金融界首页>行情中心>万科A>个股公告> 正文

-

-
(-%)
当前价  
当前价  
当前价  

个股公告正文

万 科B:2013年半年度报告(英文版)

日期:2013-08-07附件下载

                                   China Vanke Co., Ltd.
                                    2013 Interim Report
                          (For the six months ended 30 June 2013)Important Notice:The Board of Directors, the Supervisory Committee and the Directors, members of the SupervisoryCommittee and senior management of the Company warrant that in respect of the information contained inthis report, there are no misrepresentations or misleading statements, or material omission, andindividually and collectively accept full responsibility for the authenticity, accuracy and completeness ofthe information contained in this report.Chairman Wang Shi, Director Yu Liang, Director Sun Jianyi, Director Xiao Li, Director Wei Bin, DirectorChen Yin, Independent Director Qi Daqing, Independent Director Zhang Liping, Independent DirectorHua Sheng and Independent Director Elizabeth Law attended the board meeting in person. Director QiaoShibo was not able to attend the board meeting in person due to his business engagemens and hadauthorised Director Wei Bin to represent him and vote on behalf of him at the board meeting.The Company will not carry out profit appropriation or transfer of capital surplus reserve to share capitalfor the interim period of 2013.The Company’s interim financial report has not been audited.Chairman Wang Shi, Director and President Yu Liang, and Executive Vice President and Supervisor ofFinance Wang Wenjin declare that the financial report contained in the interim report is warranted to betrue and complete.
    Basic Corporate Information    ……………………………………………………………………….…2Major Financial Data and Guidance…………………………………………………………………...3
    Directors’ Report …………………………………………………………………              …….……………3Significant Events…...……………………………………………………………………………..…..12Change in Share Capital and Shareholdings of Major Shareholders ..…………………………………21Directors, Members of Supervisory Committee, Senior Management ………………..…………….…23Financial Report (Unaudited) …..………………………………………………………………………24I. Basic Corporate Information
    1.   Company Name (Chinese): 万科企业股份有限公司 (“万科”)
    Company Name (English): CHINA VANKE CO., LTD. (“VANKE”)
    2.   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
    Website: www.vanke.com
    E-mail address: IR@vanke.com
    3.   Legal representative: Wang Shi
    4.   Secretary of the Board: Tan Huajie
    E-mail address: IR@vanke.com
    Securities Affairs Representative: Liang Jie
    E-mail address: IR@vanke.com
    Contact Address: Vanke Center, No. 33 Huanmei Road, Dameisha, Yantian District, Shenzhen, the
    People’s Republic of China
    Telephone number: 0755-25606666
    Fax number: 0755-25531696
    5.   Media for disclosure of information: “China Securities Journal”, “Securities Times”, “Shanghai
    Securities News”, “Securities Daily” and an English media in Hong Kong.
    Website for publication of the interim report: www.cninfo.com.cn
    Location where this interim report is available for inspection: The Office of the Company’s Board of
    Directors
    6.   Stock exchange on which the Company’s shares are listed: Shenzhen Stock Exchange
    Stock short names and stock codes:
    Vanke A, 000002
    Vanke B, 200002
    08 Vanke G1, 112005
    08 Vanke G2, 112006II. Major Financial Data and Guidance(1) Major Financial Guidance
                                                                                                Unit: RMB’000
       Financial Indicators                  Jan.-Jun. 2013           Jan.-Jun. 2012           Change(+/-)
    Revenue                                               38,940,809               28,959,560                  34.5%
    Profit from operating activities                       9,071,539                 7,928,844                 14.4%Share of profits less losses of
    associates and jointly controlled                        387,629                  422,520                  -8.3%entities
    Profit before income taxation                          8,780,564                 7,562,983                 16.1%
    Income tax                                            (3,444,673)              (3,027,505)                 13.8%
    Profit for the period                                  5,335,891                 4,535,478                 17.6%
    Profit attributed to minority                          (779,586)                 (810,393)                 -3.8%Profit attributable to equity
                                                       4,556,305                 3,725,085                 22.3%shareholders of the Company
    Basic earnings per share                                      0.41                     0.34                20.6%
    Diluted earnings per share                                    0.41                     0.34                20.6%
    (2) Impact of      IFRS Adjustments on Net Profit
                                                                                                    Unit: RMB’000
                                                                     Net profit attributable to equity shareholders
                                    Items
                                                                                     of the Company
    As determined pursuant to PRC accounting standards                                                        4,556,305
    As restated in conformity with IFRS                                                                       4,556,305III. Directors’ Report1. Management Discussion and AnalysisChanges in market environment and the Company’s perspectiveDuring the reporting period, commodity housing transactions across China showed significant reboundfrom that of the first quarter of last year, when the market was in a slump. However, monthly growth ratedeclined slightly since April. The sales area of commodity housing in China increased by 41.2% and 23.8%year-on-year in the first and second quarters respectively.The area of commodity housing sold in the 14 cities (Beijing, Shanghai, Shenzhen, Guangzhou, Tianjin,Shenyang, Hangzhou, Nanjing, Chengdu, Wuhan, Dongguan, Foshan, Wuxi and Suzhou) surgedsignificantly by 65.5% year-on-year in the first quarter, but declined by 0.01% in the second quarter whencompared to that of the same period last year. The sharp contrast in performance between the first andsecond quarters was due to: on the one hand, sales area in major cities started to increase tremendouslysince March last year, resulting in a relatively large comparative figure for the second quarter; on the otherhand, market transactions in the second quarter of 2013 began to slow down, with feverish sales graduallycame to an end.The approved pre-sales area of commodity housing in the 14 cities in the first half of the year increased by16.2% year-on-year. When compared with the first quarter, the approved pre-sales area leaped byapproximately 69% in the second quarter. Accelerated launch of new housing units in the second quarterhad ended the shortage in supply at the beginning of the year. The sales area of commodity housing in the14 cities was 1.43 times of the approved pre-sales area of new housing in the first quarter and 0.90 times ofthe approved pre-sales area of new housing in the second quarter. On the whole, the ratio of sales area ofcommodity housing to approved pre-sales area of new housing in the 14 cities in the first half of the yearwas approximately 1.10, reflecting a relative balance in supply and demand. As at the end of June, the areaof new housing inventory in the aforementioned cities (the area of commodity housing that had beengranted sales permit but had not been sold) fell slightly from 116 million sq m at the end of 2012 to 112million sq m. The duration for the market to absorb housing inventory (based on the moving average salesarea in the last three months) was approximately 10.4 months, which was basically the same as that at thebeginning of the year and continued to remain at a relatively reasonable level.As sales improved over that of the same period last year, the amount of housing commencing constructionworks ceased to decline. The floor area of residential properties commenced construction across China in2012 dropped by 11.2% year-on-year; the amount rose by 2.9% year-on-year in the first half of 2013.However, the growth in floor area commencing construction was relatively small. It remains to be seenwhether the amount could return to the 2011 level in the second half of the year.Increase in land supply and enterprises’ need to replenish their land bank in the second half of 2012 led to agradual recovery in land sales. Entering 2013, robust sales in the residential property market furtherboosted enterprises’ confidence in investment. In the first half of 2013, site area supplied and sold in 16cities including Shenzhen, Guangzhou, Dongguan, Foshan, Shanghai, Hangzhou, Nanjing, Suzhou,Ningbo, Beijing, Tianjin, Shenyang, Dalian, Wuhan, Chengdu, Chongqing increased by 30.4% and 29.5%year-on-year respectively. As enterprises intensified their investment in first- and second-tier cities, whichsaw relatively satisfactory residential property sales, competition for land in these cities became ferocious.Average price premium continued to rise, and the land markets in certain cities showed signs of overheat.Judging from the current supply-demand condition of the residential property market, and the relativelyreasonable duration for the market to absorb housing inventory, the market is poised for steadydevelopment with no solid ground for over-optimistic expectations of land price. Moreover, basing onprevious experience, the amount of land supply in the second half of the year will generally be more thanthat of the first half. With the increase in land supply in the second half of the year, in particular in thefourth quarter, the market is expected to become more rational.With the resumption of new housing construction and increase in land supply, investment in residentialproperty development in China completed between January and June increased by 20.8% year-on-year,representing an increase of 8.8 percentage points when compared with that of the same period last year.Operation and management of the CompanyDuring the reporting period, the Company actively boosted its sales by committing to target at end usersand adhering to its product positioning with a focus on small and mid-sized ordinary commodity housing.In the first half of the year, the Company realised an accumulative sales area of 7,164,000 sq m and a salesamount of RMB83.67 billion, representing increases of 18.9% and 33.8% year-on-year respectively.Residential units with an area under 144 sq m accounted for 90% of all the residential properties sold.By geographical segment, the Company realised a sales area of 2,121,000 sq m and a sales amount ofRMB26.54 billion in the Guangshen Region surrounding the Pearl River Delta; a sales area of 1,629,000sq m and a sales amount of RMB22.57 billion in the Shanghai Region surrounding the Yangtze River Delta;a sales area of 2,052,000 sq m and a sales amount of RMB22.77 billion in the Beijing Region surroundingthe Bohai Rim; a sales area of 1,363,000 sq m and a sales amount of RMB11.80 billion in Chengdu Region,which comprises core cities of Central and Western Region.From January to June, the Company realised a booked area of 3,884,000 sq m and booked revenue ofRMB38.22 billion, representing increases of 47.2% and 34.2% year-on-year respectively; the Companyrealised revenue of RMB38.94 billion and a net profit of RMB4.56 billion, representing increases of 34.5%and 22.3% respectively as compared with those of the same period last year.During the first half of the year, the average booked price of the Company’s property business wasRMB9,842 per sq m, representing a year-on-year decrease of 8.8%. The gross profit margin of the propertybusiness was 25.1%, down by 3.0 percentage points from that of the same period last year. The booked netprofit margin dropped by 0.04 percentage points year-on-year to 15.00%. In the first half of the year, theCompany’s diluted return on equity rose by 0.08 percentage point year-on-year to 6.84%.In recent years, the Company has been pursuing qualitative growth, and constantly improving its operatingefficiency to mitigate the effect of declining profit margin and achieve year-on-year growth in return onequity. The Company’s diluted return on equity in 2012 was a record high since 1993. Although there maybe a year-on-year decrease in the booked profit margin in 2013, the Company expects the return on equitywill be maintained at a high level.As at the end of the reporting period, the Company had an area of 16,030,000 sq m sold but not yet booked,which was stated in the consolidated statements as construction had yet to be completed. These unbookedresources had a contract amount of approximately RMB176.6 billion. The area and contract amount were18.3% and 22.9% higher than those at the end of 2012 respectively. This would provide a solid foundationfor realizing future operating results.The Company actively pushed ahead with its inventory clearance, maintaining a reasonable mix of productinventory. As at the end of the reporting period, the Company’s inventories included RMB17.63 billion ofcompleted properties (properties ready for sale), accounting for 5.7% of the total and representing adecrease of 0.6 percentage point from that at the end of 2012.During the first half of the year, the actual floor area commenced construction was 9,190,000 sq m ,representing an increase of 96.3% from those of same period last year, and the actual floor areacommenced construction achieved in the first half of the year represented 55.6% of the full year plan set atthe beginning of the year. The actual floor area completed area was 4,320,000 sq m, representing anincrease of 76.9% from those of same period last year, and the actual completed area achieved in the firsthalf of the year represented 33.5% of the full year plan set at the beginning of the year respectively. It isexpected that the actual floor area to be completed for the full year will meet the respective targets set atthe beginning of the year.During the reporting period, the Company continued its emphasis on securing residential land lots meetingend-user demand in the cities where it had a presence. The Company capitalized on its flexibility incapturing market opportunities to rationally replenish its land bank. In the first half of the year, theCompany acquired 42 development projects, with a site area attributable to Vanke’s equity holding ofapproximately 3,420,000 sq m, corresponding to a planned GFA of approximately 9,250,000 sq m. TheCompany adhered to a prudent investment strategy, and maintained the cost of newly acquired projects inthe first half of the year at reasonable levels with an average land premium of approximately RMB2,735per sq m of floor area. As at the end of the reporting period, the aggregate GFA of the Company’s projectsunder planning attributable to Vanke’s equity holding amounted to 41,230,000 sq m, which could basicallymeet its development needs within the next two to three years. In addition, the Company was also involvedin some other city redevelopment projects at the end of the reporting period. According to the currentplanning, the projects’ GFA attributable to Vanke’s equity holding was approximately 3,030,000 sq m.Owing to increase in receipts in advance, the Company’s gearing ratio rose by 1.3 percentage points to79.6% at the end of the reporting period when compared to that at the end of 2012. However, as receipts inadvance did not constitute any actual debt repayment pressure, the Company’s other liabilities (excludingreceipts in advance) as a percentage of total assets was 42.8%, which slightly declined from 43.8% as atthe end of 2012. As a result of proper land bank replenishment and relatively significant increase in floorarea commenced construction, the cash and cash equivalents held by the Company declined from that atthe beginning of the year to RMB36.25 billion at the end of the reporting period.During the reporting period, three international renowned rating agencies, namely Standard & Poor’s,Moody’s Investors Service and Fitch Ratings assigned the Company long-term corporate credit ratings ofBBB+, Baa2 and BBB+ respectively. The Company’s prudent operation practice and its corporatecredibility established over the years have gained wide recognition among international investors, whichearned the Company more opportunities and better terms for fund raising in the capital market. In March2013, the Company’s overseas subsidiary successfully issued US$800 million bonds, with a 5-year term,which became listed on The Stock Exchange of Hong Kong Limited. During the reporting period, theCompany’s overseas subsidiary also established a medium-term notes programme. The Company’sinternational financing ability has, thus, been further enhanced.During the reporting period, the Company landed on the Hong Kong, US and Singapore markets throughcollaboration with local renowned property developers. The international business ventures are conducivefor widening the Company’s global perspective, strengthening its understanding of overseas maturemarkets, learning from the experience of top-notch overseas counterparts, thereby enhancing theCompany’s expertise and scientific management, as well as consolidating its leading position in China.During the reporting period, the proposal for the change of listing location of the Company’s domesticallylisted foreign shares for listing and trading on the main board of The Stock Exchange of Hong KongLimited by way of introduction was approved at the Company’s 2013 first extraordinary general meeting.Application of the proposal is being processed by China Securities Regulatory Commission and The StockExchange of Hong Kong Limited respectively. The Company will continue to actively push forward theproposal.2. Operation of the Company(1) The scope and operations of the Company’s core businessesThe Company specialises in property development with commodity housing as its major products. Duringthe reporting period, the Company’s sales area and sales amount were 7,164,000 sq m and RMB83.67billion respectively, representing increases of 18.9% and 33.8% respectively when compared with those ofthe same period last year. The Company realized booked area and booked revenue of property projects of3,884,000 sq m and RMB38.22 billion respectively, representing year-on-year increases of 47.2% and 34.2%respectively.Due to variation in the completion schedule of different projects, the completed area from January to Junewas 4,320,000 sq m, representing 33.5% of the planned area of 12,900,000 sq m to be completed for 2013.It is expected that more projects will be completed and booked in the fourth quarter of 2013.
                                                                                                         Unit RMB ’000
                                  Revenue                         Cost of sales                    Operating profit margin
        Sector
                           Amount           Change        Amount             Change           Value              Change
    1. Core businesses         38,776,957        34.58%       27,431,875           42.47%        24.98%     -2.87 percentage pointIncluding: Property
                                                                                                         -2.91 percentage point
       development          38,222,663        34.19%       26,951,830           42.18%        25.15%
       Property
                                                                                                          3.49 percentage point
       management              554,294        67.61%           480,045          61.12%        13.40%
    2.             Other                                                                                     -12.54 percentage poi
    businesses                    163,852        12.72%            69,589          59.93%        57.53%                         nt
    Total                      38,940,809        34.47%       27,501,464           42.51%        25.11%     -2.94 percentage pointNote: Business tax and surcharges had been deducted from the operating profit margin(2) Comparison of major assets & liabilities and key operational guidance
                                                                                                         Unit RMB ’000
                                                                           Change
           Item               30-Jun-13               31-Dec-12                                    Remarks
                                                                            (+/-)
    Total assets                     432,522,617            379,094,856       14.09%        Expansion of scale of operationCash and cash
                                    36,247,513            51,120,224       -29.09%        Increase in prepaid depositsequivalents
                                                                                      Expansion of scale of operation,
    Inventory                        310,226,348            253,622,152       22.32%
                                                                                       increase in acquired projectsCurrent loans and
                                    44,854,390            35,557,359       26.15%           Change in debt structureborrowingsNon-current loans and
                                    29,282,031            36,036,070       -18.74%          Change in debt structureborrowings
    Trade and other                                                                           Increase in inter-company
                                  261,904,686            215,529,570       21.52%
    payables                                                                                    cooperation accounts
                                                                           Change
           Item              Jan-Jun 2013            Jan-Jun 2012                                  Remarks
                                                                            (+/-)
    Revenue                            38,940,809            28,959,560       34.47%           Increase in booked area
    Cost of sales                    (27,501,464)          (19,297,385)      42.51%       Increase in booked area
    Administrative
                                          (1,230,601)          (851,688)      44.49%         Increase in sales area
    expenses
    Profit attributable to
    equity shareholders of                4,582,425           3,624,339      26.43%      Increase in operating profit
    the Company
    (3)The Company’s core business by region
    During the reporting period, the revenue and profit of the Company’s core business – property business by
    region are as follows:
                                                           Revenue
                          Booked area                     from core                      Net profit
                                            Percentage                     Percentage                       Percentage
                            (sq m)                         business                     (RMB’000)
                                                         (RMB’000)
    Guangshen Region          1,288,759        33.18%       13,792,645        36.08%         2,453,392            42.78%
    Shanghai Region            610,502          15.72%      7,617,805         19.93%           843,576            14.71%
    Beijing Region             678,909          17.48%      6,274,479         16.42%           762,572            13.30%
    Chengdu Region            1,305,474        33.62%      10,537,734         27.57%         1,675,616            29.22%
    Total                     3,883,644      100.00%          38,222,663   100.00%             5,735,155        100.00%
    Note. During the reporting period, the cities in which the Company had booked projects included Shenzhen, Guangzhou,
    Dongguan, Foshan, Zhuhai, Zhongshan, Changsha, Xiamen, Fuzhou, Sanya, Huizhou, Qingyuan in Guangshen region;
    Shanghai, Nantong, Hangzhou, Fuyang, Suzhou, Wuxi, Yangzhou, Nanjing, Zhenjiang, Ningbo, Nanchang, Wuhu in
    Shanghai region; Beijing, Tangshan,Tianjin, Shenyang, Anshan, Fushun, Dalian, Changchun, Jilin, Qingdao, Yantai in
    Beijing region, and Chengdu, Chongqing, Wuhan, Xi’an, Guiyang, Kunming in Chengdu region.
    3. 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 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 30 June 2013 are as follows:
                                                                                                     Unit: RMB’000
    Amount of net                                              Total amount of funds used for
                                                  9,936,600                                                         1,430
      proceeds                                                   investment during the yearAmount of proceeds
                                                           0with changed usage
    Percentage of                                                 Accumulated funds used                        9,832,930
    proceeds with                                        0%
    changed usageInvestment projects Is there any Amount of Funds used for Accumulated Progress of Accumulated Does it achieve Change in
                      change in funds planned investment funds used application        realized  estimated     feasibility
                        project     for use  during the year            of funds       income     incomeEverest Town(former Science City
                          No       600,000                   600,000     100%          142,710      Yes            NoH3 Project),GuangzhouThe Paradiso (former
    Jinshazhou                No       800,000                   800,000     100%          669,430      Yes            NoProject), GuangzhouThe Dream Town
    (former Nanzhuang         No       900,000                   900,000     100%          497,930      Yes            NoProject), FoshanZhuhai Hotel Project,
    Xiangzhou                 No          650,000                        650,000         100%        976,980            Yes            NoDistrict, ZhuhaiWest Spring ButterflyGarden (former
                          No          700,000                        700,000         100%       1,813,510           Yes            NoJiangcun Project),HangzhouLiangzhu Project,
    Yuhang District,          No         1,700,000                      1,700,000        100%       1,172,660           Yes            NoHangzhouGolden Town
    Project, Yinzhou          No         1,636,600                      1,636,600        100%        890,070            Yes            NoDistrict, NingboWujiefang Project,
                          No         1,200,000                      1,200,000        100%            -              Yes            NoPudong, ShanghaiJinse Yazhu (former
    Zhonglin Project),        No          700,000                        700,000         100%        273,010            Yes            NoShanghaiAnpin Street Project,
    Baixia District,          No          650,000           1430         546,330         84%             -              Yes            NoNanjingStratford (former
    Huangjiayu Project),      No          400,000                        400,000         100%         50,160            No             NoNanjing
         Total            No         9,936,600         1430        9,832,930        99%         6,486,460                          No
                     (1). The preconstruction of Shanghai Wujiefang was affected by the government’s redirection of roads due to its
                     location within the Expo area. Construction commenced in the first half of 2011 and sales of the project started
                     in May 2012. Nanjing Anpin Street Project was not able to commence construction according to schedule, as the
    Remarks on delay     government was making adjustment to its planning to preserve the city’s heritage. The relevant planning has
    and failure to       now been approved. The overall development plan of the project was adjusted according to progress.
    achieve estimated    (2) Stratford Project in Nanjing was sold out and delivered in 2010. Accumulative net profit margin was 8.51%.income (by project) The project had attained relatively good brand awareness, but the income generated from the project was yet to
                     reach the estimated level stated in the prospectus, while the rate of return 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 than the estimated level stated in the prospectus.Remarks on reasonsand procedures for No changeschanges (by project)Application of the
                     As of 30 June 2013, the Company had applied RMB9,832,930,000 of the proceeds in accordance with thebalance of the
                     prospectus. The amount represented 99.0% of the net proceeds of RMB9,936,600,000. The balance of theproceeds not yet
                     proceeds of RMB103,670,000 will be applied in accordance with the progress of project development.used
    (2) Use of capital not from the capital market
    1. Major equity investment
    (1) During the reporting period, the Company promoted and established 13 new subsidiaries, each with
        registered capital of over RMB30 million, with actual investment completed. The details are as
        follows:
                                                                               Registered       Actual investment
                                                                                  capital        made by Vanke              Scope of
    No.            Newly established companies                 Currency
                                                                               (in original    (after converting to         business
                                                                                currency)             RMB)
            Wenzhou Zhongliang Vanke Property Co.,                                                                          Property
      1     Ltd.                                                RMB         500,000,000.00        60,000,000.00           development
             (温州万科中梁置业有限公司)                                                                                   and operation
                                                                                                                            Property
            Hangzhou Wanzhou Property Co., Ltd. (杭
      2                                                         RMB         450,000,000.00        450,000,000.00          development
            州万洲置业有限公司)                                                                                           and operation
            Qingdao Vanke Real Estate Development &                                                                         Property
      3     Construction Co., Ltd.                              RMB         430,000,000.00        219,300,000.00          development
             (青岛万科房地产开发建设有限公司)                                                                             and operation
    Qindao Vanke Yinshengtai Property Co.,                                                    Property
    4   Ltd.                                        RMB    380,000,000.00    265,827,848.53     development
    (青岛万科银盛泰置业有限公司)                                                            and operation
                                                                                               Property
    Beijing Wuhe Vanke Real Estate Co., Ltd.
