POLY REAL ESTATE GROUP CO., LTD.
Auditor’s Report and Financial Statements
(For the year ended December 31, 2013)
Contents Page
1. AUDITOR’S REPORT 1-2
2. FINANCIAL STATEMENTS
BALANCE SHEET 1-4
INCOME STATEMENT 5-6
STATEMENT OF CASH FLOWS 7-8
STATEMENT OF CHANGES IN OWNERS’ EQUITY 9-12
3. NOTES TO THE FINANCIAL STATEMENTS 1-148
Auditor’s Report Page 1
AUDITOR’S REPORT
PCPAR [2014] No. 710386
To all shareholders of Poly Real Estate Group Co., Ltd.:
We have audited the accompanying financial statements of Poly Real Estate Group Co., Ltd.
(hereinafter referred to as “the Company”), which comprise the balance sheet and consolidated
balance sheet as at December 31, 2013, the income statement and consolidated income
statement, the statement of cash flows and consolidated statement of cash flows and the
statement of changes in owners’ equity and consolidated statement of changes in owners’ equity
for the year then ended and notes to the financial statements.
Management’s responsibility for the financial statements
Management of the Company is responsible for the preparation and fair presentation of these
financial statements. This responsibility includes: (1) preparing the financial statements in
accordance with Accounting Standards for Business Enterprises to achieve fair presentation of
the financial statements; (2) designing, implementing and maintaining internal control relevant to the financial statements that are free from material misstatement, whether due to
fraud or error.
Auditor’s responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We
conducted our audit in accordance with Auditing Standards for Certified Public Accountants of
China. Those standards require that we comply with ethical requirements and plan and perform
the audit to obtain reasonable assurance whether the financial statements are free from material
misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and
disclosures in the financial statements. The procedures selected depend on the auditor’s
judgment, including the assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk assessments, we consider the
internal control relevant to the preparation and fair presentation of the financial statements in
order to design audit procedures that are appropriate in the circumstances, but not for the
purpose of expressing an opinion on the effectiveness of the internal control. An audit also
includes evaluating the appropriateness of accounting policies used and the reasonableness of
accounting estimates made by the management, as well as evaluating the overall presentation of
the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a
basis for our audit opinion.
Auditor’s Report Page 2
Opinion
In our opinion, the financial statements of the Company have been prepared, in all material
aspects, in accordance with Accounting Standards for Business Enterprises and present fairly
the financial position of the Company as of December 31, 2013, and the results of its operations
and cash flows of the Company for the year then ended.
BDO China Shu Lun Pan Certified Public Accountant of China:
Certified Public Accountants LLP
Certified Public Accountant of China:
Shanghai, China March 29, 2014
This auditor’s report and the accompanying notes to the financial statements are an English translation of the
Chinese auditor’s report. In case the English version does not conform to the Chinese version, the Chinese version
shall prevail.
Financial Statements Page 1
POLY REAL ESTATE GROUP CO., LTD.
BALANCE SHEET
December 31, 2013
(Expressed in Renminbi unless otherwise stated)
Asset Note 13 Balance as at
December 31, 2013
Balance as at
January 1, 2013
Current assets:
Monetary funds 4,102,069,720.57 7,097,116,519.52
Financial assets held for trading
Notes receivable
Accounts receivable 13.1 8,363,184.16 90,222,729.82
Prepayments 1,828,927,853.35 2,355,455,436.57
Interests receivable
Dividends receivable 526,906,936.33 16,416,469.00
Other receivables 13.2 49,448,567,701.54 29,200,630,539.96
Inventories 8,627,585,118.82 12,507,731,746.06
Non-current assets maturing within one year
Other current assets
Total current assets 64,542,420,514.77 51,267,573,440.93
Non-current assets:
Available-for-sale financial assets
Held-to-maturity investments
Long-term receivables
Long-term equity investments 13.3 9,600,443,368.66 6,609,465,500.86
Investment property 658,810,146.58 686,491,730.31
Fixed assets 98,357,675.06 102,386,474.00
Construction in progress
Project materials
Disposal of fixed assets
Productive biological assets
Oil and gas assets
Intangible assets 6,617,058.33 5,651,716.11
Development expenses
Goodwill
Long-term deferred expenses 10,833.32
Deferred income tax assets 28,671,331.15 2,852,171.09
Other non-current assets
Total non-current assets 10,392,910,413.10 7,406,847,592.37
Total assets 74,935,330,927.87 58,674,421,033.30
The accompanying notes form an integral part of these financial statements.
Legal Representative: Guanju Song Financial Director: Mingxin Zhu
Account in Charge: Xi Zhang
Financial Statements Page 2
POLY REAL ESTATE GROUP CO., LTD.
BALANCE SHEET (Continued)
December 31, 2013
(Expressed in Renminbi unless otherwise stated)
Liabilities and owners' equity (or shareholders'
equity) Note 13
Balance as at
December 31, 2013
Balance as at
January 1, 2013
Current liabilities:
Short-term borrowings
Financial liabilities held for trading
Notes payable
Accounts payable 624,378,877.75 546,990,984.36
Amounts received in advance 9,416,182,037.19 9,371,231,185.78
Employee compensation payable 16,799,536.54 11,495,277.35
Taxes and surcharges payable -497,399,894.63 -778,571,453.78
Interests payable 143,490,410.96
Dividends payable
Other payables 32,998,572,508.10 14,914,099,048.31
Non-current liabilities maturing within one year 3,175,594,740.00 6,417,408,479.56
Other current liabilities
Total current liabilities 45,734,127,804.95 30,626,143,932.54
Non-current liabilities:
Long-term borrowings 6,631,617,095.00 6,816,711,835.00
Bonds payable
Long-term payables
Special payables
Estimated liabilities
Deferred income tax liabilities
Other non-current liabilities
Total non-current liabilities 6,631,617,095.00 6,816,711,835.00
Total liabilities 52,365,744,899.95 37,442,855,767.54
Owners' equity (or shareholders' equity)
Paid-in capital (or share capital) 7,137,994,391.00 7,137,994,391.00
Capital reserves 10,820,303,569.43 10,718,421,936.27
Less: treasury stock
Special reserves
Surplus reserves 1,100,917,160.02 811,701,777.25
General risk reserves
Undistributed profit 3,510,370,907.47 2,563,447,161.24
Total owners' equity (or shareholders' equity) 22,569,586,027.92 21,231,565,265.76
Total liabilities and owners’ equity (or
shareholders’ equity) 74,935,330,927.87 58,674,421,033.30
The accompanying notes form an integral part of these financial statements.
Legal Representative: Guanju Song Financial Director: Mingxin Zhu
Account in Charge: Xi Zhang
Financial Statements Page 3
POLY REAL ESTATE GROUP CO., LTD. CONSOLIDATED BALANCE SHEET
December 31, 2013
(Expressed in Renminbi unless otherwise stated)
Asset Note 5 Balance as at
December 31, 2013
Balance as at
January 1, 2013
Current assets:
Monetary funds 5.1 33,752,969,830.80 32,672,702,564.71
Balances with clearing companies
Loans to banks and other financial institutions
Financial assets held for trading
Notes receivable 5.2 3,224,500.00 450,000.00
Accounts receivable 5.3 2,331,813,449.76 1,880,283,617.10
Prepayments 5.4 19,275,863,743.91 16,418,546,908.33
Premiums receivable
Reinsurance accounts receivable
Reinsurance contract reserves receivable
Interests receivable
Dividends receivable
Other receivables 5.5 7,736,887,404.08 2,512,219,395.55
Financial assets purchased under resale agreements
Inventories 5.6 239,907,295,955.86 189,643,823,082.97
Non-current assets maturing within one year
Other current assets
Total current assets 303,008,054,884.41 243,128,025,568.66
Non-current assets:
Disbursement of entrusted loans and advances
Available-for-sale financial assets
Held-to-maturity investments
Long-term receivables
Long-term equity investments 5.7 3,382,082,942.90 1,350,794,240.14
Investment property 5.8 4,714,890,472.13 4,717,957,237.12
Fixed assets 5.9 1,985,039,517.32 1,378,431,326.74
Construction in progress
Project materials
Disposal of fixed assets
Productive biological assets
Oil and gas assets
Intangible assets 5.10 14,535,584.92 10,865,134.46
Development expenses
Goodwill 5.11 10,342,507.30 10,342,507.30
Long-term deferred expenses 5.12 27,485,719.48 36,575,772.80
Deferred income tax assets 5.13 797,422,692.06 535,625,795.02
Other non-current assets
Total non-current assets 10,931,799,436.11 8,040,592,013.58
Total assets 313,939,854,320.52 251,168,617,582.24
The accompanying notes form an integral part of these financial statements.
Legal Representative: Guanju Song Financial Director: Mingxin Zhu
Account in Charge: Xi Zhang
Financial Statements Page 4
POLY REAL ESTATE GROUP CO., LTD.
CONSOLIDATED BALANCE SHEET (Continued)
December 31, 2013
(Expressed in Renminbi unless otherwise stated)
Liabilities and owners' equity (or shareholders' equity) Note 5 Balance as at
December 31, 2013
Balance as at
January 1, 2013
Current liabilities:
Short-term borrowings 5.15 1,370,000,000.00 1,348,000,000.00
Borrowings from central bank
Absorption of deposits and interbank deposit
Loans from banks and other financial institutions
Financial liabilities held for trading
Notes payable
Accounts payable 5.16 18,670,703,415.17 12,792,887,608.57
Amounts received in advance 5.17 107,167,841,700.08 90,547,363,466.08
Financial assets sold under repurchase agreements
Handling charges and commissions payable
Employee compensation payable 5.18 124,633,442.34 94,122,306.35
Taxes and surcharges payable 5.19 -6,218,525,196.99 -4,084,597,633.60
Interests payable 5.20 55,170,317.97 151,141,842.94
Dividends payable 5.21 4,812,626.00 6,158,426.00
Other payables 5.22 25,835,195,792.55 15,292,027,631.39
Reinsurance accounts payable
Reserves for insurance contracts
Receivings from vicariously traded securities
Receivings from vicariously sold securities
Non-current liabilities maturing within one year 5.23 19,624,724,743.00 24,324,029,407.39
Other current liabilities
Total current liabilities 166,634,556,840.12 140,471,133,055.12
Non-current liabilities:
Long-term borrowings 5.24 75,101,300,578.37 55,850,413,333.13
Bonds payable 5.25 2,989,548,695.82
Long-term payables
Special payables
Estimated liabilities
Deferred income tax liabilities 5.13 61,272,278.97 67,550,710.19
Other non-current liabilities
Total non-current liabilities 78,152,121,553.16 55,917,964,043.32
Total liabilities 244,786,678,393.28 196,389,097,098.44
Owners' equity (or shareholders' equity)
Share capital 5.26 7,137,994,391.00 7,137,994,391.00
Capital reserves 5.27 10,963,716,587.11 10,776,925,472.63
Less: treasury stock
Special reserves
Surplus reserves 5.28 1,100,917,160.02 811,701,777.25
General risk reserves
Undistributed profit 5.29 32,560,241,225.29 23,758,309,752.50
Foreign currency translation differences 1,449,354.82
Total equity attributable to owners of the parent company 51,762,869,363.42 42,486,380,748.20
Minority interest 17,390,306,563.82 12,293,139,735.60
Total owners' equity (or shareholders' equity) 69,153,175,927.24 54,779,520,483.80
Total liabilities and owners’ equity (or shareholders’
equity) 313,939,854,320.52 251,168,617,582.24
The accompanying notes form an integral part of these financial statements.
Legal Representative: Guanju Song Financial Director: Mingxin Zhu
Account in Charge: Xi Zhang
Financial Statements Page 5
POLY REAL ESTATE GROUP CO., LTD.
INCOME STATEMENT
Year of 2013
(Expressed in Renminbi unless otherwise stated)
Item Note 13 Year 2013 Year 2012
1. Operating income 9,151,433,041.21 2,361,370,940.29
Less: operating costs 13.4 5,680,516,660.96 1,591,071,765.66
Business taxes and surcharges 1,213,832,172.19 480,060,571.52
Selling expenses 180,207,718.71 130,127,693.19
Administrative expenses 225,915,583.07 179,956,195.20
Financial expenses -92,434,040.35 -147,075,209.40
Losses from asset impairment -5,084,885.18 1,606,064.01
Plus: gains from changes in fair value ("-" for losses)
Investment income ("-" for losses) 13.5 1,477,449,917.99 1,672,880,850.57
Including: income from investments in associates and joint
ventures 110,086,933.20 82,464,084.02
2.Operating profits ("-" for losses) 3,425,929,749.80 1,798,504,710.68
Plus: non-operating income 15,191,002.25 59,793,872.53
Less: non-operating expenses 22,265,987.39 4,016,800.09
Including: losses from disposal of non-current assets 19,424.52 55,359.61
3. Total profits ("-" for total losses) 3,418,854,764.66 1,854,281,783.12
Less: income tax expenses 526,700,936.95 14,767,624.23
4. Net profit ("-" for net loss) 2,892,153,827.71 1,839,514,158.89
5. Earnings per share:
(1) Basic earnings per share
(2) Diluted earnings per share
6. Other comprehensive income
7. Total comprehensive income 2,892,153,827.71 1,839,514,158.89
The accompanying notes form an integral part of these financial statements.
Legal Representative: Guanju Song Financial Director: Mingxin Zhu
Account in Charge: Xi Zhang
Financial Statements Page 6
POLY REAL ESTATE GROUP CO., LTD.
CONSOLIDATED INCOME STATEMENT
Year of 2013
(Expressed in Renminbi unless otherwise stated)
Item Note 5 Year 2013 Year 2012
1. Total operating income 5.30 92,355,524,195.85 68,905,756,710.27
Including: operating income 92,355,524,195.85 68,905,756,710.27
Interest income
Earned premiums
Income from handling charges and commissions
2. Total operating costs 5.30 76,983,752,453.96 55,923,551,361.24
Including: operating costs 62,655,215,219.51 43,972,081,799.46
Interest expenses
Handling charge and commission expenses
Surrender value
Net amount of compensation payout
Net amount withdrawn for insurance contract
reserves
Policy dividend payment
Reinsurance costs
Business taxes and surcharges 5.31 9,522,127,698.60 8,120,267,006.74
Selling expenses 5.32 2,185,176,436.97 1,645,610,859.05
Administrative expenses 5.33 1,575,818,588.79 1,222,704,124.65
Financial expenses 5.34 985,531,951.77 892,093,421.02
Losses from asset impairment 5.36 59,882,558.32 70,794,150.32
Plus: gains from changes in fair value ("-" for losses)
Investment income ("-" for losses) 5.35 635,052,586.69 411,368,972.97
Including: income from investments in associates
and joint ventures 631,751,353.83 400,210,811.42
Foreign exchange gains ("-" for losses)
3. Operating profits ("-" for losses) 16,006,824,328.58 13,393,574,322.00
Plus: non-operating income 5.37 182,283,960.89 189,444,545.43
Less: non-operating expenses 5.38 87,411,760.92 50,891,907.42
Including: losses from disposal of non-current assets 158,318.88 100,774.77
4. Total profits ("-" for total losses) 16,101,696,528.55 13,532,126,960.01
Less: income tax expenses 5.39 4,237,234,223.24 3,553,528,684.65
5. Net profit ("-" for net loss) 11,864,462,305.31 9,978,598,275.36
Including: net profit realized by combined party
before merger
Net profit attributable to owners of the parent
company 10,747,161,554.27 8,438,233,558.38
Minority interest income 1,117,300,751.04 1,540,364,716.98
6. Earnings per share:
(1) Basic earnings per share 5.40 1.51 1.18
(2) Diluted earnings per share 5.40 1.51 1.18
7. Other comprehensive income 5.41 -1,449,354.82 16,459.42
8. Total comprehensive income 11,863,012,950.49 9,978,614,734.78
Total comprehensive income attributable to owners
of the parent company 10,745,712,199.45 8,438,250,017.80
Total comprehensive income attributable to
minority shareholders 1,117,300,751.04 1,540,364,716.98
The accompanying notes form an integral part of these financial statements.
Legal Representative: Guanju Song Financial Director: Mingxin Zhu
Account in Charge: Xi Zhang
Financial Statements Page 7
POLY REAL ESTATE GROUP CO., LTD.
STATEMENT OF CASH FLOWS
Year of 2013
(Expressed in Renminbi unless otherwise stated)
Item Year 2013 Year 2012
1. Cash flows from operating activities:
Cash received from sale of goods and rendering of services 9,254,132,491.42 8,627,247,899.97
Refunds of taxes and surcharges
Cash received from other operating activities 115,648,415,165.64 87,638,373,024.83
Sub-total of cash inflows from operating activities 124,902,547,657.06 96,265,620,924.80
Cash paid for goods purchased and services received 1,859,818,411.41 3,184,628,291.13
Cash paid to and on behalf of employees 77,287,875.86 67,757,067.24
Cash paid for taxes and surcharges 1,173,878,441.63 953,171,136.27
Cash paid for other operating activities 116,929,344,156.62 89,064,683,238.82
Sub-total of cash outflows from operating activities 120,040,328,885.52 93,270,239,733.46
Net cash flow from operating activities 4,862,218,771.54 2,995,381,191.34
2. Cash flows from investing activities
Cash received from disposal of investments 120,000,000.00 70,264,029.34
Cash received from returns on investments 878,716,332.86 1,505,933,910.15
Net cash received from disposal of fixed assets, intangible
assets and other long-term assets 15,682.00 3,700.00
Net cash received from disposal of subsidiaries and other
business units
Cash received from other investing activities
Sub-total of cash inflows from investing activities 998,732,014.86 1,576,201,639.49
Cash paid to acquire and construct fixed assets, intangible
assets and other long-term assets 5,078,725.57 8,864,295.46
Cash paid for investments 3,022,734,750.00 782,460,000.00
Net cash paid to acquire subsidiaries and other business units
Cash paid for other investing activities
Sub-total of cash outflows from investing activities 3,027,813,475.57 791,324,295.46
Net cash flow from investing activities -2,029,081,460.71 784,877,344.03
3. Cash flows from financing activities
Cash from absorption of investments
Cash received from borrowings 3,910,000,000.00 7,045,000,000.00
Cash received from bonds issue
Cash received from other financing activities
Sub-total of cash inflows from financing activities 3,910,000,000.00 7,045,000,000.00
Cash paid for debt repayments 7,343,094,740.00 3,340,694,740.00
Cash paid for distribution of dividends and profits or payment
of interests 2,985,693,862.03 2,207,947,002.88
Cash paid for other financing activities 21,895,507.75 36,808,657.75
Sub-total of cash outflows from financing activities 10,350,684,109.78 5,585,450,400.63
Net cash flows from financing activities -6,440,684,109.78 1,459,549,599.37
4. Effect of fluctuation in exchange rate on cash and cash
equivalents
5. Net increase in cash and cash equivalents -3,607,546,798.95 5,239,808,134.74
Plus: balance of cash and cash equivalents at the beginning of
the period 7,097,116,519.52 1,857,308,384.78
6. Balance of cash and cash equivalents at the end of the
period 3,489,569,720.57 7,097,116,519.52
The accompanying notes form an integral part of these financial statements.
Legal Representative: Guanju Song Financial Director: Mingxin Zhu
Account in Charge: Xi Zhang
Financial Statements Page 8
POLY REAL ESTATE GROUP CO., LTD.
CONSOLIDATED STATEMENT OF CASH FLOWS
Year of 2013
(Expressed in Renminbi unless otherwise stated)
Item Note 5 Year 2013 Year 2012
1. Cash flows from operating activities:
Cash received from sale of goods and rendering of services 108,813,710,317.04 87,557,529,285.76
Net increase in deposits from customers and due from banks and other financial institutions
Net increase in borrowings from the central bank
Net increase in loans from other financial institutions
Cash received from receiving insurance premium of original insurance contracts
Net cash received from reinsurance business
Net increase in deposits and investments from policyholders
Net increase from disposal of financial assets held for trading
Cash received from interests, handling charges and commissions
Net increase in loans from banks and other financial institutions
Net capital increase in repurchase business
Refunds of taxes and surcharges
Cash received from other operating activities 5.42 15,461,547,458.14 9,908,086,904.28
Sub-total of cash inflows from operating activities 124,275,257,775.18 97,465,616,190.04
Cash paid for goods purchased and services received 98,055,416,580.85 74,198,622,524.73
Net increase in customers' loans and advances
Net increase in deposits with central bank and with banks and other financial institutions
Cash paid for original insurance contract claims
Cash paid for interests, handling charges and commissions
Cash paid for policy dividends
Cash paid to and on behalf of employees 1,995,195,904.90 1,455,948,827.21
Cash paid for taxes and surcharges 17,598,785,316.49 13,592,645,832.38
Cash paid for other operating activities 5.42 16,379,966,750.93 5,125,817,730.73
Sub-total of cash outflows from operating activities 134,029,364,553.17 94,373,034,915.05
Net cash flow from operating activities -9,754,106,777.99 3,092,581,274.99
2. Cash flows from investing activities
Cash received from disposal of investments 120,000,000.00 177,932,000.00
Cash received from returns on investments 87,301,232.86 2,503,893.11
Net cash received from disposal of fixed assets, intangible assets and other long-term assets 522,010.08 344,618.93
Net cash received from disposal of subsidiaries and other business units 27,396,996.48
Cash received from other investing activities
Sub-total of cash inflows from investing activities 207,823,242.94 208,177,508.52
Cash paid to acquire and construct fixed assets, intangible assets and other long-term assets 101,873,897.47 71,230,460.64
Cash paid for investments 1,629,000,000.00 300,000.00
Net increase in pledge loans
Net cash paid to acquire subsidiaries and other business units 702,799,424.43 130,457,552.38
Cash paid for other investing activities
Sub-total of cash outflows from investing activities 2,433,673,321.90 201,988,013.02
Net cash flow from investing activities -2,225,850,078.96 6,189,495.50
3. Cash flows from financing activities
Cash from absorption of investments 4,512,020,052.00 4,082,638,747.06
Including: cash received by subsidiaries from investments by minority shareholders 4,512,020,052.00 4,082,638,747.06
Cash received from borrowings 60,680,580,000.00 46,263,880,000.00
Cash received from bonds issue 3,013,185,429.55
Cash received from other financing activities
Sub-total of cash inflows from financing activities 68,205,785,481.55 50,346,518,747.06
Cash paid for debt repayments 46,713,665,086.15 31,941,893,910.10
Cash paid for distribution of dividends and profits or payment of interests 8,841,862,603.64 6,852,543,669.14
Including: dividends and profits paid to minority shareholders by subsidiaries 402,598,716.48 231,699,622.79
Cash paid for other financing activities 5.42 144,311,752.51 226,394,541.16
Sub-total of cash outflows from financing activities 55,699,839,442.30 39,020,832,120.40
Net cash flows from financing activities 12,505,946,039.25 11,325,686,626.66
4. Effect of fluctuation in exchange rate on cash and cash equivalents 6,149,987.12 2,961,731.53
5. Net increase in cash and cash equivalents 532,139,169.42 14,427,419,128.68
Plus: balance of cash and cash equivalents at the beginning of the period 32,580,034,779.81 18,152,615,651.13
6. Balance of cash and cash equivalents at the end of the period 33,112,173,949.23 32,580,034,779.81
The accompanying notes form an integral part of these financial statements.
Legal Representative: Guanju Song Financial Director: Mingxin Zhu
Account in Charge: Xi Zhang
Financial Statements Page 9
POLY REAL ESTATE GROUP CO., LTD.
STATEMENT OF CHANGES IN OWNERS' EQUITY
Year of 2013
(Expressed in Renminbi unless otherwise stated)
Item
Year 2013
Paid-in capital (or share
capital) Capital reserves
Less: treasury
stock Special reserves Surplus reserves
General risk
reserves Undistributed profit Total owners' equity
1. Balance at the end of last year 7,137,994,391.00 10,718,421,936.27 811,701,777.25 2,563,447,161.24 21,231,565,265.76
Plus: adjustments for changes in accounting policies
Correction of accounting errors in prior periods
Others
2. Balance at the beginning of the year 7,137,994,391.00 10,718,421,936.27 811,701,777.25 2,563,447,161.24 21,231,565,265.76
3. Increases/decreases in the current year (“-” for
decreases) 101,881,633.16 289,215,382.77 946,923,746.23 1,338,020,762.16
(1) Net profit 2,892,153,827.71 2,892,153,827.71
(2) Other comprehensive income
Sub-total of (1) and (2) 2,892,153,827.71 2,892,153,827.71
(3) Capital contributed or reduced by owners 101,881,633.16 101,881,633.16
a. Capital contributed by owners
b. Amounts of share-based payments recognized in
owners’ equity 101,881,633.16 101,881,633.16
c. Others
(4) Profit distribution 289,215,382.77 -1,945,230,081.48 -1,656,014,698.71
a. Provision of surplus reserves 289,215,382.77 -289,215,382.77
b. Provision of general risk reserves
c. Profit distributed to owners (or shareholders) -1,656,014,698.71 -1,656,014,698.71
d. Others
(5) Internal carry-forward of owners' equity
a. Conversion of capital reserves into paid-in capital (or
share capital)
b. Conversion of surplus reserves into paid-in capital (or
share capital)
c. Making up losses with surplus reserves
d. Others
(6) Special reserves
a. Provision in 2013
b. Use in 2013
(7) Others
4. Balance at the end of the period 7,137,994,391.00 10,820,303,569.43 1,100,917,160.02 3,510,370,907.47 22,569,586,027.92
The accompanying notes form an integral part of these financial statements.
Legal Representative: Guanju Song Financial Director: Mingxin Zhu Account in Charge: Xi Zhang
Financial Statements Page 10
POLY REAL ESTATE GROUP CO., LTD.
STATEMENT OF CHANGES IN OWNERS' EQUITY (Continued)
Year of 2013
(Expressed in Renminbi unless otherwise stated)
Item
Year 2012
Paid-in capital (or share
capital) Capital reserves
Less: treasury
stock Special reserves Surplus reserves
General risk
reserves Undistributed profit Total owners' equity
1. Balance at the end of last year 5,948,328,659.00 11,838,724,864.09 627,750,361.36 2,186,775,079.93 20,601,578,964.38
Plus: adjustments for changes in accounting policies
Correction of accounting errors in prior periods
Others
2. Balance at the beginning of the year 5,948,328,659.00 11,838,724,864.09 627,750,361.36 2,186,775,079.93 20,601,578,964.38
3. Increases/decreases in the current year (“-” for
decreases) 1,189,665,732.00 -1,120,302,927.82 183,951,415.89 376,672,081.31 629,986,301.38
(1) Net profit 1,839,514,158.89 1,839,514,158.89
(2) Other comprehensive income 2,028.00 2,028.00
Sub-total of (1) and (2) 2,028.00 1,839,514,158.89 1,839,516,186.89
(3) Capital contributed or reduced by owners 69,360,776.18 69,360,776.18
a. Capital contributed by owners
b. Amounts of share-based payments recognized in
owners’ equity 69,360,776.18 69,360,776.18
c. Others
(4) Profit distribution 183,951,415.89 -1,462,842,077.58 -1,278,890,661.69
a. Provision of surplus reserves 183,951,415.89 -183,951,415.89
b. Provision of general risk reserves
c. Profit distributed to owners (or shareholders) -1,278,890,661.69 -1,278,890,661.69
d. Others
(5) Internal carry-forward of owners' equity 1,189,665,732.00 -1,189,665,732.00
a. Conversion of capital reserves into paid-in capital (or
share capital) 1,189,665,732.00 -1,189,665,732.00
b. Conversion of surplus reserves into paid-in capital (or
share capital)
c. Making up losses with surplus reserves
d. Others
(6) Special reserves
a. Provision in 2012
b. Use in 2012
(7) Others
4. Balance at the end of the period 7,137,994,391.00 10,718,421,936.27 811,701,777.25 2,563,447,161.24 21,231,565,265.76
The accompanying notes form an integral part of these financial statements.
Legal Representative: Guanju Song Financial Director: Mingxin Zhu Account in Charge: Xi Zhang
Financial Statements Page 11
POLY REAL ESTATE GROUP CO., LTD.
CONSOLIDATED STATEMENT OF CHANGES IN OWNERS' EQUITY
Year of 2013
(Expressed in Renminbi unless otherwise stated)
Item
Year 2013
Equity attributable to owners of the parent company
Minority interest Total owners' equity Paid-in capital (or
share capital) Capital reserves
Less: treasury
stock
Special
reserves Surplus reserves
General risk
reserves Undistributed profit Others
1. Balance at the end of last year 7,137,994,391.00 10,776,925,472.63 811,701,777.25 23,758,309,752.50 1,449,354.82 12,293,139,735.60 54,779,520,483.80
Plus: adjustments for changes in accounting policies
Correction of accounting errors in prior periods
Others
2. Balance at the beginning of the year 7,137,994,391.00 10,776,925,472.63 811,701,777.25 23,758,309,752.50 1,449,354.82 12,293,139,735.60 54,779,520,483.80
3. Increases/decreases in the current year (“-” for
decreases) 186,791,114.48 289,215,382.77 8,801,931,472.79 -1,449,354.82 5,097,166,828.22 14,373,655,443.44
(1) Net profit 10,747,161,554.27 1,117,300,751.04 11,864,462,305.31
(2) Other comprehensive income -1,449,354.82 -1,449,354.82
Sub-total of (1) and (2) 10,747,161,554.27 -1,449,354.82 1,117,300,751.04 11,863,012,950.49
(3) Capital contributed or reduced by owners 186,791,114.48 4,381,118,993.66 4,567,910,108.14
a. Capital contributed by owners 4,381,118,993.66 4,381,118,993.66
b. Amounts of share-based payments recognized in
owners’ equity 101,881,633.16 101,881,633.16
c. Others 84,909,481.32 84,909,481.32
(4) Profit distribution 289,215,382.77 -1,945,230,081.48 -401,252,916.48 -2,057,267,615.19
a. Provision of surplus reserves 289,215,382.77 -289,215,382.77
b. Provision of general risk reserves
c. Profit distributed to owners (or shareholders) -1,656,014,698.71 -401,252,916.48 -2,057,267,615.19
d. Others
(5) Internal carry-forward of owners' equity
a. Conversion of capital reserves into paid-in capital
(or share capital)
b. Conversion of surplus reserves into paid-in capital
(or share capital)
c. Making up losses with surplus reserves
d. Others
(6) Special reserves
a. Provision in 2013
b. Use in 2013
(7) Others
4. Balance at the end of the period 7,137,994,391.00 10,963,716,587.11 1,100,917,160.02 32,560,241,225.29 17,390,306,563.82 69,153,175,927.24
The accompanying notes form an integral part of these financial statements.
Legal Representative: Guanju Song Financial Director: Mingxin Zhu Account in Charge: Xi Zhang
Financial Statements Page 12
POLY REAL ESTATE GROUP CO., LTD.
CONSOLIDATED STATEMENT OF CHANGES IN OWNERS' EQUITY (Continued)
Year of 2013
(Expressed in Renminbi unless otherwise stated)
Item
Year 2012
Equity attributable to owners of the parent company
Minority interest Total owners' equity Paid-in capital (or
share capital) Capital reserves
Less: treasury
stock
Special
reserves Surplus reserves
General risk
reserves Undistributed profit Others
1. Balance at the end of last year 5,948,328,659.00 11,897,228,400.45 627,750,361.36 16,782,918,271.70 1,434,923.40 6,806,749,169.35 42,064,409,785.26
Plus: adjustments for changes in accounting policies
Correction of accounting errors in prior periods
Others
2. Balance at the beginning of the year 5,948,328,659.00 11,897,228,400.45 627,750,361.36 16,782,918,271.70 1,434,923.40 6,806,749,169.35 42,064,409,785.26
3. Increases/decreases in the current year (“-” for
decreases) 1,189,665,732.00 -1,120,302,927.82 183,951,415.89 6,975,391,480.80 14,431.42 5,486,390,566.25 12,715,110,698.54
(1) Net profit 8,438,233,558.38 1,540,364,716.98 9,978,598,275.36
(2) Other comprehensive income 2,028.00 14,431.42 16,459.42
Sub-total of (1) and (2) 2,028.00 8,438,233,558.38 14,431.42 1,540,364,716.98 9,978,614,734.78
(3) Capital contributed or reduced by owners 69,360,776.18 4,161,071,272.06 4,230,432,048.24
a. Capital contributed by owners 4,161,071,272.06 4,161,071,272.06
b. Amounts of share-based payments recognized in
owners’ equity 69,360,776.18 69,360,776.18
c. Others
(4) Profit distribution 183,951,415.89 -1,462,842,077.58 -215,045,422.79 -1,493,936,084.48
a. Provision of surplus reserves 183,951,415.89 -183,951,415.89
b. Provision of general risk reserves
c. Profit distributed to owners (or shareholders) -1,278,890,661.69 -215,045,422.79 -1,493,936,084.48
d. Others
(5) Internal carry-forward of owners' equity 1,189,665,732.00 -1,189,665,732.00
a. Conversion of capital reserves into paid-in capital
(or share capital) 1,189,665,732.00 -1,189,665,732.00
b. Conversion of surplus reserves into paid-in capital
(or share capital)
c. Making up losses with surplus reserves
d. Others
(6) Special reserves
a. Provision in 2012
b. Use in 2012
(7) Others
4. Balance at the end of the period 7,137,994,391.00 10,776,925,472.63 811,701,777.25 23,758,309,752.50 1,449,354.82 12,293,139,735.60 54,779,520,483.80
The accompanying notes form an integral part of these financial statements.
Legal Representative: Guanju Song Financial Director: Mingxin Zhu Account in Charge: Xi Zhang
POLY REAL ESTATE GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2013
Notes to Financial Statements Page 1
POLY REAL ESTATE GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2013
1. Company profile
Poly Real Estate Group Co., Ltd. (hereinafter referred to as “the Company”), formerly known as
Guangzhou Poly Real Estate Development Co., Ltd, was an enterprise owned by the whole people
registered for establishment in Guangzhou on September 14, 1992 by Poly Southern Group Co., Ltd
(formerly known as “Poly Technology Southern Co., Ltd”, and hereinafter referred to as “Poly
Southern”), a wholly-owned subsidiary of China Poly Group Corporation (hereinafter referred to as
“Poly Group”). The registered capital on initial establishment was RMB 10 million. On September 1997,
Poly South increased its investment in the Company to RMB 60 million, including a capital
contribution of RMB 49,597,200 made by cash and RMB 402,800 made by the conversion of surplus
reserves into paid-in capital.
On August 22, 2002, approved by the State Economic and Trade Commission document GJMQG [2002]
No. 616, launched by Poly South and jointly supported by Guangdong Huamei International Investment
Group Co., Ltd (formerly known as “Guangdong Huamei Education Industry Group Co., Ltd”, and
hereinafter referred to as “Huamei Group”), Zhang Keqiang and other 15 natural persons, the Company
was reformed to a company limited by shares and altered its name to “Poly Real Estate Co., Ltd”. On
July 2, 2002, approved by the Ministry of Finance document CQ [2002] No. 256, Poly South converted
the audited net assets of RMB 225,172,141.84 of Guangzhou Poly Real Estate Development Co., Ltd as
at March 31, 2002 and the monetary funds of RMB 74,827,858.16 of other shareholders into a total
share capital of RMB 200 million, at a proportion of 66.67%. Among the total share capital converted,
Poly South accounted for 75.06%; Huamei Group accounted for 15.19%, and natural persons’
contribution accounted for 9.75%.
In December 2005, based on the total share capital of 200 million shares as at June 30, 2005, the
Company distributed 5 shares of share dividend for every 10 shares, and issued 5 new shares for every
10 shares by way of capitalization of capital reserves. After the dividend distribution and conversion of
capital reserve into share capital, the share capital of the Company increased from RMB 200 million to
RMB 400 million, equivalent to 400 million shares.
In March 2006, the Company changed its name to “Poly Real Estate Group Co., Ltd.”.
On July 19, 2006, under the approval of ZJFXZ [2006] No. 30 issued by China Securities Regulatory
Commission, the Company conducted initial public offering of 150 million ordinary shares (A share) at
RMB 1 per share. On July 31, 2006, the Company’s shares were listed for trading on the Shanghai
Stock Exchange. The stock name is “Poly Real Estate” and the stock code is 600048. After the listing,
the Company’s share capital increased to RMB 550 million, equivalent to 550 million shares.
On April 2, 2007, based on the total share capital of 550 million shares as at December 31, 2006, the
Company issued 10 new shares for every 10 shares then issued by way of capitalization of capital
reserves. After that, the Company’s total shares increased to 1,100 million shares.
Under the approval of ZJFXZ [2007] No. 202 issued by China Securities Regulatory Commission, the
Company publicly issued 126,171,593 new shares on August 1, 2007. After the issuance, the total
number of shares of the Company increased to 1,226,171,593 shares.
On March 11, 2008, based on the share capital as at December 31, 2007, the Company issued 10 new
shares for every 10 shares then issued by way of capitalization of capital reserves. After that, the total
number of shares increased to 2,452,343,186 shares.
On April 30, 2009, based on the share capital as at December 31, 2008, the Company distributed a stock
dividend of 3 shares for every 10 shares. As a result of this stock dividend, the Company’s total number
of shares increased to 3,188,046,142 shares.
POLY REAL ESTATE GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2013
Notes to Financial Statements Page 2
On July 6, 2009, under the approval of ZJXK [2009] No. 573 issued by China Securities Regulatory
Commission, the Company issued 331,674,958 shares. After the issuance, the total number of shares of
the Company increased to 3,519,721,100 shares.
On April 27, 2010, based on the share capital as at December 31, 2009, the Company, by way of
capitalization of the capital reserves, issued 1,055,916,330 new shares to all shareholders, on the basis
of 3 new shares for every 10 shares then issued. After that, the total number of share capital became
4,575,637,430 shares.
On May 17, 2011, based on the share capital as at December 31, 2010, the Company, by way of
capitalization of the capital reserves, issued 1,372,691,229 new shares to all shareholders, on the basis
of 3 new shares for every 10 shares then issued. After that, the total number of share capital became
5,948,328,659 shares.
On June 18, 2012, based on the share capital as at December 31, 2011, the Company, by way of
capitalization of the capital reserves, issued 1,189,665,732 new shares to all shareholders, on the basis
of 2 new shares for every 10 shares then issued. After that, the total number of share capital became
7,137,994,391 shares.
The Company’s registered address is Floors 29-33, Poly International Plaza, No. 688 Middle Yuejiang
Road, Haizhu District, Guangzhou City. The Company and its subsidiaries are mainly engaged in real
estate development and operation, property management and others.
The Company’s authorized business scope includes primary real estate development, rental of
commercial housing developed by the Company, housing project design, old building demolition, road
and earthwork engineering construction, interior decoration, air-conditioning engineering and
installation, property management, hotel management, wholesale and retail trade (except for goods
specially operated and controlled by the state).
2. Principal accounting policies, estimates and errors of prior periods
2.1 Basis of preparation for financial statements
On the basis of going concern and transactions and events actually occurred, the Company
prepares its financial statements in accordance with the Accounting Standards for Business
Enterprises–Basic Standards and 38 concrete accounting standards issued on February 15, 2006 by
the Ministry of Finance, the subsequently issued Accounting Standards for Business
Enterprises–Application Guidelines, and the Accounting Standards for Business
Enterprises–Interpretations and other relevant provisions (collectively known as “Accounting
Standards for Business Enterprises”), as well as significant accounting policies and estimates
detailed in the sections that follow.
2.2 Statement on compliance with Accounting Standards for Business Enterprises
The financial statements prepared by the Company meet the requirements of the Accounting
Standards for Business Enterprises and truly and completely reflect the Company’s financial
position as at December 31, 2013, and its operating results, cash flows and other related
information for the year then ended.
2.3 Accounting period
The accounting year of the Company is the calendar year from January 1 to December 31.
2.4 Functional currency The Company and its domestic subsidiaries adopt RMB as their functional currency. Overseas subsidiaries determine their functional currency according to the currency mainly used to conduct primary business. If foreign currencies are adopted as the functional currency, the currency shall be translated into RMB in preparation of financial statements.
As Hengli (Hong Kong) Real Estate Limited’s currency used for conducting main businesses changed due to changes in economic environment, it has changed its functional currency from HKD to RMB this year.
POLY REAL ESTATE GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2013
Notes to Financial Statements Page 3
2.5 Accounting for business combination under and not under common control
2.5.1 Business combination under common control
For business combination under common control, the assets and liabilities obtained by the
acquirer shall be measured at the book value as stated in the acquiree’s accounting record
on the combination date. The capital reserve is adjusted according to the difference between
the book value of net assets acquired through combination and the book value of
consideration paid for the combination (or total par value of shares issued). If the capital
reserve is insufficient to cover the differences, the remaining amount shall be charged
against retained earnings.
The intermediary service charges, including audit, legal service, evaluation and consultancy
fees and other relevant administrative expenses arising from the business combination
under common control shall be included in the current profit and loss when incurred.
2.5.2 Business combination not under common control
For business combination not under common control, the combination costs shall be the
fair values, on the acquisition date, of the assets paid, the liabilities incurred or assumed
and the equity securities issued by the acquirer in exchange for the control over the
acquiree. For a business combination realized by several transactions of exchange, the
combination costs shall be the summation of the costs of all separate transactions. Where
any future event that is likely to affect the combination costs is stipulated in the
combination contract, if it is likely to occur and the amount for its effects on the
combination costs can be measured reliably, the acquirer shall record the said amount into
the combination costs.
For identifiable assets and liabilities and contingent liabilities acquired from the acquiree
through business combination not under common control, if qualified for recognition, shall
be measured at fair value on the acquisition date. The acquirer shall recognize the excess of
the combination costs over the fair value of the net identifiable assets it obtains from the
acquiree as goodwill. Where the combination costs are in short of the fair value of the net
identifiable assets it obtains from the acquiree, if, after reexamination, the combination
costs are still less than the fair value of the net identifiable assets it obtains from the
acquiree, the acquirer shall record the difference into the profit and loss of current period.
For business combination not under common control, the intermediary service charges,
including audit, legal service, evaluation and consultancy fees and other relevant
administrative expenses incurred by the acquirer for business combination, shall be charged
to current profit and loss when incurred. Transaction expenses incurred by the acquirer for
issuance of equity securities or debt securities as consideration for business combination
shall be included in the initial recognition amount of those equity securities or debt
securities.
2.6 Preparation of consolidated financial statements
The Company includes subsidiaries and special purpose entities over which it has actual control
into the scope of consolidated financial statements.
The Company’s consolidated financial statements are prepared in accordance with the Accounting
Standards for Business Enterprises No. 33 - Consolidated Financial Statements and relevant
provisions. All the significant internal transactions and balances within the scopes of consolidation
are eliminated when consolidated. The share of the shareholders’ equity of subsidiaries not
attributable to the parent company shall be separately listed as minority interest in the consolidated
financial statements.
POLY REAL ESTATE GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2013
Notes to Financial Statements Page 4
If the accounting policies or accounting periods of a subsidiary are different from those of the
Company, the financial statements of the subsidiary shall be adjusted according to the accounting
policies and accounting periods of the Company when consolidated financial statements are
prepared.
When preparing consolidated financial statements, for subsidiaries acquired through business
combination not under common control, certain specific financial statements shall be adjusted
based on the fair value of net identifiable assets on the acquisition date; for subsidiaries acquired
through business combination under common control, the business combination are deemed to
occur at the beginning of the consolidated period, and their assets, liabilities, operating results and
cash flows shall be included in the consolidated financial statements from the beginning of the year
of the consolidation period.
2.7 Recognition criteria of cash and cash equivalents
For the purpose of preparing the statement of cash flows, the term “cash” refers to the cash on hand
and the unrestricted deposit.
For the purpose of preparing the statement of cash flows, the term “cash equivalents” refers to
short-term and highly liquid investments that are readily convertible to known amounts of cash and
are subject to an insignificant risk of change in value.
2.8 Foreign currency transactions and conversion of foreign currency statements
2.8.1 Foreign currency transactions
Foreign currency transactions are converted into functional currency for recording purpose
at the spot exchange rate on the date when the transaction occurs.
The Company shall, on the balance sheet date, convert the foreign currency monetary items
at the spot exchange rate on the balance sheet date. The balance of exchange arising from
the difference between the spot exchange rate on the balance sheet date and the spot
exchange rate at the time of initial recognition or the previous balance sheet date shall be
recorded into the current profit and loss, except that those exchange differences of special
borrowings in foreign currency qualified for capitalization shall be capitalized in the
capitalization period and included in costs of relevant assets.
Foreign currency denominated non-monetary items measured at historical costs shall still
be converted at the spot exchange rates on the date the transactions occur, and the amount
in the functional currency shall remain unchanged. Foreign currency denominated
non-monetary items measured at fair value shall be translated at the spot exchange rates on
the date when the fair value is determined, and the difference between the amount in
functional currency after conversion and the amount of functional currency originally
recorded shall be treated as changes in fair value (including the changes in exchange rate)
and included in the current profit and loss, or recognized as other comprehensive income
and included in capital reserves.
2.8.2 Conversion of foreign currency financial statements
If the Company’s controlled subsidies, joint ventures, associates and other entities adopt a
different functional currency, the Company shall make necessary accounting adjustments
and prepare its consolidated financial statements after the conversion of foreign currency
financial statements.
Assets and liabilities in the balance sheet are translated at the spot exchange rates on
balance sheet date. Owners’ equity items, except for the item of “undistributed profits”, are
translated at the spot exchange rates on the dates when the transactions occur. Revenue and
expense items in the income statement are translated at the spot exchange rates on the dates
when the transactions occur. Foreign currency translation differences arising therefrom
shall be separately presented under the owners’ equity in the balance sheet.
POLY REAL ESTATE GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2013
Notes to Financial Statements Page 5
Foreign currency cash flows determined in a systematical and reasonable method are
converted at the spot exchange rate on the date when the transaction occurs. The influence
of exchange rate on cash is separately listed in the statement of cash flows.
Upon the disposal of an overseas business, the exchange difference of foreign currency
statements relating to the overseas business shall be transferred in all or in proportion of
disposal to profit or loss for the period during which the disposal occurs.
2.9 Financial instruments
Financial instruments include financial assets, financial liabilities and equity instruments.
2.9.1 Classification, recognition and measurement of financial instruments
Financial instruments are classified into financial assets and financial liabilities.
Upon initial recognition, financial assets are classified into financial assets measured at fair
value through current profit and loss (including financial assets held for trading and
financial assets designated to be measured at fair value through current profit and loss),
held-to-maturity investments, loans and accounts receivable and available-for-sale financial
assets. Financial assets, except for accounts receivable, are classified based on the intent
and ability to hold the financial assets by the Company and its subsidiaries.
Upon initial recognition, financial liabilities are classified into financial liabilities measured
at fair value through current profit and loss (including financial liabilities held for trading
and financial liabilities designated to be measured at fair value through current profit and
loss), and other financial liabilities.
When the Company becomes a party to the contract of a financial instrument, a financial
asset or financial liability is recognized.
The financial assets or financial liabilities of the Company are measured at their fair values
on initial recognition. Subsequent measurement are treated as follows: for financial assets
measured at fair value through current profit and loss, available-for-sale financial assets and
financial liabilities measured at fair value through current profit and loss, they are measured
at fair value; for financial guarantee contract and loan commitment bearing an interest rate
lower than that of the market, they are subsequently measured, after initial recognition, at
the higher of the balance of the amount as determined according to the Accounting
Standards for Business Enterprises No. 13 - Contingencies or the initially recognized
amount less the amount accumulatively amortized as determined according to the principles
of the Accounting Standards for Business Enterprises No. 14 - Revenues; for
held-to-maturity investments, loans and accounts receivable and other financial liabilities,
they are measured at their amortized costs.
The gains or losses arising from the change in the fair value of a financial asset or financial liability of the Company in subsequent measurement shall be dealt with according to the following methods, unless they are related to hedging: (1) the gains or losses, arising from the change in the fair value of the financial asset or financial liability which is measured at fair value through current profit and loss, shall be recorded into profit or loss on changes in fair value; interest or cash dividends obtained during the asset holding period shall be recognized as investment income; upon disposal, the difference between the amount actually received and the initially recorded amount shall be recognized as investment income and the profit or loss from changes in fair value shall be accordingly adjusted. (2) the changes in fair value of an available-for-sale financial asset shall be included in capital reserves; interest calculated at the actual rate during the holding period shall be included in investment income; cash dividends of available-for-sale equity instruments shall be included in investment income when the investee declares to distribute dividends; upon disposal, the difference between the amount actually received and the book value after deducting the accumulated amount of the changes in fair value originally and directly included in capital reserves shall be recognized as investment income.
POLY REAL ESTATE GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2013
Notes to Financial Statements Page 6
2.9.2 Recognition and measurement of transfer of financial assets
Recognition of transfer of financial assets of the Company: when nearly all the risks and
rewards of the ownership of a financial asset have been transferred, or when nearly all the
risks and rewards of the ownership of the financial asset have neither been transferred nor
been retained but the control over the financial asset has been given up, the financial asset
shall derecognized.
Measurement of transfer of financial assets of the Company: when a financial asset satisfies
the criteria for derecognition, its transfer shall be measured at the difference between 1) the
book value of the transferred financial asset and 2) the sum of the consideration received
from the transfer and the accumulated amount of the changes in fair value originally and
directly included in capital reserves. The difference shall be included in the current profit
and loss.
If partial transfer of the financial asset satisfies the criteria for derecognition, the entire
book value of the transferred financial asset shall be split into the derecognized and
recognized part according to their respective fair value. The difference between 1) the book
value of derecognized part and 2) the sum of the consideration received for the
derecognized part and the accumulated amount of the changes in fair value originally and
directly included in capital reserves shall be included in the current profit and loss.
2.9.3 Derecognition criteria of financial liabilities
Derecognition criteria of financial liabilities: a financial liability shall be derecognized in
whole or in part if its present obligations are wholly or partly discharged.
2.9.4 Method for determination of fair value of financial assets and financial liabilities
Method for determination of fair value of financial assets and financial liabilities of the
Company: As for the financial instruments for which there is an active market, the quoted
prices in the active market shall be used to determine the fair values thereof; where there is
no active market for a financial instrument, the Company shall adopt value appraisal
techniques to determine its fair value.
The value appraisal techniques mainly include using the prices adopted by the parties who
are familiar with the condition in the latest market transaction upon their own free will, the
current fair value obtained with reference to other financial assets of the same essential
nature, the discounted cash flow method and so on. When adopting the value appraisal
techniques, the Company shall try its best to use more market parameters and avoid
adopting those parameters that are specifically related to the Company and its subsidiaries.
2.9.5 Provision for impairment of financial assets (excluding accounts receivable)
Except for the financial assets measured at fair value through current profit and loss, the
book value of other financial assets shall be examined on the balance sheet date. If there is
objective evidence that a financial asset is impaired, an impairment test shall be made on
the financial asset. And the provision for impairment shall be made according to the test
result.
The Company performs separate tests for financial assets with significant single amounts.
With regard to the financial assets with insignificant single amounts, a separate impairment
test may be carried out, or they may be included in a portfolio of financial assets with
similar credit risk features so as to carry out an impairment test. Where, upon separate test,
the financial asset (including those financial assets with significant single amounts and
those with insignificant amounts) has not been impaired, it shall be included in a portfolio
of financial assets with similar credit risk features so as to conduct another impairment test.
The financial assets which have suffered from an impairment loss in any single amount
shall not be included in any portfolio of financial assets with similar credit risk features for
any impairment test.
POLY REAL ESTATE GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2013
Notes to Financial Statements Page 7
If the held-to-maturity investments, loans and accounts receivable are impaired, their book
values shall be written down to the present values of estimated future cash flows, and the
amounts written down shall be recognized as impairment losses and included in current
profit and loss. Where an available-for-sale financial asset is impaired, the accumulative
losses arising from the decrease of the fair value which was originally and directly included
in capital reserves shall be transferred out and recorded into the current profit and loss. The
accumulative losses transferred out shall be the balance of initial costs for acquiring the
asset after deducting the principals recovered and amortized amount, the current fair value
and the impairment losses originally recorded in profit or loss.
2.9.6 Reclassification of financial assets
Main criteria for determining the reclassification of outstanding held-to-maturity
investments as available-for-sale financial assets are as follows:
(1) There is no available financial resource to continuously provide funds to the financial
asset investment so as to hold the financial asset investment to maturity;
(2) The management has no intent to hold the investment to maturity;
(3) It is hard to hold the financial asset investment to maturity due to restriction of laws,
administrative regulations or other reasons; and
(4) Other evidence showing the Company has no ability to hold the investment to
maturity.
Significant outstanding held-to-maturity investments shall be reclassified as
available-for-sale financial assets after being approved by the board of directors.
2.10 Accounts receivable
The Company’s accounts receivable mainly include debt receivables, long-term receivables and
other receivables. On the balance sheet date, if there is evidence showing that they are impaired,
the Company shall recognize the impairment losses based on the difference between their book
values and the present values of estimated future cash flows.
2.10.1 Provision for bad debts of accounts receivable that are individually significant
Basis of determining portfolio
Criteria or threshold of determining an
item that is individually significant
The book value of an individual account receivable is
over RMB 100 million.
Method of provision for bad debts of
accounts receivable that are individually
significant
Separate impairment tests shall be made on accounts
receivable that are individually significant. If there is
evidence that they are impaired, provision for bad debts
shall be made at the difference between present value of
estimated future cash flows and the book value.
