Contents...Contents 02 Corporate Information 03 Corporate Profile 04 Management Structure 05...

Contents

02 CorporateInformation03 CorporateProfile04 ManagementStructure05 FinancialHighlights06 MajorEventsfortheYear10 LettertotheShareholders12 ReportofChiefExecutiveOfficer16 ManagementDiscussionandAnalysis37 BiographicalDetailsofDirectorsandSeniorManagement41 CorporateGovernanceReport48 ReportoftheDirectors56 IndependentAuditors’Report57 ConsolidatedFinancialStatements128 FinancialSummary130 MajorPropertiesheldbytheGroup

0� KWG Property Holding Limited Annual Report �007

CorporateInformation

DirectorsExecutive DirectorsMr.KongJianMin(Chairman)Mr.KongJianTaoMr.KongJianNanMr.LiJianMingMr.TsuiKamTim

Independent Non-executive DirectorsMr.LeeKaSze,CarmeloMr.DaiFengMr.TamChunFai

Qualified AccountantMr.TsuiKamTim

Company SecretaryMr.CheungWingLeung

Compliance AdvisorTaifookCapitalLimited

Authorised RepresentativesMr.KongJianMinMr.CheungWingLeung

Audit CommitteeMr.TamChunFai(Chairman)Mr.LeeKaSze,CarmeloMr.DaiFeng

Remuneration CommitteeMr.KongJianMin(Chairman)Mr.TamChunFaiMr.DaiFeng

Nomination CommitteeMr.KongJianMin(Chairman)Mr.TamChunFaiMr.DaiFeng

Registered OfficeCricketSquareHutchinsDriveGrandCaymanKY1-1111CaymanIslands

Principal Place of Business inHong KongRoom6407,64thFloorCentralPlaza,18HarbourRoadWanchai,HongKong

Principal Share RegistrarButterfieldFundServices(Cayman)LimitedButterfieldHouse,68FortStreetP.O.Box705,GeorgeTownGrandCaymanKY1-1107CaymanIslands

Hong Kong Branch Share RegistrarComputershareHongKongInvestorServicesLimitedShops1712–1716,17thFloorHopewellCentre183Queen’sRoadEastWanchai,HongKong

Principal BankersAgriculturalBankofChinaBankofChinaLimitedChinaConstructionBankIndustrialandCommercialBankof China(Asia)LimitedIndustrialandCommercialBankofChinaLimited

AuditorsErnst&Young

Legal AdvisorsastoHongKonglaw:SidleyAustin

astoCaymanIslandslaw:ConyersDill&Pearman

Websitewww.kwgproperty.com

0�KWG Property Holding Limited Annual Report �007

CorporateProfile

KWGPropertyHoldingLimited (“KWGProperty”orthe “Company”) and its subsidiaries (the “Group”)areoneoftheleadinglarge-scalepropertydevelopersinGuangzhouCity. SinceGuangzhouHejingRealEstate Development Limited was established in1995, the Group has focused onquality propertydevelopment that targeted atmedium- to high-incomegroups.Over12yearsofdevelopment,KWGPropertyhasdiversifieditselfintovariousbusinesses,such as thedevelopmentof residential properties,GradeAofficebuildings,villas, townhouses,hotels,serviced apartments, high-end shopping centers,assetsmanagement andpropertymanagement,and extended itsmarket reach fromGuangzhou toSuzhou,Kunshan,ChengduandBeijingtoestablisha strategic networkof target areas in the People’sRepublicofChina(the“PRC“).

In order to provide a solid foundation for futuregrowth, theGrouphas acquired sufficient landreservesfordevelopmentinthenext4–5yearsandisintheprocessofacquiringpremiumlandwithlong-term development potential under sufficient cashflow,healthyfinancialpositionandstableoperation.

In 2007,KWGPropertywas recognizedby variousmedia as oneof the top ten enterprises withmostvaluedbrandsin2007,andwasawardedtheannualaward for the best real estate enterprise and the“Jinding Prize” as the top ten listed PRCpropertydevelopers.


