696      100,025        15,696
    High-
    Tech
    Developm
    entZone
    The Paradiso, Wuhan                  Economic    100%        213,440      533,600              -    69,782       287,458
    and
    Technolog
    ical
    Developm
    ent Zone
    Huanzi Lake, Wuhan                   Jianghan    100%        102,500       542,923    177,352            -        542,923
    Tangjiadun, Wuhan                    Jianghan     50%        267,200     1,324,300    175,461            -      1,324,300
    Hanyang International, Wuhan         Hanyang     100%        167,240       570,676    191,330            -        468,897
    Changzheng Village Wuhan             Hongshan    100%        282,235       871,721    120,000            -        871,721
    Golden City, Wuhan                   Hongshan    100%        274,100      896,484     426,072       98,780        426,072
    Huashan Ecological Town Project,     Hongshan     50%        199,705      299,557      60,000            -        299,557
    Wuhan
    Chongqing Youcheng Ecological        Yubei       51%         229,581      344,372      25,163       54,973        32,087
    Garden
    Wonder Town, Chongqing               Northern    100%         41,448      145,067              -    83,650              -
    New
    District
    Palace of pleasure, Chongqing        Northern    100%        138,071      376,737      73,199            -        97,563
    New
    District
    Vanke Jincheng, Chongqing            Yuzhong     100%        105,463      533,486           -      224,761             -
    Dream Town, Chongqing                Northern     55%        278,165      647,378     174,800            -       432,159
    New
    District
    Vega Villa, Chongqing                Jiangbei     45%        435,499      649,158     187,029            -       607,783
    Xinde City, Xi’an                   Yanta       100%         20,156      106,616           -            -             -
    Jinyu Qujiang (域曲江), Xi’an       Qujiang      55%        152,667      385,408      46,446       78,690        46,446
    New
    District
    Dream Town, Xi’an                   Chang’an    85%        176,056      614,377     124,272       95,344       243,219
    Landlot No. 3, Dream Town, Xi’an    Chang’an   100%        113,231      352,803      87,140            -       264,782
    Page 46
    King Metropolis, Xi’an               Weiyang         51%             106,667       373,634     135,353            -        373,634
    Daminggong, Xi’an.                   Weiyang         70%              69,052       221,603      67,266            -        221,603
    King Metropolis, Guiyang              Xiaohe          51%             351,800       581,217      64,770      193,771        327,147
    Nimble Bay, Guiyang (贵阳珑           Yunyan         100%              90,456       201,012      94,272        6,804        194,208
    湾)
    Power Plant, Guiyang                  Xiaohe          51%             181,235       761,187     102,224            -        761,187
    Jinyu Tixiang, Kunming                Panlong        100%             104,724       267,084           -      156,404              -
    Dew Garden, Baisha, Kunming           Panlong        100%             192,104       243,214     106,015            -        189,272
    King Metropolis, Urumqi               New            100%              53,267       146,009           -            -         29.503
    District
    Blue Mountain,, Urumqi                Urumqi         100%              32,760        14,900       8,320             -        14,900
    County
    Subtotal                                6,220,627     16,526,444 3,076,880      1,896,868       8,686,817
    Total                                 52,691,450     95,608,744 13,275,343     8,898,547      50,211,304
    Special Remarks on Risk Factors:
    The schedule for the commencement and completion of the above-mentioned projects may be adjusted due to
    the following factors:
    a) There may be changes in the macro economy and the property market or changes in the sale of an individual
    project;
    b) Approval requirements may be tightened by new rules and regulations such that the progress of application
    for permits will be slowed down, thereby affecting the schedule of project development;
    c) Progress in demolition and resettlement of related projects may affect the development schedule;
    d) Significant changes in weather conditions may affect the progress of project development, which in turn
    affect the schedule for completion;
    e) Impact of other unpredictable significant events on the construction progress of projects.
    f) The actual completed area between 2009 and 2011 accounted for 86.7%, 87.7% and 90.4% of the schedule for
    completion of cooresponding year, investors shall pay attention on it.
    7. Fair value measurement and holding of financial assets and financial liabilities in foreign currency
    Fair value measurement:
    Unit: RMB’000
    Provision
    Gain/loss
    for                        Balance at
    Balance at     from changes     Accumulated                      Disposal
    diminution                 the end of
    the            in fair value    changes of fair                  during the
    Item                                                                                  in    value                the    year
    beginning of   during    the    value recognised                 year under
    during the                 under
    the year       year under       in equity                        review
    year under                 review
    review
    review
    Financial assets
    Including:
    1. Financial assets measured at
    fair value, and changes of which              -                -                  -             -                            -
    are recorded in profit and loss
    during the period2
    Including: Derivative financial
    -                -                  -             -                            -
    assets
    2. Available-for-sale financial
    404,764                -             36,498             -                    441,262
    assets
    Sub-total of financial assets           404,764                -             36,498             -                    441,262
    Financial liabilities                    15,055           2,869                   -             -        (881)        17,042
    Investment properties                         -                -                  -             -            -               -
    Productive biological assets                  -                -                  -             -            -               -
    3
    Others                                        -                -                  -             -            -               -
    Total                                         -          (2,869)             36,498             -         881                -
    Financial assets and financial liabilities in foreign currency
    Unit: RMB’000
    Page 47
    Provision    Disposal
    Gain/loss
    for          during       Balance at
    Balance at    from changes      Accumulated
    diminution   the year     the end of
    the           in fair value     changes of fair
    Item                                                                                  in   value   under        the    year
    beginning     during    the     value recognised
    during the   review       under
    of the year   year    under     in equity
    year under                review
    review
    review
    Financial assets
    Including:
    1. Financial assets measured at
    fair value, and changes of which             -                 -                  -            -            -             -
    are recorded in profit and loss
    during the period
    Including: Derivative financial
    -                 -                  -            -            -             -
    assets
    2.     Loans     and    accounts
    -                 -                  -            -            -             -
    receivables
    3. Available-for-sale financial
    -                 -                  -            -            -             -
    assets
    4. Held-to-maturity investment               -                 -                  -            -            -             -
    Sub-total of financial assets                                  -                  -            -            -             -
    Financial liabilities                   15,055         2,869              -               -         (881)            17,042
    Most of the above-mentioned items measured at fair value are legal person shares that have been held by the
    Company for a long time. Their value was low and they are being gradually disposed of. With respect to certain
    items, the Company refers to the control procedures for major investment projects: the Company’s management
    reviewed and approved, within the scope of authority as conferred by the Board, the relevant items after they
    have been reviewed by the specialised departments with due diligence.
    VIII. Work Report of the Board of Directors
    (1) The Board held a total of five board meetings during 2011
    A. On 4 March 2011, the Thirteenth Meeting of the Fifteenth Board was held to consider and approve the
    following resolutions: the resolution regarding the appropriation and write-off of the provision for diminution
    in asset value for the year 2010; the audited financial report for the year 2010; the special remarks on the deposit
    and use of proceeds raised from previous fund-raising exercises during 2010; the internal control self-assessment
    report for the year 2010; the proposal on profit appropriation and dividend distribution for the year 2010; the
    resolution regarding the reappointment of certified public accountants for the year 2011; the resolution regarding
    the Company’s 2010 annual report and its summary; the corporate social responsibility report for the year 2010;
    the resolution regarding the election of directors of the Board; the resolution regarding the grant of authority to
    the Company to carry out corporate citizenship activities within specified budget; the resolution regarding
    cooperation with CRC; the resolution regarding the convention of the 2010 Annual General Meeting; and the
    resolution regarding appointment of executive vice president. The related announcement was published in China
    Securities Journal, Securities Times, Shanghai Securities News and irasia.com, Hong Kong, respectively, on 8
    March 2011.
    B. On 31 March 2011, the First Meeting of the Sixteenth Board was held to consider and approve the following
    resolutions: election of Wang Shi as the chairman and Qiao Shibo as deputy chairman respectively of the
    sixteenth session of the Board; election of Paul Chan Mo Po, Jiang Wei and Qi Daqing as members of the audit
    committee of the sixteenth session of the Board, and independent Director Paul Chan Mo Po as the convener of
    this committee; election of Zhang Liping, Jiang Wei and Xiao Li as members of the investment and decision-
    making committee of the sixteenth session of the Board, and independent director Zhang Liping as the convener
    of this committee; election of Qi Daqing, Zhang Liping and Sun Jianyi as members of the remuneration and
    nomination committee of the sixteenth session of the Board, and independent director Qi Daqing as the convener
    of this committee; re-appointment of Yu Liang as the president of the Company. The related announcement was
    published in China Securities Journal, Securities Times, Shanghai Securities News and irasia.com, Hong Kong,
    respectively, on 1 April 2011.
    Page 48
    C. On 18 April 2011, the Second Meeting of the Sixteenth Board was held to consider and approve the
    Company’s first quarterly report and financial statements for the year 2011, and the resolution regarding matters
    in relation to the granting of stock options under the A-share Stock Option Incentive Scheme. The related
    announcement was published in China Securities Journal, Securities Times, Shanghai Securities News and
    irasia.com, Hong Kong, respectively, on 20 April 2011.
    D. On 5 August 2011, the Third Meeting of the Sixteenth Board was held to consider and approve the following
    resolutions: the interim report, financial statements and the summary of the interim report for the year 2011; and
    the resolution regarding the proposal on no profit appropriation or transfer of surplus reserve to share capital for
    the 2011 interim period. The related announcement was published in China Securities Journal, Securities Times,
    Shanghai Securities News, Securities Daily and irasia.com, Hong Kong, respectively, on 9 August 2011.
    E. On 21 October 2011, the Fourth Meeting of the Sixteenth Board was held to consider and approve the third
    quarterly report and financial statements for the year 2011. The related announcement was published in China
    Securities Journal, Securities Times, Shanghai Securities News, Securities Daily and irasia.com, Hong Kong,
    respectively, on 25 October 2011.
    (2) In 2011, the Board conducted 8 votings by correspondence
    A. On 28 January 2011, the resolutions regarding accepting Xu Hongge’s resignation as executive vice president
    and nomination of Du Jing as executive vice president were submitted for the Board’s approval through voting
    by correspondence.
    B. On 18 March 2011, the resolution regarding the amendments to the A-Share Stock Option Incentive Scheme
    and the resolution regarding the convention of the first extraordinary general meeting in 2011 were submitted for
    the Board’s approval through voting by correspondence.
    C. On 29 April 2011, the resolution regarding participation in Tianjin Xinhua Road Project was submitted for
    the Board’s approval through voting by correspondence.
    D. On 13 May 2011, the resolution regarding the adjustment of exercise price of the A-Share stock options was
    submitted for the Board’s approval through voting by correspondence.
    E. On 16 June 2011, the resolution regarding a counter guarantee provided by Wanhui Company to Nanjing
    Branch of Minsheng Bank for a loan for Nanjing Shangfang Affordable Housing Project, the resolution
    regarding a guarantee provided for an equity transfer of Bujibaotong Company and the resolution regarding a
    guarantee provided by Beijing Vanke for a loan for Tangshan Fenghuang New City Project were submitted for
    the Board’s approval through voting by correspondence.
    F. On 1 September 2011, the resolution regarding a guarantee provided by Tianjin Vanke for a loan for
    Changchun Blue Mountain Project was submitted for the Board’s approval through voting by correspondence.
    G. On 1 November 2011, the resolution regarding a guarantee provided by Shanghai Vanke for Shanghai
    Langda’s assignment of debt of Shanghai Jingyuan was submitted for the Board’s approval through voting by
    correspondence.