2.10.2 Accounts receivable with provision for bad debts made on the basis of portfolio
Basis of determining portfolio Credit period and aging Portfolios with similar credit risk features are formed with
credit period and aging being the risk features
Method of provision for bad debts made
on the basis of portfolio
The percentage-of-balance method
Portfolios with provision for bad debts calculated using the percentage-of-balance method:
Aging Proportion of provision for
account receivable (%)
Proportion of provision for
other receivables (%)
Portfolios with similar credit risk
features are formed with credit
period and aging being the risk
features
5 5
POLY REAL ESTATE GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2013
Notes to Financial Statements Page 8
2.10.3 Accounts receivable that are individually insignificant but with allowance or bad debt
provided on an individual basis
Reason for bad debt provision
provided on an individual basis
There is evidence indicating that the account is impaired, for
example, the debtor is repealed, bankrupted or died, and the
debtor’s property or legacy after bankruptcy or liquidation
cannot be collected, and the cash flows are in severe shortage.
Method of provision for bad debts For accounts receivable with objective evidence showing they
may be impaired, they shall be separated from relevant
portfolios, and their impairment losses shall be recognized
after the separate impairment tests.
2.11 Inventories
2.11.1 Classification of inventories
The term “inventories” refers to finished goods or merchandise possessed by the Company
for sale in the routine business, work in progress during the process of production, or
materials and supplies to be consumed in the process of production or offering labor service.
Inventories mainly include development costs, developed products, stock commodities and
low-cost consumables.
Accounting methods for land for development, maintenance fund, quality deposit and
expenses for public facilities are as follows.
Land for development: The Company’s land for development shall be included in the item
of “development costs” for accounting.
Maintenance fund: Maintenance fund borne by the Company shall be included in
“development costs” in accordance with the provisions of all local authorities.
Quality bond: Provision shall be made for quality bond at a certain proportion of the project
amount to be paid to a construction unit and included in “other payables”. Such quality
bond will be paid to the construction unit when the project passes the acceptance inspection
without quality problems during the agreed warranty period.
Expenses for public facilities: If the public facilities are public projects such as schools, the
expenditures and those expenses charged by governmental departments, shall be included
in the “development costs” and be apportioned and accounted for by cost accounting
objects and cost items.
2.11.2 Method for pricing of dispatched inventories
Actual cost of inventory when dispatched is determined using the individual identification
method.
2.11.3 Determination basis of net realizable values of inventories and provision method of
inventory depreciation reserve
On the balance sheet date, inventories are measured at the lower of their costs or net
realizable values. Provisions for inventory depreciation reserve are made on an individual
basis. But for those inventories with large quantity and low unit price, the provisions for
depreciation reserve are made based on categories of inventories. Determination basis of
net realizable values of inventories: (1) the net realizable values of finished goods are the
amount of estimated selling prices minus the estimated selling expenses and relevant taxes
and surcharges; (2) the materials held for production shall be measured at cost if the net
realizable value of the finished goods is higher than the cost; and if there is a decline in the
price of the material showing that the net realizable value of the finished good is lower than
the cost, the net realizable value is the amount of estimated selling price less the estimated
costs at completion, estimated selling expenses and relevant taxes and surcharges; (3) for
the materials held for sale, their net realizable values are the market selling prices.
POLY REAL ESTATE GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2013
Notes to Financial Statements Page 9
2.11.4 Inventory system
The Company adopts the perpetual inventory system.
2.11.5 Amortization method of low-cost consumables and packaging materials
Low-cost consumables are amortized using a lump-sum method when fetched for use.
2.12 Long-term equity investments
2.12.1 Determination of investment cost
(1) For long-term equity investments acquired from business combination, if such
business combination is under common control, the initial cost shall be recognized
according to the share of book value of owners’ equity of the combined party; if the
business combination is not under common control, the initial cost shall be recognized
according to the combination cost determined on the combination date;
(2) For long-term equity investments acquired from making payments in cash, the initial
investment cost is the actually paid purchase cost;
(3) For long-term equity investments acquired from issuance of equity securities, the
initial investment cost is the fair value of the issued equity securities;
(4) For long-term equity investments of investors, the initial investment cost is the value
stipulated in the investment contract or agreement;
(5) For long-term equity investments acquired from exchange of non-monetary assets and
debt restructuring, the initial investment cost is determined according to relevant
provisions of accounting standards.
2.12.2 Subsequent measurement and recognition of profit or loss
Long-term equity investments are subsequently measured using the equity or cost method.
For long-term equity investments measured at equity method, the investment income shall
be recognized and the long-term equity investment shall be adjusted according the net
profit shared or loss undertaken by the investee. When distribution of profits or cash
dividends is declared, the book value of the long-term equity investment shall be decreased
accordingly.
For long-term equity investment measured at cost method, their book values are usually the
same, except for the additional investment or disinvestments. Investment income shall be
recognized when distribution of profits or cash dividends are declared.
Long-term equity investments under joint control and with signification influence are
accounted for using the equity method. Other long-term equity investments are accounted
for using the cost method.
2.12.3 Determination basis of joint control or significant influence over the investee
Determination basis of joint control over the investee: through contracts or agreements, two
or more joint ventures stipulate that the finance and operating decisions of the investee
shall be jointly decided by the two or more investors.
Determination basis of significant influence over the investee: the significant influence is
recognized when the Company holds over 20% up to 50% voting capital of the investee. If
the voting capital is less than 20%, significant influence is still recognized when any of the
following conditions is met:
(1) The investor has a delegate on the board of directors or a similar organ of power;
(2) The investor has participated in the process of formulating policies of the investee;
(3) The investor has dispatched administrative staff to the investee;
(4) The investee depends on the technology or technology information of the investor;
(5) Other circumstances sufficient to prove there is significant influence over the investee.
2.12.4 Testing and provision for impairment
On the balance sheet date, the Company shall examine the long-term equity investments to
assess whether they may be impaired. When there is any indication of impairment, the
POLY REAL ESTATE GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2013
Notes to Financial Statements Page 10
impairment test shall be made to determine the recoverable amount. The provision for
impairment shall be made at the lower of the book value and the recoverable amount. Once
provided, the impairment loss shall not be reversed in subsequent accounting periods.
The recoverable amount is determined at the higher of net amount of fair value and the
present value of estimated future cash flow of long-term equity investments sold. If there is
a contract price for a fair transaction, the net amount of fair value of long-term equity
investments sold is measured at the contract price minus relevant taxes and surcharges; if
there is no fair sales contract but there is active market for assets or transaction price for
similar assets within the industry, the net amount of fair value is measured at the market
price minus relevant taxes and surcharges.
2.13 Investment property
2.13.1 Types and measurement of investment property
The types of investment property of the Company include leased land use right, leased
construction, and land use right held for transfer upon appreciation.
The Company’s investment properties are initially measured at cost. The cost model is
adopted for subsequent measurement.
2.13.2 Policies of adopting the cost model in accounting
The Company’s leased construction is depreciated using the straight-line method. Specific
accounting policies are the same as those available for the fixed assets.
The leased land use right and the land use right held for transfer upon appreciation are
amortized using the straight-line method. Specific accounting policies are the same as those
available for the intangible assets.
On the balance sheet date, the Company examines its investment property to assess for
indication of impairment. If there is any indication of impairment, the Company shall make
impairment test to recognize the recoverable amount. The provision for impairment shall be
made at the lower of the book value and the recoverable amount. Once provided, the
impairment loss shall not be reversed in subsequent accounting periods.
2.14 Fixed assets
2.14.1 Recognition of fixed assets
Fixed assets refer to tangible assets held for the purpose of producing commodities,
providing services, renting or business management with useful lives exceeding one
accounting year. Fixed assets will only be recognized when all the following criteria are
met:
(1) It is probable that economic benefits relating to the fixed assets will flow into the
Company;
(2) The costs of fixed assets can be measured reliably.
2.14.2 Classification and depreciation of fixed assets
The Company’s fixed assets are mainly classified into buildings and constructions,
transportation facilities, electronic and office equipment and other equipment. The
Company adopts the straight-line method for depreciation. The useful lives and estimated
net residual values of fixed assets are determined according to the natures and usage
condition of fixed assets by category. The Company shall review the useful lives, estimated
net residual values and depreciation method of fixed assets at the end of the year. If they are
different from the previous estimates, adjustment shall be made accordingly. Except for the
fixed assets fully depreciated but still in use and the land separately measured and recorded,
all other fixed assets of the Company are provided for depreciation.
The depreciation lives and annual depreciation rates of fixed assets by category are as
follows:
POLY REAL ESTATE GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2013
Notes to Financial Statements Page 11
Category Depreciation life
(year)
Residual value rate
(%)
Annual depreciation
rate (%)
Buildings and constructions 20-40 4 2.40-4.80
Transportation facilities 5-10 4 9.60-19.20
Electronic and office
equipment 3-5 4 19.20-32.00
Other equipment 3-8 4 12.00-32.00
2.14.3 Testing and provision for impairment of fixed assets
On the balance sheet date, the Company shall examine its fixed assets to assess whether
there is any indication that they may be impaired. If there is any indication of impairment,
the Company shall make impairment test to recognize the recoverable amount. The
provision for impairment shall be made at the lower of the book value and the recoverable
amount. Once provided, the impairment loss shall not be reversed in subsequent accounting
periods.
The recoverable amounts of fixed assets are the higher of their fair values less the disposal
expenses and the present values of the estimated future cash flows of the assets. The net
amount of the fair value of an asset minus the disposal expenses shall be determined at the
balance of the price as stipulated in the sales agreement in the fair transaction, if any, and
the disposal expenses directly attributable to the asset. If there is no fair sales agreement for
transaction but there is active market for the asset and trading price for similar asset within
the industry, such net amount shall be determined at the amount of market price minus the
disposal expenses.
2.14.4 Determination basis and measurement of fixed assets acquired under financing leases
Determination basis of fixed assets acquired under financing leases: fixed assets acquired
under financing leases refer to the leases whose entire risks and rewards relating to the
ownership of the assets are substantially transferred. Where a lease satisfies one or more of
the following criteria, it shall be recognized as a fixed asset acquired under financing lease:
(1) The ownership of the leased asset is transferred to the lessee when the term of lease
expires; (2) The lessee has the option to buy the leased asset at a price which is expected to
be far lower than the fair value of the leased asset at the date when the option becomes
exercisable. Thus, on the lease beginning date, it can be reasonably determined that the
option will be exercised; (3) Even if the ownership of the asset is not transferred, the lease
term covers the major part of the use life of the leased asset; (4) The present value of the
minimum lease payments on the lease beginning date amounts to substantially all of the fair
value of the leased asset on the lease beginning date; (5) The leased assets are of a
specialized nature that only the lessee can use them without making major modifications.
Measurement method of fixed assets acquired under financing leases: on the lease
beginning date, the book entry value of a fixed asset acquired under financing lease is
measured at the asset’s fair value or the present value of the minimum lease payment,
whichever is lower.
The subsequent measurement of a fixed asset acquired under financing lease shall adopt the
same policies for depreciation and for impairment as those policies applicable to
self-owned fixed assets.
2.15 Construction in progress
2.15.1 Category of construction in progress
The Company’s construction in progress is divided into two categories: construction
through self-operation and construction through outsourcing.
2.15.2 Criteria and timing for transfer of construction in progress into fixed assets
When construction in progress reaches the working condition for its intended use, the
Company shall transfer it to fixed assets. Construction in progress is determined to have
reached the working condition for its intended use when one of the following conditions is
POLY REAL ESTATE GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2013
Notes to Financial Statements Page 12
met:
(1) The substantial construction (including installation) of the fixed assets has been
finished completely or substantially;
(2) The construction is under trial production or trial operation, and the result indicates
that the asset is able to normally run or stably produce qualified products, or the trial
operation result indicates that the asset is able to run or operate normally;
(3) The amount of disbursement for the fixed asset being constructed is very small, or
nearly no such disbursement incurs;
(4) The fixed asset under acquisition and construction has met or basically meets the
design requirements or contractual provisions.
2.15.3 Testing and provision for impairment of construction in progress
On the balance sheet date, the Company examines its constructions in progress for evidence
indicating impairment. If there is indication of impairment, the Company shall make
impairment test to determine their recoverable amounts. The provision for impairment shall
be made at the lower of their book values and recoverable amounts. Once provided, the
impairment losses shall not be reversed in subsequent accounting periods.
The recoverable amount of a construction in progress is determined at the higher of the net
amount of their fair values minus disposal expenses and the present values of the estimated
future cash flows of the asset.
2.16 Borrowing costs
2.16.1 Recognition of capitalization of borrowing costs
Borrowing costs incurred and directly attributable to the acquisition and construction or
production of assets eligible for capitalization shall be capitalized and recorded into asset
costs; other borrowing costs shall be recognized as costs according to the amount incurred
and be included into current profit and loss. Assets eligible for capitalization refer to fixed
assets, investment property, inventories and other assets which may reach their intended use
or sale status only after long term acquisition and construction or production activities.
2.16.2 Calculation of capitalization amount of borrowing costs
Capitalization period refers to the period from the time when the capitalization of
borrowing costs starts until the capitalization is ceased. The period when the capitalization
of borrowing costs is suspended is not included.
Capitalization suspension: when the assets acquired and constructed or produced are ceased
abnormally and the cessation lasts for three consecutive months or more, the capitalization
period of borrowing costs should be suspended.
Calculation of capitalization amount: (1) for special borrowings, the capitalization amount
of borrowing costs is determined by the interest of such special borrowings actually
incurred in the current period less the interest income of the loans unused and deposited in
bank or return on temporary investment; (2) for general borrowings, the capitalization
amount of borrowing costs is determined by multiplying the weighted average of asset
disbursements of the portion of accumulated asset disbursements exceeding special
borrowings by the capitalization rate of used general borrowings. The capitalization rate is
the weighted average interest rate of general loans; and (3) for borrowings with discount or
premium, the amortization of discount or premium should be recognized using the effective
interest rate method in each accounting period, and the interest for each period shall be
adjusted accordingly.
The effective interest rate method is a method used to calculate the amortized discount or
premium, or interest expenses using the effective borrowing interest rates. Effective interest
rate is the interest rate used to discount the future cash flow of borrowings in expected
existing period into present book values.
POLY REAL ESTATE GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2013
Notes to Financial Statements Page 13
2.17 Intangible assets 2.17.1 Measurement of intangible assets
The Company initially measures intangible assets at cost. For intangible assets acquired, the actual costs consist of the actually paid price and other related expenses. For intangible assets contributed by investors, the actual costs are determined based on the value agreed by investment contracts or agreements; however, where such value stipulated in investment contracts or agreements is not fair, the actual costs are determined based on fair value. For intangible assets that are self-developed, the costs are the total expenses incurred before such assets reach the working condition for their intended use.
For the subsequent measurement of intangible assets of the Company: (1) intangible assets with limited useful lives are amortized using the straight-line method, and the useful lives of intangible assets and amortization method are reviewed at the end of each year. Where there is any difference with the original estimates, relevant adjustments shall be made. (2) Intangible assets with indefinite useful lives are not amortized; however, the useful lives are reviewed at the end of the year. Where any unambiguous evidence indicates that the useful lives are finite, then such useful lives are estimated and the intangible assets are amortized using the straight-line method.
2.17.2 Estimation of useful lives of intangible assets with limited useful life:
For intangible assets with definite useful lives, the Company generally considers the following factors when estimating their useful lives: (1) the life cycle of products produced by such assets and available information of useful lives of similar products; (2) current situation and estimation of future development trend on technologies and processes; (3) market demands of products or services that are produced or rendered by such assets; (4) actions expected to be taken by existing or potential competitors; (5) expected maintenance expenses to maintain the economic profitability brought by such assets and the estimated payment ability of the Company; (6) relevant laws, regulations or similar limitations in relation to the control period of such assets, such as license term and lease term; (7) relevance with the useful lives of the other assets held by the Company.
2.17.3 Determination basis of intangible assets with infinite useful life:
If the period for intangible assets to generate economic benefits cannot be ascertained, or
intangible assets have indefinite useful lives, the Company recognizes such assets as
intangible assets with indefinite useful lives.
Determination basis of intangible assets with indefinite useful lives: (1) useful lives derived
from contractual rights or other legal rights, but such contracts or laws do not stipulate
definite useful lives; (2) the period for such intangible assets to generate economic benefits
to the Company still cannot be determined after a comprehensive consideration of the same
industry or relevant expert opinions.
At the end of each year, the useful lives of intangible assets with indefinite useful lives are
reviewed mainly using a bottom-up approach, and relevant departments that use such
intangible assets conduct fundamental reviews and assess if there is any change in the
determination basis of the indefinite useful lives.
2.17.4 Testing and provision for impairment of intangible assets
On balance sheet date, the Company assesses if there is any indication that the intangible
asset may be impaired. When such indication exists, the Company shall conduct
impairment tests to such asset to determine its recoverable amount and make provision for
impairment at the lower of its book value and recoverable amount. Once provided, the
impairment loss will not be reversed in subsequent accounting periods.
The recoverable amount of an intangible asset is the higher of the net amount of its fair
value less cost of disposal and the present value of the estimated future cash flow of such
intangible asset.
2.18 Determination of provisions for impairment of goodwill and other assets
On each balance sheet date, the Company assesses if there is any sign that assets other than
long-term equity investment, investment properties, fixed assets, construction in progress,
POLY REAL ESTATE GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2013
Notes to Financial Statements Page 14
intangible assets and financial instruments, have been or may be impaired. If any sign indicates
that such assets may be impaired, the recoverable amounts of individual assets or asset groups are
estimated. If the estimated recoverable amounts are lower than their book values, the impairment
are provided as the difference between the book values and the recoverable amounts and included
in current profit and loss.
Impairment test will be conducted for goodwill on every accounting year whether there is any sign
of impairment or not. When impairment test is conducted for goodwill, its book value will be
allocated using a reasonable method over the asset groups or combinations of asset groups that can
benefit from the synergy effect of business combination, and every year the test is conducted for
asset groups or combinations of asset groups, over which goodwill is allocated. If the recoverable
amounts of asset groups or combinations of asset groups are lower than their book values, the
impairment losses are first reduced on the book values of the goodwill of such asset groups or
combination of asset groups and then allocated according to the proportion of the book value of
each asset in such asset groups or combinations of asset groups. Once recognized, the impairment
losses of assets will not be reversed in subsequent periods.
2.19 Long-term deferred expenses
The long-term deferred expenses of the Company refer to expenses that are incurred but have a
beneficial period of over one (exclusive) year, mainly including parking fees and house renovation
expenses. Long-term deferred expenses are amortized by stages on expense item basis over the
beneficial period. Where the long-term deferred expenses cannot generate economic benefits to the
Company during the subsequent accounting periods, the unamortized value is completely
transferred to current profit and loss.
2.20 Estimated liabilities
2.20.1 Recognition criteria of estimated liabilities
When the obligation related to contingencies is the present obligation assumed by the
Company and the fulfillment of such obligation probably leads to outflows of economic
benefits, and meanwhile, the amount of such obligation can be reliably measured, such
obligation is recognized as estimated liability.
2.20.2 Measurement of estimated liabilities
The estimated liability is initially measured at the best estimate of expense necessary for
fulfillment of relevant present obligation. If there is a continuous range for the necessary
expense and probabilities of occurrence of all the outcomes within such range are equal, the
best estimate shall be determined at the intermediate value of the range; if several items are
involved, then the best estimate is calculated and determined based on all possible results
and relevant probabilities.
On balance sheet date, the book value of estimated liability shall be reviewed. If any
unambiguous evidence shows that such book value cannot truly reflect the best estimate,
such book value shall be adjusted to current best estimate.
2.21 Share-based payments and equity instruments
Share-based payment refers to the equity instrument granted by the Company to obtain the service
rendered by the employees or other parties or transactions to assume liabilities that are determined
based on equity instruments, which could be settled through equity or cash settlements.
Equity-settled payments in exchange for the service rendered by the employees are measured at the
fair values of the equity instruments granted to the employees; equity-settled payments in exchange
for the service rendered by other parties are measured at the fair values on the date when such
service is procured; where the fair values of services rendered by other parties cannot be measured
reliably, the payments are measured at the fair values of equity instruments on the date of service
procurement. The fair values of equity instruments are determined in the following methods:
(1) where there is an active market, the fair values are determined by the offer in such market;
(2) where there is no active market, the fair value is determined by assessment techniques
including the prices offered in recent market transactions by voluntary traders, with reference
POLY REAL ESTATE GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2013
Notes to Financial Statements Page 15
to current fair values of the other substantially same financial instruments, cash flow discount
method and option pricing models.
The Company estimates the latest available subsequent information such as changes in number of
employees that can exercise options and determines the best estimate of exercisable equity
instrument.
2.22 Revenue
The revenue of the Company is mainly from the sales of real estate, property leasing, property
management and the other goods and services. The recognition principles are:
(1) Revenue from sales of real estate: the sales revenue is recognized when the real estate passes
acceptance inspection, sales contract is signed, and the certificate of payment of the buyer is
obtained and such real estate is delivered for use. When the buyer receives the written house
delivery notice and has no justifiable reasons for objection, the revenue is immediately
recognized when the delivery term determined in the written notice expires. For projects
entrusted for development and development projects in compliance with the conditions under
Accounting Standards for Business Enterprises - Construction Contract, the sales revenue is
recognized using the percentage-of-completion method. The percentage of completion is
determined according to the proportion of the work amount to the completed project.
(2) Revenue from property leasing: the revenue from lease of property is recognized based on the
date stipulated in the contract or agreement with the lessee when the lessee pays the rent and
the amount of rent.
(3) Revenue from property management: when the property management service is rendered, the
economic benefit in relation to the property management service can flow into the Company
and costs associated with property management service can be reliably measured, revenue
from property management is recognized.
(4) Other revenue:
A. For revenue from sales of goods, when the Company has transferred significant risks and
rewards of ownership of the goods to the purchaser; the Company retains neither
continuous management rights associated with ownership of the goods sold nor effective
control over the goods sold; the relevant amount of revenue can be measured reliably; it
is highly likely that the economic benefits associated with the transaction will flow into
the Company; and the relevant amount of cost incurred or to be incurred can be
measured reliably, revenue from sales of goods is recognized.
B. For revenue from rendering of service, when the outcome of a service transaction can be
estimated reliably, revenue from rendering of service is recognized using the
percentage-of-completion method.
C. For revenue from transferring the use right of assets, when relevant economic benefits is
likely to flow into the Company and the amount of revenue can be reliably measured, the
revenue is recognized.
2.23 Government subsidies
2.23.1 Types
Government subsidies are mainly divided into those associated with assets and those
associated with income.
2.23.2 Accounting treatment
Government subsidies associated with assets are recognized as deferred income and evenly
amortized over the useful lives of relevant assets and included in current profit and loss;
government subsidies measured at nominal amount are directly included in current profit
and loss. Government subsidies associated with income are accounted for using the
following methods: (1) subsidies granted for compensating relevant expenses or losses of
the Company in subsequent periods are recognized as deferred income and included in
current profit and loss in the period when relevant expenses are recognized; (2) subsidies
granted to compensate expenses or losses that have already incurred by the Company are
directly included in current profit and loss.
POLY REAL ESTATE GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2013
Notes to Financial Statements Page 16
2.24 Deferred income tax assets and deferred income tax liabilities
Determination of deferred income tax assets and deferred income tax liabilities of the Company:
(1) Deferred income tax assets or deferred income tax liabilities are calculated and recognized
based on the differences between book value and tax base of the assets and liabilities (where
the projects that are not recognized as assets or liabilities but the tax base of which can be
determined, such tax base is recognized as the difference) according to the applicable tax rate
in the expected period when such assets are taken back or liabilities are repaid.
(2) The deferred income tax assets are recognized to the extent of taxable income that is likely to
offset the deductible temporary differences. On the balance sheet date, where unambiguous
evidence shows that it is likely to derive sufficient taxable income in subsequent period to
offset the deductible temporary differences, the deferred income tax assets that have not been
recognized in prior accounting periods are recognized. If it is not likely to derive sufficient
taxable income to offset the deductible temporary differences in subsequent periods, then the
book value of the deferred income tax assets should be written down.
(3) The taxable temporary difference associated with investment of subsidiaries and associates is
recognized as deferred income tax liabilities, unless the Company can control the time when
such temporary difference is reversed or it is likely that such temporary difference will not be
reversed in foreseeable future. The deductible temporary difference associated with investment
of subsidiaries and associates is recognized as deferred income tax assets when such temporary
difference will be reversed in foreseeable future and it is likely that such temporary difference is
derived to offset the taxable income of the deductible temporary difference.
2.25 Held-for-sale assets
2.25.1 Determination criteria of held-for-sale assets
Recognition of held-for-sale assets shall satisfy the following conditions: the Company has
made resolutions with respect to the disposal of such assets; the Company has signed
irrevocable transfer agreement with the transferee; and such assets are transferred within
one year.
2.25.2 Accounting for held-for-sale assets
For a fixed asset that is held for sale, the estimated net residual value of such asset shall be
adjusted to reflect the amount of fair value less the disposal expenses, which, however,
shall not exceed the original book value of such asset when the held-for-sale conditions are
met, and the difference the original book value exceeding the adjusted estimated net
residual value shall be recognized as asset impairment loss and included in current profit
and loss.
Other non-current assets held for sale shall be treated following the principles above.
Held-for-sale non-current assets include individual assets and disposal groups. Disposal
group refers to a group of assets that is sold as a whole or together in other ways.
2.26 Changes in principal accounting policies and accounting estimates
2.26.1 Changes in accounting policies
None.
2.26.2 Changes in accounting estimates
None.
2.27 Correction of accounting errors in previous period
None.
3. Taxation
3.1 Major tax types and tax rates applicable to the Company
Tax type Basis of tax assessment Tax rate
Enterprise income tax Taxable income 25%
Business tax Real estate sales income, construction
services income, etc. 3%, 5% or 20%
POLY REAL ESTATE GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2013
Notes to Financial Statements Page 17
Tax type Basis of tax assessment Tax rate
Urban maintenance and construction
tax Business tax (or VAT paid)
Paid in accordance with
local tax rules
Educational surtax Business tax (or VAT paid) Paid in accordance with
local tax rules
Value added tax (VAT) on land Real estate sales income deducted by
project amount
Paid at the excess
progressive tax rate of
30%-60%
Contract tax Amount for sale and transfer of land use
right 3%-5%
3.2 Preferential taxation policies and approvals
None.
4. Business combination and consolidated financial statements
(All amounts in the following statements in this section are expressed in RMB’0,000 unless otherwise
stated.)
Subsidiaries and special purpose entities over which the Company has actual control have been included
in the scope of consolidated financial statements.
The Company’s consolidated financial statements are prepared in accordance with the Accounting
Standards for Business Enterprises No. 33 - Consolidated Financial Statements and relevant rules, and
all significant inter-company transactions and balances within the consolidation scope have been
eliminated during the consolidation. The portion in shareholders’ equity of subsidiaries not attributable
to the parent company is listed separately as minority interest under the shareholders’ equity in
consolidated statements.
During the preparation of consolidated financial statements, for the accounting policies or accounting
periods of a subsidiary that are different from those of the Company, the financial statements of the
subsidiary have been adjusted according to the accounting policies and accounting periods of the
Company.
For subsidiaries acquired through business combination not under common control, their individual
financial statements have been adjusted based on fair value of net identifiable assets on purchasing date.
For subsidiaries acquired through business combination under common control, their consolidation is
considered as having occurred as at the beginning of the consolidation year, and their assets and
liabilities, operating results and cash flows have been included in the consolidated financial statements
from the beginning of the year of the consolidation period.
POLY REAL ESTATE GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2013
Notes to Financial Statements Page 18
4.1 Subsidiaries
4.1.1 Subsidiaries acquired through establishment, investment or other methods
Full name of subsidiary Type of
subsidiary
Registration
place Business nature Registered capital Business scope
Actual amount
of
contribution
as at
December 31,
2013
Balance of
other items
constituting
net investment
in subsidiary
in essence
Share
ownership
(%)
Voting
ratio
(%)
Consolidated
statement or
not
Minority
interest
Amount of
minority interest
used to offset
profit or loss
attributable to
minority
shareholders
Owners’ equity of the
parent company after
offsetting the excess
of current loss shared
by minority
shareholders of
subsidiary over the
minority equity in
such subsidiary as at
January 1, 2013
1-1.Poly Guangzhou Real
Estate Co., Ltd. (“Poly
Guangzhou”)
Controlling
subsidiary Guangzhou
Real estate
development 2,000
Real estate
development
and operation,
etc. 1,020 51 51 Yes 114,566.02
1-2. Guangzhou Poly Licheng
Real Estate Development Co.,
Ltd. (“Poly Licheng”)
Controlling
subsidiary Guangzhou
Real estate
development 1,000
Real estate
development
and operation,
etc. 1,000 100 100 Yes -
1-3 Zhongshan Xiangyu
Industrial Co., Ltd.
(“Zhongshan Xiangyu”)
Controlling
subsidiary Zhongshan
Real estate
development 10,000
Real estate
development
and operation,
etc. 10,000 100 100 Yes -
2. Poly Zengcheng Real Estate
Development Co., Ltd. (“Poly
Zengcheng”)
Wholly-owned
subsidiary Guangzhou
Real estate
development 5,000
Real estate
development
and operation,
etc. 5,000 100 100 Yes -
3-1. Poly Guangdong Real
Estate Co., Ltd. (“Guangdong
Poly”)
Wholly-owned
subsidiary Guangzhou
Real estate
development 20,000
Real estate
development
and operation,
etc. 20,000 100 100 Yes -
3-2. Guangzhou Yuehe Property
Development Co., Ltd.
(“Guangdong Yuehe”)
Controlling
subsidiary Guangzhou
Real estate
development 70,000
Real estate
development
and operation,
etc. 35,000 50 50 Yes 34,680.27
POLY REAL ESTATE GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2013
Notes to Financial Statements Page 19
Full name of subsidiary Type of
subsidiary
Registration
place Business nature Registered capital Business scope
Actual amount
of
contribution
as at
December 31,
2013
Balance of
other items
constituting
net investment
in subsidiary
in essence
Share
ownership
(%)
Voting
ratio
(%)
Consolidated
statement or
not
Minority
interest
Amount of
minority interest
used to offset
profit or loss
attributable to
minority
shareholders
Owners’ equity of the
parent company after
offsetting the excess
of current loss shared
by minority
shareholders of
subsidiary over the
minority equity in
such subsidiary as at
January 1, 2013
3-3. Zhuhai Poly Tianyue
Investment Holdings Co., Ltd.
(“Zhuhai Tianyue”)
Controlling
subsidiary Zhuhai
Real estate
development 160,000
Real estate
development
and operation,
etc. 96,000 60 60 Yes 63,808.38
3-4. Guangzhou Conghua Poly
Real Estate Development Co.,
Ltd. (“Conghua Poly”)
Wholly-owned
subsidiary Guangzhou
Real estate
development 10,000
Real estate
development
and operation,
etc. 10,000 100 100 Yes -
3-5. Guangzhou Bangjie
Property Co., Ltd. (“Guangzhou
Bangjie”)
Controlling
subsidiary Guangzhou
Real estate
development 10,000
Real estate
development
and property
management,
etc. 10,000 100 100 Yes -
3-6. Guangzhou Honghe Real
Estate Development Co., Ltd.
(“Guangzhou Honghe”)
Wholly-owned
subsidiary Guangzhou
Real estate
development 5,000
Real estate
development
and operation,
etc. 5,000 100 100 Yes -
3-7. Guangzhou Yuehong Real
Estate Development Co., Ltd.
(“Guangzhou Yuehong”)
Wholly-owned
subsidiary Guangzhou
Real estate
development 10,000
Real estate
development
and operation,
etc. 10,000 100 100 Yes -
3-8. Guangzhou Sitai Real
Estate Development Co., Ltd.
(“Guangzhou Sitai”)
Wholly-owned
subsidiary Guangzhou
Real estate
development 10,000
Real estate
development
and operation,
etc. 10,000 100 100 Yes -
4. Guangzhou Science City
Poly Real Estate Co. Ltd.
(“Science City”)
Wholly-owned
subsidiary Guangzhou
Real estate
development 5,000
Real estate
development
and operation,
etc. 6,015.6 100 100 Yes -
POLY REAL ESTATE GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2013
Notes to Financial Statements Page 20
Full name of subsidiary Type of
subsidiary
Registration
place Business nature Registered capital Business scope
Actual amount
of
contribution
as at
December 31,
2013
Balance of
other items
constituting
net investment
in subsidiary
in essence
Share
ownership
(%)
Voting
ratio
(%)
Consolidated
statement or
not
Minority
interest
Amount of
minority interest
used to offset
profit or loss
attributable to
minority
shareholders
Owners’ equity of the
parent company after
offsetting the excess
of current loss shared
by minority
shareholders of
subsidiary over the
minority equity in
such subsidiary as at
January 1, 2013
5-1. Poly (Dongguan) Real
Estate Development Co., Ltd.
(“Poly Dongguan”)
Wholly-owned
subsidiary Dongguan
Real estate
development 5,000
Real estate
development
and operation,
etc. 5,000 100 100 Yes -
5-2 Dongguan Hehong
Investment Co., Ltd.
(“Dongguan Hehong”)
Wholly-owned
subsidiary Dongguan
Real estate
development 1,000
Real estate
development
and operation,
etc. 1,000 100 100 Yes -
6. Poly (Dongguan) Investment
Co., Ltd. (“Dongguan
Investment”)
Controlling
subsidiary Dongguan
Real estate
development 10,000
Real estate
development
and operation,
etc. 8,000 80 80 Yes 1,656.35
7. Poly (Zhuhai) Property
Development Co., Ltd.
(“Zhuhai Poly”)
Wholly-owned
subsidiary Zhuhai
Real estate
development 5,000
Real estate
development
and operation,
etc. 5,000 100 100 Yes -
8. Poly (Zhongshan) Property
Development Co., Ltd.
(“Zhongshan Poly”)
Wholly-owned
subsidiary Zhongshan
Real estate
development 5,000
Real estate
development
and operation,
etc. 5,000 100 100 Yes -
9-1. Hengli (Hong Kong) Real
Estate Limited (“Hengli Real
Estate”)
Wholly-owned
subsidiary Hong Kong
Real estate sales
and lease
agency HKD100
Real estate sales
and lease
agency, etc. HKD100 100 100 Yes -
9-2.Poly Real Estate Finance
Ltd
Wholly-owned
subsidiary
British
Virgin
Islands
Investment
holding USD0.0001
Investment
holding,
enterprise
management USD0.0001 100 100 Yes -
POLY REAL ESTATE GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2013
Notes to Financial Statements Page 21
Full name of subsidiary Type of
subsidiary
Registration
place Business nature Registered capital Business scope
Actual amount
of
contribution
as at
December 31,
2013
Balance of
other items
constituting
net investment
in subsidiary
in essence
Share
ownership
(%)
Voting
ratio
(%)
Consolidated
statement or
not
Minority
interest
Amount of
minority interest
used to offset
profit or loss
attributable to
minority
shareholders
Owners’ equity of the
parent company after
offsetting the excess
of current loss shared
by minority
shareholders of
subsidiary over the
minority equity in
such subsidiary as at
January 1, 2013
9-3.Abundant Choice
Investment Limited
Wholly-owned
subsidiary Hong Kong
Investment
holding HKD0.0001
Investment
holding,
enterprise
management HKD0.0001 100 100 Yes -
9-4.Action Dragon Investments
Limited
Wholly-owned
subsidiary Hong Kong
Investment
holding HKD0.0001
Investment
holding,
enterprise
management HKD0.0001 100 100 Yes -
9-5.Pride South Holdings
Limited
Controlling
subsidiary
British
Virgin
Islands
Investment
holding USD0.0001
Investment
holding,
enterprise
management USD0.0001 65 65 Yes -100.67
9-6. Shengxin Company
Limited (“Shengxin Company”)
Wholly-owned
subsidiary
British
Virgin
Islands
Investment
holding USD0.0001
Investment
holding,
enterprise
management USD0.0001 100 100 Yes -
9-7. Hefei Herong Real Estate
Co., Ltd. (“Hefei Herong”)
Wholly-owned
subsidiary Hefei
Real estate
development 4,000
Real estate
development
and sale, etc. 4,000 100 100 Yes -
9-8. Shouhong Property
(Guangzhou) Co., Ltd.
(“Shouhong Property”)
Controlling
subsidiary Guangzhou
Real estate
development 150,000
Real estate
development
and sale, etc. 149,188 100 100 Yes -
10-1. Poly International Trade
and Investment Co., Ltd. (“Poly
International Trade”)
Controlling
subsidiary Guangzhou
Real estate
development 10,000
Real estate
development
and operation,
etc. 5,100 51 51 Yes 45,970.21
10-2. Guangzhou PWTC
Property Management Co., Ltd.
(“PWTC”)
Controlling
subsidiary Guangzhou
Property
management 300
Property
management,
etc. 300 100 100 Yes -
POLY REAL ESTATE GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2013
Notes to Financial Statements Page 22
Full name of subsidiary Type of
subsidiary
Registration
place Business nature Registered capital Business scope
Actual amount
of
contribution
as at
December 31,
2013
Balance of
other items
constituting
net investment
in subsidiary
in essence
Share
ownership
(%)
Voting
ratio
(%)
Consolidated
statement or
not
Minority
interest
Amount of
minority interest
used to offset
profit or loss
attributable to
minority
shareholders
Owners’ equity of the
parent company after
offsetting the excess
of current loss shared
by minority
shareholders of
subsidiary over the
minority equity in
such subsidiary as at
January 1, 2013
11. Guangzhou Pazhou
Investment Co., Ltd. (“Pazhou
Investment”)
Controlling
subsidiary Guangzhou
Real estate
development 13,513.51
Real estate
development
and operation,
etc. 8,000 59.2 59.2 Yes 255,089.07
12-1. Poly (Shenyang) Real
Estate Development Co., Ltd.
(“Poly Shenyang”)
Controlling
subsidiary Shenyang
Real estate
development 10,000
Real estate
development,
etc. 6,000 60 60 Yes 16,004.03
12-2. Poly Riverbank,
Shenyang Real Estate
Development Co., Ltd.
(“Shenyang Riverbank”)
Controlling
subsidiary Shenyang
Real estate
development 5,000
Real estate
development
and sale, etc. 2,550 51 51 Yes 3,397.63
13-1. Liaoning Poly Industrial
Co., Ltd. (“Liaoning
Industrial”)
Wholly-owned
subsidiary Shenyang
Real estate
development 20,000
Real estate
development
and operation,
etc. 2,0000 100 100 Yes -
13-2 Shenyang Poly
Champagne Real Estate
Development Co., Ltd.
(“Shenyang Champagne”)
Controlling
subsidiary Shenyang
Real estate
development 67,000
Real estate
development
and operation,
etc. 36,850 55 55 Yes 29,261.00
13-3. Poly (Tonghua) Real
Estate Development Co., Ltd.
(“Tonghua Poly”)
Wholly-owned
subsidiary Tonghua
Real estate
development 5,000
Real estate
development
and operation,
etc. 5,000 100 100 Yes -
13-4. Shenyang Linhai Real
Estate Development Co., Led
("Shenyang Linhai")
Wholly-owned
subsidiary Shenyang
Real estate
development 10,000
Real estate
development
and operation,
etc. 10,000 100 100 Yes -
POLY REAL ESTATE GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2013
Notes to Financial Statements Page 23
Full name of subsidiary Type of
subsidiary
Registration
place Business nature Registered capital Business scope
Actual amount
of
contribution
as at
December 31,
2013
Balance of
other items
constituting
net investment
in subsidiary
in essence
Share
ownership
(%)
Voting
ratio
(%)
Consolidated
statement or
not
Minority
interest
Amount of
minority interest
used to offset
profit or loss
attributable to
minority
shareholders
Owners’ equity of the
parent company after
offsetting the excess
of current loss shared
by minority
shareholders of
subsidiary over the
minority equity in
such subsidiary as at
January 1, 2013
14-1. Liaoning Poly Real Estate
Development Co., Ltd.
(“Liaoning Poly”)
Controlling
subsidiary Shenyang
Real estate
development 10,000
Real estate
development,
sales of
commercial
housing, etc. 10,000 100 100 Yes -
14-2. Shenyang Poly Xihu Real
Estate Development Co., Ltd.
(“Shenyang Xihu”)
Controlling
subsidiary Shenyang
Real estate
development 5,000
Real estate
development,
sales of
commercial
housing, etc. 5,000 100 100 Yes -
15-1. Poly (Yingkou) Real
Estate Development Co., Ltd.
(“Poly Yingkou”)
Controlling
subsidiary Yingkou
Real estate
development 5,000
Real estate
development
and operation,
etc. 4,750 95 95 Yes 326.58
15-2. Dalian Poly Hongqi Real
Estate Development Co., Ltd.
(“Dalian Hongqi”)
Controlling
subsidiary Dalian
Real estate
development 5,000
Real estate
development
and operation,
etc. 2,500 50 50 Yes -1,293.92
15-3. Shenyang Hengfu Real
Estate Co., Ltd. (“Shenyang
Hengfu”)
Wholly-owned
subsidiary Shenyang
Real estate
development 27,687
Real estate
development
and operation,
etc. 27,687 100 100 Yes -
15-4. Dalian Bingang Real
Estate Development Co., Ltd.
(“Dalian Bingang”)
Wholly-owned
subsidiary Dalian
Real estate
development 10,000
Real estate
development
and operation,
etc. 10,000 100 100 Yes -
POLY REAL ESTATE GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2013
Notes to Financial Statements Page 24
Full name of subsidiary Type of
subsidiary
Registration
place Business nature Registered capital Business scope
Actual amount
of
contribution
as at
December 31,
2013
Balance of
other items
constituting
net investment
in subsidiary
in essence
Share
ownership
(%)
Voting
ratio
(%)
Consolidated
statement or
not
Minority
interest
Amount of
minority interest
used to offset
profit or loss
attributable to
minority
shareholders
Owners’ equity of the
parent company after
offsetting the excess
of current loss shared
by minority
shareholders of
subsidiary over the
minority equity in
such subsidiary as at
January 1, 2013
16-1. Poly (Dalian) Real Estate
Development Co., Ltd. (“Poly
Dalian”)
Wholly-owned
subsidiary Dalian
Real estate
development 10,000
Real estate
development
and operation,
etc. 10,000 100 100 Yes -
16-2. Dalian Poly Convention
& Exhibition Management Co.,
Ltd. (“Dalian Convention &
Exhibition”)
Wholly-owned
subsidiary Dalian
Exhibition
services 50
Exhibition
services 50 100 100 Yes -
16-3. Dalian Henghui Real
Estate Development Co., Ltd.
("Dalian Henghui")
Wholly-owned
subsidiary Dalian
Real estate
development 1,000
Real estate
development
and operation,
etc. 1,000 100 100 Yes -
16-4. Dalian Poly Donggang
Real Estate Development Co.,
Ltd. ("Dalian Donggang")
Controlling
subsidiary Dalian
Real estate
development 30,000
Real estate
development
and operation,
etc. 7,500 50 50 Yes 7,152.84
16-5. Dalian Yingsheng Real
Estate Development Co., Ltd.
("Dalian Yingsheng")
Controlling
subsidiary Dalian
Real estate
development 20,000
Real estate
development
and operation,
etc. 5,000 50 50 Yes 4,927.27
17-1. Poly (Changchun)
HengFu Real Estate
Development Co., Ltd.
(“Changchun Hengfu”)
Wholly-owned
subsidiary Changchun
Real estate
development 5,000
Real estate
development
and operation,
etc. 5,000 100 100 Yes -
17-2. Changchun Hirota Real
Estate Development Co., Ltd.
(“Changchun Hirota”)
Wholly-owned
subsidiary Changchun
Real estate
development 5,000
Real estate
development
and operation,
etc. 5,000 100 100 Yes -
POLY REAL ESTATE GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2013
Notes to Financial Statements Page 25
Full name of subsidiary Type of
subsidiary
Registration
place Business nature Registered capital Business scope
Actual amount
of
contribution
as at
December 31,
2013
Balance of
other items
constituting
net investment
in subsidiary
in essence
Share
ownership
(%)
Voting
ratio
(%)
Consolidated
statement or
not
Minority
interest
Amount of
minority interest
used to offset
profit or loss
attributable to
minority
shareholders
Owners’ equity of the
parent company after
offsetting the excess
of current loss shared
by minority
shareholders of
subsidiary over the
minority equity in
such subsidiary as at
January 1, 2013
17-2-1. Changchun Poly Real
Estate Development Co., Ltd.
(“Changchun Poly”)
Wholly-owned
subsidiary Changchun
Real estate
development 5,000
Real estate
development
and operation,
etc. 5,000 100 100 Yes -
17-3. Changchun City East
Long Real Estate Development
Co., Ltd. (“Changchun East
Long”)
Wholly-owned
subsidiary Changchun
Real estate
development 1,000
Real estate
development
and operation,
etc. 1,000 100 100 Yes -
17-4. Changchun Poly Hengxin
Real Estate Development Co.,
Ltd. ("Changchun Hengxin")
Wholly-owned
subsidiary Changchun
Real estate
development 2,000
Real estate
development
and operation,
etc. 2,000 100 100 Yes -
18-1. POLY BEIJING Real
Estate Development Co., Ltd.
(“Poly Beijing”)
Wholly-owned
subsidiary Beijing
Real estate
development 30,000
Real estate
development,
sales of
commercial
housing, etc. 30,493.24 100 100 Yes -
18-2. BEIJING POLY XING
Real Estate Development Co.,
Ltd. (“Beijing Poly Xing”)
Wholly-owned
subsidiary Beijing
Real estate
development 1,000
Real estate
development
and operation,
etc. 1,000 100 100 Yes -
18-3. BEIJING POLY YING
Real Estate Development Co.,
Ltd. (“Beijing Poly Ying”)
Wholly-owned
subsidiary Beijing
Real estate
development 1,000
Real estate
development
and operation,
etc. 1,000 100 100 Yes -
18-4. BEIJING POLY CHENG
Real Estate Development Co.,
Ltd. (“Beijing Poly Cheng”)
Controlling
subsidiary Beijing
Real estate
development 1,000
Real estate
development
and operation,
etc. 900 90 90 Yes 1,992.52
POLY REAL ESTATE GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2013
Notes to Financial Statements Page 26
Full name of subsidiary Type of
subsidiary
Registration
place Business nature Registered capital Business scope
Actual amount
of
contribution
as at
December 31,
2013
Balance of
other items
constituting
net investment
in subsidiary
in essence
Share
ownership
(%)
Voting
ratio
(%)
Consolidated
statement or
not
Minority
interest
Amount of
minority interest
used to offset
profit or loss
attributable to
minority
shareholders
Owners’ equity of the
parent company after
offsetting the excess
of current loss shared
by minority
shareholders of
subsidiary over the
minority equity in
such subsidiary as at
January 1, 2013
18-5. Hebei Poly Real Estate
Development Co., Ltd. (“Hebei
Poly”)
Controlling
subsidiary
Shijiazhuan
g
Real estate
development 10,000
Real estate
development
and operation,
etc. 9,000 90 90 Yes 727.67
18-6-1. Beijing Poly An Ping
Pension Investment
Management Co., Ltd.
(“Beijing An Ping”)
Holding
subsidiary Beijing
Investment
management 2,000
Investment
management,
investment
advisory 1,020 51 51 Yes 487.81
18-6-2. Beijing An Ping
Policlinic Co., Ltd. (“Beijing
Anping Poclinic”)
Wholly-owned
subsidiary Beijing
Medical
treatment 500
Prevention and
healthcare,
medicine,
surgery, etc. 500 100 100 Yes -
18-7. BEIJING POLY Sunac
Real Estate Development Co.,
Ltd. (“Beijing Poly Sunac”)
Controlling
subsidiary Beijing
Real estate
development 200,000
Real estate
development,
sales of
commercial
housing, etc. 101,000 50.5 50.5 Yes 97,550.34
18-8. Beijing Poly Shoukai
Xingtai Property Co., Ltd.
(“Beijing Poly Shoukai”)
Controlling
subsidiary Beijing
Real estate
development 50,000
Real estate
development
and property
management,
etc. 25,500 51 51 Yes 23,585.71
18-9. Beijing Poly Real Estate
Development Co., Ltd.
("Beijing Poly Tong")
Controlling
subsidiary Beijing
Real estate
development 1,000
Real estate
development
and property
management,
etc. 650 65 65 Yes 324.75
POLY REAL ESTATE GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2013
Notes to Financial Statements Page 27
Full name of subsidiary Type of
subsidiary
Registration
place Business nature Registered capital Business scope
Actual amount
of
contribution
as at
December 31,
2013
Balance of
other items
constituting
net investment
in subsidiary
in essence
Share
ownership
(%)
Voting
ratio
(%)
Consolidated
statement or
not
Minority
interest
Amount of
minority interest
used to offset
profit or loss
attributable to
minority
shareholders
Owners’ equity of the
parent company after
offsetting the excess
of current loss shared
by minority
shareholders of
subsidiary over the
minority equity in
such subsidiary as at
January 1, 2013
18-10. Beijing Langtai Real
Estate Development Co., Ltd.
("Beijing Langtai")
Controlling
subsidiary Beijing
Real estate
development 130,000.
Real estate
development
and property
management,
etc. 65,000 50 50 Yes 64,975.83
18-11. Beijing Litong Real
Estate Development Co., Ltd.
("Beijing Litong")
Controlling
subsidiary Beijing
Real estate
development 10,000
Real estate
development
and property
management,
etc. 6,000 60 60 Yes 3,998.51
19-1. Poly Shanghai Real Estate
Development Co., Ltd.
(“Shanghai Poly”)
Controlling
subsidiary Shanghai
Real estate
development 10,000
Real estate
development
and operation,
etc. 6,087 61 61 Yes 4,392.98
19-2. Shanghai Junlan Property
Co., Ltd. (“Junlan Property”)
Controlling
subsidiary Shanghai
Real estate
development 1,000
Real estate
development
and operation,
etc. 1,000 100 100 Yes -
20-1. Shanghai Jianjin Real
Estate Co., Ltd. (“Shanghai
Jianjin”)
Wholly-owned
subsidiary Shanghai
Real estate
development 5,000
Real estate
development
and operation,
etc. 5,000 100 100 Yes -
20-2. Shanghai Poly Jianyong
Real Estate Co., Ltd.
(“Shanghai Jianyong”)
Wholly-owned
subsidiary Shanghai
Real estate
development 5,000
Real estate
development
and operation,
etc. 5,000 100 100 Yes -
POLY REAL ESTATE GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2013
Notes to Financial Statements Page 28
Full name of subsidiary Type of
subsidiary
Registration
place Business nature Registered capital Business scope
Actual amount
of
contribution
as at
December 31,
2013
Balance of
other items
constituting
net investment
in subsidiary
in essence
Share
ownership
(%)
Voting
ratio
(%)
Consolidated
statement or
not
Minority
interest
Amount of
minority interest
used to offset
profit or loss
attributable to
minority
shareholders
Owners’ equity of the
parent company after
offsetting the excess
of current loss shared
by minority
shareholders of
subsidiary over the
minority equity in
such subsidiary as at
January 1, 2013
20-3. Shanghai Poly Jianye
Real Estate Co., Ltd.
(“Shanghai Jianye”)
Wholly-owned
subsidiary Shanghai
Real estate
development 5,000
Real estate
development
and operation,
etc. 5,000 100 100 Yes -
20-4. Shanghai Poly Jianheng
Real Estate Co., Ltd.
(“Shanghai Jianheng”)
Wholly-owned
subsidiary Shanghai
Real estate
development 10,000
Real estate
development
and operation,
etc. 10,000 100 100 Yes -
20-5. Shanghai Poly Jianzhen
Real Estate Co., Ltd.
(“Shanghai Jianzhen”)
Wholly-owned
subsidiary Shanghai
Real estate
development 5,000
Real estate
development
and operation,
etc. 5,000 100 100 Yes -
20-6. Shanghai Poly Jianzhen
Investment Consultation Co.,
Ltd. (“Shanghai Jianzhen”)
Wholly-owned
subsidiary Shanghai
Business
development 100
Real estate
development
and operation,
etc. 100 100 100 Yes -
20-7. Shanghai Poly Jianhao
Business Investment Co., Ltd.
(“Shanghai Jianhao”)
Controlling
subsidiary Shanghai
Real estate
development 394,676.4167
Real estate
development
and operation,
etc. 315,781 80.01 80.01 Yes 79,538.43
20-8. Jiashan An Ping Regimen
Property Co., Ltd. (“Jiashan
Property”)
Controlling
subsidiary Jiaxing
Real estate
development 1,000
Real estate
development
and operation,
etc. 700 70 70 Yes -201.52
20-9. Poly Property Nantong
Real Estate Co., Ltd. (“Poly
Nantong”)
Wholly-owned
subsidiary Nantong
Real estate
development 10,000
Real estate
development
and operation,
etc. 10,000 100 100 Yes -
POLY REAL ESTATE GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2013
Notes to Financial Statements Page 29
Full name of subsidiary Type of
subsidiary
Registration
place Business nature Registered capital Business scope
Actual amount
of
contribution
as at
December 31,
2013
Balance of
other items
constituting
net investment
in subsidiary
in essence
Share
ownership
(%)
Voting
ratio
(%)
Consolidated
statement or
not
Minority
interest
Amount of
minority interest
used to offset
profit or loss
attributable to
minority
shareholders
Owners’ equity of the
parent company after
offsetting the excess
of current loss shared
by minority
shareholders of
subsidiary over the
minority equity in
such subsidiary as at
January 1, 2013
20-10. Shanghai Poly Jianrong
Real Estate Co., Ltd.
(“Shanghai Jianrong”)
Wholly-owned
subsidiary Shanghai
Real estate
development 1,000
Real estate
development
and operation,
etc. 1,000 100 100 Yes -
20-11. Shanghai Poly Jianxi
Real Estate Co., Ltd.
(“Shanghai Jianxi”)
Controlling
subsidiary Shanghai
Real estate
development 100,000
Real estate
development
and operation,
etc. 51,000 51 51 Yes 48,595.03
20-12. Shanghai Poly
Hongrong Real Estate Co., Ltd.