ManagementStructure

• emphasisonacohesiveteamandcollaboration

• clearly-defineddivisionoflabourandduties

• nurturingtalentsandprovidinginternalpromotion

ChairmanChief

ExecutiveOfficer

ExecutiveVice-President

Legal andCompliance

Division

ExecutiveVice-President

Vice-President

Vice-President

ChiefFinancialOfficer

Administrationand Human

Resources Division

Design Division

Sales and StrategicPlanning Division

LandBank Division

Audit Division

Finance Division

Planning andDevelopment

Division

Bidding and Tendering

Management Division

ConstructionManagement

Division


FinancialHighlights

Year Ended 31st December

2007 2006 2005 2004 RMB’000 RMB’000 RMB’000 RMB’000

RESULTSRevenue 3,868,136 654,632 437,748 544,962

Profitattributabletoequityholders 2,683,055 157,156 132,995 128,403

Basicearningspershareattributable toequityholders(RMBcents) 120 9 N/A N/A

ASSETS AND LIABILITIESTotalassets 18,974,533 4,406,334 2,844,626 1,911,476

Totalliabilities 9,702,187 3,419,307 2,235,351 1,535,196

Revenue(inRMB’million)

545 438655

3,868

Profit Attributable to Equity Holders(inRMB’million)

128 133 157

2,683

2004 2005 2006 2007 2004 2005 2006 2007

KWG Property Holding Limited Annual Report �007 0�

MajorEventsfortheYear

Milestone of the Group in 2007

JanuaryTheGroupacquired3parcelsoflandinSuzhouthroughauctionandofficiallyenteredthemarketofSuzhou,theJiangsuProvince.

MarchThe Group entered into a joint management agreement with Starwood Hotels&ResortsWorldwide, Inc.(“StarwoodGroup”)withrespecttoWGuangzhouHotel,SheratonResortHotelandFourPointsbySheratonHotel.KWGPropertyofficiallyenteredthehotelindustry.

MayThe Group entered into a cooperation agreement with Kingdee International Software Group CompanyLimited, the largest softwareprovider in thePRC, forconstructing the informationsystemof thegroup tooptimizetheCompany’sinternalmanagement.

Lang Yue Wan

Project under development

Sujia

nhan

gEx

pres

sway

Shanghai-NanjingExpressway

Yangchenghu

KWG Property Holding Limited Annual Report �007 07


JulyTheGroupwassuccessfullylistedontheMainBoardoftheStockExchangeofHongKongLimited(the“StockExchange”),raisingapproximatelyHKD5,232,500,000.

TheGroupacquired3parcelsoflandinChengduHigh-TechIndustrialDevelopmentZonethroughauctionatapproximatelyRMB3.6billionandenteredthemarketofChengdu,thecapitalofSichuanProvince.

OctoberTheGroupenteredintojointventureagreementwithAetosCapitalAsiaFundsforthestrategiccooperationforthedevelopmentofChengduproject.

DecemberTheGroup launched theGuangzhouLieDeVillageprojectand reachedanagreementwithSunHungKaiProperties Limited and Guangzhou R&F Properties Company Limited to jointly develop the project into alarge-scaleepochalcommercialprojectinGuangzhou.


0� KWG Property Holding Limited Annual Report �007 0�

Major Awards in 2007

Project Awards

Top30propertybrandsinthePRC,2007 Toptenmostvaluedbrandsin2007 2007AnnualAwardfortheBestRealEstateEnterpriseBrand ToptenmostvaluedpropertybrandsinGuangzhouCityin2007 MostpopularpropertybrandsinthePRCin2007 “JindingPrize”foroneofthetoptenPRClistedpropertydevelopers

TheModelPropertyManagement2007 Guangzhoucitizens’toptenfavouriteprojects2007 “ChinaRealEstateGoldenBuildingAward2007”–Thetopluxury residentialpropertyintheCentralBusinessDistrict(“CBD”)

（「金築獎」之最佳CBD花園豪宅）

TheBestVilla2007 EnvironmentalExcellenceCommunityAward2007 Best-sellingproject2007（暢銷樓盤） “ChinaRealEstateGoldenBuildingAward2007”forthebestliving environmentvillas2007（「金築獎」之最佳生態宜居別墅） BestPlanningandDesignDevelopmentinGuangzhou2007 （廣州最佳規劃設計典範樓盤）


0�KWG Property Holding Limited Annual Report �007 0�

Project Awards

“ChinaRealEstateGoldenBuildingAward2007”–Thebestliving environmentboutiquecommunity（「金築獎」之最佳宜居精品社區）

“ChinaRealEstateGoldenBuildingAward2007”–Thebestliving environmentboutiquecommunity（「金築獎」之最佳宜居精品社區）

10 KWG Property Holding Limited Annual Report �007

LettertotheShareholders

Letter to the Shareholders

SinceGuangzhouHejingReal EstateDevelopmentLimitedwas established in 1995, the Grouphasoperated for 12 years. The development ofKWGPropertywasremarkablethatithasdevelopeditselffromasingleprojectdevelopertopresentscaleofcapable of handling 20 projects simultaneously.With themissionof “BuildingQuality for InfiniteExcellence”, theGroup is committed to developmedium to high-end properties and aims atbuildingquality properties and landmarks. TheGrouppursues perfection and quality, and suchpursuit helps cult ivate the att itude of workprevailed in theGroup and propel theGroup toinnovationandsustainabledevelopment.