    H. On 12 December 2011, the resolution regarding application for a loan of RMB1 billion from China
    Resources SZITIC Trust Co., Ltd. was submitted for the Board’s approval through voting by correspondence.
    The progress and important facts of the relevant issues were disclosed pursuant to requirements in China
    Securities Journal, Securities Times, Shanghai Securities News, Securities Daily and irasia.com, Hong Kong,
    respectively, on 29 January 2011, 23 March 2011, 21 May 2011, 29 July 2011, 29 September 2011 and 16
    December 2011.
    (3) The Board’s implementation of the resolutions approved at shareholders’ meetings
    A. The implementation of the proposal on dividend distribution for the year 2010
    Following the resolutions passed at the 2010 (23rd) Annual General Meeting, the Board had proceeded with the
    implementation of the proposal on dividend distribution for 2010. The dividend distribution proposal for 2010 is
    Page 49
    as follows: Based on the total share capital of the Company at the close of market on the record date, for every
    10 existing shares held, a cash dividend of RMB1.0 (including tax; after deducting tax, a cash dividend of
    RMB0.9 would be paid for every 10 existing shares beneficially held by individual shareholders, investment
    funds, and non-resident enterprises holding A shares; a cash dividend of RMB0.9 would be paid for every 10
    existing shares beneficially held by individual shareholders and non-resident enterprises holding B shares; other
    holders of B shares are not subject to taxation for the time being) would be paid. The record date and ex-
    dividend date for A share were 26 May 2011 and 27 May 2011 respectively. The last trading date, ex-dividend
    date and record date for B share were 26 May 2011, 27 May 2011 and 31 May 2011 respectively. The exchange
    rate for B share’s cash dividend was HK$1 = RMB0.8424, being the median price of the exchange rate of Hong
    Kong dollars for Renminbi published by the People’s Bank of China on the first working day (1 April 2011)
    after the approval of the dividend distribution proposal at the Company’s annual general meeting.
    B. Implementation of the A-Share Stock Option Incentive Scheme
    The first extraordinary general meeting of the Company in 2011 was held and approved the A-Share Stock
    Option Incentive Scheme of China Vanke Co., Ltd. (Revised Draft). Following the resolutions passed at the
    Company’s first extraordinary general meeting in 2011, on 18 April 2011, the Board considerd and approved the
    resolution regarding matters in relation to the granting of stock options under the A-share Stock Option
    Incentive Scheme, confirming that the conditions for granting stock options under the A-share Stock Option
    Incentive Scheme had been fulfilled and determined 25 April 2011 as the date of grant of stock options. On 9
    May 2011, the registration of the grant of stock options under the A-Share Stock Option Incentive Scheme was
    completed. The Company granted an aggregate of 108,435,000 stock options to 810 beneficiaries. The
    abbreviation of the stock options granted under the Scheme is VankeJLC1, and the stock option code is 037015.
    On 27 May 2011 the Company implemented the proposal on dividend distribution for the year 2010. A cash
    dividend of RMB1.0 (including tax) would be paid to all the shareholders on the basis of every 10 existing
    shares held. Pursuant to the resolution regarding granting the Board the authority to handle matters relating to
    the Company’s Stock Option Incentive Scheme approved by the first extraordinary general meeting in 2011, the
    Board resolved to make corresponding adjustment to the exercise price of the A-share stock options. The
    exercise price after adjustment is RMB8.79.
    C. Execution of the Cooperation with CRH
    The Company’s first extraordinary general meeting in 2011 authorised the Board to determine, within an amount
    of RMB4.42 billion (i.e. not exceeding 10% of the Company’s audited net assets for the year 2010), cooperation
    with China Resources (Holdings) Co., Ltd and its connected companies (collectively “CRH”), including on
    entering into a loan agreement with Zhuhai City Commercial Bank Co., Ltd., using the funds under China
    Resources SZITIC Trust Co., Ltd. and Harvest Capital Partners Limited, and joint investment with China
    Resources SZITIC Trust Co., Ltd. and Harvest Capital Partners Limited. The authorisation is valid for a period
    of one year commencing from the date of passing of the relevant resolution in the first extraordinary general
    meeting.
    During the year under review, the Board agreed, pursuant to the relevant authority granted, that the Company
    applied for a trust loan of RMB1 billion from China Resources SZITIC Trust Co., Ltd. for the development of
    the Shanghai Wujiefang Project. The term of the loan is two years, with an annual fixed interest rate of 11.2 per
    cent. The execution of the said loan will provide support to the development of the Company’s relevant project
    and will help expedite the operating efficiency of the project. The cooperation and related decision-making
    procedures comply with the relevant requirements and are in the interests of the listed company and shareholders
    as a whole.
    (4)      Specialised Committees’ Performance of Duties
    The audit committee, the remuneration and nomination committee, as well as the investment and decision-
    making committee, had dutifully performed their duties, in accordance with the “Code of corporate governance
    for listed companies”, “Articles of Association”, and “Rules Governing the Procedures of Board Meetings” and
    the responsibilities and obligations as stipulated in the implementation details of the different specialised
    committees.
    A. Audit committee’s performance of duties
    Page 50
    During the year under review, the audit committee held four audit committee meetings and communication
    meetings and conducted four votings by correspondence. The audit committee considered the following issues:
    the arrangement of audit duties, the periodical financial reports, proposal on profit appropriation, the
    appointment of audit firm, execution of standardization of internal control, guarantee issues, etc,. The audit
    committee also communicated with the auditors several times.
    The audit committee actively performed its audit duties in 2011. Since the end of the year under review, the
    audit committee held two more work-related meetings and communication meetings, supervised the auditors to
    strictly follow the audit schedule, reviewed the financial statements and provided feedback. It also resolved on
    the appointment of auditors, internal control self-assessment report, and dividend distribution.
    The audit committee concluded the audit performed by KPMG Huazhen Certified Public Accountants in 2011 as
    follows:
    1. Preparation before auditing
    i. Determination of audit schedule
    It took six months from internal control autiting, which commenced at the beginning of September 2011, up till
    the completion of auditing for the 2011 audit. Details of the work schedule are as follows:
    1) September to October 2011: Internal control audit. KPMG selected certain key subsidiaries and newly
    established companies according to the Group’s internal control guidelines to conduct internal control audit.;
    2) November to December 2011: Pre-audit. KPMG selected key cities to perform pre-audit according to the
    level of importance and newly added projects in 2011;
    3) 9 January 2012: KPMG started to perform their annual audit in China Vanke’s office. On 6 March, the first
    draft of the 2011 Auditor’s Report was presented to the audit committee for review; and the Auditor’s Report
    was presented on 9 March.
    ii. Review of not-yet audited financial statements
    Before the auditors came in, the audit committee had reviewed, with due diligence, the financial statements
    prepared by the Company and provided their opinions in writing.
    2. Audit process
    Starting from 9 January 2012, KPMG sent five different teams (for Guangshen Region, Shanghai Region,
    Beijing Region, Chengdu Region and the Group as a whole) to perform audit for the Company’s headquarters
    and its subsidiaries.
    During the auditing process, the audit committee supervised in writing and requested KPMG to arrange its audit
    work according to the audit work schedule, in order to ensure that the audit completed on time.
    On 6 March 2012, KPMG submitted to the audit committee the 2011 Auditors’ Report and Internal Control
    Audit Report. On 9 March 2012, the Board meeting approved the reports and the audit performed by KPMG for
    the Company’s 2011 audit completed.
    3. Audit results
    KPMG has issued its unqualified opinion for the 2011 Auditors’ Report and Internal Control Audit Report.
    The audit committee is of the opinion that the audit performance of KPMG Huazhen Certified Public
    Accountants on the Company’s 2011 financial statements is satisfactory.
    The audit committee resolved to propose to the Board for approval the reappointment of KPMG Huazhen
    Certified Public Accountants to audit the Company’s 2012 financial statements according to the PRC and
    international accounting standards, and to prepare the internal control audit report according to the requirements
    of the regulatory bodies.
    B. Remuneration and nomination committee’s performance of duties
    During the year under review, the remuneration and nomination committee held four meetings. The committee
    discussed and reviewed the amendments to the A-share stock option incentive plan, the granting of stock
    options, amendments to the economic profit bonus proposal, the election of a new board of directors, changes in
    Page 51
    and remuneration of senior management staff. The committee had maintained regular contact with the
    management and held several debriefing sessions where the management reported their work.
    C. Investment and decision-making committee’s performance of duties
    During the year under review, the investment and decision-making committee paid close attention to the Board’s
    authorization of project development and financing, and maintained regular contact with the management,
    thereby having full understanding of the various business activities carried out within the scope of authority
    granted.
    9. Profit Appropriation and Dividend Distribution Proposal
    The Company’s profit appropriation and dividend distribution was based on the Company’s profit available for
    appropriation. Details on the profit available for appropriation of the Group and the Company in 2011 according
    to the PRC Accounting Standards for Business Enterprises are as follows:
    Unit: RMB
    The Group                      The Company
    Profit available for appropriation after
    21,995,638,556.48              4,520,604,785.31
    Taxation
    Include: Net profit for 2011                                 9,624,875,268.23              4,372,887,322.93
    Profit available for appropriation at the
    13,470,284,310.05              1,247,238,484.18
    beginning of the year
    Allocation of dividend for 2010                          (1,099,521,021.80)         (1,099,521,021.80)
    Note:The significant difference between the profit of the Company and the consolidated profit of the Group is attributable to the
    cost method used for recording investment in subsidiaries after the adoption of “Accounting Standards for Business Enterprises
    2006”. The appropriations made by the subsidiaries’ legal persons to statutory surplus reserve according to the Company Law were
    retained in the subsidiaries and the subsidiaries’ profit for the year has yet to be appropriated to the Company.
    According to the relevant rules and requirements of the Company’s Articles of Association, and considering
    shareholders’ interests and the Company’s development needs in the long run, the Board submitted to the
    shareholders meeting the following profit appropriation proposal for the year 2011:
    1. to appropriate 10 per cent of the net profit of the Company to statutory surplus reserve;
    2. to appropriate 60 per cent of the net profit of the Company to discretionary surplus reserve;
    3. to appropriate 30 per cent of the net profit of the Company and the unappropriated profit of last year for
    dividend distribution fund;
    The allocation of the profit available for appropriation for the year 2011 is as follows:
    Unit: RMB
    As a percentage        As a percentage of
    of the Company’s         the Group’s
    The Company
    net profit for the      consolidated net
    year                   profit for the year
    Net profit of 2011                                      4,372,887,322.93                  100%                    45.43%
    Transfer to statutory surplus reserve                437,288,732.29                   10%                     4.54%
    Transfer to discretionary surplus reserve          2,623,732,393.76                   60%                    27.26%
    Transfer to 2011 dividend distribution fund        1,311,866,196.88                   30%                    13.63%
    Profit available for appropriation at the beginning
    147,717,462.38                       -                        -
    of the year
    Distribution of cash dividend for 2011             1,429,377,328.34                32.69%                  14.85%
    Retained profit for appropriation for the
    30,206,330.92                      -                        -
    following financial year
    The Company’s distribution of cash dividends for the past three years:
    Unit: RMB
    The Group’s       As a percentage As a percentage of    The Group’s
    Cash dividend      The Company’s net
    Year                                                   consolidated net          of the        the Group’s    consolidated profit
    (before tax)            profit
    profit          Company’s net consolidated net       available for
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    profit        profit      appropriation for
    the year
    2010       1,099,521,021.80 3,083,108,153.24        7,283,127,039.15           35.66%        15.10% 15,321,861,067.94
    2009         769,664,715.26 2,874,475,278.28        5,329,737,727.00           26.78%        14.44% 10,964,255,202.76
    2008         549,760,510.90 1,582,019,762.35        4,033,170,027.89           34.75%        13.63% 7,370,792,808.42
    Accumulated cash dividends in the past 3 years as a percentage to the average
    43.59%
    the Group’s consolidated net profit in the past three yea
    The Company insisted on cash dividends distribution policy, maintianing an amount of cash dividends stably
    accounted for 15% of consolidated net profit of the Company every year.