(“Shanghai Hongrong”)
Controlling
subsidiary Shanghai
Real estate
development 200,000
Real estate
development
and operation,
etc. 102,000 51 51 Yes 96,343.40
20-13. Shanghai Poly Jianying
Real Estate Co., Ltd.
(“Shanghai Jianying”)
Controlling
subsidiary Shanghai
Real estate
development 10,000
Real estate
development
and operation,
etc. 5,100 51 51 Yes 4,817.44
20-14. Shanghai Poly Jianjing
Real Estate Co., Ltd.
("Shanghai Jianjing")
Wholly-owned
subsidiary Shanghai
Real estate
development 10,000
Real estate
development
and operation,
etc. 10,000 100 100 Yes -
21-1. Shanghai Poly Jianlin
Real Estate Co., Ltd.
(“Shanghai Jianlin”)
Wholly-owned
subsidiary Shanghai
Real estate
development 10,000
Housing
development
and operation,
etc. 10,000 100 100 Yes -
21-2. Shanghai Poly Jiankun
Real Estate Co., Ltd.
(“Shanghai Jiankun”)
Wholly-owned
subsidiary Shanghai
Real estate
development 10,000
Real estate
development
and operation,
etc. 10,000 100 100 Yes -
POLY REAL ESTATE GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2013
Notes to Financial Statements Page 30
Full name of subsidiary Type of
subsidiary
Registration
place Business nature Registered capital Business scope
Actual amount
of
contribution
as at
December 31,
2013
Balance of
other items
constituting
net investment
in subsidiary
in essence
Share
ownership
(%)
Voting
ratio
(%)
Consolidated
statement or
not
Minority
interest
Amount of
minority interest
used to offset
profit or loss
attributable to
minority
shareholders
Owners’ equity of the
parent company after
offsetting the excess
of current loss shared
by minority
shareholders of
subsidiary over the
minority equity in
such subsidiary as at
January 1, 2013
21-3. Shanghai Poly Jiancui
Real Estate Co., Ltd.
(“Shanghai Jiancui”)
Wholly-owned
subsidiary Shanghai
Real estate
development 10,000
Real estate
development
and operation,
etc. 10,000 100 100 Yes -
22-1. Poly South China
Holdings Co., Ltd. (“South
China Holdings”)
Wholly-owned
subsidiary Foshan
Real estate
development 10,000
Real estate
development
and property
management,
etc. 10,000 100 100 Yes -
22-2. Foshan Shunde District
Poly Real Estate Co., Ltd.
(“Shunde Poly”)
Wholly-owned
subsidiary Foshan
Real estate
development 5,000
Real estate
development
and operation,
etc. 5,000 100 100 Yes -
22-2-1. Foshan Shunde Poly
Hengkun Real Estate
Development Co., Ltd.
(“Foshan Hengkun”)
Wholly-owned
subsidiary Foshan
Real estate
development 5,000
Real estate
development
and operation,
etc. 5,000 100 100 Yes -
22-3. Poly (Foshan) Hotel Co.,
Ltd. (“Foshan Hotel”)
Wholly-owned
subsidiary Foshan
Hotel
management 100
Tourism,
catering, hotel
management
services 100 100 100 Yes -
22-4. Foshan Poly Real Estate
Development Co., Ltd.
(“Foshan Poly”)
Wholly-owned
subsidiary Foshan
Real estate
development 2,000
Real estate
development
and operation,
etc. 2,000 100 100 Yes -
22-5. Foshan Poly Zhenggao
Real Estate Development Co.,
Ltd. (“Foshan Zhenggao”)
Controlling
subsidiary Foshan
Real estate
development 1,000
Real estate
development
and operation,
etc. 600 60 60 Yes -373.01
POLY REAL ESTATE GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2013
Notes to Financial Statements Page 31
Full name of subsidiary Type of
subsidiary
Registration
place Business nature Registered capital Business scope
Actual amount
of
contribution
as at
December 31,
2013
Balance of
other items
constituting
net investment
in subsidiary
in essence
Share
ownership
(%)
Voting
ratio
(%)
Consolidated
statement or
not
Minority
interest
Amount of
minority interest
used to offset
profit or loss
attributable to
minority
shareholders
Owners’ equity of the
parent company after
offsetting the excess
of current loss shared
by minority
shareholders of
subsidiary over the
minority equity in
such subsidiary as at
January 1, 2013
22-6. Foshan Poly Hengshun
Property Co., Ltd. (“Foshan
Hengshun”)
Controlling
subsidiary Foshan
Real estate
development 30,000
Real estate
development
and operation,
etc. 15,300 51 51 Yes 14,383.13
22-7. Foshan Poly Hengxin
Real Estate Co., Ltd. (“Foshan
Hengxin”)
Controlling
subsidiary Foshan
Real estate
development 30,000
Real estate
development
and operation,
etc. 15,300 51 51 Yes 18,676.82
22-8. Foshan South Sea Poly
Hairong Investment Co., Ltd.
(“South Sea Hairong”)
Controlling
subsidiary Foshan
Real estate
development 80,000
Real estate
development
and operation,
etc. 48,000 60 60 Yes 30,790.44
22-9. Foshan Poly Xincheng
Real Estate Development Co.,
Ltd. (“Foshan Xincheng”)
Controlling
subsidiary Foshan
Real estate
development 20,000
Real estate
development
and property
management,
etc. 10,000 50 50 Yes 9,040.29
22-10. Foshan Poly Hongsheng
Property Development Co., Ltd.
(“Foshan Hongsheng”)
Controlling
subsidiary Foshan
Real estate
development 10,000
Real estate
development
and operation,
etc. 5,100 51 51 Yes 4,411.40
22-11. Jiangmen Poly Hongxin
Real Estate Co., Ltd.
(“Jiangmen Hongxin”)
Controlling
subsidiary Jiangmen
Real estate
development 10,000
Real estate
development
and operation,
etc. 5,000 50 50 Yes 4,366.23
22-12. Jiangmen Poly Binjiang
New Town Development Co.,
Ltd. (“Jiangmen Binjiang”)
Controlling
subsidiary Jiangmen
Real estate
development 5,000
Real estate
development
and operation,
etc. 5,000 100 100 Yes -
POLY REAL ESTATE GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2013
Notes to Financial Statements Page 32
Full name of subsidiary Type of
subsidiary
Registration
place Business nature Registered capital Business scope
Actual amount
of
contribution
as at
December 31,
2013
Balance of
other items
constituting
net investment
in subsidiary
in essence
Share
ownership
(%)
Voting
ratio
(%)
Consolidated
statement or
not
Minority
interest
Amount of
minority interest
used to offset
profit or loss
attributable to
minority
shareholders
Owners’ equity of the
parent company after
offsetting the excess
of current loss shared
by minority
shareholders of
subsidiary over the
minority equity in
such subsidiary as at
January 1, 2013
23-13.Foshan Poly Hengsheng
Property Co., Ltd. ("Foshan
Hengsheng")
Controlling
subsidiary Foshan
Real estate
development 10,000
Real estate
development
and property
management,
etc. 5,100 51 51 Yes 4,896.96
22-14. Foshan Sanshui Poly
Xinhe Real Estate Development
Co., Ltd. ("Foshan Sanshui")
Controlling
subsidiary Foshan
Real estate
development 10,000
Real estate
development
and property
management,
etc. 1,020 51 51 Yes 964.75
22-15.Poly (Zhanjiang) Real
Estate Development Co., Ltd.
("Poly Zhanjiang")
Controlling
subsidiary Zhanjiang
Real estate
development 50,000
Real estate
development
and operation,
etc. 6,500 65 65 Yes 3,384.44
22-16.Poly Shaoguan Real
Estate Co., Ltd. ("Poly
Shaoguan")
Controlling
subsidiary Shaoguan
Real estate
development 50,000
Real estate
development
and operation,
etc. 5,100 51 51 Yes 4,890.23
23-1. Poly (Chongqing)
Investment Industry Co., Ltd.
(“Chongqing Investment”)
Wholly-owned
subsidiary Chongqing
Real estate
development 50,000
Project
investment, etc. 50,000 100 100 Yes -
23-2. Chongqing Poly
Zhonghui Real Estate
Development Co., Ltd.
(“Chongqing Zhonghui”)
Wholly-owned
subsidiary Chongqing
Real estate
development 5,000
Real estate
development
and operation,
etc. 5,000 100 100 Yes -
23-3. Chongqing Baocheng
Real Estate Development Co.,
Ltd. (“Chongqing Baocheng”)
Controlling
subsidiary Chongqing
Real estate
development 133,000
Real estate
development
and sale, etc. 67,830 51 51 Yes 63,456.66
POLY REAL ESTATE GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2013
Notes to Financial Statements Page 33
Full name of subsidiary Type of
subsidiary
Registration
place Business nature Registered capital Business scope
Actual amount
of
contribution
as at
December 31,
2013
Balance of
other items
constituting
net investment
in subsidiary
in essence
Share
ownership
(%)
Voting
ratio
(%)
Consolidated
statement or
not
Minority
interest
Amount of
minority interest
used to offset
profit or loss
attributable to
minority
shareholders
Owners’ equity of the
parent company after
offsetting the excess
of current loss shared
by minority
shareholders of
subsidiary over the
minority equity in
such subsidiary as at
January 1, 2013
23-4.Chongqing Baochang Real
Estate Development Co., Ltd.
("Chongqing Baochang")
Controlling
subsidiary Chongqing
Real estate
development 37,500
Real estate
development
and sale, etc. 9,375 50 50 Yes 9,375.34
23-5.Chongqing Baofang Real
Estate Development Co., Ltd.
("Chongqing Baofang")
Controlling
subsidiary Chongqing
Real estate
development 116,974
Real estate
development
and operation,
etc. 11,931 51 51 Yes 11,438.07
23-6.Chongqing Baoxiang Real
Estate Development Co., Ltd.
("Chongqing Baoxiang") (see
note)
Controlling
subsidiary Chongqing
Real estate
development 2,000
Real estate
development
and property
management,
etc. 500 25 50 Yes 1,496.39
23-7.Chongqing Baosheng Real
Estate Development Co., Ltd.
("Chongqing Baosheng")
Wholly-owned
subsidiary Chongqing
Real estate
development 10,000
Real estate
development
and operation,
etc. 10,000 100 100 Yes -
24-1. Poly (Tian Jin) Real
Estate Development Co., Ltd.
(“Tianjin Poly”)
Wholly-owned
subsidiary Tianjin
Real estate
development 20,000
Real estate
development,
etc. 20,000 100 100 Yes -
24-2. Tianjin Champagne Poly
Real Estate Development Co.,
Ltd. (“Tianjin Champagne”)
Wholly-owned
subsidiary Tianjin
Real estate
development 10,000
Real estate
development
and operation,
etc. 10,000 100 100 Yes -
24-3. Tianjin Poly Kunlun Real
Estate Development Co., Ltd.
(“Tianjin Kunlun”)
Wholly-owned
subsidiary Tianjin
Real estate
development 10,000
Real estate
development
and operation,
etc. 10,000 100 100 Yes -
POLY REAL ESTATE GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2013
Notes to Financial Statements Page 34
Full name of subsidiary Type of
subsidiary
Registration
place Business nature Registered capital Business scope
Actual amount
of
contribution
as at
December 31,
2013
Balance of
other items
constituting
net investment
in subsidiary
in essence
Share
ownership
(%)
Voting
ratio
(%)
Consolidated
statement or
not
Minority
interest
Amount of
minority interest
used to offset
profit or loss
attributable to
minority
shareholders
Owners’ equity of the
parent company after
offsetting the excess
of current loss shared
by minority
shareholders of
subsidiary over the
minority equity in
such subsidiary as at
January 1, 2013
24-4. Poly & Sunac Tianjin
Investment Co., Ltd. (“Tianjin
Sunac”)
Controlling
subsidiary Tianjin
Real estate
development 200,000
Real estate
investment,
development 102,000 51 51 Yes 94,950.47
24-5. Tianjin Poly Rongchang
Real Estate Development Co.,
Ltd. ("Poly Rongchang")
Wholly-owned
subsidiary Tianjin
Real estate
development 3,000
Real estate
development
and operation,
etc. 3,000 100 100 Yes -
24-6. Tianjin Poly Shengtai
Industrial Co., Ltd. ("Poly
Shengtai")
Wholly-owned
subsidiary Tianjin
Manufacturing
of building
materials 14,000
Building
materials
manufacturing,
sales, etc. 14,000 100 100 Yes -
24-7. Tianjin Ronghong
Shenglong Industrial Co., Ltd.
("Ronghong Shenglong")
Wholly-owned
subsidiary Tianjin
Sale of building
materials 5,000
Development
and transfer of
Building
material
technologies,
and sale of
building
materials 1,000 100 100 Yes -
25-1. Poly (Wuhan) Real Estate
Development Co., Ltd. (“Poly
Wuhan”)
Wholly-owned
subsidiary Wuhan
Real estate
development 10,000
Real estate
development,
sale of
commercial
housing, etc. 10,132 100 100 Yes -
25-2. Wuhan Poly Lily Real
Estate Development Co., Ltd.
(“Wuhan Lily”)
Wholly-owned
subsidiary Wuhan
Real estate
development 5,000
Real estate
development
and operation,
etc. 5,000 100 100 Yes -
POLY REAL ESTATE GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2013
Notes to Financial Statements Page 35
Full name of subsidiary Type of
subsidiary
Registration
place Business nature Registered capital Business scope
Actual amount
of
contribution
as at
December 31,
2013
Balance of
other items
constituting
net investment
in subsidiary
in essence
Share
ownership
(%)
Voting
ratio
(%)
Consolidated
statement or
not
Minority
interest
Amount of
minority interest
used to offset
profit or loss
attributable to
minority
shareholders
Owners’ equity of the
parent company after
offsetting the excess
of current loss shared
by minority
shareholders of
subsidiary over the
minority equity in
such subsidiary as at
January 1, 2013
25-3. Huanggang Poly Real
Estate Development Co., Ltd.
(“Huanggang Poly”)
Wholly-owned
subsidiary Huanggang
Real estate
development 2,000
Real estate
development,
etc. 2,000 100 100 Yes -
25-4. Wuhan Poly Mayflower
Real Estate Development Co.,
Ltd. (“Poly Mayflower”)
Wholly-owned
subsidiary Wuhan
Real estate
development 2,000
Real estate
development,
etc. 2,000 100 100 Yes -
25-5. Wuhan Poly Jinqiao Real
Estate Development Co., Ltd.
(“Wuhan Jinqiao”)
Controlling
subsidiary Wuhan
Real estate
development 2,000
Real estate
development,
etc. 2,000 100 100 Yes -
25-6. Wuhan Lin Yu Real Estate
Development Co., Ltd.
(“Wuhan Lin Yu”)
Controlling
subsidiary Wuhan
Real estate
development 9,803.92
Real estate
development,
etc. 5,000 51 51 Yes 22,576.22
25-7. Wuhan Lin Hai Real
Estate Development Co., Ltd.
(“Wuhan Lin Hai”)
Wholly-owned
subsidiary Wuhan
Real estate
development 5,000
Real estate
development,
etc. 5,000 100 100 Yes -
25-8. Wuhan Poly Kangqiao
Real Estate Development Co.,
Ltd. (“Wuhan Kangqiao”)
Controlling
subsidiary Wuhan
Real estate
development 10,000
Real estate
development,
sale of
commercial
housing, etc. 5,000 50 50 Yes 12,848.49
25-9. Wuhan Poly Jingu Real
Estate Development Co., Ltd.
(“Wuhan Jingu”)
Controlling
subsidiary Wuhan
Real estate
development 5,000
Real estate
development
and sale 4,000 80 80 Yes 512.67
26. Poly Bogaohua (Wuhan)
Real Estate Co., Ltd. (“Poly
Bogaohua”)
Controlling
subsidiary Wuhan
Real estate
development 15,000
Housing
development,
etc. 10,500 70 70 Yes 7,180.11
27-1. Zhejiang Poly Real Estate
Development Co., Ltd.
(“Zhejiang Poly”)
Wholly-owned
subsidiary Hangzhou
Real estate
development 10,000
Real estate
development
and operation 10,000 100 100 Yes -
POLY REAL ESTATE GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2013
Notes to Financial Statements Page 36
Full name of subsidiary Type of
subsidiary
Registration
place Business nature Registered capital Business scope
Actual amount
of
contribution
as at
December 31,
2013
Balance of
other items
constituting
net investment
in subsidiary
in essence
Share
ownership
(%)
Voting
ratio
(%)
Consolidated
statement or
not
Minority
interest
Amount of
minority interest
used to offset
profit or loss
attributable to
minority
shareholders
Owners’ equity of the
parent company after
offsetting the excess
of current loss shared
by minority
shareholders of
subsidiary over the
minority equity in
such subsidiary as at
January 1, 2013
27-2. Zhejiang Poly Jianyi Real
Estate Development Co., Ltd.
(“Hangzhou Jianyi”)
Wholly-owned
subsidiary Hangzhou
Real estate
development 10,000
Real estate
development
and operation 10,000 100 100 Yes -
27-3. Hangzhou Poly Jianjia
Real Estate Development Co.,
Ltd. (“Hangzhou Jianjia”)
Wholly-owned
subsidiary Hangzhou
Real estate
development 10,000
Real estate
development
and operation 10,000 100 100 Yes -
27-4. Hangzhou Poly Jianjin
Real Estate Development Co.,
Ltd.("Hangzhou Jianjin")
Wholly-owned
subsidiary Hangzhou
Real estate
development 10,000
Real estate
development,
etc. 10,000 100 100 Yes -
27-5. Cixi Poly Jianjin Real
Estate Development Co.,
Ltd.("Cixi Poly")
Wholly-owned
subsidiary Ningbo
Real estate
development 10,000
Real estate
development
and operation 10,000 100 100 Yes -
27-6. Shaoxing Poly Real
Estate Development Co., Ltd.
("Shaoxing Poly")
Wholly-owned
subsidiary Shaoxing
Real estate
development 5,000
Real estate
development
and operation,
etc. 5,000 100 100 Yes -
27-7. Hangzhou Poly Jianlin
Real Estate Development Co.,
Ltd.("Hangzhou Jianlin")
Wholly-owned
subsidiary Hangzhou
Real estate
development 10,000
Real estate
development 10,000 100 100 Yes -
27-8. Hangzhou Dongliang
Investment Management Co.,
Ltd.("Hangzhou Dongliang")
Wholly-owned
subsidiary Hangzhou
Investment
management 10
Investment
management
and advisory 10 100 100 Yes -
28-1. Poly (Chengdu) Holdings
Co., Ltd. (“Poly Chengdu”)
Wholly-owned
subsidiary Chengdu
Real estate
development 20,000
Real estate
development
and operation 20,000 100 100 Yes 1,416.96
28-2. Xindu District Chengdu
Poly Investment Co., Ltd.
(Xindu Poly)
Controlling
subsidiary Chengdu
Real estate
development 10,000
Real estate
development
and operation,
etc. 9,000 90 90 Yes 4,766.61
POLY REAL ESTATE GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2013
Notes to Financial Statements Page 37
Full name of subsidiary Type of
subsidiary
Registration
place Business nature Registered capital Business scope
Actual amount
of
contribution
as at
December 31,
2013
Balance of
other items
constituting
net investment
in subsidiary
in essence
Share
ownership
(%)
Voting
ratio
(%)
Consolidated
statement or
not
Minority
interest
Amount of
minority interest
used to offset
profit or loss
attributable to
minority
shareholders
Owners’ equity of the
parent company after
offsetting the excess
of current loss shared
by minority
shareholders of
subsidiary over the
minority equity in
such subsidiary as at
January 1, 2013
28-3. Suining Baoxin
Investment Co., Ltd. ("Suining
Baoxin")
Controlling
subsidiary Suining
Real estate
development 10,000
Real estate
development
and operation,
etc. 5,100 51 51 Yes 4,396.32
28-4. Poly (Chengdu) Real
Estate Development Co., Ltd.
(“Chengdu Real Estate”)
Wholly-owned
subsidiary Chengdu
Real estate
development 20,000
Real estate
development
and operation 20,000 100 100 Yes -
28-4-1. Chengdu Baolong Real
Estate Development Co., Ltd.
("Chengdu Baolong")
Wholly-owned
subsidiary Chengdu
Real estate
development 1,000
Real estate
development
and operation 1,000 100 100 Yes -
28-5. Chengdu Baohua Real
Estate Development Co., Ltd.
(“Chengdu Baohua”)
Wholly-owned
subsidiary Chengdu
Real estate
development 10,000
Real estate
development
and operation 10,000 100 100 Yes -
28-6. Chengdu Baofeng
Investment Co., Ltd. (“Chengdu
Baofeng”)
Controlling
subsidiary Chengdu
Real estate
development 10,000
Real estate
development
and operation 5,100 51 51 Yes 7,202.59
28-7. Poly (Deyang) Industrial
Co., Ltd. (“Poly Deyang”)
Controlling
subsidiary Deyang
Real estate
development 10,000
Real estate
development
and operation 5,000 50 50 Yes 4,823.34
28-8. Poly (Deyang) Holdings
Co., Ltd. (“Deyang Property”)
Controlling
subsidiary Deyang
Real estate
development 10,000
Real estate
development
and operation 5,000 50 50 Yes 12,544.04
28-9. Chengdu Baoxin
Investment Co., Ltd. (“Chengdu
Baoxin”)
Wholly-owned
subsidiary Chengdu
Real estate
development 20,000
Real estate
development
and operation 20402.18 100 100 Yes
28-10. Chengdu Poly Huayang
Investment Co., Ltd. (“Chengdu
Huayang”)
Wholly-owned
subsidiary Chengdu
Real estate
development 5,000
Real estate
development
and operation,
etc. 5,000 100 100 Yes
POLY REAL ESTATE GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2013
Notes to Financial Statements Page 38
Full name of subsidiary Type of
subsidiary
Registration
place Business nature Registered capital Business scope
Actual amount
of
contribution
as at
December 31,
2013
Balance of
other items
constituting
net investment
in subsidiary
in essence
Share
ownership
(%)
Voting
ratio
(%)
Consolidated
statement or
not
Minority
interest
Amount of
minority interest
used to offset
profit or loss
attributable to
minority
shareholders
Owners’ equity of the
parent company after
offsetting the excess
of current loss shared
by minority
shareholders of
subsidiary over the
minority equity in
such subsidiary as at
January 1, 2013
28-11. Linzhi Poly Tourism
Development Co., Ltd. (“Linzhi
Poly”)
Wholly-owned
subsidiary Linzhi
Hotel
management 2,000
Tourist souvenir
sales, hotel
management,
etc. 2,000 100 100 Yes
29. Chengdu Baorong Real
Estate Development Co., Ltd.
(“Chengdu Baorong”)
Controlling
subsidiary Chengdu
Real estate
development 5,000
Real estate
development
and operation,
etc. 2,550 51 51 Yes 50,784.89
30-1. Hunan Poly Real Estate
Development Co., Ltd. (“Hunan
Poly”)
Controlling
subsidiary Changsha
Real estate
development 5,000
Real estate
development
and operation,
etc. 4,300 86 86 Yes 19,069.97
30-2. Changsha Yongfeng
Eco-Zoo Construction and
Development Co., Ltd.
(“Changsha Yongfeng”)
Controlling
subsidiary Changsha
Real estate
development 2,000
Real estate
development,
etc. 1,400 70 70 Yes 600.00
30-3. Changsha Jinli Hetai Real
Estate Development Co., Ltd.
(“Changsha Jinlin Hetai”)
Controlling
subsidiary Changsha
Real estate
development 1,000
Real estate
development
and operation,
etc. 700 70 70 Yes 2,279.92
30-4. Changsha Nanhu Square
Property Co., Ltd. (Nanhu
Property)
Controlling
subsidiary Changsha
Real estate
development 1,000
Real estate
development
and operation,
etc. 1,000 100 100 Yes
30-5. Yueyang Poly Property
Co., Ltd. (“Yueyang Poly”)
Controlling
subsidiary Yueyang
Real estate
development 2,000
Real estate
development
and operation,
etc. 2,000 100 100 Yes
POLY REAL ESTATE GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2013
Notes to Financial Statements Page 39
Full name of subsidiary Type of
subsidiary
Registration
place Business nature Registered capital Business scope
Actual amount
of
contribution
as at
December 31,
2013
Balance of
other items
constituting
net investment
in subsidiary
in essence
Share
ownership
(%)
Voting
ratio
(%)
Consolidated
statement or
not
Minority
interest
Amount of
minority interest
used to offset
profit or loss
attributable to
minority
shareholders
Owners’ equity of the
parent company after
offsetting the excess
of current loss shared
by minority
shareholders of
subsidiary over the
minority equity in
such subsidiary as at
January 1, 2013
30-6. Chenzhou Qianjiasheng
Real Estate Co., Ltd.
(“Chenzhou Qianjiasheng”)
Controlling
subsidiary Chenzhou
Real estate
development 2,000
Real estate
development
and operation 2,000 100 100 Yes
31. Poly (Hunan) Investment
Co., Ltd. ("Hunan Investment")
Wholly-owned
subsidiary Changsha
Real estate
development 50,000
Real estate
development
and operation,
etc. 50,000 100 100 Yes
31-1. Poly (Changsha) West
Coast Property Co., Ltd.
("Changsha West Coast")
Controlling
subsidiary Changsha
Real estate
development 20,000
Real estate
development 10,000 50 50 Yes 9,455.26
32-1.Poly Jiangsu Real Estate
Development Co., Ltd. ("Poly
Jiangsu")
Wholly-owned
subsidiary Nanjing
Real estate
development 10,000
Real estate
development
and operation,
etc. 10,000 100 100 Yes
32-2. Jiangsu Poly Ningxiang
Real Estate Co., Ltd. ("Jiangsu
Ningxiang")
Wholly-owned
subsidiary Nanjing
Real estate
development 5,000
Real estate
development
and operation,
etc. 5,000 100 100 Yes
32-3.Jiangsu Poly Ningsheng
Real Estate Development Co.,
Ltd. (Jiangsu Ningsheng)
Controlling
subsidiary Nanjing
Real estate
development 10,000
Real estate
development
and operation,
etc. 5,100 51 51 Yes 3,532.37
32-4. Poly Ningyuan Wuxi Real
Estate Development Co., Ltd.
(“Ningyuan Wuxi”)
Wholly-owned
subsidiary Wuxi
Real estate
development 2,000
Real estate
development
and operation,
etc. 2,000 100 100 Yes
POLY REAL ESTATE GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2013
Notes to Financial Statements Page 40
Full name of subsidiary Type of
subsidiary
Registration
place Business nature Registered capital Business scope
Actual amount
of
contribution
as at
December 31,
2013
Balance of
other items
constituting
net investment
in subsidiary
in essence
Share
ownership
(%)
Voting
ratio
(%)
Consolidated
statement or
not
Minority
interest
Amount of
minority interest
used to offset
profit or loss
attributable to
minority
shareholders
Owners’ equity of the
parent company after
offsetting the excess
of current loss shared
by minority
shareholders of
subsidiary over the
minority equity in
such subsidiary as at
January 1, 2013
32-5. Poly Lianyungang Real
Estate Development Co., Ltd.
("Poly Lianyungang")
Wholly-owned
subsidiary
Lianyun-
gang
Real estate
development 5,000
Real estate
development
and operation,
etc. 5,000 100 100 Yes
32-6. Poly Changzhou Real
Estate Development Co.,
Ltd.("Poly Changzhou")
Wholly-owned
subsidiary Changzhou
Real estate
development 2,000
Real estate
development
and operation,
etc. 2,000 100 100 Yes
32-7. Jiangsu Poly Ningheng
Real Estate Development Co.,
Ltd. ("Poly Ningheng")
Wholly-owned
subsidiary Nanjing
Real estate
development 5,000
Real estate
development
and operation,
etc. 5,000 100 100 Yes
33. Jiangsu Poly Ningyuan Real
Estate Development Co., Ltd.
("Jiangsu Ningyuan")
Controlling
subsidiary Nanjing
Real estate
development 9,803.92
Real estate
development
and operation,
etc. 5,000 51 51 Yes 36,394.55
34. Wuxi Poly Zhiyuan Real
Estate Development Co.,
Ltd.("Wuxi Zhiyuan")
Controlling
subsidiary Wuxi
Real estate
development 10,000
Real estate
development
and operation,
etc. 5,100 51 51 Yes 4,483.99
35. Poly Anxin (Qingdao) Real
Estate Development Co., Ltd.
("Qingdao Anxin")
Controlling
subsidiary Qingdao
Real estate
development 10,000
Housing
development,
etc. 6,400 64 64 Yes 3,519.67
36-1. Poly (Qingdao) Industrial
Co., Ltd. ("Poly Qingdao")
Wholly-owned
subsidiary Qingdao
Real estate
development 50,000
Real estate
development
and property
management,
etc. 50,000 100 100 Yes
POLY REAL ESTATE GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2013
Notes to Financial Statements Page 41
Full name of subsidiary Type of
subsidiary
Registration
place Business nature Registered capital Business scope
Actual amount
of
contribution
as at
December 31,
2013
Balance of
other items
constituting
net investment
in subsidiary
in essence
Share
ownership
(%)
Voting
ratio
(%)
Consolidated
statement or
not
Minority
interest
Amount of
minority interest
used to offset
profit or loss
attributable to
minority
shareholders
Owners’ equity of the
parent company after
offsetting the excess
of current loss shared
by minority
shareholders of
subsidiary over the
minority equity in
such subsidiary as at
January 1, 2013
36-2. Qingdao Poly
Guangcheng Property Co., Ltd.
("Qingdao Guangcheng")
Wholly-owned
subsidiary Qingdao
Real estate
development 5,000
Real estate
development
and property
management,
etc. 5,000 100 100 Yes
36-3. Qingdao Poly Guanghui
Property Co., Ltd. ("Qingdao
Guanghui")
Wholly-owned
subsidiary Qingdao
Real estate
development 10,000
Real estate
development
and property
management,
etc. 10,000 100 100 Yes
36-4. Qingdao Poly Guangyuan
Co., Ltd. ("Qingdao
Guangyuan")
Wholly-owned
subsidiary Qingdao
Real estate
development 5,000
Real estate
development
and property
management,
etc. 5,000 100 100 Yes
36-5. Qingdao Guangsheng
Property Co., Ltd. ("Qingdao
Guangsheng")
Controlling
subsidiary Qingdao
Real estate
development 1,000
Real estate
development
and property
management,
etc. 800 80 80 Yes 200.00
36-6. Qingdao Poly Guangheng
Property Co., Ltd. ("Qingdao
Guangheng")
Wholly-owned
subsidiary Qingdao
Real estate
development 1,000
Real estate
development
and property
management,
etc. 1,000 100 100 Yes
POLY REAL ESTATE GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2013
Notes to Financial Statements Page 42
Full name of subsidiary Type of
subsidiary
Registration
place Business nature Registered capital Business scope
Actual amount
of
contribution
as at
December 31,
2013
Balance of
other items
constituting
net investment
in subsidiary
in essence
Share
ownership
(%)
Voting
ratio
(%)
Consolidated
statement or
not
Minority
interest
Amount of
minority interest
used to offset
profit or loss
attributable to
minority
shareholders
Owners’ equity of the
parent company after
offsetting the excess
of current loss shared
by minority
shareholders of
subsidiary over the
minority equity in
such subsidiary as at
January 1, 2013
36-7. Qingdao Poly Shuangfeng
Property Co., Ltd.("Qingdao
Shuangfeng")
Controlling
subsidiary Qingdao
Real estate
development 95,578.8
Real estate
development
and property
management,
etc. 47,789.4 50 50 Yes 47,090.84
36-8. Qingdao Poly
Shuangyuan Property Co.,
Ltd.("Qingdao Shuangyuan")
Controlling
subsidiary Qingdao
Real estate
development 3,732.48
Real estate
development
and property
management,
etc. 1,866.24 50 50 Yes 1,850.08
36-9. Qingdao Guangrui
Property Co., Ltd.("Qingdao
Guangrui")
Controlling
subsidiary Qingdao
Real estate
development USD 8,000
Real estate
development
and property
management,
etc. USD 5,840 73 73 Yes 13,351.59
37-1. Poly (Yangjiang) Real
Estate Development Co., Ltd.
("Yangjiang Poly")
Wholly-owned
subsidiary Yangjiang
Real estate
development 6,000
Real estate
development
and operation,
etc. 6,000 100 100 Yes
37-2. Guangdong Poly South
Chinasea No. 1 Industry Co.,
Ltd. (“South Chinasea No. 1”)
Controlling
subsidiary Yangjiang
Culture
exhibition 6,666
Tourism
services,
museum
management,
etc. 3,776.04 75.01 75.01 Yes 1,132.34
38. Poly Hailingdao Real Estate
Development Co., Ltd. (“Poly
Hailingdao”)
Wholly-owned
subsidiary Yangjiang
Real estate
development 5,000
Real estate
development
and operation,
etc. 5,000 100 100 Yes
POLY REAL ESTATE GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2013
Notes to Financial Statements Page 43
Full name of subsidiary Type of
subsidiary
Registration
place Business nature Registered capital Business scope
Actual amount
of
contribution
as at
December 31,
2013
Balance of
other items
constituting
net investment
in subsidiary
in essence
Share
ownership
(%)
Voting
ratio
(%)
Consolidated
statement or
not
Minority
interest
Amount of
minority interest
used to offset
profit or loss
attributable to
minority
shareholders
Owners’ equity of the
parent company after
offsetting the excess
of current loss shared
by minority
shareholders of
subsidiary over the
minority equity in
such subsidiary as at
January 1, 2013
39. Poly (Xi’an) Real Estate
Development Co., Ltd. (“Poly
Xi’an”)
Controlling
subsidiary Xi'an
Real estate
development 100
Real estate
development
and property
management,
etc. 70 70 70 Yes -888.53
40. Shaanxi Poly Mindong Real
Estate Development Co., Ltd.
(“Shaanxi Mindong”)
Controlling
subsidiary Xi'an
Real estate
development 20,000
Real estate
development
and operation,
etc. 10,200 51 51 Yes 9,181.07
41-1. Shaanxi Poly Rong’an
Real Estate Development Co.,
Ltd. (“Shaanxi Rong’an”)
Controlling
subsidiary Xi'an
Real estate
development 3,000
Real estate
development
and operation,
etc. 2,700 90 90 Yes 46.97
41-2. Zhengzhou Poly Real
Estate Development Co., Ltd.
Wholly-owned
subsidiary Zhengzhou
Real estate
development 5,000
Real estate
development
and operation,
etc. 5,000 100 100 Yes
42. Shaanxi Poly Real Estate
Development Co., Ltd.
(“Shaanxi Poly”)
Wholly-owned
subsidiary Xi'an
Real estate
development 50,000
Real estate
development
and operation,
etc. 50,000 100 100 Yes
43. Poly (Baotou) Real Estate
Development Co., Ltd. (“Poly
Baotou”)
Controlling
subsidiary Baotou
Real estate
development 8,000
Real estate
development,
etc. 4,400 55 55 Yes 34,610.26
44-1. Hefei Poly Real Estate
Development Co., Ltd. (“Hefei
Poly”)
Controlling
subsidiary Hefei
Real estate
development 10,000
Real estate
development
and operation,
etc. 10,000 100 100 Yes
POLY REAL ESTATE GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2013
Notes to Financial Statements Page 44
Full name of subsidiary Type of
subsidiary
Registration
place Business nature Registered capital Business scope
Actual amount
of
contribution
as at
December 31,
2013
Balance of
other items
constituting
net investment
in subsidiary
in essence
Share
ownership
(%)
Voting
ratio
(%)
Consolidated
statement or
not
Minority
interest
Amount of
minority interest
used to offset
profit or loss
attributable to
minority
shareholders
Owners’ equity of the
parent company after
offsetting the excess
of current loss shared
by minority
shareholders of
subsidiary over the
minority equity in
such subsidiary as at
January 1, 2013
44-2. Hefei Poly Hesheng Real
Estate Co., Ltd. (“Hefei
Hesheng”)
Controlling
subsidiary Hefei
Real estate
development 10,000
Real estate
development
and operation,
etc. 10,000 100 100 Yes
44-2-1. Hefei Poly Hezhu Real
Estate Co., Ltd. (“Hefei
Hezhu”)
Wholly-owned
subsidiary Hefei
Real estate
development 10,000
Real estate
development
and sale, etc. 10,000 100 100 Yes
45. Hefei Poly Hexin Real
Estate Co., Ltd. (“Hefei
Hexin”)
Controlling
subsidiary Hefei
Real estate
development 2,000
Real estate
development
and sale, etc. 1,700 85 85 Yes 250.58
46. Hefei Poly Heheng Real
Estate Co., Ltd. (“Hefei
Heheng”)
Wholly-owned
subsidiary Hefei
Real estate
development 65,000
Real estate
development
and sale, etc. 65,000 100 100 Yes
47. Poly (Fujian) Real Estate
Investment Co., Ltd. ("Poly
Fujian")
Wholly-owned
subsidiary Fuzhou
Real estate
development 10,000
Real estate
development
and sale, etc. 10,000 100 100 Yes
48. Poly (Jiangxi) Real Estate
Investment Co., Ltd. ("Poly
Jiangxi")
Wholly-owned
subsidiary Nanchang
Real estate
development 50,000
Real estate
development
and sale, etc. 50,000 100 100 Yes
49-1. Poly (Sanya) Real Estate
Development Co., Ltd. (“Poly
Sanya”)
Wholly-owned
subsidiary Sanya
Real estate
development 20,000
Real estate
development
and operation,
etc. 20,000 100 100 Yes
POLY REAL ESTATE GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2013
Notes to Financial Statements Page 45
Full name of subsidiary Type of
subsidiary
Registration
place Business nature Registered capital Business scope
Actual amount
of
contribution
as at
December 31,
2013
Balance of
other items
constituting
net investment
in subsidiary
in essence
Share
ownership
(%)
Voting
ratio
(%)
Consolidated
statement or
not
Minority
interest
Amount of
minority interest
used to offset
profit or loss
attributable to
minority
shareholders
Owners’ equity of the
parent company after
offsetting the excess
of current loss shared
by minority
shareholders of
subsidiary over the
minority equity in
such subsidiary as at
January 1, 2013
49-2. Sanya Forum Center
Construction Co., Ltd. (“Sanya
Forum”)
Controlling
subsidiary Sanya
Real estate
development 5,000
Real estate
development
and operation,
etc. 2,500 50 50 Yes 2,003.89
49-3. Poly Haikou Real Estate
Development Co., Ltd. ("Poly
Haikou")
Wholly-owned
subsidiary Haikou
Real estate
development 5,000
Real estate
development
and operation,
etc. 5,000 100 100 Yes
50. Sanya Baoxin Xiande Real
Estate Development Co., Ltd.
(“Sanya Baoxin”)
Controlling
subsidiary Sanya
Real estate
development 30,000
Real estate
development
and operation,
etc. 15,000 50 50 Yes 14,836.91
51-1. Liaoning Fuli
Construction & Installation
Engineering Co., Ltd.
(“Liaoning Fuli”)
Wholly-owned
subsidiary Shenyang
Civil
engineering
construction 2,000
Civil
Engineering
Construction
and construction
design, etc. 2,000 100 100 Yes
51-2. Dalian Fuli Construction
& Installation Engineering Co.,
Ltd. (“Dalian Fuli”)
Wholly-owned
subsidiary Dalian
Civil
engineering
construction 2,000
Civil
Engineering
Construction
and construction
design, etc. 2,000 100 100 Yes
51-3. Jilin Fuli Construction &
Installation Engineering Co.,
Ltd. (“Jilin Fuli”)
Wholly-owned
subsidiary Changchun
Civil
engineering
construction 2,000
Civil
Engineering
Construction
and construction
design, etc. 2,000 100 100 Yes
POLY REAL ESTATE GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2013
Notes to Financial Statements Page 46
Full name of subsidiary Type of
subsidiary
Registration
place Business nature Registered capital Business scope
Actual amount
of
contribution
as at
December 31,
2013
Balance of
other items
constituting
net investment
in subsidiary
in essence
Share
ownership
(%)
Voting
ratio
(%)
Consolidated
statement or
not
Minority
interest
Amount of
minority interest
used to offset
profit or loss
attributable to
minority
shareholders
Owners’ equity of the
parent company after
offsetting the excess
of current loss shared
by minority
shareholders of
subsidiary over the
minority equity in
such subsidiary as at
January 1, 2013
51-4. Zhuhai Fuli Construction
& Installation Engineering Co.,
Ltd. (“Zhuhai Fuli”)
Wholly-owned
subsidiary Zhuhai
Civil
engineering
construction 1,000
Civil
Engineering
Construction
and construction
design, etc. 1,000 100 100 Yes
52-1. Poly Commercial Real
Estate Investment &
Management Co., Ltd. (“Poly
Commercial”)
Wholly-owned
subsidiary Guangzhou
Business
management
services and
real estate
development,
etc. 10,000
Real estate
development
and agency
services, etc 10,000 100 100 Yes
52-2. Guangzhou Poly Hotel
Management Co., Ltd. ("Hotel
Management")
Wholly-owned
subsidiary Guangzhou
Club
management 300
Hotel
management,
etc. 300 100 100 Yes
52-3. Guangzhou Poly
Commercial Management Co.,
Ltd. ("Poly Commercial")
Wholly-owned
subsidiary Guangzhou
Rental of
proprietary
properties 500
Rental of
proprietary
properties and
property
management,
etc. 500 100 100 Yes
53-1. Poly Property
Management Co., Ltd. (“Poly
Property Management”)
Wholly-owned
subsidiary Guangzhou
Property
management 5,000
Property
management
and outdoor &
indoor
decoration, etc. 5,000 100 100 Yes
53-2. Poly Xiamen Property
Management Co., Ltd.
(“Xiamen Property
Management”)
Wholly-owned
subsidiary Xiamen
Property
management 50
Property
management,
etc. 50 100 100 Yes
POLY REAL ESTATE GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2013
Notes to Financial Statements Page 47
Full name of subsidiary Type of
subsidiary
Registration
place Business nature Registered capital Business scope
Actual amount
of
contribution
as at
December 31,
2013
Balance of
other items
constituting
net investment
in subsidiary
in essence
Share
ownership
(%)
Voting
ratio
(%)
Consolidated
statement or
not
Minority
interest
Amount of
minority interest
used to offset
profit or loss
attributable to
minority
shareholders
Owners’ equity of the
parent company after
offsetting the excess
of current loss shared
by minority
shareholders of
subsidiary over the
minority equity in
such subsidiary as at
January 1, 2013
53-3. Poly Property
Management (Beijing) Co., Ltd.
(“Beijing Property
Management”)
Wholly-owned
subsidiary Beijing
Property
management 500
Property
management
and home
decoration, etc. 500 100 100 Yes
53-4. Poly Chongqing Property
Management Co., Ltd.
(“Chongqing Property
Management”)
Wholly-owned
subsidiary Chongqing
Property
management 500
Property
management,
etc. 500 100 100 Yes
53-5.Poly Shenyang Property
Management Co., Ltd.
(“Shengyang Property
Management”)
Controlling
subsidiary Shenyang
Property
management 500
Property
management,
etc. 500 100 100 Yes
53-6. Poly Wuhan Property
Management Co., Ltd. (“Wuhan
Property Management”)
Wholly-owned
subsidiary Wuhan
Property
management 508
Property
management,
etc. 508 100 100 Yes
53-7. Zhejiang Poly Property
Management Co., Ltd.
(“Zhejiang Property
Management”)
Wholly-owned
subsidiary Hangzhou
Property
management 500
Property
management,
etc. 500 100 100 Yes
53-8. Poly (Baotou) Property
Management Co., Ltd.
(“Baotou Property
Management”)
Controlling
subsidiary Baotou
Property
management 300
Property
management,
etc. 300 100 100 Yes
53-9. Yangjiang Poly Property
Management Co., Ltd.
(“Yangjiang Property
Management”)
Wholly-owned
subsidiary Yangjiang
Property
management 300
Property
management,
etc. 300 100 100 Yes
POLY REAL ESTATE GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2013
Notes to Financial Statements Page 48
Full name of subsidiary Type of
subsidiary
Registration
place Business nature Registered capital Business scope
Actual amount
of
contribution
as at
December 31,
2013
Balance of
other items
constituting
net investment
in subsidiary
in essence
Share
ownership
(%)
Voting
ratio
(%)
Consolidated
statement or
not
Minority
interest
Amount of
minority interest
used to offset
profit or loss
attributable to
minority
shareholders
Owners’ equity of the
parent company after
offsetting the excess
of current loss shared
by minority
shareholders of
subsidiary over the
minority equity in
such subsidiary as at
January 1, 2013
53-10. Jiangxi Poly Property
Management Co., Ltd.
(“Jiangxi Property
Management”)
Wholly-owned
subsidiary Nanchang
Property
management 300
Property
management,
etc. 300 100 100 Yes
53-11. Poly (Foshan) Property
Services Co., Ltd. (“Foshan
Property Service”)
Wholly-owned
subsidiary Foshan
Property
management 500
Property
management 500 100 100 Yes
53-12. Hunan Poly Prorerty
Management Co., Ltd. (“Hunan
Property Management”)
Controlling
subsidiary Changsha
Property
management 500
Property
management,
etc. 500 100 100 Yes
53-13. Poly Changchun
Property Service Co., Ltd.
(“Changchun Property
Management”)
Controlling
subsidiary Changchun
Property
management 300
Property
management,
etc. 300 100 100 Yes
53-14. Tianjin Poly
Metropolitan Property Service
Co. Ltd. (“Tianjin Property
Management”)
Wholly-owned
subsidiary Tianjin
Property
management 50
Property
management,
etc. 50 100 100 Yes
53-15. Shanghai Poly Property
Management Co., Ltd.
(“Shanghai Property
Management”)
Wholly-owned
subsidiary Shanghai
Property
management 100
Property
management,
etc. 100 100 100 Yes
53-16.Poly (Dalian) Property
Management Co., Ltd. (Dalian
Property)
Wholly-owned
subsidiary Dalian
Property
management 200
Property
management,
etc. 200 100 100 Yes
54. Guangzhou Poly Urban
Renewal Investments Co., Ltd.
("Poly Urban Renewal")
Wholly-owned
subsidiary Guangzhou
Real estate
development 10,000
Real estate
development
and operation,
etc. 10,000 100 100 Yes
POLY REAL ESTATE GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2013
Notes to Financial Statements Page 49
Full name of subsidiary Type of
subsidiary
Registration
place Business nature Registered capital Business scope
Actual amount
of
contribution
as at
December 31,
2013
Balance of
other items
constituting
net investment
in subsidiary
in essence
Share
ownership
(%)
Voting
ratio
(%)
Consolidated
statement or
not
Minority
interest
Amount of
minority interest
used to offset
profit or loss
attributable to
minority
shareholders
Owners’ equity of the
parent company after
offsetting the excess
of current loss shared
by minority
shareholders of
subsidiary over the
minority equity in
such subsidiary as at
January 1, 2013
55. Zhanjiang Xingsheng
Investment Co., Ltd.
("Zhanjiang Xingsheng")
Controlling
subsidiary Zhanjiang
Real estate
development 10,000
Real estate
development
and operation,
etc. 1,400 70 70 Yes 599.87
56. Hengfu (Hong Kong)Real
Estate Limited (“Hong Kong
Hengfu”)
Wholly-owned
subsidiary Hong Kong
Real estate
development
and operation USD 100
Real estate
development,
operation and
management USD 100 100 100 Yes
Note: According to the cooperation agreement and the articles of association, Chongqing Investment Company owns 50% equity rights and
shareholders' voting power.
POLY REAL ESTATE GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2013
Notes to Financial Statements Page 50
4.1.2 Subsidiary acquired through business combination under common control
Name of
subsidiary Type of subsidiary
Registration
place Business nature
Registered
capital Business scope
Actual amount
of contribution
as at December
31, 2013
Balance of
other items
constituting net
investment in
subsidiary in
essence
Shareholding
ratio (%)
Voting
ratio (%)
Consolidated
statement or not
Minority
equity
Amount of
minority equity
used to offset
profit or loss
attributable to
minority
shareholders
Owners’ equity
of the parent
company after
offsetting the
excess of current
loss shared by
minority
shareholders of
subsidiary over
the minority
equity in such
subsidiary as at
January 1, 2013
Chongqing Poly
Golf Club Co.,
Ltd.
(“Chongqing
Golf”)
Wholly-owned
subsidiary Chongqing
Golf course
management 6,000
Golf course
management, etc. 5,075.10 100 100 Yes
POLY REAL ESTATE GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2013
Notes to Financial Statements Page 51
4.1.3 Subsidiaries acquired through business combination not under common control
Name of subsidiary Type of
subsidiary
Registration
place
Business
nature
Registered
capital Business scope
Actual amount
of contribution
as at December
31, 2013
Balance of
other items
constituting
net
investment in
subsidiary in
essence
Shareholding
ratio (%)
Voting
ratio (%)
Consolidated
statement or
not
Minority
equity
Amount of
minority
equity used to
offset profit or
loss
attributable to
minority
shareholders
Owners’ equity of the
parent company after
offsetting the excess of
current loss shared by
minority shareholders of
subsidiary over the
minority equity in such
subsidiary as at January
1, 2013
1. Guangzhou Huachu Real
Estate Development Co., Ltd.
(“Huachu Corporation”)
Wholly-owned
subsidiary Guangzhou
Real estate
development 800
Real estate
development and
sale, etc. 800 100 100 Yes
2. Guanghou Tianli Real
Estate Development Co., Ltd.
(“Guangzhou Tianli”)
Controlling
subsidiary Guangzhou
Real estate
development 11,000
Real estate
development and
operation 11,071.08 51 51 Yes 26,497.33
3. Guangzhou Gemdale Real
Estate Development Co., Ltd.
(“Guangzhou Gemdale”)
Wholly-owned
subsidiary Guangzhou
Real estate
development 1,000
Real estate
development and
operation, etc. 3,993.97 100 100 Yes
4. Guangzhou Jinnuo Real
Estate Development Co., Ltd.
(“Guangzhou Jinnuo”)
Controlling
subsidiary Guangzhou
Real estate
development 1,500
Real estate
development 900 60 60 Yes 22,276.56
5. Guangzhou Elegance Real
Estate Development Co., Ltd.
(“Guangzhou Elegance”)
Wholly-owned
subsidiary Guangzhou
Real estate
development USD 5, 176
Housing
development, etc. USD 5, 176 100 100 Yes
6. Shenyang Wanyi Property
Co., Ltd. (“Shenyang
Wanyi”)
Controlling
subsidiary Shenyang
Real estate
development 21,202.3
Real estate
development 21,202.3 100 100 Yes
7. Poly Dandong Tianci Real
Estate Development Co., Ltd.
(“Dandong Poly”)
Controlling
subsidiary Dandong
Real estate
development 10,000
Real estate
development, sales
of commercial
housing, etc. 5,100 51 51 Yes 8,943.09
8. Shenyang Hirota Real
Estate Development Co., Ltd.
(“Shenyang Hirota”)
Wholly-owned
subsidiary Shenyang
Real estate
development 20,000
Real estate
development and
operation 20,000 100 100 Yes
9. Changchun Light Rail
Liuhe Real Estate
Development Co., Ltd.
(“Changchun Liuhe”)
Controlling
subsidiary Changchun
Real estate
development 10,000
Real estate
development and
operation 8,000 80 80 Yes 3,196.16
POLY REAL ESTATE GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2013
Notes to Financial Statements Page 52
Name of subsidiary Type of
subsidiary
Registration
place
Business
nature
Registered
capital Business scope
Actual amount
of contribution
as at December
31, 2013
Balance of
other items
constituting
net
investment in
subsidiary in
essence
Shareholding
ratio (%)
Voting
ratio (%)
Consolidated
statement or
not
Minority
equity
Amount of
minority
equity used to
offset profit or
loss
attributable to
minority
shareholders
Owners’ equity of the
parent company after
offsetting the excess of
current loss shared by
minority shareholders of
subsidiary over the
minority equity in such
subsidiary as at January
1, 2013
10. Beijing Yuanxin Real
Estate Development Co., Ltd.
(“Beijing Yuanxin”)
Wholly-owned
subsidiary Beijing
Real estate
development 2,000
Real estate
development and
operation, etc. 2,000 100 100 Yes
10-1. Shanxi Wanguo
Commercial Plaza
Development Co., Ltd.
("Shanxi Wanguo")
Controlling
subsidiary Taiyuan
Real estate
development 1,000
Real estate
development and
operation 700 70 70 Yes 282.50
11. Beijing Shi Bo Hong Ye
Real Estate Development
Co., Ltd. (“Beijing Shibo”)
Wholly-owned
subsidiary Beijing
Civil
engineering
construction 5,000
Real estate
development and
operation 5,113.32 100 100 Yes
12. Beijing Jinchenghua Real
Estate Development Co., Ltd.
(“Jinchenghua”)
Controlling
subsidiary Beijing
Real estate
development 3,000
Real estate
development, etc. 2,550 85 85 Yes 1,659.63
13.Shanghai Chengqian Real
Estate Development Co., Ltd.
(“Shanghai Chengqian”)
Wholly-owned
subsidiary Shanghai
Real estate
development 22,500
Real estate
development and
operation, etc. 27,983.36 100 100 Yes
14. Shanghai Jianqiao Real
Estate Co., Ltd. (“Shanghai
Jianqiao”)
Controlling
subsidiary Shanghai
Real estate
development 2,000
Real estate
development and
operation, etc. 1,800 90 90 Yes 361.41
15. Chongqing Shengchuang
Xinhao Real Estate
Development Co., Ltd.