Inordertoseekfurtherroomfordevelopmentandenhance its competitiveness,KWGPropertywaslistedontheMainBoardoftheStockExchangeon

3July2007.ListingnotonlyprovidestheCompanywith funds for further development, but alsosymbolizes the connectionof theGroup’s accesstotheinternationalcapitalmarketandthismarksaneweraoftheGroup’sdevelopment.

Developing fromaprivate-owned company to aninternational public company involves a changeofnatureandthismeansthatweshallhavemoreresources and a larger platform for developmentand yet we shall takemore responsibilities.Weshould provide products and services of higherquality to satisfy thedemandof quality housingfrom more regions and people. In return for theconfidenceof investors in us,wemust putmoreeffort to realize the values of the Group. As alisted company,we shall undertakehigher socialobligationsand responsibilitiesand it isour targettoaddcharmtoourcityandtocreatewealthforoursociety.

Kong Jian MinChairman

11KWG Property Holding Limited Annual Report �007

LettertotheShareholders

In2007,thePRC’sgrossdomesticproduct(“GDP”)amounted to approximately RMB24,661.9billion,representing an increase of 11.4% and thisdemonstrates the strong economic developmentof the PRC. Al though the government hasimplementedmacro-economiccontrolpoliciesandmeasurestosafeguardandpromotethesustainablehealthy development of theproperty market, thePRCpropertymarket still enjoys a robustdemandand growth potentialwith the rising incomeofresidents, conceptual change in consumption anddemandforhigherlivingstandard.WebelievethatKWGPropertycouldcontinuetodeliveragloriousresults with our adherence to theour customer-oriented approach and our determination toharness our established edge inKWGProperty’squality products and services as well as theeffort and support fromall shareholders and allcolleagues.

I would l ike to express my grat itude to theshareholders, investors, business partners andclientsfortheirtrustinus,andalsotothedirectorsand all colleagues.KWGPropertywill,with ourunswervingcommitment,pioneerthedevelopmentof property developmentmarket in the PRC inordertobringallofyouwithbetterresults.

Kong Jian MinChairman and Executive Director

26March2008


ReportofChiefExecutiveOfficer

Dearshareholders,

Thanksforyourunremittingsupport.Iamhonouredto sharewith you the first full year resultsofKWGProperty since its lisitngon the Stock Exchangeon3 July 2007 and witness the remarkable results ofKWG Property in 2007. This report includes theinformation in respect of theoperating results,brand achievements and land banks aswell as thedevelopment strategy and analysiswith respect tothemacro-economic control and change in policiesandregulationsoftheindustry.

Year 2007 was amilestone in the history of theCompany’s development. The Company wassuccessfully listed on the Stock Exchange in July ofthis year after 12 years of tremendous efforts. Ourefforts were recognized by investors through theoversubscriptionof 227 times in public offering,whichdefinitely liftedour spirit.At the same time,the Companyhas transformed froma regionalprivate-owned company to an international publiccompany and obtained requisite funds for businessexpansion and development with strengthenedmanagement structure and equity structure afterlisting. The competitivenessof theCompanywassignificantly enhanced, enabling the Company tocapturebetteropportunitiesinthemarket.

1. Overview of the 2007 real estate market in the PRCIn 2007, the economy of the PRC continuedto develop with a GDP growth of 11.4%.The corresponding rise in the living standardand purchasing power of consumers and thecontinuousgrowth in the residents’ demandon housing had a posit ive impact on the

development of property. Supported by thehuge demand and all the favourable factors,a significant growth in property market wasrecorded. In the first threequarters, the saleprice of housing in 70 medium to large citieshad an average cumulative increaseof 6.7%,in which the price of newly built housing hadan increase of 7.2%. The sales of commodityhouses inGuangzhou, being the strongholdof theGroup,was robust. Sales increaseds igni f icant ly by 49.9% whi le sa les areaincreased significantly by 25.1%and suchgrowthmadeGuangzhoutobetheregionwiththe most rapid growth in property market inChina.