    Dividend distribution proposal: A cash dividend of RMB1.3 (before tax) will be distributed for every 10
    existing shares held.
    Based on the total share capital of 10,995,210,218 shares as at 31 December 2011, the total amount of cash
    dividends for distribution for 2011 will be RMB1,429,377,328.34.
    10. Selected Media for Disclosure of Information
    The Company has chosen China Securities Journal, Securities Times, Shanghai Securities News Securities Daily
    and an English publication in Hong Kong as media for disclosure of information.
    IX. Report of Supervisory Committee
    In 2011, the Supervisory Committee continued to perform their duties with due diligence, safeguarded the
    interests of the Company, shareholders and staff, in accordance with the requirements of the Company Law, the
    Articles of Association, and the relevant regulations of the Company.
    1. Supervisory Committee Meetings and Resolutions of Such Meetings
    In 2011, a total of four meetings were held by the Supervisory Committee. The details of the meetings and
    resolutions are as follows:
    (1) The Fifth Meeting of the Seventh Supervisory Committee was held on 4 March 2011. The meeting
    considered and approved the resolution regarding the appropriation and write-off of the provision for diminution
    in asset value for the year 2010; the audited financial report for the year 2010; the special remarks on the deposit
    and use of the proceeds raised from previous fund-raising exercises during 2010; the internal control self-
    assessment report for the year 2010; the proposal on profit appropriation and dividend distribution for the year
    2010; the resolution regarding the reappointment of certified public accountants for the year 2011; the report of
    the Supervisory Committee for the year 2010; the 2010 annual report and its summary; the social responsibility
    report for the year 2010; the resolution regarding granting authority to the Company to undertake corporate
    citizenship related works within a certain amount of expenses and the resolution regarding the convention of the
    2010 Annual General Meeting.
    (2) The Sixth Meeting of the Seventh Supervisory Committee was held on 18 April 2011. The meeting
    considered and approved the Company’s 2011 first quarterly report and financial statements; the resolution
    regarding matters in relation to the granting of stock options under the A-share Stock Option Incentive Scheme,
    and the resolution regarding the implementation proposal of regulating internal control of the Company.
    (3) The Seventh Meeting of the Seventh Supervisory Committee was held on 5 August 2011. The meeting
    considered and approved the resolution regarding the Company’s 2011 interim report, its summary and financial
    statements; the resolution regarding the proposals of no dividend distribution and no transfer of capital surplus
    reserve to share capital for the 2011 interim period.
    (4) The Eighth Meeting of the Seventh Supervisory Committee was held on 21 October 2011. The meeting
    considered and approved the Company’s 2010 third quarterly report and its financial statements.
    2. Inspection Tours by the Supervisory Committee
    With the Company’s continued growth in 2011, management became increasingly complex. While levering the
    Company’s internal control system, the Supervisory Committee stepped up efforts to inspect the Company’s
    Page 53
    operations. During the year under review, the Supervisory Committee, through on-site inspection, meetings,
    seminars, inspected and supervised the management, financial situation and the risk control of core business of
    front-line companies, implementation of the Company’s development strategy, and protection of employees’
    interests.
    3. Independent Opinions of the Supervisory Committee on Certain Issues of the Company
    (1) Statutory compliance: During the year, members of the Supervisory Committee continued to supervise the
    Company’s operations through attending Board meetings, reviewing various reports, on-site inspection and
    meeting with staff. With reference to various regulations, the Supervisory Committee was of the opinion that the
    Company’s decision-making process was lawful, there was a wide range of internal control measures and there
    was further improvement in the corporate governance structure. The directors and senior management team of
    the Company diligently carried out their duties, and none of their acts had violated the law, regulations, the
    Company’s Articles of Association, nor had they prejudiced the Company’s and shareholders’ interests. The
    Supervisory Committee had reviewed the Company’s internal control self-assessment report for the year 2011
    and was of the view that the report reflected the actual situation of the Company’s corporate governance and
    internal control in an objective manner and agreed to announce the relevant report.
    (2) Financial monitoring: During the year under review, the Supervisory Committee actively performed its duty
    of monitoring the Company’s financial situation, including inspecting the Company’s guarantees and
    investments and providing audited opinions to each regular report. The Supervisory Committee was of the
    opinion that the Company’s financial report reflects a true and accurate view on the Company’s financial
    position and operating results. The auditor’s report issued on the Company’s annual financial report by KPMG
    Huazhen Certified Public Accountants is objective and non-biased.
    (3) Use of proceeds from fund raising exercises: Through reviewing financial statements, inspecting investment
    projects, etc, the Supervisory Committee continued to inspect the deposit and use of the remaining proceeds
    raised from the subsequent offer of A shares in 2007. The Supervisory Committee was of the opinion that the
    management and use of the proceeds had complied with regulations.
    (4) Stock incentive plan: In 2011, the Supervisory Committee oversaw the amendment and implementation of
    the Company’s A-share Stock Option Incentive Scheme. It was of the view that the preparation and approval
    procedures of the Stock Option Incentive Scheme, as well as the granting of the stock options had complied with
    regulations. The Supervisory Committee had verified the list of beneficiaries of the A-share Stock Option
    Incentive Scheme and was of the opinion that the qualifications of the beneficiaries were legal and effective.
    (5) Major asset acquisitions and disposals: During the year, the Company did not have any major asset
    acquisitions and disposals.
    (6) Connected transactions: The Company’s first extraordinary general meeting in 2011 authorised the Board to
    determine, within an amount of RMB4.42 billion, entering into a loan agreement with Zhuhai City Commercial
    Bank Co., Ltd., using the funds under China Resources SZITIC Trust Co., Ltd. and Harvest Capital Partners
    Limited, and joint investment with China Resources SZITIC Trust Co., Ltd. and Harvest Capital Partners
    Limited. In December 2011, the Board agreed, pursuant to the relevant authority granted, that the Company
    applied for a trust loan of RMB1 billion, with a fixed annual interest rate, from China Resources SZITIC Trust
    Co., Ltd. to satisfy the development needs of the Company’s Shanghai Wujiefang Project. The term of the loan
    is two years, with an annual interest rate of 11.2 per cent. The Supervisory Committee had reviewed the said
    transaction and was of the opinion that the cost of the loan had been determined with reference to the prevailing
    market price level and the characteristics of the project, that the terms of the transaction were fair, that the
    related decision-making procedures were in compliance with the relevant requirements of the Company Law,
    Securities Law, Rules Governing Listing of Stocks on Shenzhen Stock Exchange and the Articles of Association
    of the Company, and that the transaction did not prejudice the interests of other shareholders. Apart from the
    aforementioned, the Company did not have any other connected transaction.
    (7) As the State tightened its control of the property industry in 2011, companies were faced with a more
    challenging operating environment. The Company adhered to its business strategies, and actively responded by
    adopting effective measures. As such, the Company achieved satisfactory operating results.
    Page 54
    In the face of continued industry adjustments in 2012, the Company will encounter greater challenges. All the
    members of the Supervisory Committee will continue to carry out their duties diligently, perform supervision
    with due diligence, contribute to the Company’s development and effectively safeguard shareholders’ interest.
    X. Significant Events
    1.      Material Litigation and Arbitration
    During the year under review, the Company did not involve in any material litigation or arbitration.
    2. Major Acquisition and Disposal of Assets
    During the year under review, the Company did not have any major acquisition and disposal of assets.
    3. Major Connected Transactions
    During the year under review, the Company’s first extraordinary general meeting in 2011 authorised the Board
    to determine, within an amount of RMB4.42 billion (i.e. not exceeding 10% of the Company’s audited net assets
    for the year 2010), cooperation with China Resources (Holdings) Co., Ltd and its connected companies
    (collectively “CRH”), including on entering into a loan agreement with Zhuhai City Commercial Bank Co., Ltd.,
    using the funds under China Resources SZITIC Trust Co., Ltd. and Harvest Capital Partners Limited, and joint
    investment with China Resources SZITIC Trust Co., Ltd. and Harvest Capital Partners Limited. The
    authorisation is valid for a period of one year commencing from the date of passing of the relevant resolution in
    the first extraordinary general meeting.
    The cooperation will fully leverage CRH’s financial strengths and platform, which will be beneficial to the
    Company to broaden its financing channels, strengthen its ability to avert risk, accelerate its development,
    enhance return on assets, and create synergies to achieve a win-win situation.
    In December 2011, the Board agreed, pursuant to the relevant authority granted, that the Company applied for a
    trust loan of RMB1 billion from China Resources SZITIC Trust Co., Ltd. for the development of the Shanghai
    Wujiefang Project. The term of the loan is two years, with an annual fixed interest rate of 11.2 per cent. The cost
    of the loan had been determined with reference to the prevailing market price level and the characteristics of the
    project, and was not higher than the cost of trust loan taken out by the Company from an independent third party
    during the period.
    The execution of the said loan will provide support to the development of the Company’s relevant project and
    will help expedite the operating efficiency of the project. The cooperation and related decision-making
    procedures comply with the relevant requirements and are in the interests of the listed company and shareholders
    as a whole.
    4. A-share Stock Option Incentive Scheme
    (1) Relevant procedures and commencement of the implementation of the A-Share Stock Option Incentive
    The twelfth meeting of the fifteenth session of the Board of the Company on 21 October 2010 approved the A-
    Share Stock Option Incentive Scheme of China Vanke Co., Ltd. (Draft). The scheme had been filed with China
    Securities Regulatory Commission. After revisions by the Company, the A-Share Stock Option Incentive
    Scheme (Revised Draft) (the “Scheme”) was submitted to the Board and was approved through voting by
    correspondence on 18 March 2011. China Securities Regulatory Commission has no objection to the Scheme.
    On 8 April 2011, the first extraordinary general meeting of the Company in 2011 was held and approved the A-
    Share Stock Option Incentive Scheme of China Vanke Co., Ltd. (Revised Draft). Implementation of the Scheme
    thus commenced.
    The A-Share Stock Option Incentive Scheme uses stock option as an incentive instrument. Each stock option
    confers the right to purchase one A-share of China Vanke at the exercise price within the exercise period under
    the A-Share Stock Option Incentive Scheme. When the Company and the beneficiaries of the Scheme fulfil the
    conditions for granting the options, the Company will grant stock options to the beneficiaries according to the
    Scheme. No stock options should be exercised during the vesting period, which is one year from the grant date.
    Thereafter, the granted stock options can be exercisable in three exercise periods. 40% of the options granted
    shall be exercisable during the first exercise period, another 30% and the remaining 30% shall be exercisable in
    the second and third exercise periods respectively. The right to exercise the stock options in each corresponding
    exercise period is subject to the fulfilment of the vesting conditions by the Company and the beneficiaries of the
    Scheme. The stock options will lapse if they fail to vest because the performance targets are not achieved and if
    they are not exercised even after the expiry of the exercise periods.