(“Chongqing Shengchuang”)
Wholly-owned
subsidiary Chongqing
Real estate
development 2,000
Housing
development, etc. 2,000 100 100 Yes
16. Poly (Chengdu) Stone
Elephant Lake Tourism
Development Co., Ltd.
(“Chengdu Stone Elephant
Lake”)
Controlling
subsidiary Chengdu
Real estate
development 10,000
Real estate
development and
operation 9,000 90 90 Yes 1,618.14
POLY REAL ESTATE GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2013
Notes to Financial Statements Page 53
Name of subsidiary Type of
subsidiary
Registration
place
Business
nature
Registered
capital Business scope
Actual amount
of contribution
as at December
31, 2013
Balance of
other items
constituting
net
investment in
subsidiary in
essence
Shareholding
ratio (%)
Voting
ratio (%)
Consolidated
statement or
not
Minority
equity
Amount of
minority
equity used to
offset profit or
loss
attributable to
minority
shareholders
Owners’ equity of the
parent company after
offsetting the excess of
current loss shared by
minority shareholders of
subsidiary over the
minority equity in such
subsidiary as at January
1, 2013
17. Chengdu Futong Property
Co., Ltd. (“Chengdu
Futong”)
Wholly-owned
subsidiary Chengdu
Real estate
development 10,000
Real estate
development and
operation 2,6691.05 100 100 Yes
18. ChengDu Baoxin Real
Estate Development Co., Ltd.
(“Chengdu Baoxin”)
Controlling
subsidiary Chengdu
Real estate
development 10,000
Real estate
development 5,100 51 51 Yes 4,578.23
19. Chengdu Yachi Property
Co., Ltd. (“Chengdu Yachi”)
Controlling
subsidiary Chengdu
Real estate
development 7,000
Real estate
development and
operation 17,164.05 51 51 Yes 17,827.03
20. Hunan Huayuan Real
Estate Development Co., Ltd.
(“Hunan Huayuan”)
Controlling
subsidiary Changsha
Real estate
development 800
Real estate
development 1,800 100 100 Yes
21. Nanchang Ruida Property
Co., Ltd. (“Nanchang
Ruida”)
Wholly-owned
subsidiary Nanchang
Real estate
development 10,000
Real estate
development, etc. 63,540 100 100 Yes
22. Jiangxi Jintongtai
Property Co., Ltd. (“Jiangxi
Jintongtai”)
Controlling
subsidiary Nanchang
Real estate
development 3,000
Real estate
development and
property
management, etc. 2,250 75 75 Yes 1,072.97
23-1. Nanchang Mingya
European Town Industrial
Co., Ltd. (“Nanchang
Mingya”)
Controlling
subsidiary Nanchang
Real estate
and sports USD 2,500
Real estate
development and
sports and
health-building
centres, tourist
attractions
development and
catering USD 1,500 60 60 Yes 24,426.39
POLY REAL ESTATE GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2013
Notes to Financial Statements Page 54
Name of subsidiary Type of
subsidiary
Registration
place
Business
nature
Registered
capital Business scope
Actual amount
of contribution
as at December
31, 2013
Balance of
other items
constituting
net
investment in
subsidiary in
essence
Shareholding
ratio (%)
Voting
ratio (%)
Consolidated
statement or
not
Minority
equity
Amount of
minority
equity used to
offset profit or
loss
attributable to
minority
shareholders
Owners’ equity of the
parent company after
offsetting the excess of
current loss shared by
minority shareholders of
subsidiary over the
minority equity in such
subsidiary as at January
1, 2013
23-2. Nanchang Poly
Property Management Co.,
Ltd. (“Nanchang Property
Management”)
Controlling
subsidiary Nanchang
Property
Management 300
Property
Management 300 100 100 Yes
23-3. Nanchang Yagao
Industrial Co., Ltd.
(“Nanchang Yagao”)
Controlling
subsidiary Nanchang
Stadium and
gymnasium
management 60.68
Management of
stadiums or
gymnasiums and
fitness centers 60.68 100 100 Yes -
24. Qingdao West Sea Real
Estate Development Co., Ltd.
(“Qingdao West Sea”)
Wholly-owned
subsidiary Qingdao
Real estate
development 1,000
Real estate
development and
property
management, etc. 1,000 100 100 Yes -
25. Zhengzhou Hengtian
Xinghua Real Estate Co.,
Ltd. (“Zhengzhou Hengtian”)
Controlling
subsidiary Zhengzhou
Real estate
development 10,000
Real estate
development and
operation, etc. 10,000 50 50 Yes 8,425.93
26. Xi’an Xinrongjia Real
Estate Development Co., Ltd.
(“Xi’an Xinrongjia”)
Wholly -owned
subsidiary Xi'an
Real estate
development 2,000
Real estate
development and
operation, etc. 13,046 100 100 Yes -
27. Tianjin Shengxin
Longmao Investment and
Development Co.,
Ltd.( “Tianjin Shengxin”)
Controlling
subsidiary Tianjin
Real estate
development 3,000
Real estate and
infrastructure
investment 1,530 51 51 Yes 1,168.24
28. Shaoguan Jihua Property
Co., Ltd. (“Shaoguan Jihua”)
Wholly-owned
subsidiary Shaoguan
Real estate
development 1,000
Real estate
development and
operation, etc. 1,000 100 100 Yes -
29. Qingxin Xinghai
Investment & Property
Development Co.,
Ltd.(“Qingxin Xinghai”)
Controlling
subsidiary Qingyuan
Real estate
development 10,000
Real estate
development and
operation, etc. 4,779.57 51 51 Yes 4,250.71
POLY REAL ESTATE GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2013
Notes to Financial Statements Page 55
Name of subsidiary Type of
subsidiary
Registration
place
Business
nature
Registered
capital Business scope
Actual amount
of contribution
as at December
31, 2013
Balance of
other items
constituting
net
investment in
subsidiary in
essence
Shareholding
ratio (%)
Voting
ratio (%)
Consolidated
statement or
not
Minority
equity
Amount of
minority
equity used to
offset profit or
loss
attributable to
minority
shareholders
Owners’ equity of the
parent company after
offsetting the excess of
current loss shared by
minority shareholders of
subsidiary over the
minority equity in such
subsidiary as at January
1, 2013
30. Changsha Tianjiao Real
Estate Development Co., Ltd.
(“Changsha Tianjiao”)
Wholly-owned
subsidiary Changsha
Real estate
development 15,494.2708
Real estate
development and
consultancy, etc. 68,000 100 100 Yes -
31. Shouhong Co., Ltd.
(“Shouhong Company”)
Controlling
subsidiary Hong Kong
Investment
holding HKD 0.0001
Investment
holding, enterprise
management HKD 0.0001 60 60 Yes -16.07
32.Corss Fortune Holdings
Limited (“Corss Fortune”)
Wholly-owned
subsidiary
British Virgin
Islands
Investment
holding USD 0.0001
Investment
holding, enterprise
management USD 0.0001 100 100 Yes -
33.Mega Wise Holdings
Limited (“Mega Wise”)
Wholly-owned
subsidiary
British Virgin
Islands
Investment
holding USD 0.0001
Investment
holding, enterprise
management USD 0.0001 100 100 Yes -
34.Total Favour Limited
Controlling
subsidiary
British Virgin
Islands
Investment
holding USD 0.0001
Investment
holding, enterprise
management 20,000 100 100 Yes -
35. Noda Co., Ltd.
Controlling
subsidiary Hong Kong
Investment
holding HKD 5
Investment
holding, enterprise
management HKD 5 100 100 Yes -
36. Foshan Nanhai Jingyuan
Real Estate Co., Ltd.
(“Foshan Jingyuan”)
Controlling
subsidiary Foshan
Real estate
development
USD
1,209.30
Real estate
development and
sale, etc.
USD
1,209.30 60 60 Yes -3,923.96
37. GZ Fuli Construction &
Installation Engineering CO.,
LTD. (“Fuli Construction &
Installation”)
Wholly-owned
subsidiary Guangzhou
Civil
engineering
construction 40,000
Civil Engineering
Construction and
construction
design, etc. 43,313.73 100 100 Yes -
38. Guangzhou Jiali
Decoration Engineering Co.,
Ltd. (“Jiali Decoration”)
Wholly-owned
subsidiary Guangzhou
Decoration
and design 2,400
Indoor decoration
and decoration
design, etc. 3,593.57 100 100 Yes -
POLY REAL ESTATE GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2013
Notes to Financial Statements Page 56
Name of subsidiary Type of
subsidiary
Registration
place
Business
nature
Registered
capital Business scope
Actual amount
of contribution
as at December
31, 2013
Balance of
other items
constituting
net
investment in
subsidiary in
essence
Shareholding
ratio (%)
Voting
ratio (%)
Consolidated
statement or
not
Minority
equity
Amount of
minority
equity used to
offset profit or
loss
attributable to
minority
shareholders
Owners’ equity of the
parent company after
offsetting the excess of
current loss shared by
minority shareholders of
subsidiary over the
minority equity in such
subsidiary as at January
1, 2013
39. Guangzhou Poly Digital
Technology Co., Ltd. (“Poly
Digital”)
Wholly-owned
subsidiary Guangzhou
Intelligence
system for
community 800
Installation of
intelligence
system for
community, etc. 850 100 100 Yes -
40. Guangzhou Poly Real
Estate Agency Co., Ltd.
(“Poly Agency”)
Wholly-owned
subsidiary Guangzhou
Property sale
agency 1,000
Real estate agency
services as real
estate agent 1,234.79 100 100 Yes -
41. Guangzhou Poly Jinhan
Exhibition Co., Ltd. (“Poly
Jinhan”)
Controlling
subsidiary Guangzhou
Exhibition
services 320
Exhibition
services and venue
rental, etc. 163.2 51 51 Yes 5,286.83
42. Guangdong Zhonggong
Architectural Design Institute
Co., Ltd. (“Zhonggong
Design Institute”)
Controlling
subsidiary Guangzhou
Construction
engineering 1,672.78
Construction
engineering
design, etc. 1,373.21 60 60 Yes 1,406.67
43. Guangdong Zhonggong
Project Management Co.,
Ltd. (“Zhonggong Project
Management”)
Controlling
subsidiary Guangzhou
Construction
supervision 600
Construction
supervision 647.88 100 100 Yes -
44. Beijing Runcheng Jiaxin
Property Co., Ltd.("Beijing
Runcheng")
Wholly-owned
subsidiary Beijing
Real estate
development 2,000
Real estate
development and
sale, etc. 2,000 100 100 Yes -
45. Hangzhou Biaofan
Investment Management Co.,
Ltd.("Hangzhou Biaofan")
Wholly-owned
subsidiary Hangzhou
Investment
management 10
Investment
management and
consultancy 10 100 100 Yes -
POLY REAL ESTATE GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2013
Notes to Financial Statements Page 57
4.2 Subsidiaries that the Company has half or less of voting rights but included in consolidation
Name Voting ratio
Reason for being
included in scope of
consolidation
Zhengzhou Hengtian 50% Each board of directors
consists of 5 members,
and 3 of them are from
the Company with
majority voting power.
The subsidiary is
therefore included in the
scope of consolidation.
Dalian Hongqi 50%
Wuhan Kangqiao 50%
Poly Deyang 50%
Deyang Property 50%
Beijing Langtai 50%
Chongqing Baochang 50%
Chongqing Baoxiang 50%
Changsha West Coast 50%
Guangdong Yuehe 50% Each board of directors
consists of 7 members,
and 4 of them are from
the Company with
majority voting power.
The subsidiary is
therefore included in the
scope of consolidation.
Foshan Xincheng 50%
Jiangmen Hongxin 50%
Sanya Forum 50%
Sanya Baoxin 50%
Qingdao Shuangfeng 50%
Qingdao Shuangyuan 50%
Dalian Donggang 50%
Dalian Yingsheng 50%
4.3 Special-purpose entities or operational entities with control right formed by entrusted
operation, lease or other methods
Unit: RMB
Name
Main business
transaction with the
Company
Income
percentage
Ending balance of
major assets recognized
in the consolidated
statements
Ending balance of
major liabilities
recognized in the
consolidated
statements
Ziwei Garden Project
of Guangzhou Poly
(See note)
Cooperative
development project 50% 333,985,111.02 171,520,736.40
Project Department of
Guangzhou Pazhou
Cooperative
development project 80% 13,909,548,650.02 14,399,881,550.43
Tongzhou Project
Department
Cooperative
development project 65% 975,850,000.00 975,850,000.00
Note: In accordance with the cooperation agreement concluded by and between the Company and
Guangzhou Metro Corporation (hereinafter referred to as "Guangzhou Metro") in February 2005,
Guangzhou Metro contributed its land usage right valued at RMB 65 million as investment in the
cooperation project, while the Company invested RMB 65 million as the launch fund for the
project, and subsequent funds needed shall be invested by the Company through financing, with
the financing costs being included into project development costs. All income generated from this
project shall be accounted for independently by the project department and be distributed to both
parties equally at the ratio of 50%. The development and sale of the project as well as the
appointment of project managers are made by the Company with actual control over the project.
Therefore, this entity is included in the scope of consolidation.
POLY REAL ESTATE GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2013
Notes to Financial Statements Page 58
4.4 Entities newly included in and entities excluded from the scope of consolidation in 2013
4.4.1 Subsidiaries, special-purpose entities, operational entities with control right formed
by entrusted operation, lease or other methods newly included in the scope of
consolidation in 2013
Unit: RMB
Name Net assets as at
December 31, 2013 Net profit in 2013
Conghua Poly 99,739,048.43 -260,951.57
Guangzhou Bangjie 99,218,929.99 -781,070.01
Guangzhou Honghe 48,936,115.87 -1,063,884.13
Guangzhou Hongyue 99,801,372.40 -198,627.60
Guangzhou Sitai 99,775,093.50 -224,906.50
Dongguan Hehong 10,000,000.00 -
Shengxing Company -47,900,649.01 -47,900,655.25
Shouhong Property 1,491,850,948.79 33,348.79
Poly Real Estate Finance Ltd 800.88 794.38
Abundant Choice Investments Limited 2,475,116.26 2,475,115.00
Action Dragon Investments Limited 308,723.94 308,723.16
Pride South Holdings Limited 591.60
Hefei Herong 39,525,807.11 -474,192.92
Shouhong Company -6,198,841.99 -6,157,625.32
Corss Fortune 6.10
Mega Wise 6.10
Total Favour Limited -11,243.59 673.39
Noda Co., Ltd. 49,270,829.51 4,355,398.35
Foshan Jingyuan 1,884,601.64 -7,036,209.02
Liaoning Industrial 192,170,143.15 -7,308,619.92
Shenyang Linhai 98,828,105.69 -1,171,894.31
Dalian Henghui 8,390,128.46 -1,609,871.54
Dalian Donggang 143,032,276.69 -6,967,723.31
Dalian Yingsheng 98,537,512.62 -1,462,487.38
Changchun Hengxin 16,848,737.77 -3,151,262.23
Beijing Anping Poclinic 4,642,164.82 -357,835.18
Beijing Poly Tong 9,275,814.13 -724,185.87
Beijing Langtai 1,299,516,695.21 -483,304.79
Beijing Litong 99,962,751.24 -37,248.76
Beijing Runcheng 19,708,164.39 44,660.03
Shanxi Wanguo 9,214,281.50 -665,024.43
Shanghai Jianjing 99,096,414.49 -938,816.99
Foshan Hengsheng 99,937,889.45 -62,110.55
Foshan Sanshui 19,688,126.61 -311,873.39
Poly Zhanjiang 96,698,141.31 -3,301,858.69
Poly Shaoguan 99,800,181.34 -199,818.66
Qingxin Xinghai 86,749,114.65 -6,968,026.82
Shaoguan Jihua 9,879,142.35 64,255.26
Chongqing Baochang 187,506,775.29 6,775.29
Chongqing Baofang 233,427,895.85 -520,104.15
Chongqing Baoxiang 19,927,871.65 -72,128.35
Chongqing Baosheng 98,681,190.41 -1,318,809.59
Poly Rongchang 30,140,811.89 140,811.89
Poly Shengtai 139,799,968.08 -200,031.92
Ronghong Shenglong 9,994,343.95 -5,656.05
Tianjin Shengxin 23,292,889.12 -6,158,326.81
Hangzhou Jianlin 95,583,505.57 -4,416,494.43
Hangzhou Dongliang 99,001.99 -998.01
Hangzhou Biaofan -4,215,923.09 -4,330,504.30
Chengdu Baolong -1,061,575.37 -11,061,575.37
POLY REAL ESTATE GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2013
Notes to Financial Statements Page 59
Name Net assets as at
December 31, 2013 Net profit in 2013
Suining Baoxin 89,720,705.61 -10,279,294.39
Hunan Investment 499,421,509.23 -578,490.77
Changsha West Coast 189,105,113.58 -10,894,886.42
Changsha Tianjiao 130,342,119.94 -5,989,380.55
Jiangsu Ningheng 42,370,553.26 -7,629,446.74
Wuxi Zhiyuan 91,510,024.33 -8,489,975.67
Qingdao Guangsheng 10,000,000.00 -
Qingdao Guangheng 7,998,613.05 -2,001,386.95
Qingdao Guangrui 494,503,426.48 -3,768,590.72
Qingdao Shuangfeng 941,750,882.37 -15,144,717.63
Qingdao Shuangyuan 37,000,171.86 -328,228.14
Shaanxi Poly 499,957,410.72 -42,589.28
Hesfei Hezhu 94,689,726.76 -5,310,273.24
Hefei Hexin 16,705,239.60 -3,294,760.40
Hefei Heheng 643,335,699.22 -6,664,300.78
Poli Haikou 50,003,397.13 3,397.13
Zhengzhou Poly 43,327,814.26 -6,672,185.74
Zhuhai Fuli 11,158,675.42 1,158,675.42
Dalian Property 1,580,383.40 -419,616.60
Hong Kong Hengfu 6,096,900.00 -128,100.00
Poly Jiangxi 499,830,615.86 -169,384.14
Poly Urban Renewal 100,000,000.00
Zhanjiang Xingsheng 19,995,627.99 -4,372.01
4.4.2 Subsidiaries, special-purpose entities, operational entities with control right formed
by entrusted operation, lease or other methods no longer included in the scope of
consolidation in 2013
Unit: RMB
Name Net asset on
disposal date
Net profit from the
beginning of the period to
disposal date
Hexihui Apartments for the Elderly, Haidian
District, Beijing (Note 1) -447,849.53 -1,391,871.03
Hangzhou Xiangbo Investment Consulting Co.,
Ltd. (Note 1) 4,942,784.76 -18,780.02
Chengdu Champagne Real Estate Development
Co., Ltd. (Note 1) 49,939,954.23 6,542.43
Note 1: The three companies have been disposed of and deregistered.
Note 2: Shanghai Junyuan Property Co., Ltd., the company acquired in the current period,
was deregistered in 2013.
4.5 There was no business combination under common control in 2013.
4.6 Business combinations not under common control in 2013
Acquiree Amount of
goodwill Caculation method of goodwill
Tianjin Shengxin No goodwill The combination costs equal to the fair value of the identifiable
net assets acquired from the acquiree.
Qingxin Xinghai No goodwill The combination costs equal to the fair value of the identifiable
net assets acquired from the acquiree.
Changsha Tianjiao No goodwill The combination costs equal to the fair value of the identifiable
net assets acquired from the acquiree.
POLY REAL ESTATE GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2013
Notes to Financial Statements Page 60
Acquiree Amount of
goodwill Caculation method of goodwill
Shouhong Company No goodwill The combination costs equal to the fair value of the identifiable
net assets acquired from the acquiree.
Corss Fortune
Holdings Limited No goodwill
The combination costs equal to the fair value of the identifiable
net assets acquired from the acquiree.
Mega Wise Holdings
Limited No goodwill
The combination costs equal to the fair value of the identifiable
net assets acquired from the acquiree.
Total Favour Limited No goodwill The combination costs equal to the fair value of the identifiable
net assets acquired from the acquiree.
Noda Co., Ltd. No goodwill The combination costs equal to the fair value of the identifiable
net assets acquired from the acquiree.
Foshan Jingyuan No goodwill The combination costs equal to the fair value of the identifiable
net assets acquired from the acquiree.
Shanxi Wanguo No goodwill The combination costs equal to the fair value of the identifiable
net assets acquired from the acquiree.
Shaoguan Jihua No goodwill The combination costs equal to the fair value of the identifiable
net assets acquired from the acquiree.
Beijing Runcheng No goodwill The combination costs equal to the fair value of the identifiable
net assets acquired from the acquiree
Hangzhou Biaofan No goodwill The combination costs equal to the fair value of the identifiable
net assets acquired from the acquiree
Note:
(1) On February 23, 2013, the Company's subsidiary, Tianjin Poly, acquired 51% equity of
Tianjin Shengxin Longmao Investment Development Co., Ltd. (“Tianjin Shengxin”) with
acquisition cost of RMB 3,060,000.00;
(2) On February 28, 2013, the Company's subsidiary, South Chian Holdings, acquired 51% equity
of Qingxin Xinghai Investment & Property Development Co., Ltd. (“Qingxin Xinghai”) with
acquisition cost of RMB 1,895,742.15;
(3) On June 5, 2013, the Company's subsidiary, Hunan Investment, acquired 100% equity of
Changsha Tianjiao Real Estate Development Co., Ltd. (“Changsha Tianjiao”) with acquisition
cost of RMB 680,000,000.00;
(4) On March 7, 2013, the Company subsidiary, Hengli Real Estate, acquired Shouhong Co., Ltd.
with acquisition cost of HKD 1.00;
(5) On June 7, 2013, the Company subsidiary, Hengli Real Estate, acquired Corss fortune
Holdings Limited and its subsidiary, Mega Wise Holdings Limited, with acquisition cost of
USD 1.00;
(6) On July 10, 2013, the Company's subsidiary, Hengli Real Estate, acquired Total Favour
Limited and its subsidiary, Noda Co., Ltd., as well as Foshan Nanhai Jingyuan Real Estate Co.,
Ltd. (“Foshan Jingyuan”) with acquisition cost of RMB 200,000,000.00;
(7) On July 29, 2013, the Company's subsidiary, Beijing Yuanxin, acquired 70% equity of Shanxi
Wanguo Commercial Plaza Development Co., Ltd. (“Shanxi Wanguo”) with acquisition cost
of RMB 7,000,000.00;
(8) On November 28, 2013, the Company's subsidiary, South Chian Holdings, acquired Shaoguan
Jihua Property Co., Ltd. “Shaoguan Jihua”) with acquisition cost of RMB 10,000,000.00;
(9) On July 26, 2013, the Company's subsidiary, Beijing Poly, acquired Beijing Runcheng Jiaxin
Property Co., Ltd. (“Beijing Runcheng”) with acquisition cost of RMB 20,000,000.00; and
(10) On November 5, 2013, the Company subsidiary, Zhejiang Poly, acquired Hangzhou Biaofan
Investment Management Co., Ltd. (“Hangzhou Biaofan”) with acquisition cost of RMB
100,000.00.
4.7 There was no loss of any subsidiary companies as a result of sale of equity losing control
right in 2013.
4.8 There was no reverse takeover in 2013.
POLY REAL ESTATE GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2013
Notes to Financial Statements Page 61
4.9 There was no absorption or merger in 2013.
4.10 Conversion rate for the main items of the statements of overseas entities
As at December 31, 2013, with regard to overseas subsidiaries using foreign currencies as their
functional currencies, the Company shall convert the currency according to the spot exchange rates
prevailing on the balance sheet date, among which 0.78623 is for HKD and 6.0969 for USD. Items
under owners’ equity (except for “undistributed profit”) are converted at the exchange rate as at the
time of occurrence. The income and expenses items in income statements are converted at the spot
exchange rate prevailing on the date when the transaction occurs.
5 Notes to the main items of consolidated financial statements
(All the following amounts are expressed in RMB unless otherwise stated)
5.1 Monetary funds
5.1.1 Monetary funds by type:
Item
Balance as at December 31, 2013 Balance as at January 1, 2013
Amount in
foreign currency
Exchange
rate Amount in RMB
Amount in
foreign currency
Exchange
rate Amount in RMB
Cash
RMB 8,546,377.74 8,016,631.34
Sub-total 8,546,377.74 8,016,631.34
Bank
deposit
RMB 30,738,321,912.72 32,434,511,384.75
HKD 320,097,017.10 0.78623 251,669,877.75 134,779.20 0.81085 109,285.71
USD 345,521,830.34 6.0969 2,106,612,047.40 21,190,166.54 6.2855 133,190,791.79
Sub-total 33,096,603,837.87 32,567,811,462.25
Other
monetary
funds
RMB 647,819,615.19 96,874,471.12
Sub-total 647,819,615.19 96,874,471.12
Total 33,752,969,830.80 32,672,702,564.71
5.1.2 Details of other monetary funds:
Item Balance as at December 31,
2013
Balance as at January 1,
2013
Guarantee deposits 647,819,615.19 96,874,471.12
Total 647,819,615.19 96,874,471.12
Note: Among the guarantee deposits, RMB 640,795,881.57 is the deposit for letter of
guarantee whose usage is restricted during performance of agreement. There is no other
restricted monetary fund under pledge.
POLY REAL ESTATE GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2013
Notes to Financial Statements Page 62
5.2 Notes receivable
Classification of notes receivable:
Type Balance as at December 31, 2013 Balance as at January 1, 2013
Bank acceptance bill 3,224,500.00 450,000.00
Commercial acceptance bill
Total 3,224,500.00 450,000.00
5.3 Accounts receivable
5.3.1 Aging analysis of accounts receivable:
Aging
Balance as at December 31, 2013 Balance as at January 1, 2013
Book balance Provision for bad debt Book balance Provision for bad debt
Amount Proportion (%) Amount Proportion (%) Amount Proportion (%) Amount Proportion (%)
Within 1 year (inclusive) 1,593,826,298.34 64.94 79,691,314.91 5.00 1,604,378,747.71 81.06 80,218,937.39 5.00
1 to 2 (inclusive) years 712,384,235.63 29.02 35,619,211.78 5.00 230,287,958.99 11.64 11,514,397.95 5.00
2 to 3 (inclusive) years 133,016,872.93 5.42 6,650,843.65 5.00 76,069,055.83 3.84 3,803,452.79 5.00
Over 3 years 15,313,066.53 0.62 765,653.33 5.00 68,510,150.21 3.46 3,425,507.51 5.00
Total 2,454,540,473.43 100.00 122,727,023.67 5.00 1,979,245,912.74 100.00 98,962,295.64 5.00
5.3.2 Accounts receivable disclosed by type
Type
Balance as at December 31, 2013 Balance as at January 1, 2013
Book balance Provision for bad debt Book balance Provision for bad debt
Amount Proportion
(%) Amount
Proportion
(%) Amount
Proportion
(%) Amount
Proportion
(%)
1. Accounts receivable with significant single amount and accrued
for provision for bad debt on an individual basis
2. Accounts receivable accrued for provision for bad debt on a
portfolio basis:
Accounts receivable in portfolio accrued for provision for bad
debt by balance percentage method 2,454,540,473.43 100.00 122,727,023.67 5.00 1,979,245,912.74 100.00 98,962,295.64 5.00
Subtotal of portfolio 2,454,540,473.43 100.00 122,727,023.67 5.00 1,979,245,912.74 100.00 98,962,295.64 5.00
3. Accounts receivable with insignificant single amount but
accrued for provision for bad debt on an individual basis
Total 2,454,540,473.43 100.00 122,727,023.67 5.00 1,979,245,912.74 100.00 98,962,295.64 5.00
There were no accounts receivable with significant single amount and accrued for provision for bad debt on an individual basis as at December 31,
2013.
POLY REAL ESTATE GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2013
Notes to Financial Statements Page 63
Accounts receivable accrued for provision for bad debt by balance percentage method in
portfolio:
Name of portfolio Book balance Proportion of
provision
Provision for bad
debt
Within 1 year (inclusive) 1,593,826,298.34 5.00 79,691,314.91
1 to 2 (inclusive) years 712,384,235.63 5.00 35,619,211.78
2 to 3 (inclusive) years 133,016,872.93 5.00 6,650,843.65
Over 3 years 15,313,066.53 5.00 765,653.33
Total 2,454,540,473.43 5.00 122,727,023.67
There were no accounts receivables with insignificant single amount but accrued for
provision for bad debt on a single basis as at December 31, 2013.
5.3.3 There were no account receivables with their allowances for bad debt provided in full
or large proportion in prior periods but were fully reversed or recovered in current
period in 2013.
5.3.4 There were no account receivables actually written off in the current reporting period.
5.3.5 Of the balance of accounts receivable as at December 31, 2013, no amounts were due
from shareholders holding more than 5% (inclusive) voting shares of the Company.
5.3.6 Top five accounts receivable
Company name
Relationship
with the
Company
Book balance Aging
Proportion in
total accounts
receivable (%)
Guangdong Branch of Bank of
Communications Co., Ltd. Customer 60,594,170.00 Note 2.46
Guangzhou Anshang Property
Management Co., Ltd. Customer 41,882,742.00 1 to 2 years 1.71
Luo Hua Customer 33,859,268.00 Within 1 year 1.38
Tianjin Bomuda Machinery
Equipment Co., Ltd. Customer 20,449,934.00 Within 1 year 0.83
Yang Fan Customer 10,716,940.00 Within 1 year 0.44
Total 167,503,054.00 6.82
Note: Of the housing sale proceeds receivable from Guangdong Branch of Bank of
Communications Co., Ltd., RMB 11,844,430.00 has the age of 1 to 2 years, and RMB
48,749,740.00 has the age of 2 (inclusive) to 3 years.
5.3.7 There were no account receivables from related parties as at December 31, 2013.
5.3.8 There were no account receivables whose recognition was terminated due to transfer
of financial assets as at December 31, 2013.
5.3.9 There were no accounts receivables transferred whose recognition was fully
terminated in 2013.
5.3.10 There were no asset backed security transactions in 2013 using account receivables as
underlying asset subject matter.
POLY REAL ESTATE GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2013
Notes to Financial Statements Page 64
5.4 Prepayments
5.4.1 Prepayments by aging:
Aging Balance as at December 31, 2013 Balance as at January 1, 2013
Book balance Proportion (%) Book balance Proportion (%)
Within 1 year
(inclusive) 13,795,899,211.41 71.57 12,137,792,019.68 73.93
1 to 2 (inclusive)
years 3,084,841,208.99 16.00 3,106,711,609.97 18.92
2 to 3 (inclusive)
years 1,518,353,835.95 7.88 511,017,988.18 3.11
Over 3 years 876,769,487.56 4.55 663,025,290.50 4.04
Total 19,275,863,743.91 100.00 16,418,546,908.33 100.00
Note: Prepayments with aging over 1 year mainly include cooperation payments and
engineering payments for real estate projects, which were prepaid at early stage of project
or had not been settled.
5.4.2 Top five prepayments
Company name
Relationship
with the
Company
Book balance Time Reason for
unsettlement
1. Guangzhou Xiancun Industrial Co., Ltd. Not related 1,024,000,000.00 Note 1 Demolition
proceeds
2. Haikou Land Reserves and
Coordination Center Not related 1,000,000,000.00 Within 1 year
Land
guarantee
deposits
3. Land Reserves Center in Yanta
Sub-bureau of Xi’an National Land
Resources Bureau
Not related 941,930,000.00 Note 2
Land
development
fees
4. Nanjing Finance Bureau Not related 927,500,000.00 Within 1 year
Land
guarantee
deposits
5. Chengdu Xinjin Nongfa Investment Co.,
Ltd. Not related 860,607,200.00 Within 1 year
Demolition
proceeds
Total 4,754,037,200.00
Note 1: Of the relocation funds prepaid to Guangzhou Xiancun Industrial Co., Ltd., RMB
11,000,000.00 has the age of within 1 years and RMB 914,000,000.00 has the age of 1 to 2
(inclusive) years.
Note 2: Of the land development fees prepaid to Land Reserves Center in Yanta Sub-bureau
of Xi’an National Land Resources Bureau, the amount with age of within 1 year is RMB
180,930,000.00 and the amount with age of 1 to 2 (inclusive) years is RMB
761,000,000.00.
5.4.3 Of the balance of prepayments as at December 31, 2013, no amounts were due from
shareholders holding more than 5% (inclusive) voting shares of the Company.
5.5 Other receivables
5.5.1 Aging analysis of other receivables:
Aging
Balance as at December 31, 2013 Balance as at January 1, 2013
Book balance Provision for bad debt Book balance Provision for bad debt
Amount Proportion
(%) Amount
Proportion
(%) Amount
Proportion
(%) Amount
Proportion
(%)
Within 1 year
(inclusive) 6,278,991,177.24 79.87 72,581,162.45 1.16 1,338,083,984.22 51.49 43,101,427.21 3.22
POLY REAL ESTATE GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2013
Notes to Financial Statements Page 65
Aging
Balance as at December 31, 2013 Balance as at January 1, 2013
Book balance Provision for bad debt Book balance Provision for bad debt
Amount Proportion
(%) Amount
Proportion
(%) Amount
Proportion
(%) Amount
Proportion
(%)
1 to 2 (inclusive)
years 651,444,600.02 8.29 28,330,807.59 4.35 950,695,258.88 36.58 28,125,224.13 2.96
2 to 3 (inclusive)
years 697,327,259.36 8.87 12,120,069.15 1.74 164,049,325.31 6.31 8,202,466.27 5.00
Over 3 years 233,848,849.11 2.97 11,692,442.46 5.00 146,126,257.63 5.62 7,306,312.88 5.00
Total 7,861,611,885.73 100.00 124,724,481.65 1.59 2,598,954,826.04 100.00 86,735,430.49 3.34
POLY REAL ESTATE GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2013
Notes to Financial Statements Page 66
5.5.2 Other receivables disclosed by type:
Type
Balance as at December 31, 2013 Balance as at January 1, 2013
Book balance Provision for bad debt Book balance Provision for bad debt
Amount Proportion
(%) Amount
Proportion
(%) Amount
Proportion
(%) Amount
Proportion
(%)
1. Accounts receivable
with significant single
amount and accrued for
provision for bad debt
on a single basis
5,367,122,252.67 68.27 803,532,616.33 30.92
2. Other receivables
accrued for provision
for bad debt on a
portfolio basis:
Other receivables in
portfolio accrued for
provision for bad debt
by balance percentage
method
2,494,489,633.06 31.73 124,724,481.65 5.00 1,734,708,609.71 66.74 86,735,430.49 5.00
Subtotal of portfolio 2,494,489,633.06 31.73 124,724,481.65 5.00 1,734,708,609.71 66.74 86,735,430.49 5.00
3. Other receivables
with insignificant single
amount but accrued for
provision for bad debt
on a single basis
60,713,600.00 2.34
Total 7,861,611,885.73 100.00 124,724,481.65 2,598,954,826.04 100.00 86,735,430.49
POLY REAL ESTATE GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2013
Notes to Financial Statements Page 67
Other receivables with significant single amount and accrued for provision for bad
debt on an individual basis as at December 31, 2013:
Content of other receivables Book balance
Provision
for bad
debt
Proportion
of
provision
Reason
for
provision
1. Tianjin Sunac Aocheng Investment Co.,
Ltd. (“Rongchuang Aocheng”) 813,890,000.00 Note 1
2. Dongguan Wanhong Real Estate Co., Ltd.
(“Dongguan Wanhong”) 647,286,000.00 Note 2
3. Tianjin Sunac Lvcheng Investment
Holdings Co., Ltd. (“Rongchuang Lvcheng”) 578,517,238.25 Note 1
4. ECIC Gaoya (Tianjin) Equity Investment
Fund Partnership (Limited Partnership)
(“ECIC Gaoya Fund”)
476,681,100.00 Note 1
5.Beijing Sunac Hengji Real Estate Co., Ltd.
(“Rongchuang Hengji”) 453,420,000.00 Note 1
6.Beijing Shoukai Poly Rentai Property Co.,
Ltd. (“Poly Rentai”) 406,925,400.00 Note 2
7. ECIC (Tianjin) Equity Investment Fund
Partnership (Limited Partnership) (“ECIC
Limited Partnership”)
397,219,519.86 Note 1
8. Nanjing Xueshang Property Co., Ltd.
(“Nanjing Xueshang”) 351,892,184.20 Note 2
9. Shanghai Green Land Group Chengdu
Property Co., Ltd. 327,361,417.90 Note 1
10. Wuhan Qingneng Yisheng Property Co.,
Ltd. (“Wuhan Qingneng”) 230,700,000.00 Note 2
11. Foshan Nanhai Hengcheng Property Co.,
Ltd. 212,430,369.01 Note 1
12. ECIC (Tianjin) Equity Investment Fund
Management Co., Ltd. (“ECIC Fund
Management”)
175,385,961.45 Note 2
13. Tianjin Sunac Real Estate Co., Ltd. 166,110,000.00 Note 1
14. Hangzhou Jinmu Real Estate
Development Co., Ltd. (“Hangzhou Jinmu”) 129,303,062.00 Note 2
Total 5,367,122,252.67
Note 1: Rongchuang Aocheng, Rongchuang Lvcheng, ECIC Gaoya Fund, Rongchuang
Hengji, Shanghai Green Land Group Chengdu Property Co., Ltd., Foshan Nanhai
Hengcheng Property Co., Ltd., ECIC Limited Partnership and Tianjin Sunac Real Estate
Co., Ltd. are all shareholders of the Company’s subsidiaries. In order to improve usage
efficiency of the cash surplus of subsidiaries, both parties’ shareholders have transferred
these funds proportionately to their respective share ownership for use. No allowances for
bad debt have been provided due to the mutual constraints and equality of rights and duties
amongst these shareholders.
Note 2: Nanjing Xueshang and Wuhan Qingneng are joint ventures of the Company;
Dongguan Wanhong, Poly Rentai, ECIC Fund Management and Hangzhou Jinmu are
associates of the Company. The said joint ventures and associates have been invested by the
Company based on the shareholding ratio according to relevant project cooperation
agreements and conducted impairment tests by specific identification method at the end of
the period. Owing to the availability for effective operation and management by the
Company, as well as the good economic return of their real estate projects with no signs of
impairment through measurement, provision for bad debt has not been accrued.
POLY REAL ESTATE GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2013
Notes to Financial Statements Page 68
Other receivables in portfolio with allowances for bad debt provided using the balance
percentage method:
Name of portfolio Book balance Proportion of
Provision (%)
Provision for bad
debt
Within 1 year (inclusive) 1,451,623,249.13 5.00 72,581,162.46
1 to 2 (inclusive) years 566,616,151.79 5.00 28,330,807.59
2 to 3 (inclusive) years 242,401,383.03 5.00 12,120,069.15
Over 3 years 233,848,849.11 5.00 11,692,442.46
Total 2,494,489,633.06 5.00 124,724,481.65
There were no other receivables with insignificant single amount but with allowances for
bad debt provided on an individual basis as at December 31, 2013.
5.5.3 There were no other receivables reversed or recovered in 2013.
5.5.4 There were no other receivables actually written off during the current reporting
period.
5.5.5 Of the balance of other receivables as at December 31, 2013, no amounts were due
from shareholders holding more than 5% (inclusive) voting shares of the Company.
5.6.6 Top five other receivables
Company name
Relationship
with the
Company
Book balance Aging
Proportion in
total other
receivables (%)
Nature or content
Rongchuang Aocheng Not related 813,890,000.00 Within 1
year 10.36
Intercompany proceeds,
shareholder of cooperative
party of the Company’s
subsidiary
Dongguan Wanlong Associate of
the Company 647,286,000.00
Within 1
year 8.23
Project development fund
invested to associate
Rongchuang Lvcheng. Not related 578,517,238.25 Within 1
year 7.36
Intercompany proceeds,
shareholder of cooperative
party of the Company’s
subsidiary
ECIC Gaoya Fund Not related 476,681,100.00 Within 1
year 6.06
Intercompany proceeds,
shareholder of cooperative
party of the Company’s
subsidiary
Rongchuang Hengji Not related 453,420,000.00 Within 1
year 5.77
Intercompany proceeds,
shareholder of cooperative
party of the Company’s
subsidiary
Total 2,969,794,338.25 37.78
5.5.7 Other receivables from related parties
Company name Relationship with the
Company Book balance
Proportion in total
other receivables (%)
Dongguan Wanlong 647,286,000.00 Associate of the
Company 8.24
Poly Rentai 406,925,400.00 Associate of the
Company 5.18
ECIC Limited Partnership 397,219,519.86 Note 5.05
Nanjing Xueshang 351,892,184.20 Joint venture of the
Company 4.48
Wuhan Qingneng 230,700,000.00 Joint venture of the
Company 2.93
POLY REAL ESTATE GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2013
Notes to Financial Statements Page 69
Company name Relationship with the
Company Book balance
Proportion in total
other receivables (%)
ECIC Fund Management 175,385,961.45 Associate of the
Company 2.23
Hangzhou Jinmu 129,303,062.00 Associate of the
Company 1.64
Guangzhou Zhongyao Industrial
Investment Co., Ltd.
("Guangzhou Zhongyao")
90,000,410.40 Joint venture of the
Company 1.14
Tianjin Shengshi Xinhe Real
Estate Co., Ltd. (“Shengshi
Xinhe”)
8,319,611.02 Joint venture of the
Company 0.11
Guangzhou Bao'ao Real Estate
Development Co.,
Ltd.("Guangzhou Bao'ao")
151,955.40 Joint venture of the
Company
Total 2,437,184,104.33 31.00
Note: See 7.4 for details about the Company's other related parties.
5.5.8 There were no other receivables whose recognition was terminated due to transfer of
financial assets as at December 31, 2013.
5.5.9 There were no other receivables transferred whose recognition was fully terminated in
2013.
5.5.10 There were no asset backed security transactions in 2013 using other receivables as
underlying asset subject matter.
5.6 Inventories
5.6.1 Classification of inventories:
Item
Balance as at December 31, 2013 Balance as at January 1, 2013
Book balance Provision for
depreciation Book value Book balance
Provision for
depreciation Book value
Development
cost
214,902,424,143.16 214,902,424,143.16 177,164,086,151.53 177,164,086,151.53
Development
products
24,954,589,229.09 24,954,589,229.09 12,452,671,938.43 12,452,671,938.43
Raw
materials
42,497,672.18 42,497,672.18 20,960,876.86 20,960,876.86
Merchandise
in stock
7,119,547.30 7,119,547.30 5,329,503.72 5,329,503.72
Low-cost
consumables
665,364.13 665,364.13 774,612.43 774,612.43
Total 239,907,295,955.86 239,907,295,955.86 189,643,823,082.97 189,643,823,082.97
(1) Development cost
Project name Commencement date Estimated
completion date
Estimated total
investments
(RMB’0,000)
Balance as at
December 31, 2013
Balance as at January
1, 2013
The Guangzhou Poly West
Coast Residence (including
the Guangzhou Poly Xinghai
Garden) September 2009 December 2014 1,008,557.87 3,322,004,083.98 5,997,599,769.89
The Guangzhou Poly Park November 2011 December 2015 364,465.83 2,296,400,572.50 2,493,362,132.65
The Guangzhou Poly Seine
Villa (The former Fangcun
G Land Parcel) April 2012 October 2015 177,493.70 1,398,466,366.56 1,005,704,642.18
POLY REAL ESTATE GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2013
Notes to Financial Statements Page 70
Project name Commencement date Estimated
completion date
Estimated total
investments
(RMB’0,000)
Balance as at
December 31, 2013
Balance as at January
1, 2013
The Guangzhou Poly
Champaign Mansion November 2011 52,219.35 426,034,078.91
The Guangzhou Poly
Zhongda Plaza September 2010 June 2014 187,088.51 359,581,283.73 1,108,782,418.52
The Guangzhou Poly
Headquarters Base Project October 2010 December 2014 47,439.00 243,214,227.09 147,011,802.12
The Guangzhou Poly World
Trade Center December 2006 December 2015 467,300.88 846,436.61 4,260,497.93
The Guangzhou Poly
Keluowei Square September 2009 December 2015 252,975.72 670,674,123.07 1,195,920,176.69
The Zhongshan Poly Spring
Plaza January 2012 December 2016 396,560.26 1,280,952,337.03 1,191,142,953.54
The Zhongshan Poly
International Plaza May 2012 December 2016 709,949.14 1,421,499,934.05 1,332,683,828.67
The Guangzhou Poly Yunxi
(The former Baiyun New
Town Project ) June 2012 June 2015 490,078.15 4,261,839,694.81 3,902,919,629.80
The Guangzhou Poly Ziwei
Garden April 2006 52,294.00 9,648,575.35
The Guangzhou Poly
Central Plaza September 2010 96,745.00 327,763,433.92
The Guangzhou Poly
Tianyue Project December 2010 December 2015 1,810,718.00 6,314,780,407.36 4,025,462,489.88
The Guangzhou Zengcheng
Poly Dongjiang Capital May 2010 December 2015 688,503.07 2,326,390,808.22 3,028,723,848.42
The Guangzhou Poly
Zhongchen Square July 2008 December 2014 58,839.93 79,722,392.78 83,157,746.31
Guangzhou Poly Yuexiu
Lingnan Forest Whisper (the
former Science City Project) September 2013 December 2017 370,797.22 1,801,727,664.29 1,066,000,000.00
The Guangzhou Poly
Songhe Street Project September 2013 December 2015 63,713.51 421,726,188.64 387,718,500.00
The Guangzhou Poly
Daduhui (the former Panyu
Hanxi Village Project) September 2013 December 2017 371,449.35 1,763,542,229.12
The Guangzhou Conghua
Poly Hot Springs Village
Project June 2014 December 2017 166,847.61 258,109,499.11
The Guangzhou Poly
Financial City A005-2
Project December 2014 December 2018 353,793.54 817,969,455.00
The Guangzhou Poly
Financial City A007-1
Project December 2014 December 2018 361,373.66 650,003,000.00
The Guangzhou Poly
Nansha Jinzhou No.
7 Land Project June 2014 December 2017 74,708.29 230,753,831.97
The Guangzhou Poly
Nansha Jinzhou No.
9 Land Project June 2014 December 2017 59,215.56 292,534,411.50
The Zhuhai Poly Mayflower
(the former Tangjiawan
Project) December 2013 December 2016 355,599.54 1,916,267,842.87 868,767,970.00
The Foshan Poly Donghu
Forest Whisper June 2010 December 2014 154,169.00 604,247,868.42 1,500,094,421.09
POLY REAL ESTATE GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2013
Notes to Financial Statements Page 71
Project name Commencement date Estimated
completion date
Estimated total
investments
(RMB’0,000)
Balance as at
December 31, 2013
Balance as at January
1, 2013
The Foshan Poly
Champagne Garden October 2010 187,600.80 614,032,174.98
The Foshan Poly No.