    5                                               RMB    250,000,000.00    34,500,000.00      development
    (北京五和万科房地产开发有限公司)
                                                                                             and operation
                                                                                               Property
    Nanjing Vanke Real Estate Co., Ltd.
    6                                               RMB    200,000,000.00    200,000,000.00     development
    (南宁市万科城房地产有限公司)
                                                                                             and operation
                                                                                               Property
    7   Nanjing Wanrong Real Estate Co., Ltd. (南
                                                 RMB    200,000,000.00    200,000,000.00     development
    宁市万荣房地产有限公司)                                                                 and operation
                                                                                               Property
    8   Hangzhou Wanjue Property Co., Ltd.
                                                 RMB    200,000,000.00    200,000,000.00     development
    (杭州万爵置业有限公司)
                                                                                             and operation
                                                                                               Property
    9   Ningbo Wanjiang Property Co., Ltd.
                                                 USD    134,000,000.00    491,075,000.00     development
    (宁波万江置业有限公司)
                                                                                             and operation
    Quanzhou Vanke Beifengfang Real Estate                                                    Property10
    Co., Ltd.                                   RMB    120,000,000.00    72,000,000.00      development
    (泉州市万科北峰房地产有限公司)                                                          and operation
    Zhengzhou Vanke Meijing Real Estate                                                       Property
    11   Development Co., Ltd.                       RMB    100,000,000.00    51,000,000.00      development
    (郑州万科美景房地产开发有限责任公司)                                                    and operation
                                                                                               Property
    12   Suzhou Wanjiang Real Estate Co., Ltd. (苏
                                                 RMB     50,000,000.00    50,000,000.00      development
    州万江房地产有限公司)                                                                   and operation
    QingdaoVanke Yinshengtai Investment Co.,                                                  Property
    13   Ltd.                                        RMB     50,000,000.00    35,000,000.00      development
    (青岛万科银盛泰投资有限公司)                                                            and operation
                  Total                                                  2, 328,702,848.53In addition, the Company had also promoted and established another 49 new companies, with a totalinvestment amount of RMB242 million.(2) The major companies that the Company acquired during the reporting period are as follows:A. On 29 March 2013, the Company acquired 100% equity interests in Beijing Kaide Xinming Real EstateDevelopment Co., Ltd. (北京凯德新铭房地产开发有限公司) for a cash consideration of RMB502million.B. On 1 January 2013, the Company acquired 60% equity interests in Shenzhen Shangmo DevelopmentCo., Ltd. (深圳市尚模发展有限公司) for a cash consideration of RMB465 million.C. On 25 January 2013, the Company acquired 80% equity interests in Changsha Vanke Global VillageProperty Co., Ltd. (长沙万科环球村置业有限公司) for a cash consideration of RMB346,930,000.Changsha Vanke Global Village Property Co., Ltd. holds 100% equity interests in Hunan XiangchengyibaiProperty Co., Ltd. (湖南湘诚壹佰置地有限公司) and Changsha Metro Land Property Management Co.,Ltd (长沙京投银泰物业管理有限公司).D. On 1 April 2013, the Company acquired 51% equity interests in Hunan Baihui Investment Co., Ltd. (湖南百汇投资有限公司) for a cash consideration of RMB315,470,000.E. On 8 January 2013, the Company acquired 51% equity interests in Beijing Jingtou Yangguang RealEstate Development Co., Ltd. (北京京投阳光房地产开发有限公司) for a cash consideration ofRMB136,180,000.F. On 21 February 2013, the Company acquired 100% equity interests in Henan Meijingzhizhou PropertyDevelopment Co., Ltd. (河南省美景之州地产开发有限公司) for a cash consideration of RMB100million.
           During the reporting period, the Company acquired another 11 companies for a total consideration of
           RMB286 million.
           (3) During the reporting period, in order to support majority-owned subsidaries’ business development, the
           Company increased the capital of 12 subsidiaries by RMB1,717 million. Of the total amount, RMB281
           million was for Hangzhou Wanhong Property Co., Ltd. (杭州万泓置业有限公司), RMB280 million for
           Vanke Property (Hong Kong) Co., Ltd. (万科置业地产(香港)有限公司), RMB249 million for Chengdu
           Vanke Longjin Property Co., Ltd. (成都万科龙锦置业有限公司), RMB230 million for Nanjing Wanrong
           Property Co., Ltd. (南京万融置业有限公司), RMB230 million for Nanjing East Station Property Co., Ltd.
           (南京站东置业有限公司), RMB174 million for Shanghai Wanrong Property Co., Ltd. (上海万茸置业有
           限公司) and RMB273 million for other subsidiaries
           2. Other investments
           During the reporting period, the Company acquired 42 new projects, with a site area attributable to Vanke’s
           equity holding of approximately 3,420,000 sq m (planned GFA of approximately 9,250,000 sq m). Details
           of the projects are as follows:
                                                                                                         GFA
                                                                                                   attributable to
                                                     Percentage of    Site Area    Planned GFA
    City             Project           Location                                                      Vanke’s equity       Progress
                                                     shareholding      (sq m)         (sq m)
                                                                                                       holding
                                                                                                        (sq m)
    Shenzhen     Bayifu Project          Longgang           100%              28,894         115,040            115,040   Preconstruction
    Dongguan     Qifeng Road Project    Guancheng           100%              53,887        215,547           215,547     Preconstruction
             Hecheng Project,
    Foshan                               Shunde            100%              43,748         153,118           153,118    Preconstruction
             Chencun, Shunde
    Qingyuan     Dream Town              Qingyuan           100%             493,076        986,153           986,153     Preconstruction
             University City
    Fuzhou                               Minhou             51%             213,602        679,836           346,716     Preconstruction
             Project
    Quanzhou     Dream Town               Fengze             60%              46,434        162,516             97,510    Preconstruction
             Chengji Xinyuan
    Changsha                               Yuhua             80%             335,796       1,007,952          806,361     Preconstruction
             Project
    Changsha     Baihui Project            Yuelu             51%             159,393        505,845           257,981     Preconstruction
                                                                                                                               Under
    Shanghai     Dream Town              Minhang            100%             129,571        310,970           310,970
                                                                                                                         construction
             Phase II South
    Nanjing      Railway Station          Yuhuatai           80%              45,022        133,261           106,609     Preconstruction
             Project
             Land Lot J, Huaixi
    Xuzhou                               Quanshan            85%              11,733          22,143            18,822    Preconstruction
             Project
             Haichuangyuan
    Nanchang                              Gaoxin             50%             163,213        350,094           175,047     Preconstruction
             Project
             Xikezhan Project,
    Nanchang     Jiulonghu New           Honggutan           50%              80,120        180,449             90,225    Preconstruction
             District
             Mingzhu Road
    Ningbo                               Gaoxin            100%              48,004        105,815           105,815     Preconstruction
             Project
             Jinyu Zhongyang
             (formerly
    Wenzhou                                Ouhai             60%              53,765        144,939             86,963    Preconstruction
             known as Nanxian
             Huayuan)
    Beijing     Shanglinwan Project     Fangshan            51%              27,528          55,056            28,079    Preconstruction
    Beijing     Park Avenue             Tongzhou            50%              88,767        210,738           105,369     Preconstruction
             Land Lot 09,
    Beijing     Changyang Town,         Fangshan            69%             129,510         211,084          145,648     Preconstruction
             Fangshan
    Beijing     Yufu 77                Dongcheng           100%               4,103          15,130            15,130    Preconstruction
             Tianzhu Joying City
    Beijing                              Shunyi             56%              17,985          31,051            17,389    Preconstruction
             Project
              Land Lot No
    Beijing                                    Tongzhou           50%              61,717        123,434           61,717    Preconstruction
              005,Taihu
              Jiefang South
    Tianjin                                      Hexi             80%              62,205        124,410           99,528    Preconstruction
              Road Project
    Tianjin     Wonderland                   Xiqing               51%             409,701        502,892          256,475    Preconstruction
                                       Fenghuang New
    Tangshan     Ershierye Project                                 48%              88,848        262,552          126,025    Preconstruction
                                            City
              Blue Mountain
    Dalian                                     Ganjingzi         100%             125,100        214,470          214,470    Preconstruction
              Project
              Chenghua East
    Dalian                                     Shahekou          100%              35,757         63,840           63,840    Preconstruction
              Project
                                            Development
    Fushun      The Paradiso                                     100%              73,621        294,484          294,484    Preconstruction
                                              District
    Yantai      Liangjiacun Project              Zhifu            51%             341,943        447,139          228,041    Preconstruction
    Jinan       Dream Town                       Lixia            50%             191,418        478,545          239,273    Preconstruction
              Land Lot B, Jinyu
    Jinan                                       Gaoxin            63%              89,596        291,890          183,891    Preconstruction
              International
              Public Transport
    Taiyuan      Company’s Land                Wanbolin          100%              37,060        177,415          177,415    Preconstruction
              Lot
    Chengdu      Music Park                     Chenghua           60%             152,852        759,036          455,422    Preconstruction
    Chengdu      Golden Paradise                  Xindu           100%             111,166        331,161          331,161    Preconstruction
                                             East Lake
    Wuhan       Chenghua Jingyuan             Development         50%              89,664        410,000          205,000    Preconstruction
                                               Zone
                                             East Lake
    Wuhan       Jiayuan                       Development        100%              67,273        324,100          324,100    Preconstruction
                                               Zone
    Kunming      Glamorous City                  Guandu            55%             417,919      1,724,080          948,244    Preconstruction
    Guiyang      No 5 Park                       Yunyan            70%              10,927        100,906           70,634    Preconstruction
    Chongqing     Panlong Project                Jiulongpo         100%              31,769        142,960          142,960    Preconstruction
              Mei Jing Longmen
    Zhengzhou                                   Guancheng           51%              79,457        353,018          180,039    Preconstruction
              Dragon Hall
              Meiming
    Zhengzhou     Technology                      Gaoxin            51%             130,817        457,863          233,510    Preconstruction
              Industrial Park
              Phase II of King
    Urumqi                                     New District        82%              37,364        130,776          107,236    Preconstruction
              Metropolis
    Urumqi       Rancho Santa Fe                 Sayibak           60%             203,529        203,529          122,117    Preconstruction
                                    Total                                     5,023,851     13,515,236        9,250,072                  —
            From the end of the reporting period to the date of announcement of this report, the Company acquired 14
            new projects, with site area attributable to Vanke’s equity holding of approximately 650,000 sq m,
            corresponding to a planned GFA attributable to Vanke’s equity holding of approximately 1,790,000 sq m.
            Details are as follows:
                                                                                                               GFA
                                                                                                         attributable to
                                                              Percentage of   Site Area   Planned GFA
    City                    Project                 Location                                               Vanke’s equity      Progress
                                                              shareholding     (sq m)        (sq m)
                                                                                                             holding
                                                                                                              (sq m)
             Zhujiang Tunnel, Liwan                                                                                        Preconstruction
    Guangzhou                                          Liwan         100%             7,141         30,706            30,706
             (荔湾珠江隧道口项目)
             Liaobufu Hill Project                                                                                         Preconstruction
    Dongguan                                        Liaobu Town      100%           68,431         150,547           150,547
             (寮步凫山项目)
             Expanded Land Lot 205,                                                                                        Preconstruction
    Changsha      Jingtou Yintai                       Yuhua          80%           10,857          32,672            26,138
             (京投银泰 205 扩容地块)
             Land Lot at the eastern end                                                                                   Preconstruction
                                                Pudong New
    Shanghai     of Zhangjiang High                                  100%           79,548         218,978           197,080
                                                  District
             Technological Park
             (张江高科技园区东侧地
             块)
                                           Economic                                                                     Preconstruction
             Chengnan Road Project
    Jiaxing                                  Development        100%           31,945           67,083            67,083
             (城南路项目)
                                             Zone
             Phase I Minghuang Project                                                                                  Preconstruction
    Changzhou                                    Wujin           100%           93,847         234,618            234,618
             (鸣凰一期项目)
             Land Lot No. 2013-28,                                                                                      Preconstruction
             Huaihai West Road Project
    Xuzhou                                    Quanshan          85%            20,744           76,779            65,262
             (淮海西路项目 2013-28 号
             地)
             Qianjiang New City Projet                                                                                  Preconstruction
    Hangzhou                                    Jianggan         100%           21,915           76,703            76,703
             (钱江新城项目)
             Dream Town East Project                                                                                    Preconstruction
    Ningbo                                     Zhenhai          49%            70,795         127,431             62,441
             (万科城东项目)
             Daxing Core New City                                                                                       Preconstruction
    Beijing       Project                      Daxing           50%            64,323         126,996             63,498
             (大兴核心新城项目)
             Taohuayuan Project                                                                                         Preconstruction
    Qingdao                                   Chengyang         80%           129,032         230,194            184,155
             (桃花源项目)
                                           East Lake                                                                    Preconstruction
             Jincheng
    Wuhan                                    Development        100%           38,290         202,620            202,620
             (锦程)
                                             Zone
    Xian       35 Mu Project, Gaoxin          Gaoxin           100%           23,800         150,000            150,000   Preconstruction
             Vanke Meijing Dream Town                                                                                   Preconstruction
    Zhengzhou                                   Gaoxin           51%           190,319         542,528            276,689
             (万科美景万科城)
                                 Total                                     850,987        2,267,855         1,787,540         —
            Among the abovementioned projects, certain projects may be developed jointly with external partners in
            future. As such, the respective equity interests held by Vanke in the relevant projects may alter. The
            percentage of shareholdings disclosed above is only for periodical reference for investors.
            4. Comparison between the actual operating results during the reporting period and the
            planned targets at the beginning of the period
            The Company’s actual operating results during the reporting period did not deviate much from the planned
            targets at the beginning of the period.
            IV. Significant events
            1. Corporate governance
            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 continues to explore
            ways to raise its corporate governance standard. With a foundation built on sound corporate governance,
            Vanke has established long-standing trust and win-win relationships with its investors.
            During the reporting period, the Company continued to persist in maintaining complete independence from
            its single largest shareholder, China Resources Co., Limited (“CRC”), and its connected companies in
            respect of business operation, staff, assets, organisation and finance, to ensure independence in its business
            integrity and operation autonomy. The Company had not taken any actions that violated the code on
            corporate governance practices such as reporting to CRC on any undisclosed information.
            The Company had strengthened the management of inside information. During the reporting period, no
            insider who had access to inside information had violated the laws to engage in insider trading. The
            Company’s corporate governance did not deviate from the relevant requirements of China Securities
            Regulatory Commission.
            As a key pilot company to implement the Basic Internal Control Norms for Enterprises and its
            implementation guidelines, the Company continued to adopt a pragmatic internal control approach to
            establish the internal control process in a systematic manner. It also continued to promote internal control
            of specialized units according to the monthly theme of internal control, and conducted internal controlinspection and recommended the best internal control practices. Pursuant to the requirements for change oflisting location of the Company’s B shares to The Stock Exchange of Hong Kong Limited (“SEHK”), theCompany will further revise and fine-tune its internal control system with reference to the requirements ofthe rules of SEHK.2. Implementation of the Company’s proposal on dividend distribution for the previousyear and profit appropriation for the interim period of 2013Proposal on dividend distribution for the year 2012 was approved at the 2012 annual general meeting heldon 20 March 2013. The proposal on the dividend distribution was: based on the total share capital as at theclose of the market on the record date of the Company, a cash dividend of RMB1.8 (including tax) wouldbe distributed for every 10 existing shares held. At the time of distribution, a cash dividend of RMB1.71,after deducting a withholding income tax at a 5% rate, was paid for every 10 existing shares beneficiallyheld by individual shareholders of A shares, investment funds of A shares and individual shareholders of Bshares. When a shareholder transfers his/her shares, China Securities Depository and Clearing CorporationLimited will, according to the Notice from the Ministry of Finance, the State Administration of Taxationand China Securities Regulatory Commission Regarding Policies of Implementation of DifferentialIndividual Income Tax on Bonus Shares and Dividends of Listed Companies (Cai Shui [2012] No. 85),withhold the outstanding amount of tax that has not been withheld and paid in accordance with the actualtax amount to be paid by the shareholder, which is calcaluated basing on the holding period of the shares,and such outstanding balance will be paid by the Company on behalf of the shareholder. A cash dividend ofRMB1.62, after deducting a withholding income tax at a 10% rate, was paid for every 10 existing sharesbeneficially held by non-resident enterprise shareholders of A and B shares (including qualified foreigninstitutional investors of A shares).The aforesaid proposal was implemented after the reporting period: the record date for A shares was 15May 2013, and ex-dividend date was 16 May 2013, while the last trading day of B shares was 15 May2013, ex-dividend date was 16 May 2013, and the record date was 20 May 2013. For details on theimplementation of the proposal, please refer to the announcement published in China Securities Journal,Securities Times, Shanghai Securities News, Securities Daily, www.cninfo.com.cn and Hong Kong’swebsite www.irasia.com on 8 May 2013.The Company will not carry out profit appropriation or the transfer of capital surplus reserve to sharecapital for the interim period of 2013.3. Implementation of the A-Share Stock Option Incentive SchemeThe A-Share Stock Option Incentive Scheme (Revised Draft) of China Vanke Co., Ltd. (“Stock OptionIncentive Scheme”) had been approved at the first extraordinary general meeting of the Company in 2011.On 25 April 2011, being the grant date of stock options under the A-Share Stock Option Incentive Scheme,the beneficiaries obtained their stock options.During the reporting period, a total of 18.172 million stock options were exercised by the beneficiaries.Owing to the reasons such as resignation of certain beneficiaries, 1.658 million stock options becameinvalid during the reporting period. As at the end of the reporting period, there were 73.337 million stockoptions that had been granted but yet to be exercised.The Company implemented the proposal on dividend distribution for 2012 on 16 May 2013, anddistributed a cash dividend of RMB1.8 (including tax) to all shareholders for every 10 existing shares held.Pursuant to the approval of the resolution regarding granting the Board the authority to handle mattersrelating to the Company’s Stock Option Incentive Scheme at the first extraordinary general meeting in2011, the Board resolved to make corresponding adjustment of the exercise price of the A-share stockoptions. The adjusted exercise price was RMB8.48.According to the authority granted to the Board at a shareholders meeting, on 19 April 2013, the Boardconsidered and passed the resolution regarding the fulfillment of the vesting conditions of the secondexercise period for A-Share Stock Option Incentive Scheme. In May 2013, the remuneration andnomination committee of the Board voted, via correspondence, and confirmed 640 beneficaries of theScheme had met the conditions for exercising the stock options in the second exercise period. Upon the
    completion of the relevant procedures for approval, the Stock Option Incentive Scheme entered the second
    exercise period on 29 May 2013, and the beneficiaries of the Scheme can, between 29 May 2013 and 24
    April 2015, exercise 30% of the options they hold.
    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 include,
    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 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.
    The Stock Option Incentive Scheme adopts Binomial tree option pricing model to estimate the fair value of
    the stock options on the grant date. According to the straight-line method, the cost of stock options of
    RMB32.577 million amortised by the Company for the first, second and third exercise periods was
    included in the costs and expenses during the reporting period, while the Company’s capital surplus
    reserves increased by RMB32.577 million. Please refer to the notes to the financial statements for details
    on the accounting treatments.
    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.
    For details, please refer to the announcements published on China Securities Journal, Securities Times,
    Shanghai Securities News, Securities Daily, and www.cninfo.com.cn on 23 April 2013, 14 May 2013 and
    29 May 2013.
    4. Material Litigation, Arbitration and Issues of Media Interest
    During the reporting period, the Company did not involve in any material litigation or arbitration, or any
    issues that attract negative media interest.
    5. Major Acquisition and Disposal of Assets
    During the reporting period, the Company did not have any major acquisition or disposal of assets.
    6. Other investments
    6.1 Investment of securities
    □Applicable      √Not applicable
    6.2 Equity interests held in other listed companies
                                                                                                                Unit: RMB
                                                                         Booked                              Changes in equity
                                                                                           Gains/(losses)
                                    Initial                            value as at                            attributable to
    Stock           Stock                             Percentage of                             during the
                                 investment                             the end of                            equity holders
    code         short name                           shareholdings                             reporting
                                   amount                             the reporting                             during the
                                                                                              period
                                                                          period                             reporting period
    600751   Tianjin Marine              143,600.00           0.02%             741,300.00              -           448,275.00
         Shipping Co., Ltd.
           Total                     143,600.00           0.02%              741,300.00             -            448,275.00
    Note: Equity interests held in Tianjin Marine Shipping Co., Ltd are legal person shares held by the Company over the years.
    The company has recently undergone share reform.
    6.3 Shareholding in non-listed financial corporations and companies planning for listing
    Nil7. Major Connected TransactionsOn 11 May 2012, the Company’s 2011 annual general meeting authorised the Board to determine, withinRMB10.59 billion, the continuous cooperation with China Resources (Holdings) Co., Ltd and itsconnected companies (collectively “CRH”), including entering into a loan agreement with ChinaResources Bank of Zhuhai Co., Ltd., using the funds under China Resources SZITIC Trust Co., Ltd. andHarvest Capital Partners Limited, and joint investment with China Resources SZITIC Trust Co., Ltd. andHarvest Capital Partners Limited. The granted authority is valid for a one-year period.During the reporting period, Shanghai Vanke Investment Management Co., Ltd. (“Shanghai VankeInvestment”), a wholly-owned subsidiary of the Company, transferred its 39% equity interests of ShanghaiHongqiao Project No. 11 to Shenzhen Huawei Xincheng No. 1 Partnership Enterprise (limited partnership)(深圳市華威欣城一號投资合伙企业) (“Huawei Xincheng”) to satisfy the development needs ofShanghai Hongqiao Project No. 11. Both parties will jointly develop Shanghai Hongqiao Project No. 11.Harvest Capital Partners Limited and China Resources SZITIC Trust Co., Ltd. respectively hold 51 percent and 49 per cent equity interests in Shenzhen Huawei Yongsheng Management Co., Ltd. (深圳市華威永盛企業管理有限公司), which is a general partner of Huawei Xincheng.On 20 March 2013, the Company’s 2012 annual general meeting authorised the Board to decide on thecontinuous cooperation with CRH. The validty of the granted authority was adjusted to two years, whilethe aggregate authorised amount was adjusted to not more than RMB12.7 billion per year (i.e. not morethan 20% of the Company’s audited net assets value as at the end of 2012). During the reporting period, nonew cooperation within the scope of granted authority had been implemented.The cooperation with CRH will help fully leverage CRH’s financial strengths and platform, which willhelp broaden the Company’s financing channels, strengthen its ability to avert risk and enhance return onassets.8. 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 othercompanies entitled to any entrustment, sub-contracting or leasing arrangements involving assets of theCompany.
    (2) During the reporting period, the Company did not have any financial entrustment.