Fromthesecondhalfof2007,thegovernmentimplementedaseriesofmacro-economiccontrolmeasureswith an aim toprevent economicgrowth from overheating and safeguard thecontinuously healthy development of thereal estate market. These measures includedraising the interest rate on loans, increasingthedownpayment of second apartments andcrackingdownon idle lands, inanattempt tocontrolthemarketthroughallrelevantspectraof the real estate industry. Thesemeasureshad a regulating and stabilizing effect on themarket. With autonomous consumption beingmore rational, thehigher entry barrier andthegrowing trend inmerger and acquisitioncaused themarket to bemoremature.Anenterprisewithdisciplinedoperationandedgesin sufficient capital, brand andmanagementwillacquirebettermarketposition.



Under such situation, theGroupwonboththe market and public acclaim with its qualityproducts. Revenue grew by4.9 times in thewholeyearandgrossprofitsgrewby9.2times.

AccordingtotheforecastofEconomicBluebook2008 issuedbyChineseAcademyof SocialScience,agrowthtrendinthepropertymarketin the PRCwould beobserved , supportedby factors which enable the sustainabledevelopmentpersisted, including continuouseconomic growth, increas ing income ofresidents in cities and towns, acceleration ofurbanizationand residents’ ascendingdemandfor living standard. Meanwhile, year 2008 willbetheyearofOlympicGamesandtheholdingofOlympicGameswillserveasthemomentumthatwillpropeltheeconomyofthePRC.Asthepropertyindustryisapillarforotherindustry,itremainsoptimistictoitsfuturedevelopment.

2. Significant growth in operating resultsKWGPropertyachievedbrilliantresultsin2007under its development strategy and favorablemarket environment. Turnover and profit forthe year increased by 490.9% and 1,606.8%respectively compared to the correspondingperiod of last year. Robust business growthgaveclueonthedevelopmentdirectionoftheGroup.

In 2007, theGroup recorded anoperatingincome of RMB3,868.1 mil l ion, in whichincomegeneratedfrompropertydevelopment,propertyinvestmentandpropertymanagementamounted to RMB3,846.8million, RMB11.6

million andRMB9.7million andaccounted for99.5%,0.3%and0.2% respectively,whileprofit for the year increased to RMB2,682.8million, profit attributable to shareholderstotaledtoRMB2,683.1millionandearningspersharewasRMB120cents.

3. Rapidly expanding land bankQualityandadequatelandbankisindispensableforthedevelopmentofrealestate.Tomaintainthe sustainable development, the Groupobtained substant ia l land bank throughauction, bidding and cooperationwith othercompanies.Apart fromsteadydevelopmentofitsGuangzhoustronghold,theGroupbegantograduallyexpand tootherpotential cities suchas Suzhou,Chengdu,Kunshan andBeijing asa complement to the Group’s developmentstrategy. In selecting sites for projects, theGroupembracesaprudentandsafeprinciple.Itendeavouredtoobtainabundantlandresourcesatreasonablecostwithpreliminarystudiesandevaluationofthefeasibilitywithrespecttotheplanningon themarket it operated aswell astheprofessionalexperienceofitsdevelopment.

Thegross floor areaof thenew landbankofthe Group reached approximately 4.40 millionsq.m. intotal,andtheareaattributabletotheGroupwas approximately 3.70million sq.m..These parcels of lands were situated at keylocationswithhighpotential of increment invalue.Asat31December2007,theGrouphadalandbankofapproximately4.9millionsq.m.,whichisexpectedtobeadequateforthesteadyand sustainable developmentof the Group inthenext4to5years.



4. The impact o f the brand i s expanding ceaselessly“BuildingQualityforInfiniteExcellence”,beingthe coremissionof theGroup, has led thedevelopmentdirectionofalloperatingactivitiesof theGroup. All products and services werewell acclaimed and recognized in the marketand the industry in 2007 and thus its impactand reputationof thebrandnamehadbeenenhancedsignificantly.