1 on the Bund June 2010 December 2014 211,317.00 891,388,523.82 1,052,516,131.11
The Foshan Poly East Bay I June 2012 December 2016 494,468.00 2,797,827,756.59 2,629,027,537.62
The Foshan Poly East Bay II September 2010 December 2015 508,191.91 1,642,420,036.47 1,927,067,439.43
The Foshan Poly Purple
Mountain Garden June 2013 June 2015 180,708.27 779,799,317.41 593,105,561.95
The Foshan Poly Lafei April 2011 December 2014 137,103.61 934,911,479.27 838,728,881.71
The Foshan Poly Central
Plaza May 2011 June 2015 732,204.06 2,296,663,743.92 2,396,083,573.68
The Foshan Poly Manor September 2012 December 2015 514,200.40 2,324,499,337.21 1,944,763,606.01
The Foshan Poly Dongbin
Garden (the former New
Town Project) June 2013 December 2015 597,092.04 2,886,171,350.45 1,996,485,547.09
The Foshan Poly Zhongyue
Garden (the former Shunde
New Town A11 Parcel) June 2014 December 2018 336,222.65 957,780,777.56
The Foshan Poly Seattle (the
former Sanshan Avenue
Project) September 2013 December 2017 379,232.38 1,160,470,382.35 472,598,500.00
The Jiangmen Poly Daduhui
(the Binjiang New Area
Project) June 2013 December 2020 763,685.13 1,600,394,569.27 660,696,506.70
The Qingyuan Poly Garden
(the former Beijiang New
Town Project) July 2013 December 2020 357,223.32 373,003,384.16
The Foshan Poly Central
Park (the former Sanshui
Project) March 2014 June 2018 481,562.98 477,770,702.39
Foshan Poly Zishan
International December 2014 December 2019 430,420.00 817,004,420.61
The Foshan Poly Foda
Shishan Project December 2014 December 2018 170,617.43 120,000,000.00
Shaoguan Poly Furong New
Town December 2014 December 2020 687,594.09 528,930,565.40
Shaoguan Poly Leiting
Pharmaceutical Project December 2014 December 2018 134,061.18 260,416,506.66
Zhanjiang Poly Yuandian
Square June 2014 December 2020 1,041,426.39 958,387,306.14
The Shenyang Poly
Mayflower March 2011 June 2014 295,230.61 709,305,853.10 987,510,011.68
The Shenyang Poly Shanglin
Bay May 2007 196,259.94 28,450,805.81
The Shenyang Poly Xihu
Forest Whisper April 2010 December 2015 390,513.65 847,670,450.26 768,687,465.21
The Shenyang Poly
Cambridge Residence May 2011 117,009.90 719,046,057.96
The Dandong Poly Jinjiang
Forest Whisper March 2009 December 2015 141,375.00 287,513,561.80 530,169,930.78
The Shenyang Poly Xinyu
Garden June 2008 December 2015 241,174.76 154,143,960.84 325,133,364.70
The Yingkou Poly
Champagne Garden April 2011 June 2016 295,705.12 514,273,099.99 440,649,889.42
POLY REAL ESTATE GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2013
Notes to Financial Statements Page 72
Project name Commencement date Estimated
completion date
Estimated total
investments
(RMB’0,000)
Balance as at
December 31, 2013
Balance as at January
1, 2013
The Shenyang Poly Twelve
Oaks Manor March 2009 December 2014 100,133.13 98,746,199.73 178,294,573.95
Shenyang Poly Champagne
Garden May 2013 December 2017 284,564.79 1,315,684,762.75 605,098,696.47
Shengyang Poly Jasmine
Mansion (the former
Manrong Project) September 2013 December 2016 229,601.32 653,290,673.59
Shengyang Poly Baisha
Forest Whisper (the former
Dongling Bridge Project) June 2014 December 2018 208,928.47 230,811,170.79
Shenyang Poly Zijing
Mansion (the former
Huamao Center Project) June 2014 December 2018 131,710.79 189,965,899.51
Dandong Poly Champagne
Garden June 2014 December 2017 64,888.80 149,240,000.00
The Dalian Poly West
Mountains Forest Whisper September 2012 November 2015 329,419.14 2,019,524,000.53 1,679,922,248.52
Dalian Poly Nanguanling
Project March 2014 December 2015 54,548.52 173,207,710.23
Dalian Poly Baoli Tianxi
(the former Donggang
Project) June 2014 December 2020 1,696,003.21 3,652,945,199.69
The Baotou Poly Garden June 2006 December 2015 288,704.61 216,515,432.34 45,625,141.81
The Baotou Poly Nanhai
Park May 2012 June 2015 175,068.61 1,455,342,959.99 1,435,820,913.34
The Baotou Poly
Champagne Garden September 2012 December 2014 59,049.22 437,814,940.16 278,366,811.83
The Baotou Poly Lafei
Mansion April 2009 227,342.00 846,193,384.56
The Beijing Poly Luo
Lanxiang Valley October 2011 157,821.00 1,123,447,281.69
The Beijing Poly Fanghua
Jiayuan June 2012 June 2014 52,309.08 404,614,662.94 203,322,182.09
The Beijing Poly West
Mountains Residence April 2007 December 2014 357,446.41 76,783,916.21 24,009,129.18
The Beijing Poly Dongjun September 2010 December 2014 430,882.00 686,974,338.84 3,779,398,163.60
The Beijing Poly Spring
Plaza October 2011 March 2015 538,925.20 4,241,943,210.40 3,603,056,653.51
The Beijing Poly Central
Park July 2011 December 2015 879,289.71 5,211,407,147.46 6,063,911,080.60
Beijing Poly Fengdan I (the
former Yizhuang Project) June 2013 December 2015 537,812.46 3,376,134,148.05 3,082,874,563.00
Beijing Poly Hyde Park (the
former Jimenqiao Project) September 2013 December 2015 287,194.03 2,089,861,760.64 1,853,892,813.40
Beijing Poly Xiyue Spring
(the former biomedical base
project) June 2013 December 2015 267,400.82 1,612,227,263.85 1,380,005,600.00
Beijing Poly Changping
Shahe Project June 2014 December 2018 251,730.44 1,361,357,557.61
Beijing Poly East Dam
Project June 2014 December 2017 332,438.91 2,100,000,000.00
Beijing Poly Tongzhou
Project June 2014 June 2017 508,831.73 2,126,755,015.01
Taiyuan Poly Champagne
Garden June 2014 December 2018 232,248.44 766,701,906.14
POLY REAL ESTATE GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2013
Notes to Financial Statements Page 73
Project name Commencement date Estimated
completion date
Estimated total
investments
(RMB’0,000)
Balance as at
December 31, 2013
Balance as at January
1, 2013
The Shanghai Poly
Champagne Garden December 2004 December 2015 188,483.16 938,110,732.77 751,187,762.04
The Shanghai Poly
Mayflower April 2007 215,621.55 14,441,395.70
The Shanghai Poly Phoenix
Tree September 2010 97,196.79 253,754,186.03
The Shanghai Poly
International Center August 2012 December 2015 651,254.00 3,656,032,900.75 3,272,468,357.91
The Shanghai Poly Blue
Forest Whisper August 2011 December 2015 252,409.00 1,628,251,348.23 1,491,941,478.15
The Jiaxing Poly Xitangyue September 2011 December 2015 152,978.00 123,005,321.58 237,794,333.51
The Nantong Poly
Champagne International July 2011 December 2015 325,404.88 710,334,437.73 1,908,537,748.08
The Shanghai Poly Jasmine
Mansion March 2011 December 2015 480,382.35 617,009,874.39 3,253,568,034.62
The Shanghai Poly Maoqiao
Jingcheng·Yayuan July 2012 December 2014 110,240.93 502,686,539.69 340,734,299.75
The Shanghai Poly Maoqiao
Jingcheng·Ziyuan March 2012 October 2014 73,633.97 461,019,211.30 316,779,389.35
Shanghai Poly West Coast
(the former Xihui Binjiang
Project) December 2013 June 2016 767,784.44 4,856,240,729.38 3,608,922,170.00
Shanghai Lvcheng Yuyuan
(the former Senlan
Waigaoqiao Project) June 2013 June 2016 385,025.40 2,571,353,696.51 2,127,719,150.00
Shanghai Poly International
Medical Zone Project June 2014 December 2018 335,044.27 1,740,000,000.00
The Wuhan Poly Xinyu January 2007 June 2014 308,551.89 212,700,734.13 51,328,303.40
The Wuhan Poly
Mayflower June 2009 December 2014 184,206.44 107,424,468.58 292,224,545.84
The Wuhan Poly Lafei January 2011 169,307.17 407,338,368.39
The Wuhan Poly
Champagne International July 2011 December 2014 179,819.88 438,326,737.29 1,142,028,544.58
The Wuhan Poly Mahu
Project June 2011 June 2015 343,728.98 1,066,753,387.72 1,037,225,071.66
The Wuhan Poly Central
Residence August 2011 June 2015 345,298.74 461,307,356.98 1,049,595,273.34
The Huanggang Poly No. 1
Manor June 2011 34,587.79 148,084,208.97
The Wuhan Poly Park June 2012 June 2016 548,488.99 1,880,986,652.99 2,500,707,407.43
The Wuhan Poly Guanshan
Village Project May 2013 December 2017 811,315.00 3,014,180,490.76 1,917,141,338.40
The Wuhan Poly Dreams
City April 2008 December 2015 553,825.51 299,752,081.93 510,936,173.89
The Hunan Poly Dongting
East Coast September 2007 40,013.46 46,094,921.63
The Changsha Poly Lugu
Forest Whisper March 2009 December 2015 549,692.14 415,200,074.34 528,097,599.15
The Changsha Poly
International Plaza March 2011 December 2014 554,281.29 2,442,687,701.69 2,695,609,573.50
Changsha Poly West Coast
(the former Binjiang B7
Project) December 2013 December 2017 901,395.29 3,735,589,307.87
POLY REAL ESTATE GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2013
Notes to Financial Statements Page 74
Project name Commencement date Estimated
completion date
Estimated total
investments
(RMB’0,000)
Balance as at
December 31, 2013
Balance as at January
1, 2013
Changsha Poly Champagne
International (the former
Tianjiao Project) November 2013 December 2020 413,384.36 1,045,027,107.35
Chenzhou Poly Suxianlinyu
(the former Suxianling
Project) December 2013 June 2016 86,078.31 296,807,790.60
The Chongqing Poly Garden August 2004 December 2014 338,788.20 411,079,584.26 192,140,269.45
The Chongqing Poly
Champagne Garden April 2005 December 2014 176,519.00 117,708,165.42 75,030,592.83
The Chongqing Poly
Coconut Peninsula June 2011 46,623.91 316,719,220.93
The Chongqing Poly River
Pearl August 2010 December 2015 983,537.35 2,457,107,316.43 3,907,342,280.50
The Chongqing Poly
Hornsey Garden August 2010 367,425.00 1,689,303,566.96
The Chongqing Poly Kauai
Island March 2011 55,793.95 474,831,169.73
The Chongqing Poly Harbor
International July 2010 124,075.63 9,547,014.03
The Chongqing Poly
Flowers in City Center June 2012 December 2015 325,253.73 2,257,353,206.26 1,762,473,210.12
Chongqing Poly Aishangli June 2013 June 2017 586,915.13 2,195,905,582.69 931,809,294.55
Chongqing Poly Linyuxi
(the former Banan Lijiatuo
Project) September 2013 December 2015 112,179.09 585,904,408.26 230,372,000.00
Chongqing Poly No. 1
Manor (the former
Changshou Project) December 2013 June 2016 109,369.39 452,954,123.61
Chongqing Poly Guanlan June 2014 December 2018 560,116.81 2,544,617,568.55
Chongqing Poly Beibei
Project June 2014 December 2018 158,187.94 563,193,000.00
Chongqing Poly Guantang June 2014 December 2020 633,651.88 1,170,675,844.00
The Changchun Poly Luo
Lanxiang Valley August 2007 December 2014 227,911.98 46,084,336.43 50,816,252.57
The Changchun Poly Lily
Hong Bay June 2010 186,811.99 360,334,191.15
Changchun Poly Bayi
Reservoir Project December 2014 December 2017 125,190.26 221,158,728.00
The Nanchang Poly Mingya
European - December 2014 201,057.70 37,429,009.27 146,824,913.28
The Nanchang Poly
International Garden
Mid-Levels October 2010 December 2015 612,646.90 910,233,887.28 705,980,111.61
Nanchang Poly Xinyu
Garden (the former
Qingshan Lake Project) June 2014 December 2017 130,625.74 258,355,075.00
Nanchang Poly Gold
Champagne (the former
Hi-tech Zone project) June 2014 December 2017 80,816.70 201,433,752.00
The Chengdu Poly Stone
Elephant Lake Project April 2012 December 2015 335,075.78 799,275,903.06 818,457,597.44
Chengdu Poly Xinyu Garden April 2010 June 2015 204,510.44 541,906,408.58 448,163,102.95
Chengdu Poly International
Plaza December 2014 December 2019 280,419.84 343,890,882.96 305,462,352.98
POLY REAL ESTATE GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2013
Notes to Financial Statements Page 75
Project name Commencement date Estimated
completion date
Estimated total
investments
(RMB’0,000)
Balance as at
December 31, 2013
Balance as at January
1, 2013
Chengdu Poly Xiangxue (the
former Xinyu Phase IV) March 2011 146,404.56 975,305,858.27
The Chengdu Poly
Cambridge August 2011 December 2014 274,683.00 1,077,071,791.92 2,221,586,416.60
The Chengdu Poly the
Shishan Reservoir Project December 2013 June 2016 164,292.09 716,934,461.36 411,679,705.33
The Chengdu Poly Beisen
Mansion September 2011 105,037.45 750,801,167.18
The Chengdu Poly Garden May 2010 December 2014 393,236.64 563,993,926.60 907,828,428.22
The Chengdu Poly Park 198 April 2008 December 2014 1,065,878.27 1,722,707,725.21 2,027,111,572.95
The Chengdu Poly
Champagne International May 2011 June 2014 167,838.90 208,353,779.77 1,004,568,613.31
The Chengdu Poly Lily
Mansion March 2013 December 2015 157,050.79 1,218,428,549.06 940,219,752.53
The Deyang Poly
International City (including
Phase I and II) June 2011 December 2016 780,380.14 1,188,391,086.80 1,876,481,465.97
The Chengdu Poly City September 2011 December 2015 292,506.81 1,049,511,756.47 1,181,208,765.65
The Chengdu Poly
Champaign Guanghua December 2012 December 2014 124,808.01 889,290,772.84 637,894,244.57
The Chengdu Poly Phoenix
Tree June 2013 December 2015 94,844.80 771,745,008.15 341,995,118.08
The Chengdu Poly Leaves
Whisper June 2013 June 2017 193,942.46 1,009,984,017.11 338,107,852.36
The Chengdu Spring
Flowers Whisper April 2013 December 2017 127,647.91 528,761,679.05 27,066,022.16
Chengdu Poly Rose Whisper
(the former Longquanyi
District Project) May 2013 December 2016 225,419.59 979,942,722.33
Chengdu Poly Jinhulinyu
(the former Jincheng Street
Project) December 2014 December 2017 231,258.84 680,505,043.87
Chengdu Poly Linyuxi (the
former Longtan Street
Project) September 2014 December 2018 216,873.77 246,976,340.85
Suining Poly Jiangyucheng
(the former Hedong New
District Project) June 2013 December 2016 152,207.51 399,290,483.02
Poly Linzhi Project December 2014 December 2019 63,600.00 66,627,317.00
The Shanghai Poly Leaves
of Forest December 2011 December 2015 481,727.00 3,276,750,786.37 2,952,586,843.25
The Shanghai Poly Leaf
Language August 2010 430,327.78 1,527,278,863.10
The Hangzhou Poly Jiang Yu
Hai June 2010 179,079.42 1,461,014,799.55
The Hangzhou Poly
Champagne International January 2011 95,496.95 760,710,742.51
The Hangzhou Poly Rose
Bay June 2011 December 2014 138,915.00 1,183,023,438.58 1,029,120,764.91
The Hangzhou Poly City
Green December 2011 December 2014 129,936.32 969,372,475.15 848,821,856.46
The Hangzhou Poly Joffre
County December 2011 December 2014 214,628.46 1,912,375,238.69 1,720,201,447.21
The Hangzhou Poly East
Bay March 2008 598,399.46 721,279,992.37
POLY REAL ESTATE GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2013
Notes to Financial Statements Page 76
Project name Commencement date Estimated
completion date
Estimated total
investments
(RMB’0,000)
Balance as at
December 31, 2013
Balance as at January
1, 2013
The Ningbo Poly Lakeside
World April 2012 December 2016 498,366.00 2,162,533,082.40 1,413,240,467.68
The Shaoxing Poly Lakeside
Reverie October 2011 December 2015 172,834.94 1,393,177,907.18 1,251,181,646.46
Hangzhou Poly Phoenix
Tree (the former Pufu
Project) December 2013 December 2015 159,046.96 1,033,525,626.24 155,045,000.00
Zhejiang Poly Luo Lanxiang
Valley (the former Changmu
Project) December 2013 December 2016 175,639.44 989,383,261.84
The Tianjin Poly Rose Bay September 2010 March 2015 540,629.59 1,504,856,195.87 1,762,812,547.14
The Tianjin Poly Begonia
Bay January 2011 June 2014 190,500.00 674,295,363.67 995,992,341.46
The Tianjin Poly Horizon
Capital September 2012 September 2015 565,445.86 3,503,238,833.82 3,181,716,480.24
Tianjin Poly Chanson Lake
(the former Xiazhuzhuang
Project) December 2013 June 2016 106,429.29 358,103,361.20
Tianjin Poly Luolan Manor
(the former Zhangjiawo
Project) December 2014 December 2017 174,196.23 690,026,861.66
Tianjin Poly Xihulinyu (the
former South Lake Project) December 2014 December 2018 133,180.76 334,260,327.84
The Qingdao Poly Haishang
Luolan June 2011 December 2015 321,698.31 1,760,715,234.99 1,439,007,455.84
The Qingdao Poly
Champagne International September 2012 June 2015 162,467.95 1,125,220,345.06 869,440,680.75
The Qingdao Poly Liyuanli August 2010 December 2015 161,669.02 87,409,860.95 459,792,271.76
Qingdao Poly Manyueshan
(the former East Hong Kong
Road Project) September 2013 December 2015 137,779.39 1,042,237,893.44
Qingdao Poly Leaf Mansion
(Shuangfeng Project) September 2013 December 2016 252,300.98 946,092,488.58
Qingdao Poly Jasmine
Mansion (the former Dongli
Project) March 2014 December 2016 201,999.01 735,764,451.95
Qingdao Poly Shimei'an
Project June 2014 December 2017 41,468.68 113,240,000.00
The Changchun Poly
Champagne Garden November 2011 December 2014 138,132.00 410,202,043.85 646,983,699.41
The Changchun Poly Forest
Whisper June 2010 December 2015 233,715.81 664,667,617.87 594,834,923.63
The Changchun Poly Lafei
Mansion September 2012 December 2015 199,984.00 969,958,229.99 694,957,053.02
The Changchun Poly
Jingyue Project June 2014 December 2015 43,473.00 295,165,035.09 124,000,747.93
Tonghua Poly Luo Lanxiang
Valley (the former Jilin
Tonghua Project) December 2013 December 2016 167,626.55 275,011,940.88 244,596,669.55
Changchun Poly Central
Park (the former Car Park
Project) June 2014 December 2016 231,419.18 923,145,188.07
Changchun Poly Spring
Plaza (the former Pingxin
Road Project) September 2013 June 2016 95,607.40 361,174,325.74
POLY REAL ESTATE GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2013
Notes to Financial Statements Page 77
Project name Commencement date Estimated
completion date
Estimated total
investments
(RMB’0,000)
Balance as at
December 31, 2013
Balance as at January
1, 2013
The Yang Jiang Poly Luo
Lanxiang Valley September 2009 December 2014 91,580.81 2,797,547.00 2,721,367.73
The Yang Jiang Poly Silver
Beach Project September 2010 December 2015 695,505.40 905,289,774.75 1,256,775,073.73
The Nanjing Poly
Champagne International June 2010 292,631.31 813,320,625.54
The Wuxi Poly Champagne
International November 2010 June 2015 270,094.20 1,315,721,764.21 1,031,463,080.50
The Changzhou Poly Park August 2013 December 2015 143,047.07 692,307,864.18 533,700,514.40
The Nanjing Poly Luo
Lanxiang Valley August 2011 December 2014 155,255.94 966,732,190.01 1,031,681,731.97
The Lianyungang Poly Lihai
Mayflower June 2011 December 2015 132,597.31 667,344,308.24 554,513,202.28
The Nanjing Poly Phoenix
Tree December 2011 December 2014 248,244.49 1,736,674,921.71 1,351,736,724.16
The Nanjing Poly Amethyst
Mountain September 2010 December 2014 333,885.88 429,954,404.39 1,655,366,648.94
Nanjing Poly Zijing
Mansion (the former
Jiangxinzhou Project) December 2013 December 2015 111,515.21 707,770,567.02 439,138,849.80
Nanjing Poly Luolan Spring
(the former Northwest
Xianlin Lake Parcel Project) June 2013 June 2015 170,364.58 971,880,942.53 407,158,862.35
Nanjing Poly Central Park
(the former Tongren Street
Project) December 2013 June 2017 497,585.03 2,484,986,875.59
Wuxi Poly Central Park (the
former Pegasus Textile
Project) December 2013 December 2015 197,005.63 844,682,731.85
The Zhuhai Poly
Champagne International August 2011 August 2015 232,788.83 785,114,666.60 1,208,757,647.01
The Dongguan Poly Red
Coral February 2012 December 2014 170,826.38 640,441,479.05 1,196,180,244.12
Dongguan Poly Forest
Whisper (the former
Zhangmutou Project) June 2013 December 2016 272,115.61 828,811,696.32 571,235,652.41
The Nanchang Poly
Champagne International November 2011 December 2015 255,599.16 689,470,182.08 839,231,952.18
The Nanchang Poly
International Garden in the
East Bay August 2010 165,836.62 332,080,920.39
Nanchang Poly Lily Garden December 2013 December 2015 41,039.54 252,410,636.52 102,251,635.00
The Hefei Poly Champagne
International April 2012 December 2015 395,768.76 2,260,677,093.86 1,749,010,009.12
The Hefei Poly Lafei
Mansion October 2012 July 2015 282,073.93 1,018,194,290.53 1,235,800,880.25
Hefei Poly Mayflower (the
former Binhu BH2013-1
Project) October 2013 June 2018 440,459.47 2,001,627,332.36
Hefei Poly Phoenix Tree (the
former High-tech Zone
KMB-1 Project) October 2013 December 2016 75,602.00 254,365,472.36
Hefei Poly Dongjun (the
former Yaohai E1301
Project) October 2013 June 2018 349,619.27 1,489,604,450.42
POLY REAL ESTATE GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2013
Notes to Financial Statements Page 78
Project name Commencement date Estimated
completion date
Estimated total
investments
(RMB’0,000)
Balance as at
December 31, 2013
Balance as at January
1, 2013
The Zhengzhou Poly Lily
Garden February 2012 December 2014 103,849.46 916,454,994.93 608,406,102.16
Zhengzhou Poly Mayflower
(the former Huiji District
Project) December 2013 June 2016 161,783.58 771,441,002.64
The Shijiazhuang Poly
Garden April 2013 December 2017 636,679.01 2,631,781,719.95 2,162,266,361.13
The Sanya Poly Forum
Project June 2014 June 2016 305,386.59 849,970,845.32 8,082,858.33
The Fuzhou Poly Xijiang
Forest Whisper August 2013 December 2015 289,777.02 1,449,600,120.76 672,894,169.86
Xi'an Poly Spring Plaza (the
former Qujiang Project) September 2013 June 2016 207,237.27 865,469,973.67 563,391,774.77
Xi'an Poly Gold Champagne
(the former Sanqiao Project) December 2013 June 2016 145,961.62 393,832,603.75 130,019,409.00
Xi'an Poly Lafei Mansion September 2013 December 2016 340,663.54 1,024,660,724.72 669,809,661.33
Total 214,902,424,143.16 177,164,086,151.53
(2) Development products
Project name Completion date Balance as at
January 1, 2013 Increase in 2013 Decrease in 2013
Balance as at
December 31, 2013
Guangzhou Poly Beijing
Plaza September 2001 3,564,058.43 3,564,058.43
The Guangzhou Poly
Cotton Tree Garden December 2001 1,512,465.36 1,512,465.36
The Poly Guangzhou
Baiyun Hills December 2002 4,100,360.37 31,191.80 4,069,168.57
The Guangzhou Poly Lily
Garden April 2005 4,045,533.80 26,853,016.00 30,898,549.80
The Guangzhou Poly Lily
Garden II April 2007 12,886,984.82 216,483.15 12,670,501.67
The Guangzhou Poly
Champagne Garden November 2005 2,620,669.43 938,854.46 1,165,349.80 2,394,174.09
The Guangzhou Poly
Xiangxue Mountains September 2011 123,598,212.12 91,113,154.58 8,941,992.11 205,769,374.59
The Guangzhou Poly West
Sub Bay December 2010 69,024,272.30 22,440,160.85 82,790,135.03 8,674,298.12
The Guangzhou Poly
Begonia Garden June 2006 1,473,986.25 1,473,986.25
The Guangzhou Poly
International Plaza March 2007 238,254,314.83 238,254,314.83
The Guangzhou Bao Li
Linhai Hills February 2010 112,581,995.46 5,373,040.15 117,955,035.61
The Guangzhou Poly
Center July 2010 67,904,396.87 10,479,541.09 1,861,770.88 76,522,167.08
The Guangzhou Poly
Manor 2010 September 2011 82,920,565.48 11,056,336.85 71,864,228.63
The Guangzhou Poly
Spring Plaza November 2011 11,781,249.19 11,781,249.19
The Guangzhou Poly
Champaign Mansion June 2013 562,948,494.00 513,881,743.32 49,066,750.68
The Guangzhou Paul
Forest Whisper Hills June 2011 2,545,374.09 2,545,374.09
The Guangzhou Poly
Ziwei Garden December 2013 15,111,696.90 27,178,622.85 38,163,390.64 4,126,929.11
POLY REAL ESTATE GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2013
Notes to Financial Statements Page 79
Project name Completion date Balance as at
January 1, 2013 Increase in 2013 Decrease in 2013
Balance as at
December 31, 2013
The Guangzhou Poly
Xinyu Garden June 2010 39,171,334.76 60,918.75 1,202,213.28 38,030,040.23
Guangzhou Zengcheng
Poly No. 1 Manor December 2010 34,929,921.90 53,969,462.83 298,495.80 88,600,888.93
The Guangzhou Poly V
Block June 2012 100,262,019.07 116,662,128.43 216,924,147.50
The Guangzhou Poly
Zhongyu Square April 2011 45,632,056.53 4,773,685.37 10,362,089.29 40,043,652.61
The Guangzhou Poly
Central Square September 2011 101,128,404.73 45,740,816.62 146,869,221.35
The Guangzhou Poly
Central Plaza May 2013 83,418,662.40 393,280,956.94 288,065,668.55 188,633,950.79
The Guangzhou Poly
Zhongchen Square December 2014 40,010,019.54 29,339,372.08 10,670,647.46
The Guangzhou Poly West
Coast Residence
(including the Guangzhou
Poly Xinghai Garden) December 2014 142,212,634.16 3,192,071,254.67 3,327,554,836.20 6,729,052.63
The Guangzhou
Zengcheng Poly
Dongjiang Capital December 2015 1,756,144,090.59 1,744,707,332.09 11,436,758.50
The Guangzhou Poly
Luokewei Square December 2015 931,365,164.60 752,573,287.20 178,791,877.40
The Guangzhou Poly
Zhongda Plaza June 2014 982,706,560.00 982,706,560.00
The Guangzhou Poly Park December 2015 629,528,919.60 629,528,919.60
The Guangzhou Poly
World Trade Center December 2015 76,947,000.17 12,125,276.91 65,960,641.18 23,111,635.90
The Dongguan Poly Red
Coral December 2014 794,386,460.59 699,359,466.90 95,026,993.69
The Zhongshan Poly
Spring Plaza December 2016 368,733,998.60 218,333,772.40 150,400,226.20
The Zhongshan Poly
International Plaza December 2016 502,924,465.35 470,828,640.83 32,095,824.52
The Zhuhai Poly
Champagne International August 2015 976,147,698.22 976,147,698.22
The Nanhai Poly Water
City June 2011 222,817,446.27 14,309,600.26 1,484,763.58 235,642,282.95
The Nanhai Poly Garden June 2011 43,191,835.74 71,629,093.40 30,407,986.69 84,412,942.45
The Nanhai Poly
Constellation May 2010 40,887,015.79 1,629,996.79 39,257,019.00
The Foshan Poly Donghu
Forest Whisper December 2014 3,385,456.81 1,001,776,316.12 634,480,951.65 370,680,821.28
The Shunde Poly Lily
Garden July 2011 4,554,062.98 308,731.93 4,245,331.05
The Foshan Poly
Champagne Garden December 2013 156,598,905.39 1,082,946,980.38 711,880,646.92 527,665,238.85
The Yang Jiang Poly Luo
Lanxiang Valley December 2014 129,871,534.98 103,183,887.54 123,256,715.74 109,798,706.78
The Yang Jiang Poly
Silver Beach December 2015 551,098,921.59 819,189,340.00 914,232,881.40 456,055,380.19
The Foshan Poly No. 1 on
the Bund December 2014 231,757,261.79 460,733,581.86 401,466,920.02 291,023,923.63
The Foshan Poly East Bay
II December 2015 87,059,568.90 1,093,341,484.01 1,171,289,191.66 9,111,861.25
POLY REAL ESTATE GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2013
Notes to Financial Statements Page 80
Project name Completion date Balance as at
January 1, 2013 Increase in 2013 Decrease in 2013
Balance as at
December 31, 2013
The Foshan Poly Central
Plaza June 2015 1,021,530,584.00 858,389,520.30 163,141,063.70
The Foshan Poly East Bay
I December 2016 274,662,597.30 257,104,787.55 17,557,809.75
The Shenyang Poly
Garden June 2012 54,589,771.86 44,869,263.16 9,720,508.70
The Shenyang Begonia
Garden July 2007 4,210,878.12 616,111.74 4,826,989.86
The Shenyang Poly Lihai
Mayflower June 2014 137,626,195.76 464,654,809.29 514,871,741.87 87,409,263.18
The Shenyang Poly
Shanglin Bay December 2013 33,131,250.17 132,091,137.83 132,343,426.87 32,878,961.13
The Dandong Poly
Jinjiang Forest Whisper December 2015 83,871,909.78 424,680,842.50 241,414,667.28 267,138,085.00
The Shenyang Poly Xihu
Forest Whisper December 2015 447,065,346.37 346,596,353.92 702,741,923.26 90,919,777.03
The Shenyang Poly
Cambridge Residence December 2013 1,050,085,964.38 327,276,433.41 722,809,530.97
The Shenyang Poly Xinyu
Garden December 2015 86,047,607.28 237,696,992.53 299,390,933.69 24,353,666.12
The Shenyang Poly
Twelve Oaks Manor December 2014 76,106,157.44 120,031,696.29 196,137,853.73
The Dalian Poly West
Coast December 2012 577,152,938.68 58,858,720.40 518,294,218.28
The Yingkou Poly
Champagne Garden June 2016 226,510,750.13 184,127,343.30 252,391,591.78 158,246,501.65
The Beijing Poly Xinyuan July 2005 5,490,012.00 5,490,012.00
The Beijing Poly Rose
Garden March 2010 11,601,553.73 11,601,553.73
The Beijing Poly West
Mountains Forest Whisper December 2014 82,226,891.32 4,594,945.82 14,812,479.38 72,009,357.76
The Beijing Poly Jasmine
Manor December 2012 133,926,345.25 483,631.42 131,245,262.13 3,164,714.54
The Beijing Poly Jia
Garden December 2011 70,536,643.49 9,621,939.88 64,127,390.45 16,031,192.92
The Beijing Poly
Longshang December 2012 18,692,953.66 3,564,408.31 18,496,361.08 3,761,000.89
The Beijing Poly Dongjun December 2014 3,481,223,911.51 3,481,223,911.51
The Beijing Poly Luo
Lanxiang Valley December 2013 1,536,048,443.31 1,510,224,944.31 25,823,499.00
The Beijing Poly Central
Park December 2015 2,157,163,457.23 2,157,163,457.23
The Wuhan Poly Garden July 2008 36,252,936.22 621,113.97 35,631,822.25
The Wuhan Poly Twelve
Oaks Manor December 2012 135,592,763.01 57,892,756.00 77,700,007.01
The Wuhan Poly Xinyu June 2014 38,280,422.01 26,717,167.79 11,563,254.22
The Wuhan Poly Haiyu December 2010 618,887.00 618,887.00
The Wuhan Poly
Mayflower December 2014 47,380,958.68 432,113,774.52 312,135,813.53 167,358,919.67
The Wuhan Poly Central
Residence June 2015 237,617,514.79 1,404,890,812.90 836,414,320.74 806,094,006.95
The Wuhan Poly Lafei December 2013 205,029,788.50 746,507,286.05 794,396,874.68 157,140,199.87
The Wuhan Poly Dreams
City December 2015 169,379,659.95 385,961,969.87 300,756,634.74 254,584,995.08
The Wuhan Poly
Champagne International December 2014 215,950,924.77 882,585,137.58 1,015,049,479.21 83,486,583.14
POLY REAL ESTATE GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2013
Notes to Financial Statements Page 81
Project name Completion date Balance as at
January 1, 2013 Increase in 2013 Decrease in 2013
Balance as at
December 31, 2013
The Wuhan Poly Mahu
Project June 2015 130,208,253.90 455,084,273.90 457,180,442.73 128,112,085.07
The Wuhan Poly Park June 2016 1,184,821,763.28 1,002,943,174.61 181,878,588.67
The Huanggang Poly No.
1 Mansion May 2013 30,022,448.98 281,464,232.96 304,303,918.20 7,182,763.74
The Changsha Jinli
Garden December 2002 3,495,925.23 70,000.00 3,425,925.23
The Changsha Poly
Garden January 2002 196,099.71 196,099.71
The Changsha Poly
Garden I January 2010 12,881,681.24 180,131.90 3,142,661.55 9,919,151.59
The Changsha Poly
Garden II June 2012 77,874,518.00 6,570,209.89 71,304,308.11
The Hunan Poly Dongting
East Coast June 2013 65,494,653.69 14,211,702.34 51,282,951.35
The Changsha Poly Lugu
Forest Whisper December 2015 664,643,858.57 286,470,644.26 676,579,950.45 274,534,552.38
The Changsha Poly
Langzhong Peak Cloud
Villa December 2012 119,657,776.81 83,889,282.24 35,768,494.57
The Changsha Poly
International Plaza December 2014 1,162,888,149.42 876,600,606.49 286,287,542.93
The Shanghai Poly
Champagne Garden December 2015 27,497,744.36 2,929,678.90 24,568,065.46
The Shanghai Poly West
Sub Bay November 2010 54,366,284.96 54,366,284.96
The Shanghai Poly
Mayflower December 2013 10,383,751.96 84,017,980.28 70,038.46 94,331,693.78
The Shanghai Poly Forest
Whisper Creek May 2011 26,320,026.98 1,192,165.81 25,127,861.17
The Shanghai Poly Leaf of
Shanghai December 2013 144,254,032.57 108,236,831.13 36,017,201.44
The Shanghai Poly
Phoenix Tree December 2013 285,553,110.10 323,413,320.78 301,698,158.00 307,268,272.88
The Shanghai Poly
Jasmine Mansion December 2015 3,221,901,018.99 1,815,497,444.93 1,406,403,574.06
The Shanghai Poly Leaf
Whisper December 2013 96,781,060.16 2,240,045,262.72 1,514,886,328.26 821,939,994.62
The Jiaxing Paul
Xitangyue December 2015 433,041,599.56 433,041,599.56
The Nantong Poly
Champagne International December 2015 1,583,319,688.20 696,334,670.44 886,985,017.76
The Chongqing Poly
Garden December 2014 142,319,203.88 6,462,354.32 15,121,572.66 133,659,985.54
The Chongqing Poly
Champagne Garden December 2014 122,842,809.59 24,392,825.96 8,550,163.02 138,685,472.53
The Chongqing Poly
Xinyu May 2011 42,464,913.72 21,694,979.99 12,759,632.67 51,400,261.04
The Chongqing Poly
Cambridge May 2011 43,606,466.40 15,166,238.33 11,746,961.48 47,025,743.25
The Chongqing Poly River
Pearl December 2015 301,171,697.54 3,275,906,945.73 1,579,540,653.77 1,997,537,989.50
The Chongqing Guobin
Shangyuan March 2010 16,090,194.82 1,481,268.00 17,571,462.82
The Chongqing Poly
Harbor International December 2013 341,264,938.50 70,906,845.37 225,742,681.79 186,429,102.08
POLY REAL ESTATE GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2013
Notes to Financial Statements Page 82
Project name Completion date Balance as at
January 1, 2013 Increase in 2013 Decrease in 2013
Balance as at
December 31, 2013
The Chongqing Poly
Hornsey Garden December 2013 10,721,345.97 2,468,033,675.09 2,262,343,469.01 216,411,552.05
The Chongqing Poly
Coconut Peninsula June 2013 440,648,297.54 416,247,264.30 24,401,033.24
The Chongqing Poly
Kauai Island January 2013 547,872,369.49 516,173,586.72 31,698,782.77
The Baotou Poly Lily
Garden December 2013 2,160,077.37 518,063.00 1,642,014.37
The Baotou Poly Lafei
Mansion December 2013 20,699,907.79 1,063,838,880.02 964,553,166.65 119,985,621.16
The Baotou Poly Garden December 2013 21,880,804.42 3,232,415.03 18,648,389.39
The Baotou Poly Nanhai
Park June 2015 252,569,461.43 43,982,076.20 208,587,385.23
The Nanchang Poly
Mingya European December 2014 130,623,004.50 126,994,712.18 135,883,479.28 121,734,237.40
The Nanchang Poly East
Bay International Garden December 2013 116,184,268.36 660,405,835.53 477,325,005.17 299,265,098.72
The Nanchang Poly
International Garden
Mid-Levels December 2015 144,695,823.06 328,377,066.59 54,942,395.39 418,130,494.26
The Nanchang Poly
Champagne International December 2015 257,092,291.56 671,201,742.72 796,602,055.24 131,691,979.04
The Changchun Poly Luo
Lanxiang Valley December 2014 60,945,377.19 18,326,196.44 10,262,243.14 69,009,330.49
The Changchun Poly Lily
Hong Bay December 2013 75,858,143.46 679,080,626.65 743,664,689.36 11,274,080.75
The Changchun Poly
Forest Whisper December 2015 11,040,357.61 254,893,187.96 224,051,216.14 41,882,329.43
The Changchun Poly
Champagne Garden December 2014 16,860,072.28 499,941,650.66 507,884,273.72 8,917,449.22
The Chengdu Poly Park
198 December 2014 550,411,901.33 645,594,586.56 144,024,153.49 1,051,982,334.40
The Chengdu Poly Gold
Champagne December 2011 29,963,537.94 4,687,868.89 34,651,406.83
The Chengdu Poly Garden December 2014 131,877,308.04 415,636,115.15 431,071,353.34 116,442,069.85
Chengdu Poly Xinyu
Garden June 2015 93,676,589.59 193,665,970.19 188,734,163.06 98,608,396.72
Chengdu Poly Xiangxue
Garden (the former Xinyu
Phase II) June 2013 1,453,416,300.44 705,987,311.40 747,428,989.04
The Chengdu Poly
Champagne International June 2014 1,036,290,809.73 914,611,687.21 121,679,122.52
The Chengdu Poly Center June 2012 394,945,956.07 168,227,304.60 226,718,651.47
The Chengdu Poly Stone
Elephant Lake Project December 2015 406,589,782.10 402,993,737.40 3,596,044.70
The Chengdu Poly Beisen
Mansion December 2013 939,501,585.03 433,662,245.79 505,839,339.24
The Chengdu Poly
Cambridge December 2014 1,452,514,340.76 753,203,573.58 699,310,767.18
The Chengdu Poly City December 2015 791,829,015.85 716,556,863.62 75,272,152.23
The Deyang Poly
International City
(including Phase I and II) December 2016 1,708,029,310.07 738,795,318.75 969,233,991.32
The Tianjin Poly River
Hymns December 2013 76,315,729.06 7,764,328.91 68,551,400.15
POLY REAL ESTATE GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2013
Notes to Financial Statements Page 83
Project name Completion date Balance as at
January 1, 2013 Increase in 2013 Decrease in 2013
Balance as at
December 31, 2013
The Tianjin Poly Begonia
Bay June 2014 69,268,528.08 774,654,789.86 497,789,374.23 346,133,943.71
The Tianjin Poly Rose Bay March 2015 124,226,119.39 1,002,168,147.32 877,358,050.30 249,036,216.41
The Tianjin Poly
Champagne International December 2013 25,087,951.84 328,926,657.03 260,066,699.28 93,947,909.59
The Qingdao Poly Lily
Garden December 2011 89,694,082.04 17,720,294.84 71,973,787.20
The Qingdao Poly Lily
Garden West End April 2013 114,945,439.61 56,992,844.22 57,952,595.39
The Qingdao Poly
Liyuanli December 2015 55,433,222.00 589,098,614.36 528,023,748.32 116,508,088.04
The Qingdao Poly
Haishang Luolan December 2015 25,804,668.77 585,888,739.82 574,892,346.71 36,801,061.88
The Hangzhou Poly East
Bay December 2013 507,360,649.15 1,662,952,521.79 1,744,986,498.93 425,326,672.01
The Hangzhou Poly Jiang
Yu Hai April 2013 1,741,852,100.03 1,147,989,014.82 593,863,085.21
The Hangzhou Poly
Champagne International December 2013 924,700,267.18 772,209,540.63 152,490,726.55
The Nanjing Poly
Champagne International December 2013 22,727,406.00 1,006,747,008.50 962,146,518.42 67,327,896.08
The Nanjing Poly Luo
Lanxiang Valley December 2014 438,571,077.27 434,503,702.21 4,067,375.06
The Nanjing Poly
Amethyst Mountain December 2014 88,848,057.85 1,607,719,603.83 1,628,875,706.79 67,691,954.89
The Wuxi Poly
Champagne International June 2015 403,344,868.35 172,916,935.66 230,427,932.69
The Hefei Poly Lafei
Mansion July 2015 557,769,482.20 440,486,101.20 117,283,381.00
Total 12,452,671,938.43 74,413,403,358.40 61,911,486,067.74 24,954,589,229.09
5.6.2 Capitalized interest
The balance of capitalized interest amounted to RMB 9,328,080,064.04 at the end of the
reporting period. Interest capitalized in the current period of 2013 is RMB
5,522,548,869.68 and the capitalization ratio of interest was 84.15% in 2013.
5.6.3 Inventories used as mortgage
Inventories including the Beijing Poly Dongjun and other projects with total book value of
RMB 61,423,917,600 have been mortgaged. See Note 9.6 for details.
5.7 Long-term equity investments
5.7.1 Long-term equity investments are classified as follows:
Item Balance as at December 31,
2013
Balance as at January 1,
2013
Joint ventures 2,203,363,567.90 530,886,078.88
Associates 643,165,160.47 164,353,946.73
Other equity investments 535,554,214.53 655,554,214.53
Sub-total 3,382,082,942.90 1,350,794,240.14
Less: provision for impairment
Total 3,382,082,942.90 1,350,794,240.14
POLY REAL ESTATE GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2013
Notes to Financial Statements Page 84
5.7.2 Information about joint ventures and associates:
Name of investee
Shareholding
ratio in investee
(%)
Voting ratio
in investee
(%)
Total assets
as at
December 31, 2013
Total liabilities
as at
December 31, 2013
Total net asset
as at
December 31, 2013
Total operating
income in
2013
Net profit in
2013
I. Joint ventures
1. Guangzhou Bao'ao 50 50 10,001,066.10 151,955.40 9,849,110.70 -150,889.30
2. Fujian Zhongliansheng Real
Estate Development Co., Ltd.
(“Fujian Zhongliansheng”)
50 50 1,968,605,027.98 1,773,277,828.95 195,327,199.03 1,036,783,339.00 189,865,929.49
3. Shengshi Xinhe 50 50 6,122,608,346.48 4,445,812,939.09 1,676,795,407.39 4,538,760,946.02 807,906,579.83
4. Changchun Wanke Stream &
Valley Real Estate Development
Co., Ltd. (“Changchun Stream &
Valley”)
50 50 1,492,753,872.16 1,334,885,489.30 157,868,382.86 545,232,686.00 90,454,422.20
5. Wuhan Qingneng 50 50 968,185,898.30 871,661,321.00 96,524,577.30 -3,475,422.70
6. Foshan Zhaoshang Longyuan
Real Estate Investment Co.,
Ltd.("Zhaoshang Longyuan
Longyuan")
50 50 772,958,359.27 672,932,756.59 100,025,602.68 25,602.68
7. Nanjing Xueshang 50 50 1,852,438,738.08 1,669,770,501.08 182,668,237.00 -17,331,763.00
8. Guangzhou Zhongyao 50 50 2,179,210,183.05 180,000,410.40 1,999,209,772.65 -790,227.35
II. Associates
1. Dongguan Wanlong 20 20 3,891,393,446.80 3,881,415,869.05 9,977,577.75 -22,422.25
2. Tianjin Munan Qiushi
Industrial Co., Ltd. ("Munan
Qiushi")
33.33 33.33 51,000,000.00 51,000,000.00
3. ECIC Fund Management 40 40 3,448,355,866.02 2,716,742,022.05 731,613,843.97 269,243,812.55 275,217,333.01
4. Fuzhou Zhongding Investment
Co., Ltd. (“Fuzhou Zhongding”) 40 40 4,986,922,994.41 4,950,547,332.09 36,375,662.32 -19,740,355.01
5. Hangzhou Jinmu 49 49 668,230,054.50 377,072,207.98 291,157,846.52 -8,842,153.48
6. Poly Rentai 49 49 1,329,827,153.91 830,460,000.00 499,367,153.91 -632,846.09
POLY REAL ESTATE GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2013
Notes to Financial Statements Page 85
5.7.3 Details of long-term equity investments:
Investee Accounting method Investment cost Balance as at
January 1, 2013 Increase or decrease
Including: share of
other comprehensive
income of associates
and joint ventures
Balance as at
December 31, 2013
Shareholding ratio
in investee (%)
Voting ratio in
investee (%)
Description on
difference of
shareholding
ratio and voting
ratio in investee
Provision for
impairment
Provision for
impairment
made in 2013
Cash dividends in
2013
Dongguan Wanlong Equity method 2,000,000.00 1,995,515.55 1,995,515.55 20 20
Guangzhou Bao'ao Equity method 5,000,000.00 4,924,555.35 4,924,555.35 50 50
Munan Qiushi Equity method 17,000,000.00 17,000,000.00 17,000,000.00 33.33 33.33
Changchun Stream & Valley Equity method 25,000,000.00 93,706,980.34 -14,772,788.90 78,934,191.44 50 50 60,000,000.00
Fujian Zhongliansheng Equity method 25,000,000.00 2,730,634.76 94,932,964.76 97,663,599.52 50 50
Fuzhou Zhongding Equity method 40,000,000.00 22,446,406.92 -10,599,118.07 11,847,288.85 40 40
ECIC Fund Management Equity method 40,000,000.00 141,907,539.81 83,057,566.04 224,965,105.85 40 40 24,000,000.00
Wuhan Qingneng Equity method 50,000,000.00 39,903,413.65 39,903,413.65 50 50
Zhaoshang Longyuan Equity method 50,000,000.00 50,012,801.34 50,012,801.34 50 50
Shengshi Xinhe Equity method 200,000,000.00 434,448,463.78 403,949,239.92 838,397,703.70 50 50
Nanjing Xueshang (Note 1) Equity method 100,000,000.00 93,922,416.58 93,922,416.58 50 50
Hangzhou Jinmu Equity method 147,000,000.00 142,667,344.79 142,667,344.79 49 49
Poly Rentai Equity method 245,000,000.00 244,689,905.43 244,689,905.43 49 49
Guangzhou Zhongyao Equity method 1,000,000,000.00 999,604,886.32 999,604,886.32 50 50
Beijing New Poly Plaza Real
Estate Development Co., Ltd.
("New Poly Plaza") Cost method
14,822,800.00 10,751,229.53 10,751,229.53 10.53 10.53
Poly Finance Company Limited
(Poly Finance) Cost method 76,802,985.00 76,802,985.00 76,802,985.00 10 10 3,301,232.86
Shaoshan Everbright Rural Bank
Co., Ltd. Cost method 4,000,000.00 4,000,000.00 4,000,000.00 8 8
ECIC Limited Partnership (Note
2) Cost method 444,000,000.00 564,000,000.00 -120,000,000.00 444,000,000.00
Total 2,485,625,785.00 1,350,794,240.14 2,031,288,702.76 - 3,382,082,942.90 87,301,232.86
Note 1: For this joint venture, the Company and the other shareholders follow the agreed-upon terms to account for the projects, recognizing and
distributing profits according the shareholding ownership.
Note 2: In August 2010, ECIC (Tianjin) Equity Investment Fund Management Co., Ltd., an associate of the Company, formed ECIC (Tianjin)
Equity Investment Fund Partnership (Limited Partnership) as a general partner. The Company is a limited partner in this Limited Partnerhsip. The
total contributions paid amounted to RMB 600,000,000.00. The Company has recouped RMB 156,000,000.00, of which RMB 120,000,000.00 was
collected in 2013.
POLY REAL ESTATE GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2013
Notes to Financial Statements Page 86
5.7.4 There was no restriction on the Company’s ability to transfer funds to the investee
entities in 2013.
5.7.5 There was no long-term equity investment that was sold at an obviously higher price
than book value in 2013.
5.8 Investment property
Item Balance as at
January 1, 2013
Increase in
2013
Decrease in
2013
Balance as at
December 31, 2013
1. Total original book value 5,245,230,980.07 181,956,376.06 5,427,187,356.13
(1) Buildings and
constructions 5,245,230,980.07 181,956,376.06 5,427,187,356.13
(2) Land use right
2. Total accumulated
depreciation and
accumulated amortization 527,273,742.95 186,116,125.89 1,092,984.84 712,296,884.00
(1) Buildings and
constructions 527,273,742.95 186,116,125.89 1,092,984.84 712,296,884.00
(2) Land use right
3. Total net investment
property 4,717,957,237.12 -4,159,749.83 -1,092,984.84 4,714,890,472.13
(1) Buildings and
constructions 4,717,957,237.12 -4,159,749.83 -1,092,984.84 4,714,890,472.13
(2) Land use right
4. Total amounts of
accumulated provision for
impairment of investment
property
(1) Buildings and
constructions
(2) Land use right
5. Total book value of
investment property 4,717,957,237.12 -4,159,749.83 -1,092,984.84 4,714,890,472.13
(1) Buildings and
constructions 4,717,957,237.12 -4,159,749.83 -1,092,984.84 4,714,890,472.13
(2) Land use right
Note:
(1) The depreciation and amortization amounted to RMB 186,116,125.89 in 2013. There was no
property impairment as at the end of the year.
(2) Investment property of book value of RMB 3,793,425,100 has been mortgaged. See Note 9.6
for details.
5.9 Fixed assets
5.9.1 Fixed assets:
Item Balance as at
January 1, 2013 Increase in 2013 Decrease in 2013
Balance as at
December 31, 2013
1. Total original book
value: 1,624,761,468.34 819,555,256.72 104,058,544.18 2,340,258,180.88
Including: buildings and
constructions 1,262,293,838.23 745,655,927.85 90,386,506.57 1,917,563,259.51
Vehicles 154,940,138.60 28,607,670.49 7,494,605.05 176,053,204.04
Electronic and office
equipment 110,602,960.23 33,787,969.61 3,814,625.40 140,576,304.44
Other equipment 96,924,531.28 11,503,688.77 2,362,807.16 106,065,412.89
Increase in 2013 Provision in 2013
POLY REAL ESTATE GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2013
Notes to Financial Statements Page 87
Item Balance as at
January 1, 2013 Increase in 2013 Decrease in 2013
Balance as at
December 31, 2013
2. Total accumulated
depreciation: 246,330,141.60 2,627,006.80 119,590,326.62 13,328,811.46 355,218,663.56
Including: buildings and
constructions 63,800,095.90 70,114,681.06 2,599,665.64 131,315,111.32
Vehicles 80,838,159.17 2,142,635.74 22,098,829.38 6,012,750.75 99,066,873.54
Electronic and office
equipment 59,187,369.74 484,371.06 20,388,397.59 3,085,630.60 76,974,507.79
Other equipment 42,504,516.79 6,988,418.59 1,630,764.47 47,862,170.91
3. Total net book value
of fixed assets 1,378,431,326.74 1,985,039,517.32
Including: buildings and
constructions 1,198,493,742.33 1,786,248,148.19
Vehicles 74,101,979.43 76,986,330.50
Electronic and office
equipment 51,415,590.49 63,601,796.65
Other equipment 54,420,014.49 58,203,241.98
4. Total provision for
impairment
Including: buildings and
constructions
Vehicles
Electronic and office
equipment
Other equipment
5. Total book value of
fixed assets 1,378,431,326.74 1,985,039,517.32
Including: buildings and
constructions 1,198,493,742.33 1,786,248,148.19
Vehicles 74,101,979.43 76,986,330.50
Electronic and office
equipment 51,415,590.49 63,601,796.65
Other equipment 54,420,014.49 58,203,241.98
Note:
(1) The depreciation amounted to RMB 119,590,326.62 in 2013. There were no fixed
assets transferred from construction in progress in 2013.
(2) The book value of fixed assets used as mortgage or guarantee amounted to RMB
77,995,600 as at December 31, 2013. See Note 9.6 for details.
5.9.2 There was no fixed asset leased out under operating leases in 2013.
5.9.3 There was no held-for-sale fixed asset as at December 31, 2013.
5.9.4 There was no fixed asset without certificate of title as at December 31, 2013.
5.9.5 There was no fixed asset that was sold at an obviously higher price than book value in
2013.
5.10 Intangible assets
Item Balance as at
January 1, 2013
Increase
in 2013
Decrease
in 2013
Balance as at
December 31, 2013
1. Total original book value 20,847,640.74 8,078,351.98 163,823.41 28,762,169.31
Software 20,847,640.74 8,078,351.98 163,823.41 28,762,169.31
2. Total accumulated amortization 9,982,506.28 4,244,078.11 14,226,584.39
POLY REAL ESTATE GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2013
Notes to Financial Statements Page 88
Item Balance as at
January 1, 2013
Increase
in 2013
Decrease
in 2013
Balance as at
December 31, 2013
Software 9,982,506.28 4,244,078.11 14,226,584.39
3. Total net book value of intangible
assets 10,865,134.46 3,834,273.87 163,823.41 14,535,584.92
Software 10,865,134.46 3,834,273.87 163,823.41 14,535,584.92
4. Total provision for impairment
Software
5. Total book value of intangible
assets 10,865,134.46 3,834,273.87 163,823.41 14,535,584.92
Software 10,865,134.46 3,834,273.87 163,823.41 14,535,584.92
Note: Amortization amounted to RMB 4,244,078.11 in 2013.
5.11 Goodwill
Name of investee or events
forming goodwill
Balance as at
January 1, 2013
Increase
in 2013
Decrease
in 2013
Balance as at
December 31, 2013
Total provision for
impairment as at
December 31, 2013
Poly Shanghai 4,769.05 4,769.05
Jianqiao Shanghai 518,996.21 518,996.21
Poly Digital 1,779,460.75 1,779,460.75
Junlan Land 232,946.59 232,946.59
Poly Yueyang 95,395.44 95,395.44
Chongqing Industry
Supervision 50,939.26 50,939.26
Ruida Nanchang 7,660,000.00 7,660,000.00
Shanghai Junyuan 4,313.73 4,313.73
Total 10,342,507.30 4,313.73 4,313.73 10,342,507.30
5.12 Long-term deferred expenses
Item Balance as at
January 1, 2013
Increase
in 2013
Amortization
in 2013
Other
decrease
Balance as at
December 31, 2013
Reason for
other
decrease
Improvement
of office
building and
others 36,575,772.80 14,396,655.66 23,486,708.98 27,485,719.48
Total 36,575,772.80 14,396,655.66 23,486,708.98 27,485,719.48
5.13 Deferred income tax assets and deferred income tax liabilities
5.13.1 Deferred income tax assets and deferred income tax liabilities not presented as net
amount after offsetting
(1) Recognized deferred income tax assets and deferred income tax liabilities
Item Balance as at
December 31, 2013
Balance as at
January 1, 2013
Deferred income tax assets:
Provision for bad debt 61,862,876.33 46,424,431.53
Difference of equity investment 2,658,297.65 2,658,297.65
Internal unrealized income 600,143,057.15 417,498,581.73
Accrued expenses, etc. 132,758,460.93 69,044,484.11
Sub-total 797,422,692.06 535,625,795.02
Deferred income tax liabilities:
Deferred income tax liabilities arising from
differences between the dutiable value and fair
value of the acquire 61,272,278.97 67,550,710.19
Sub-total 61,272,278.97 67,550,710.19
POLY REAL ESTATE GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2013
Notes to Financial Statements Page 89
5.13.2 Temporary differences corresponding to asset and liability items leading to temporary
differences
Item Amount
Taxable differences items
Deferred income tax liabilities arising from
differences between the dutiable value and fair value
of the acquiree 245,089,115.88
Sub-total 245,089,115.88
Deductible differences items
Provision for bad debt 247,451,505.32
Difference of equity investment 10,633,190.60
Internal unrealized income 2,400,572,228.60
Accrued expenses, etc. 531,033,843.72
Sub-total 3,189,690,768.24
5.14 Provision for assets impairment
Item Balance as at
January 1, 2013 Increase in 2013
Decrease in 2013 Balance as at
December 31, 2013 Reversal Write-off
Provision for impairment 185,697,726.13 61,753,779.19 247,451,505.32
Total 185,697,726.13 61,753,779.19 247,451,505.32
5.15 Short-term borrowings
5.15.1 Classification of short-term borrowings:
Item Balance as at December 31,
2013
Balance as at January 1,
2013
Pledged borrowing
Mortgage borrowing
Guaranteed borrowing 1,370,000,000.00 1,348,000,000.00
Credit borrowing
Total 1,370,000,000.00 1,348,000,000.00
Note: See Note 9.1 for details of guaranteed borrowing.
5.15.2 Of the above borrowings, none is beyong maturity date.
5.16 Accounts payable
5.16.1 Accounts payable were presented by aging as follows:
Item
Balance as at December 31, 2013 Balance as at January 1, 2013
Amount Percentage
(%) Amount
Percentage
(%)
Within 1 year 14,169,697,827.53 75.89 10,768,003,819.82 84.17
1-2 years 3,620,976,972.35 19.39 1,472,250,360.90 11.51
2-3 years 537,365,306.69 2.88 348,144,897.25 2.72
Over 3 years 342,663,308.60 1.84 204,488,530.60 1.60
Total 18,670,703,415.17 100.00 12,792,887,608.57 100.00
Note: Accounts payable included project amounts payable, accrued costs and expenses, and
others.
5.16.2 Of the balance of account payables as at December 31, 2013, no amounts were due to
shareholders holding more than 5% (inclusive) voting shares of the Company.
5.16.3 No amount was due to related parties as at December 31, 2013.
POLY REAL ESTATE GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2013
Notes to Financial Statements Page 90
5.16.4 Accounts payables with significant amount and aging of over one year are mainly
project amounts and quality guarantee deposits payable for property projects.