    (3) Details on the new guarantees made by the Company during the reporting period are as follows:
         Guarantor          Principal of the
        (% of equity       guarantee (% of        Guarantee         Details of the      Guarantee
    No                                                                                                      Remarks
        interest held     equity interest held     Amount            guarantee           Period
         by Vanke )           by Vanke )
                                                                 Provided a guarantee
                          Dongguan Xinwan                        for a bank loan of     From 11
       Shenzhen Vanke
                          Real Estate             RMB25.5        RMB50 million in       January 2013
    1      Real Estate Co.,
                          Development Co., Ltd.   million        proportion to the      to 11 January
       Ltd. (100%)
                          (51%)                                  Company’s equity      2015
                                                                 holding
                                                                 Provided a guarantee
       Guangzhou                                                 for a bank loan of     From 16
                          Guangzhou Wanshang
       Vanke Real                                 RMB11.22       RMB34 million in       January 2013
    2                         Real Estate Co., Ltd.
       Estate Co., Ltd.                           million        proportion to the      to 5 December
                          (33%)
       (100%)                                                    Company’s equity      2015
                                                                 holding
                      Ningbo Zhongwan
                      Property Co., Ltd.                     Provided a guarantee
    Ningbo Vanke
                      (49% held by Vanke,                    for a bank loan of      From 25
    Real Estate
                      15% of which were       RMB375,00      RMB2.5 million in       January 2013
    3    Development
                      held through Ningbo     0              proportion to the       to 5 December
    Co., Ltd.
                      Vanke Real Estate                      Company’s equity       2014
    (100%)
                      Development Co.,                       holding
                      Ltd.)
                                                             Provided a guarantee
                      Beijing Zhuzong
    Beijing Vanke                                           for a loan of RMB1      From 17 May
                      Vanke Real Estate       RMB500
    4    Company                                                 billion in proportion   2013 to 17
                      Development Co., Ltd.   million
    Limited (100%)                                          to the Company’s       May 2016
                      (50%)
                                                             equity holding
                                                                                                     Continue the
                                                             Provided a guarantee    From 30         guarantee
                      Beijing Kaide
    Beijing Vanke                                           for a loan of RMB207    September       obligations
                      XinmingReal Estate      RMB207mil
    5    Company                                                 million in proportion   2011 to 30      undertaken by
                      Development Co., Ltd.   lion
    Limited (100%)                                          to the Company’s       September       the original
                      (100%)                                 equity holding          2013            shareholder of
                                                                                                     the principal
    Vanke Real                                              Provided a guarantee    From 13
                      Bestgain Real Estate
    Estate (Hong                             US$905         for the principle and   March 2013 to
    6    Kong) Company
                      (Hong Kong) Limited
                                              million        interest of US$800      13 March
                      (100%)
    Limited (100%)                                          million                 2018
                                                                                     From 28
    Vanke Property                                          Provided a guarantee
                      WK Property Financial   HK$300                                 March 2013 to
    7    (Overseas)
                      Limited (75%)           million
                                                             for a bank loan of
                                                                                     28 December
    Limited (75%)                                           HK$300 million
                                                                                     2015
                                                                                     From 16 April
                                                                                     2013 to
    Vanke Property                                                                  withdrawal
                      Wkdeveloper Sig I                      Provided a guarantee
    (Hong Kong)                              SGD135.51                              from the
    8    Company
                      Private Limited
                                              million
                                                             for a bank loan of
                                                                                     project or
                      (100%)                                 SGD135.51 million
    Limited (100%)                                                                  settlement
                                                                                     date of the
                                                                                     projectDuring the reporting period, the amount of new guarantees provided by the Company and itsmajority-owned subsidiaries was RMB7,232 million, and the amount of guarantees discharged wasRMB5,666 million. There was a slight change in the outstanding amount of guarantees at the beginning ofthe reporting period due to changes in exchange rates. As at the end of the reporting period, the outstandingamount of guarantees provided by the Company was RMB12,681 million, accounting for 19.87% of theaudited equity attributable to shareholders of the Company as at the end of 2012. The outstanding amountof guarantees provided by the Company and its majority-owned subsidiaries for other majority-ownedsubsidiaries was RMB12,355 million; the outstanding amount of guarantees provided by the Company andits majority-owned subsidiaries for associates and joint venture companies was RMB326 million. TheCompany and its majority-owned subsidiaries did not have any external guarantees.The Company did not provide guarantee for shareholders, beneficial controller and its connected parties,nor did it have any overdue guarantees or guarantees involving litigation.9. Specific elaboration and independent opinions of the independent directors on the useof capital and external guarantees by connected partiesThere had been no non-operational use of capital by the controlling shareholder or other connected partiesof the Company.During the reporting period, the Company, in strict compliance with the related rules, regulated its externalguarantee 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
            determining the provision of guarantees are legal and reasonable, without prejudice to the interests of the
            Company and its shareholders.
            10. Undertakings
            China Resources National Corporation (“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 horizontal 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.
            11.     Details on the Company’s investor meetings
                                                                                                                       Issues
                                                                                                                       discussed
    Type of meeting     Date       Location              Approach         Types of investors
                                                                                                                       and information
                                                                                                                       provided
    BNP                                                  Face to face     Investors including securities companies,        (I) Major issues
                    2013.1     Hong Kong
    meeting                                              meeting          funds, etc                                       discussed:
    Nomura                                                                                                                 (1) The
                                                     Face to face     Investors including securities companies,        Company’s
    Securities          2013.1     Hong Kong
                                                     meeting          funds, etc                                       dailymeeting
    Credit     Suisse                                    Face to   face   Investors including securities companies,        operations;
                    2013.1     Hong Kong                                                                               (2)The
    meeting                                              meeting          funds, etc
                                                     Face to   face   Investors including securities companies,        Company’s
    Barclays meeting    2013.1     Hong Kong                                                                               development
                                                     meeting          funds, etc
    Guotai  Junan                                        Face to   face   Investors including securities companies,        strategies;
                    2013.1     Shenzhen                                                                                (3)The
    meeting                                              meeting          funds, etc
    CLSA Securities                                      Face to   face   Investors including securities companies,        Company’s
                    2013.1     Hong Kong                                                                               opinion on the
    meeting                                              meeting          funds, etc
                                                                                                                       changes in the
                               Hong         Kong,    Face to   face
    Annual results                                                        Investors including securities companies,        industry.
                    2013.2     Shenzhen (Shanghai,   meeting
    presentation                                                          funds, individual investors, etc                 (II) Major
                               Beijing)
                                                                                                                       information
    CLSA Securities                                      Face to face     Investors including securities companies,
                    2013.2     Hong Kong                                                                               provided:
    meeting                                              meeting          funds, etc
                                                                                                                       Published
    Credit     Suisse                                    Face to face                                                      information
                                                                      Investors including securities companies,
    Securities          2013.3     Hong Kong             meeting                                                           including the
                                                                      funds, etc
    meeting                                                                                                                Company’s
    JP        Morgan                                     Face to   face   Investors including securities companies,        regular reports.
                    2013.3     Hong Kong
    meeting                                              meeting          funds, etc
    CLSA Securities                                      Face to   face   Investors including securities companies,
                    2013.3     Hong Kong
    meeting                                              meeting          funds, etc
                                                     Face to   face   Investors including securities companies,
    Barclays meeting    2013.3     Hong Kong
                                                     meeting          funds, etc
    Credit     Suisse                                    Face to   face
                                                                      Investors including securities companies,
    Securities          2013.3     Hong Kong             meeting
                                                                      funds, etcmeeting
    Shenyin Wanguo                                       Face to   face   Investors including securities companies,
                    2013.3     Shenzhen
    meeting                                              meeting          funds, etc
                                                     Face to   face   Investors including securities companies,
    CICC meeting        2013.4     Beijing
                                                     meeting          funds, etc
    DBS     Vickers                                      Face to   face   Investors including securities companies,
                    2013.4     Hong Kong
    meeting                                              meeting          funds, etc
                                                     Face to   face   Investors including securities companies,
    HSBC meeting        2013.4     Hong Kong
                                                     meeting          funds, etc
                                                     Face to   face   Investors including securities companies,
    UBS meeting         2013.4     Hong Kong
                                                     meeting          funds, etc
    Macquarie                                             Face to   face   Investors including securities companies,
                    2013.5      Hong Kong
    meeting                                               meeting          funds, etc
    CLSA Securities                                       Face to   face   Investors including securities companies,
                    2013.5      Beijing
    meeting                                               meeting          funds, etc
    Morgan Stanley                                        Face to   face   Investors including securities companies,
                    2013.5      Hong Kong
    meeting                                               meeting          funds, etc
    China Securities                                      Face to   face   Investors including securities companies,
                    2013.5      Zhengzhou
    meeting                                               meeting          funds, etcKorea
    Investment     &                                      Face to face     Investors including securities companies,
                    2013.5      Beijing
    Securities                                            meeting          funds, etcmeeting
    Orient Securities                                     Face to   face   Investors including securities companies,
                    2013.5      Shanghai
    meeting                                               meeting          funds, etc
    Shenyin Wanguo                                        Face to   face   Investors including securities companies,
                    2013.5      Xiamen
    meeting                                               meeting          funds, etc
                                                      Face to   face   Investors including securities companies,
    Barclays meeting    2013.5      Hong Kong
                                                      meeting          funds, etc
    Guotai    Junan                                       Face to   face   Investors including securities companies,
                    2013.5      Shanghai
    meeting                                               meeting          funds, etc
    JP Morgan                                             Face to   face   Investors including securities companies,
                    2013.6      Beijing
    meeting                                               meeting          funds, etc
                                                      Face to   face   Investors including securities companies,
    Guosen meeting      2013.6      Beijing
                                                      meeting          funds, etc
    CLSA Securities                                       Face to   face   Investors including securities companies,
                    2013.6      Hong Kong
    meeting                                               meeting          funds, etcChina Merchants
                                                      Face to face     Investors including securities companies,
    Securities          2013.6      Shenzhen
                                                      meeting          funds, etcmeeting
                                                      Face to face     Investors including securities companies,
    CICC meeting        2013.6      Shenzhen
                                                      meeting          funds, etc
    Shenyin Wenguo                                        Face to face     Investors including securities companies,
                  2013.6        Hong Kong
    meeting                                               meeting          funds, etc
    Huatai Securities                                     Face to face     Investors including securities companies,
                  2013.6        Nanjing
    meeting                                               meeting          funds, etcHaitong
                                                        Face to face Investors including securities companies,
    Securities        2013.6        Dalian
                                                        meeting      funds, etcmeeting
    Citigroup                                               Face to face Investors including securities companies,
                  2013.6        Hong Kong
    meeting                                                 meeting      funds, etcNote: The above-mentioned meetings included one-on-one meetings, small group meetings and large group presentation. TheCompany received or met with investors from over 50 companies.
                                Shenzhen,                            Citigroup, Shenyin Wanguo, Guotai Junan, CITIC
                                Dongguan,                            Securities, Mizuho Securities, UBS Securities, JP
                                Guangzhou, Foshan,                   Morgan, Deutsche Bank, Morgan Stanley, Naito
                                Sanya,        Fuzhou,                Securities, CITIC Construction Securities, Dongxing
                                Xiamen, Changsha,                    Securities, Nomura Securities, CICC, Barclays,
                                Shanghai,     Jiading,               Goldman Sachs Gaohua , Guosen Securities, CLSA,
                                Suzhou,      Nanjing,                HSBC, Shanghai Securities, Galaxy Securities, Credit
                  During        Hangzhou,       Hefei,               Suisse Securities, GF Securities, Goldman Sachs,
                                                        Small group
    Securities        the           Ningbo, Wenzhou,                     Standard Chartered Bank, Macquarie, BOCI,
                                                        or
    companies         reporting     Beijing, Tangshan,                   Everbright Securities, Changjiang Securities, BNP,
                                                        one-on-one
                  period        Tianjin, Shenyang,                   Jefferies, DBS Vickers (HK) Ltd, Kim Eng etc.
                                Changchun, Dalian,
                                Anshan,      Qingdao,
                                Jinan,       Taiyuan,
                                Wuhan,      Chengdu,
                                Chongqing,      Xi'an,
                                Guiyang, Kunming,
                                Zhengzhou, etc.
                                                                    Ping An Asset, Orient Securities Asset Management,
                                                                    Boshi Fund, Southern Fund, Rongtong Fund
                                                                    Management, China Int’l Fund, GF Fund Management,
                                                                    E Fund, China Universal Asset Management (HK) Co.,
                                                                    Ltd, WanJia Asset, Taikang Asset, China AMC, Harvest
                                                                    Fund, Dacheng Fund, ICBC Credit Suisse Asset, China
                                                                    Life, Invesco Great Wall Fund, Yinhua Fund, Fortis
                                                                    Haitong Fund, Hua An Fund, China Universal Asset
                                                                    Management, Penghua Fund, Huatai-PineBridge
                                                                    Investments, Shenyin Wenguo Paris Fund, UBS SDIC
                                                                    Fund, , Argyle Street Management,Fidelity,Dodge &
                                                                    Cox,Matthews International Capital Management,BEA
                                                                    Union,Templeton,RCM Asia Pacific Limited,Myriad
                                                                    Asset Management,Capital Research,Franklin
                                                                    Templeton Investments (Asia) Limited,Goldman Sachs
                                                                    Asset Management International,Keywise Capital
                                                                    Management (HK) Limited,Lazard Asset Management
                                                                    LLC,Morgan Stanley Investment Management
                                                                    Inc,Pictet Asset Management
                                                                    SA,PLATINUM,Columbia
                              Shenzhen,                             Management,STICHTING,T Rowe Price,Lion Global
                              Dongguan,                             Investors,Baring Asset Management,Mirae Asset
                              Guangzhou, Foshan,                    Global,SAC Capital,Geosphere,Capital
                              Sanya,      Fuzhou,                   Land,Invesco,Aberdeen,Alliance
                              Xiamen, Changsha,                     Bersntein,ACQ,Wellington Asset mgt,Libra Capital
                              Shanghai,    Jiading,                 Management (HK) Ltd,Zeal Asset,Standard
                              Suzhou,     Nanjing,                  Pacific,Primero Investment Limited,UGFunds and other
                  During      Hangzhou,      Hefei,                 Funds,Chinarock Capital Management,Neuberger
    investment                                            Small group
                  the         Ningbo, Wenzhou,                      Berman,EFMI,Prime Capital,Goldman Sachs Asset
    companies and                                         or
                  reporting   Beijing, Tangshan,                    Management,Value Partners,Seatown,Henderson
    individual                                            one-on-one
                  period      Tianjin, Shenyang,                    Global Investors,JP Morgan Asset,Asuka Corporateinvestors
                              Changchun, Dalian,                    Advisory,BT Investment,CIMB-Principal Asset
                              Anshan,    Qingdao,                   Management Berhad,Ashmore Group,Financiere de l’
                              Jinan,      Taiyuan,                  Echiquier,Emerging Markets,Amundi (HK),Alphinity
                              Wuhan,     Chengdu,                   Investment,Brookside Capital,Comgest,Hillhouse
                              Chongqing,     Xi'an,                 Capital Mgmt Ltd,Sumitomo Mitsui Trust &
                              Guiyang, Kunming,                     Banking,Invesco,Lloyd George Investment
                              Zhengzhou, etc.                       Management,Harvest Global Investments Limited,SFM
                                                                    HK Management,Kynikos
                                                                    Associates,Temasek,Manulife Asset
                                                                    Management,Opportunity Asset
                                                                    Management,Newfoundland Capital Management,SPX
                                                                    Gestao de Recursos,Caisse De Depot Et Placement Du
                                                                    Quebec,JK Capital Management Ltd,Orion Asset
                                                                    Management,Crosby Advisors,Tradewinds Global
                                                                    Investors,Trilogy Global Advisors,AXA Investment
                                                                    Managers UK Ltd,Legal & General Investment Mgt
                                                                    Ltd,Credit Suisse Hedging-Griffo Servicos,Carnegie
                                                                    AM,Engineers Pension Fund,VKR A/S,BI Asset
                                                                    Management Fondsmaeglerselskab,Lundbeck
                                                                    Foundation,GE Asest Management,Hermes Investment
                                                                    Management,Schroders,Harris
                                                                    Associates,Och-Ziff,PSE INVESTMENT,JCP
                                                                    Investment Partners,Future Fund,Victoria
                                                                    1522,American Century,Luminus Management,Lion
                                                                    Global Investors,Colonial First State Asset,APAC
                                                                    Resources Capital,Tiger Management,LBN Investmen
                                                                    etc.
            12. Corporate bonds and related matters
            During the reporting period, 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 AAA
            credit ratings to the Company’s secured corporate bonds “08 Vanke G1” and non-secured corporate bonds
            “08 Vanke G2” as well as the Company’s overall corporate credit. China Chengxin gave a stable outlook
    rating to the Company. During the reporting period, the Company maintained a good credit standing.
    During the reporting period, the Shenzhen branch of China Construction Bank Corporation, being the
    guarantor of the secured corporate bonds “08 Vanke G1” issued by the Company, had safe assets and stable
    operating results, with no material change in credit standing.
    13. Progress of the change of listing location of the Company’s domestically listed
    foreign shares (“B shares”) for listing and trading on the main board of The Stock
    Exchange of Hong Kong Limited (“SEHK”) by way of introduction
    On 19 January 2013, the Company announced the proposal for the change of listing location of China
    Vanke Co., Ltd.’s domestically listed foreign shares for listing and trading on the main board of The Stock
    Exchange of Hong Kong Limited by way of introduction. The proposal was approved at the Company’s
    2013 first extraordinary general meeting on 4 February. With regard to the application for the proposed
    change, the Company obtained a confirmation letter on 7 February regarding the processing of the
    application for administrative licence issued by China Securities Regulatory Commission. On 15 February,
    the Company received a confirmation letter from the SEHK. After the Company announced its 2012
    annual results on 28 February, the Company submitted additional information including the 2012 annual
    report. The relevant application is currently in progress.
    The change of listing location of the Company’s B shares to the main board of SEHK is conducive to
    enhancing the Company’s international reputation, and enable the Company to leverage overseas resources
    and markets to strengthen its core competitiveness.
    14. Investment in derivatives
                                                          In order to limit the risk associated with the fluctuations of
                                                          interest rate, the Company entered into an interest rate swapRemarks on risk analysis and management of derivative (“IRS”) agreement to hedge floating rate foreign currency loan.positions during the reporting period (including but not The Company would charge the counterparty an interest
                                                          according to a floating rate, in order to pay the floating-rate
    limited to market risk, liquidity risk, credit risk,      interest to the original lender, while paying a fixed rate to the
    operational risk and legal risk, etc.)                    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   The effect of the change in the IRS value on the Company’s
    invested during the reporting period, as well as the      profit and loss during the reporting period amounted to
    method, related assumptions and parameters used to        RMB(29,400). The value of the IRS was determined based onanalyse the fair value of derivatives should be disclosed the fair value assessed on 30 June 2013Remarks on whether there has been a material change inthe accounting policy and accounting measurement
    principles for the Company’s derivatives during the      Nilreporting period as compared with those of the previousreporting period
                                                          The Company’s independent directors are of the view that
                                                          financial instruments such as IRS prevent the possible lossSpecial advice on derivative investment and risk control
                                                          associated with foreign currency loan in the event ofby independent directors, sponsors or financial advisors
                                                          significant fluctuations in interest rate. The relevant
                                                          arrangement of the Company had been prudent and reasonable.
    Derivative positions as at the end of the reporting period
                                                                                              Unit: RMB’000
                                                                                      Contract amount
                                                                                    as a percentage of the
                           Contract amount as Contract amount Profit/loss during
                                                                                      Company’s equity
    Type of contracts     at the beginning of as at the end of the reporting
                                                                                        attributable to
                                the period        the period        period
                                                                                   shareholders as at the
                                                                                 end of the reporting period
    Interest rate swap
                                      2,553,798.7         2,170,577.3               (29.4)                          2.46
    (IRS) agreement
            Total                     2,553,798.7         2,170,577.3               (29.4)                          2.46
         V. Change in Share Capital and Shareholdings of Major Shareholders
         1. Change in Share Capital (as at 30 June 2013)
                                                                                                                     Unit: Share
                                               Before the Change                  Increase /               After the Change
       Class of Share                                      Percentage of           decrease                            Percentage of
                                            Quantity                                (+, -)            Quantity
                                                            shareholding                                               shareholding
       I. Restricted Shares
       1. State-owned and
       State-owned legal person
       shares
       2. Shares held by domestic
       non-State-owned legal
       persons
       3. Shares held by domestic
                                              18,402,673              0.17%          +5,425,588           23,828,261              0.22%
       natural persons
       4. Shares held by foreign
       investors
       Total number of restricted
                                              18,402,673              0.17%          +5,425,588           23,828,261             0.22%
       shares
       II. Non-restricted Shares
       1. RMB-denominated
                                           9,662,194,977             87.87%        +12,746,263         9,674,941,240            87.84%
       ordinary shares (A shares)
       2. Domestic listed foreign
                                           1,314,955,468             11.96%                   0        1,314,955,468            11.94%
       shares (B shares)
       Total number of
                                          10,977,150,445            99.83%         +12,746,263        10,989,896,708            99.78%
       non-restricted shares
       III. Total Number of Shares        10,995,553,118           100.00%         +18,171,851        11,013,724,969          100.00%
         Note: As there were changes in the Company’s senior management staff during 2012, while some of the senior management
         staff exercised A-share stock options during the reporting period, the Shenzhen office of China Securities Depository &
         Clearing Corporation Limited, according to regulations, lifted and imposed trading restrictions on shares held by the related
         senior management staff accordingly. As a result, the number of restricted shares and non-restricted shares of the Company
         changed accordingly.
         2. The shareholdings of the Company’s top 10 shareholders and the shareholdings of the
         top 10 holders of non-restricted shares (as at 30 June 2013)
                                                                                                                     Unit: Share
    Total number of shareholders                       683,703 (including 666,684 holders of A shares and 17,019 holders of B Shares)
                   Shareholdings of the top 10 shareholders
                                       Classification     Percentage of           Total             Change       Number of       Number of
                                       of shareholder     shareholdings        number of              (+/-)       restricted     pledged or
       Name of shareholder                                                     shares held        during the     shares held       lock-up
                                                                                                   reporting                        shares
                                                                                                     period
                                        State-owned
    CRC                                                               14.70%        1,619,094,766                0               0              0
                                         legal personChina Life Insurance CompanyLimited-Dividend
                                            Others                 1.37%          151,360,847      11,977,364                0              0Distribution-PersonalDividend-005L-FH002 Shen
    Liu Yuansheng                               Others                 1.21%          133,791,208                0               0              0China Minsheng Banking Corp. Ltd- Yinhua Shenzhen 100 Index
                                            Others                 1.06%          116,416,601      25,427,209                0              0Classified Securities InvestmentFundBosera Value Growth Securities
                                            Others                 1.01%          111,237,491      19,499,439                0              0Investment FundBank of China - E Fund Shenzhen
    Stock Exchange 100                          Others                 0.97%          106,852,627 -27,157,666                    0              0Exchange-Traded FundHTHK/CMG FSGUFP-CMG
                                           Foreign
    FIRST STATE CHINA GROWTH                                           0.93%          102,472,924       6,251,536                0              0
                                         shareholderFDICBC -Rongtong Shenzhen Stock
    Exchange 100 Index Securities                Others                 0.80%           88,364,818     -14,734,245               0                0Investment FundStaff Committee of China Vanke
                                             Others                 0.61%           67,168,517                0              0                0Co., Ltd.Gao Hua-HSBC-GOLDMAN,
                                             Others                 0.59%           64,779,520      11,971,047               0                0SACHS & CORemarks on strategic investor orordinary legal person becoming top
                                       Nil10 shareholders after placing ofnew shares
                                               Shareholdings of the top 10 holders of non-restricted shares
    Name of shareholder                        Number of non-restricted                                       Class of shares
                                                 shares held
    CRC                                                       1,619,094,766                     Ordinary RMB-denominated shares (A shares)China Life Insurance CompanyLimited-Dividend
                                                              151,360,847                      Ordinary RMB-denominated shares (A shares)Distribution-PersonalDividend-005L-FH002 Shen
    Liu Yuansheng                                                 133,791,208                      Ordinary RMB-denominated shares (A shares)China Minsheng Banking Corp. Ltd- Yinhua Shenzhen 100 Index
                                                              116,416,601                      Ordinary RMB-denominated shares (A shares)Classified Securities InvestmentFundBosera Value Growth Securities
                                                              111,237,491                      Ordinary RMB-denominated shares (A shares)Investment FundBank of China - E Fund Shenzhen
    Stock Exchange 100                                            106,852,627                      Ordinary RMB-denominated shares (A shares)Exchange-Traded FundHTHK/CMG FSGUFP-CMG
    FIRST STATE CHINA GROWTH                                      102,472,924                         Domestic listed foreign shares (B shares)FDICBC-Rongtong Shenzhen Stock
    Exchange 100 Index Securities                                  88,364,818                      Ordinary RMB-denominated shares (A shares)Investment FundStaff Committee of China Vanke
                                                               67,168,517                      Ordinary RMB-denominated shares (A shares)Co., Ltd.Gao Hua-HSBC-GOLDMAN,
                                                               64,779,520                      Ordinary RMB-denominated shares (A shares)SACHS & CO
    Remarks on the connected               It is not known as to whether there are connections or persons deemed to be acting in concert under “the
    relationship or action in concert of   Measures for the Administration of the Takeover of Listed Companies” among the above-mentioned
    the aforementioned shareholders        shareholders.