KWGPropertywasoneofthecompanieswhichreceived themost attentionof consumers in2007 and was awarded numerous prizes suchas “Guangzhou residents’ top ten favouriteprojects 2007”, “The most popular propertybrand2007”(“中國最具人氣房地產品牌2007”)and “Jinding Prize” – top ten listed propertysector companies in the PRC. Brandnameeffectnotonlyledtosuccessfulpromotion,butalsoaddedvaluetotheprojectandthisallowedourproductstobesoldatapremiumoverthemarketprice.

Whilemaintainingorganic growth, theGroupvigorously commenced strategic cooperationwith domestical andoverseas well-knownbranded companies. The Group enteredinto cooperation agreementwith StarwoodGroup to jointly establish W GuangzhouHotel, SheratonResortHotel and Four Pointsby Sheraton Hotel; theGroup entered intostrategic cooperation withGuangzhou R&F

Properties Company Limited and SunHungKai Properties Limited, to develop the largecommercial project ofGuangzhou Pearl RiverNewTownLieDeVillage,witheachpartybeingabletofullymanifestitsstrength.

Theoperationsof theGroup remainedhighlydynamic and maintained room for sustainabledevelopment throughpersistent brandnamepromotion, and its unremitting efforts instrengthening and enhancing the brand nameimpact,whileexploringtheintrinsicvalueofitsbrand name according to the development oftheGroup,andsuchinitiativeiscompletedwiththe synergymanifestedunder the cooperationwith strongplayers.KWGProperty is currentlyone of the famous property companies inGuangdongandeventhewholecountryanditispopularamongconsumers.



5. Business outlook and development strategyThe Group has established a household brandnameandedgesintheconstructionofmediumtohigh-end products are widely recognizedby the industry.TheGroupwouldcontinue todeliver quality products under the leadershipof passionate andprofessionalmanagementteam.TheGroupwill rollout its strategicplanof development in target areas with growthpotential,coveringSuzhou,Kunshan,Chengduand Beijing in addition toGuangzhou. TheGroupwilldevelopstepacrossthethresholdofdevelopingcommercialpropertiesandset footin the development of residential propertieswithaviewtodiversifyingtheopportunitiesforitsdevelopment.

The Group expects that it would have anincreaseinthedeliveryofareaandthescaleofdevelopmentin2008.

Last but not least, I (on behalf of the Group)would l ike to express my sincere gratitude toall the dedicated colleagues, all shareholders,workingpartners and invaluable clientswho showconsiderationandsupporttotheGroup.

Kong Jian TaoChief Executive Officer

26March2008


ManagementDiscussionandAnalysis

Financial reviewRevenueRevenue of theGroup comprises primarily the (i) gross proceeds, net of business tax, from the sale ofproperties, (ii)gross recurringrevenuereceivedandreceivable from investmentpropertiesand (iii)propertymanagement fee income. The revenue is primarily generated from its three business segments: propertydevelopment,propertyinvestmentandpropertymanagement.

The revenue increasedby 490.9% to approximately RMB3,868.1million in 2007 fromapproximatelyRMB654.6millionin2006,primarilyattributabletotheincreaseinsalesofpropertiesin2007.

In2007,therevenuegeneratedfrompropertydevelopment,propertyinvestmentandpropertymanagementareapproximatelyRMB3,846.8million,RMB11.6millionandRMB9.7million,respectively.

Revenue(inRMB’million)

545 438655

3,868

2004 2005 2006 2007

Gross Profit(inRMB’million)

144 169 202

2,059

2004 2005 2006 2007



Property developmentRevenuegeneratedfrompropertydevelopment increasedby494.7%toapproximatelyRMB3,846.8millionin 2007 fromapproximately RMB646.9million in 2006, primarily attributable to a 173.1% increase inthe total gross floor area (the“GFA”) sold to332,329 sq.m. in2007 from121,692 sq.m. in2006anda117.7%increaseintherecognisedaveragesellingpriceofpropertyfromRMB5,315.9persq.m.in2006toRMB11,575.3persq.m.in2007.Thesignificantincreaseintherecognisedaveragesellingpricepersq.m.in2007over2006wasprincipallyduetothesaleofcertainhigh-endproductswithdistinctivedesignsandhigh-qualitylivingenvironment,likeTheCosmosandSkyVilleprojects,andanappreciationintheGuangzhouCitypropertymarket.

Property investmentRevenuegenerated from theproperty investment increasedby241.2% to approximatelyRMB11.6millionin2007fromapproximatelyRMB3.4millionin2006,primarilyattributabletoanincreaseinthenumberofrentalpropertiesleased.InJuly2007,ourmajorinvestmentproperty,InternationalFinancePlace(“IFP”),wascompletedandoperatedtoboosttherentalincomeduringtheyear.