    Page 55
    The schedule for exercising the stock options is as follows:
    Percentage of options
    Stage                                              Schedule
    exercisable
    A period commencing from the first trading day after a 12-month period
    First exercise period   commencing from the grant date up to the last trading day of the 36th month                     40%
    from the grant date of the Scheme
    A period commencing from the first trading day after a 24-month period
    Second exercise
    commencing from the grant date up to the last trading day of the 48th month                     30%
    period
    from the grant date of the Scheme
    A period commencing from the first trading day after a 36-month period
    Third exercise
    commencing from the grant date up to the last trading day of the 60th month                     30%
    period
    from the grant date of the Scheme
    (2) Options granted under the A-Share Stock Option Incentive Scheme
    The second meeting of the sixteenth session of the Board of the Company held on 18 April 2011 approved the
    resolution regarding matters in relation to the granting of stock options under the A-share Stock Option
    Incentive Scheme. The meeting confirmed that the conditions for granting stock options under the A-share Stock
    Option Incentive Scheme had been fulfilled and determined 25 April 2011 as the date of grant of stock options.
    The seventh Supervisory Committee of the Compnay had verified and given its opinion on the list of
    beneficiaries of the Scheme.
    On 9 May 2011, the registration of the grant of stock options under the A-Share Stock Option Incentive Scheme
    of China Vanke Co., Ltd. was completed. The Company granted an aggregate of 108,435,000 stock options to
    810 beneficiaries. The maximum number of shares that may be issued upon the exercise in full of all the granted
    stock options in future represent 0.9862 per cent of the Company’s current total issued share capital.
    The abbreviation of the stock options granted under the Scheme is VankeJLC1, and the stock option code is
    037015.
    (3) Adjustment of exercise price of stock options and the implementation procedures for the A-Share
    Stock Options Incentive Scheme during the reporting period
    The initial exercise price of the stock options under the A-Share Stock Options Incentive Scheme was RMB8.89,
    which was subject to adjustment according to the relevant requirements of the Scheme should distribution of
    dividends, transfer of capital surplus reserve to share capital or other conditions occur within the validity period
    of stock options.
    On 27 May 2011 the Company implemented the proposal on dividend distribution for the year 2010. A cash
    dividend of RMB1.0 (including tax) would be paid to all the shareholders on the basis of every 10 existing
    shares held. Pursuant to the resolution regarding granting the Board the authority to handle matters relating to
    the Company’s Stock Option Incentive Scheme approved by the first extraordinary general meeting in 2011, the
    Board resolved to make corresponding adjustment to the exercise price of the A-share stock options. The
    exercise price after adjustment is RMB8.79.
    (4) Impact of implementation of the A-Share Stock Option Incentive Scheme on the financial position and
    operating results in the period under review and subsequent years
    The introduction of the Stock Option Incentive Scheme will complement the Company’s incentive instruments
    with a long-term plan, while establishing a check-and-balance mechanism between shareholders and
    professional management team through linking up their interests. The Scheme will further improve the
    Company’s corporate governance structure and strengthen the Company’s competitiveness.
    Accounting treatments for the A-Share Stock Option Incentive Scheme as equity-settled share-based payment
    are carried out in accordance with the “Accounting Standard for Business Enterprises No. 11 – Share-based
    payment”. On each balance sheet date within the vesting period, the Company shall included, based on the best
    estimate of the number of vested stock options, the services obtained from the beneficiaries during the period in
    the costs and expenses as well as in the capital surplus reserves at the fair value of the stock options on the grant
    Page 56
    date. During the exercise period of the stock options, the Company shall make no adjustment to the relevant
    costs, expenses or the capital surplus reserves which have been recognised. On each balance sheet date, based on
    the actual number of options exercised, the capital surplus reserves recognised shall be settled.
    A-Share Stock Option Incentive Scheme adopts Binomial option pricing model to estimate the fair value of the
    stock options on the grant date. According to the assessment results, the fair value of the stock options in the
    first exercise period is RMB88,790,000, the fair value of the stock options in the second exercise period is
    RMB94,280,000, while the fair value of the stock options in the third exercise period is RMB110,980,000.
    During the reporting period, according to the straight-line method, the cost of stock options of
    RMB1,06,236,000 amortised by the Company for the first, second and third exercise periods was included in the
    costs and expenses, while the Company’s capital surplus reserves increased by RMB1,06,236,000. Please refer
    to the notes to the financial statements for details on the accounting treatments.
    For details, please refer to the announcements published on China Securities Journal, Securities Times, Shanghai
    Securities News and www.cninfo.com.cn on 25 October 2010, 23 March 2011, 9 April 2011, 20 April 2011, 10
    May 2011 and 21 May 2011.
    5. Major Contracts and Their Implementation
    (1) During the reporting period, the Company was not subject to any material entrustment, sub-contracting or
    leasing arrangements involving assets of other companies, nor were any other companies entitled to any
    entrustment, sub-contracting or leasing arrangements involving assets of the Company.
    (3) Details on the new guarantees made by the Company during the reporting period are as follows:
    Guarantor         Company for which
    (% of equity      guarantee was granted                                                         Guarantee
    No.                                                       Guarantee amount         Remarks                                   Note
    interest held by   (% of equity interest held                                                      Period
    China Vanke )        by China Vanke )
    Provided a guarantee
    in proportion to the
    Shenzhen Vanke      Dongguan Xinwan Real                                                        From 12 January
    Company’s       equity
    1      Real Estate Co.,    Estate Development Co.,        RMB25.5 million                              2011     to  12
    holding for a bank
    Ltd. (100%)         Ltd. (51%)                                                                  January 2013
    loan     of    RMB50
    million
    Provided a guarantee
    Shenzhen Vanke      Dongguan Xinwan Real                              in proportion to the      From 12 January
    2      Real Estate Co.,    Estate Development Co.,        RMB51 million      Company’s       equity   2011     to  12
    Ltd. (100%)         Ltd. (51%)                                        holding for a bank loan   January 2013
    of RMB100 million
    Provided a guarantee
    Shenzhen Vanke      Dongguan Xinwan Real                              in proportion to the      From 22 March
    3      Real Estate Co.,    Estate Development Co.,        RMB102 million     Company’s       equity   2011 to 22 March
    Ltd. (100%)         Ltd. (51%)                                        holding for a bank loan   2013
    of RMB200 million
    Shenzhen Vanke      Shenzhen          Haixuan                         Provided a guarantee      From 31 March
    4      Real Estate Co.,    Investment    Development      RMB130 million     for a bank loan of        2011      to    6   Withdrawn
    Ltd. (100%)         Co., Ltd. (100%)                                  RMB130 million            December 2011
    Shenzhen Vanke                                                        Provided a guarantee      From 24 March
    Shanghai     Vanke      Real
    5      Real Estate Co.,                                   RMB700 million     for a loan of RMB700      2011     to    24
    Estate Co., Ltd. (100%)
    Ltd. (100%)                                                           million                   September 2013
    Shenzhen Vanke                                                        Provided a guarantee      From 2 April
    Shanghai     Vanke      Real
    6      Real Estate Co.,                                   RMB700 million     for a loan of RMB700      2011 to 2 October
    Estate Co., Ltd. (100%)
    Ltd. (100%)                                                           million                   2013
    Shenzhen Vanke      Wuxi Ding’an Real Estate                         Provided a guarantee      From 11 April
    7      Real Estate Co.,    Co., Ltd. (100%)               RMB1 billion       for a loan of RMB1        2011 to 11 April
    Ltd. (100%)                                                           billion                   2013
    Shenzhen Vanke
    Real Estate Co.,                                                      Provided a guarantee      From 29 April
    Ltd. (100%);        Wuhan Vanke Real Estate
    8                                                         RMB1.5 billion     for a loan of RMB1.5      2011 to 29 April
    Shanghai Vanke      Co., Ltd. (100%)                                  billion                   2013
    Real Estate Co.,
    Ltd. (100%)
    Dongguan Vanke      Dongguan Chang’an Vanke                          Provided a guarantee      From 11 May
    9      Real Estate Co.,    Real Estate Co., Ltd.          RMB300 million     for a loan of RMB300      2011 to 10 May
    Ltd. (100%)         (100%)                                            million                   2013
    Page 57
    Shenzhen Vanke       Ningbo Vanke Real Estate                       Provided a guarantee       From 12 May
    10   Real Estate Co.,     Development Co., Ltd.        RMB600 million    for a loan of RMB600       2011   to    12
    Ltd. (100%)          (100%)                                         million                    November 2012
    Changchun                                                           Provided a guarantee
    Wanrun      Real     Changchun Vanke Xizhigu                        in proportion to the       From 3 June 2011
    11   Estate               Real Estate Development      RMB75 million     Company’s        equity   to 3 June 2014
    Development Co.,     Co., Ltd. (50%)                                holding for a bank loan
    Ltd. (100%)                                                         of RMB150 million
    Provided a guarantee
    Beijing  Vanke       Beijing Zhuzong Vanke                          in proportion to the       From    20 May
    12   Company Limited      Real Estate Development      RMB500 million    Company’s        equity   2011 to 19 May
    (100%)               Co., Ltd. (50%)                                holding for a loan of      2013
    RMB1 billion
    Nanjing     Vanke                                                   Provided a guarantee       From 26 May
    Nanjing Wanhui Property
    13   Property Co., Ltd.                                RMB50 million     for a loan of RMB50        2011 to 25 July     Withdrawn
    Co., Ltd. (100%)
    (100%)                                                              million                    2011
    Nanjing     Vanke                                                   Provided a guarantee       From 4 November
    Nanjing Wanhui Property
    14   Property Co., Ltd.                                RMB100 million    for a loan of RMB100       2011     to   10
    Co., Ltd. (100%)
    (100%)                                                              million                    February 2012
    Shenzhen Vanke       Hangzhou Liangzhu New                          Provided a guarantee       From 14 June
    15   Real Estate Co.,     Town        Development      RMB1.2 billion    for a loan of RMB1.2       2011 to 14 June
    Ltd. (100%)          Company Limited (100%)                         billion                    2013
    Provided a counter
    guarantee     for    the
    Nanjing Wanhui                                                      Nanjing Branch of          From 12 July
    De facto -- Nanjing Wanhui
    16   Property Co., Ltd.                                RMB320 million    China         Minsheng     2011 to 11 July
    Property Co., Ltd. (100%)
    (100%)                                                              Banking Corp., Ltd.        2013
    for a loan of RMB320
    million
    Provided a counter
    guarantee in proportion
    to the Company’s
    equity holding for
    De facto -- Xiamen
    Xiamen      Vanke                                                   Engineering                From 30 June
    Wanfute    Real Estate
    17   Real Estate Co.,                                  RMB4,235,600      Construction               2011 to 13 July     Withdrawn
    Development Co., Ltd.
    Ltd. (100%)                                                         Corporation of Xiamen      2012
    (30%)                                          Special      Economic
    Zone for a letter of
    guarantee of RMB14
    million
    Provided a counter
    guarantee in proportion
    to the Company’s
    equity holding for
    De facto -- Xiamen
    Xiamen      Vanke                                                   Engineering                From 4 August
    Wanfute    Real Estate
    18   Real Estate Co.,                                  RMB4,235,600      Construction               2011 to 17 August
    Development Co., Ltd.