    Remarks on shareholders involved       Nilin securities margin trading
          3. Bondholdings of the Company’s top 10 bondholders (as at 30 June 2013)
          (1) Name of the top 10 bondholders of 08 Vanke G1 bonds and their bondholdings
           No.                                       Bondholder                                           No. of bonds held
                New China Life Insurance Company-Dividend Distribution-Personal
            1                                                                                                          5,548,262
                Dividend-018L-FH002 Shen
            2 China Petroleum Finance Co., Ltd.                                                                        4,157,662
            3 China Pacific Insurance (Group) Co. Ltd.                                                                 3,433,312
            4 China Life Insurance Company Ltd.                                                                        2,698,727
                China Ping An Property and Casualty Insurance Company Limited – Traditional –
            5                                                                                                          3,085,862
                General Insurance Products
            6 Taiping General Insurance Co., Ltd.                                                                      1,003,216
            7 China Property & Casualty Reinsurance Company Ltd.                                                         776,162
            8 Haitong-BOC-Futong Bank                                                                                    722,532
                China Life Property and Casualty Insurance Company Ltd. – Traditional – General
            9                                                                                                            700,000
                Insurance Products
           10 Postal Savings Bank of China - Penghua Fengze Classification Bond Fund                                     578,104
          Note: 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.                                          Bondholder                                               No. of bonds held
    1      Pacific Asset Management Co., Ltd. - Pacific Prudent Financial Plan One                                   3,514,198
    2      Agricultural Bank of China Limited                                                                        1,427,662
    3      Hongta Securities Co., Ltd.                                                                                 928,000
    4      CNPC Pension Scheme – ICBC                                                                                 888,960
         ICBC Credit Suisse Asset Management Co., Ltd.–ICBC–China Industrial and
    5                                                                                                                777,688
         Commercial Bank of China Limited
    6     Industrial Bank Co., Ltd. - Tianhong Yongli Bond Fund                                                      606,730
         Bank of Communications Schroders Fund Management Co., Ltd. –Bank of
    7                                                                                                                605,228
         Communications–Bank of Communications International Trust Co., Ltd.
    8     CCB-Penghua Fengrun Bond Fund                                                                              599,993
    9     CCB-Penghua Harvest Bond Fund                                                                              563,644
    10     CCB-Huaxia Xinghua Mixed Securities Investment Fund                                                        503,670Note: “CCB-Penghua Fengrun Bond Fund” and “CCB-Penghua Harvest Bond Fund” are managed by Penghua FundManagement Co., Ltd. Apart from the above-mentioned relationships, it is not known as to whether there are otherconnections or persons deemed to be acting in concert under “the Measures for the Administration of the Takeover of ListedCompanies” among the above-mentioned bondholders.4. Change of controlling shareholders and beneficial controllersThere were neither controlling shareholders nor beneficial controllers in the Company, and this situationremained the same during the reporting period.VI. Directors, Members of Supervisory Committee and Senior Management1. Changes in the shareholdings of directors, members of Supervisory Committee andsenior management during the reporting period
                                                                                                               Unit: Share
                                                                                               Number of       Number of
                                          Number of         Number of                         share options share options
                                                                              Number of
                                        shares held at   shares held as at                   exerciseable as exercised as at
       Name            Capacity                                              share options
                                        the beginning     the end of the                      at the date of   the date of
                                                                               granted
                                         of the period        period                         announcement announcement
                                                                                              of the report   of the report
    Wang Shi            Chairman            6,817,201         7,617,201         6,600,000         3,820,000        800,000
    Yu Liang       Director, President     4,106,245         6,306,245         5,500,000        1,650,000         2,200,000
                     Chairman of
    Ding Fuyuan         Supervisory          2,018,408         2,018,408              -               -                 -
                     Committee
    Sun Jianyi           Director            692,236           692,236               -               -                 -
                    Executive Vice
    Ding Changfeng                            1,487,660         2,337,660         2,200,000         690,000           850,000
                      President
                    Executive Vice
    Xie Dong                                1,487,660         1,987,660         2,200,000        1,040,000          500,000
                      President
                    Executive Vice
    Zhang Jiwen                              1,548,950         1,548,950         2,200,000        1,540,000             0
                      President
                    Executive Vice
    Mo Jun                                1,548,950         2,048,950         2,200,000        1,040,000          500,000
                      President
                      Director,
    Xiao Li          Executive Vice        1,446,849         1,946,849         2,200,000        1,040,000          500,000
                      President
                    Executive Vice
    Wang Wenjin                              1,343,591         2,223,591         2,200,000         660,000           880,000
                      President
                    Executive Vice
    Zhou Weijun                              1,038,065         1,583,265         2,000,000         858,000           542,000
                      President
                    Executive Vice
    Mao Daqing                                   0              800,000          2,000,000         600,000           800,000
                      President
                Secretary to the
    Tan Huajie                           0            640,000        1,600,000       480,000         640,000
                    Board
                  Member of
    Zhou Qingping    Supervisory        20,000          20,000             -              -               -
                  CommitteeNote: Save for the above-mentioned persons, other Directors, members of the Supervisory Committee and seniormanagement of the Company did not hold any of the Company’s shares.2. Change of Directors, members of the Supervisory Committee and senior managementof the Company during the reporting periodDuring the reporting period, Mr Wang Yin and Mr Jiang Wei submitted to the Board their resignation asdirectors. At the Company's 2012 annual general meeting, Mr Wei Bin and Mr Chen Ying were elected asdirectors of the sixteenth Board.VII. Financial Report (Unaudited)China Vanke Co., Ltd.万科企业股份有限公司
      30 June 2013
                                                                                     China Vanke Co., Ltd.
                                             Financial statements for the six months ended 30 June 2013Consolidated statement of profit or lossfor the six months ended 30 June 2013(Expressed in Renminbi Yuan)
                                                                         Six months ended 30 June
                                                                            2013                   2012
                                               Note
                                                                      RMB’000               RMB’000
    Revenue                                        4(a)                 38,940,809             28,959,560
    Cost of sales                                                      (27,501,464)           (19,297,385)
    Gross profit                                                        11,439,345               9,662,175
    Other revenue                                      5                    359,642                395,098
    Other net income                                   6                     33,201                 74,687
    Distribution costs                                                   (1,431,103)            (1,238,382)
    Administrative expenses                                              (1,230,601)              (851,688)
    Other operating expenses                           7                    (98,945)              (113,046)
    Profit from operations                                                9,071,539              7,928,844
    Finance costs                                  8(a)                    (678,604)              (788,381)
    Share of profits less losses of associates      15                      198,699                256,481Share of profits less losses of joint
    ventures                                      16                      188,930                166,039
    Profit before taxation                                                8,780,564              7,562,983
    Income tax                                     9(a)                  (3,444,673)            (3,027,505)
    Profit for the period                                                 5,335,891              4,535,478Attributable to:
    Equity shareholders of the Company                                    4,556,305              3,725,085
    Non-controlling interests                                               779,586                810,393
    Profit for the period                                                 5,335,891              4,535,478
    Basic earnings per share (RMB)                  11                           0.41                   0.34The accompanying notes form part of these financial statements. Details of dividendspayable to equity shareholders of the Company attributable to the profit for the period are setout in note 30(c).
                                                                                     China Vanke Co., Ltd.
                                             Financial statements for the six months ended 30 June 2013Consolidated statement of profit or loss and othercomprehensive incomefor the six months ended 30 June 2013(Expressed in Renminbi Yuan)
                                                                         Six months ended 30 June
                                                                            2013                   2012
                                                    Note
                                                                      RMB’000               RMB’000
    Profit for the period                                                 5,335,891            4,535,478
                                                              -------------------- --------------------Other comprehensive income for the period
    (after tax and reclassification adjustments) 10Items that may be reclassified subsequently to
      profit or loss:Exchange differences on translation of
    financial statements of overseas subsidiaries                          25,671                (73,372)Available-for-sale securities:
    - net movement in the fair value reserve                                      449               (27,374)
                                                                         26,120               (100,746)
                                                               -------------------     -------------------
    Total comprehensive income for the period                             5,362,011              4,434,732Attributable to:
    Equity shareholders of the Company                                    4,582,425              3,624,339
    Non-controlling interests                                               779,586                810,393
    Total comprehensive income for the period                             5,362,011              4,434,732The accompanying notes form part of these financial statements.
                                                                                   China Vanke Co., Ltd.
                                           Financial statements for the six months ended 30 June 2013Consolidated statement of financial positionas at 30 June 2013(Expressed in Renminbi Yuan)
                                             Note                30 June 2013         31 December 2012
                                                                   RMB’000                   RMB’000Non-current assets
    Property, plant and equipment                12                     3,354,795                    3,132,540
    Investment properties                        13                     1,831,992                    1,714,136
    Goodwill                                     14                       201,690                      201,690
    Interest in associates                       15                     4,705,397                    2,915,844
    Interest in joint ventures                   16                     4,252,463                    4,043,247
    Other financial assets                       17                        95,249                       85,979
    Other non-current assets                     18                     1,139,527                      879,582
    Deferred tax assets                         26(b)                   3,656,856                    3,219,894
                                                                  19,237,969                   16,192,912
                                                             -------------------          -------------------Current assets
    Inventories                                   19                 310,226,348                  253,622,152
    Trade and other receivables                   20                  65,454,674                   56,988,250
    Pledged deposits                              21                   1,356,113                    1,171,318
    Cash and cash equivalents                     22                  36,247,513                   51,120,224
                                                                413,284,648                   362,901,944
                                                             -------------------          -------------------Current liabilitiesBank loans and borrowings
    from financial institutions                23                   44,854,390                   35,557,359
    Financial derivatives                        24                       13,818                       25,761
    Trade and other payables                     25                  261,904,686                  215,529,570
    Current taxation                            26(a)                  7,328,407                    8,720,876
                                                                314,101,301                   259,833,566
                                                             -------------------          -------------------
    Net current assets                                                99,183,347                  103,068,378
                                                             -------------------          -------------------
    Total assets less current liabilities                           118,421,316                   119,261,290
                                                             -------------------          -------------------The accompanying notes form part of these financial statements.
                                                                                   China Vanke Co., Ltd.
                                           Financial statements for the six months ended 30 June 2013Consolidated statement of financial positionas at 30 June 2013 (continued)(Expressed in Renminbi Yuan)
                                             Note               30 June 2013         31 December 2012
                                                                   RMB’000                 RMB’000Non-current liabilitiesBank loans and borrowings
    from financial institutions                 23                   29,282,031                 36,036,070
    Deferred tax liabilities                     26(c)                    981,434                  1,027,055
    Provisions                                    27                       58,551                     44,292
    Other non-current liabilities                 28                       33,818                     15,678
                                                                  30,355,834                 37,123,095
                                                             -------------------        -------------------
    NET ASSETS                                                         88,065,482                 82,138,195
    CAPITAL AND RESERVES                          30
    Share capital                                                      11,013,725                 10,995,553
    Reserves                                                           55,630,902                 52,830,001Total equity attributable to equity
    shareholders of the Company                                    66,644,627                 63,825,554
    Non-controlling interests                                          21,420,855                 18,312,641
    TOTAL EQUITY                                                       88,065,482                 82,138,195Approved and authorised for issue by the board of directors on 5 August 2013.
    Wang Shi                                       )
    Yu Liang                                       )
                                               )       Directors
                                               )
                                               )The accompanying notes form part of these financial statements.
                                                                                                                                                                   China Vanke Co., Ltd.
                                                                                                                           Financial statements for the six months ended 30 June 2013Consolidated statement of changes in equity (continued)For the six months ended 30 June 2013(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 2013                       10,995,553     8,792,995      193,775    17,017,051       440,990       (302,909)   26,688,099    63,825,554    18,312,641    82,138,195Changes in equity for for the six monthsended 30 June 2013:
    Profit for the period                                  -             -             -             -             -             -     4,556,305     4,556,305      779,586       5,335,891
    Other comprehensive income            10               -             -             -             -        25,671           449             -        26,120            -          26,120
    Total comprehensive income                               -             -             -             -        25,671           449     4,556,305     4,582,425      779,586       5,362,011
                                                ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------Dividends approved in respect of
    the previous period                   30(c)            -            -             -              -             -              -   (1,981,401)   (1,981,401)             -    (1,981,401)
    Appropriation to statutory reserves     30(b)            -            -             -              -             -              -            -             -              -             -
    Exercise of Share Options               30(a)       18,172      293,326             -              -             -              -            -       311,498              -       311,498
    Equity settled share-based transactions 29               -            -      (122,621)             -             -              -            -      (122,621)             -      (122,621)Share issued upon exercise
    of share option                                        -             -             -             -             -              -             -            -              -              -Capital contribution from
    non-controlling interests                              -             -             -             -             -              -             -            -     2,430,969      2,430,969
    Acquisitions of subsidiaries                             -             -             -             -             -              -             -            -       550,287        550,287Acquisitions of additional interest
    in subsidiaries                                        -             -             -             -             -        29,172              -      29,172        (22,583)         6,589
    Disposals of subsidiaries                                -             -             -             -             -             -              -           -         (2,445)        (2,445)Dividends declared to non-controlling
    interests                                              -             -             -             -             -              -             -            -      (627,600)      (627,600)
    Balance at 30 June 2013                         11,013,725     9,086,321       71,154    17,017,051       466,661       (273,288)   29,263,003    66,644,627    21,420,855    88,065,482The accompanying notes form part of these financial statements.
                                                                                                                                                                   China Vanke Co., Ltd.
                                                                                                                           Financial statements for the six months ended 30 June 2013Consolidated statement of changes in equityYear ended 31 December 2012(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 2012                       10,995,210     8,789,676      106,236    13,648,727       545,776        (52,448)   18,934,618    52,967,795    14,864,744    67,832,539Changes in equity for 2012:
    Profit for the year                                    -             -             -             -             -             -    12,551,182    12,551,182     3,111,406    15,662,588
    Other comprehensive income                             -             -             -             -      (104,786)      (27,373)            -      (132,159)            -      (132,159)
    Total comprehensive income                               -             -             -             -      (104,786)      (27,373)   12,551,182    12,419,023     3,111,406    15,530,429
                                                ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------Dividends approved in respect of
    the previous year                     30(c)            -             -            -             -              -              -   (1,429,377)   (1,429,377)             -    (1,429,377)
    Appropriation to statutory reserves     30(b)            -             -            -     3,368,324              -              -   (3,368,324)            -              -             -
    Equity settled share-based transactions                  -             -       88,231             -              -              -            -        88,231                       88,231Share issued upon exercise
    of share options                                     343        3,319          (692)             -             -              -            -         2,970              -         2,970Capital contribution from
    non-controlling interests                              -             -             -             -             -              -            -             -     2,747,932      2,747,932
    Acquisitions of subsidiaries                             -             -             -             -             -              -            -             -       517,617        517,617Acquisitions of additional interest
    in subsidiaries                                        -             -             -             -             -      (223,088)            -      (223,088)   (1,160,135)    (1,383,223)
    Disposals of subsidiaries                                -             -             -             -             -             -             -             -       (40,000)       (40,000)Dividends declared to non-controlling
    interests                                              -             -             -             -             -              -            -             -    (1,728,923)    (1,728,923)
    Balance at 31 December 2012                     10,995,553     8,792,995      193,775    17,017,051       440,990       (302,909)   26,688,099    63,825,554    18,312,641    82,138,195The accompanying notes form part of these financial statements.
                                                                                      China Vanke Co., Ltd.
                                              Financial statements for the six months ended 30 June 2013Consolidated cash flow statementfor the six months ended 30 June 2013(Expressed in Renminbi Yuan)
                                                                          Six months ended 30 June
                                                                             2013                   2012
                                                      Note
                                                                       RMB’000               RMB’000Operating activities
    Cash received from customers                                         67,220,443              48,164,285
    Cash generated from other operating activities                        4,900,606               3,406,592
    Cash paid to suppliers                                              (56,258,619)            (31,537,772)
    Cash paid to and for employees                                       (2,279,046)             (1,821,229)
    Cash paid for other taxes                                            (5,749,221)             (4,266,938)
    Cash used in other operating activities                             (10,557,731)             (5,573,901)
    Cash generated from operations                                        (2,723,568)             8,371,037PRC Corporate Income Tax (“CIT”)
    and Hong Kong Profits Tax paid                                      (4,415,336)            (3,045,888)
    Land Appreciation Tax (“LAT”) paid                                  (2,653,496)            (2,505,954)Net cash (used in)/generated from
    operating activities                                                (9,792,400)              2,819,195
                                                                -------------------     -------------------Investing activitiesAcquisitions of subsidiaries, net of
    cash acquired                                        35              (889,290)              (835,148)
    Investment in associates and joint ventures                           (1,821,023)              (125,450)
    Acquisitions of additional interest in subsidiaries                      (24,260)                (6,000)
    Acquisitions of other investments                                        (44,780)               (60,000)
    Acquisitions of property, plant and equipment                            (48,493)               (79,462)
    Net cash inflow from disposals of subsidiaries          36                63,181                      -Proceeds from disposal of property, plant
    and equipment                                                           1,013                    679
    Proceeds from disposals of investments                                   248,363                  4,000
    Interest received                                                        224,753                189,256
    Dividends received                                                       552,922                 47,684
    Net cash used in investing activities                                (1,737,614)               (864,441)
                                                                -------------------     -------------------The accompanying notes form part of these financial statements.
                                                                                       China Vanke Co., Ltd.
                                               Financial statements for the six months ended 30 June 2013Consolidated cash flow statementfor the six months ended 30 June 2013 (continued)(Expressed in Renminbi Yuan)
                                                                           Six months ended 30 June
                                                                              2013                   2012
                                                                        RMB’000               RMB’000Financing activities
    Contributions from non-controlling interests                            1,027,459                132,213Proceeds from bank loans and borrowings
    from financial institutions                                         19,457,690              26,317,972
    Proceeds from issuing of corporate bonds                               4,873,555                       -Repayment of bank loans and borrowings
    from financial institutions                                        (23,421,883)            (13,798,424)
    Dividends and interest paid                                           (5,248,549)             (2,481,267)Net cash (used in)/generated from
    financing activities                                                 (3,311,728)             10,170,494
                                                                 -------------------     -------------------
    Effect of foreign exchange rate changes                                   (30,969)                (19,632)
                                                                 -------------------     -------------------Net (decrease) / increase in cash and
    cash equivalents                                                   (14,872,711)             12,105,616
    Cash and cash equivalents at 1 January                                51,120,224              33,614,112
    Cash and cash equivalents at 30 June                                  36,247,513              45,719,728The accompanying notes form part of these consolidated financial statements.
                                                                                             China Vanke Co., Ltd.
                                                     Financial statements for the six months ended 30 June 2013
      Notes to the consolidated financial statements
      (Expressed in Renminbi Yuan unless otherwise indicated)
    1     Reporting entity
      China Vanke Co., Ltd (the “Company”) is a company domiciled in the People’s Republic of
      China(the “PRC”). The consolidated interim financial statements (“interim financial
      statements”) as at and for the six months ended 30 June 2013 comprise the Company and its
      subsidiaries (together referred to as the “Group” and individually as “Group entities”) and the
      Group’s interests in associates and joint ventures. The Group’s principal activities are
      development and sale of properties in the PRC.
    2     Significant accounting policies
    (a)   Statement of compliance
      These interim financial statements have been prepared in accordance with the International
      Financial Reporting Standards (“IFRSs”) issued by the International Accounting Standards
      Board (“IASB”). A summary of the significant accounting policies adopted by the Group is
      set out below.
      IASB has issued certain new and revised IFRSs that are first effective or available for early
      adoption for current accounting period of the Group. Note 2(c) provides information on any
      changes in accounting policies resulting from initial application of these developments to the
      extent that they are relevant to the Group for the current and prior accounting periods
      reflected in these interim financial statements.
    (b)   Basis of preparation
      The measurement basis used in the preparation of the interim financial statements is the
      historical cost basis except that the following assets and liabilities are stated at their fair value
      as explained in the accounting policies set out below:
              financial instruments classified as available-for-sale (see note 2(g));
              derivative financial instruments are measured at fair value (see note 2(h)).
      The preparation of interim financial statements in conformity with IFRSs requires
      management to make judgments, estimates and assumptions that affect the application of
      policies and reported amounts of assets, liabilities, income and expenses. The estimates and
      associated assumptions are based on historical experience and various other factors that are
      believed to be reasonable under the circumstances, the results of which form the basis of
      making the judgments about carrying values of assets and liabilities that are not readily
      apparent from other sources. Actual results may differ from these estimates.
                                                                                             China Vanke Co., Ltd.
                                                     Financial statements for the six months ended 30 June 2013
    2      Significant accounting policies (continued)
    (b)    Basis of preparation (continued)
       The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to
       accounting estimates are recognised in the period in which the estimate is revised if the
       revision affects only that period, or in the period of the revision and future periods if the
       revision affects both current and future periods.
       Judgments made by management in the application of IFRSs that have significant effect on
       the interim financial statements and major sources of estimation uncertainty are discussed in
       note 3.
    (c)    Changes in accounting policies
       The Group has adopted the following new standards and amendments to standards, including
       any consequential amendments to other standards, with a date of initial application of 1
       January 2013.
           IFRS 10 Consolidated Financial Statements (2011) (see (i))
           IFRS 11 Joint Arrangements (see (ii))
           IFRS 12 Disclosure of interests in other entities (see (iii))
           IFRS 13 Fair Value Measurement (see (iv))
           Presentation of Items of Other Comprehensive Income (Amendments to IAS 1) (see (v))
       The Group has not applied any new standard or interpretation that is not yet effective for the
       current accounting period.