Property managementRevenuegeneratedfromthepropertymanagement increasedby125.6%toapproximatelyRMB9.7millionin2007fromapproximatelyRMB4.3millionin2006,primarilyattributabletoanincreaseinthenumberofpropertiesundermanagement.ThecompletionandoperationofIFPinJuly2007usedtoboostourpropertymanagementfeesincomeduringtheyear.

Profit Attributable to Equity Holders(inRMB’million)

128 133 157

2,683

2004 2005 2006 2007



Cost of salesCost of sales of the Group primarily represents the costswe incur directly for our property developmentactivities.Theprincipalcomponentsofcostofsalesiscostofpropertiessold,whichincludesthedirectcostofconstruction,costsofobtaininglanduserightsandcapitalisedborrowingcostsonrelatedborrowedfundsduringtheperiodofconstruction.

Cost of sales increasedby 299.9% to approximately RMB1,809.2 million in 2007 from approximatelyRMB452.4 million in 2006, primarily due to anoverall increase in cost of properties sold following theincreaseinnumberofprojectssoldandtherisinginaveragelandandconstructioncostsondevelopmentofhigher-endandhigher-qualityproperties.

Land costs per sq.m. increased from RMB435.5 in 2006 toRMB1,327.8 in 2007, principally due to thesaleofTheCosmosprojectwhichwasbuilt inPearlRiverNewTown,aprimelocationofGuangzhouCity.Constructioncostpersq.m. increasedfromRMB3,059.6 in2006toRMB3,790.5 in2007,primarilyduetotheuseofhigher-endfixturesandfurnishingsintheGroup’sluxuryresidentialproject,TheCosmos.

Gross profitGross profit of the Group increasedby 918.2% to approximately RMB2,058.9million in 2007 fromapproximatelyRMB202.2millionin2006.TheGroup’sgrossprofitmarginincreasedto53.2%in2007from30.9%in2006.TheincreaseingrossprofitmarginwasprimarilyduetoanincreaseintheaveragesellingpriceofpropertytoRMB11,575.3persq.m.in2007fromRMB5,315.9persq.m.in2006,primarilyduetoanincreaseinhigher-endandhigher-qualitypropertiestheGroupdevelopedandanoverallincreaseinaveragesellingpricesintheGuangzhouCitypropertymarket.

Other income and gainsOther income and gains increased by 706.6% to approximately RMB206.5 million in 2007 fromapproximately RMB25.6 million in 2006, primarily attributable to thegains on thedisposal of investmentpropertiesofRMB13.8million,asubsidyincomeofRMB7.9million,netexchangegainsofRMB43.2millionandinterestincomeofapproximatelyRMB133.3millionmainlyearnedontheover-subscriptionmoniesfromtheGroup’sinitialpublicoffering(the“IPO”).

Gainsonthedisposalofinvestmentproperties,primarilyrelatingtothesaleofretailshopunitsandcarparkspacesatourLaBali,ColorofUnitedandCityofPerfectionprojects. In2007,thetotalGFAofinvestmentpropertiessoldwas4,991sq.m.,ascomparedto4,453sq.m.in2006.

Selling and marketing costsSellingandmarketingcostsof theGroup increasedby100.6%toapproximatelyRMB65.4million in2007fromapproximatelyRMB32.6millionin2006,whichisprimarilyduetoanincreaseof101.8%inadvertisingexpenses to approximately RMB44.8million in2007 fromapproximately RMB22.2million in2006, largelyattributabletoincreasedadvertisingforourIFP,TheCosmos,Ma’anMountainNo.1,LinghuiChuangzhanCommercialCentre,JinghuGardenandSkyVilleprojects in2007.Sellingandmarketingpersonnelsalariesand benefits for 2007 increased to approximately RMB14.2 million from approximately RMB6.8 million in2006,primarilyasaresultofanincreasedheadcountachievedfromhighersalesvolumein2007.



Administrative expensesAdministrativeexpensesoftheGroupincreasedby188.7%toapproximatelyRMB148.1millionin2007fromapproximatelyRMB51.3millionin2006,primarilyattributabletoanincreasedheadcounttocatchupwiththerapiddevelopmentoftheGroupduringitslistingandafterwards.In2007,twoofficeswerenewlyestablishedinSuzhouandChengdu.TheincreaseofothertaxandsurchargesonsalesofpropertiesandtheexpensesinrelatedtothelistingoftheSharesontheStockExchangealsocontributedtotheincrementin2007.