    Ltd. (100%)                                                         Corporation of Xiamen      2012
    (30%)                                          Special      Economic
    Zone for a letter of
    guarantee of RMB14
    million
    Shenzhen Vanke       Hangzhou Linlu Real Estate                     Provided a guarantee       From 27 July
    19   Real Estate Co.,     Development Co., Ltd.        RMB803 million    for a loan of RMB803       2011 to 27 July
    Ltd. (100%)          (100%)                                         million                    2013
    Provided a guarantee
    Shenyang Vanke       Shenyang Zhongtie Vanke                        in proportion to the       From 25 August
    20   Real Estate Co.,     Langyu Property Company      RMB51 million     Company’s        equity   2011 to 7 August
    Ltd. (100%)          Limited (51%)                                  holding for a bank loan    2014
    of RMB100 million
    Provided a guarantee
    Shenyang Vanke       Shenyang Zhongtie Vanke                        in proportion to the       From            1
    21   Real Estate Co.,     Langyu Property Company      RMB10.2 million   Company’s        equity   September 2011
    Ltd. (100%)          Limited (51%)                                  holding for a bank loan    to 7 August 2014
    of RMB20 million
    Provided a guarantee
    Shenyang Vanke       Shenyang Zhongtie Vanke                        in proportion to the       From           30
    22   Real Estate Co.,     Langyu Property Company      RMB25.5 million   Company’s        equity   November 2011
    Ltd. (100%)          Limited (51%)                                  holding for a bank loan    to 7 August 2014
    of RMB50 million
    Provided a guarantee
    Shenyang Vanke       Shenyang Zhongtie Vanke                        in proportion to the       From          31
    23   Real Estate Co.,     Langyu Property Company      RMB25.5 million   Company’s        equity   December 2011 to
    Ltd. (100%)          Limited (51%)                                  holding for a bank loan    7 August 2014
    of RMB50 million
    Changchun       Vanke
    Tianjin     Vanke                                                   Provided a guarantee       From           27
    Jingcheng  Real Estate
    24   Real Estate Co.,                                  RMB250 million    for a bank loan of         September 2011
    Development Co., Ltd.
    Ltd. (100%)                                                         RMB250 million             to 22 August 2014
    (10%)
    Page 58
    Changchun       Vanke
    Tianjin     Vanke                                                     Provided a guarantee      From 19 October
    Jingcheng  Real Estate
    25    Real Estate Co.,                                  RMB50 million       for a bank loan of        2011 to 22 August
    Development Co., Ltd.
    Ltd. (100%)                                                           RMB50 million             2014
    (10%)
    Shenzhen Vanke                                                        Provided a guarantee      From           29
    Shenzhen Vanke Hengda
    26    Real Estate Co.,                                  RMB354.82 million   for     a   loan  of      September 2011
    Property Co., Ltd. (100%)
    Ltd. (100%)                                                           RMB354.82 million         to 29 March 2013
    Shenzhen Vanke                                                        Provided a guarantee      From           21
    Shenzhen Vanke Hengda
    27    Real Estate Co.,                                  RMB145 million      for a loan of RMB145      November 2011
    Property Co., Ltd. (100%)
    Ltd. (100%)                                                           million                   to 29 March 2013
    Vanke Properties                                                      Provided a guarantee      From 10 August
    28    (Hong Kong) Co.,     Yaojing Co., Ltd. (100%)     RMB238,727,900      for a bank loan of        2011     to    10
    Ltd. (100%)                                                           US$37.8 million           February 2015
    Vanke Properties                                                      Provided a guarantee      From 8 December
    29    (Hong Kong) Co.,     Puhai Co., Ltd. (100%)       RMB277,367,600      for a bank loan of        2010      to    8
    Ltd. (100%)                                                           US$43.92 million          December 2013
    Shanghai Langda Industry                                                   From           16
    Shanghai Vanke                                                        Provided a guarantee
    Co., Limited (100%);                                                       November 2011
    30    Real Estate Co.,                                  RMB560 million      for a loan of RMB560
    Shanghai Jingyuan Property                                                 to 16 November
    Ltd. (100%)                                                           million
    Company Limited (45%)                                                      2015
    Nanjing     Vanke
    Property Co., Ltd.                                                    Provided a guarantee      From         29
    (100%);              Nanjing Paradiso Property                        for a trust loan and a    September 2011
    31                                                      RMB691.2 million
    Shanghai Vanke       Co., Ltd. (100%)                                 trust    income     of    to 29 September
    Real Estate Co.,                                                      RMB540 million            2015
    Ltd. (100%)
    Provided a guarantee
    Shanghai Vanke       Shanghai Jingyuan Property                       in proportion to the      From 31 March
    32    Real Estate Co.,     Development      Company     RMB88,170,400       Company’s       equity   2011    to    30
    Ltd. (100%)          Limited (45%)                                    holding for a bank loan   September 2013
    of RMB195,934,300
    Provided a guarantee
    Shanghai Vanke       Shanghai Jingyuan Property                       in proportion to the      From 10 October
    33    Real Estate Co.,     Development      Company     RMB4,079,600        Company’s       equity   2011    to    30
    Ltd. (100%)          Limited (45%)                                    holding for a bank loan   September 2013
    of RMB9,065,700
    Provided a guarantee
    Shanghai Vanke       Shanghai Jingyuan Property                       in proportion to the      From 2 November
    34    Real Estate Co.,     Development      Company     RMB9 million        Company’s       equity   2011    to    30
    Ltd. (100%)          Limited (45%)                                    holding for a bank loan   September 2013
    of RMB20 million
    Provided a guarantee      From         10
    Shanghai Vanke       Shanghai Jingyuan Property                       in proportion to the      November 2011
    35    Real Estate Co.,     Development      Company     RMB6.3 million      Company’s       equity   to 30 September
    Ltd. (100%)          Limited (45%)                                    holding for a bank loan   2013
    of RMB14 million
    Provided a guarantee
    Shanghai Vanke       Shanghai Jingyuan Property                       in proportion to the      From 6 December
    36    Real Estate Co.,     Development      Company     RMB7.65 million     Company’s       equity   2011    to    30
    Ltd. (100%)          Limited (45%)                                    holding for a bank loan   September 2013
    of RMB17 million
    Provided a guarantee      From         27
    Shanghai Vanke       Shanghai Jingyuan Property                       in proportion to the      December 2011 to
    37    Real Estate Co.,     Development      Company     RMB2.25 million     Company’s       equity   30    September
    Ltd. (100%)          Limited (45%)                                    holding for a bank loan   2013
    of RMB5 million
    During the year under review, the new amount of guarantees (including counter guarantees) made by the
    Company and its majority-owned subsidiaries was RMB10,962 million, and the amount of guarantees
    withdrawn was RMB490 million. As at the end of the year under review, the outstanding amount of guarantees
    made by the Company was RMB13,685 million, accounting for 25.84 per cent of the Company’s net assets. The
    outstanding amount of guarantees made by the Company and its majority-owned subsidiaries for other majority-
    owned subsidiaries was RMB12,035 million, the outstanding amount of guarantees made by the Company and
    its majority-owned subsidiaries for associated and joint venture companies was RMB1,650 million.
    During the year under review, the Company did not provide guarantee for shareholders, beneficial controller and
    its connected parties.
    (3) During the year under review, the Company did not have any entrustment of financial management.
    (4) For details on the projects acquired by the Company during the year under review, please refer to “Project
    investment” under the “Use of capital not from the capital market” section.
    Page 59
    6. Specific elaboration and independent opinions of the independent directors on the use of capital and
    external guarantees provided by connected parties
    There had been no non-operational use of capital by the controlling shareholder or other connected parties of the
    Company.
    During the year under review, the Company, in strict compliance with the related rules, regulated its external
    guarantee activities in order to control risks. There was no violation against the “Notice regarding the regulation
    of external guarantees by listed companies”. The Company’s guarantees had been made to meet its production
    and operational needs and the requirements for reasonable use of capital. The procedures for the determination
    of providing guarantees had been legal and reasonable, without prejudice to the interests of the Company and its
    shareholders.
    7. Implementation of the undertakings given by the Company or shareholders holding 5% or more of the
    equity interests in the Company
    CRNC – the parent company of CRC, being the Company’s original single largest shareholder and the present
    single largest shareholder, gave a significant undertaking to the Company in 2001: CRNC would provide as
    much support to the Company as it did in the past, as long as such support was beneficial to the Company’s
    development, and that it would remain impartial in the event of any competition between the investment projects
    of the Company and that of CRNC and its subsidiaries, and in the event of any disagreements or disputes arising
    from horizontal competition. CRNC had fulfilled its undertaking.
    8. Interaction with investors
    In 2011, the Company maintained close contact with its investors. During the year, the Company received
    around 620 investor visits, participated in 68 large-scale investor meetings organized by both domestic and
    international corporations. The Company also organised 4 investor meetings and 2 online presentations. In
    addition, via telephone, e-mail and the Internet, the Company communicated with and gathered opinions from
    investors, disseminated information about the Company, maintained trust between the Company and its
    investors.
    In 2011, the Company received the awards for Outstanding Investor Relations by An A-Share Listed Company
    in China and the Best Investor Relations by a CEO in China from IR Global Rankings. The Company also
    received the Golden Bull Award for Built to Last Companies and Investors’ Most Trusted Company Award
    from China Securities Journal. The Company’s secretary to the Board received the title of Golden Secretary to
    the Board and was named Institutional Investors’ Most Popular Secretary to the Board by “New Fortune”,and
    was named as the Golden Secretary to the Board of Listed Companies at the 2010 Best Investor Relations jointly
    organised by hexun.com, Stock Exchange Executive Council (“SEEC”) of the PRC; the Top 100 Secretaries to
    the Boards of Main Board Listed Companies in China by Securities Times, the Best Secretary to the Board of
    Main Board Listed Companies in China by Moneyweek, the Most Innovative Secretary to the Board by
    Dongshihui etc.
    Details on the Company’s investor meetings in 2011:
    Issues discussed
    Type of meeting      Date         Location        Approach                Classification of visitors              and information
    provided
    Deutsche Bank                                     Face to     Investors including securities companies, funds,   (I) Major issues
    2011.1         Beijing                                                                        discussed:
    meeting                                         Face       etc
    2011.1                                                                                        (1) The
    Face to     Investors including securities companies, funds,
    UBS meeting                     Shanghai                                                                        Company’s
    Face       etc                                                daily
    Hong Kong,                                                                       operations;
    Annual results                      Shenzhen        Face to     Investors including securities companies, funds,   (2)The
    2011.3                                                                                        Company’s
    presentation                    (Shanghai,        Face       individual investors, etc
    Beijing)                                                                      development
    strategies;
    2011.3                         Face to     Investors including securities companies, funds,
    CLSA meeting                    Hong Kong                                                                        (3)The
    Face       etc                                                Company’s
    Credit Suisse     2011.3       Hong Kong         Face to     Investors including securities companies, funds,   opinion on the
    Page 60
    Securities meeting                            Face       etc                                                  changes in the
    Face to     Investors   including securities companies, funds,   industry.