       The nature and the effect of the changes are further explained below.
    (i)    Consolidated financial statements
       As a result of IFRS 10 (2011), the Group has changed its accounting policy for determining
       whether it has control over and consequently whether it consolidates its investees. IFRS 10
       (2011) introduces a new control model that is applicable to all investees, by focusing on
       whether the Group has power over an investee, exposure or rights to variable returns from its
       involvement with the investee and ability to use its power to affect those returns. In
       particular, IFRS 10 (2011) requires the Group consolidate investees that it controls on the
       basis of de facto circumstances.
    (ii)   Joint arrangements
       As a result of IFRS 11, the Group has changed its accounting policy for its interests in joint
       arrangements. Under IFRS 11, the Group classies its interests in joint arrangements as either
       joint operations or joint ventures depending on the Group’s rights to the assets and
       obligations for the liabilities of the arrangements. When making this assessment, the Group
       considers the structure of the arrangements, the legal form of any separate vehicles, the
       contractual terms of the arrangements and other facts and circumstances. Previously, the
       structure of the arrangement was the sole focus of classication.
                                                                                             China Vanke Co., Ltd.
                                                     Financial statements for the six months ended 30 June 2013
    2       Significant accounting policies (continued)
    (c)     Changes in accounting policies (continued)
    (iii)   Disclosure of interests in other entities
        IFRS 12 brings together into a single standard all the disclosure requirements relevant to the
        Group’s interests in subsidiaries, joint arrangements, associates and unconsolidated
        structured entities. The disclosures required by IFRS 12 are generally more extensive than
        those previously required by the respective standards.
    (iv)    Fair value measurement
        IFRS 13 establishes a single framework for measuring fair value and making disclosures
        about fair value measurements, when such measurements are required or permitted by other
        IFRSs. In particular, it unies the denition of fair value as the price at which an orderly
        transaction to sell an asset or to transfer a liability would take place between market
        participants at the measurement date. It also replaces and expands the disclosure requirements
        about fair value measurements in other IFRSs, including IFRS 7 Financial Instruments:
        Disclosures. Some of these disclosures are specically required in interim nancial
        statements for nancial instruments; accordingly, the Group has included additional
        disclosures in this regard (see note 2(g) and note 2(h) ).
        In accordance with the transitional provisions of IFRS 13, the Group has applied the new fair
        value measurement guidance prospectively, and has not provided any comparative
        information for new disclosures. Notwithstanding the above, the change had no signicant
        impact on the measurements of the Group’s assets and liabilities.
    (v)     Presentation of items of other comprehensive income
        As a result of the amendments to IAS 1, the Group has modied the presentation of items of
        other comprehensive income in its consolidated statement of prot or loss and other
        comprehensive income, to present separately items that would be reclassied to prot or loss
        in the future from those that would never be. Comparative information has also been
        re-presented accordingly.
        The adoption of the amendment to IAS 1 has no impact on the recognised assets, liabilities
        and comprehensive income of the Group.
    (d)    Subsidiaries and non-controlling interests
        Subsidiaries are entities controlled by the Group. The Group controls an entity when it is
        exposed, or has rights, to variable returns from its involvement with the entity and has the
        ability to affect those returns through its power over the entity. When assessing whether the
        Group has power, only substantive rights (held by the Group and other parties) are
        considered.
                                                                                            China Vanke Co., Ltd.
                                                    Financial statements for the six months ended 30 June 2013
    2     Significant accounting policies (continued)
    (d)   Subsidiaries and non-controlling interest (continued)
      An investment in a subsidiary is consolidated into the consolidated financial statements from
      the date that control commences until the date that control ceases. Intra-group balances,
      transactions and cash flows and any unrealised profits arising from intra-group transactions
      are eliminated in full in preparing the consolidated financial statements. Unrealised losses
      resulting from intra-group transactions are eliminated in the same way as unrealised gains but
      only to the extent that there is no evidence of impairment.
      Non-controlling interests represent the equity in a subsidiary not attributable directly or
      indirectly to the company, and in respect of which the Group has not agreed any additional
      terms with the holders of those interests which would result in the Group as a whole having a
      contractual obligation in respect of those interests that meets the definition of a financial
      liability. For each business combination, the Group can elect to measure any non-controlling
      interests either at fair value or at the non-controlling interests’ proportionate share of the
      subsidiary’s net identifiable assets.
      Non-controlling interests are presented in the consolidated statement of financial position
      within equity, separately from equity attributable to the equity shareholders of the company.
      Non-controlling interests in the results of the Group are presented on the face of the
      consolidated statement of profit or loss and the consolidated statement of profit or loss and
      other comprehensive income as an allocation of the total profit or loss and total
      comprehensive income for the period between the non-controlling interests and the equity
      shareholders of the company. Loans from holders of non-controlling interests and other
      contractual obligations towards these holders are presented as financial liabilities in the
      consolidated statement of financial position in accordance with notes 2(p) or (q) depending
      on the nature of the liabilities.
      Changes in the Group’s interests in a subsidiary that do not result in a loss of control are
      accounted for as equity transactions, whereby adjustments are made to the amounts of
      controlling and non-controlling interests within consolidated equity to reflect the change of
      the relative interests, but no adjustments are made to goodwill and no gain or loss is
      recognised.
      When the Group loses control of a subsidiary, it is accounted for as a disposal of the entire
      interest in that subsidiary, with a resulting gain or loss being recognised in profit or loss.
      Any interest retained in that former subsidiary at the date when control is lost is recognised at
      fair value and this amount is regarded as the fair value on initial recognition of a financial
      asset(see note 2(e)) or, when appropriate, the cost on initial recognition of an investment in
      an associate or joint venture (see note 2(e)).
                                                                                             China Vanke Co., Ltd.
                                                     Financial statements for the six months ended 30 June 2013
    2     Significant accounting policies (continued)
    (e)   Associates and joint ventures
      An associate is an entity in which the Group or company has significant influence, but not
      control or joint control, over its management, including participation in the financial and
      operating policy decisions.
      A joint venture is an arrangement whereby the Group or company and other parties
      contractually agree to share control of the arrangement, and have rights to the net assets of
      the arrangement.
      An investment in an associate or a joint venture is accounted for in the consolidated financial
      statements under the equity method, unless it is classified as held for sale (or included in a
      disposal group that is classified as held for sale). Under the equity method, the investment is
      initially recorded at cost, adjusted for any excess of the Group’s share of the acquisition-date
      fair values of the investee’s identifiable net assets over the cost of the investment (if any).
      Thereafter, the investment is adjusted for the post acquisition change in the Group’s share of
      the investee’s net assets and any impairment loss relating to the investment (see notes 2(l)).
      Any acquisition-date excess over cost, the Group’s share of the post-acquisition, post-tax
      results of the investees and any impairment losses for the period are recognised in the
      consolidated statement of profit or loss, whereas the Group’s share of the post-acquisition
      post-tax items of the investees’ other comprehensive income is recognised in the
      consolidated statement of profit or loss and other comprehensive income.
      When the Group’s share of losses exceeds its interest in the associate or the joint venture, the
      Group’s interest is reduced to nil and recognition of further losses is discontinued except to
      the extent that the Group has incurred legal or constructive obligations or made payments on
      behalf of the investee. For this purpose, the Group’s interest is the carrying amount of the
      investment under the equity method together with the Group’s long-term interests that in
      substance form part of the Group’s net investment in the associate or the joint venture.
      Unrealised profits and losses resulting from transactions between the Group and its associates
      and joint venture are eliminated to the extent of the Group’s interest in the investee, except
      where unrealised losses provide evidence of an impairment of the asset transferred, in which
      case they are recognised immediately in profit or loss.
      If an investment in an associate becomes an investment in a joint venture or vice versa,
      retained interest is not re-measured. Instead, the investment continues to be accounted for
      under the equity method.
      In all other cases, when the Group ceases to have significant influence over an associate or
      joint control over a joint venture, it is accounted for as a disposal of the entire interest in that
      investee, with a resulting gain or loss being recognised in profit or loss. Any interest retained
      in that former investee at the date when significant influence or joint control is lost is
      recognised at fair value and this amount is regarded as the fair value on initial recognition of
      a financial asset (see note 2(g)).
                                                                                            China Vanke Co., Ltd.
                                                    Financial statements for the six months ended 30 June 2013
    2     Significant accounting policies (continued)
    (f)   Goodwill
      Goodwill represents the excess of
      (i)    the aggregate of the fair value of the consideration transferred, the amount of any
             non-controlling interest in the acquiree and the fair value of the Group’s previously
             held equity interest in the acquiree; over
      (ii)   the net fair value of the acquiree’s identifiable assets and liabilities measured as at the
             acquisition date.
      When (ii) is greater than (i), then this excess is recognised immediately in profit or loss as a
      gain on a bargain purchase.
      Goodwill is stated at cost less accumulated impairment losses. Goodwill arising on a
      business combination is allocated to each cash-generating unit, or groups of cash generating
      units, that is expected to benefit from the synergies of the combination and is tested annually
      for impairment (see note 2(l)).
      On disposal of a cash generating unit during the period, any attributable amount of purchased
      goodwill is included in the calculation of the profit or loss on disposal.
    (g)   Other investments in equity securities
      The Group’s policies for investments in equity securities, other than investments in
      subsidiaries, associates and joint venture, are as follows:
      Investments in equity securities are initially stated at fair value, which is their transaction
      price unless fair value can be more reliably estimated using valuation techniques whose
      variables include only data from observable markets. Cost includes attributable transaction
      costs.
      Investments in equity securities that do not have a quoted market price in an active market
      and whose fair value cannot be reliably measured are recognised in the statement of financial
      position at cost less impairment losses (see note 2(l)).
      Investments in equity securities which are not held for trading are classified as
      available-for-sale securities. At the end of each reporting period the fair value is remeasured,
      with any resultant gain or loss being recognised in other comprehensive income and
      accumulated separately in equity. Dividend income from these investments is recognised in
      profit or loss in accordance with the policy set out in note 2(v)(v). When these investments
      are derecognised or impaired (see note 2(l)), the cumulative gain or loss is reclassified from
      equity to profit or loss.
                                                                                            China Vanke Co., Ltd.
                                                    Financial statements for the six months ended 30 June 2013
    2     Significant accounting policies (continued)
    (h)   Derivative financial instruments
      Derivative financial instruments are recognised initially at fair value. At the end of each
      reporting period the fair value is remeasured. The gain or loss on remeasurement to fair value
      is recognised immediately in profit or loss.
    (i)   Investment property
      Investment properties are buildings which are owned or held under a leasehold interest (see
      note 2(k)) to earn rental income and/or for capital appreciation. These include property that is
      being constructed or developed for future use as investment property.
      Investment properties are stated at cost less accumulated depreciation and accumulated
      impairment loss. Rental income from investment properties is accounted for as described in
      note 2(v)(iv).
      Depreciation is calculate to write off the costs of investment properties, less its residual value
      of 0% to 4%, if any, using the straight-line method over their estimated useful lives of 12.5 to
      40 years. Both the useful life and residual value, if any, are reviewed annually.
    (j)   Property, plant and equipment
      The following items of property, plant and equipment are measured at cost less accumulated
      depreciation and accumulated impairment loss (see note 2(l)):
      -   buildings held for own use which are situated on leasehold land classified as held under
          operating lease (see note 2(k)); and
      -   other items of plant and equipment.
      The cost of self-constructed items of property, plant and equipment includes the cost of
      materials, direct labour, the initial estimate, where relevant, of the costs of dismantling and
      removing the items and restoring the site on which they are located, and an appropriate
      proportion of production overheads and borrowing costs (see note 2(x)).
      Gain or loss arising from the retirement or disposal of an item of property, plant and
      equipment are determined as the difference between the net disposal proceeds and the
      carrying amount of the item and are recognised in profit or loss on the date of retirement or
      disposal.
                                                                                           China Vanke Co., Ltd.
                                                   Financial statements for the six months ended 30 June 2013
    2     Significant accounting policies (continued)
    (j)   Property, plant and equipment (continued)
      Depreciation is calculated to write off the cost of items of property, plant and equipment, less
      their estimated residual value, if any, using the straight line method over their estimated
      useful lives as follows:
                                              Residual value                                       Useful life
      Leasehold land                                       0%                   unexpired term of lease
      Hotel and other buildings                            4%               the shorter of the unexpired
                                                                       term of lease and 12.5 - 40 years
      Improvements to premises                             0%                                5 - 10 years
      Machinery and motor vehicles                         4%                                5 - 10 years
      Other equipment                                      4%                                     5 years
      Where parts of an item of property, plant and equipment have different useful lives, the cost
      of the item is allocated on a reasonable basis between the parts and each part is depreciated
      separately. Both the useful life of an asset and its residual value, if any, are reviewed
      annually.
    (k)   Leased assets
      An arrangement, comprising a transaction or a series of transactions, is or contains a lease if
      the Group determines that the arrangement conveys a right to use a specific asset or assets for
      an agreed period of time in return for a payment or a series of payments. Such a
      determination is made based on an evaluation of the substance of the arrangement and is
      regardless of whether the arrangement takes the legal form of a lease.
      Where the Group has the use of assets held under operating leases, payments made under the
      leases are charged to profit or loss in equal instalments over the accounting periods covered
      by the lease term, except where an alternative basis is more representative of the pattern of
      benefits to be derived from the leased asset. Lease incentives received are recognised in
      profit or loss as an integral part of the aggregate net lease payments made. Contingent rentals
      are charged to profit or loss in the accounting period in which they are incurred.
      The cost of acquiring land held under an operating lease is amortised on a straight-line basis
      over the period of the lease term except where the property is held for development for sale
      (see note 2(m)(ii)).
                                                                                            China Vanke Co., Ltd.
                                                    Financial statements for the six months ended 30 June 2013
    2     Significant accounting policies (continued)
    (l)   Impairment of assets
    (i)   Impairment of investments in equity securities and other receivables
      Investments in equity securities and other current and non-current receivables that are stated
      at cost or amortised cost or are classified as available-for-sale securities are reviewed at the
      end of each reporting period to determine whether there is objective evidence of impairment.
      Objective evidence of impairment includes observable data that comes to the attention of the
      Group about one or more of the following loss events:
      -      significant financial difficulty of the debtor;
      -      a breach of contract, such as a default or delinquency in interest or principal
             payments;
      -      it becoming probable that the debtor will enter bankruptcy or other financial
             reorganisation;
      -      significant changes in the technological, market, economic or legal environment that
             have an adverse effect on the debtor; and
      -      a significant or prolonged decline in the fair value of an investment in an equity
             instrument below its cost.
      If any such evidence exists, any impairment loss is determined and recognised as follows:
      -   For investments in associates and joint venture (including those recognised using the
          equity method (see note 2(e)), the impairment loss is measured by comparing the
          recoverable amount of the investment with its carrying amount in accordance with note
          2(l)(ii). The impairment loss is reversed if there has been a favourable change in the
          estimates used to determine the recoverable amount in accordance with note 2(l)(ii).
      -   For unquoted equity securities carried at cost, the impairment loss is measured as the
          difference between the carrying amount of the financial asset and the estimated future
          cash flows, discounted at the current market rate of return for a similar financial asset
          where the effect of discounting is material. Impairment losses for equity securities
          carried at cost are not reversed.
                                                                                            China Vanke Co., Ltd.
                                                    Financial statements for the six months ended 30 June 2013
    2     Significant accounting policies (continued)
    (l)   Impairment of assets (continued)
    (i)   Impairment of investments in equity securities and other receivables (continued)
      -   For trade and other current receivables and other financial assets carried at amortised
          cost, the impairment loss is measured as the difference between the asset’s carrying
          amount and the present value of estimated future cash flows, discounted at the financial
          asset’s original effective interest rate (i.e. the effective interest rate computed at initial
          recognition of these assets), where the effect of discounting is material. This assessment
          is made collectively where these financial assets share similar risk characteristics, such
          as similar past due status, and have not been individually assessed as impaired. Future
          cash flows for financial assets which are assessed for impairment collectively are based
          on historical loss experience for assets with credit risk characteristics similar to the
          collective group.
          If in a subsequent period the amount of an impairment loss decreases and the decrease
          can be linked objectively to an event occurring after the impairment loss was recognised,
          the impairment loss is reversed through profit or loss. A reversal of an impairment loss
          shall not result in the asset’s carrying amount exceeding that which would have been
          determined had no impairment loss been recognised in prior years.
      -   For available-for-sale securities, the cumulative loss that has been recognised in equity is
          reclassified to profit or loss. The amount of the cumulative loss that is recognised in
          profit or loss is the difference between the acquisition cost (net of any principal
          repayment and amortisation) and current fair value, less any impairment loss on that
          asset previously recognised in profit or loss.
          Impairment losses recognised in profit or loss in respect of available-for-sale equity
          securities are not reversed through profit or loss. Any subsequent increase in the fair
          value of such assets is recognised in other comprehensive income.
      Impairment losses are written off against the corresponding assets directly, except for
      impairment losses recognised in respect of trade debtors included within trade and other
      receivables, whose recovery is considered doubtful but not remote. In this case, the
      impairment losses for doubtful debts are recorded using an allowance account. When the
      Group is satisfied that recovery is remote, the amount considered irrecoverable is written off
      directly and any amounts held in the allowance account relating to that debt are reversed.
      Subsequent recoveries of amounts previously charged to the allowance account are reversed
      against the allowance account. Other changes in the allowance account and subsequent
      recoveries of amounts previously written off directly are recognised in profit or loss.
                                                                                            China Vanke Co., Ltd.
                                                    Financial statements for the six months ended 30 June 2013
    2      Significant accounting policies (continued)
    (l)    Impairment of assets (continued)
    (ii)   Impairment of other assets
       Internal and external sources of information are reviewed at the end of each reporting period
       to identify indications that the following assets may be impaired or, except in the case of
       goodwill, an impairment loss previously recognised no longer exists or may have decreased:
       -      property, plant and equipment;
       -      pre-paid interests in leasehold land classified as being held under an operating lease;
              and
       -      goodwill.
       If any such indication exists, the asset’s recoverable amount is estimated. In addition, for
       goodwill, the recoverable amount is estimated annually whether or not there is any indication
       of impairment.
       -      Calculation of recoverable amount
           The recoverable amount of an asset is the greater of its fair value less costs to sell and
           value in use. In assessing value in use, the estimated future cash flows are discounted to
           their present value using a pre-tax discount rate that reflects current market assessments
           of the time value of money and the risks specific to the asset. Where an asset does not
           generate cash inflows largely independent of those from other assets, the recoverable
           amount is determined for the smallest group of assets that generates cash inflows
           independently (i.e. a cash-generating unit).
       -      Recognition of impairment losses
           An impairment loss is recognised in profit or loss if the carrying amount of an asset, or
           the cash-generating unit to which it belongs, exceeds its recoverable amount.
           Impairment losses recognised in respect of cash-generating units are allocated first to
           reduce the carrying amount of any goodwill allocated to the cash-generating unit (or
           group of units) and then, to reduce the carrying amount of the assets in the unit (or group
           of units) on a pro rata basis, except that the carrying value of an asset will not be reduced
           below its individual fair value less costs to sell, or value in use, if determinable.
       -      Reversals of impairment losses
           In respect of assets other than goodwill, an impairment loss is reversed if there has been
           a favourable change in the estimates used to determine the recoverable amount. An
           impairment loss in respect of goodwill is not reversed.
           A reversal of an impairment loss is limited to the asset’s carrying amount that would
           have been determined had no impairment loss been recognised in prior years.
           Reversals of impairment losses are credited to profit or loss in the period in which the
           reversals are recognised.
                                                                                            China Vanke Co., Ltd.
                                                    Financial statements for the six months ended 30 June 2013
    2      Significant accounting policies (continued)
    (m)    Inventories
    (i)    Construction materials
       Construction materials are carried at the lower of cost and net realisable value.
       Cost is calculated using the weighted average cost formula and comprises all costs of
       purchase, costs of conversion and other costs incurred in bringing the construction materials
       to their present location and condition.
       Net realisable value is the estimated selling price in the ordinary course of business less the
       estimated costs of completion and the estimated costs necessary to make the sale.
    (ii)   Property development
       Inventories in respect of property development activities are carried at the lower of cost and
       net realisable value. Cost and net realisable values are determined as follows:
       -      Property held for development and property under development
           The cost of properties held for development and properties under development
           comprises specifically identified cost, including the acquisition cost of land, aggregate
           cost of development, materials and supplies, wages and other direct expenses, an
           appropriate proportion of overheads and borrowing costs capitalised (see note 2(x)). Net
           realisable value represents the estimated selling price less estimated costs of completion
           and costs to be incurred in selling the property.
       -      Completed property for sale
           In the case of completed properties developed by the Group, cost is determined by
           apportionment of the total development costs for that development project, attributable
           to the unsold properties. Net realisable value represents the estimated selling price less
           costs to be incurred in selling the property.
           The cost of completed properties held for sale comprises all costs of purchase, costs of
           conversion and other costs incurred in bringing the inventories to their present location
           and condition.
    (n)    Construction contracts
       Construction contracts are contracts specifically negotiated with a customer for the
       construction of an asset or a group of assets, where the customer is able to specify the major
       structural elements of the design. The accounting policy for contract revenue is set out in
       note 2(v)(iii). When the outcome of a construction contract can be estimated reliably,
       contract costs are recognised as an expense by reference to the stage of completion of the
       contract at the end of the reporting period. When it is probable that total contract costs will
       exceed total contract revenue, the expected loss is recognised as an expense immediately.
       When the outcome of a construction contract cannot be estimated reliably, contract costs are
       recognised as an expense in the period in which they are incurred.
                                                                                           China Vanke Co., Ltd.
                                                   Financial statements for the six months ended 30 June 2013
    2     Significant accounting policies (continued)
    (n)   Construction contracts (continued)
      Construction contracts in progress at the end of the reporting period are recorded at the net
      amount of costs incurred plus recognised profit less recognised losses and progress billings,
      and are presented in the statement of financial position as the “Gross amount due from
      customers for contract work” (as an asset) or the “Gross amount due to customers for
      contract work” (as a liability), as applicable. Progress billings not yet paid by the customer
      are included under “Trade and other receivables”. Amounts received before the related work
      is performed are presented as “Receipts in advance” under “Trade and other payables”.
    (o)   Trade and other receivables
      Trade and other receivables are initially recognised at fair value and thereafter stated at
      amortised cost using the effective interest method, less allowance for impairment of doubtful
      debts (see note 2(l)), except where the receivables are interest-free loans made to related
      parties without any fixed repayment terms or the effect of discounting would be immaterial.
      In such cases, the receivables are stated at cost less allowance for impairment of doubtful
      debts.
    (p)   Interest-bearing borrowings
      Interest-bearing borrowings are recognised initially at fair value less attributable transaction
      costs. Subsequent to initial recognition, interest-bearing borrowings are stated at amortised
      cost with any difference between the amount initially recognised and redemption value being
      recognised in profit or loss over the period of the borrowings, together with any interest and
      fees payable, using the effective interest method.
    (q)   Trade and other payables
      Trade and other payables are initially recognised at fair value. Except for financial guarantee
      liabilities measured in accordance with note 2(u)(i), trade and other payables are
      subsequently stated at amortised cost unless the effect of discounting would be immaterial, in
      which case they are stated at cost.