5.17 Amounts received in advance
5.17.1 The amounts received in advance are presented by aging as follows:
Item Balance as at December 31, 2013 Balance as at January 1, 2013
Amount Percentage (%) Amount Percentage (%)
Within 1 year 81,500,524,812.48 76.05 71,030,393,475.02 78.44
1-2 years 24,874,903,319.94 23.21 18,965,451,574.33 20.95
2-3 years 679,475,766.04 0.63 549,875,304.73 0.61
Over 3 years 112,937,801.62 0.11 1,643,112.00
Total 107,167,841,700.08 100.00 90,547,363,466.08 100.00
5.17.2 Details of pre-collected property sales funds among the amounts received in advance
are as follows:
Item Balance as at
December 31, 2013
Balance as at
January 1, 2013
Estimated
completion date
Advance-sale
ratio (%)
The Guangzhou Poly
West Coast Residence
(including the
Guangzhou Poly Xinghai
Garden) 3,209,753,978.25 4,159,452,696.67 December 2014 92.54
The Guangzhou Poly
International Plaza 18,328,313.90 18,328,313.90 90.00
The Guangzhou Poly
Central Plaza 3,611,796.00 740,061,391.00 99.35
The Guangzhou Poly
Zhongchen Square 40,487,600.00 2,404,890.00 December 2014 99.57
The Guangzhou Poly
Xinyu Garden 2,004,247.75 542,247.75 100.00
The Guangzhou Poly
Forest Whisper Hills 52,281,004.36 46,711,004.36 100.00
The Guangzhou Poly
Ziwei Garden 4,298,349.00 5,349,149.00 99.00
The Guangzhou
Zengcheng Poly No. 1
Manor 155,000.00 255,000.00 100.00
The Guangzhou Poly V
Block 95,721,200.00 4,500,000.00 95.20
The Guangzhou Poly
Fragrant Snow-Capped
Mountains 190,238,317.86 92,623,780.86 100.00
The Guangzhou Poly
West Sub Bay 6,722,862.00 285,642.00 100.00
The Guangzhou Poly
Central Square 35,702,067.01 33,498,744.01 99.85
The Guangzhou Poly
Zhongyu Square 1,282,000.00 100.00
The Guangzhou Poly
Spring Plaza 12,886,844.00 1,744,844.00 100.00
The Guangzhou Poly
Zhongda Plaza 1,183,888,823.00 2,902,841,629.00 June 2014 97.54
The Guangzhou Poly
Center 1,618,627.18 4,582,178.18 100.00
Guangzhou Poly Garden
II 600,500.00 100.00
Guangzhou Poly Beijing
Plaza 817,369.00 16,992.00 100.00
POLY REAL ESTATE GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2013
Notes to Financial Statements Page 91
Item Balance as at
December 31, 2013
Balance as at
January 1, 2013
Estimated
completion date
Advance-sale
ratio (%)
The Guangzhou Poly
World Trade Center 1,500,000.00 81,480,736.83 December 2015 98.23
The Guangzhou Poly
Manor 2010 139,817.00 535,239.00 100.00
The Guangzhou Poly
Champagne Garden 20,000.00 2,415,911.00 100.00
The Guangzhou Poly
Champaign Mansion 810,538.67 529,543,128.67 98.58
The Guangzhou Poly
Park 3,300,814,240.00 1,558,825,194.90 December 2015 95.06
The Guangzhou Poly
Luokewei Square 288,279,236.00 1,355,246,051.18 December 2015 74.05
The Guangzhou
Zengcheng Poly
Dongjiang Capital 860,644,956.60 1,362,816,125.00 December 2015 77.94
The Guangzhou Bao Li
Linhai Hills 36,200,290.33 15,232,305.60 100.00
Guangzhou Poly Lu
Court 300,000.00 300,000.00 100.00
The Poly Guangzhou
Baiyun Hills 419,451.00 419,451.00 100.00
The Guangzhou Poly
Cotton Tree Garden 124,015.00 68,000.00 100.00
The Guangzhou Poly Lily
Garden II 5,398,848.00 100.00
The Guangzhou Poly
Seine Villa (The former
Fangcun G Land Parcel) 1,447,999,702.00 83,715,379.00 October 2015 91.58
The Guangzhou Poly
Tianyue Project 9,409,408,151.24 4,125,675,949.77 December 2015 88.59
The Guangzhou Poly
Yunxi (The former
Baiyun New Town
Project ) 830,897,374.50 June 2015 55.42
The Guangzhou Poly
Daduhui (the former
Panyu Hanxi Village
Project) 54,207,884.00 December 2017
The Zhongshan Poly
International Plaza 632,540,465.00 439,624,998.00 December 2016 80.46
The Zhongshan Poly
Spring Plaza 37,192,650.00 37,068,359.00 December 2016 52.67
The Dongguan Poly Red
Coral 1,192,014,348.00 921,528,801.00 December 2014 94.93
Dongguan Poly Forest
Whisper (the former
Zhangmutou Project) 431,413,534.00 December 2016 72.31
The Zhuhai Poly
Champagne International 845,424,574.50 541,069,805.00 August 2015 89.34
The Nanhai Poly Garden 2,167,555.08 13,126,305.08 100.00
The Shunde Poly Lily
Garden 6,821,294.00 3,034,019.00 100.00
The Foshan Poly No.1 on
the Bund 172,617,903.00 149,993,339.00 December 2014 84.14
The Foshan Poly East
Bay I 1,650,097,248.00 924,529,439.00 December 2016 94.52
POLY REAL ESTATE GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2013
Notes to Financial Statements Page 92
Item Balance as at
December 31, 2013
Balance as at
January 1, 2013
Estimated
completion date
Advance-sale
ratio (%)
The Foshan Poly East
Bay II 961,151,952.00 2,316,416,729.00 December 2015 80.49
The Foshan Poly
Champagne Garden 420,163,704.64 878,931,237.68 96.07
The Foshan Poly Donghu
Forest Whisper 526,233,675.00 1,008,195,643.00 December 2014 90.27
The Nanhai Poly Water
City 147,750.00 303,752.11 100.00
The Foshan Poly Central
Plaza 1,429,880,237.00 926,340,456.00 June 2015 88.43
The Nanhai Poly
Constellation 1,836,250.00 100.00
The Foshan Poly Manor 1,402,343,214.00 214,347,721.00 December 2015 93.36
The Foshan Poly Purple
Mountain Garden 417,210,259.00 June 2015 78.70
The Foshan Poly Lafei 221,483,147.00 December 2014 81.30
The Foshan Poly
Dongbin Garden (the
former New Town Project 978,974,337.00 December 2015 76.72
The Foshan Poly Seattle
(the former Sanshan
Avenue Project) 140,560,332.00 December 2017 70.76
The Jiangmen Poly
Daduhui (the Binjiang
New Area Project) 320,323,544.00 December 2020 84.79
The Qingyuan Poly
Garden (the former
Beijiang New Town
Project) 18,142,826.00 December 2020 45.05
The Wuhan Poly Garden 1,435,978.80 2,407,714.70 100.00
The Wuhan Poly Twelve
Oaks Manor 37,202,623.00 47,840,392.00 95.97
The Wuhan Poly Xinyu 291,123,272.00 146,475,711.00 June 2014 99.45
The Wuhan Poly Dreams
City 47,875,618.00 104,667,504.00 December 2015 90.99
The Wuhan Poly
Mayflower 410,366,625.00 621,795,315.00 December 2014 98.30
The Wuhan Poly Lafei 2,644,493.00 282,559,308.00 96.71
The Wuhan Poly Mahu
Project 1,532,573,279.85 839,401,633.00 June 2015 96.53
The Wuhan Poly
Champagne International 447,459,061.00 1,046,126,764.00 December 2014 81.43
The Wuhan Poly Central
Residence 706,376,080.00 555,790,446.00 June 2015 94.73
The Wuhan Poly Haiyu 228,300.00 100.00
The Wuhan Poly Park 429,782,451.00 380,729,776.00 June 2016 88.76
The Wuhan Poly
Guanshan Village Project 937,495,204.00 December 2017 75.84
The Huanggang Poly No.
1 Manor 985,014.37 304,292,328.37 97.82
The Changsha Poly
Garden I 20,697.00 4,821,081.71 99.24
The Changsha Poly
Garden II 927,303.92 2,742,963.00 99.85
The Changsha Poly Lugu
Forest Whisper 190,254,249.54 740,131,842.80 December 2015 88.39
POLY REAL ESTATE GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2013
Notes to Financial Statements Page 93
Item Balance as at
December 31, 2013
Balance as at
January 1, 2013
Estimated
completion date
Advance-sale
ratio (%)
The Changsha Poly
Langzhong Peak Cloud
Villa 7,528,528.55 38,921,539.55 98.55
The Changsha Poly
International Plaza 1,176,671,639.00 1,629,886,322.70 December 2014 85.66
Changsha Poly West
Coast (the former
Binjiang B7 Project) 204,478,509.00 December 2017 52.29
Changsha Poly
Champagne International
(the former Tianjiao
Project) 65,620,619.00 December 2020 74.95
The Hunan Poly
Dongting East Coast 10,638.26 10,638.26 100.00
Chenzhou Poly
Suxianlinyu (the former
Suxianling Project) 243,457,123.00 June 2016 56.25
The Shenyang Poly
Mayflower 501,745,100.00 439,713,981.00 June 2014 89.40
The Shenyang Poly Xihu
Forest Whisper 345,386,771.00 442,000,382.38 December 2015 89.67
The Shenyang Poly
Garden 563,941.69 623,779.69 96.72
The Shenyang Begonia
Garden 64,000.00 120,000.00 98.62
The Shenyang Poly
Shanglin Bay 6,047,997.00 136,033,110.40 98.03
The Shenyang Poly
Twelve Oaks Manor 32,975,522.00 13,029,506.00 December 2014 87.35
The Shenyang Poly
Xinyu Garden 161,892,151.00 334,837,768.00 December 2015 98.19
The Shenyang Poly
Cambridge Residence 7,463,068.00 227,154,660.40 47.08
Shenyang Poly
Champagne Garden 471,802,393.00 December 2017 72.76
The Shenyang Poly
Jasmine Mansion (the
former Manrong Project)
10,482,892.00 December 2016 31.77
The Yingkou Poly
Champagne Garden 64,411,079.00 84,883,906.00 June 2016 71.27
Tonghua Poly Luo
Lanxiang Valley (the
former Jilin Tonghua
Project) 1,150,000.00 December 2016
The Dalian Paul West
Mountains Forest
Whisper 1,299,432,530.00 513,519,701.00 November 2015 67.77
The Dalian Poly West
Coast 5,933,774.00 24,366,664.00 76.70
The Poly Jasmine Manor 1,345,552.00 159,234,077.80 100.00
The Beijing Poly
Longshang 3,132,569.00 33,406,053.00 100.00
The Beijing Poly
Champagne Garden 50,000.00 50,000.00 100.00
The Beokomg Poly Lily
Garden 111,332.00 113,755.00 100.00
POLY REAL ESTATE GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2013
Notes to Financial Statements Page 94
Item Balance as at
December 31, 2013
Balance as at
January 1, 2013
Estimated
completion date
Advance-sale
ratio (%)
The Beijing Poly Jia
Garden 1,769,033.79 21,400,538.23 99.27
The Beijing Poly West
Mountains Forest
Whisper 2,788,219.24 7,263,279.24 December 2014 99.15
The Beijing Poly Garden 9,996,113.00 28,996,113.00 100.00
The Beijing Poly
Dongjun 613,208,016.36 2,786,736,924.36 December 2014 97.14
The Beijing Poly Central
Park 3,506,692,102.66 5,401,640,484.00 December 2015 98.66
The Beijing Poly Luo
Lanxiang Valley 70,000.00 1,403,478,645.00 100.00
The Beijing Poly Spring
Plaza 3,109,765,245.00 489,567,749.00 March 2015 100.00
The Beijing Poly
Fanghua Jiayuan 86,431,569.00 June 2014 100.00
Beijing Poly Hyde Park
(the former Jimenqiao
Project) 23,400,000.00 December 2015
Beijing Poly Xiyue
Spring (the former
biomedical base project) 356,753,475.00 December 2015 99.86
Beijing Poly Fengdan I
(the former Yizhuang
Project) 1,330,638,576.00 December 2015 99.94
The Shijiazhuang Poly
Garden 1,882,889,989.00 513,247,186.00 December 2017 97.38
The Chongqing Poly
Champagne Garden 75,211,320.19 71,631,987.19 December 2014 99.73
The Chongqing Poly
Garden 2,479,417.10 20,867,295.71 December 2014 99.95
The Chongqing Poly
Cambridge 1,285,770.06 629,946.06 99.49
The Chongqing Poly
Xinyu 270,703.60 322,319.60 100.00
The Chongqing Guobin
Shangyuan 19,004.24 130,004.24 99.80
The Chongqing Poly
River Pearl 1,139,034,202.00 1,490,302,602.73 December 2015 83.57
The Chongqing Poly
Hornsey Garden 1,217,016.00 1,398,843,441.94 99.59
The Chongqing Poly
Harbor International 2,166,123.00 7,279,493.00 92.91
The Chongqing Poly
Kauai Island 47,649.00 658,998,434.00 99.79
The Chongqing Poly
Coconut Peninsula 853,136.00 522,538,395.67 99.75
The Chongqing Poly
Flowers in City Center 1,800,795,453.00 686,914,989.00 December 2015 84.82
Chongqing Poly
Aishangli 1,089,936,091.00 June 2017 89.30
Chongqing Poly Linyuxi
(the former Banan
Lijiatuo Project) 150,553,807.00 December 2015 83.34
The Nanchang Poly
Mingya European 57,783,822.38 66,336,527.38 December 2014 92.00
POLY REAL ESTATE GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2013
Notes to Financial Statements Page 95
Item Balance as at
December 31, 2013
Balance as at
January 1, 2013
Estimated
completion date
Advance-sale
ratio (%)
The Nanchang Poly
International Garden in
the East Bay 14,026,558.00 457,616,332.00 93.71
The Nanchang Poly
International Garden
Mid-levels 368,137,775.53 27,643,342.04 December 2015 70.39
The Nanchang Poly
Champagne International 1,400,649,067.00 987,561,563.00 December 2015 92.54
Nanchang Poly Lily
Garden 75,313,771.00 December 2015
The Shanghai Poly Leaf
Whisper 1,493,525,693.00 3,838,273,996.71 99.09
The Shanghai Poly
Twelve Oaks Manor 55,834.57 59,962.76 100.00
The Shanghai West Sub
Bay 5,029,802.00 99.25
The Shanghai Poly
Mayflower 80,287,263.11 5,151,319.11 96.06
The Shanghai Linyuxi 795,924.40 795,924.40 99.67
The Shanghai Poly Leaf
of Shanghai 64,560,653.56 77,674,361.39 94.31
The Shanghai Poly
Phoenix Tree 34,210,974.49 200,149,654.00 74.29
The Shanghai Poly
Jasmine Mansion 1,011,898,924.00 2,127,132,962.00 December 2015 92.45
The Shanghai Poly
Leaves of Forest 1,512,362,491.00 56,311,214.00 December 2015 84.40
The Shanghai Poly
Maqiao
Jingcheng-Ziyuan 183,931,624.00 67,640,076.00 October 2014 100.00
The Shanghai Poly
Champagne Garden 480,946,087.00 December 2015 81.38
The Shanghai Poly
International Center 31,760,204.00 December 2015 11.11
The Shanghai Poly Blue
Forest Whisper 263,709,231.00 December 2015 72.93
The Shanghai Poly
Maoqiao
Jingcheng·Yayuan 54,635,569.84 December 2014 24.38
Shanghai Lvcheng
Yuyuan (the former
Senglan Waigaoqiao
Project) 718,069,065.00 June 2016 64.56
The Nantong Poly
Champagne International 38,512,139.00 392,369,809.00 December 2015 60.01
The Jiaxing Poly
Xitangyue 296,776,817.00 41,788,935.00 December 2015 65.08
The Baotou Poly Garden 300,034,992.12 5,330,329.88 December 2015 98.57
The Baotou Poly Lafei
Mansion 164,989,876.00 1,568,975,862.24 98.46
The Baotou Poly Nanhai
Park 329,038,121.00 126,945,341.00 June 2015 95.50
The Baotou Poly
Champagne Garden 625,436,977.00 276,062,250.00 December 2014 94.90
The Changchun Poly Luo
Lanxiang Valley 31,533,638.39 29,393,779.39 December 2014 84.47
POLY REAL ESTATE GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2013
Notes to Financial Statements Page 96
Item Balance as at
December 31, 2013
Balance as at
January 1, 2013
Estimated
completion date
Advance-sale
ratio (%)
The Changchun Poly Lily
Hong Bay 3,621,480.98 706,483,309.00 93.83
The Changchun Poly
Forest Whisper 329,748,442.93 233,127,877.03 December 2015 90.29
The Changchun Poly
Champagne Garden 234,560,771.52 408,315,416.00 December 2014 94.47
The Changchun Poly
Jingyue Project 8,050,000.00 8,050,000.00 December 2015
The Changchun Poly
Lafei Mansion 709,723,831.67 83,028,567.78 December 2015 78.78
Changchun Poly Spring
Plaza (the former Pingxin
Road Project) 67,426,769.25 June 2016 54.30
The Chengdu Poly Park
198 1,010,745,877.00 299,781,064.00 December 2014 88.08
The Chengdu Poly
Garden 809,593,680.00 1,131,877,430.00 December 2014 82.54
The Chengdu Poly Gold
Champagne 254,298.00 269,298.00 81.87
Chengdu Poly Xinyu
Garden 1,125,944,539.00 1,184,547,466.00 June 2015 84.54
Chengdu Poly Center 1,675,361.50 2,385,361.50 91.35
The Chengdu Poly
Champagne International 467,525,974.00 1,494,092,562.00 June 2014 83.92
The Chengdu Poly
Beisen Mansion 1,389,254.00 145,643,541.00 53.89
Chengdu Poly Xiangxue
Garden (the former
Xinyu Phase IV) 195,984,502.00 1,050,084,724.00 82.39
The Chengdu Poly
Cambridge 104,962,339.00 393,021,155.00 December 2014 66.01
The Chengdu Poly City 1,418,819,669.00 1,028,060,486.00 December 2015 83.07
The Chengdu Poly Stone
Elephant Lake Project 217,352,520.00 421,570,162.00 December 2015 93.34
The Chengdu Poly Lily
Mansion 1,320,575,978.00 159,563,065.00 December 2015 67.68
The Chengdu Poly
Champaign Guanghua 1,311,788,468.00 236,531,689.00 December 2014 82.31
The Chengdu Poly
Leaves Whisper 441,477,199.00 June 2017 81.06
Chengdu Poly Phoenix
Tree 597,334,971.00 December 2015 84.72
Chengdu Poly Sprint
Flowers Whisper (the
former Longquan District
Project) 695,554,171.00 December 2017 85.54
Chengdu Poly Rose
Whisper (the former
Longquanyi District
Project) 558,844,791.00 December 2016 80.44
The Deyang Poly
International City
(including Phase I and II) 353,893,037.00 866,234,166.00 December 2016 66.77
Suining Poly
Jiangyucheng (the former
Dongxing District
Project) 338,119,755.00 December 2016 85.17
POLY REAL ESTATE GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2013
Notes to Financial Statements Page 97
Item Balance as at
December 31, 2013
Balance as at
January 1, 2013
Estimated
completion date
Advance-sale
ratio (%)
The Hangzhou Poly Jiang
Yu Hai 16,071,104.01 1,337,555,595.01 80.71
The Hangzhou Poly East
Bay 174,008,239.85 1,836,555,152.62 95.69
The Hangzhou Poly
Champagne International 26,931,721.00 817,973,910.00 84.60
The Hangzhou Poly Rose
Bay 291,992,595.00 20,952,097.00 December 2014 66.67
The Hangzhou Poly
Joffre County 1,766,249,519.00 860,030,212.50 December 2014 75.46
The Hangzhou Poly City
Green 557,818,755.00 2,320,000.00 December 2014 76.18
Hangzhou Poly Phoenix
Tree (the former Pufu
Project) 64,845,734.00 December 2015 55.56
Zhejiang Poly Luo
Lanxiang Valley (the
former Changmu Project) 87,214,472.00 December 2016 71.73
The Shaoxing Poly
Lakeside Reverie 28,310,056.00 December 2015 37.09
The Ningbo Poly
Lakeside World 2,083,186,059.00 1,079,696,372.00 December 2016 88.13
The Tianjin Poly
Champagne International 8,212,484.37 179,796,628.37 85.46
The Tianjin Poly Rose
Bay 2,118,632,755.00 1,356,957,632.95 March 2015 92.09
The Tianjin Poly River
Hymns 11,619,441.50 8,599,623.62 84.44
The Tianjin Poly Begonia
Bay 649,487,720.56 369,600,754.06 June 2014 88.67
The Tianjin Poly Horizon
Capital 2,829,238,051.00 814,588,812.00 September 2015 59.40
Tianjin Poly Chanson
Lake (the former
Xiazhuzhuang Project) 82,991,359.00 June 2016 70.78
The Dandong Poly
Jinjiang Forest Whisper 75,891,711.00 173,938,395.98 December 2015 90.13
The Qingdao Poly Lily
Garden 334,231.55 1,955,211.55 97.66
The Qingdao Poly Lily
Garden West End 4,514,082.40 24,047,420.54 94.63
The Qingdao Paul
Liyuanli 5,278,487.47 557,525,497.48 December 2015 91.26
The Qingdao Poly
Haishang Luolan 2,402,920,839.30 1,766,311,310.00 December 2015 88.43
The Qingdao Poly
Champagne International 314,237,426.00 June 2015 92.87
Qingdao Poly Leaf
Mansion (Shuangfeng
Project) 728,536,107.00 December 2016 95.58
The Yang Jiang Poly Luo
Lanxiang Valley 677,000.00 30,934,593.34 December 2014 86.54
The Yang Jiang Poly
Silver Beach 1,160,480,730.80 1,217,396,217.00 December 2015 78.38
The Nanjing Poly
Amethyst Mountain 754,814,070.99 2,032,844,498.23 December 2014 92.05
POLY REAL ESTATE GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2013
Notes to Financial Statements Page 98
Item Balance as at
December 31, 2013
Balance as at
January 1, 2013
Estimated
completion date
Advance-sale
ratio (%)
The Nanjing Poly
Champagne International 17,088,886.46 1,315,473,494.46 92.67
The Nanjing Poly Luo
Lanxiang Valley 1,256,944,062.00 992,471,196.00 December 2014 99.50
The Nanjing Poly
Phoenix Tree 2,062,766,760.00 670,001,993.00 December 2014 98.92
Nanjing Poly Zijing
Mansion (the former
Jiangxinzhou Project) 6,500,000.00 December 2015 33.00
Nanjing Poly Luolan
Spring (the former
Xianlin Lake Northwest
Parcel Project) 616,056,756.00 June 2015 86.04
Nanjing Poly Central
Park (the former Tongren
Street Project) 193,634,786.00 June 2017 66.26
The Wuxi Poly
Champagne International 297,711,883.01 5,400,130.01 June 2015 76.39
Wuxi Poly Central Park
(the former Pegasus
Textile Project) 139,295,972.00 December 2015 57.23
The Changzhou Poly
Park 29,030,821.00 December 2015 32.64
The Lianyungang Poly
Mayflower 176,435,607.00 106,827,201.20 December 2015 58.82
The Zhengzhou Poly Lily
Garden 1,294,406,586.00 586,331,416.00 December 2014 98.93
The Hefei Poly
Champagne International 2,490,377,745.00 877,702,309.00 December 2015 94.60
The Hefei Poly Lafei
Mansion 1,239,097,860.54 472,577,183.00 July 2015 89.54
Hefei Poly Mayflower
(the former Binhu
BH2013-1 Project) 223,003,422.00 June 2018 71.81
Hefei Poly Poly Dongjun
(the former Yaohai E1301
Project) 143,891,324.00 June 2018 20.47
Hefei Poly Phoenix Tree
(the former High-tech
Zone KMB-1 Project) 87,054,084.00 December 2016 81.24
Xi'an Poly Lafei Mansion 252,080,668.00 December 2016 59.95
Xi'an Poly Spring Plaza
(the former Qujiang
Project) 17,105,033.00 June 2016 43.16
Xi'an Poly Gold
Champagne (the former
Sanqiao project) 75,284,337.00 June 2016 28.17
Total 106,560,631,282.14 89,902,401,620.81
Note: Amounts received in advance were mainly pre-collected property funds which do not
meet the criteria for revenue recognition. The pre-sale ratio is calculated based on
properties satisfying the sales conditions, excluding the parts undeveloped or in the process
of development but not satisfying the sales conditions.
POLY REAL ESTATE GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2013
Notes to Financial Statements Page 99
5.17.3 Of the balance of other amounts received in advance as at December 31, 2013, no
amounts were received from shareholders holding more than 5% (inclusive) voting
shares of the Company.
5.17.4 Accounts received in advance from related parties
Name of related companies Balance as at December 31,
2013
Balance as at January 1,
2013
1. Shengshi Xinhe 47,735,150.30 65,424,002.73
2. Zhongding Fuzhou 37,806,254.97 45,588,221.32
3. Zhongliansheng Fujian 380,158.00 27,402,595.24
4. Nanjing Xueshang 15,530,516.63
Total 101,452,079.90 138,414,819.29
5.17.5 Amounts received in advance with aging of over one year were mainly pre-collected
property sales funds that have not been settled.
5.18 Employee compensation payable
Item Balance as at
January 1, 2013 Increase in 2013 Decrease in 2013
Balance as at
December 31, 2013
1. Salary, bonus, allowance and
subsidy 41,860,024.75 1,659,504,287.25 1,653,134,632.98 48,229,679.02
2. Employee welfare 89,198,468.42 89,198,468.42 -
3. Social insurance expense 28,761,519.77 194,690,843.17 171,333,130.64 52,119,232.30
Including: (1) medical insurance
expenses 478,470.33 48,811,595.48 48,702,977.15 587,088.66
(2) Basic endowment insurance
expenses 1,087,192.43 106,082,688.70 105,747,492.11 1,422,389.02
(3) Annuity 27,079,864.04 23,164,249.92 275,059.79 49,969,054.17
(4) Unemployment insurance
expenses 61,053.96 8,380,261.57 8,367,257.49 74,058.04
(5) Work injury insurance expenses 28,604.76 4,121,627.53 4,114,768.14 35,464.15
(6) Maternity insurance expenses 26,334.25 4,130,419.97 4,125,575.96 31,178.26
4. Housing provident funds 1,256,574.02 56,537,921.66 57,108,072.76 686,422.92
5. Labor union expenditure and
employee education funds 19,709,840.10 21,687,587.63 17,890,252.45 23,507,175.28
6. Non-monetary welfare
7. Compensation for cancellation of
labor relationship 595,428.22 595,428.22
8. Others 2,534,347.71 3,492,504.54 5,935,919.43 90,932.82
Including: cash-settled share-based
payment
Total 94,122,306.35 2,025,707,040.89 1,995,195,904.90 124,633,442.34
Of employee compensation payable as at December 31, 2013, no amount was overly due behind
payment schedules.
Except for share-based payments as detailed in Note 8, there was no non-monetary welfare
provided to employees in 2013.
The labor union expenditure and employee education funds incurred in 2013 amounted to RMB
21,652,787.63, and the compensation for cancellation of labor relationship in 2013 amounted to
RMB 595,428.22.
The salary, bonus, allowance payable among employee compensation payables as at December 31,
2013 are the accrued salary and bonus which will be paid in 2014.
POLY REAL ESTATE GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2013
Notes to Financial Statements Page 100
5.19 Taxes and surcharges payable
Item Balance as at
December 31, 2013
Balance as at
January 1, 2013
Value added tax 213,644.45 1,300,648.67
Consumption tax
Business tax -4,270,380,924.67 -3,429,768,315.73
Enterprise income tax -444,793,367.60 326,484,258.55
Individual income tax 9,335,867.53 2,220,718.82
Urban maintenance and construction tax -287,812,704.36 -234,634,857.38
Property tax 10,322,911.99 3,703,260.00
Land value increment tax -1,052,729,904.88 -632,872,772.07
Educational surtax -127,547,427.02 -101,010,857.79
Other taxes -55,133,292.43 -20,019,716.67
Total -6,218,525,196.99 -4,084,597,633.60
5.20 Interests payable
Item Balance as at
December 31, 2013
Balance as at
January 1, 2013
Corporate bond interest 55,170,317.97 143,490,410.96
Interest on bank borrowings 7,651,431.98
Total 55,170,317.97 151,141,842.94
5.21 Dividends payable
Company name Balance as at
December 31, 2013
Balance as at
January 1, 2013
Reason for non-payment for
over one year
Guangdong Fengwei
Real Estate Development
Co., Ltd. 1,142,606.00 1,142,606.00
The dividends were retained as
working capital for project.
Shenzhen Youhe Property
Co., Ltd. 3,670,020.00 3,670,020.00
The dividends were retained as
working capital for project.
Guangzhou Guangye
Project Management Co.,
Ltd. 1,345,800.00
Total 4,812,626.00 6,158,426.00
5.22 Other payables
5.22.1 Other payables
Item
Balance as at December 31, 2013 Balance as at January 1, 2013
Amount Proportion
(%) Amount
Proportion
(%)
Within 1 year 20,879,653,642.87 80.82 10,277,025,747.35 67.20
1-2 years 3,732,882,981.23 14.45 3,766,784,141.86 24.63
2-3 years 325,197,004.05 1.26 611,226,123.93 4.00
Over 3 years 897,462,164.40 3.47 636,991,618.25 4.17
Total 25,835,195,792.55 100.00 15,292,027,631.39 100.00
Note: Other payables mainly include funds paid by minority shareholders, guarantee
deposit, collection of property owner’s taxes and surcharges and others.
POLY REAL ESTATE GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2013
Notes to Financial Statements Page 101
5.22.2 Amount due to shareholders holding more than 5% (inclusive) voting shares of the
Company as at December 31, 2013
Company name Balance as at
December 31, 2013
Balance as at
January 1, 2013
1. Poly Group 1,555,499,150.00 1,565,797,315.07
2. Shanghai Sanli Industrial Co., Ltd.
(“Shanghai Sanli”) 41,589,979.17 43,094,729.17
Total 1,597,089,129.17 1,608,892,044.24
5.22.3 Amount due to related parties as at December 31, 2013
Company name Balance as at
December 31, 2013
Balance as at
January 1, 2013
1. China Poly Group Corporation ( “Poly Group”) 1,555,499,150.00 1,565,797,315.07
2. Foshan Yongsheng Investment Co., Ltd. (“Foshan
Yongsheng”) 1,274,843,500.00
3.Zhongliansheng Fujian 199,701,468.97
4. Foshan Shunde Shenghong Investment Co., Ltd
(“Shunde Shenghong”) 220,040,400.00
5. Foshan Shengxin Investment Co., Ltd (“Foshan
Shunxin”) 187,500,000.00
6.Shanghai Sanli 41,589,979.17 43,094,729.17
7.ECIC Fund Management 38,195,186.90
8.ECIC Limited Partnership 1,011,003,349.32
9.Shengshi Xinhe 1,415,116.63
10. Munan Qiushi 17,000,000.00
11.Zhongding Fuzhou 16,793,901.68
12. Jiangmen Xinbao Kangsheng Culture and Sport
Investment Co., Ltd. (“Xinbao Kangsheng”) 4,000,000.00
Total 3,516,968,399.82 2,659,505,697.09
5.22.4 Other payables with significant amount and aging of over one year
Other payables with significant amount and aging of over one year are mainly contribution
by partners of subsidiaries that are put into the real estate projects with a long development
cycle.
5.22.5 Other payables with significant amount
Company name Balance as at
December 31, 2013 Description of content Remark
1. Foshan Xincheng
Development & Construction
Co., Ltd.
2,335,830,221.00 Payment for corporation
2. Changsha Wanke West Coast
Land Co., Ltd.
1,714,030,000.00 Equal contribution by
partner
3. Poly Group 1,555,499,150.00 Financial support, interest
and security cost 4. Foshan Yongsheng 1,274,843,500.00 Equal contribution by
partner 5. Foshan ECIC Dongxin
Equity Investment Limited
Partnership (Limited
Partnership)
1,105,180,300.00 Equal contribution by
partner
Total 7,985,383,171.00
POLY REAL ESTATE GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2013
Notes to Financial Statements Page 102
5.23 Non-current liabilities maturing within one year
5.23.1 Details of non-current liabilities maturing within one year:
Item Balance as at
December 31, 2013
Balance as at
January 1, 2013
Long-term borrowing maturing within one year 19,624,724,743.00 20,030,215,667.83
Bonds payable maturing within one year 4,293,813,739.56
Long-term payables maturing within one year
Total 19,624,724,743.00 24,324,029,407.39
5.23.2 Long-term borrowing maturing within one year
(1) Long-term borrowing maturing within one year
Item Balance as at
December 31, 2013
Balance as at
January 1, 2013
Pledged borrowings 800,000,000.00 80,993,227.83
Mortgaged borrowings 2,808,764,740.00 1,892,594,740.00
Guaranteed borrowings 14,015,960,003.00 15,913,627,700.00
Credit borrowings 2,000,000,000.00 2,143,000,000.00
Total 19,624,724,743.00 20,030,215,667.83
Note: See Notes 9.1 to 9.3 for details of guaranteed borrowing. Mortgaged borrowings
mainly use inventories and investment properties as mortgage. See Note 9.6 for details
of mortgaged assets. Pledged borrowings were obtained by the pledge of equity of the
Company’s subsidiary, South China Holdings.
(2) Long-term borrowings maturing within one year as at December 31, 2013 contains no
overdue borrowings with extension.
POLY REAL ESTATE GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2013
Notes to Financial Statements Page 103
(3) Top five in amount of long-term borrowings maturing within one year:
Lender Starting date
of borrowing
Ending date of
borrowing Currency
Interest
rate (%)
Balance as at
December 31, 2013
Balance as at
January 1, 2013
Amount in
foreign
currencies
Amount in RMB
Amount
in foreign
currencies
Amount in RMB
Poly Finance 2012-04-20 2012-04-20 RMB 11.54 1,985,000,000.00 1,995,000,000.00
Industrial Bank, Foshan Branch 2012-09-26 2014-03-25 RMB 7.07 800,000,000.00 800,000,000.00
Zijin Trust Co., Ltd. 2012-07-01 2014-07-12 RMB 9.10 800,000,000.00 800,000,000.00
Postal Savings Bank of China Co., Ltd 2012-06-01 2014-11-30 RMB 7.257 600,000,000.00 650,000,000.00
China Construction Bank, Beijing Poly
Sub-branch 2011-07-29 2014-07-28 RMB 6.212 572,000,000.00
Total 4,757,000,000.00 4,245,000,000.00
(4) Long-term borrowings maturing within one year contain no overdue borrowings.
5.23.3 Bonds payable maturing within one year
None.
5.24 Long-term borrowing
5.24.1 Classification of Long-term borrowing:
Category of borrowing Balance as at
December 31, 2013
Balance as at
January 1, 2013
Pledged borrowings 800,000,000.00
Mortgaged borrowings 15,105,487,631.37 13,619,963,333.13
Guaranteed borrowings 57,814,312,947.00 38,265,450,000.00
Credit borrowings 2,181,500,000.00 3,165,000,000.00
Total 75,101,300,578.37 55,850,413,333.13
Note: See Notes 9.1 to 9.3 for details of guaranteed borrowing. Mortgaged borrowings mainly use inventories and investment properties as
mortgage. See Note 9.6 for details of mortgaged assets. Pledged borrowings were obtained by the pledge of equity of the Company’s subsidiary,
South China Holdings.
POLY REAL ESTATE GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2013
Notes to Financial Statements Page 104
5.24.2 Top five long-term borrowing by amount
Lender Starting date of
borrowing
Ending date of
borrowing Currency
Interest
rate (%)
Balance as at December 31,
2013 Balance as at January 1, 2013
Amount in
foreign
currencies
Amount in RMB
Amount
in foreign
currencies
Amount in RMB
Shanghai Pudong
Development Bank, Zhichun
Road Sub-branch
2013-08-08 2016-07-10 RMB 6.15 1,800,000,000.00
National Development Bank,
Guangdong Branch
2011-09-09 2016-09-08 RMB 6.72 1,423,000,000.00 1,623,000,000.00
China Agricultural Bank,
Beijing Economic and
Technological Development
Zone Sub-branch
2013-07-25 2016-07-16 RMB 6.15
1,200,000,000.00
China Contraction Bank,
Beijing Poly Sub-branch
2013-08-23 2016-08-22 RMB 6.15 1,200,000,000.00
China CITIC Bank,
Guangzhou Huacheng
Sub-branch
2013-03-28 2016-03-28 RMB 6.765 1,039,000,000.00 -
Total 6,662,000,000.00 1,623,000,000.00
5.25 Bonds payable
Name of
bond Par value(USD)
Date of
issuance
Bond
period
Actual amount of
issuance
Interest payable
as at
January 1, 2013
Accrued interest
in 2013
Interest paid
in 2013
Interest payable
as at
December 31, 2013
Balance as at
December 31,
2013
Corporate
bonds 500,000,000.00 2013-08-06 5 years 3,057,319,643.00 55,170,317.97 55,170,317.97 2,989,548,695.82
Total 500,000,000.00 3,057,319,643.00 55,170,317.97 55,170,317.97 2,989,548,695.82
In August 2013, Hengli (Hong Kong) Real Estate Limited, a wholly owned subsidiary of the Company, issued USD 500 million bonds due August 2018
with fixed interests through its wholly owned subsidiary, Poly Real Estate Finance Ltd. The coupon is 4.50% and paid semi-annually.
POLY REAL ESTATE GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2013
Notes to Financial Statements Page 105
5.26 Share capital
Item Balance as at
January 1, 2013
Increase or decrease (+, -) in change in 2013 Balance as at
December 31, 2013
New shares
issued Shares presented
Shares transferred from
accumulated funds Others Sub-total
1. Shares with restrictive conditions
(1) State shareholding
(2) State-owned legal person
shareholding
(3) Other domestic capital
shareholding
Including:
Domestic legal person shareholding
Domestic natural person shareholding
(4) Foreign capital shareholding
Including:
Overseas legal person shareholding
Overseas natural person shareholding
Total of shares with restrictive
conditions
2. Circulating shares without
restrictive conditions
(1) RMB ordinary shares 7,137,994,391.00 7,137,994,391.00
(2) Foreign shares listed in China
(3) Foreign shares listed overseas
(4) Others
Sub-total of circulating shares without
restrictive conditions 7,137,994,391.00 7,137,994,391.00
Total 7,137,994,391.00 7,137,994,391.00
POLY REAL ESTATE GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2013
Notes to Financial Statements Page 106
5.27 Capital reserves
Item Balance as at
January 1, 2013 Increase in 2013 Decrease in 2013
Balance as at
December 31, 2013
Capital premium 10,646,312,357.69 10,646,312,357.69
Fair value of equity
instrument of equity-settled
share-based payment 69,360,776.18 101,881,633.16 171,242,409.34
Other capital reserves 61,252,338.76 85,090,698.87 181,217.55 146,161,820.08
Total 10,776,925,472.63 186,972,332.03 181,217.55 10,963,716,587.11
Note 1: The Company completed the grant of share option on May 4, 2012. At each of balance
sheet date during the waiting period, the Company calculates and recognizes administrative
expenses for the current period based on estimated quantity of options to be exercised and the fair
value of each share option as at grant date, and records them in capital reserves.
Note 2: Changes in other capital reserves in 2013 were attributable to the purchase of minority
interests by subsidiaries and increase of capital of subsidiaries by minority shareholders.
5.28 Surplus reserves
Item Balance as at
January 1, 2013 Increase in 2013 Decrease in 2013
Balance as at
December 31, 2013
Statutory surplus
reserve 811,701,777.25 289,215,382.77 1,100,917,160.02
Discretionary
surplus reserve
Total 811,701,777.25 289,215,382.77 1,100,917,160.02
5.29 Undistributed profits
Item Amount Proportion of withdrawal or
distribution
Undistributed profits as at January 1, 2013 23,758,309,752.50
Plus: net profit attributable to owners of
parent company in 2013 10,747,161,554.27
Less: provision of statutory surplus reserves 289,215,382.77 10% of net profit of parent company
Provision of discretionary surplus reserve
Provision of reserve funds
Provision of enterprise expansion funds
Provision of bonus and welfare funds
Provision of general risk reserve
Ordinary share dividends payable 1,656,014,698.71
Ordinary share dividends transferred to share
capital
Undistributed profits as at December 31,
2013 32,560,241,225.29
Note: According to the resolution of 2012 annual general meeting and based on the total share
capital as at December 31, 2012, the Company distributed cash dividend of RMB 2.32 (including
tax) for every 10 shares. The total distributed in total amounted to RMB 1,656,014,698.71.
5.30 Revenue and cost of goods sold
5.30.1 Operating income and operating cost
Item Year 2013 Year 2012
Income from main operations 92,340,696,050.00 68,874,117,682.00
Income from other operations 14,828,145.85 31,639,028.27
Total operating income 92,355,524,195.85 68,905,756,710.27
Operating costs 62,655,215,219.51 43,972,081,799.46
POLY REAL ESTATE GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2013
Notes to Financial Statements Page 107
5.30.2 The presentation of main operations by industry is as follows:
Name of industry
Year 2013 Year 2012
Income from
main operations
Cost of
main operations
Income from
main operations
Cost of
main operations
Real estate sales 89,289,984,174.94 61,385,958,590.81 66,314,473,691.67 42,942,152,860.46
Others 3,050,711,875.06 1,268,926,832.33 2,559,643,990.33 1,014,054,169.37
Total 92,340,696,050.00 62,654,885,423.14 68,874,117,682.00 43,956,207,029.83
Note: Other income consists of income from building, decoration, rental, property
management, sales agency, exhibition, hotel, service charges and so on.
5.30.3 Main operations (by region)
Name of region Year 2013 Year 2012
Operating income Operating cost Operating income Operating cost
Guangdong, China 26,800,553,832.39 16,863,170,978.38 14,135,070,331.31 7,201,789,648.17
Beijing, China 10,378,851,673.83 7,498,871,459.12 4,677,116,144.50 2,995,412,434.03
Sichuan, China 8,677,435,508.23 5,538,541,499.39 9,542,275,136.19 6,410,040,747.26
Hubei, China 7,559,748,474.92 4,994,433,543.76 4,287,860,578.00 2,816,899,903.78
Shanghai, China 7,506,433,644.08 4,413,877,624.53 6,666,597,109.43 3,540,053,605.25
Chongqing, China 6,199,461,224.52 5,065,598,908.95 3,716,172,401.05 2,706,244,653.78
Hangzhou, China 4,789,935,016.48 3,665,185,054.38 2,095,383,351.85 1,182,524,986.87
Jiangsu, China 4,432,842,390.32 3,181,052,707.16 4,954,937,981.57 3,442,386,311.58
Liaoning, China 3,530,378,634.06 2,576,171,187.68 4,464,968,976.51 3,326,493,978.36
Hunan, China 2,817,439,525.65 1,624,315,634.50 2,176,847,904.18 1,435,929,119.97
Tianjin, China 2,035,534,401.34 1,643,444,223.88 4,785,651,029.60 3,897,069,171.27
Changchun, China 1,921,859,384.00 1,504,862,422.36 1,742,744,194.00 1,295,211,542.42
Qingdao, China 1,817,640,633.30 1,151,193,312.41 2,931,962,542.60 1,914,475,482.70
Nanchang, China 1,797,311,737.36 1,478,184,314.07 1,346,695,358.89 979,016,574.18
Baotou, China 1,559,807,420.52 1,015,496,451.37 1,349,834,642.32 812,658,870.21
Hefei, China 515,462,549.00 440,486,101.20
Total 92,340,696,050.00 62,654,885,423.14 68,874,117,682.00 43,956,207,029.83
5.30.4 Revenue from top five customers
Name of customer Total operating income Proportion in total operating
income of the Company (%)
Guangdong Material Industry (Group) Co., Ltd. 1,567,718,000.00 1.69
Guangzhou Automobile Group Co., Ltd. 1,318,672,000.00 1.43
Guangzhou Women and Children's Medical Center 144,815,696.00 0.16
Guangdong Wanlima Investment Industries Co. Ltd. 94,000,906.00 0.10
Guangzhou JSWB Furniture Purchasing Co., Ltd. 88,916,922.00 0.10
Total 3,214,123,524.00 3.48
5.31 Business tax and surcharges
Item Year 2013 Year 2012 Basis of tax assessment
Consumption tax
Business tax 4,916,544,870.48 3,767,947,299.83 3%, 5% or 20%
Urban maintenance and
construction tax 330,471,554.80 250,180,632.17 1%-7% of turnover tax
Educational surtax 150,139,572.78 120,643,612.57 3% of turnover tax
Resource tax 409,853.30 1,279,312.03
Land value increment tax 3,923,792,347.21 3,840,095,471.61 30%-60% of increment
Others 200,769,500.03 140,120,678.53
Total 9,522,127,698.60 8,120,267,006.74
POLY REAL ESTATE GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2013
Notes to Financial Statements Page 108
5.32 Selling expenses
Item Year 2013 Year 2012
Employee salaries and compensation 275,670,097.55 206,600,522.42
Advertising expenses 669,558,865.57 544,647,303.79
Sales agency fees 374,272,941.10 327,493,805.77
Sales site costs 253,591,103.31 145,863,802.19
Promotion expenses 291,580,939.99 211,439,110.72
Others 320,502,489.45 209,566,314.16
Total 2,185,176,436.97 1,645,610,859.05
5.33 Administrative expenses
Item Year 2013 Year 2012
Employee salaries and compensation 764,952,281.16 562,856,410.92
Travel expenses 75,493,296.74 61,172,479.61
Office and rental expenses 110,024,509.81 112,081,183.51
Taxes and surcharges 325,129,081.67 202,163,110.71
Depreciation expenses 93,413,379.15 91,695,686.48
Others 206,806,040.26 192,735,253.42
Total 1,575,818,588.79 1,222,704,124.65
5.34 Financial expenses
Category Year 2013 Year 2012
Interest expenses 1,039,984,211.01 795,679,045.47
Less: interest income 293,370,406.30 141,840,512.34
Losses due to foreign exchange 19,938,528.69 7,867,930.66
Less: gains due to foreign exchange 12,081,400.50 154,703.03
Other expenses 231,061,018.87 230,541,660.26
Total 985,531,951.77 892,093,421.02
5.35 Investment income
5.35.1 Details of investment income:
Item Year 2013 Year 2012
Long-term equity investment income calculated by cost
method 3,301,232.86 2,503,893.11
Long-term equity investment income calculated by
equity method 631,751,353.83 400,210,811.42
Investment income from disposal of long-term equity
investment 8,654,268.44
Investment income from held-for-trading financial assets
Investment income from held-to-maturity investment
Investment income from available-for-sale financial
assets
Investment income from disposal of held-for-trading
financial assets
Investment income from disposal of held-to-maturity
investment
Investment income from disposal of available-for-sale
financial assets
Others
Total 635,052,586.69 411,368,972.97
POLY REAL ESTATE GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2013
Notes to Financial Statements Page 109
5.35.2 Long-term equity investment income calculated by cost method
Investee Year 2013 Year 2012 Reason for increase or decrease in
comparison with year 2012
Poly Finance 3,301,232.86 2,503,893.11
Total 3,301,232.86 2,503,893.11
5.35.3 Long-term equity investment income calculated by equity method
Investee Year 2013 Year 2012 Reason for increase or decrease in
comparison with year 2012
Shengshi Xinhe 403,949,239.92 260,670,519.92 Increase of profit of investee in 2013
Zhongliansheng Fujian 94,932,964.76 -15,361,306.18 Increase of profit of investee in 2013
Zhongding Fuzhou -7,896,141.99 -12,386,170.86 Decrease of loss of investee in 2013
The Changchun River Valley 45,227,211.10 87,048,925.26 Realization of profit in 2013 by investee
ECIC Fund Management 107,057,566.04 80,238,843.28 Increase of profit of investee in 2013
Dongguan Wanhong -4,484.45 Increase of expenses of investee in 2013
Guangzhou Bao’ao -75,444.65 Increase of expenses of investee in 2013
Wuhan Qingneng -1,737,711.35 Increase of expenses of investee in 2013
Zhaoshang Longyuan 12,801.34 Increase of profit of investee in 2013
Nanjing Xueshang -4,676,783.42 Increase of expenses of investee in 2013
Hangzhou Jinmu -4,332,655.21 Increase of expenses of investee in 2013
Poly Rentai -310,094.58 Increase of expenses of investee in 2013
Guangzhou Zhongyao -395,113.68 Increase of expenses of investee in 2013
631,751,353.83 400,210,811.42
Note: There were no significant restrictions in collecting the remittance of investment
income in the current period. Increase of profit of investee in 2013
5.36 Losses on assets impairment
Item Year 2013 Year 2012
Losses on bad debt 59,882,558.32 70,794,150.32
Losses on inventory depreciation
Losses on impairment of available-for-sale financial
assets
Losses on impairment of held-to-maturity investment
Losses on impairment of long-term equity investment
Losses on impairment of investment properties
Losses on impairment of fixed assets
Losses on impairment of project materials
Losses on impairment of construction in progress
Losses on impairment of productive biological assets
Losses on impairment of oil and gas assets
Losses on impairment of intangible assets
Losses on impairment of goodwill
Others
Total 59,882,558.32 70,794,150.32
POLY REAL ESTATE GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2013
Notes to Financial Statements Page 110
5.37 Non-operating income
Item Year 2013 Year 2012
Amount included in
non-recurring profits and
losses in 2013
Total gains on disposal of
non-current assets 605,003.65 196,664.56 605,003.65
Including: gains on disposal of
fixed assets 605,003.65 196,664.56 605,003.65
Gains on disposal of intangible
assets
Gains on exchange of
non-monetary assets
Gain on debt restructuring
Donation received
Income from fines and default
fines 91,108,038.71 122,304,890.41 91,108,038.71
Government subsidy
Others 90,570,918.53 66,942,990.46 90,570,918.53
Total 182,283,960.89 189,444,545.43 182,283,960.89
5.38 Non-operating expenses
Item Year 2013 Year 2012
Amount included in t
non-recurring profits and
losses in 2013
Total losses on disposal of non-current
assets 158,318.88 100,774.77 158,318.88
Including: loss on disposal of fixed
assets 158,318.88 100,774.77 158,318.88
Loss on disposal of intangible assets
Loss on debt restructuring
Loss on exchange of non-monetary
assets
Donation made 531,076.20 2,369,951.00 531,076.20
Amercement outlay 9,263,500.61 11,791,175.79 9,263,500.61
Other 77,458,865.23 36,630,005.86 77,458,865.23
Total 87,411,760.92 50,891,907.42 87,411,760.92
5.39 Income tax expenses
Item Year 2013 Year 2012
Current income tax calculated according to
the tax law and relevant provisions 4,484,450,864.03 3,860,002,729.36
Adjustment for deferred income tax -247,216,640.79 -306,474,044.71
Including: deferred income tax assets -240,938,209.57 -272,010,100.45
Deferred income tax liabilities -6,278,431.22 -34,463,944.26
Total 4,237,234,223.24 3,553,528,684.65
5.40 Calculation of basic earnings per share and diluted earnings per share
According to "Rule 9 on Information Disclosure by Companies Offering Securities to the Public-
calculations and disclosures of rate of return on net assets and earnings per share (revised in 2010)"
(Notice [2010] No. 2 of China Securities Regulatory Commission), Announcement No. 1 on
Information Disclosure by Companies Offering Their Securities to the Pubic - non-recurring profits
and losses (2008) (Notice [2008] No. 43 of China Securities Regulatory Commission) issued by
China Securities Regulatory Commission, the Company calculates the earnings per share through
the following formula.
POLY REAL ESTATE GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2013
Notes to Financial Statements Page 111
5.40.1 Basic earnings per share
Basic earnings per share = P0/S
S=S0+S1+Si×Mi/M0–Sj×Mj/M0-Sk
Among which: P0 is the net profit attributable to ordinary shareholders or the net profit
attributable to ordinary shareholders after deducting the non-recurring profits and losses; S
is the weighted average number of outstanding ordinary shares; S0 is the total number of
shares as at January 1, 2013; S1 is the increase of shares due to transfer of accumulated
funds to share capital or dividends distribution during the reporting period; Sj is the
decrease of shares due to repurchase during the reporting period; Sk is the shares reduction
during the reporting period; M0 is the months of reporting period; Mi was the accumulated
months from the next month of share increment to the end of reporting period; Mj is the
accumulated months from the next month of share increment to the end of reporting period.
5.40.2 Diluted earnings per share
Diluted earnings per share =P1/(S0+S1+Si×Mi/M0–Sj×Mj/M0–Sk+ weighted average
number of such ordinary shares as warrants, options, convertible bonds)
Among which, P1 is the net profit attributable to ordinary shareholders or the net profit
attributable to ordinary shareholders after deducting the non-recurring profits and losses,
which is adjusted according to Accounting Standards for Business Enterprises and relevant
rules in consideration of the effect of dilutive potential ordinary shares. In calculating the
diluted earnings per share, in view of the effect of all dilutive potential ordinary shares on
net profit attributable to ordinary shareholders, on net profit attributable to ordinary
shareholders of the Company after deducting the non-recurring profits and losses and on
weighted average number, which shall be recorded in diluted earnings per share in an
descending order in dilution strength, until the diluted earnings per share reached the
minimum value.
Earnings per share are calculated as follows.
(1) Basic earnings per share
Basic earnings per share is calculated by dividing consolidated net profit attributable
to ordinary shareholders by weighted average number of outstanding ordinary shares
of the Company:
Item Year 2013 Year 2012
Consolidated net profit attributable to ordinary
shareholders 10,747,161,554.27 8,438,233,558.38
Weighted average number of outstanding ordinary
shares of the Company 7,137,994,391.00 7,137,994,391.00
Basic earnings per share (RMB/share) 1.51 1.18
Weighted average number of ordinary shares is calculated as follows:
Item Year 2013 Year 2012
Ordinary shares in issue as at January 1, 2013 7,137,994,391.00 5,948,328,659.00
Increase of shares due to transfer of accumulated
funds to share capital or dividends distribution
during the reporting period 1,189,665,732.00
Weighted average number of ordinary shares
issued in 2013
Less: weighted average number of ordinary shares
repurchased in 2013
Weighted average number of outstanding ordinary
shares 7,137,994,391.00 7,137,994,391.00
POLY REAL ESTATE GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2013
Notes to Financial Statements Page 112
(2) Diluted earnings per share
Diluted earnings per share are calculated by dividing the adjusted consolidated net
profit attributable to ordinary shareholders by adjusted weighted average number of
outstanding ordinary shares of the Company:
Item Year 2013 Year 2012
Consolidated net profit attributable to ordinary
shareholders (diluted) 10,747,161,554.27 8,438,233,558.38
Weighted average number of outstanding ordinary
shares of the Company (diluted) 7,137,994,391.00 7,137,994,391.00
Diluted earnings per share (RMB/share) 1.51 1.18
Weighted average number of ordinary shares (diluted) is calculated as follows:
Item Year 2013 Year 2012
Weighted average number of outstanding
ordinary shares in calculating basic earnings per
share as at December 31, 2013. 7,137,994,391.00 7,137,994,391.00
[Effect of convertible bonds]
[Effect of options]
Weighted average number of ordinary shares as
at December 31, 2013 (diluted) 7,137,994,391.00 7,137,994,391.00
The Company granted share options on May 4, 2012. The exercise price as adjusted at
the end of 2013 was RMB 7.898. Such option scheme might potentially lead to the
existence of dilutive common stocks in subsequent periods.