    BNP meeting         2011.3   Hong Kong                                                                      (II) Major
    Face       etc
    information
    Qilu Securities      2011.3                 Face to     Investors   including securities companies, funds,   provided:
    Shenzhen
    meeting                                  Face       etc                                                  Published
    Credit Suisse       2011.3                 Face to     Investors   including securities companies, funds,   information
    Hong Kong                                                                      including the
    Securities meeting                            Face       etc
    2011.4                                                                                  Company’s
    Essence Securities                           Face to     Investors   including securities companies, funds,
    Beijing                                                                      regular reports.
    meeting                                  Face       etc
    2011.5                 Face to     Investors   including securities companies, funds,
    Macquarie meeting               Hong Kong
    Face       etc
    2011.5                 Face to     Investors   including securities companies, funds,
    CLSA meeting                    Beijing
    Face       etc
    Morgan Stanley       2011.5                 Face to     Investors   including securities companies, funds,
    Hong Kong
    meeting                                  Face       etc
    Goldman Sachs        2011.5                 Face to     Investors   including securities companies, funds,
    Shenzhen
    Gaohua meeting                               Face       etc
    Mirae Asset        2011.5                 Face to     Investors   including securities companies, funds,
    Hong Kong
    Securities meeting                            Face       etc
    2011.6                 Face to     Investors   including securities companies, funds,
    JP Morgan meeting                 Beijing
    Face       etc
    2011.6                 Face to     Investors   including securities companies, funds,
    CLSA meeting                  Hong Kong
    Face       etc
    Guosen Securities     2011.6                 Face to     Investors   including securities companies, funds,
    Shanghai
    meeting                                  Face       etc
    Huatai United       2011.6                 Face to     Investors   including securities companies, funds,
    Shanghai
    Securities meeting                            Face       etc
    Nomura Securities     2011.6                 Face to     Investors   including securities companies, funds,
    Singapore
    meeting                                  Face       etc
    Sinolink Securities   2011.6                 Face to     Investors   including securities companies, funds,
    Sanya
    meeting                                  Face       etc
    Ping An Securities    2011.6                 Face to     Investors   including securities companies, funds,
    Shenzhen
    meeting                                  Face       etc
    Credit Suisse      2011.6                 Face to     Investors   including securities companies, funds,
    Chongqing
    Securities meeting                            Face       etc
    2011.6                 Face to     Investors   including securities companies, funds,
    UBS meeting                   Qingdao
    Face       etc
    Essence Securities    2011.6                 Face to     Investors   including securities companies, funds,
    Shanghai
    meeting                                  Face       etc
    CITIC Securities               Chengdu      Face to     Investors   including securities companies, funds,
    2011.7
    meeting                                  Face       etc
    Hongyuan Securities    2011.7                 Face to     Investors   including securities companies, funds,
    Shenzhen
    meeting                                  Face       etc
    Qilu Securities     2011.7                 Face to     Investors   including securities companies, funds,
    Qingdao
    meeting                                  Face       etc
    Huatai United       2011.7                 Face to     Investors   including securities companies, funds,
    Shenzhen
    Securities meeting                            Face       etc
    CITIC Securities               Shenzhen     Face to     Investors   including securities companies, funds,
    2011.7
    meeting                                  Face       etc
    Hong Kong,
    Interim results                   Shenzhen    Face to     Investors including securities companies, funds,
    2011.8
    presentation                (Shanghai,    Face       individual investors, etc
    Beijing)
    Credit Suisse       2011.8                 Face to     Investors including securities companies, funds,
    Hong Kong
    Securities meeting                            Face       etc
    2011.8                 Face to     Investors including securities companies, funds,
    BNP meeting                  Hong Kong
    Face       etc
    Guotai Junan        2011.8    Shenzhen     Face to     Investors including securities companies, funds,
    Page 61
    meeting                                             Face        etc
    2011.9                           Face to      Investors   including securities companies, funds,
    CLSA meeting                      Hong Kong
    Face        etc
    Hong Kong           Face to      Investors   including securities companies, funds,
    UBS meeting          2011.9
    Face        etc
    2011.10                           Face to      Investors   including securities companies, funds,
    HSBC meeting                      Hong Kong
    Face        etc
    2011.10                           Face to      Investors   including securities companies, funds,
    BNP meeting                         Qingdao
    Face        etc
    Goldman Sachs         2011.10                           Face to      Investors   including securities companies, funds,
    Beijing
    Gaohua meeting                                           Face        etc
    Samsung Securities     2011.10                           Face to      Investors   including securities companies, funds,
    Hong Kong
    meeting                                               Face        etc
    Merrill Lynch        2011.11                           Face to      Investors   including securities companies, funds,
    Beijing
    meeting                                               Face        etc
    Morgan Stanley        2011.11                           Face to      Investors   including securities companies, funds,
    Singapore
    meeting                                               Face        etc
    2011.11                           Face to      Investors   including securities companies, funds,
    CICC meeting                         Beijing
    Face        etc
    2011.11                           Face to      Investors   including securities companies, funds,
    Jefferies meeting                  Hong Kong
    Face        etc
    Changjiang         2011.11                           Face to      Investors   including securities companies, funds,
    Shanghai
    Securities meeting                                       Face        etc
    Guotai Junan        2011.11                           Face to      Investors   including securities companies, funds,
    Shanghai
    meeting                                              Face        etc
    Huatai United       2011.11                           Face to      Investors   including securities companies, funds,
    Shenzhen
    Securities meeting                                       Face        etc
    Nomura Securities     2011.12                           Face to      Investors   including securities companies, funds,
    Tokyo
    meeting                                              Face        etc
    2011.12                           Face to      Investors   including securities companies, funds,
    CLSA meeting                      Hong Kong
    Face        etc
    HuaChuang        2011.12                            Face to      Investors including securities companies,   funds,
    Shenzhen
    Securities meeting                                       Face        etc
    Merrill Lynch     2011.12                            Face to      Investors including securities companies,   funds,
    Hong Kong
    meeting                                            Face        etc
    China Jianyin     2011.12
    Face to    Investors including securities companies,   funds,
    Investment                       Shenzhen
    Face      etc
    Securities meeting
    CITIC Securities    2011.12                              Face to    Investors including securities companies,   funds,
    Shenzhen
    meeting                                              Face      etc
    Mizuho Securities    2011.12                              Face to    Investors including securities companies,   funds,
    Hong Kong
    meeting                                              Face      etc
    Guangfa Securities   2011.12                              Face to    Investors including securities companies,   funds,
    Shenzhen
    meeting                                              Face      etc
    China Merchants     2011.12                              Face to    Investors including securities companies,   funds,
    Shenzhen
    Securities meeting                                         Face      etc
    Essence Securities   2011.12                              Face to    Investors including securities companies,   funds,
    Shenzhen
    meeting                                              Face      etc
    Guosen Securities   2011.12                              Face to    Investors including securities companies,   funds,
    Chongqing
    meeting                                              Face      etc
    Haitong Securities   2011.12                              Face to    Investors including securities companies,   funds,
    Shanghai
    meeting                                              Face      etc
    Note: The above-mentioned meetings included one-on-one meetings, small group meetings and large group
    presentation. The Company received or met with investors from over 50 companies.
    During     Shenzhen,            Small          Shenjin Wanguo, CLSA, Orient Securities,
    Securities             the year   Guangzhou,           group          Guosen Securities, Nomura Securities, CITIC
    companies              under      Dongguan,            or    one-     Securities, Deutsche Bank, Citi, UBS, Goldman
    review    Foshan,   Zhuhai,    onone          Sachs, Credit Suisse Securities, Guangfa
    Page 62
    Xiamen, Fuzhou,                    Securities, Huatai United Securities, JP Morgan,
    Sanya, Changsha,                   Changjiang Securities, Haitong Securities,
    Shanghai, Nanjing,                 Yuanta Securities, Essence Securities, Merrill
    Wuxi, Hangzhou,                    Lynch Securities, Goldman Sachs Gaohua, Great
    Ningbo,      Hefei,                Wall Securities, Mitsubishi UFJ Morgan Stanley
    Nanchang,                          Securities, Rising Securities, BOC International,
    Beijing, Tianjin,                  Everbright Securities, China Jianyin Investment
    Shenyang, Dalian,                  Securities, Sinolink Securities, Qilu Securities,
    Anshan, Qingdao,                   Samsung Securities, Dongxing Securities,
    Yantai,    Wuhan,                  Morgan Stanley, CICC, HSBC, Daiwa Securities,
    Chengdu,                           Macquarie, RBS, Guotai Junan, MasterLink
    Chongqing, Xi’an,                 Securities, KGI Securities, Minsheng Securities,
    Kunming,                           CCB International Securities, BNP, Jefferies,
    Guiyang, etc.                      Barclays Capital, Religare Capital Markets, ISI
    Group, DBS Vickers, Korea Investment &
    Securities, Keefe, Bruyette & Woods, etc.
    Yinhua Fund, China Universal Asset
    Management, China AMC, Orient Fund, Pacific
    Assets Management, CCB Principal Asset
    Management, Guotai AMC, China Post Fund,
    Bank of Communications Schroders Fund,
    Changsheng Fund, Rongtong Fund, Fullgoal
    Fund, Wellington Asset Management, CDH
    Investments, China International Fund
    Management, Baoying Fund, Orient Securities
    Asset Management, Power Corporation of
    Canada, Southern Fund, Taikang Life, Fortis
    Haitong Fund, ICBC Credit Suisse Asset
    Management, Dacheng Fund, Hua An Fund,
    Guangfa Fund, Bosera Fund, Harvest Fund,
    Supreme Master Investment Limited, First State
    Investments, Franklin Templeton Investments,
    Nissay Asset Management Corporation, Taiping
    Assets Management, Bank of China Investment
    Management, ABN AMRO Teda Fund, China
    Shenzhen,                          Life, Fortune SGAM Fund, Upstone assets (顶石
    Guangzhou,                         资产), Goldman Sachs (Asia), AmericAsia
    Dongguan,                          Investment Association, Invesco Great Wall
    Foshan,    Zhuhai,                 Fund, Baring Asset Management, First Beijing
    Xiamen, Fuzhou,                    Company, LionRock Capital, Capital Research,
    Sanya, Changsha,                   Brevan Howard, Prudential, Adage Capital,
    Funds and other              Shanghai, Nanjing,                 Millennium Management LLC, SAC, Apollo,
    During     Wuxi, Hangzhou,       Small        GIC, DNB Asset, Pangu Capital Ltd, Sekker and
    investment
    the year   Ningbo,      Hefei,   group        Advisors, Trivest Advisors, Value Investors
    companies and
    under      Nanchang,             or    one-   Management, Clairvoyance Capital, Alliance
    individual
    review    Beijing, Tianjin,     onone        Berstein, GMO, Janus, Bernstein, Invesco,
    investors                    Shenyang, Dalian,                  GENESIS, Prime Capital Management, Pacific
    Anshan, Qingdao,                   Eagle Asset Mgmt, Chilton Investment, Blue
    Yantai,    Wuhan,                  Pool Capital, Mitsubishi UFJ, Value Partners,
    Chengdu,                           TIAA-CREF, Och-Ziff, Union Investment,
    Chongqing, Xi’an,                 Sumitomo Trust & Banking (Tokyo), Henderson
    Kunming,                           Investment, AMP Capital, JF AM, Point State,
    Guiyang, etc.                      Highbridge Capital, Broad Peak, Tiger Asia,
    Daiwa SB Investments, Capital World, Fidelity
    Investment, Heitman, Citic Securities, Taurus,
    Ginger Capital, Urdang, Zeal Asset Mgmt, UBS
    Asset Management, PGGM, GE Capital, GE
    Asset Management, Blackrock, Pelargos Capital
    B.V, Eton Park, Capital Research Global,
    Hyundai Asset Management, Samsung
    Investment Trust Management, Samsung Life
    Insurance, Taurus Investment Management,
    Woori Asset Management, GS Asset Co. , KTB
    Asset Management, PCA Investment Korea,
    Shinyoung Asset Management, Tube Asset
    Investment Advisory, Cosmo Investment
    Management, Sky Investment Advisors, Consus
    Asset Management, ING Investment
    Management Korea, LIG Insurance Co., Mirae
    Asset Life Insurance, Causeway Capital, RREEF,
    Everest Capital Limited, Lombard Odier Darier
    Hentsch & Cie, Yuanta Securities Investment
    Page 63
    Trust Co Ltd, Absolute Partners Management
    Limited, Harvest Global Investments Limited,
    Amundi Hong Kong Limited, TB Alternative
    Assets Ltd, Hang Seng Investment Management
    Limited, Pinpoint Asset Management Company
    Ltd, Susquehanna Ireland Limited, Pharo
    Management (UK) LLP, China Life Trustees
    Limited, Shin Kong Investment Trust Co Ltd,
    Nomura Asset Management Hong Kong Ltd,
    Pictet Asset Management Limited,
    NeubergerBerman, CBRE Richard Ellis,
    Templeton Emerging Markets, Aizawa, Banco
    BBM, Moon Capital, Aeris International, J
    Capital Research, Lansdowne Partners Limited,
    UOB, LaSalle, Basic AM, Capital Dynamics,
    Blue Ridge Asset Management, Caxton
    Investment Co, Pyramis Asset Management,
    Armature Capital, Barclays Capital, Thornburg
    Investment Management, TT International,
    Perennial Investment Partners Limited, Dai-ichi
    Life Group (Janpan) , Omnix Capital Limited,
    Templeton Investment Counsel, Morgan Stanley
    Investment Management, Paradice Investment
    Australia, Mastholm AM, etc.