    (r)   Cash and cash equivalents
      Cash and cash equivalents comprise cash at bank and on hand, demand deposits with banks
      and other financial institutions, and short-term, highly liquid investments that are readily
      convertible into known amounts of cash and which are subject to an insignificant risk of
      changes in value, having been within three months of maturity at acquisition.
                                                                                             China Vanke Co., Ltd.
                                                     Financial statements for the six months ended 30 June 2013
    2       Significant accounting policies (continued)
    (s)     Employee benefits
    (i)     Short term employee benefits and contributions to defined contribution retirement plans
        Salaries, annual bonuses, paid annual leave, contributions to defined contribution retirement
        plans and the cost of non-monetary benefits are accrued in the period in which the associated
        services are rendered by employees. Where payment or settlement is deferred and the effect
        would be material, these amounts are stated at their present values.
    (ii)    Share-based payments
        The fair value of share options granted to employees is recognised as an employee cost with
        a corresponding increase in the share-based compensation reserve within equity. The fair
        value is measured at grant date using the Binomial model, taking into account the terms and
        conditions upon which the options were granted. Where the employees have to meet vesting
        conditions before becoming unconditionally entitled to the options, the total estimated fair
        value of the options is spread over the vesting period, taking into account the probability that
        the options will vest.
        During the vesting period, the number of share options that is expected to vest is reviewed.
        Any resulting adjustment to the cumulative fair value recognised in prior years is
        charged/credited to the profit or loss for the period of the review, unless the original
        employee expenses qualify for recognition as an asset, with a corresponding adjustment to
        the share-based compensation reserve. On vesting date, the amount recognised as an expense
        is adjusted to reflect the actual number of options that vest (with a corresponding adjustment
        to the share-based compensation reserve). The equity amount is recognised in the
        share-based compensation reserve until either the option is exercised (when it is transferred
        to the share premium account) or the option expires (when it is released directly to retained
        profits).
    (iii)   Termination benefits
        Termination benefits are recognised when, and only when, the Group demonstrably commits
        itself to terminate employment or to provide benefits as a result of voluntary redundancy by
        having a detailed formal plan which is without realistic possibility of withdrawal.
    (t)     Income tax
        Income tax for the period comprises current tax and movements in deferred tax assets and
        liabilities. Current tax and movements in deferred tax assets and liabilities are recognised in
        profit or loss except to the extent that they relate to items recognised in other comprehensive
        income or directly in equity, in which case the relevant amounts of tax are recognised in
        other comprehensive income or directly in equity, respectively.
        Current tax is the expected tax payable on the taxable income for the period, using tax rates
        enacted or substantively enacted at the end of the reporting period, and any adjustment to tax
        payable in respect of previous years.
                                                                                            China Vanke Co., Ltd.
                                                    Financial statements for the six months ended 30 June 2013
    2     Significant accounting policies (continued)
    (t)   Income tax (continued)
      Deferred tax assets and liabilities arise from deductible and taxable temporary differences
      respectively, being the differences between the carrying amounts of assets and liabilities for
      financial reporting purposes and their tax bases. Deferred tax assets also arise from unused
      tax losses and unused tax credits.
      Apart from certain limited exceptions, all deferred tax liabilities, and all deferred tax assets to
      the extent that it is probable that future taxable profits will be available against which the
      asset can be utilised, are recognised. Future taxable profits that may support the recognition
      of deferred tax assets arising from deductible temporary differences include those that will
      arise from the reversal of existing taxable temporary differences, provided those differences
      relate to the same taxation authority and the same taxable entity, and are expected to reverse
      either in the same period as the expected reversal of the deductible temporary difference or in
      periods into which a tax loss arising from the deferred tax asset can be carried back or
      forward. The same criteria are adopted when determining whether existing taxable temporary
      differences support the recognition of deferred tax assets arising from unused tax losses and
      credits, that is, those differences are taken into account if they relate to the same taxation
      authority and the same taxable entity, and are expected to reverse in a period, or periods, in
      which the tax loss or credit can be utilised.
      The limited exceptions to recognition of deferred tax assets and liabilities are those
      temporary differences arising from goodwill not deductible for tax purposes, the initial
      recognition of assets or liabilities that affect neither accounting nor taxable profit (provided
      they are not part of a business combination), and temporary differences relating to
      investments in subsidiaries to the extent that, in the case of taxable differences, the Group
      controls the timing of the reversal and it is probable that the differences will not reverse in
      the foreseeable future, or in the case of deductible differences, unless it is probable that they
      will reverse in the future.
      The amount of deferred tax recognised is measured based on the expected manner of
      realisation or settlement of the carrying amount of the assets and liabilities, using tax rates
      enacted or substantively enacted at the end of the reporting period. Deferred tax assets and
      liabilities are no discounted.
      The carrying amount of a deferred tax asset is reviewed at the end of each reporting period
      and is reduced to the extent that it is no longer probable that sufficient taxable profits will be
      available to allow the related tax benefit to be utilised. Any such reduction is reversed to the
      extent that it becomes probable that sufficient taxable profits will be available.
      Additional income taxes that arise from the distribution of dividends are recognised when the
      liability to pay the related dividends is recognised.
                                                                                            China Vanke Co., Ltd.
                                                    Financial statements for the six months ended 30 June 2013
    2     Significant accounting policies (continued)
    (t)   Income tax (continued)
      Current tax balances and deferred tax balances, and movements therein, are presented
      separately from each other and are not offset. Current tax assets are offset against current tax
      liabilities, and deferred tax assets against deferred tax liabilities, if the Group has the legally
      enforceable right to set off current tax assets against current tax liabilities and the following
      additional conditions are met:
      -   in the case of current tax assets and liabilities, the Group intends either to settle on a net
          basis, or to realise the asset and settle the liability simultaneously; or
      -   in the case of deferred tax assets and liabilities, if they relate to income taxes levied by
          the same taxation authority on either:
          -          the same taxable entity; or
          -    different taxable entities, which, in each future period in which significant amounts
               of deferred tax liabilities or assets are expected to be settled or recovered, intend to
               realise the current tax assets and settle the current tax liabilities on a net basis or
               realise and settle simultaneously.
    (u)   Financial guarantees issued, provisions and contingent liabilities
    (i)   Financial guarantees issued
      Financial guarantees are contracts that require the issuer (i.e. the guarantor) to make specified
      payments to reimburse the beneficiary of the guarantee (the “holder”) for a loss the holder
      incurs because a specified debtor fails to make payment when due in accordance with the
      terms of a debt instrument.
      Where the Group issues a financial guarantee, the fair value of the guarantee (being the
      transaction price, unless the fair value can otherwise be reliably estimated) is initially
      recognised as deferred income within trade and other payables. Where consideration is
      received or receivable for the issuance of the guarantee, the consideration is recognised in
      accordance with the Group’s policies applicable to that category of asset. Where no such
      consideration is received or receivable, an immediate expense is recognised in profit or loss
      on initial recognition of any deferred income.
      The amount of the guarantee initially recognised as deferred income is amortised in profit or
      loss over the term of the guarantee as income from financial guarantees issued. In addition,
      provisions are recognised in accordance with note 2(u)(ii) if and when (i) it becomes
      probable that the holder of the guarantee will call upon the Group under the guarantee, and
      (ii) the amount of that claim on the Group is expected to exceed the amount currently carried
      in trade and other payables in respect of that guarantee i.e. the amount initially recognised,
      less accumulated amortisation.
                                                                                              China Vanke Co., Ltd.
                                                      Financial statements for the six months ended 30 June 2013
    2       Significant accounting policies (continued)
    (u)     Financial guarantees issued, provisions and contingent liabilities (continued)
    (ii)    Other provisions and contingent liabilities
        Provisions are recognised for other liabilities of uncertain timing or amount when the Group
        has a legal or constructive obligation arising as a result of a past event, it is probable that an
        outflow of economic benefits will be required to settle the obligation and a reliable estimate
        can be made. Where the time value of money is material, provisions are stated at the present
        value of the expenditure expected to settle the obligation.
        Where it is not probable that an outflow of economic benefits will be required, or the amount
        cannot be estimated reliably, the obligation is disclosed as a contingent liability, unless the
        probability of outflow of economic benefits is remote. Possible obligations, whose existence
        will only be confirmed by the occurrence or non-occurrence of one or more future events are
        also disclosed as contingent liabilities unless the probability of outflow of economic benefits
        is remote.
    (v)     Revenue recognition
        Revenue is measured at the fair value of the consideration received or receivable. Provided it
        is probable that the economic benefits will flow into the Group and the revenue and costs, if
        applicable, can be measured reliably, revenue is recognised in profit or loss as follows:
    (i)     Sale of properties
        Revenue arising from the sale of properties is recognised upon the signing of the sale and
        purchase agreement, the receipt of the deposits and confirmation of arrangement of
        settlement of remaining sales proceeds or the achievement of status ready for hand-over to
        customers as stipulated in the sale and purchase agreement, whichever is the later. Deposits
        and instalments received on properties sold prior to the date of revenue recognition are
        presented as “Receipts in advance” under “Trade and other payables”.
    (ii)    Provision of services
        Revenue from services is recognised when services are rendered.
    (iii)   Contract revenue
        When the outcome of a construction contract can be estimated reliably:
        -   revenue from a fixed price contract is recognised using the percentage of completion
            method, measured by reference to the percentage of contract costs incurred to date to
            estimated total contract costs for the contract; and
        -   revenue from a cost plus contract is recognised by reference to the recoverable costs
            incurred during the period plus an appropriate proportion of the total fee, measured by
            reference to the proportion that costs incurred to date bear to the estimated total costs of
            the contract.
        When the outcome of a construction contract cannot be estimated reliably, revenue is
        recognised only to the extent of contract costs incurred that it is probable will be recoverable.
                                                                                             China Vanke Co., Ltd.
                                                     Financial statements for the six months ended 30 June 2013
    2       Significant accounting policies (continued)
    (v)     Revenue recognition (continued)
    (iv)    Rental income from operating leases
        Rental income receivable under operating leases is recognised in profit or loss in equal
        instalments over the periods covered by the lease term, except where an alternative basis is
        more representative of the pattern of benefits to be derived from the use of the leased asset.
        Lease incentives granted are recognised in profit or loss as an integral part of the aggregate
        net lease payments receivable. Contingent rentals are recognised as income in the accounting
        period in which they are earned.
    (v)     Dividend income
        -   Dividend income from unlisted investments is recognised when the shareholder’s right
            to receive payment is established.
        -   Dividend income from listed investments is recognised when the share price of the
            investment goes ex-dividend.
    (vi)    Interest income
        Interest income is recognised as it accrues using the effective interest method.
    (vii)   Government grants
        Government grants are recognised in the statement of financial position initially when there
        is reasonable assurance that they will be received and that the Group will comply with the
        conditions attaching to them. Grants that compensate the Group for expenses incurred are
        recognised as revenue in profit or loss on a systematic basis in the same periods in which the
        expenses are incurred. Grants that compensate the Group for the cost of an asset are deducted
        from the carrying amount of the asset and consequently are effectively recognised in profit or
        loss over the useful life of the asset by way of reduced depreciation expense.
    (w)     Translation of foreign currencies
        Foreign currency transactions during the period are translated at the foreign exchange rates
        ruling at the transaction dates. Monetary assets and liabilities denominated in foreign
        currencies are translated at the foreign exchange rates ruling at the end of the reporting
        period. Exchange gains and losses are recognised in profit or loss.
        Non-monetary assets and liabilities that are measured in terms of historical cost in a foreign
        currency are translated using the foreign exchange rates ruling at the transaction dates.
        Non-monetary assets and liabilities denominated in foreign currencies that are stated at fair
        value are translated using the foreign exchange rates ruling at the dates the fair value was
        determined.
                                                                                             China Vanke Co., Ltd.
                                                     Financial statements for the six months ended 30 June 2013
    2     Significant accounting policies (continued)
    (w)   Translation of foreign currencies (continued)
      The results of foreign operations are translated into Renminbi at the exchange rates
      approximating the foreign exchange rates ruling at the dates of the transactions. Statement of
      financial position items are translated into Renminbi at the closing foreign exchange rates at
      the end of the reporting period. The resulting exchange differences are recognised in other
      comprehensive income and accumulated separately in equity in the exchange reserve.
      On disposal of a foreign operation, the cumulative amount of the exchange differences
      relating to that foreign operation is reclassified from equity to profit or loss when the profit or
      loss on disposal is recognised.
    (x)   Borrowing costs
      Borrowing costs that are directly attributable to the acquisition, construction or production of
      an asset which necessarily takes a substantial period of time to get ready for its intended use
      or sale are capitalised as part of the cost of that asset. Other borrowing costs are expensed in
      the period in which they are incurred.
      The capitalisation of borrowing costs as part of the cost of a qualifying asset commences
      when expenditure for the asset is being incurred, borrowing costs are being incurred and
      activities that are necessary to prepare the asset for its intended use or sale are in progress.
      Capitalisation of borrowing costs is suspended or ceases when substantially all the activities
      necessary to prepare the qualifying asset for its intended use or sale are interrupted or
      complete.
    (y)   Related parties
    (a)   A person, or a close member of that person’s family, is related to the Group if that person:
      (i)     has control or joint control over the Group;
      (ii)    has significant influence over the Group; or
      (iii)   is a member of the key management personnel of the Group or the Group’s parent.
    (b)   An entity is related to the Group if any of the following conditions applies:
      (i)     The entity and the Group are members of the same group (which means that each
              parent, subsidiary and fellow subsidiary is related to the others).
      (ii)    One entity is an associate or joint venture of the other entity (or an associate or joint
              venture of a member of a group of which the other entity is a member).
      (iii)   Both entities are joint ventures of the same third party.
      (iv)    One entity is a joint venture of a third entity and the other entity is an associate of the
              third entity.
      (v)     The entity is a post-employment benefit plan for the benefit of employees of either
              the Group or an entity related to the Group.
                                                                                             China Vanke Co., Ltd.
                                                     Financial statements for the six months ended 30 June 2013
    2     Significant accounting policies (continued)
    (y)   Related parties (continued)
    (b)   An entity is related to the Group if any of the following conditions applies: (continued)
      (vi)    The entity is controlled or jointly controlled by a person identified in (a).
      (vii)   A person identified in (a)(i) has significant influence over the entity or is a member of
              the key management personnel of the entity (or of a parent of the entity).
      Close members of the family of a person are those family members who may be expected to
      influence, or be influenced by, that person in their dealings with the entity.
    (z)   Segments reporting
      Operating segments, and the amounts of each segment item reported in the financial
      statements, are identified from the financial information provided regularly to the Group’s
      most senior executive management for the purposes of allocating resources to, and assessing
      the performance of, the Group’s various lines of business and geographical locations.
      Individually material operating segments are not aggregated for financial reporting purposes
      unless the segments have similar economic characteristics and are similar in respect of the
      nature of products and services, the nature of production processes, the type or class of
      customers, the methods used to distribute the products or provide the services, and the nature
      of the regulatory environment. Operating segments which are not individually material may
      be aggregated if they share a majority of these criteria.
    3     Accounting judgement and estimates
    (a)   Critical accounting judgments in applying the Group’s accounting policies
      In the process of applying the Group’s accounting policies, management has made the
      following accounting judgements:
      (i)     Classification between investment properties and owner-occupied properties
              The Group determines whether a property qualifies as an investment property, and
              has developed criteria in making that judgement. Investment property is a property
              held to earn rentals or for capital appreciation or both. Therefore, the Group considers
              whether a property generates cash flows largely independently of the other assets held
              by the Group. Some properties comprise a portion that is held to earn rentals or for
              capital appreciation and another portion that is held for use in the production or
              supply of goods or services or for administrative purposes. If these portions could be
              sold separately or leased out separately under finance lease, the Group accounts for
              the portions separately. If the portions could not be sold separately, the property is an
              investment property only if an insignificant portion is held for use in the production
              or supply of goods or services or for administrative purposes. Judgement is made on
              an individual property basis to determine whether ancillary services are so significant
              that a property does not qualify as an investment property.
                                                                                          China Vanke Co., Ltd.
                                                  Financial statements for the six months ended 30 June 2013
    3     Accounting judgement and estimates (continued)
    (a)   Critical accounting judgments in applying the Group’s accounting policies (continued)
      (ii)   Classification between investment properties and properties held for sale
             The Group develops properties held for sale and properties held to earn rentals and/or
             for capital appreciation. Judgement is made by management on determining whether
             a property is designated as an investment property or a property held for sale. The
             Group considers its intention for holding the properties at the early development stage
             of the related properties. During the course of construction, the related properties
             under construction are accounted for as properties under development included in
             current assets if the properties are intended for sale after their completion, whereas,
             the properties are accounted for as investment properties under construction if the
             properties are intended to be held to earn rentals and/or for capital appreciation.
    (b)   Sources of estimation uncertainty
      Notes 14 and 31 contain information about the assumptions and their risk factors relating to
      goodwill impairment and fair value of financial instruments. Other key sources of estimation
      uncertainty are as follows:
      (i)    Properties for sale
             As explained in note 2(m), the Group’s properties for sale are stated at the lower of
             cost and net realisable value. Based on the Group’s recent experience and the nature
             of the subject properties, the Group makes estimates of the selling prices, the costs of
             completion in cases for properties held for development and properties under
             development, and the costs to be incurred in selling the properties based on prevailing
             market conditions.
             If there is an increase in costs to completion or a decrease in net sales value, the net
             realisable value will decrease and this may result in provision for properties for sale.
             Such provision requires the use of judgement and estimates. Where the expectation is
             different from the original estimate, the carrying value and provision for properties in
             the periods in which such estimate is changed will be adjusted accordingly.
             In addition, given the volatility of the PRC property market and the unique nature of
             individual properties, the actual outcomes in terms of costs and revenue may be
             higher or lower than that estimated at the end of the reporting period. Any increase or
             decrease in the provision would affect profit or loss in future years.
      (ii)   Impairment for trade and other receivables
             The Group estimates impairment losses for trade and other receivables resulting from
             the inability of the customers to make the required payments. The Group bases the
             estimates on the aging of the trade and other receivable balance, customer
             creditworthiness, and historical write-off experience. If the financial condition of the
             customers were to deteriorate, actual provisions would be higher than estimated.
                                                                                           China Vanke Co., Ltd.
                                                   Financial statements for the six months ended 30 June 2013
    3     Accounting judgement and estimates (continued)
    (b)   Sources of estimation uncertainty (continued)
      (iii)   Recognition of deferred tax assets
              Deferred tax assets in respect of tax losses and other deductible temporary differences
              carried forward are recognised and measured based on the expected manner of
              realisation or settlement of the carrying amount of the assets, using tax rates enacted
              or substantively enacted at the end of the reporting period. In determining the
              carrying amounts of deferred tax assets, expected taxable profits are estimated which
              involves a number of assumptions relating to the operating environment of the Group
              and require a significant level of judgement exercised by the directors. Any change in
              such assumptions and judgement would affect the carrying amounts of deferred tax
              assets to be recognised and hence the net profit in future years.
      (iv)    LAT
              As explained in note 9(a), LAT is levied on properties developed by the Group for
              sale, at progressive rates ranging from 30% to 60% on the appreciation of land value,
              which under the applicable regulations is calculated based on the proceeds of sales of
              properties less deductible expenditures including lease charges of land use rights,
              borrowing cost and relevant property development expenditures.Given the
              uncertainties of the calculation basis of land appreciation tax to be interpreted by the
              local tax bureau, the actual outcomes may be higher or lower than that estimated at
              the end of the reporting period. Any increase or decrease in estimates would affect
              profit or loss in future years.
    4     Revenue and segment reporting
    (a)   Revenue
      The principal activities of the Group are development and sale of properties in the PRC.
      Revenue mainly represents income from sale of properties, construction contract and
      property management and related services earned during the period, net of business tax and
      other sales related taxes and discounts allowed, and is analysed as follows:
                                                                             Six months ended 30 June
                                                                               2013              2012
                                                                            RMB’000        RMB’000
      Sale of properties                                                  37,870,769              27,847,524
      Construction contracts                                                 351,894                 635,963
      Property management and related services                               554,294                 330,713
      Others                                                                 163,852                 145,360
                                                                          38,940,809              28,959,560
      The Group’s customer base is diversified and does not have customer with whom
      transactions have exceeded 10% of the Group’s revenue.
                                                                                           China Vanke Co., Ltd.
                                                   Financial statements for the six months ended 30 June 2013
    4     Revenue and segment reporting (continued)
    (b)   Segment reporting
      The Group manages its business by divisions, which are organised by a mixture of both
      business lines (products and services) and geography. In a manner consistent with the way in
      which information is reported internally to the Group’s most senior executive management
      for the purpose of resource allocation and performance assessment, the Group has presented
      the following five reportable segments.
             Property development (Beijing region/Guangshen region/Shanghai region/Chengdu
             region): given the importance of the property development division to the Group, the
             Group’s property development business is segregated further into four reportable
             segments on a geographical basis, as the divisional managers for each of these regions
             report directly to the senior executive team. All the four segments mainly derive their
             revenue from development and sale of residential properties. The properties are
             mainly sold to individual customers; therefore, the Group does not have major
             customers. Currently the Group’s activities in this regard are carried out in the PRC.
             Details about the specific cities covered by each region are set out in note 4(b)(i).
             Property management: this segment provides property management and related
             services to purchasers and tenants of the Group’s own developed residential
             properties and shopping arcades, as well as those developed by the external property
             developers. Currently the Group’s activities in this regard are also carried out in the
             PRC.
      Although the operating segment of property management services does not meet any of the
      quantitative thresholds specified in IFRS 8, Operating Segments, management believes that
      information about the segment would be useful to users of the consolidated financial
      statements.
    (i)   Segment results, assets and liabilities
      For the purpose of assessing segment performance and allocating resources among segments,
      the Group’s most senior executive management monitors the results, assets and liabilities
      attributable to each reportable segment on the following bases:
      Segment assets include all tangible, intangible assets, other investments and current assets in
      Mainland China with the exception of deferred tax assets and other corporate assets.
      Segment liabilities include trade creditors, accruals, bank loans and borrowings from
      financial institutions, and the provision for the estimated losses to be borne by the Group in
      relation to the property management projects in Mainland China, but excluding deferred tax
      liabilities.
      Revenue and expenses are allocated to the reportable segments with reference to sales before
      sales tax generated by those segments and the expenses incurred by those segments or which
      otherwise arise from the depreciation or amortisation of assets attributable to those segments.
                                                                                                              China Vanke Co., Ltd.
                                                                         Financial statements for the six months ended 30 June 2013
    4     Revenue and segment reporting (continued)
    (b)   Segment reporting (continued)
    (i)   Segment results, assets and liabilities (continued)
      The measure used for reporting segment profit is the profit before CIT, excluding share of profit
      or loss of associates or joint ventures, dividend income, other income and other operating
      expenses in Mainland China, but including the provision for doubtful debts and the profit arising
      from the inter-segment transactions. LAT which is considered directly attributable to the sale of
      properties is deducted from the segment profit for the review by the Group’s most senior
      executive management.
      Inter-segment sales are priced with reference to prices charged to external parties for similar
      transactions.