5.41 Other comprehensive income
Item Year 2013 Year 2012
1. Income (losses) from available-for-sale financial assets
Less: effect of income tax arising from available-for-sale financial assets
Net amount included in other comprehensive income in prior period and
transferred to current profits and losses
Sub-total
2. Shares in other comprehensive income of investee calculated by equity
method 2,028.00
Less: effect of income tax arising from shares in other comprehensive
income of investee calculated by equity method
Net amount included in other comprehensive income in prior period and
transferred to current profits and losses
Sub-total 2,028.00
3. Incomes (or losses) from cash-flow hedging instrument
Less: Effect of income tax arising from cash-flow hedging instrument
Net amount included in other comprehensive income in prior period and
transferred to current profits and losses
Adjustment for initially recognized amount of conversion of hedged item
Sub-total
4. Difference arising from conversion of foreign currencies in financial
statements -1,449,354.82 14,431.42
Less: net amount of disposal of overseas operation transferred to current
profits and losses
Sub-total -1,449,354.82 14,431.42
5. Others
Less: effect of income tax arising from others included in other
comprehensive income
Net amount of others included in other comprehensive income in prior
period and transferred to current profits and losses
Sub-total
Total -1,449,354.82 16,459.42
POLY REAL ESTATE GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2013
Notes to Financial Statements Page 113
5.42 Notes to the items of statements of cash flows
5.42.1 Receipt of other cash related to operating activities
Item Year 2013 Cash received from relevant entities 14,548,726,362.69
Earnest money for house purchases and collections on behalf of owners 261,073,679.65
Others 651,747,415.80
Total 15,461,547,458.14
5.42.2 Payment of other cash related to operating activities
Item Year 2013
Cash paid to relevant entities 12,904,926,676.95 Period expense 2,457,566,060.70 Others 1,017,474,013.28 Total 16,379,966,750.93
5.42.2 Payment of other cash related to financing activities
Item Year 2013 Financial charges and others 144,311,752.51 Total 144,311,752.51
5.43 Supplementary information to the statements of cash flows
5.43.1 Supplementary information to the statements of cash flows
Item Year 2013 Year 2012
1. Net profit adjusted to cash flow from operating activities
Net profit 11,864,462,305.31 9,978,598,275.36
Plus: provision for assets impairment 59,882,558.32 70,794,150.32
Depreciation of fixed assets, depletion of oil and gas assets,
and depreciation of productive biological assets 305,706,452.51 282,466,674.42
Amortization of intangible assets 4,244,078.11 3,004,461.48
Amortization of long-term deferred expenses 23,486,708.98 12,626,622.70
Loss on disposal of fixed assets, intangible assets and other
long-term assets ("-" for gains) -446,684.77 -95,889.79
Loss on write-off of fixed assets ("-" for gains)
Loss on fair value changes ("-" for gains)
Financial expenses ("-" for gains) 1,039,984,211.01 795,679,045.47
Investments loss ("-" for gains) -635,052,586.69 -411,368,972.97
Decrease in deferred income tax assets ("-" for increases) -261,796,897.04 -271,928,039.67
Increase in deferred income tax liabilities ("-" for decreases) -6,278,431.22 -34,463,944.26
Decreases in inventories (“-” for increases) -50,263,472,872.89 -37,536,379,207.43
Decreases in operating receivables (“-” for increases) -8,598,042,955.96 -3,080,021,937.12
Increases in operating payables (“-” for decreases) 36,713,217,336.34 33,283,670,036.48
Others
Net cash flows from operating activities -9,754,106,777.99 3,092,581,274.99
2.Significant investing and financing activities involving no
cash receipts and payments:
Conversion of debt into capital
Convertible corporate bonds maturing within one year
Fixed assets acquired under financing leases
3. Net changes in cash and cash equivalents
Balance of cash as at December 31, 2013 33,112,173,949.23 32,580,034,779.81
Less: balance of cash as at January 1, 2013 32,580,034,779.81 18,152,615,651.13
Plus: balance of cash equivalents as at December 31, 2013
Less: balance of cash equivalents as at January 1, 2013
Net increase in cash and cash equivalents 532,139,169.42 14,427,419,128.68
POLY REAL ESTATE GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2013
Notes to Financial Statements Page 114
5.43.2 Subsidiaries and other business units acquired or disposed in 2013
Item Year 2013 Year 2012
1. Information relevant to subsidiaries and other business units
acquired:
(1) Price for acquiring subsidiaries and other business units 927,055,742.15 130,460,000.00
(2) Cash and cash equivalents paid for acquiring subsidiaries and
other business units 743,255,742.15 130,460,000.00
Less: cash and cash equivalents held by subsidiaries and other
business units 40,456,317.72 2,447.62
(3) Net cash paid for acquiring subsidiaries and other business
units 702,799,424.43 130,457,552.38
(4) Net assets of subsidiaries acquired 96,377,036.06 19,478,134.62
Current assets 3,631,943,982.45 452,398,057.01
Non-current assets 175,287,356.23
Current liabilities 3,710,854,302.62 432,919,922.39
Non-current liabilities
2. Information relevant to subsidiaries and other business units
disposed:
(1) Price for disposing of subsidiaries and other business units 31,598,054.48
(2) Cash and cash equivalents received from disposal of
subsidiaries and other business units 31,598,054.48
Less: cash and cash equivalents held by subsidiaries and other
business units 4,201,058.00
(3) Net cash received from disposal of subsidiaries and other
business units 27,396,996.48
(4) Net assets of subsidiaries disposed 34,077,211.66
Current assets 184,601,999.22
Non-current assets 55,705,108.54
Current liabilities 206,229,896.10
Non-current liabilities
5.43.3 Breakdowns of cash and cash equivalents:
Item Balance as at
December 31, 2013
Balance as at
January 1, 2013
1. Cash 33,112,173,949.23 32,580,034,779.81
Including: cash on hand 8,546,377.74 8,016,631.34
Unrestricted bank deposit 33,096,603,837.87 32,567,811,462.25
Other unrestricted monetary funds 7,023,733.62 4,206,686.22
2. Cash equivalents
Including: bond investments maturing within three months
3. Balance of cash and cash equivalents as at December 31,
2013 33,112,173,949.23 32,580,034,779.81
6 There were no accounting treatments for asset securitization in 2013.
POLY REAL ESTATE GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2013
Notes to Financial Statements Page 115
7 Related parties and related party transactions (All the following amounts are expressed in RMB unless otherwise stated)
7.1 Parent company of the Company
Name of parent
company
Relationship with
the Company
Type of
enterprise
Registration
place
Legal
representative Business nature
Registered
capital
Shareholding ratio in
the Company (%)
Voting ratio in the
Company (%)
Ultimate controller
of the Company
Organization
code
Poly Southern Group
Corporation
Controlling
shareholder
Wholly
state-owned Guangzhou Zhang Ling
Real estate development
and operation, property
management, real estate
agency service, wholesale
and retail trade
RMB 100.5
million 42.14 42.14
China Poly Group
Corporation 190472278
Note: Poly Southern is a wholly-owned subsidiary of Poly Group.
7.2 Subsidiaries of the Company:
See Note 4.1 for details of the Company’s subsidiaries.
7.3 Joint ventures and associates of the Company
See Note 5.7 for details of long-term equity investment.
7.4 Other related parties of the Company Other related party Relationship Organization code
Shanghai Sanli Industrial Co., Ltd .(“Shanghai Sanli”) Under the common control of Poly Group 13221596X
Poly Finance Under the common control of Poly Group 717881749
Poly Construction and Development Corporation (“Poly Construction”) Under the common control of Poly Southern 102034148
Poly Film Investment Co., Ltd. (“Poly Film”) Under the common control of Poly Group 710930130
Guangdong Poly Asset Management Co., Ltd. (“Poly Asset”)) Under the common control of Poly Group 565999296
Poly Solar Technologies (Beijing) Co., Ltd (“Poly Solar”) Under the common control of Poly Group 69637355X
Poly International Auction Co., Ltd.(“Poly Auction”) Under the common control of Poly Group 777673773
Foshan Yongsheng Note 1 59902121
Foshan Shengxin Note 1 77853757
Foshan Shenghong Note 1 79532455
Jiangmen Kangsheng Note 1 71860905
Chung Hong Tai (Hong Kong) Limited (“HK CHT”) Note 1
ECIC Limited Partnership Note 2 559470775
Note 1: This entity is the subsidiary of ECIC (Tianjin) Equity Investment Fund Management Co., Ltd, an associate of the Company.
Note 2: In 2010, ECIC (Tianjin) Equity Investment Fund Management Co., Ltd., an associate of the Company, formed ECIC (Tianjin) Equity Investment Fund Partnership
(Limited Partnership) as a general partner. The Company is a limited partner in this Limited Partnerhsip. The Company has contributed RMB 600,000,000.00 to the
Limited Partnership and RMB 444,000,000 has not been contributed as of the end of 2013.
POLY REAL ESTATE GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2013
Notes to Financial Statements Page 116
7.5 Related party transactions
7.5.1 For the subsidiaries under the Company’s control and included in the scope of
consolidation, the transactions between among them and transactions between the
parent company and subsidiaries have been eliminated.
7.5.2 Purchase of goods, rendering and receipt of labor services
Related party Content of related
party transactions
Pricing method
and
decision-making
procedure
Year 2013 Year 2012
Amount
Proportion in
similar
transactions (%)
Amount
Proportion in
similar
transactions (%)
Purchase of goods/receipt of labor
services:
Poly
Construction
Project
contracting
As agreed in
agreement 19,742,614.17 0.02 1,589,175.00 0.0021
Poly Solar
Purchase of
goods
As agreed in
agreement 482,760.00
Poly Auction
Purchase of
goods
As agreed in
agreement 435,850.00
Sale of goods/rendering of labor
services:
Shengshi Xinhe
Project
contracting
As agreed in
agreement 90,668,912.93 0.30 142,525,358.24 0.21
Zhongding
Fuzhou
Project
contracting
As agreed in
agreement 181,298,839.42 0.59 112,091,303.44 0.16
Zhongliansheng
Fujian
Project
contracting
As agreed in
agreement 114,217,637.60 0.37 90,632,845.71 0.13
7.5.3 Leases among related parties
Name of lessor Name of lessee Category of leasing
assets
Starting date of
lease Ending date of lease
Pricing basis for
determining the
leasing income
Leasing income
recognized in 2013
Poly
Commercial
Poly Film The Poly Canal
in the South
China Sea
2009-03-26 2029-03-25
As agreed in
agreement
2,889,326.39
Guangzhou
Elegance
Poly Film The Guangzhou
Central Square 2010-08-31 2030-08-31
As agreed in
agreement
1,390,720.00
The Company ECIC Fund
Management
Guangzhou Poly
Center 2011-04-01 2020-09-30
As agreed in
agreement
1,949,316.00
The Company Poly Southern Guangzhou Poly
Center 2011-12-01 2019-08-30
As agreed in
agreement
1,715,544.00
The Company Poly Asset Guangzhou Poly
Center 2011-12-01 2019-08-30
As agreed in
agreement
1,192,488.00
7.5.4 Related Guarantee
See Note 9 for details of the guarantees provided inside the Company and the guarantees
provided by the Company for joint ventures.
POLY REAL ESTATE GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2013
Notes to Financial Statements Page 117
7.5.5 Money deposits among related parties
Borrowing funds from related parties
Related parties Amount of
borrowing Starting date Maturity date Remark
Borrowing in
2013:
Poly Finance 200,000,000.00 2013-02-05 2015-02-05
The interest rate was the
benchmark interest rate for loan
during the corresponding period
increased by 5%.
Poly Finance 100,000,000.00 2013-03-26 2015-03-26
The interest rate was the
benchmark interest rate for loan
during the corresponding period
increased by 5%.
Poly Finance
(Note) 300,000,000.00 2013-04-23 2014-04-23
The interest rate was the
benchmark interest rate for loan
during the corresponding period
increased by 5%.
Poly Finance 200,000,000.00 2013-08-07 2015-08-07
The interest rate was the
benchmark interest rate for loan
during the corresponding period.
Poly Finance 100,000,000.00 2013-12-02 2015-12-01
The interest rate was the
benchmark interest rate for loan
during the corresponding period.
Poly Finance 100,000,000.00 2013-12-11 2015-12-11
The interest rate was the
benchmark interest rate for loan
during the corresponding period.
Poly Finance 300,000,000.00 2013-12-31 2014-12-31
The interest rate was the
benchmark interest rate for loan
during the corresponding period
increased by 5%.
Repayment in
2013:
Poly Finance 60,000,000.00 2011-01-19 2014-01-19
The borrowing in 2011
amounted to RMB 190,000,000,
part of which was repaid in
2013.
Poly Finance 180,000,000.00 2011-01-19 2013-01-19
The borrowing in 2011
amounted to RMB 200,000,000,
which was fully repaid in 2013.
Poly Finance 10,000,000.00 2012-04-20 2014-04-20
The borrowing in 2012
amounted to RMB
2,000,000,000, part of which
was repaid in 2013.
Poly Finance 5,000,000.00 2012-10-24 2014-10-24
The borrowing in 2012
amounted to RMB 100,000,000,
part of which was repaid in
2013.
Poly Finance 95,000,000.00 2011-10-13 2014-10-13
The borrowing in 2011
amounted to RMB 100,000,000,
which was fully repaid in 2013.
Poly Finance 5,000,000.00 2012-11-20 2014-11-20
The borrowing in 2012
amounted to RMB 150,000,000,
part of which was repaid in
2013.
Poly Finance 15,000,000.00 2012-06-27 2014-06-27
The borrowing in 2012
amounted to RMB 100,000,000,
part of which was repaid in
2013.
POLY REAL ESTATE GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2013
Notes to Financial Statements Page 118
Related parties Amount of
borrowing Starting date Maturity date Remark
Poly Finance 5,000,000.00 2013-02-05 2015-02-05
The borrowing in 2013
amounted to RMB 200,000,000,
part of which was repaid in
2013.
Poly Finance 400,000,000.00 2011-10-28 2013-10-28
The borrowing in 2011
amounted to RMB 400,000,000,
which was fully repaid in 2013.
Poly Finance 2,000,000.00 2013-03-26 2015-03-26
The borrowing in 2013
amounted to RMB 100,000,000,
which was repaid in 2013.
Poly Finance 600,000,000.00 2012-01-05 2014-01-06
The borrowing in 2012
amounted to RMB 600,000,000,
which was fully repaid in 2013.
Note: The amount was lent by Poly Group to the Company through Poly Finance in the
form of entrusted loan.
7.5.6 There was no assets transfer or debt restructuring with related parties in 2013.
7.5.7 Other related parties transactions
Related party Transaction type Amount Proportion in the item (%)
Poly Finance (Note) Deposit 1,739,422,879.69 5.15
ECIC Fund Management Receipt of equity
investment 520,200,000.00 11.53
HK CHT Receipt of equity
investment 497,664,000.00 11.03
Foshan Yongsheng Receipt of equity
investment 222,434,520.00 4.93
Foshan Shenghong Receipt of equity
investment 40,000,000.00 0.89
Foshan Shengxin Receipt of equity
investment 93,750,000.00 2.08
ECIC Limited Partnership Receipt of equity
investment 75,000,000.00 1.66
Note: As at December 31, 2013, deposit balance of the Company in Poly Finance totaled
RMB 1, 739,422,879.69. The interest rate for the deposits was subject to relevant rules of
People’s Bank of China.
7.5.8 Receivables and payables among related parties
Item Name of related parties Balance as at
December 31, 2013
Balance as at
January 1, 2013
Other receivables Zhongding Fuzhou 476,055,440.00
Other receivables Zhongliansheng Fujian 200,900.25
Other receivables The Changchun River Valley 60,713,600.00
Other receivables Shengshi Xinhe 8,319,611.02
Other receivables ECIC Limited Partnership 397,219,519.86
Other receivables ECIC Fund Management 175,385,961.45
Other receivables Nanjing Xueshang 351,892,184.20
Other receivables Wuhan Qingneng 230,700,000.00
Other receivables Poly Rentai 406,925,400.00
Other receivables Guangzhou Bao’ao 151,955.40
Other receivables Guangzhou Zhongyao 90,000,410.40
Other receivables Dongguan Wanhong 647,286,000.00
Other receivables Hangzhou Jinmu 129,303,062.00
POLY REAL ESTATE GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2013
Notes to Financial Statements Page 119
Item Name of related parties Balance as at
December 31, 2013
Balance as at
January 1, 2013
Other payables Zhongding Fuzhou 16,793,901.68
Other payables Poly Group 1,555,499,150.00 1,565,797,315.07
Other payables Shanghai Sanli 41,589,979.17 43,094,729.17
Other payables ECIC Fund Management 38,195,186.90
Other payables ECIC Limited Partnership 1,011,003,349.32
Other payables Shengshi Xinhe 1,415,116.63
Other payables Zhongliansheng Fujian 199,701,468.97
Other payables Foshan Yongsheng 1,274,843,500.00
Other payables Foshan Shengxin 187,500,000.00
Other payables Foshan Shenghong 220,040,400.00
Other payables Jiangmen 4,000,000.00
Other payables Tianjin Munan 17,000,000.00
Amounts received in
advance Shengshi Xinhe 47,735,150.30 65,424,002.73
Amounts received in
advance Zhongding Fuzhou 37,806,254.97 45,588,221.32
Amounts received in
advance Zhongliansheng Fujian 380,158.00 27,402,595.24
Amounts received in
advance Nanjing Xueshang 15,530,516.63
7.5.9 The Company does not have commitments to related parties.
8 Share-based payment
8.1 General information of share-based payment
Total amount of all equity instruments granted by the
Company in 2013
Total amount of all equity instruments exercised by the
Company in 2013
Total amount of all equity instruments expired in 2013 1,032,000
Range of exercise price of outstanding options by the
Company as at December 31, 201 and the remaining
contractual period
As at December 31, 2013, the exercise price of
outstanding options by the Company was RMB
7.898, and the remaining contractual period is
4.34 years
Range of exercise price of other equity instruments of
the Company as at December 31, 2013 and the
remaining contractual period
None
On April 26, 2012, the Share Option Incentive Plan (amendment draft) of Poly Real Estate (Group)
Co., Ltd. was approved by the 2011 annual general meeting, and on the same day, the Resolution
Concerning the Matters Related to Grant of Share Options was approved in the second meeting of
the fourth board of directors, determining the grant date for this share option incentive plan to be
May 4, 2012. The Company completed the grant of the share options on the grant date. The
number of options granted under this share option incentive plan was 55,670,000, with an exercise
price of RMB 9.97 and fair value of RMB 310,449,300 in total. The waiting period is two years
upon grant date and exercise of options shall occur in three exercise periods. The quantity of
options to be exercised in the first, second and third exercise period is 30%, 30% and 40% of total
options granted, respectively.
According to the motion for 2011 profit distribution and transfer of capital reserves to share capital
that was approved at general meeting of shareholders, and based on the total share capital as at
December 31, 2011, the Company distributed on June 18, 2012 cash dividends of RMB 2.15
(including tax) for every 10 shares to all shareholders, and issued 2 shares for every 10 shares of
capital reserves. The exercise price of share options was accordingly adjusted to RMB 8.13 from
RMB 9.97. According to the profit distribution plan for 2012 approved by the Company’s general
meeting of 2013, the Company distributed cash dividends of RMB 2.32 (including tax) for every
POLY REAL ESTATE GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2013
Notes to Financial Statements Page 120
10 shares to all shareholders. The exercise price of share options was correspondingly adjusted to
RMB 7.898 from RMB 8.13.
8.2 Equity-settled share-based payment
Determination of fair value of equity instruments
as at grant date B-S (Black-Scholes) option pricing model
Determination of best estimate of exercisable
equity instruments
The most probable exercise number was estimated
according to the amount of remaining exercisable
instruments as at the balance sheet date and the dismissal
of employees with options granted
Reason for material difference between the
estimates for 2013 and 2012 None
Accumulated amount of equity-settled
share-based payment in capital reserves 171,242,409.34
Total expenses recognized for equity-settled
share-based payment 101,881,633.16
The Company accounts for incentive plan according to Accounting Standard for Business
Enterprises No. 11 - Share-based payment. At each of balance sheet date during the waiting period,
the Company calculates and recognizes administrative expenses for the current period based on
estimated quantity of options to be exercised and the fair value of each share option as at grant date,
and records them in capital reserves. During the exercise period, the Company no longer adjusts
recognized administrative expenses and capital reserves. On exercise date, the Company assesses
the circumstances of exercise and recognizes share capital and share premium, and in the meantime
transfers capital reserves (other capital reserves) recognized during the waiting period. In 2012 the
Company recorded the amortization of cost of equity incentive plan totaling RMB 101,881,600 in
administrative expenses, and increased the capital reserves by RMB 101,881,600.
8.3 There were no cash-settlements for share-based payments in 2013.
8.4 Share-based services
Total share-based payments in exchange for employee services 101,881,633.16
Total share-based payment in exchange for other services
8.5 Adjustment to and termination of share-based payment
There was no adjustment or termination of share-based payment during the reporting period.
9 Contingencies
9.1 Guarantees provided by the Company for subsidiaries
As at December 31, 2013, the guarantee provided by the Company for subsidiaries amounted to
RMB 66,225,401,900 in total, with an increase of 14,439,224,200 in 2013, details of which are as
follows:
Guarantee Type of debt
Balance of
guarantee
(RMB’0,000)
Life of borrowing
Date of borrowing Maturity
date
Fuli Construction &
Installation
Short-term borrowing 10,000.00 2013-03-28 2014-03-28
Short-term borrowing 5,000.00 2013-06-28 2014-06-28
Short-term borrowing 4,000.00 2013-03-28 2014-03-28
Short-term borrowing 5,000.00 2013-04-12 2014-04-12
Short-term borrowing 3,000.00 2013-05-09 2014-05-09
Poly Zhongshan Short-term borrowing 50,000.00 2013-12-31 2014-12-31
Hebei Poly Short-term borrowing 30,000.00 2013-04-23 2014-04-23
Shaanxi Rong’an Short-term borrowing 30,000.00 2013-12-31 2014-12-30
Beijing Poly Ying Non-current borrowing maturing within one year 57,200.00 2011-07-29 2014-07-28
Jinchenghua Non-current borrowing maturing within
one year 10,000.00 2012-06-21 2014-12-21
POLY REAL ESTATE GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2013
Notes to Financial Statements Page 121
Non-current borrowing maturing within
one year 1,500.00 2012-07-23 2014-07-31
Shibo Hongye Non-current borrowing maturing within
one year 500.00 2013-08-07 2014-08-21
Poly Chengdu Non-current borrowing maturing within
one year 10,000.00 2011-04-06 2014-01-29
Xindu Poly
Non-current borrowing maturing within
one year 15,000.00 2012-05-24 2014-03-30
Non-current borrowing maturing within
one year 1,453.00 2012-08-15 2014-03-30
Chengdu Baohua
Non-current borrowing maturing within
one year 37,500.00 2012-06-01 2014-11-30
Non-current borrowing maturing within
one year 11,250.00 2012-07-27 2014-11-30
Non-current borrowing maturing within
one year 3,750.00 2013-02-25 2014-11-30
Non-current borrowing maturing within
one year 3,750.00 2013-03-12 2014-11-30
Non-current borrowing maturing within
one year 3,750.00 2013-05-09 2014-11-30
Dalian Bingang
Non-current borrowing maturing within
one year 6,000.00 2011-08-25 2014-08-22
Non-current borrowing maturing within
one year 6,000.00 2011-09-01 2014-08-31
Poly Zengcheng
Non-current borrowing maturing within one year 93,500.00 2011-06-13 2014-06-13
Non-current borrowing maturing within
one year 5,000.00 2012-07-30 2014-06-13
Poly Zhongshan
Non-current borrowing maturing within one year 3,000.00 2012-11-01 2014-04-01
Non-current borrowing maturing within
one year 5,000.00 2012-11-01 2014-10-01
Poly Zhuhai
Non-current borrowing maturing within one year 4,000.00 2012-02-28 2014-02-13
Non-current borrowing maturing within
one year 17,000.00 2012-04-01 2014-02-13
Non-current borrowing maturing within one year 8,000.00 2012-04-01 2014-08-13
Non-current borrowing maturing within
one year 13,000.00 2013-03-15 2014-08-13
Non-current borrowing maturing within one year 20.00 2013-07-19 2014-12-20
Hefei Poly
Non-current borrowing maturing within
one year 5,000.00 2012-07-12 2014-06-30
Non-current borrowing maturing within one year 10,000.00 2012-08-24 2014-06-30
Non-current borrowing maturing within
one year 5,000.00 2012-10-15 2014-12-31
Non-current borrowing maturing within one year 5,000.00 2012-12-28 2014-06-15
Non-current borrowing maturing within
one year 1,000.00 2012-12-28 2014-12-20
Non-current borrowing maturing within one year 4,000.00 2013-01-17 2014-12-20
Non-current borrowing maturing within
one year 20,000.00 2013-05-29 2014-06-30
Non-current borrowing maturing within one year 10,000.00 2013-06-27 2014-06-30
Non-current borrowing maturing within
one year 1,000.00 2013-06-27 2014-12-30
Heifei Hesheng Non-current borrowing maturing within one year 4,900.00 2013-06-27 2014-12-31
Hebei Poly Non-current borrowing maturing within
one year 9,500.00 2012-10-24 2014-10-24
Hunan Poly Non-current borrowing maturing within one year 36,925.00 2011-04-08 2014-04-08
Nanhu Property
Non-current borrowing maturing within
one year 26,441.00 2011-10-31 2014-10-31
Non-current borrowing maturing within one year 17,625.00 2011-10-31 2014-10-31
Shunde Poly
Non-current borrowing maturing within
one year 5,000.00 2011-01-10 2014-01-10
Non-current borrowing maturing within one year 10,000.00 2012-01-21 2014-01-20
Foshan Hengshun Non-current borrowing maturing within
one year 80,000.00 2012-09-26 2014-03-25
POLY REAL ESTATE GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2013
Notes to Financial Statements Page 122
Jiangsu Ningyuan
Non-current borrowing maturing within
one year 1,000.00 2011-03-11 2014-03-11
Non-current borrowing maturing within
one year 500.00 2011-03-14 2014-03-14
Non-current borrowing maturing within
one year 4,000.00 2011-03-31 2014-03-31
Non-current borrowing maturing within
one year 1,000.00 2011-04-26 2014-04-26
Non-current borrowing maturing within
one year 1,000.00 2011-05-06 2014-05-06
Non-current borrowing maturing within
one year 1,000.00 2011-06-21 2014-06-21
Liaoning Poly Non-current borrowing maturing within
one year 14,000.00 2012-01-31 2014-12-31
Shenyang Champagne Non-current borrowing maturing within
one year 8,000.00 2013-06-28 2014-07-20
Non-current borrowing maturing within
one year 4,000.00 2012-08-24 2014-08-24
Qingdao Guanghui
Non-current borrowing maturing within
one year 25,000.00 2012-07-04 2014-12-21
Non-current borrowing maturing within
one year 12,000.00 2013-01-30 2014-12-20
Non-current borrowing maturing within
one year 19,000.00 2012-10-10 2014-12-21
Shanghai Jiankun Non-current borrowing maturing within one year 15,000.00 2011-01-19 2014-01-19
Junlan Property
Non-current borrowing maturing within
one year 7,000.00 2012-09-29 2014-12-31
Non-current borrowing maturing within one year 15,000.00 2012-10-19 2014-12-31
Non-current borrowing maturing within
one year 10,000.00 2013-09-18 2014-12-31
Shanghai Jiancui Non-current borrowing maturing within one year 200.00 2012-03-30 2014-03-31
Shanghai Jianxi
Non-current borrowing maturing within
one year 200.00 2013-09-18 2014-09-30
Non-current borrowing maturing within one year 2,000.00 2013-09-18 2014-12-20
Non-current borrowing maturing within
one year 7,000.00 2013-09-18 2014-09-25
Shanghai Jianheng Non-current borrowing maturing within one year 14,800.00 2011-07-26 2014-07-26
Shanghai Hongrong
Non-current borrowing maturing within
one year 5,000.00 2013-06-26 2014-07-15
Non-current borrowing maturing within one year 10,000.00 2013-06-28 2014-10-01
Non-current borrowing maturing within
one year 200.00 2013-07-01 2014-12-31
Poly Tianjin
Non-current borrowing maturing within one year 9,000.00 2011-03-16 2014-03-16
Non-current borrowing maturing within
one year 20,404.00 2011-07-14 2014-07-13
Tianjin Kunlun Non-current borrowing maturing within one year 14,500.00 2012-11-30 2014-11-30
Wuhan Jinqiao Non-current borrowing maturing within
one year 16,000.00 2012-04-06 2014-12-31
Wuhan Lin Yu
Non-current borrowing maturing within one year 20,000.00 2012-02-29 2014-12-31
Non-current borrowing maturing within
one year 19,000.00 2011-05-30 2014-05-30
Non-current borrowing maturing within one year 50,000.00 2012-08-24 2014-08-24
Wuhan Lin Hai
Non-current borrowing maturing within
one year 6,000.00 2012-11-29 2014-11-30
Non-current borrowing maturing within one year 3,000.00 2013-05-29 2014-05-30
Non-current borrowing maturing within
one year 20,000.00 2012-08-24 2014-08-24
Non-current borrowing maturing within one year 30,000.00 2012-10-31 2014-08-24
Wuhan Kangqiao
Non-current borrowing maturing within
one year 10,000.00 2012-11-08 2014-11-08
Non-current borrowing maturing within one year 20,000.00 2012-10-25 2014-10-25
Non-current borrowing maturing within
one year 8,000.00 2013-04-01 2014-12-31
POLY REAL ESTATE GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2013
Notes to Financial Statements Page 123
Wuhan Jingu
Non-current borrowing maturing within
one year 6,000.00 2013-04-28 2014-10-10
Non-current borrowing maturing within
one year 100.00 2013-07-31 2014-09-21
Non-current borrowing maturing within
one year 200.00 2013-08-27 2014-09-21
Non-current borrowing maturing within
one year 500.00 2013-12-18 2014-12-31
Non-current borrowing maturing within
one year 930.00 2013-12-21 2014-12-31
Poly Bogahua Non-current borrowing maturing within
one year 500.00 2012-06-27 2014-12-25
Poly Wuhan Non-current borrowing maturing within
one year 4,000.00 2011-08-15 2014-06-30
Changchun East Long
Non-current borrowing maturing within one year 6,800.00 2011-01-21 2014-01-20
Changchun Hengfu Non-current borrowing maturing within one year 8,400.00 2012-02-24 2014-02-20
Changchun East Long
Non-current borrowing maturing within
one year 500.00 2011-06-01 2014-02-24
Non-current borrowing maturing within one year 25,000.00 2012-04-20 2014-04-20
Non-current borrowing maturing within
one year 6,500.00 2011-06-01 2014-06-01
Changchun Hengfu
Non-current borrowing maturing within one year 500.00 2013-08-31 2014-09-30
Non-current borrowing maturing within
one year 3,500.00 2012-02-24 2014-08-20
Non-current borrowing maturing within
one year 500.00 2013-08-31 2014-12-30
Hangzhou Jianyi
Non-current borrowing maturing within
one year 3,750.00 2011-05-16 2014-03-24
Non-current borrowing maturing within
one year 3,750.00 2011-06-09 2014-03-24
Non-current borrowing maturing within
one year 750.00 2011-12-16 2014-03-24
Non-current borrowing maturing within
one year 1,500.00 2012-02-09 2014-03-24
Non-current borrowing maturing within
one year 3,000.00 2012-04-01 2014-03-24
Non-current borrowing maturing within
one year 1,840.00 2012-11-12 2014-03-24
Non-current borrowing maturing within
one year 30,000.00 2013-02-28 2014-03-24
Shaoxing Poly
Non-current borrowing maturing within
one year 5,000.00 2012-07-20 2014-10-19
Non-current borrowing maturing within
one year 6,000.00 2012-08-06 2014-10-19
Non-current borrowing maturing within
one year 5,000.00 2012-08-31 2014-10-19
Zhejiang Poly
Non-current borrowing maturing within one year 30,000.00 2011-08-08 2014-08-08
Non-current borrowing maturing within
one year 5,000.00 2011-12-29 2014-08-08
Non-current borrowing maturing within one year 6,000.00 2012-01-13 2014-08-08
Non-current borrowing maturing within
one year 8,000.00 2012-03-12 2014-08-08
Non-current borrowing maturing within one year 3,500.00 2012-05-31 2014-08-08
Non-current borrowing maturing within
one year 7,500.00 2013-06-03 2014-08-08
Chongqing Investment
Non-current borrowing maturing within one year 80,000.00 2012-07-12 2014-07-12
Non-current borrowing maturing within
one year 15,000.00 2013-12-09 2014-12-31
Non-current borrowing maturing within one year 18,620.00 2011-12-16 2014-04-21
Non-current borrowing maturing within
one year 8,200.00 2013-06-28 2014-12-21
Non-current borrowing maturing within one year 4,600.00 2012-09-26 2014-12-21
Non-current borrowing maturing within
one year 2,800.00 2012-09-25 2014-12-21
Non-current borrowing maturing within 2,300.00 2013-04-28 2014-12-21
POLY REAL ESTATE GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2013
Notes to Financial Statements Page 124
one year
Non-current borrowing maturing within one year 10,000.00 2013-04-23 2014-12-21
Non-current borrowing maturing within
one year 11,000.00 2011-01-19 2014-01-19
Non-current borrowing maturing within one year 8,000.00 2012-06-27 2014-06-27
Non-current borrowing maturing within
one year 30,000.00 2012-06-08 2014-05-10
Chongqing Baocheng Non-current borrowing maturing within one year 1,188.00 2013-12-18 2014-12-27
Fuli Construction &
Installation
Non-current borrowing maturing within
one year 40,000.00 2012-09-18 2014-09-18
Shibo Hongye
Long-term borrowing 80,000.00 2013-08-08 2016-07-10
Long-term borrowing 35,000.00 2013-10-09 2016-07-10
Long-term borrowing 35,000.00 2013-11-12 2016-07-10
Long-term borrowing 30,000.00 2013-12-04 2016-07-10
Beijing Poly Xing Long-term borrowing 100,000.00 2013-08-23 2015-08-23
Long-term borrowing 20,000.00 2013-12-31 2016-12-31
Beijing Poly Xing Long-term borrowing 80,000.00 2010-10-15 2015-09-16
Shibo Hongye Long-term borrowing 19,500.00 2013-08-07 2015-08-21
Jinchenghua Long-term borrowing 17,000.00 2012-06-21 2015-06-21
Long-term borrowing 3,500.00 2012-07-23 2015-07-23
Chengdu Stone Elephant
Lake Long-term borrowing 17,670.00 2010-09-25 2015-09-20
Poly Chengdu
Long-term borrowing 6,000.00 2013-12-20 2016-05-15
Long-term borrowing 60,000.00 2013-02-27 2015-02-27
Long-term borrowing 18,700.00 2012-01-20 2015-01-19
Long-term borrowing 5,000.00 2012-07-30 2015-01-19
Long-term borrowing 1,000.00 2012-10-25 2015-01-19
Long-term borrowing 8,900.00 2012-12-26 2015-06-25
Long-term borrowing 11,000.00 2013-03-07 2015-06-25
Long-term borrowing 10,000.00 2013-03-18 2015-06-25
Xindu Poly
Long-term borrowing 29,500.00 2012-07-27 2015-07-26
Long-term borrowing 20,000.00 2013-04-28 2016-04-27
Long-term borrowing 10,000.00 2013-06-09 2016-06-08
Long-term borrowing 10,000.00 2013-08-14 2016-04-17
Poly Deyang
Long-term borrowing 10,000.00 2013-12-20 2016-12-19
Long-term borrowing 6,000.00 2012-06-29 2015-06-26
Long-term borrowing 9,000.00 2012-07-05 2015-07-03
Long-term borrowing 4,700.00 2012-11-16 2015-11-15
Long-term borrowing 5,000.00 2013-04-16 2016-04-15
Long-term borrowing 5,000.00 2013-04-27 2016-04-26
Long-term borrowing 5,000.00 2013-05-20 2016-05-19
Chengdu Yachi
Long-term borrowing 18,000.00 2013-01-18 2016-01-17
Long-term borrowing 14,600.00 2013-02-28 2016-01-17
Long-term borrowing 7,400.00 2013-04-24 2016-01-17
Chengdu Baoxin
Long-term borrowing 10,000.00 2013-08-05 2016-08-05
Long-term borrowing 14,520.00 2013-08-13 2016-08-05
Long-term borrowing 10,000.00 2013-09-09 2016-08-05
Long-term borrowing 10,000.00 2013-12-11 2016-08-05
Dalian Hongqi Long-term borrowing 48,000.00 2013-03-29 2015-03-28
Poly Fujian Long-term borrowing 27,000.00 2013-12-01 2015-12-01
Poly Guangzhou Long-term borrowing 29,990.00 2012-07-10 2015-07-09
Long-term borrowing 3,042.00 2012-07-25 2015-07-09
POLY REAL ESTATE GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2013
Notes to Financial Statements Page 125
Long-term borrowing 16,030.00 2012-08-07 2015-07-09
Long-term borrowing 4,500.00 2012-08-24 2015-07-09
Long-term borrowing 6,428.00 2012-08-28 2015-07-09
Long-term borrowing 25,000.00 2013-03-05 2016-03-04
Long-term borrowing 10,000.00 2013-03-15 2016-03-04
Long-term borrowing 5,000.00 2013-05-23 2016-03-04
Long-term borrowing 5,000.00 2013-06-14 2016-03-04
Long-term borrowing 5,000.00 2013-06-27 2016-03-04
Long-term borrowing 5,000.00 2013-08-28 2016-03-04
Long-term borrowing 5,000.00 2013-09-12 2016-03-04
Long-term borrowing 4,500.00 2012-11-21 2015-11-19
Long-term borrowing 5,000.00 2012-11-22 2015-11-19
Long-term borrowing 2,000.00 2012-11-28 2015-11-19
Long-term borrowing 10,000.00 2012-12-03 2015-11-19
Long-term borrowing 10,000.00 2012-12-07 2015-11-19
Long-term borrowing 8,000.00 2012-12-10 2015-11-19
Long-term borrowing 29,950.00 2013-03-29 2015-03-28
Long-term borrowing 19,500.00 2013-05-23 2016-05-22
Poly Zengcheng
Long-term borrowing 30,000.00 2013-01-24 2016-01-23
Long-term borrowing 10,000.00 2013-08-30 2016-08-29
Long-term borrowing 10,000.00 2013-09-12 2016-08-29
Long-term borrowing 10,000.00 2013-09-18 2016-08-29
Long-term borrowing 10,000.00 2013-09-18 2016-08-29
Long-term borrowing 10,000.00 2013-10-01 2016-08-29
Poly Zhongshan
Long-term borrowing 10,000.00 2012-11-01 2015-10-31
Long-term borrowing 44,800.00 2013-02-01 2016-01-31
Long-term borrowing 55,000.00 2013-12-31 2016-12-31
Poly Dongguan Long-term borrowing 15,000.00 2012-12-22 2015-12-21
Dongguan Investment
Long-term borrowing 15,000.00 2013-03-22 2015-03-21
Long-term borrowing 10,000.00 2013-08-23 2016-08-22
Long-term borrowing 100.00 2013-09-11 2016-09-10
Long-term borrowing 1,000.00 2013-09-22 2016-09-10
Long-term borrowing 2,000.00 2013-09-27 2016-09-10
Long-term borrowing 8,000.00 2013-09-30 2016-09-10
Long-term borrowing 18,900.00 2013-10-09 2016-09-10
Poly Zhuhai
Long-term borrowing 7,000.00 2013-03-15 2015-02-13
Long-term borrowing 9,970.00 2013-07-19 2015-06-20
Long-term borrowing 10.00 2013-07-19 2015-12-20
Long-term borrowing 49,990.00 2013-07-19 2016-07-18
Long-term borrowing 70,000.00 2013-03-26 2015-03-25
Zhuhai Poly Long-term borrowing 20,000.00 2013-11-21 2016-11-21
Hefei Hesheng
Long-term borrowing 2,300.00 2013-07-01 2016-06-27
Long-term borrowing 5,000.00 2013-07-19 2016-06-27
Long-term borrowing 5,000.00 2013-08-06 2016-06-27
Long-term borrowing 3,000.00 2013-08-14 2016-06-27
Long-term borrowing 4,000.00 2013-09-05 2016-06-27
Long-term borrowing 3,000.00 2013-09-10 2016-06-27
Long-term borrowing 10,000.00 2013-12-26 2016-12-26
Long-term borrowing 10,000.00 2013-12-27 2016-12-26
Hefei Poly Long-term borrowing 2,000.00 2012-10-15 2015-06-25
Long-term borrowing 2,000.00 2013-02-06 2015-06-15
POLY REAL ESTATE GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2013
Notes to Financial Statements Page 126
Long-term borrowing 3,000.00 2013-03-15 2015-06-15
Long-term borrowing 2,000.00 2013-03-15 2015-12-28
Long-term borrowing 1,000.00 2013-06-27 2015-06-30
Long-term borrowing 20,000.00 2013-08-30 2015-06-30
Hefei Hezhu
Long-term borrowing 3,300.00 2013-12-31 2016-12-31
Long-term borrowing 200.00 2013-12-25 2016-12-25
Long-term borrowing 10,000.00 2013-12-02 2015-12-01
Hebei Poly
Long-term borrowing 20,000.00 2012-11-19 2015-11-18
Long-term borrowing 30,000.00 2012-12-12 2015-11-18
Long-term borrowing 9,800.00 2013-03-26 2015-03-26
Long-term borrowing 4,800.00 2013-03-27 2016-03-11
Long-term borrowing 27,300.00 2013-03-28 2016-03-11
Long-term borrowing 6,900.00 2013-04-02 2016-03-11
Long-term borrowing 20,000.00 2013-04-03 2016-04-02
Long-term borrowing 30,000.00 2013-06-07 2015-06-07
Long-term borrowing 20,000.00 2013-09-23 2016-09-03
Long-term borrowing 500.00 2013-09-29 2016-03-11
Long-term borrowing 20,000.00 2013-11-05 2016-09-03
Nanhu Property
Long-term borrowing 31,000.00 2012-12-25 2015-12-17
Long-term borrowing 12,625.00 2012-12-31 2015-12-17
Long-term borrowing 9,000.00 2013-03-31 2015-12-17
Long-term borrowing 2,375.00 2013-05-30 2015-12-17
Chenzhou Qianjiasheng Long-term borrowing 15,000.00 2013-12-03 2016-10-13
Hunan Poly
Long-term borrowing 17,000.00 2012-09-30 2015-09-23
Long-term borrowing 3,000.00 2012-10-11 2015-09-24
Long-term borrowing 5,000.00 2013-01-30 2015-09-25
Long-term borrowing 2,000.00 2013-08-16 2015-09-26
Nanhu Property Long-term borrowing 30,000.00 2012-10-31 2016-04-30
Long-term borrowing 10,000.00 2012-10-31 2016-04-30
South China Holdings Long-term borrowing 75,350.00 2013-11-07 2025-11-06
Long-term borrowing 55,600.00 2010-01-27 2022-01-26
Shunde Poly
Long-term borrowing 54,000.00 2012-06-03 2015-06-03
Long-term borrowing 18,000.00 2012-10-08 2015-02-07
Long-term borrowing 5,000.00 2012-11-02 2015-11-02
Long-term borrowing 10,000.00 2012-12-28 2015-12-28
Long-term borrowing 35,000.00 2012-12-31 2015-12-31
Long-term borrowing 10,000.00 2013-03-22 2016-03-22
Long-term borrowing 15,000.00 2013-04-01 2016-04-01
Long-term borrowing 6,000.00 2013-08-02 2016-03-31
Long-term borrowing 30,000.00 2013-05-20 2015-05-20
Long-term borrowing 5,000.00 2013-05-24 2016-05-10
Long-term borrowing 2,000.00 2013-05-28 2016-05-10
Long-term borrowing 10,000.00 2013-05-30 2016-05-10
Long-term borrowing 8,000.00 2013-06-01 2016-05-10
Long-term borrowing 3,000.00 2013-11-06 2016-05-10
Long-term borrowing 77,000.00 2013-07-01 2016-04-27
Long-term borrowing 18,000.00 2012-03-13 2015-03-12
Nanhai Hairong
Long-term borrowing 20,000.00 2013-04-12 2016-04-02
Long-term borrowing 30,000.00 2013-05-03 2016-04-02
Long-term borrowing 30,000.00 2013-05-07 2016-04-02
Long-term borrowing 10,000.00 2013-04-19 2016-04-18
POLY REAL ESTATE GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2013
Notes to Financial Statements Page 127
Long-term borrowing 15,000.00 2013-05-02 2016-04-18
Long-term borrowing 17,000.00 2013-06-09 2016-04-18
Foshan Zhengao
Long-term borrowing 5,000.00 2013-03-22 2016-03-22
Long-term borrowing 11,000.00 2013-04-01 2016-03-22
Long-term borrowing 19,000.00 2013-09-04 2016-03-22
Foshan Hengshun Long-term borrowing 20,000.00 2013-03-22 2016-03-14
Foshan Hengxin
Long-term borrowing 7,000.00 2012-09-29 2016-09-28
Long-term borrowing 4,000.00 2012-10-02 2016-09-28
Long-term borrowing 13,000.00 2012-12-20 2016-09-28
Long-term borrowing 3,000.00 2012-12-28 2016-09-28
Long-term borrowing 3,000.00 2012-12-31 2016-09-28
Long-term borrowing 10,000.00 2013-01-01 2016-09-28
Long-term borrowing 15,000.00 2013-10-31 2015-10-30
Long-term borrowing 2,500.00 2013-11-29 2015-11-28
Long-term borrowing 2,500.00 2013-11-29 2015-11-28
Foshan Hongsheng
Long-term borrowing 7,000.00 2013-11-04 2016-10-20
Long-term borrowing 8,600.00 2013-11-21 2016-10-20
Long-term borrowing 5,000.00 2013-12-25 2016-10-20
Qingxing Xinghai Long-term borrowing 15,000.00 2014-12-17 2016-12-16
Long-term borrowing 15,000.00 2014-12-18 2016-12-16
Foshan Xincheng Long-term borrowing 40,000.00 2013-01-14 2016-01-13
Jiangmen Hongxin
Long-term borrowing 10,000.00 2013-07-01 2016-06-30
Long-term borrowing 6,000.00 2013-07-03 2016-06-30
Long-term borrowing 16,800.00 2013-08-09 2016-08-08
Long-term borrowing 9,000.00 2013-11-01 2016-10-31
Long-term borrowing 6,000.00 2013-11-08 2016-10-31
Poly Hailingdao
Long-term borrowing 14,000.00 2012-04-09 2015-03-30
Long-term borrowing 37,000.00 2012-10-15 2015-09-21
Long-term borrowing 16,000.00 2013-07-16 2016-07-16
Long-term borrowing 5,000.00 2013-08-21 2016-08-21
Long-term borrowing 1,000.00 2013-08-23 2016-08-23
Long-term borrowing 6,000.00 2013-09-02 2016-09-02
Long-term borrowing 2,000.00 2013-09-26 2016-09-26
Long-term borrowing 1,000.00 2013-10-10 2015-10-10
Long-term borrowing 4,000.00 2013-10-11 2016-10-11
Long-term borrowing 2,000.00 2013-08-23 2016-08-23
Long-term borrowing 2,000.00 2013-08-23 2016-08-23
Long-term borrowing 2,000.00 2013-08-23 2016-08-23
Long-term borrowing 4,000.00 2013-08-23 2016-08-23
Long-term borrowing 2,130.00 2013-08-23 2016-08-23
Poly Jiangsu
Long-term borrowing 10,000.00 2013-09-04 2015-03-31
Long-term borrowing 5,000.00 2013-11-01 2015-09-30
Long-term borrowing 5,000.00 2013-12-03 2015-09-30
Jiangsu Ningxiang
Long-term borrowing 3,000.00 2013-07-16 2016-06-28
Long-term borrowing 27,000.00 2013-07-17 2016-06-28
Long-term borrowing 14,000.00 2013-09-18 2015-09-09
Long-term borrowing 5,000.00 2013-10-11 2015-09-09
Long-term borrowing 10,000.00 2013-10-28 2015-09-09
Long-term borrowing 11,000.00 2013-09-11 2016-09-11
Long-term borrowing 10,000.00 2013-10-17 2016-09-11
Long-term borrowing 10,000.00 2013-10-29 2016-09-11
POLY REAL ESTATE GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2013
Notes to Financial Statements Page 128
Jiangsu Ningheng Long-term borrowing 15,000.00 2013-11-22 2015-05-21
Jiangsu Ningsheng
Long-term borrowing 15,000.00 2012-05-29 2015-05-26
Long-term borrowing 5,000.00 2013-04-01 2015-05-26
Long-term borrowing 5,000.00 2013-04-01 2015-05-26
Long-term borrowing 5,000.00 2013-04-02 2015-05-26
Long-term borrowing 5,000.00 2013-04-02 2015-05-26
Long-term borrowing 5,000.00 2013-04-24 2015-05-26
Long-term borrowing 10,000.00 2012-04-27 2015-04-26
Long-term borrowing 2,000.00 2012-05-02 2015-04-26
Long-term borrowing 18,000.00 2012-05-24 2015-04-26
Long-term borrowing 5,000.00 2012-03-27 2015-03-26
Long-term borrowing 7,100.00 2012-06-28 2015-06-27
Long-term borrowing 5,600.00 2012-11-08 2015-11-07
Long-term borrowing 7,200.00 2013-02-28 2016-02-28
Long-term borrowing 10,000.00 2013-07-24 2016-06-28
Jiangxi Jintongtia Long-term borrowing 14,900.00 2012-10-23 2015-10-21
Long-term borrowing 5,000.00 2013-01-24 2015-10-21
Nanchang Ruida
Long-term borrowing 14,000.00 2013-02-07 2016-02-06
Long-term borrowing 10,000.00 2013-04-20 2016-04-19
Long-term borrowing 16,000.00 2013-03-15 2015-03-04
Long-term borrowing 22,000.00 2013-11-08 2016-10-29
Long-term borrowing 3,000.00 2013-12-24 2016-10-29
Shenyang Xihu
Long-term borrowing 6,000.00 2012-11-18 2015-11-18
Long-term borrowing 14,000.00 2013-04-19 2016-04-19
Long-term borrowing 19,500.00 2013-02-05 2015-02-05
Long-term borrowing 14,000.00 2013-10-21 2016-10-21
Shenyang Champagne Long-term borrowing 2,000.00 2013-06-28 2016-06-28
Long-term borrowing 25,000.00 2013-07-03 2016-06-28
Shenyang Wanyi
Long-term borrowing 18,000.00 2012-08-06 2015-07-10
Long-term borrowing 15,000.00 2013-12-24 2015-12-24
Long-term borrowing 4,500.00 2013-12-30 2015-12-30
Poly Yingkou Long-term borrowing 30,000.00 2013-01-16 2016-01-15
Dandong Poly
Long-term borrowing 13,800.00 2013-04-02 2016-04-01
Long-term borrowing 3,200.00 2013-04-19 2016-04-01
Long-term borrowing 17,000.00 2012-09-04 2016-08-26
Qingdao Guanghui Long-term borrowing 8,900.00 2012-07-04 2015-07-05
Poly Qingdao Long-term borrowing 32,000.00 2012-08-24 2015-08-23
Qingdao Guangyuan Long-term borrowing 27,700.00 2013-01-30 2016-01-30
Qingdao Guangheng Long-term borrowing 10,000.00 2013-12-11 2015-12-11
Shaanxi Rong’an Long-term borrowing 48,000.00 2013-12-19 2016-12-18
Shaanxi Mindong Long-term borrowing 9,633.90 2013-12-06 2016-12-05
Long-term borrowing 17,001.00 2013-10-29 2016-10-28
Xi’an Xinrongjia Long-term borrowing 26,500.00 2013-10-28 2016-10-27
Shanghai Jiancui
Long-term borrowing 19,790.00 2013-02-28 2015-03-29
Long-term borrowing 10,000.00 2012-09-13 2015-07-31
Long-term borrowing 20,000.00 2013-01-24 2015-07-31
Long-term borrowing 12,980.00 2013-03-20 2015-03-20
Long-term borrowing 8,000.00 2013-12-27 2015-03-19
Long-term borrowing 15,450.00 2012-08-14 2016-08-12
Long-term borrowing 3,890.00 2012-08-28 2016-08-12
Long-term borrowing 6,370.00 2012-09-21 2016-08-12
POLY REAL ESTATE GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2013
Notes to Financial Statements Page 129
Long-term borrowing 6,650.00 2012-10-19 2016-08-12
Long-term borrowing 4,520.00 2012-11-20 2016-08-12
Long-term borrowing 6,965.00 2012-12-21 2016-08-12
Long-term borrowing 4,510.00 2013-01-16 2016-08-12
Long-term borrowing 2,840.00 2013-02-27 2016-08-12
Long-term borrowing 763.00 2013-03-21 2016-08-12
Long-term borrowing 849.00 2013-06-21 2016-08-12
Long-term borrowing 863.00 2013-09-21 2016-08-12
Long-term borrowing 4,271.00 2013-11-12 2016-08-12
Long-term borrowing 2,400.00 2013-11-20 2016-08-12
Long-term borrowing 925.00 2013-12-16 2016-08-12
Shanghai Jiancui
Long-term borrowing 19,000.00 2012-11-28 2015-11-27
Long-term borrowing 4,000.00 2012-12-26 2015-11-27
Long-term borrowing 6,500.00 2013-01-11 2015-11-27
Long-term borrowing 3,200.00 2013-04-24 2015-11-27
Long-term borrowing 4,300.00 2013-07-16 2015-11-27
Long-term borrowing 7,000.00 2013-09-16 2015-11-27
Shanghai Jianrong
Long-term borrowing 13,100.00 2012-08-14 2016-08-12
Long-term borrowing 1,800.00 2012-08-28 2016-08-12
Long-term borrowing 2,146.00 2012-09-21 2016-08-12
Long-term borrowing 2,100.00 2012-10-19 2016-08-12
Long-term borrowing 1,810.00 2012-11-20 2016-08-12
Long-term borrowing 2,359.00 2012-12-21 2016-08-12
Long-term borrowing 450.00 2013-01-16 2016-08-12
Long-term borrowing 3,628.00 2013-03-04 2016-08-12
Long-term borrowing 389.00 2013-03-21 2016-08-12
Long-term borrowing 454.00 2013-06-21 2016-08-12
Long-term borrowing 461.00 2013-09-21 2016-08-12
Long-term borrowing 475.00 2013-12-16 2016-08-12
Jiashan Property
Long-term borrowing 5,000.00 2012-12-26 2027-12-23
Long-term borrowing 1,895.00 2013-04-12 2027-12-23
Long-term borrowing 16,000.00 2013-06-28 2015-06-28
Shanghai Tianjin Long-term borrowing 5,400.00 2013-01-30 2016-01-30
Shanghai Hongrong
Long-term borrowing 25,000.00 2013-06-26 2016-06-26
Long-term borrowing 25,000.00 2013-07-01 2016-06-25
Long-term borrowing 5,000.00 2013-06-26 2016-06-26
Long-term borrowing 18,000.00 2013-07-01 2016-06-25
Long-term borrowing 2,000.00 2013-06-28 2016-06-28
Long-term borrowing 39,600.00 2013-07-01 2016-06-30
Shanghai Jianxi
Long-term borrowing 49,800.00 2013-09-18 2016-09-17
Long-term borrowing 50,000.00 2013-09-18 2016-09-17
Long-term borrowing 23,000.00 2013-09-18 2016-09-17
Long-term borrowing 18,000.00 2013-09-18 2016-09-17
Tianjin Kunlun
Long-term borrowing 750.00 2012-09-20 2015-09-26
Long-term borrowing 10,000.00 2012-10-12 2015-09-20
Long-term borrowing 15,000.00 2013-03-29 2015-09-20
Shengxin Longmao Long-term borrowing 30,000.00 2013-07-19 2015-09-20
Tianjin Sunac Long-term borrowing 30,549.00 2013-09-06 2016-09-05
Long-term borrowing 18,819.00 2012-12-18 2015-12-18
Wuhan Jinqiao Long-term borrowing 1,200.00 2012-04-06 2015-04-06
Long-term borrowing 2,000.00 2012-04-18 2015-04-06
POLY REAL ESTATE GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2013
Notes to Financial Statements Page 130
Long-term borrowing 3,200.00 2012-04-26 2015-04-06
Long-term borrowing 1,600.00 2012-06-07 2015-04-06
Wuhan Lin Yu Long-term borrowing 9,000.00 2012-02-29 2015-02-28
Long-term borrowing 18,000.00 2012-12-31 2015-12-28
Wuhan Lin Hai
Long-term borrowing 5,500.00 2012-11-29 2015-05-23
Long-term borrowing 26,700.00 2013-05-29 2016-05-29
Long-term borrowing 20,000.00 2013-01-04 2016-01-03
Wuhan Kangqiao
Long-term borrowing 20,000.00 2013-03-12 2015-03-12
Long-term borrowing 10,000.00 2013-03-29 2015-03-29
Long-term borrowing 9,000.00 2013-04-01 2016-04-01
Long-term borrowing 30,000.00 2013-06-06 2015-06-06
Long-term borrowing 20,000.00 2013-12-25 2016-12-25
Long-term borrowing 60,000.00 2012-10-31 2015-10-31
Wuhan Jingu
Long-term borrowing 18,000.00 2013-04-12 2016-04-12
Long-term borrowing 4,900.00 2013-07-31 2016-07-31
Long-term borrowing 29,800.00 2013-08-27 2016-08-27
Long-term borrowing 4,500.00 2013-12-18 2015-12-06
Long-term borrowing 8,370.00 2013-12-31 2015-12-06
Long-term borrowing 20,000.00 2013-05-24 2016-05-24
Long-term borrowing 20,000.00 2013-09-12 2016-05-24
Long-term borrowing 20,000.00 2013-05-21 2015-05-21
Long-term borrowing 5,000.00 2013-08-14 2015-08-14
Long-term borrowing 10,000.00 2013-12-03 2015-12-03
Long-term borrowing 11,000.00 2013-12-27 2016-12-27
Long-term borrowing 1,000.00 2013-12-31 2016-12-31
Poly Bogaohua Long-term borrowing 9,908.99 2012-06-27 2015-06-30
Long-term borrowing 20,000.00 2013-03-29 2016-03-29
Changchun Poly Long-term borrowing 42,000.00 2012-12-25 2015-12-24
Long-term borrowing 30,000.00 2013-04-19 2016-04-18
Changchun Hengfu Long-term borrowing 10,700.00 2012-02-24 2015-02-24
Long-term borrowing 19,000.00 2013-08-31 2016-08-30
Hnagzhou Jianjia
Long-term borrowing 3,800.00 2012-06-07 2015-03-01
Long-term borrowing 4,400.00 2012-06-19 2015-02-02
Long-term borrowing 2,960.00 2012-07-12 2015-07-10
Long-term borrowing 7,900.00 2012-08-31 2015-05-26
Long-term borrowing 2,940.00 2012-10-24 2015-10-06
Long-term borrowing 9,800.00 2012-11-29 2015-09-26
Long-term borrowing 8,300.00 2012-12-14 2015-10-13
Hangzhou Jianjin Long-term borrowing 50,000.00 2013-07-26 2016-07-01
Long-term borrowing 2,000.00 2013-12-23 2016-07-01
Hangzhou Jianlin
Long-term borrowing 30,000.00 2013-10-29 2016-09-04
Long-term borrowing 8,000.00 2013-11-20 2016-09-04
Long-term borrowing 12,000.00 2013-11-28 2016-09-04
Long-term borrowing 6,000.00 2013-12-20 2016-09-04
Cixi Poly
Long-term borrowing 26,000.00 2013-06-28 2016-04-04
Long-term borrowing 64,000.00 2013-07-31 2016-04-04
Long-term borrowing 10,000.00 2013-07-31 2016-04-24
Hangzhou Jianjin Long-term borrowing 20,000.00 2013-09-10 2016-09-10
Chongqing Investment
Long-term borrowing 30,000.00 2013-07-03 2016-07-02
Long-term borrowing 20,000.00 2013-07-11 2016-07-02
Long-term borrowing 6,000.00 2013-09-25 2016-09-24
POLY REAL ESTATE GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2013
Notes to Financial Statements Page 131
Long-term borrowing 8,000.00 2013-11-18 2016-09-24
Long-term borrowing 5,000.00 2013-10-10 2016-09-24
Long-term borrowing 3,000.00 2013-04-23 2015-04-23
Long-term borrowing 299.90 2012-09-25 2015-03-21
Long-term borrowing 2,500.00 2012-09-26 2015-03-21
Long-term borrowing 5,767.40 2013-04-28 2015-10-22
Long-term borrowing 8,000.00 2013-06-28 2015-12-24
Long-term borrowing 10,000.00 2013-12-09 2016-06-08
Chongqing Baocheng
Long-term borrowing 41,400.00 2013-03-20 2016-03-20
Long-term borrowing 26,300.00 2013-06-18 2016-03-20
Long-term borrowing 28,812.00 2013-12-18 2016-11-30
Chongqing Zhonghui
Long-term borrowing 3,000.00 2012-11-08 2015-10-29
Long-term borrowing 10,000.00 2012-11-08 2015-10-29
Long-term borrowing 9,500.00 2013-01-10 2015-10-29
Long-term borrowing 5,500.00 2013-01-10 2015-10-29
Long-term borrowing 4,000.00 2013-03-13 2015-10-29
Long-term borrowing 1,500.00 2013-07-26 2015-10-29
Long-term borrowing 6,800.00 2013-07-26 2015-10-29
Long-term borrowing 4,250.00 2013-07-26 2015-10-29
Total
6,622,540.19
9.2 Guarantees provided by subsidiaries for the Company
As at December 31, 2013, the guarantees provided by subsidiaries for the Company amounted to
RMB 4,096,900,000 in total, with an increase of RMB 924,000,000 in 2013, details of which are as
follows.