    9.Corporate bonds and related matters
    The Shenzhen Branch of China Construction Bank Corporation (authorised by the headquarters) provided an
    unconditional and irrevocable joint liability guarantee for the full payment of the principal and interest of the
    secured corporate bonds, 08 Vanke G1, issued by the Company. During the year under review, the guarantor
    continued to be profitable, with sound assets structure, and there was no significant change in its credit status.
    During the year under review, the Company’s issued bonds, including “08 Vanke G1” (Bond code: 112005) and
    “08 Vanke G2” (Bond code: 112006), was tracked and rated by China Chengxin Securities Rating Co., Ltd. (中
    诚信证券评估有限公司) (“China Chengxin”). The rating company continued to assign an AAA credit rating to
    the Company’s secured corporate bonds “08 Vanke G1”, and raised the rating for unsecured corporate bonds
    “08 Vanke G2” and the Company’s corporate credit rating to AAA respectively. China Chengxin gave a stable
    outlook rating to the Company. During the year under review, the Company maintained a good credit standing.
    Citic Securities Co., Ltd., the trustee of the Company’s corporate bonds, is of the opinion that: China Vanke has
    a healthy operation and good credit standing, with strong capacity to meet its financial obligation. The principal
    and interest payments for this bond issue are safe.
    During the year under review, the Company paid the third-year interest on 08 Vanke G1 and 08 Vanke G2.
    According to the “The Circular of China Vanke Co., Ltd. on Corporate Bonds Public Offering” published on 2
    September 2008, the Company has the right to determine whether or not to raise the coupon rate of the
    unsecured corporate bonds (short name “08 Vanke G2”) issued by the Company in 2008 at the end of the third
    year of the bond duration, with the upward adjustments in the range of 1 to 100 basis points (including the
    number itself). The annual coupon rate of the unsecured bonds is the annual coupon rate of 7.00% for the first
    three years of the bond duration plus the basis points for upward adjustments, and will remain unchanged for
    the two years after the bond duration. Investors have the right to sell back all or part of the “08 Vanke G2”
    bonds held by them at the face value to the Company on the day they receive the third interest payment during
    the bond duration of “08 Vanke G2”.
    On 22 August 2011, the Company published the “Announcement regarding matters in relation to coupon rate of
    and investors’ option to sell back 08 Vanke G2”, and published notices on 25 August, 29 August respectively.
    Investors could choose to sell back all or part of the “08 Vanke G2” bonds held by them at the price of
    RMB100/bond to the Compny on the sellback registration day (29 August 2011).
    According to the statistics from the Shenzhen office of China Securities Depository & Clearing Corporation
    Limited, the number of “08 Vanke G2” bonds sold back to the Company was 0 and the amount paid for bonds
    sold back to the Company was 0.
    Page 64
    10.Other investments
    10.1 Investment of securities
    No.
    10.2 Equity interests held in other listed companies
    RMB’000
    Changes in
    Booked
    Gains/(losses)           equity
    Initial                               value as at
    Stock            Stock                                 Percentage of                             during the         attributable to
    investment                               the end of
    code          abbreviation                             shareholdings                             year under         equity holders
    amount                                  the year
    review           during the year
    under review
    under review
    600751      SST Tianjin Marine                 143.6             0.04%                   143.6                  -                    -
    Shipping Co., Ltd.
    Total                                          143.6                   -                 143.6
    Note: Equity interests held in SST Tianjin Marine Shipping Co., Ltd are legal person shares held by the Company over the years.
    Up till now, it has not undergone share reform.
    10.3 Shareholding of non-listed financial corporations and companies planning for listing
    No.
    10.4 Investment in derivatives
    In order to limit the risk associated with the fluctuations of interest
    rate, the Company entered into an interest rate swap (“IRS”)
    Remarks on risk analysis and management of derivative                 agreement to hedge floating rate foreign currency loan. The Company
    positions during the year under review (including but not             would charge the counterparty an interest according to a floating rate,
    limited to market risk, liquidity risk, credit risk, operational risk in order to pay the floating-rate interest to the original lender, while
    and legal risk, etc.)                                                 paying a fixed rate to the counterparty. In terms of the term and
    amount of the foreign currency loan, IRS limits the risk of fluctuations
    of interest rate through fixed forward rate.
    Change in market price or fair value of the derivatives invested The effect of the change in the IRS value on the Company’s profit or
    during the year under review, as well as the method, related          loss during the year under review amounted to RMB(2,868,565.33).
    assumptions and parameters used to analyse the fair value of          The value of the IRS was determined based on the fair value assessed
    derivatives should be disclosed                                       on 31 December 2011
    Remarks on whether there has been a material change in the
    accounting policy and accounting measurement principles for
    Nil
    the Company’s derivatives during the year under review as
    compared with those of the previous reporting year
    The Company’s independent directors are of the view that financial
    instruments such as IRS prevent the possible loss associated with
    Special advice on derivative investment and risk control by
    foreign currency loan in the event of significant fluctuations in interest
    independent directors, sponsors or financial advisors
    rate. The relevant arrangement of the Company had been prudent and
    reasonable.
    Derivative positions as at the end of the year under review
    Unit: RMB’000
    Contract amount as at
    Contract amount as at Contract amount as Profit/loss during the thepercentage ofyear as
    end of the
    a                the
    Type of contracts       the beginning of the  at the end of the   year under review Company’s net assets
    year                  year                             as at the end of 2011
    Interest rate swap
    1,249,109.4                 3,079,879.9              (2,868.6)                      5.81%
    (IRS) agreement
    Total                           1,249,109.4                 3,079,879.9              (2,868.6)                     5.81%
    11. Was there any use of the Company’s funds by the controlling shareholder and other related parties
    for non-operation purpose?
    There had not been any use of the Company’s funds by the controlling shareholder and other related parties for
    non-operation purpose.
    Page 65
    12. Appointment and termination of certified public accountants
    The 2010 Annual General Meeting resolved to confirm the appointment of KPMG Huazhen Certified Public
    Accountants as the Company’s auditors for the year 2011. The following table shows the details on the
    appointment of the certified public accountants of the Company:
    2011                                                  2010
    Year of service
    Audited item                    Auditor          Audit fee                            Auditor          Audit fee
    The Group’s consolidated
    financial statements prepared
    in accordance with the PRC                                            11 years
    Accounting Standards for        KPMG Huazhen                                         KPMG Huazhen
    Business Enterprises            Certified Public RMB8,500,000.00                     Certified Public    RMB7,350,000.00
    Accountants                                          Accountants
    The Group’s consolidated
    financial statements prepared                                         19 years
    in accordance with the IFRS
    The above-mentioned audit fee included the travelling expenses incurred during the auditing period.
    13. There was no disciplinary action taken against the Company nor its Directors, members of
    Supervisory Committee and senior management during the year under review
    XI. Chronology of 2011
    On 31 March 2011, the Company convened the 2010 Annual General Meetinig, during which the sixteenth
    session of the Board was elected.
    On 8 April 2011, the Company’s first extraordinary general meeting in 2011 approved the Company’s A-share
    Stock Option Incentive Scheme
    On 27 June 2011, in the presence of Chinese Premier and UK Prime Minister, the Company and UK-based
    Building Research Establishment (BRE) signed a Memorandum of Understanding (MoU) for collaboration on a
    green construction park in Beijing, through which the most advanced European green building techniques would
    be introduced into China.
    29 August 2011 was the registration date for the sellback of the unsecured corporate bonds “08 Vanke G2”
    issued by the Company. No investors opted for sellback.
    On 23 September 2011, which is the 27th anniversary day of China Vanke, the Company applied to the
    Secretary-General of the United Nations to become a “United Nations Global Compact Participant”. In October,
    the Company’s application was accepted and thus became the first PRC property developer to be a “United
    Nations Global Compact Participant”.
    XII. Financial Report
    Page 66
    China Vanke Co., Ltd.
    万科企业股份有限公司
    31 December 2011
    Page 67
    Independent auditor’s report to the shareholders of
    China Vanke Co., Ltd.
    (Established as a joint stock company in the People’s Republic of China
    with limited liability)
    We have audited the accompanying consolidated financial statements of China Vanke Co.,
    Ltd. (“the Company”) and its subsidiaries (together “the Group”), which comprise the
    consolidated statement of financial position as at 31 December 2011, the consolidated
    income statement, the consolidated statement of comprehensive income, the consolidated
    statement of changes in equity and the consolidated cash flow statement for the year then
    ended and notes, comprising a summary of significant accounting policies and other
    explanatory information.
    Management’s responsibility for the consolidated financial statements
    Management is responsible for the preparation and fair presentation of these consolidated
    financial statements in accordance with International Financial Reporting Standards issued
    by the International Accounting Standards Board and for such internal control as
    management determines is necessary to enable the preparation of consolidated financial
    statements that are free from material misstatement, whether due to fraud or error.
    Auditor’s responsibility
    Our responsibility is to express an opinion on these consolidated financial statements based
    on our audit. We conducted our audit in accordance with International Standards on Auditing
    issued by the International Auditing and Assurance Standards Board. Those standards
    require that we comply with ethical requirements and plan and perform the audit to obtain
    reasonable assurance about whether the consolidated financial statements are free from
    material misstatement.
    An audit involves performing procedures to obtain audit evidence about the amounts and
    disclosures in the consolidated financial statements. The procedures selected depend on our
    judgement, including the assessment of the risks of material misstatement of the consolidated
    financial statements, whether due to fraud or error. In making those risk assessments, we
    consider internal control relevant to the entity’s preparation and fair presentation of the
    consolidated financial statements in order to design audit procedures that are appropriate in
    the circumstances, but not for the purpose of expressing an opinion on the effectiveness of
    the entity’s internal control. An audit also includes evaluating the appropriateness of
    accounting policies used and the reasonableness of accounting estimates made by
    management, as well as evaluating the overall presentation of the consolidated financial
    statements.
    Page 68
    Independent auditor’s report to the shareholders of
    China Vanke Co., Ltd. (continued)
    (Established as a joint stock company in the People’s Republic of China
    with limited liability)
    We believe that the audit evidence we have obtained is sufficient and appropriate to provide a
    basis for our audit opinion.
    Opinion
    In our opinion, the consolidated financial statements give a true and fair view of the
    consolidated financial position of the Group as at 31 December 2011 and of its consolidated
    financial performance and its consolidated cash flows for the year then ended in accordance
    with International Financial Reporting Standards.