                                                                     Real estate development (note (1))
                                             Beijing   Guangshen           Shanghai        Chengdu       Property
                                             region       region              region          region management             Total
                                           RMB’000     RMB’000           RMB’000       RMB’000      RMB’000         RMB’000
      For the six months ended 30
           June 2013
      Revenue from external customers,
           before sales taxes              6,686,301    14,654,280        8,162,741     11,230,582         620,892      41,354,796
      Inter-segment revenue                     -             -                -              -            315,087         315,087
      Reportable segment revenue,
          before sales taxes               6,686,301    14,654,280        8,162,741     11,230,582         935,979      41,669,883
      Reportable segment profit             766,779      3,010,550          791,191      2,172,434           1,711       6,742,665
      Interest income                       137,714        83,320            60,495         70,227           2,413         354,169
      Interest expenses                     190,169       148,113           195,612         92,624              24         626,542
      Share of profits less losses of
           associates and joint
           ventures (note (2))              133,573        68,624           173,702         15,109                -        391,008
      Reportable segment assets          122,727,314   131,203,750      124,347,998     80,208,458       2,751,338    461,238,858
      Reportable segment liabilities     103,143,399   115,494,386      111,662,729     71,245,251       2,377,495    403,923,260
                                                                                                        China Vanke Co., Ltd.
                                                                   Financial statements for the six months ended 30 June 2013
    4     Revenue and segment reporting (continued)
    (b)   Segment reporting (continued)
    (i)   Segment results, assets and liabilities (continued)
                                                              Real estate development (note (1))
                                          Beijing    Guangshen      Shanghai        Chengdu        Property
                                          region        region        region          region    management            Total
                                        RMB’000      RMB’000      RMB’000       RMB’000       RMB’000         RMB’000
      For the six months ended 30 June 2012
      Revenue from external customers,
           before sales taxes            7,169,322     8,608,262    8,271,885      6,274,232         389,598      30,713,299
      Inter-segment revenue                 55,744       192,493            -              -         290,926         539,163
      Reportable segment revenue,
          before sales taxes             7,225,066     8,800,755    8,271,885      6,274,232         680,524      31,252,462
      Reportable segment profit          1,348,769     2,146,954    1,305,043      1,119,931         (19,459)      5,901,238
      Interest income                     267,987        78,197        91,223         38,160           2,110         477,677
      Interest expenses                   211,277       288,386       250,863         26,182              38         776,746
      Share of profits less losses of
           associates and joint
           ventures (note (2))            303,681        82,346        (47,564)       31,459                -        369,922
      Reportable segment assets         94,626,710   108,695,974   85,640,978     54,718,202       1,842,118    345,523,982
      Reportable segment liabilities    79,713,170    94,455,810   74,739,427     49,540,815       1,628,694    300,077,916
      Note (1): Beijing region represents Beijing, Tianjin, Shenyang, Anshan, Dalian, Qingdao,
                Changchun, Yantai, Jilin, Taiyuan, Tangshan, Langfang, Fushun, Qinhuangdao and
                Jinzhong.
                     Guangshen region represents Shenzhen, Guangzhou, Qingyuan, Dongguan, Foshan,
                     Zhuhai, Zhongshan, Changsha, Xiamen, Fuzhou, Huizhou, Hainan, Putian, Quanzhou
                     and Nanning.
                     Shanghai region represents Shanghai, Hangzhou, Su’nan, Ningbo, Nanjing,
                     Zhenjiang, Nanchang, Hefei, Yangzhou, Jiaxing, Wuhu and Wenzhou.
                     Chengdu region represents Chengdu, Wuhan, Xi’an, Chongqing, Kunming, Guiyang,
                     Urumqi and Zhengzhou.
      Note (2): Share of losses less profits of associates and joint ventures that is attributable to head
                office and not allocated to the respective segments is RMB3 million.( share of profit
                less losses for the period ended 30 June 2012: RMB53 million)
                                                                                                China Vanke Co., Ltd.
                                                           Financial statements for the six months ended 30 June 2013
    4      Revenue and segment reporting (continued)
    (b)    Segment reporting (continued)
    (ii)   Reconciliation of reportable segment revenue, profit, assets and liabilities
                                                                                   Six months ended 30 June
                                                                                      2013                    2012
                                                                               RMB’000                RMB’000
       Revenue
       Reportable segment revenue                                             41,669,883              31,252,462
       Elimination of inter-segment revenue                                     (315,087)               (539,163)
       Unallocated revenue                                                        35,550                   9,693
       Sales taxes                                                            (2,449,537)             (1,763,432)
       Consolidated revenue                                                   38,940,809              28,959,560
       Profit
       Reportable segment profit                                               6,742,665                5,901,238
       Elimination of inter-segment profit                                       543,258                  (19,060)
       Share of profits less losses of associates and
         joint ventures                                                           387,629                 422,520
       Dividend income                                                              1,418                  27,324
       Other net income, excluding net exchange gain                               49,207                  69,907
       Other operating expenses, excluding provision
         for doubtful debts                                                      (21,046)                 (12,729)
       Unallocated expenses                                                     (569,719)                (340,526)
       LAT                                                                     1,647,152                1,514,309
       Consolidated profit before taxation                                     8,780,564                7,562,983
                                                                           30 June 2013 31 December 2012
                                                                              RMB’000         RMB’000
       Assets
       Reportable segment assets                                            461,238,858             407,352,376
       Elimination of inter-segment receivables                            (206,887,664)           (192,577,435)
       Unallocated assets                                                   178,171,423             164,319,915
       Consolidated total assets                                            432,522,617             379,094,856
       Liabilities
       Reportable segment liabilities                                       403,923,260             349,522,384
       Elimination of inter-segment payables                               (189,539,931)           (176,161,335)
       Unallocated liabilities                                              130,073,806             123,595,612
       Consolidated total liabilities                                       344,457,135             296,956,661
                                                                                            China Vanke Co., Ltd.
                                                       Financial statements for the six months ended 30 June 2013
    5   Other revenue
                                                                             Six months ended 30 June
                                                                               2013             2012
                                                                           RMB’000        RMB’000
    Interest income                                                           358,224                 367,774
    Dividend income                                                             1,418                  27,324
                                                                              359,642                 395,098
    6   Other net income
                                                                             Six months ended 30 June
                                                                               2013             2012
                                                                           RMB’000        RMB’000
    Penalty receipts, forfeited deposits and
       compensation from customers                                             26,818                   23,640
    Loss/(gain) on disposals of subsidiaries                                      (11)                  36,928
    Net loss on disposals of other investments                                 (1,493)                 (14,256)
    Net (loss)/gain on disposals of property,
      plant and equipment                                                       (5,016)                      33
    Net realised and unrealised gain/(loss) on financial
      derivatives                                                               1,464                   (2,271)
    Net exchange (loss)/gain                                                  (16,006)                   4,780
    Other sundry income                                                        27,445                   25,833
                                                                               33,201                   74,687
    7   Other operating expenses
                                                                             Six months ended 30 June
                                                                               2013             2012
                                                                           RMB’000        RMB’000
    Provision for doubtful debts                                               77,899                 100,317
    Donations                                                                   2,420                     904
    Penalties and compensation to customers                                    12,513                  10,155
    Other sundry expenses                                                       6,113                   1,670
                                                                               98,945                 113,046
                                                                                                  China Vanke Co., Ltd.
                                                             Financial statements for the six months ended 30 June 2013
    8      Profit before taxation
       Profit before taxation is arrived at after charging / (crediting):
    (a)    Finance costs
                                                                                   Six months ended 30 June
                                                                                     2013             2012
                                                                                 RMB’000        RMB’000
       Interest on interest-bearing borrowings                                   2,992,052                2,606,843
       Less: Interest expense capitalised into
                    inventories (note)                                          (2,313,448)              (1,818,462)
                                                                                    678,604                 788,381
       Note: The borrowing costs have been capitalised at a rate of 8.2% per annum (six months
             ended 30 June 2012: 9.2%).
    (b)    Staff costs
                                                                                   Six months ended 30 June
                                                                                     2013             2012
                                                                                 RMB’000        RMB’000
       Salaries, wages and other benefits                                        1,469,805                1,013,852
       Contributions to defined contribution
            retirement plan                                                         164,207                 128,862
       Equity-settled share-based payment expenses                                   32,578                  57,814
                                                                                 1,666,590                1,200,528
    (c)   Other items
                                                                                   Six months ended 30 June
                                                                                     2013             2012
                                                                                 RMB’000        RMB’000
       Depreciation and amortisation                                                91,128                  76,439
       Impairment loss on trade and other receivables                               77,899                 100,317
       Cost of inventories                                                      26,580,291              18,383,496
       Operating lease charges in respect of properties                             43,840                  34,381
       Rental income from investment properties                                    (37,792)               (125,192)
                                                                                           China Vanke Co., Ltd.
                                                      Financial statements for the six months ended 30 June 2013
    9     Income tax in the consolidated statement of profit or loss
    (a)   Taxation in the consolidated income statement represents:
                                                                            Six months ended 30 June
                                                                              2013             2012
                                                                          RMB’000        RMB’000
      Current tax
      Provision for CIT and Hong Kong Profits Tax                         2,235,716                1,910,218
      Provision for LAT                                                   1,659,736                1,537,251
      Withholding tax                                                        21,138                   25,945
                                                                          3,916,590               3,473,414
                                                                    -------------------     -------------------
      Deferred tax
      Fair value adjustments arising from
           business combinations
      - CIT and Hong Kong Profits Tax                                        (15,553)                 (8,927)
      - LAT                                                                  (12,585)                (22,940)
      Accrual for LAT                                                       (110,886)                (53,672)
      Tax losses                                                            (312,965)               (294,789)
      Accruals for construction costs                                        (81,304)                 (6,919)
      Withholding tax                                                        (17,632)                 27,112
      Unrealised profits                                                     (37,706)                (51,947)
      Other temporary differences                                            116,714                 (33,827)
                                                                           (471,917)               (445,909)
                                                                    -------------------     -------------------
                                                                          3,444,673                3,027,505
    (i)   CIT and Hong Kong Profits Tax
      The provision for CIT is calculated based on the estimated taxable income at the rates
      applicable to each company in the Group. The income tax rates applicable to the principal
      subsidiaries in the PRC are 25% (2012: 25%).
      The provision for Hong Kong Profits Tax for 2013 is calculated at 16.5% (2012: 16.5%) of
      the estimated assessable profits for the period.
                                                                                                China Vanke Co., Ltd.
                                                           Financial statements for the six months ended 30 June 2013
    9       Income tax in the c consolidated statement of profit or loss (continued)
    (a)     Taxation in the consolidated income statement represents: (continued)
    (ii)    LAT
        LAT is levied on properties developed by the Group for sale, at progressive rates ranging
        from 30% to 60% on the appreciation of land value, which under the applicable regulations
        is calculated based on the proceeds of sale of properties less deductible expenditures
        including lease charges of land use rights, borrowing costs and relevant property
        development expenditures.
    (iii)   Withholding tax
        Withholding tax is levied on the overseas subsidiaries in respect of dividend distributions
        arising from profit of PRC subsidiaries earned after 1 January 2008 ranging from 5% to 10%.
    (b)     Reconciliation between tax expense and accounting profit at applicable tax rates:
                                                                                  Six months ended 30 June
                                                                                    2013             2012
                                                                               RMB’000         RMB’000
        Profit before taxation                                                 8,780,564        7,562,983
        Less: LAT                                                             (1,647,151)      (1,514,311)
        Profit before CIT and Hong Kong Profits Tax                            7,133,413                6,048,672
        Notional tax on profit before CIT and Hong Kong
             Profits Tax calculated at effective income tax
             rate of the relevant group entities concerned                     1,726,532                1,495,776
        Non-taxable income                                                       (97,262)                (105,630)
        Non-deductible expenses                                                  126,485                   88,950
        Effect of temporary difference not recognised                             41,767                   55,989
        Recognition of previously unrecognised tax losses                              -                  (21,891)
        CIT and Hong Kong Profits Tax                                          1,797,522                1,513,194
        LAT                                                                    1,647,151                1,514,311
        Income tax expense                                                     3,444,673                3,027,505
                                                                                                            China Vanke Co., Ltd.
                                                                       Financial statements for the six months ended 30 June 2013
    10    Other comprehensive income
    (a)   Tax effects relating to each component of other comprehensive income
                                           six months ended 30 June 2013                  six months ended 30 June 2012
                                       Before-tax           Tax    Net-of-tax         Before-tax           Tax    Net-of-tax
                                          amount        expense       amount             amount         benefit      amount
                                       RMB’000       RMB’000     RMB’000           RMB’000       RMB’000     RMB’000
                                                     (note 26(d))                                  (note 26(d))
      Exchange differences on
            translation of financial
            statements of overseas
            subsidiaries                  25,671              -           25,671         (73,372)               -      (73,372)
      Available-for-sale securities
      - net movement in fair
             value reserve                   598          (149)              449         (36,498)          9,124       (27,374)
      Other comprehensive
          income                          26,269          (149)           26,120       (109,870)           9,124      (100,746)
    (b)   Components of other comprehensive income, including reclassification adjustments
                                                                                             Six months ended 30 June
                                                                                               2013             2012
                                                                                           RMB’000        RMB’000
         Net movement in the fair value reserve during the
             period recognised in other comprehensive income                                        449                (27,374)
    11    Basic earnings per share
      The calculation of basic earnings per share is based on the profit attributable to equity
      shareholders of the Company of RMB4,556,304,906.89 (2012: RMB3,725,085,079.33) and
      the weighted average of 11,004,639,043.50 (2012: 10,995,210,218.00) shares in issue during
      the period.
      The Group has a share option scheme which was adopted on 25 April 2011 (see note 29).
      During the period, 18,171,851 share options have been exercised.
                                                                                                                                                     China Vanke Co., Ltd.
                                                                                                                Financial statements for the six months ended 30 June 2013
    12   Property, plant and equipment
                                    Hotel and                             Leasehold           Machinery           Electronic
                              other buildings     Improvements                 land           and motor            and other        Construction
                             held for own use       to premises          prepayment             vehicles          equipment          in progress                Total
                                    RMB’000         RMB’000             RMB’000            RMB’000            RMB’000            RMB’000               RMB’000
    Cost:
    At 1 January 2012               1,654,119           119,245             455,070             177,397             237,079              705,552             3,348,462
    Additions                          82,109            21,045               1,473              18,604              40,864              378,030               542,125
    Transfers                          32,464                 -                   -                   -                   -              (32,464)                    -
    Disposals                         (51,375)           (2,876)                  -             (10,999)            (14,713)                   -               (79,963)
    At 31 December 2012             1,717,317           137,414             456,543             185,002             263,230            1,051,118             3,810,624
                              -----------------   -----------------   -----------------   -----------------   -----------------   -----------------     -----------------
    At 1 January 2013               1,717,317           137,414             456,543             185,002             263,230            1,051,118             3,810,624
    Additions                          68,908            46,159                  35              21,254              23,392              173,724               333,472
    Transfers                           1,320               839                   -                   -                   -               (2,159)                    -
    Disposals                         (31,967)              (15)                  -             (10,573)             (2,910)                   -               (45,465)
    At 30 June 2013                 1,755,578           184,397             456,578             195,683             283,712            1,222,683             4,098,631
                              -----------------   -----------------   -----------------   -----------------   -----------------   -----------------     -----------------
                                                                                                                                                         China Vanke Co., Ltd.
                                                                                                                    Financial statements for the six months ended 30 June 2013
    12   Property, plant and equipment (continued)
                                        Hotel and                             Leasehold           Machinery           Electronic
                                  other buildings     Improvements                 land           and motor            and other        Construction
                                 held for own use       to premises          prepayment             vehicles          equipment          in progress                Total
                                        RMB’000         RMB’000             RMB’000            RMB’000            RMB’000            RMB’000               RMB’000
    Accumulated depreciation:
    At 1 January 2012                   257,374              62,937              19,596              84,596             146,070                     -              570,573
    Charge for the year                  71,084              24,671              10,100              20,057              31,901                     -              157,813
    Written back on disposals           (26,589)             (2,620)                 -               (8,245)            (12,848)                    -              (50,302)
    At 31 December 2012                 301,869              84,988              29,696              96,408             165,123                     -              678,084
                                  -----------------   -----------------   -----------------   -----------------   -----------------   -----------------     -----------------
    At 1 January 2013                   301,869              84,988              29,696              96,408             165,123                     -              678,084
    Charge for the period                24,976              19,156               5,054              13,009              17,242                     -               79,437
    Written back on disposals            (3,187)                 (3)                 -               (8,432)             (2,063)                    -              (13,685)
    At 30 June 2013                     323,658             104,141              34,750             100,985             180,302                     -              743,836
                                  -----------------   -----------------   -----------------   -----------------   -----------------   -----------------     -----------------
    Net book value:
    At 30 June 2013                   1,431,920              80,256             421,828              94,698             103,410            1,222,683             3,354,795
    At 31 December 2012               1,415,448              52,426             426,847              88,594              98,107            1,051,118             3,132,540
                                                                                               China Vanke Co., Ltd.
                                                          Financial statements for the six months ended 30June 2013
    13    Investment properties
                                                                      30 June 2013 31 December 2012
                                                                         RMB’000         RMB’000
      Cost:
      At 1 January                                                        1,754,029                1,155,944
      Additions                                                             122,443                1,286,081
      Transfers                                                                  -                  (675,300)
      Disposals                                                                  -                   (12,696)
      At balance sheet date                                               1,876,472               1,754,029
                                                                    -------------------     -------------------
      Accumulated depreciation:
      At 1 January                                                            39,893                   29,840
      Charge for the period                                                    4,587                   10,599
      Written back on disposals                                                    -                     (546)
      At balance sheet date                                                   44,480                  39,893
                                                                    -------------------     -------------------
      Net book value:
      At balance sheet date                                               1,831,992                1,714,136
      Investment properties include those under development at the end of the reporting period
      with carrying amount of RMB803 million (31 December 2012: RMB684 million).
      Investment properties comprise certain commercial properties that are leased to third parties.
      The directors, having regard to recent market transactions of similar properties in the same
      location as the Group’s investment properties, consider the estimated fair value of the
      investment properties, together with leasehold land on which the investment properties
      located as set out in note 18, to be RMB4,050 million (31 December 2012: RMB4,080
      million).
    (a)   The analysis of net book value of investment properties is set out as follows:
                                                                      30 June 2013 31 December 2012
                                                                         RMB’000         RMB’000
      In the PRC, held on leases of
      - Between 10 and 50 years                                              615,152                 686,918
      - Over 50 years                                                        213,451                 124,905
                                                                            828,603                 811,823
                                                                    -------------------     ------------------
      In Hong Kong, held on leases of
      - Over 50 years                                                     1,003,389                  902,313
                                                                    -------------------     -------------------
                                                                          1,831,992                1,714,136
                                                                                              China Vanke Co., Ltd.
                                                         Financial statements for the six months ended 30June 2013
    13    Investment properties (continued)
    (b)   The Group leases out investment properties under operating leases. The leases typically run
      for an initial period of two to twenty years. None of the leases includes contingent rentals.
      The Group’s total future minimum lease payments under non-cancellable operating leases are
      receivable as follows:
                                                                     30 June 2013 31 December 2012
                                                                        RMB’000         RMB’000
      Within 1 year                                                          93,326                  57,496
      After 1 year but within 5 years                                       322,839                 314,671
      After 5 years                                                         451,564                 454,588
                                                                            867,729                 826,755
    14    Goodwill
      Goodwill arose from acquisition of Vanke Property (Overseas) Limited by the Group in
      2012. As at period end, an impairment test was performed by comparing the goodwill with
      its recoverable amount and no impairment was recorded.
    15    Interest in associates
                                                                     30 June 2013 31 December 2012
                                                                        RMB’000         RMB’000
      Share of net assets                                                4,705,397                2,915,844
      The following list contains only the particulars of associates, all of which are unlisted
      corporate entities, which principally affected the results or assets of the Group.
                                                                                            China Vanke Co., Ltd.
                                                       Financial statements for the six months ended 30June 2013
    15   Interest in associates (continued)
                                                                                 Proportion of
                                                                              ownership interest
                                                        Place of          Group’s
                                                   incorporation          effective          Principal
    Name of company                               and operation           interest            activity
    Beijing Jinyu Vanke Property                          PRC                 49%               Property
          Development Company Limited                                                        development
    Wuhan Golf City Garden Real Estate                    PRC                 49%               Property
          Company Limited (note 1)                                                           development
    Shanghai Nandu Baima Real Estate                      PRC                 49%               Property
           Company Limited                                                                   development
    Chengdu Yihang Vanke Binjiang Real                    PRC                 49%               Property
          Estate Company Limited (note 1)                                                    development
    Hefei Yihang Vanke Real Estate                        PRC                 50%               Property
          Company Limited (note1, 2)                                                         development
    Suzhou Zhonghang Vanke Changfeng                      PRC                 49%               Property
          Real Estate Company Limited (note 1)                                               development
    Changsha Oriental City Real Estate                    PRC                 20%               Property
          Company Limited                                                                    development
    Shanghai Zunyi Property Co., Ltd                      PRC                 30%               Property
                                                                                             development
    Foshan Shunde District Zhonghang                      PRC                 49%               Property
          Vanke Property Company Limited                                                     development
    Xiamen Wantefu Property Development                   PRC                 30%               Property
          Company Limited                                                                    development
    Guangzhou Yinyejunrui Property                        PRC                 49%               Property
          Development Company Limited (note 1)                                               development
    Shanghai Jingyuan Property Development                PRC                 45%               Property
          Company Limited                                                                    development
    Langfang Kuangshijiye Property                        PRC                 50%               Property
          Development Company Limited (note 2)                                               development
    Shanghai Vanke Changning Property                     PRC                 49%               Property
          Development Company Limited (note 1)                                               development
    Ningbo Zhongwan Property Development                                                        Property
          Company Limited                                  PRC                 49%           development
    Shanghai Chongwan Property Development                PRC                 49%               Property
          Company Limited (note 1)                                                           development
    Shenyang Zhongtie Vanke Langyu Property               PRC                 49%               Property
          Development Company Limited (note 2)                                               development
    Chongqing Wanbin Property Development                 PRC                 45%               Property
          Company Limited (note 1)                                                           development
    Suzhou Kejian Property Development                    PRC                 49%               Property
          Company Limited (note 1)                                                           development
    Beijing Wuyuankesheng Property                        PRC                 49%               Property
          Development Company Limited                                                        development
    Beijing Jingtouyintai Property Development            PRC                 50%               Property
          Company Limited (note 2)                                                           development
    Guangzhou Wanshang Property                           PRC                 33%               Property
          Development Company Limited                                                        development
                                                                                                   China Vanke Co., Ltd.
                                                              Financial statements for the six months ended 30June 2013
    15   Interest in associates (continued)
                                                                                        Proportion of
                                                                                     ownership interest
                                                             Place of            Group’s
                                                        incorporation            effective          Principal
    Name of company                                    and operation             interest            activity
    Chongqing Zhonghang Vanke Yunling Property                    PRC                45%               Property
         Development Company Limited (note 1)                                                       development
    Chongqing Zhonghang Vanke Junjing Property                    PRC                45%               Property
         Development Company Limited (note 1)                                                       development
    Changchun Vanke Xizhigu Property                              PRC                50%               Property
         Development Company Limited (note 2)                                                       development
    Shenzhen Vanke Binhai Property                                PRC                50%               Property
         Company Limited(note 2)                                                                    development
    Foshan Changsheng Construction Technology                     PRC                20%           Construction
         Company Limited                                                                             technology
                                                                                                    research and
                                                                                                    development
    Beijing Wanhu Real Estate Development                         PRC                49%               Property
          Company Limited                                                                           development
    Hangzhou Dongyue Investment Management                        PRC                20%             Investment
          Company Limited                                                                           management
    Vankic Investment (Cayman Islands) Limited             Cayman Islands            40%             Investment
                                                                                                    Management
    Zhonghang Vanke Company Limited                               PRC                40%               Property
                                                                                                    development
    Notes:
    (1)       Except for the equity interest held directly, the Group also hold equity interest in
               these associates through Zhonghang Vanke Company Limited.