Guarantee Type of liability
Balance of
guarantee
(RMB’0,000)
Life of loan
Date of borrowing Maturity date
Poly Beijing
Non-current liability maturing within one year 30,000.00 2011-09-09 2014-03-21 Shanghai Jianjin
Chongqing Investment
Poly Beijing
Non-current liability maturing within one year 40,000.00 2011-09-09 2014-09-21 Shanghai Jianjin
Chongqing Investment
Southern China
Industrial
Long-term borrowing 10,000.00 2013-04-26 2015-09-11
Long-term borrowing 70,000.00 2012-07-17 2015-07-16
Poly Beijing Long-term borrowing 70,000.00 2012-10-19 2015-10-18
Poly Beijing
Long-term borrowing 142,300.00 2011-09-09 2016-09-08 Shanghai Jianjing
Chognqing Investment
Poly Guangzhou Long-term borrowing 47,390.00 2012-04-25 2015-04-24
Total 409,690.00
9.3 Guarantees provided by subsidiaries for subsidiaries
As at December 31, 2013, the guarantees provided by subsidiaries for subsidiaries amounted to
RMB 5,925,550,000 in total, with an increase of RMB 2,275,550,000 in 2013, details of which are
as follows.
Guarantor Guarantee Type of liability
Balance of
guarantee
(RMB’0,000)
Life of loan
Date of borrowing Maturity date
Hengli Hong
Kong
Poly Real Estate
Finance Ltd. Bonds payable 304,845.00 2013-08-06 2018-08-06
Poly Wuhan Wuhan Lin Yu Non-current liability maturing
within one year 19,000.00 2011-05-30 2014-05-30
POLY REAL ESTATE GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2013
Notes to Financial Statements Page 132
Guarantor Guarantee Type of liability
Balance of
guarantee
(RMB’0,000)
Life of loan
Date of borrowing Maturity date
Poly Beijing Beijing Poly Ying Non-current liability maturing
within one year 57,200.00 2011-07-29 2014-07-28
Poly Beijing Beijing Poly Ying Non-current liability maturing
within one year 5,000.00 2013-08-20 2014-09-20
Poly Beijing Beijing Shoukai Long-term borrowing 38,250.00 2013-08-23 2016-08-22
Poly Beijing Beijing Poly Ying Long-term borrowing 25,000.00 2013-08-20 2015-08-20
30,000.00 2013-09-03 2015-08-20
Poly Beijing Beijing Shoukai Long-term borrowing 13,260.00 2013-10-18 2016-09-18
Chongqing
Investment Chengdu Huayang Long-term borrowing
20,000.00 2013-05-30 2016-05-29
20,000.00 2013-08-05 2016-08-04
Hunan Poly Nanhu Property Long-term borrowing 30,000.00 2013-03-31 2015-03-31
Poly Chengdu Jiangsu Ningsheng Long-term borrowing
10,000.00 2012-04-27 2015-04-26
2,000.00 2012-05-02 2015-04-26
18,000.00 2012-05-24 2015-04-26
Total 592,555.00
Note: The guarantees provided by Poly Wuhan for Wuhan Lin Yu are jointly provided by the
Company and Poly Wuhan. The guarantees with an amount of RMB 572,000,000 provided by Poly
Beijing for Beijing Poly Ying are jointly provided by the Company and Poly Beijing. The
guarantees provided by Poly Chengdu for Jiangsu Ningcheng are jointly provided by the Company
and Poly Chengdu.
9.4 Guarantees provided for joint ventures
As at December 31, 2013, the guarantees provided by the Company for joint ventures amounted to
RMB 669,000,000 in total, with an increase of RMB 49,753,700 in 2013, details of which are as
follows.
Guarantor Guarantee Type of liability
Balance of
guarantee
(RMB’0,000)
Life of loan
Date of
borrowing Maturity date
The Company Shengshi Xinhe Short-term borrowing 26,500.00 2013-07-25 2014-07-24
Changchun
Hengfu
The Changchun
River Valley
Non-current liability maturing
within one year 7,500.00 2011-06-04 2014-06-03
The Company Shengshi Xinhe Non-current liability maturing
within one year 10,400.00 2011-12-27 2014-12-27
The Company Shengshi Xinhe Non-current liability maturing
within one year 2,500.00 2012-12-19 2014-06-11
The Company Nanjing Xueshang Long-term borrowing 20,000.00 2013-12-03 2016-10-30
Total 66,900.00
9.5 Bank mortgage loan guarantee
The headquarters of the Company and its subsidiaries provide mortgage loan guarantee for buyers
of commercial residential buildings as a real estate business convention. As at December 31, 2013,
the balance of accumulated guarantees amounted to RMB 33,406,574,100. The guarantees are
divided into phased guarantees and whole course guarantees. The period of phased guarantees
starts from the date the guarantee contract becoming effective and ends on the settlement of the
mortgage registration which is delivered to the bank for custody. As at December 31, 2013, the
phased guarantees undertaken by the Company amounted to RMB 33,395,444,100, and the whole
course guarantees undertaken by the Company amounted to RMB 11,130,000.
9.6 Pledge of assets
In order to obtain bank loans, as at the end of reporting period the Company pledged the following
assets.
POLY REAL ESTATE GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2013
Notes to Financial Statements Page 133
Assets type Project Book value (RMB’0,000)
Inventories
The Beijing Poly Central Park 289,483.82
Beijing Poly Hyde Park 205,523.09
Beijing Poly Fengdan I 75,176.13
Beijing Poly Xiyue Spring 138,344.31
The Beijing Poly Spring Plaza 411,084.54
The Beijing Poly Dongjun 69,581.46
Chengdu Poly Xinyu Garden 24,978.73
The Chengdu Poly Park 198 129,660.86
The Chengdu Poly Cambridge 184,850.56
The Chengdu Poly Beisen Mansion 66,607.73
The Chengdu Poly Garden 59,670.36
The Chengdu Poly Stone Elephant Lake Project 974.66
Chengdu Poly Xinyu Garden 12,268.83
The Chengdu Poly Lily Mansion 84,133.73
The Deyang Poly International City 85,716.63
The Chengdu Poly Champagne International 47,066.09
The Chengdu Poly Center 40,923.96
The Chengdu Poly Leaves Whisper 56,559.49
The Chengdu Poly Phoenix Tree 56,523.47
Chengdu Poly Rose Whisper 75,613.23
The Zhongshan Poly Spring Plaza 12,409.42
The Zhongshan Poly International Plaza 9,019.04
The Guangzhou Poly West Coast Residence 9,911.76
The Guangzhou Poly Park 963.58
The Guangzhou Poly Yunxi 271,232.63
The Guangzhou Poly Luokewei Square 8,519.39
Dongguan Poly Forest Whisper 35,170.43
The Zhuhai Poly Mayflower 99,199.56
The Hefei Poly Lafei Mansion 97,156.89
Hefei Poly Phoenix Tree 17,716.91
The Hefei Poly Champagne International 83,500.00
Hefei Poly Mayflower 197,300.65
The Shijiazhuang Poly Garden 116,258.65
The Changsha Poly International Plaza 67,054.00
Chenzhou Poly Suxianlinyu 23,760.00
The Changsha Poly Lugu Forest Whisper 42,293.27
Nanjing Poly Zijing Mansion 44,500.00
Nanjing Poly Luolan Spring 63,879.24
Nanjing Poly Central Park 82,173.54
The Nanjing Poly Phoenix Tree 13,818.47
POLY REAL ESTATE GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2013
Notes to Financial Statements Page 134
Assets type Project Book value (RMB’0,000)
Wuxi Poly Central Park 31,386.63
The Dalian Poly West Mountains Forest Whisper 50,235.00
The Shenyang Poly Cambridge Residence 53,891.00
Shenyang Poly Champagne Garden 33,291.00
The Shenyang Poly Mayflower 12,054.00
The Dandong Poly Jinjiang Forest Whisper 81,586.00
The Shanghai Poly Champagne Garden 86,079.26
The Shanghai Poly Blue Forest Whisper 163,103.15
The Shanghai Poly Leaves of Forest 328,160.13
The Nantong Poly Champagne International 84,078.62
The Tianjin Poly Begonia Bay 29,785.00
The Tianjin Poly Rose Bay 1,867.00
Tianjin Poly Chanson Lake 36,234.00
The Tianjin Poly Horizon Capital 20,913.00
The Wuhan Poly Champagne International 17,325.39
The Wuhan Poly Central Residence 1,803.94
The Wuhan Poly Mahu Project 67.20
The Wuhan Poly Park 24,802.25
The Wuhan Poly Guanshan Village Project 33,729.09
The Wuhan Poly Dreams City 4,514.58
The Wuhan Poly Mayflower 7,260.00
The Hangzhou Poly Champagne International 60,255.00
The Shaoxing Poly Lakeside Reverie 26,780.00
The Hangzhou Poly Rose Bay 81,164.00
The Hangzhou Poly City Green 74,829.50
The Hangzhou Poly Joffre County 144,200.00
Hangzhou Poly Phoenix Tree 96,970.84
Zhejiang Poly Luo Lanxiang Valley 91,103.95
The Ningbo Poly Lakeside World 70,614.73
The Chongqing Poly Flowers in City Center 93,538.01
Chongqing Poly Linyuxi 23,410.65
The Chongqing Poly River Pearl 24,090.09
The Chongqing Poly Champagne Garden 1,956.89
Chongqing Poly Aishangli 72,755.98
The Nanchang Poly International Garden Mid-Levels 18,072.82
Nanchang Poly Lily Garden 21,041.87
The Qingdao Poly Haishang Luolan 162,481.68
The Qingdao Poly Champagne International 94,776.62
Qingdao Poly Leaf Mansion 92,217.70
Qingdao Poly Manyueshan 104,223.79
POLY REAL ESTATE GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2013
Notes to Financial Statements Page 135
Assets type Project Book value (RMB’0,000)
The Foshan Poly East Bay 32,571.23
The Qingyuan Poly Garden 7,437.95
The Yang Jiang Poly Silver Beach 115,897.70
Xi'an Poly Gold Champagne 42,512.08
Xi'an Poly Spring Plaza 76,743.33
Sub-total 6,142,391.76
Investment properties
Guangzhou Poly Center 36,596.11
The Guangzhou Poly International Plaza 20,900.76
The Guangzhou Poly World Trade Center 210,507.81
The Nanhai Poly Water City 111,337.83
Sub-total 379,342.51
Fixed assets The Guangzhou Poly International Plaza 7,799.56
Total 6,529,533.83
10 Commitments
10.1 Significant commitments
10.1.1 There was neither outbound investment contract that has been signed but not
performed or fully performed nor relevant financial expenses.
10.1.2 Signed contracts with large amount under performance or to be performed and their
financial impact
As at December 31, 2013, the outstanding capital to be provided as agreed in signed
contracts (mainly land and construction and installation contracts) reached an amount of
RMB 4,317,757,400, which shall be paid by the Company in several years upon
performance of obligations by other contract parties under the contracts. The details are as
follows.
(Unit: RMB’0,000):
Item Contract
amount
Accumulated
amount paid
Balance as at
December 31,
2013
Payment within
1 year
Payment
within 1-2
years
Payment
within 2-3
years
Payment for
over 3 years
Land transfer
contract 4,971,717.02 2,638,947.70 2,332,769.32 1,830,800.63 315,000.00 186,968.69 0.00
Construction &
installation project
contract 10,594,010.16 6,503,117.03 4,090,893.13 3,102,916.53 711,884.91 221,367.18 54,724.51
Other agreed
expenses 19,640.16 11,526.87 8,113.29 7,316.11 523.62 268.08 5.48
Total 15,585,367.34 9,153,591.60 6,431,775.74 4,941,033.27 1,027,408.53 408,603.95 54,729.99
10.1.3 There were neither signed significant lease contracts being performed or to be
performed nor their financial impact for the current period in 2013.
10.1.4 There were no signed significant merger & acquisition agreements being performed
or to be performed in the current period in 2013.
10.1.5 There were no signed significant restructuring plans being performed or to be
performed in the current period in 2013.
10.2 Performance of commitments in prior periods
There are no commitments in prior periods required to be disclosed.
POLY REAL ESTATE GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2013
Notes to Financial Statements Page 136
11 Post balance sheet events
11.1 There are no significant post balance sheet date events required to be disclosed.
11.2 Post balance sheet date profit distribution
On March 29, 2014, the Company’s board of directors approved the motion for 2013 profit distribution
and transfer of capital reserves to share capital, in which the Company plans to distribute cash dividends
of RMB 2.94 (including tax) for every 10 shares to all shareholders with the dividend amounting to
RMB 2,098,570,350.95, and to issue 5 shares for every 10 shares of capital reserves, based on the total
shares of 7,137,994,391.00 as at December 31, 2013. This motion is yet to be submitted to the general
meeting of shareholders for approval.
11.3 There are no other post balance sheet date events required to be disclosed.
12 Other significant events In 2010, certain China Construction Bank staff was suspected of colluding with social lawbreakers in
forging seals for illegal appropriation of funds totaling RMB 90,000,000 that was deposited at the
Jiefang Park Road Sub-branch of China Construction Bank by Poly Bogaohua (Wuhan) Real Estate Co.,
Ltd. This event was already disclosed in the Company’s 2010 annual report. The funds totaling RMB
20,000,000 that had been frozen has been relieved and recovered in 2010, with the rest of RMB
70,000,000 still unrecovered. According to the facts, evidence and relevant judicial documents, this
deposit should be under protection by governing laws. On the one hand, the Company continues to
recover the funds through litigation proceedings and on the other hand strengthens the request for
collection of funds from the bank. As the criminal trials for individuals involved in this case are still in
process, recovery of funds will have to be after the verdict to enter into force.
13 Notes to the main items of financial statements of parent company (All the following amounts are expressed in RMB unless otherwise stated)
13.1 Accounts receivable
13.1.1 Aging analysis of accounts receivable:
Aging
Balance as at December 31, 2013 Balance as at January 1, 2013
Book balance Provision for bad debt Book balance Provision for bad debt
Amount Proportion
(%) Amount
Proportion
(%) Amount
Proportion
(%) Amount
Proportion
(%)
Within 1 year
(including 1 year) 5,240,000.00 59.52 262,000.00 5.00 27,926,383.18 29.40 1,396,319.16 5.00
1-2 years (including
2 years) 2,722,762.20 30.93 136,138.11 5.00 3,539,292.55 3.73 176,964.63 5.00
2-3 years (including
3 years) 840,589.55 9.55 42,029.48 5.00
Over 3 years 63,505,618.82 66.87 3,175,280.94 5.00
Total 8,803,351.75 100.00 440,167.59 5.00 94,971,294.55 100.00 4,748,564.73 5.00
13.1.2 Accounts receivable by type:
Type
Balance as at December 31, 2013 Balance as at January 1, 2013
Book balance Provision for bad debt Book balance Provision for bad debt
Book balance
Provision
for bad
debt
Book balance
Provision
for bad
debt
Book balance
Provision
for bad
debt
Book balance
Provision
for bad
debt
1. Accounts receivable
with large single amount
and accrued for provision
of bad debt on a single
basis
POLY REAL ESTATE GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2013
Notes to Financial Statements Page 137
Type
Balance as at December 31, 2013 Balance as at January 1, 2013
Book balance Provision for bad debt Book balance Provision for bad debt
Book balance
Provision
for bad
debt
Book balance
Provision
for bad
debt
Book balance
Provision
for bad
debt
Book balance
Provision
for bad
debt
2. Accounts receivable
accrued for provision of
bad debt by portfolio:
Accounts receivable
accrued for provision of
bad debt by percentage of
outstanding amount in
portfolio
8,803,351.75 100.00 440,167.59 5.00 94,971,294.55 100.00 4,748,564.73 5.00
Sub-total of portfolios 8,803,351.75 100.00 440,167.59 5.00 94,971,294.55 100.00 4,748,564.73 5.00
3. Accounts receivable
with insignificant single
amount but accrued for
provision of bad debt on a
single basis
Total 8,803,351.75 100.00 440,167.59 5.00 94,971,294.55 100.00 4,748,564.73 5.00
No accounts receivable with significant single amount were provided for allowances for bad debt on an individual basis as at December 31, 2013. Accounts receivable in portfolio with allowances for bad debt provided using the percentage method
Name of portfolio Book balance Proportion of provision (%) Provision for bad debt
Within 1 year (including 1 year) 5,240,000.00 5.00 262,000.00
1-2 years (including 2 years) 2,722,762.20 5.00 136,138.11
2-3 years (including 3 years) 840,589.55 5.00 42,029.48
Over 3 years
Total 8,803,351.75 5.00 440,167.59
There were no accounts receivable with insignificant single amount but accrued for
provision for bad debt on a single basis as at December 31, 2013.
13.1.3 No accounts receivable were reversed or recovered in 2013.
13.1.4 No accounts receivable were actually written off during the reporting period.
13.1.5 Of accounts receivable as at December 31, 2013, no amounts were due from shareholders holding more than 5% (inclusive) voting shares of the Company.
13.1.6 Top five accounts receivable
Company name Relationship with
the Company Book balance Aging
Proportion in total
accounts receivable (%)
1. China Merchants Bank,
Guangzhou Branch Customer 2,722,762.20 1-2 years 30.94
2. Ma Minlan Customer 576,000.00 2-3years 6.54
3. Xu Yicha, Wang Ruiyu Customer 500,000.00 Within 1 year 5.68
4. Yan Weixing Customer 450,000.00 Within 1 year 5.11
5. Zhong Jinlin Customer 400,000.00 Within 1 year 4.54
Total 4,648,762.20 52.81
13.1.7 There were no account receivables from related parties as at December 31, 2013.
POLY REAL ESTATE GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2013
Notes to Financial Statements Page 138
13.1.8 There were no accounts receivable whose recognition was terminated due to transfer
of financial assets as at December 31, 2013.
13.1.9 There were no accounts receivables transferred whose recognition was fully
terminated in 2013.
13.1.10 There were no asset backed securities transactions in 2013 using account
receivables as the underlying asset subject matter.
POLY REAL ESTATE GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2013
Notes to Financial Statements Page 139
13.2 Other receivables
14.2.1 Aging analysis of other receivables
Aging
Balance as at December 31, 2013 Balance as at January 1, 2013
Book balance Provision for bad debt Book balance Provision for bad debt
Amount Proportion (%) Amount Proportion (%) Amount Proportion (%) Amount Proportion (%)
Within 1 year
(including 1 year) 46,307,610,775.69 93.64 143,241.00 22,064,010,441.05 75.55 1,691,157.17 0.01
1-2 years
(including 2 years) 2,877,487,884.24 5.82 1,024,771.24 0.04 7,130,630,018.85 24.42 1,167,749.24 0.02
2-3 years
(including 3 years) 261,344,734.84 0.53 1,146,519.20 0.44 9,314,722.60 0.03 465,736.13 5.00
Over 3 years 4,672,461.27 0.01 233,623.06 5.00
Total 49,451,115,856.04 100.00 2,548,154.50 29,203,955,182.50 100.00 3,324,642.54
14.2.2 Other receivables by type:
Type
Balance as at December 31, 2013 Balance as at January 1, 2013
Book balance Provision for bad debt Book balance Provision for bad debt
Amount Proportion
(%) Amount
Proportion
(%) Amount
Proportion
(%) Amount
Proportion
(%)
1. Other receivables with large single
amount and accrued for provision of bad
debt on a single basis
48,637,975,391.62 98.36 28,155,486,003.25 96.41
2. Other receivables accrued for provision
of bad debt by portfolio -
Other receivables accrued for provision of
bad debt by percentage of outstanding
amount in portfolio
50,963,090.00 0.10 2,548,154.50 5.00 66,492,850.80 0.23 3,324,642.54 5.00
Sub-total of portfolios 50,963,090.00 0.10 2,548,154.50 5.00 66,492,850.80 0.23 3,324,642.54 5.00
3. Other receivables with insignificant
single amount but accrued for provision of
bad debt on a single basis
762,177,374.42 1.54 981,976,328.45 3.36
Total 49,451,115,856.04 100.00 2,548,154.50 5.00 29,203,955,182.50 100.00 3,324,642.54 5.00
Other receivables with significant mount were the parent company’s receivables from internal entities totaling RMB 8,637,975,391.62.
POLY REAL ESTATE GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2013
Notes to Financial Statements Page 140
Other receivables in portfolio with allowances for bad debt provided using the percentage method
Name of portfolio Book balance Proportion of
provision (%)
Provision for bad
debt
Within 1 year (including 1 year) 2,864,819.93 5.00 143,241.00
1-2 years (including 2 years) 20,495,424.87 5.00 1,024,771.24
2-3 years (including 3 years) 22,930,383.93 5.00 1,146,519.20
Over 3 years 4,672,461.27 5.00 233,623.06
Total 50,963,090.00 5.00 2,548,154.50
The other receivables with insignificant single amount as at December 31, 2013 were the
parent company’s current account receivable from internal entities.
13.2.3 Of other receivables as at December 31, 2013, no amount was due from shareholders
holding more than 5% (inclusive) voting shares of the Company.
13.2.4 Top five other receivables:
Company name Relationship with
the Company Book balance Aging
Proportion in
total other
receivables (%)
Nature or
content
1. Guangdong Poly Subsidiary of the
Company
9,009,019,890.82 Within 2
years
18.21 Current
account
2. Shanghai Poly Subsidiary of the
Company
3,960,928,927.50 Within 1 year 8.01 Current
account
3.South China
Holdings
Subsidiary of the
Company
2,875,693,444.90 Within 1 year 5.82 Current
account
4. Jiangsu Ningheng Subsidiary of the
Company
2,250,200,225.10 Within 1 year 4.55 Current
account
5. Zhejiang Poly Subsidiary of the
Company
2,186,419,956.94 Within 1 year 4.42 Current
account
Total 20,282,262,445.26 41.01
13.2.5 Nature or content of other receivables with significant amount:
Company name Amount Nature or content of
other receivables
1. Guangdong Poly 9,009,019,890.82 Current account
2. Shanghai Poly 3,960,928,927.50 Current account
3. Poly South China Holdings 2,875,693,444.90 Current account
4. Jiangsu Ningheng 2,250,200,225.10 Current account
5. Zhejiang Poly 2,186,419,956.94 Current account
Total 20,282,262,445.26
13.2.6 There were no other receivables whose recognition was terminated due to transfer of
financial assets as at December 31, 2013.
13.2.7 There were no other receivables transferred whose recognition was fully terminated in
2013.
13.2.8 There were no asset backed security transactions in 2013 using other receivables as
subject matter.
POLY REAL ESTATE GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2013
Notes to Financial Statements Page 141
13.3 Long-term equity investments
13.3.1 Details of long-term equity investments
Investee Accounting
method Cost of investment
Balance as at
January 1, 2013
Increase or
decrease
Including: share
of other
comprehensive
income of
associates and
joint ventures
Balance as at
December 31,
2013
Shareholding
ratio in
investee (%)
Voting
ratio in
investee
(%)
Remark on
different
ratios of
shareholding
and voting in
investee
Provision
for
impairment
Provision
for
impairment
in 2013
Cash dividends in
2013
Associates:
ECIC Fund
Management
Equity
method 40,000,000.00 144,132,780.55 86,086,933.20 230,219,713.75 40 40 24,000,000.00
Sub-total of equity
method 40,000,000.00 144,132,780.55 86,086,933.20 230,219,713.75 24,000,000.00
Subsidiaries:
Poly Guangzhou Cost method 10,200,000.00 10,200,000.00 10,200,000.00 51 51
Poly Zengcheng Cost method 50,000,000.00 50,000,000.00 50,000,000.00 100 100
Guangdong Poly Cost method 200,000,000.00 200,000,000.00 200,000,000.00 100 100
Science City Cost method 60,151,633.08 60,151,633.08 60,151,633.08 100 100
Huachu Corporation Cost method 5,513,643.69 5,513,643.69 5,513,643.69 87.5 87.5
Ziwei Garden Project of
Guangzhou Poly Cost method 65,000,000.00 65,000,000.00 65,000,000.00 50 50
Guangzhou Tianli Cost method 110,710,800.00 110,710,800.00 110,710,800.00 51 51
Guangzhou Gemdale Cost method 39,939,666.56 39,939,666.56 39,939,666.56 100 100
Guangzhou Jinnuo Cost method 9,000,000.00 9,000,000.00 9,000,000.00 60 60
Poly Dongguan Cost method 50,000,000.00 50,000,000.00 50,000,000.00 100 100
Dongguan Investment Cost method 80,000,000.00 80,000,000.00 80,000,000.00 80 80
Zhuhai Poly Cost method 50,000,000.00 50,000,000.00 50,000,000.00 100 100
Zhongshan Poly Cost method 50,000,000.00 50,000,000.00 50,000,000.00 100 100
Hong Kong Hengli Cost method 915,200.00 915,200.00 915,200.00 100 100
Poly International Trade Cost method 51,000,000.00 51,000,000.00 51,000,000.00 51 51
Pazhou Investment Cost method 80,000,000.00 80,000,000.00 80,000,000.00 59.2 59.2
Poly Shenyang Cost method 60,000,000.00 60,000,000.00 60,000,000.00 60 60 144,000,000.00
Liaoning Poly Cost method 80,000,000.00 80,000,000.00 80,000,000.00 80 80
Shenyang Hirota Cost method 201,080,853.55 201,080,853.55 201,080,853.55 100 100
Poly Dalian Cost method 100,000,000.00 100,000,000.00 100,000,000.00 100 100
Changchun Hengfu Cost method 50,000,000.00 50,000,000.00 50,000,000.00 100 100
Changchun Liuhe Cost method 80,000,000.00 80,000,000.00 80,000,000.00 80 80 128,000,000.00
Poly Beijing Cost method 303,687,210.30 303,687,210.30 303,687,210.30 100 100
POLY REAL ESTATE GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2013
Notes to Financial Statements Page 142
Investee Accounting
method Cost of investment
Balance as at
January 1, 2013
Increase or
decrease
Including: share
of other
comprehensive
income of
associates and
joint ventures
Balance as at
December 31,
2013
Shareholding
ratio in
investee (%)
Voting
ratio in
investee
(%)
Remark on
different
ratios of
shareholding
and voting in
investee
Provision
for
impairment
Provision
for
impairment
in 2013
Cash dividends in
2013
Jinchenghua Cost method 22,500,000.00 22,500,000.00 22,500,000.00 75 75 135,000,000.00
Shanghai Poly Cost method 60,865,617.21 60,870,386.26 60,870,386.26 61 61
Junlan Property Cost method 4,000,000.00 4,000,000.00 4,000,000.00 40 40
Shanghai Jianjin Cost method 50,000,000.00 50,000,000.00 50,000,000.00 100 100
Shanghai Jianlin Cost method 100,000,000.00 100,000,000.00 100,000,000.00 100 100 380,000,000.00
Shanghai Jianqiao Cost method 18,000,000.00 18,000,000.00 18,000,000.00 90 90
South China Holdings Cost method 99,953,633.62 100,000,000.00 100,000,000.00 100 100
Foshan Poly Cost method 200,000.00 200,000.00 200,000.00 1 1
Chongqing Investment Cost method 500,000,000.00 100,000,000.00 400,000,000.00 500,000,000.00 100 100 80,000,000.00
Poly Tianjin Cost method 200,000,000.00 200,000,000.00 200,000,000.00 100 100
Poly Wuhan Cost method 108,280,000.00 108,280,000.00 108,280,000.00 100 100 102,704,200.00
Poly Bogaohua Cost method 105,000,000.00 105,000,000.00 105,000,000.00 70 70
Zhejiang Poly Cost method 100,000,000.00 100,000,000.00 100,000,000.00 100 100
Hangzhou Jianyi Cost method 49,000,000.00 49,000,000.00 49,000,000.00 49 49
Poly Chengdu Cost method 200,000,000.00 200,000,000.00 200,000,000.00 100 100 8,417,700.00
Chengdu Baorong Cost method 25,500,000.00 25,500,000.00 25,500,000.00 51 51
Hunan Poly Cost method 43,017,582.83 39,603,534.61 3,000,000.00 42,603,534.61 86 86
Nanchang Ruida Cost method 635,400,000.00 635,400,000.00 635,400,000.00 100 100
Jiangxi Jintongtia Cost method 22,500,000.00 22,500,000.00 22,500,000.00 75 75 52,500,000.00
Manchang Minya Cost method 112,894,545.68 112,894,545.68 112,894,545.68 60 60
Poly Jiangsu Cost method 100,000,000.00 100,000,000.00 100,000,000.00 100 100
Jiangsu Ningyuan Cost method 50,000,000.00 50,000,000.00 50,000,000.00 51 51
Qingdao Anxin Cost method 51,000,000.00 51,000,000.00 51,000,000.00 51 51
Qingdao Industrial Cost method 500,000,000.00 100,000,000.00 400,000,000.00 500,000,000.00 100 100 132,509,167.33
Poly Yangjiang Cost method 60,000,000.00 60,000,000.00 60,000,000.00 100 100
Poly Hailindao Cost method 50,000,000.00 50,000,000.00 50,000,000.00 100 100
Poly Xi’an Cost method 700,000.00 700,000.00 700,000.00 70 70
Poly Baotou Cost method 44,000,000.00 44,000,000.00 44,000,000.00 55 55 82,500,000.00
Hefei Poly Cost method 51,000,000.00 51,000,000.00 51,000,000.00 51 51
Zhengzhou Hengtian Cost method 100,000,000.00 100,000,000.00 100,000,000.00 50 50
Fuli Construction &
Installation Cost method 433,137,341.43 433,137,341.43 433,137,341.43 100 100
POLY REAL ESTATE GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2013
Notes to Financial Statements Page 143
Investee Accounting
method Cost of investment
Balance as at
January 1, 2013
Increase or
decrease
Including: share
of other
comprehensive
income of
associates and
joint ventures
Balance as at
December 31,
2013
Shareholding
ratio in
investee (%)
Voting
ratio in
investee
(%)
Remark on
different
ratios of
shareholding
and voting in
investee
Provision
for
impairment
Provision
for
impairment
in 2013
Cash dividends in
2013
Jiali Decoration Cost method 35,935,700.00 35,935,700.00 35,935,700.00 100 100
Poly Digital Cost method 4,500,000.00 4,500,000.00 4,500,000.00 50 50
Guangzhou Property Cost method 50,114,738.86 50,000,000.00 50,000,000.00 100 100
Poly Agency Cost method 12,347,853.92 12,347,853.92 12,347,853.92 100 100 77,540,000.00
Poly Jinhan Cost method 1,632,000.00 1,632,000.00 1,632,000.00 51 51 38,734,500.00
Zhonggong Design
Institute Cost method 12,724,024.60 10,567,840.00 2,156,184.60 12,724,024.60 60 60 2,156,184.60
Chongqing Golf Cost method 46,301,526.23 46,301,526.23 46,301,526.23 90 90
Xi’an Xinrongjia Cost method 130,460,000.00 130,460,000.00 130,460,000.00 100 100
Poly Sanya Cost method 200,000,000.00 200,000,000.00 200,000,000.00 100 100
Poly Fujian Cost method 100,000,000.00 100,000,000.00 100,000,000.00 100 100
Sanya Baoxin Cost method 150,000,000.00 150,000,000.00 150,000,000.00 50 50
Poly Commercial Cost method 100,000,000.00 100,000,000.00 100,000,000.00 100 100
Shaanxi Mindong Cost method 102,000,000.00 102,000,000.00 102,000,000.00 51 51
Shaanxi Poly Cost method 500,000,000.00 500,000,000.00 500,000,000.00 100 100
Hefei Hexin Cost method 17,000,000.00 17,000,000.00 17,000,000.00 85 85
Hong Kong Hengfu Cost method 6,225,000.00 6,225,000.00 6,225,000.00 100 100
Liaoning Industrial Cost method 200,000,000.00 200,000,000.00 200,000,000.00 100 100
Hunan Investment Cost method 500,000,000.00 500,000,000.00 500,000,000.00 100 100
Wuxi Zhiyuan Cost method 51,000,000.00 51,000,000.00 51,000,000.00 51 51
Zhanjiang Xingsheng Cost method 14,000,000.00 14,000,000.00 14,000,000.00 65 65
Poly Jiangxi Cost method 500,000,000.00 500,000,000.00 500,000,000.00 100 100
Hefei Heheng Cost method 331,509,750.00 331,509,750.00 331,509,750.00 51 51
Guangzhou Urban
Reconstruction Cost method 100,000,000.00 100,000,000.00 100,000,000.00 100 100
Other investees:
Poly Finance Cost method 76,802,985.00 76,802,985.00 76,802,985.00 10 10 3,301,232.86
ECIC Limited
Partnership Cost method 444,000,000.00 564,000,000.00 -120,000,000.00 444,000,000.00
Sub-total of cost method 9,370,701,306.56 6,465,332,720.31 2,904,890,934.60 9,370,223,654.91 1,367,362,984.79
Total 9,410,701,306.56 6,609,465,500.86 2,990,977,867.80 9,600,443,368.66 1,391,362,984.79
POLY REAL ESTATE GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2013
Notes to Financial Statements Page 144
13.3.2 Long-term equity investment sold at a price that is obviously higher than the book
value in 2013
None.
13.4 Revenue and cost of goods sold
13.4.1 Operating income and operating cost
Item Year 2013 Year 2012
Income from main operations 8,962,516,965.30 2,196,616,062.00
Income from other operations 188,916,075.91 164,754,878.29
Total operating income 9,151,433,041.21 2,361,370,940.29
Operating costs 5,680,516,660.96 1,591,071,765.66
13.4.2 The presentation of business by industry is as follows.
Name of
industry
Year 2013 Year 2012
Income from
main operations
Cost of
main operations
Income from
main operations
Cost of
main operations
Property
sales 8,962,516,965.30 5,652,516,110.15 2,196,616,062.00 1,561,928,608.04
Total 8,962,516,965.30 5,652,516,110.15 2,196,616,062.00 1,561,928,608.04
13.4.3 The presentation of main business operations by region is as follows.
Name of
industry
Year 2013 Year 2012
Income from
main operations
Cost of
main operations
Income from
main operations
Cost of
main operations
Guangzhou
region 8,962,516,965.30 5,652,516,110.15 2,196,616,062.00 1,561,928,608.04
Total 8,962,516,965.30 5,652,516,110.15 2,196,616,062.00 1,561,928,608.04
13.4.4 Revenue from top five customers
Name of customer Total operating income
Proportion in total operating
income
of the Company (%)
Guangdong Material Industry (Group) Co.,
Ltd. 1,567,718,000.00 17.13
Guangzhou Automobile Group Co., Ltd. 1,318,672,000.00 14.41
Liang Jiaxiang 18,300,000.00 0.20
Hong Cuiping 14,670,000.00 0.16
Xie Peiting 14,600,000.00 0.16
Total 2,933,960,000.00 32.06
13.5 Details of investment income
13.5.1 Details of investment income
Item Year 2013 Year 2012
Long-term equity investment income calculated by cost method 1,367,362,984.79 1,568,441,376.11
Long-term equity investment income calculated by equity method 110,086,933.20 82,464,084.02
Investment income from disposal of long-term equity investment 21,975,390.44
Investment income from holding held-for-trading financial assets
Investment income from holding held-to-maturity investment
Investment income from holding available-for-sale financial assets
Investment income from disposal of held-for-trading financial assets
Investment income from held-to-maturity investment
Investment income from available-for-sale financial assets
Others
Total 1,477,449,917.99 1,672,880,850.57
POLY REAL ESTATE GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2013
Notes to Financial Statements Page 145
13.5.2 Long-term equity investment income calculated using cost method
Investee Year 2013 Year 2012 Reason for increase or decrease in
comparison with year 2012
Fuli Construction &
Installation 300,000,000.00
Guangzhou Gemdale 176,000,000.00
Poly Beijing 182,940,000.00
Shanghai Jianjin 160,000,000.00
South China
Holdings 134,600,000.00
Poly Shenyang 120,000,000.00
Tianjin Poly 102,568,000.00
Shanghai Jianlin 380,000,000.00 There were no dividends in 2012.
Total 380,000,000.00 1,176,108,000.00
Note: The above investment income accounts for more than 5% of total profits.
13.5.3 Long-term equity investment income calculated using equity method
Investee Year 2013 Year 2012 Reason for increase or decrease
in comparison with year 2012
ECIC Fund Management 110,086,933.20 82,464,084.02 Increase of profit of investee in
2013
13.5.4 There were no significant restrictions in collecting the remittance of investment
income in the current period.
13.6 Supplementary information to the statements of cash flows
Item Year 2013 Year 2012
1. Net profit adjusted to cash flow from operating activities
Net profit 2,892,153,827.71 1,839,514,158.89
Plus: provision for assets impairment -5,084,885.18 1,606,064.01
Depreciation of fixed assets, depletion of oil and gas assets,
depreciation of productive biological assets 35,457,412.12 39,553,607.92
Amortization of intangible assets 2,283,357.78 1,822,467.55
Amortization of long-term deferred expenses 1,625.01
Losses on disposal of fixed assets, intangible assets and other
long-term assets ("-" for gains) 19,424.52 54,915.28
Losses on write-off of fixed assets ("-" for gains)
Losses on changes in fair value ("-" for gains)
Financial expenses ("-" for gains) 354,219,885.94 -154,995,176.18
Investments losses ("-" for gains) -1,477,449,917.99 -1,672,880,850.57
Decreases in deferred income tax assets ("-" for increases) -25,819,160.06 -1,235,385.27
Increases in deferred income tax liabilities ("-" for decreases)
Decreases in inventories (“-” for increases) 3,880,146,627.24 -863,078,730.62
Decreases in operating receivables (“-” for increases) -19,634,465,147.52 -1,902,184,062.95
Increases in operating payables (“-” for decreases) 18,840,755,721.97 5,707,204,183.28
Others
Net cash flows from operating activities 4,862,218,771.54 2,995,381,191.34
2. Significant investing and financing activities not involving
cash receipt and payment
Conversion of debt into capital
Convertible corporate bonds maturing within one year
Fixed assets acquired under financing leases
3. Net changes in cash and cash equivalents
Balance of cash as at December 31, 2013 3,489,569,720.57 7,097,116,519.52
Less: Balance of cash as at January 1, 2013 7,097,116,519.52 1,857,308,384.78
Plus: Balance of cash equivalents as at December 31, 2013
POLY REAL ESTATE GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2013
Notes to Financial Statements Page 146
Item Year 2013 Year 2012
Less: Balance of cash equivalents as at January 1, 2013
Net increase in cash and cash equivalents -3,607,546,798.95 5,239,808,134.74
14 Supplementary information (All the following amounts are expressed in RMB unless otherwise stated)
14.1 Details of non-recurring profit and loss in the current period
14.1.1 According to the Announcement No. 1 on Information Disclosure for Companies
Issuing Securities to the Public - Non-recurring Profit and Loss (2008) [Notice [2008]
No. 43 of the China Securities Regulatory Commission], the non-recurring profit and
loss details of the Company are presented as follows.
Item Amount Remark
1. Gain or loss on disposal of non-current assets, including the offset of
provision for assets impairment 446,684.77
2. Approval beyond authority, or documents without formal approval, or
sporadic tax return, deduction and exemption
3. Government subsidies included in current profit and loss (closely related to
enterprise business, excluding the government subsidies with quota or quantity
in accordance with the unified state standards)
4. Payment for the use of state funds charged from non-financial enterprises and
included in current profit and loss
5. Gain arising from the situation when the cost of acquisition of the investment
of subsidiaries, associates and joint ventures is less than the fair value of shares
of net identifiable assets of investee upon the acquisition of investment
6. Gain or loss on exchange of non-monetary assets
7. Gain or loss on entrusting others to make investments or manage assets
8. Provision for assets impairment due to force majeure, including natural
disasters and etc.
9. Gain or loss on debt restructuring
10. Enterprise restructuring charges, including charges for staffing, integration
and etc.
11. Gain or loss arising from the excess of unfair transaction price over the fair
value of the transaction
12. Current net profit of subsidiaries formed by the combination of enterprises
under the common control from January 1, 2013 to the combining date
13. Gain or loss from contingencies not related to normal business of the
Company
14. Gain or loss on changes in fair value of held-for-trading financial assets,
trading financial liabilities except for the effective hedging business related to
normal business of the Company, and the investment income from disposal of
held-for-trading financial assets, trading financial liabilities and
available-for-sale financial assets
15. Reversal of provision for impairment of accounts receivable for which
impairment tests were made on a single basis
16. Gain or loss on outward entrusted loan
17. Gain or loss on changes in fair value of investment properties of which the
subsequent measurements were made based on the fair value
18. Effect of one-off adjustment for current profit and loss as required by tax
laws and accounting rules on current profit and loss
19. Income from trustee fees for operation on commission
20. Other non-operating income and expenses other than the above items 94,425,515.20
21. Other items of profit and loss in conformity with the definition of
non-recurring profit and loss
22. Effect of minority equity -5,012,037.81
23. Effect of income tax -27,657,704.38
Total 62,202,457.78
POLY REAL ESTATE GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2013
Notes to Financial Statements Page 147
14.1.2 The Company did not classify any non-recurring profit and loss items, which either
are “other profit and loss items meeting definition of non-recurring profit and loss
items” or are non-recurring profit and loss items as judged based on the Company’s
business nature and operations, as recurring profit and loss items.
14.2 Rate of return on net assets and earnings per share:
According to “Rule 9 on Information Disclosure by Companies Offering Securities to the Public-
calculations and Disclosures of Rate of Return on Net Assets and Earnings Per Share (revised in
2010)” (Notice [2010] No. 2 of China Securities Regulatory Commission), Announcement No. 1
on Information Disclosure by Companies Offering Their Securities to the Pubic-Non-recurring
Profits and Losses (2008) (Notice [2008] No. 43 of China Securities Regulatory Commission)
issued by China Securities Regulatory Commission, the rate of return on net assets and earnings
per share are as follows.
Profit during the reporting period
Weighted average
rate of return on net
assets (%)
Earnings per share (RMB)
Basic earnings per share Diluted earnings per
share
Net profit attributable to ordinary
shareholders of the Company 22.95 1.51 1.51
Net profit attributable to ordinary
shareholders of the Company after deducting
the non-recurring profit and loss 22.81 1.50 1.50
14.3 Fluctuations of main financial statement items and the reasons (unit: RMB’0,000)
14.3.1 Balance sheet
Item
Balance as at
December 31,
2013
Balance as at
January 1,
2012
Amount of
movement
Extent of
movement (%) Reason for movement
Other
receivables 773,688.74 251,221.94 522,466.80 207.97
Increases in current accounts with
shareholders of cooperative
partners of associates, joint
ventures and subsidiaries
Inventories 23,990,729.60 18,964,382.31 5,026,347.29 26.50
Increases in land price and
engineering cost of real estate
projects
Long-term
equity
investment
338,208.29 135,079.42 203,128.87 150.38
Increase in recognition of
adjustment for profit and loss of
associates and joint ventures
Fixed assets 198,503.95 137,843.13 60,660.82 44.01 Increases in use of investment in
self-use and self-run properties
Accounts
payable 1,867,070.34 1,279,288.76 587,781.58 45.95
Increases in cost withheld,
expenses of real estate and project
funds payable
Tax payables -621,852.52 -408,459.76 -213,392.76 -52.24 Increases in taxes withheld for
advance house purchase payments
Other payables 2,583,519.58 1,529,202.76 1,054,316.82 68.95 Increases in the payment from
partners of subsidiaries
Long-term
borrowing 7,510,130.06 5,585,041.33 1,925,088.73 34.47
Duly increases in loans according
to the demands for funds to
expand the operating scale
Bonds payables 298,954.87 298,954.87 New issuance of USD bonds
Minority equity 1,739,030.66 1,229,313.97 509,716.69 41.46
Increase of minority shareholders’
contributions and cooperative
corporations
POLY REAL ESTATE GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2013
Notes to Financial Statements Page 148
14.3.2 Income statement
Item Year 2013 Year 2012 Amount of
movement
Extent of
movement (%) Reason for movement
Operating
income 9,235,552.42 6,890,575.67 2,344,976.75 34.03
Increases in floor area for
completion and growth of other
business
Operating costs 6,265,521.52 4,397,208.18 1,868,313.34 42.49 Growth of operating income resulted
in increase of cost
Selling expenses 218,517.64 164,561.09 53,956.55 32.79
Increases in project in sale and sales
volume, resulting in increases in
advertising expenses, promotion
expenses, employee compensation
and other expenses
Investment
income 63,505.26 41,136.90 22,368.36 54.38
Profit growth gained by associates
and joint ventures
15 Approval for disclosure of financial statements These financial statements were approved by the board of directors on March 29, 2014.
Poly Real Estate (Group) Co., Ltd.
March 29, 2014