    Certified Public Accountants
    8th Floor, Tower E2, Oriental Plaza
    1 East Chang An Avenue
    Beijing, People’s Republic of China
    9 March 2012
    Page 69
    China Vanke Co., Ltd.
    Financial statements for the year ended 31 December 2011
    Consolidated income statement
    for the year ended 31 December 2011
    (Expressed in Renminbi Yuan)
    Note                      2011                    2010
    RMB’000                RMB’000
    Revenue                                         4(a)                67,709,396               47,763,550
    Cost of sales                                                      (43,249,418)             (29,528,521)
    Gross profit                                                        24,459,978               18,235,029
    Other revenue                                    5                      820,643                 787,638
    Other net income                                 6                      138,306                 410,591
    Distribution costs                                                   (2,556,775)             (2,079,093)
    Administrative expenses                                              (2,666,722)             (1,881,498)
    Other operating expenses                         7                      (97,004)                (95,864)
    Profit from operations                                              20,098,426               15,376,803
    Finance costs                                   8(a)                 (1,252,354)             (1,125,639)
    Share of profits less losses of associates       14                     397,783                 135,391
    Share of profits less losses
    of jointly controlled entities                 15                     246,205                  156,312
    Profit before taxation                                              19,490,060               14,542,867
    Income tax                                      9(a)                 (7,890,454)             (5,703,256)
    Profit for the year                                                 11,599,606                8,839,611
    Attributable to:
    Equity shareholders of the Company                                    9,624,875               7,283,128
    Non-controlling interests                                             1,974,731               1,556,483
    Profit for the year                                                 11,599,606                8,839,611
    Basic earnings per share (RMB)                   11                          0.88                     0.66
    The accompanying notes form part of these financial statements. Details of dividends payable to
    equity shareholders of the Company attributable to the profit for the year are set out in note 29(c).
    Page 70
    China Vanke Co., Ltd.
    Financial statements for the year ended 31 December 2011
    Consolidated statement of comprehensive income
    for the year ended 31 December 2011
    (Expressed in Renminbi Yuan)
    Note                   2011                    2010
    RMB’000                RMB’000
    Profit for the year                                             11,599,606             8,839,611
    -------------------- --------------------
    Other comprehensive income
    (after tax and reclassification adjustments) 10
    Exchange differences on translation of
    financial statements of overseas subsidiaries                      155,644                  113,411
    Available-for-sale securities: net movement in
    the fair value reserve                                               27,373                (106,834)
    183,017                   6,577
    --------------------- ---------------------
    Total comprehensive income for the year                          11,782,623             8,846,188
    Attributable to:
    Equity shareholders of the Company                                 9,807,892               7,289,705
    Non-controlling interests                                          1,974,731               1,556,483
    Total comprehensive income for the year                          11,782,623                8,846,188
    The accompanying notes form part of these financial statements.
    Page 71
    China Vanke Co., Ltd.
    Financial statements for the year ended 31 December 2011
    Consolidated statement of financial position
    at 31 December 2011
    (Expressed in Renminbi Yuan)
    Note                      2011                    2010
    RMB’000                RMB’000
    Non-current assets
    Property, plant and equipment                12                    2,777,889               2,389,977
    Investment properties                        13                    1,126,105                 129,176
    Interest in associates                       14                    2,160,824               1,035,876
    Interest in jointly controlled entities      15                    4,183,142               3,374,074
    Other financial assets                       16                      523,790                 488,565
    Other non-current assets                     17                      463,793               1,055,993
    Deferred tax assets                         25(b)                  2,326,242               1,643,158
    13,561,785            10,116,819
    --------------------- ---------------------
    Current assets
    Inventories                                   18                208,661,350             133,680,569
    Trade and other receivables                   19                 40,071,647              34,370,341
    Pledged deposits                              20                    625,403               2,719,998
    Cash and cash equivalents                     21                 33,614,112              35,096,935
    282,972,512           205,867,843
    --------------------- ---------------------
    Current liabilities
    Loans and borrowings                         22                  23,570,276              16,783,691
    Financial derivatives                        23                      17,042                  15,054
    Trade and other payables                     24                 168,893,596             106,138,344
    Current taxation                            25(a)                 8,243,247               6,713,702
    200,724,161           129,650,791
    --------------------- ---------------------
    Net current assets                                               82,248,351            76,217,052
    --------------------- ---------------------
    Total assets less current liabilities                            95,810,136            86,333,871
    --------------------- ---------------------
    Page 72
    China Vanke Co., Ltd.
    Financial statements for the year ended 31 December 2011
    Consolidated statement of financial position
    at 31 December 2011(continued)
    (Expressed in Renminbi Yuan)
    Note                        2011                    2010
    RMB’000                RMB’000
    Non-current liabilities
    Loans and borrowings                         22                     26,822,359               30,611,644
    Deferred tax liabilities                    25(c)                    1,104,762                1,086,104
    Provisions                                   26                         38,678                   41,107
    Other non-current liabilities                27                         11,798                    8,816
    27,977,597            31,747,671
    --------------------- ---------------------
    NET ASSETS                                                          67,832,539            54,586,200
    CAPITAL AND RESERVES                          29
    Share capital                                                       10,995,210               10,995,210
    Reserves                                                            41,972,585               33,237,467
    Total equity attributable to equity
    shareholders of the Company                                       52,967,795               44,232,677
    Non-controlling interests                                           14,864,744               10,353,523
    TOTAL EQUITY                                                        67,832,539               54,586,200
    Approved and authorised for issue by the board of directors on 9 March 2012.
    )
    )
    )         Directors
    )
    )
    The accompanying notes form part of these financial statements.
    Page 73
    China Vanke Co., Ltd.
    Financial statements for the year ended 31 December 2011
    Consolidated statement of changes in equity
    Year ended 31 December 2011
    (Expressed in Renminbi Yuan)
    Attributable to equity shareholders of the Company
    Share-based                                                                                                       Non-
    Share            Share compensation       Statutory    Exchange          Other    Retained                                          controlling
    Note            capital        premium       reserve        reserves       reserve      reserves     profits                           Total           interests     Total equity
    RMB’000        RMB’000     RMB’000       RMB’000 RMB’000 RMB’000              RMB’000                          RMB’000          RMB’000        RMB’000
    Balance at 1 January 2010                           10,995,210         8,789,676                  -      8,737,841         276,721       (231,959)          8,808,399      37,375,888         8,032,625       45,408,513
    Changes in equity for 2010:
    Profit for the year                                           -                -                -                -             -               -          7,283,128       7,283,128         1,556,483         8,839,611
    Other comprehensive income             10                     -                -                -                -       113,411       (106,834)                  -           6,577                 -             6,577
    Total comprehensive income                                        -              -                -                 -     113,411       (106,834)          7,283,128         7,289,705         1,556,483        8,846,188
    ---------------- ---------------- --------------- ----------------- --------------- --------------- ----------------- ----------------- ---------------- -----------------
    Dividends approved in respect of
    the previous year                     29(c)                   -                -                -              -                 -            -           (769,665)       (769,665)                   -       (769,665)
    Appropriation to statutory reserves     29(b)                   -                -                -      1,849,865                 -            -         (1,849,865)               -                   -               -
    Equity settled share-based transactions                         -                -                -              -                 -      468,728             (1,712)         467,016                   -         467,016
    Capital contribution from
    non-controlling interests                                     -                -                -                 -              -               -                 -                -         900,024           900,024
    Acquisitions of subsidiaries                                    -                -                -                 -              -               -                 -                -       1,504,670         1,504,670
    Acquisitions of additional interest
    in subsidiaries                                               -                -                -                -               -     (130,267)                   -      (130,267)         (305,718)         (435,985)
    Disposals of subsidiaries                                       -                -                -                -               -             -                   -              -         (318,921)         (318,921)
    Dividends declared to non-controlling interests                 -                -                -                -               -             -                   -              -       (1,022,809)       (1,022,809)
    Others                                                          -                -                -                -               -             -                   -              -             7,169             7,169
    Balance at 31 December 2010                         10,995,210         8,789,676                  -     10,587,706         390,132            (332)        13,470,285      44,232,677       10,353,523        54,586,200
    The accompanying notes form part of these financial statements.
    74
    China Vanke Co., Ltd.
    Financial statements for the year ended 31 December 2011
    Consolidated statement of changes in equity (continued)
    Year ended 31 December 2011
    (Expressed in Renminbi Yuan)
    Attributable to equity shareholders of the Company
    Share-based                                                                                                       Non-
    Share            Share compensation        Statutory    Exchange          Other    Retained                                         controlling
    Note            capital        premium       reserve         reserves       reserve      reserves     profits                          Total           interests     Total equity
    RMB’000        RMB’000     RMB’000        RMB’000 RMB’000 RMB’000              RMB’000                         RMB’000          RMB’000        RMB’000
    Balance at 1 January 2011                           10,995,210        8,789,676                   -     10,587,706         390,132            (332)        13,470,285      44,232,677       10,353,523        54,586,200
    Changes in equity for 2011:
    Profit for the year                                           -                -                -                -             -               -          9,624,875       9,624,875         1,974,731       11,599,606
    Other comprehensive income             10                     -                -                -                -       155,644          27,373                  -         183,017                 -          183,017
    Total comprehensive income                                        -              -               -                  -     155,644           27,373         9,624,875         9,807,892         1,974,731      11,782,623
    ---------------- ---------------- --------------- ----------------- --------------- --------------- ----------------- ----------------- ---------------- -----------------
    Dividends approved in respect of
    the previous year                    29(c)                    -                -             -                 -                 -               -      (1,099,521)     (1,099,521)                   -     (1,099,521)
    Appropriation to statutory reserves    29(b)                    -                -             -         3,061,021                 -               -      (3,061,021)               -                   -               -
    Equity settled share-based transactions 28                      -                -       106,236                 -                 -               -                -         106,236                   -         106,236
    Capital contribution from
    non-controlling interests                                     -                -                -                 -              -               -                 -                -       3,904,944         3,904,944
    Acquisitions of subsidiaries                                    -                -                -                 -              -               -                 -                -          68,806            68,806
    Acquisitions of additional interest
    in subsidiaries                                               -                -                -                -               -      (79,489)                   -        (79,489)        (405,068)         (484,557)
    Disposals of subsidiaries                                       -                -                -                -               -             -                   -               -        (102,688)         (102,688)
    Dividends declared to non-controlling interests                 -                -                -                -               -             -                   -               -        (898,844)         (898,844)
    Others                                                          -                -                -                -               -             -                   -               -         (30,660)          (30,660)
    Balance at 31 December 2011                         10,995,210        8,789,676          106,236        13,648,727         545,776        (52,448)         18,934,618      52,967,795       14,864,744        67,832,539
    75
    China Vanke Co., Ltd.
    Financial statements for the year ended 31 December 2011
    Consolidated cash flow statement
    for the year ended 31 December 2011
    (Expressed in Renminbi Yuan)
    Note                  2011                    2010
    RMB’000                RMB’000
    Operating activities
    Cash received from customers                                       103,648,873               88,119,694
    Cash generated from other operating activities                       6,894,668                2,976,047
    Cash paid to suppliers                                             (84,918,244)             (66,645,895)
    Cash paid to and for employees                                      (2,480,848)              (1,848,828)
    Cash paid for other taxes                                           (4,979,856)              (4,557,885)
    Cash used in other operating activities                             (5,056,898)             (10,982,177)
    Cash generated from operations                                      13,107,695                7,060,956
    PRC Corporate Income Tax (“CIT”) paid                        &e