    (2)       Pursuant to the voting rights in the board of directors, the Group has significant
               influence in these entities.
    Summary financial information on associates:
                                                                                          six months ended
                                                   30 June 2013
                                                                                            30 June 2013
                                        Assets       Liabilities        Equity            Revenue       Profit
                                    RMB’000         RMB’000        RMB’000            RMB’000 RMB’000
    100 per cent                  55,568,798       43,959,156      11,609,642           2,956,157    355,918
    Group’s effective interest   24,501,197       19,795,800       4,705,397           1,456,012    198,699
                                                                                          six months ended
                                                 31 December 2012
                                                                                            30 June 2012
                                        Assets       Liabilities         Equity           Revenue       Profit
                                    RMB’000         RMB’000         RMB’000           RMB’000 RMB’000
    100 per cent                  46,329,081       38,100,386        8,228,695          3,301,176    499,680
    Group’s effective interest   20,996,384       18,080,540        2,915,844          1,622,622    256,481
                                                                                              China Vanke Co., Ltd.
                                                         Financial statements for the six months ended 30June 2013
    16   Interest in joint ventures
                                                                     30 June 2013 31 December 2012
                                                                        RMB’000         RMB’000
    Share of net assets                                                 4,252,463                4,043,247
    The following list contains only the particulars of joint ventures, all of which are unlisted
    corporate entities, which principally affected the results or assets of the Group.
                                                                                   Proportion of
                                                                                ownership interest
                                                          Place of          Group’s
                                                     incorporation          effective          Principal
    Name of company                                 and operation           interest            activity
    Shanghai Jialai Real Estate Development                 PRC                 49%               Property
         Company Limited (note)                                                               development
    Dongguan Vanke Property Company Limited                 PRC                 50%               Property
                                                                                              development
    Wuhan Vanke Qinganju Property Company                   PRC                 30%               Property
          Limited (note)                                                                      development
    Yunnan Vanke Chengtou Property Company                  PRC                 51%               Property
          Limited (note)                                                                      development
    Changsha Lingyu Real Estate Development                 PRC                 60%               Property
          Company Limited (note)                                                              development
    Changsha Lingyu Investment Company                      PRC                 60%               Property
          Limited (note)                                                                      development
    Beijing Zhongliang Vanke Real Estate                    PRC                 50%               Property
          Development Company Limited                                                          development
    Tianjin Diwan Investment Company                        PRC                 40%               Property
          Limited (note)                                                                      development
    Hangzhou Xiangge Investment Management                  PRC                 50%          Management
          Company Limited                                                                    and consulting
    Hangzhou Dongshang Property                             PRC                 50%               Property
          Development Company Limited                                                          development
    Zhuhai Haiyu Property Development                       PRC                 50%               Property
          Company Limited                                                                     development
    Tianjin Songke Real Estate Company                      PRC                 49%               Property
          Limited (note)                                                                      development
    Beijing Jingtou Vanke Property Development              PRC                 20%               Property
          Company Limited (note)                                                              development
    Fuyang Yongtong Property Development                    PRC                 20%               Property
          Company Limited (note)                                                              development
    Pingdu Vanke Property Company Limited (note)            PRC                 51%               Property
    Fuyang Donghe Property Company Limited (note)           PRC                 20%               Property
                                                                                              development
    Shanghai Wanzhicheng Property                           PRC                 50%               Property
         Development Company Limited                                                           development
                                                                                               China Vanke Co., Ltd.
                                                          Financial statements for the six months ended 30June 2013
    16   Interest in joint ventures (continued)
                                                                                    Proportion of
                                                                                 ownership interest
                                                          Place of           Group’s
                                                     incorporation           effective          Principal
    Name of company                                 and operation            interest            activity
    Shanghai Ledu Property Development                       PRC               33.3%          Property
       Company Limited (note)                                                             development
    Shanghai Wanshuang Construction Technology               PRC                 60%     Construction
         Company Limited (note)                                                           management
                                                                                             consulting
    Shanghai Vanke Yida Investment Management                PRC                 50%       Investment
         Company Limited                                                                  management
    Chongqing Liangjiang Vanke Investment                    PRC                 50%          Property
         Company Limited                                                                   developmet
    Wuhan Liantou Vanke Property Development                 PRC                 50%          Property
         Company Limited                                                                  development
    Tangshan Wanrun Real Estate Company Limited (note)       PRC                 40%          Property
                                                                                          development
    Wuhan Yayuan Vanke Property Company Limited              PRC                 50%          Property
                                                                                          development
    Beijing Oriental Vanke Investment Management             PRC                 50%          Property
          Company Limited                                                                 development
    Shandong Xiaozhushan Construction                        PRC                 34% Tourism property
          Development Company Limited (note)                                              development
    Yunnan Zhelian Property Development Company              PRC                 23%          Property
          Limited (note)                                                                  development
    Zhejiang Nuoya Capital Management                        PRC                 49%          Property
          Company Limited (note)                                                          development
    Guangzhou Wanxuan Real Estate                            PRC                 51%          Property
          Company Limited (note)                                                          development
    Jinan Wanzhu Real Estate Development                     PRC                 50%          Property
          Company Limited                                                                 development
    Foshan Nanhai Wanhong Real Estate                        PRC                 50%          Property
          Company Limited                                                                 development
    Beijing Shoukai Vanke Real Estate                        PRC                 50%          Property
          Development Company Limited                                                     development
    Chengdu Vanke Nancheng Real Estate                       PRC                 50%          Property
          Development Company Limited                                                     development
    Fuyang Dongrun Property                                  PRC                 50%          Property
          Company Limited                                                                 development
    Suzhou Wankang Property                                  PRC                 50%          Property
          Company Limited                                                                 development
    Wuhan Vanke Huajingyuan Property                         PRC                 50%          Property
          Company Limited                                                                 development
    201 Folsom Acquisition JV,L.P (note)                     USA                 71.5%        Property
                                                                                          development
    Sherwood Development Pte Ltd (note)                  Singapore               30%          Property
                                                                                          development
                                                                                              China Vanke Co., Ltd.
                                                         Financial statements for the six months ended 30June 2013
    16   Interest in joint ventures (continued)
    Notes: A contractual arrangement between the Group and the counterparties of these entities
    establishes joint control over the financial and operating policies of these entities.
    A Summary of the financial information on joint ventures – Group’s effective interest
                                                                     30 June 2013 31 December 2012
                                                                        RMB’000         RMB’000
    Non-current assets                                                   1,989,191              1,033,392
    Current assets                                                     54,822,952              16,422,935
    Non-current liabilities                                             (2,603,588)              (754,982)
    Current liabilities                                               (49,956,092)            (12,658,098)
    Net assets                                                          4,252,463                4,043,247
                                                                           Six months ended 30 June
                                                                             2013             2012
                                                                         RMB’000        RMB’000
    Income                                                               1,891,300               1,040,475
    Expenses                                                            (1,702,370)               (874,436)
    Profit for the period                                                  188,930                 166,039
    17   Other financial assets
                                                                     30 June 2013 31 December 2012
                                                                        RMB’000         RMB’000
    Available-for-sale securities in the PRC
    Equity securities
    - Unlisted                                                              94,508                   81,215
    - Listed in the PRC                                                        741                    4,764
                                                                             95,249                   85,979
                                                                                            China Vanke Co., Ltd.
                                                       Financial statements for the six months ended 30June 2013
    18   Other non-current assets
    The other non-current assets mainly represent prepayments for acquisitions of investees and
    prepayment for leasehold land on which the Group’s investment properties located.
    Movement of prepayment for leasehold land is analysed as follows:
                                                                    30 Jun. 2013           31 Dec. 2012
                                                                       RMB’000               RMB’000
    Cost:
    At 1 January                                                         675,300                       -
    Transfer                                                                   -                 675,300
    At balance sheet date                                               675,300                 675,300
                                                                 -------------------     -------------------
    Accumulated amortisation:
    At 1 January                                                          14,208                        -
    Charge for the period                                                  7,104                   14,208
    At balance sheet date                                                 21,312                  14,208
                                                                 -------------------     -------------------
    Net book value:
    At balance sheet date                                                653,988                 661,092
    19   Inventories
                                                                   30 June 2013 31 December 2012
                                                                      RMB’000         RMB’000
    Properties held for development                                 94,099,623               76,733,826
    Properties under development                                   198,241,047              160,676,827
    Completed properties for sale                                   17,625,424               15,993,829
    Others                                                             260,254                  217,670
                                                                    310,226,348              253,622,152
                                                                                             China Vanke Co., Ltd.
                                                        Financial statements for the six months ended 30June 2013
    19    Inventories (continued)
    (a)   The analysis of carrying value of leasehold land held for property development for sale is
      as follows:
                                                                    30 June 2013 31 December 2012
                                                                       RMB’000         RMB’000
      In the PRC, held on lease of
      - Between 10 and 50 years                                       24,699,048               14,452,874
      - Over 50 years                                                134,373,833              131,311,363
                                                                     159,072,881              145,764,237
    (b)   The analysis of the amount of inventories recognised as an expense and included in profit
      or loss is as follows:
                                                                          Six months ended 30 June
                                                                            2013             2012
                                                                        RMB’000        RMB’000
      Carrying amount of inventories sold                              26,580,291              18,383,496
    (c)   The amount of properties held for development and properties under development expected
      to be recovered after more than one year is RMB158,200 million (2012: RMB115,592
      million).
    20    Trade and other receivables
                                                                    30 June 2013 31 December 2012
                                                                       RMB’000         RMB’000
      Trade debtors (note (a))                                          1,781,677                1,915,305
      Less: allowance for doubtful debts                                  (33,373)                 (28,756)
                                                                        1,748,304               1,886,549
      Other debtors                                                    20,722,845              10,784,562
      Amounts due from associates (note (b))                            4,222,342               5,642,821
      Amounts due from joint ventures (note (b))                        7,961,419               3,465,502
      Prepayments (note (c))                                           29,601,947              33,373,612
      Gross amount due from customers for
          contract work (note (d))                                       1,197,817               1,835,204
                                                                       65,454,674              56,988,250
                                                                                                  China Vanke Co., Ltd.
                                                             Financial statements for the six months ended 30June 2013
    20    Trade and other receivables (continued)
    (a)   As of the end of the reporting period, the ageing analysis of trade debtors (which are included
      in trade and other receivables), based on the date the trade debtors recognised and net of
      allowance for doubtful debts, is as follows:
                                                                         30 June 2013 31 December 2012
                                                                            RMB’000         RMB’000
      Within 1 year                                                          1,482,839                1,653,991
      1 to 2 years                                                             152,370                  154,308
      2 to 3 years                                                              98,284                   55,874
      Over 3 years                                                              14,811                   22,376
                                                                             1,748,304                1,886,549
      The Group’s credit policy is set out in note 31(a).
      Trade debtors that were past due but not impaired relate to a number of independent debtors
      that have a good track record with the Group. Based on the past experience, management
      believes that no impairment allowance is necessary in respect of these balances as there has
      not been a significant change in credit quality and the balances are still considered fully
      recoverable. The Group does not hold any collateral over these balances.
    (b)   The amounts due from associates and joint ventures as at 30 June 2013 include an amount of
      RMB5,664 million (2012: RMB5,713 million) which are interest bearing at market rate,
      unsecured and repayable on demand. The interest income from these associates and joint
      ventures amounts to RMB285 million (2012 January to June: RMB95 million) in 2013. The
      remaining amounts due from associates and joint ventures are unsecured, interest free and
      repayable on demand.
    (c)   The balance includes prepayments for leasehold land of RMB12,919 million (2012:
      RMB22,326 million).
    (d)   The aggregate amount of costs incurred plus recognised profits less recognised losses to date,
      included in the gross amount due from customers for contract work at 30 June 2013, is
      RMB2,587 million (2012: RMB2,213 million).
    21    Pledged deposits
      The balance mainly represents the guarantee deposits in respect of mortgage loans related to
      property sale.
    22    Cash and cash equivalents
                                                                         30 June 2013 31 December 2012
                                                                            RMB’000         RMB’000
      Cash at bank and on hand                                              36,247,513              51,120,224
                                                                                                China Vanke Co., Ltd.
                                                           Financial statements for the six months ended 30June 2013
    23   Bank loans and borrowings from financial institutions
    This note provides information about the contractual terms of the Group’s bank loans and
    borrowings from financial institutions. For more information about the Group’s exposure to
    interest rate risk, please refer to note 31(c).
                                                                       30 June 2013 31 December 2012
                                                                          RMB’000         RMB’000
    Current
    Secured
    - Bank loans (note (a))                                               1,354,016                3,358,380
    - Borrowings from financial institutions (note (b))                   1,400,000                2,690,400
    - Corporate bonds (note (c))                                          2,998,337                2,985,306
                                                                           5,752,353               9,034,086
                                                                     -------------------     -------------------
    Guaranteed
    - Borrowings from financial institutions (note (b))                      320,000                           -
                                                                              320,000                           -
                                                                      -------------------     -------------------
    Unsecured
    - Bank loans                                                          6,057,030              10,247,981
    - Borrowings from financial institutions (note (b))                  29,825,337              13,378,980
    - Corporate bonds (note (c))                                          2,899,670               2,896,312
                                                                          38,782,037              26,523,273
                                                                     -------------------     -------------------
                                                                          44,854,390              35,557,359
    Non-current
    Secured
    - Bank loans (note (a))                                               3,250,020                5,055,824
    - Corporate bonds (note (c))                                          4,831,780                        -
                                                                           8,081,800               5,055,824
                                                                     -------------------     -------------------
    Guaranteed
    - Bank loans (note (a))                                                  300,000                 190,000
    - Borrowings from financial institutions (note (b))                            -                 320,000
                                                                             300,000                 510,000
                                                                     -------------------     -------------------
                                                                                                 China Vanke Co., Ltd.
                                                            Financial statements for the six months ended 30June 2013
    23    Bank loans and borrowings from financial institutions (continued)
                                                                        30 June 2013 31 December 2012
                                                                           RMB’000         RMB’000
      Unsecured
      - Bank loans                                                         10,619,470              10,190,210
      - Borrowings from financial institutions (note (b))                  10,280,760              20,280,036
                                                                           20,900,230              30,470,246
                                                                      -------------------     -------------------
                                                                           29,282,030              36,036,070
      At 30 June, non-current interest-bearing loans and borrowings and corporate bonds were
      repayable as follows:
                                                                        30 June 2013 31 December 2012
                                                                           RMB’000         RMB’000
      After 1 year but within 2 years                                      14,968,950              27,286,992
      After 2 years but within 5 years                                     14,313,080               8,749,078
                                                                           29,282,030              36,036,070
      Notes:
    (a)   Bank loans
      The secured bank loans are secured over certain properties held for development and
      investment properties with aggregate carrying value of RMB20,783 million (2012:
      RMB11,079 million) or pledged by the shares of interest in certain subsidiaries of the Group.
    (b)   Borrowings from financial institutions
                                                                        30 June 2013 31 December 2012
                                                                           RMB’000         RMB’000
      Current
      Proceeds                                                             31,748,815              16,326,322
      Transaction costs                                                      (203,478)               (256,942)
                                                                           31,545,337              16,069,380
      Non-current
      Proceeds                                                             10,304,198              20,760,429
      Transaction costs                                                       (23,438)               (160,393)
                                                                           10,280,760              20,600,036
                                                                                               China Vanke Co., Ltd.
                                                          Financial statements for the six months ended 30June 2013
    23    Bank loans and borrowings from financial institutions (continued)
    (b)   Borrowings from financial institutions(continued)
      The secured borrowings from financial institutions are pledged by the shares of interest in
      certain subsidiaries of the Group.
      The guaranteed borrowings from financial institutions are guaranteed by third party with nil
      consideration.
    (c)   Corporate bonds
      Current                                                                  30 June 2013
                                                                         No.101688       No.101699
                                                                             Bonds           Bonds
                                                                          RMB’000        RMB’000
      At 1 January                                                        2,896,312                2,985,306
      Transaction costs amortised                                             3,358                   13,031
      At 30 June                                                          2,899,670                2,998,337
                                                                            31 December 2012
                                                                         No.101688       No.101699
                                                                             Bonds           Bonds
                                                                          RMB’000        RMB’000
      At 1 January                                                        2,889,947                2,960,450
      Transaction costs amortised                                             6,365                   24,856
      At 31 December                                                      2,896,312                2,985,306
      In September 2008, the Company issued two series of corporate bonds, namely the “No.
      101688 Bonds” and the “No. 101699 Bonds”, amounting to RMB 5,900 million. Both Bonds
      are listed on the Shenzhen Stock Exchange.
      The No. 101688 Bonds are with no guarantee and interest bearing at 7% per annum payable
      in arrears on 6 September 2009, 2010 and 2011. In accordance with the terms of the No.
      101688 Bonds, on 6 September 2011 the Company has the option to adjust upward the
      interest rate of the Bonds for the next two years by maximum of 100 basis points and each of
      the Bond is, at the option of the bondholder, redeemable at its par value of RMB 100 each on
      the same date. If not being redeemed on 6 September 2011, the Bonds are repayable on 6
      September 2013 and the interest for the next two years is payable in arrears on 6 September
      2012 and 2013. None of the No. 101688 Bonds were early redeemed by the bondholders on 6
      September 2011.
      The No. 101699 Bonds are guaranteed by the China Construction Bank Shenzhen branch and
      are repayable on 6 September 2013. The Bonds are interest bearing at 5.5% per annum
      payable in arrears on 6 September 2009, 2010, 2011, 2012 and 2013.
                                                                                             China Vanke Co., Ltd.
                                                        Financial statements for the six months ended 30June 2013
    23    Bank loans and borrowings from financial institutions (continued)
    (c)   Corporate bonds(continued)
      Non-current                                                                           30 June 2013
                                                                                               RMB’000
      At 1 January                                                                                       -
      Principle                                                                                  4,825,162
      Transaction costs amortised                                                                    6,618
      At 30 June                                                                                 4,831,780
      On 13 March 2013, the Company issued to institutional investors US$800,000,000 corporate
      bonds, with a 5-year term and a fixed coupon rate of 2.625% per annum. The interest payable
      semi-annually is calculated on a simple interest basis (as opposed to compound interest).
      Vanke Real Estate (Hong Kong) Company Limited, a subsidiary of the Company, provided
      an irrevocable joint liability guarantee for the corporate bonds.
    24    Financial derivatives
                                                                    30 June 2013 31 December 2012
                                                                       RMB’000         RMB’000
      Interest rate swaps                                                   13,818                  25,761
                                                                                               China Vanke Co., Ltd.
                                                          Financial statements for the six months ended 30June 2013
    25    Trade and other payables
                                                                      30 June 2013 31 December 2012
                                                                         RMB’000         RMB’000
      Trade creditors and bills payable                                 59,261,263               49,838,127
      Other payables and accruals                                       38,776,681               31,839,905
      Amounts due to associates                                          1,178,597                  907,773
      Amounts due to joint ventures                                      3,286,357                1,919,788
      Receipts in advance                                              159,401,788              130,989,093
      Gross amount due to customers for contract
        work                                                                       -                   34,884
                                                                       261,904,686              215,529,570
      Included in trade and other payables is retention payable of RMB385 million (2012:
      RMB451 million) which are expected to be settled after one year.
      The amounts due to associates and joint ventures include an amount of RMB2,538 million
      (2012: RMB959 million) which are interest bearing at market rate, unsecured and repayable
      on demand. The interest expenses to these associates and joint ventures amounted to RMB27
      million (2012 January to June: RMB31 million) for the period ended 30 June 2013. The
      remaining amounts due to associates and joint ventures are unsecured, interest free and
      repayable on demand.
    26    Income tax in the consolidated statement of financial position
    (a)   Current taxation in the consolidated statement of financial position represents:
                                                                      30 June 2013 31 December 2012
                                                                         RMB’000         RMB’000
      CIT and Hong Kong Profits Tax                                       1,426,697                2,873,002
      LAT                                                                 5,901,710                5,847,874
                                                                          7,328,407                8,720,876
      LAT provisions have been made pursuant to Guo Shui Fa (2006) No. 187 Circular of State
      Administration of Taxation on Relevant Issues of Settlement and Management of Land
      Appreciation Tax for Real Estate Developers. The Group considers the timing of settlement
      is dependent on the practice of local tax bureaus. As a result of the uncertainty of timing of
      payment of LAT, the provisions have been recorded as current liabilities as at 30 June 2013
      and 31 December 2012.
                                                                                                  China Vanke Co., Ltd.
                                                             Financial statements for the six months ended 30June 2013
    26    Income tax in the statement of financial position (continued)
    (b)   Deferred tax assets
      Deferred tax assets are attributable to the items set out below:
                                                                         30 June 2013 31 December 2012
                                                                            RMB’000         RMB’000
      Tax losses                                                             1,342,491                1,029,526
      Bad debt provision and write-down of inventories                          54,378                   37,553
      Accruals for construction costs                                          342,987                  261,683
      Accrual for LAT                                                        1,383,681                1,272,795
      Unrealised profits                                                       419,327                  381,621
      Other temporary differences                                              113,992                  236,716
                                                                             3,656,856                3,219,894
      Deferred tax assets have not been recognised in respect of the following items:
                                                                         30 June 2013 31 December 2012
                                                                            RMB’000         RMB’000
      Tax losses                                                             1,074,601                 966,124
      Deductible temporary differences                                          92,503                  89,863
                                                                             1,167,104              1,055,987
      The tax losses will expire between 2013 and 2018. The deductible temporary differences will
      not expire under the current tax legislation. Deferred tax assets have not been recognised in
      respect of these items because it is not probable that future taxable profit will be available
      against which the Group can utilise the benefits therefrom.
    (c)   Deferred tax liabilities
      Deferred tax liabilities are attributable to the items set out below:
                                                                         30 June 2013 31 December 2012
                                                                            RMB’000         RMB’000
      Fair value adjustments on
           available-for-sale securities                                              149                         -
      Fair value adjustments arising from
           business combinations                                                929,895                  958,033
      Withholding tax                                                            51,390                   69,022
                                                                                981,434               1,027,055
                                                                                               China Vanke Co., Ltd.
                                                          Financial statements for the six months ended 30June 2013
    26    Income tax in the statement of financial position (continued)
    (d)   Movements in deferred taxation, net:
                                                                      30 June 2013 31 December 2012
                                                                         RMB’000         RMB’000
      At 1 January                                                        2,192,839                1,221,480
      Net credit to profit or loss (note 9(a))                              482,732                  962,235
      Net credit / (charge) to other comprehensive
           income (note 10(a))
                                                                                 (149)                  9,124
      At the balance sheet date                                           2,675,422                2,192,839
    27    Provisions
                                                                      30 June 2013 31 December 2012
                                                               &en