Other operating expensesOtheroperatingexpensesoftheGroupremainedconstant inbothyears.Theprincipalfactorbehindotheroperatingexpensesrelatedtooperatingcostsoffacilitiesatourresidentialdevelopmentsuchasclubhousesanddiningfacilities.

Fair value gains on investment propertiesFairvaluegainsoninvestmentpropertiesoftheGroupincreasedby1,409.6%toapproximatelyRMB2,288.5million in 2007 from approximately RMB151.6 million in 2006, primarily due to the overall appreciationofproperties in theGuangzhouCity.Additionally, the totalGFAattributable toour investmentpropertiesincreasedfrom41,717sq.m.forretailshopunitsand737carparkspacesattheendof2006to56,309sq.m.foroffice,43,658sq.m.forretailshopunitsand1,126carparkspacesattheendof2007,primarilyrelatedtoour IFPproject.Such increaseprovideda significantlygreaterGFAbaseuponwhich fair valuegainsoninvestmentpropertyaccrued.

Finance costsFinancecostsof theGroup increasedby20.6%toapproximatelyRMB18.7million in2007fromRMB15.5millionin2006,mainlyreflectingtheinterestpaymentsonanewloanofHK$600.0million,whichwasfullyrepaidinSeptember2007.

TaxTax increased by 1,242.5% to approximately RMB1,637.8 million in 2007 from approximately RMB122.0million in2006,primarilydue toan increase inprofit attributable to theequityholdersof theparentandprovisionsforLATasaresultofanincreaseinpropertiessoldin2007,andnetoffwiththetaxeffectonthewrite-downofdeferredtaxassetsandliabilitiesresultedfromthereductionoftheEnterpriseIncomeTaxrateto25%in2008fromthepresent33%.

Profit attributable to the equity holders of the parentProfit attributable to the equity holders of the parent of the Group in 2007 increasedby 1,606.8% toapproximately RMB2,683.1million fromapproximately RMB157.2 million in 2006. Such net profit marginincreased to 69.4% in 2007 from 24.0% in 2006, as a result of the cumulative effect of the foregoingfactors.

�0 KWG Property Holding Limited Annual Report �007


Liquidity, financial and capital resourcesCash positionAsat31December2007, thecarryingamountof theGroup’s cashandbankdepositswasapproximatelyRMB3,436.0million (31December2006: RMB1,006.3million), representing an increaseof 241.4%ascomparedtothatasat31December2006.

Pursuant to relevant regulations in the PRC, certain property development companies of the Group arerequiredtoplaceacertainamountofpre-salesproceedsreceivedatdesignatedbankaccountsasguaranteedeposits for constructionof the relevantproperties.Asat31December2007, thecarryingamountof therestrictedcashwasapproximatelyRMB147.4million(31December2006:RMB202.4million).

Borrowings and charges on the Group’s assetsTheGrouphadanaggregatedborrowingsasat31December2007ofapproximatelyRMB2,720.5million,ofwhichapproximatelyRMB275.1millionwillberepayablewithin1year,approximatelyRMB2,254.5millionwillberepayablebetween2and5yearsandapproximatelyRMB190.9millionwillberepayableover5years.

As at 31 December2007, theGroup’s bank loans of approximately RMB1,763.5millionwere securedbyproperty,plantandequipment,landuserights,investmentpropertiesandcompletedpropertiesheldforsaleoftheGroupwithtotalcarryingvaluesofapproximatelyRMB3,580.6million.

The carrying amounts of all theGroup’s bank loans are denominated in RMBexcept for a secured loanbalanceofapproximatelyHK$851.9millionasat31December2007whichwasdenominatedinHongKongdollars.TheGroup’sborrowingsofapproximatelyRMB1,922.8millionarechargedatfixedinterestratesasat31December2007.

Gearing ratioThegearing ratio ismeasuredby thenet borrowings (total borrowingsnet of cash and cash equivalentandrestrictedcash)overthetotalcapitalandreservesattributabletoequityholdersoftheparent.Asat31December2007,thegearingratiowas-8.4%,i.e.theGroupwasinanetcashposition(31December2006:132.9%).AstheongoingnewprojectdevelopmentandthelandreplenishmentwillutilisetheIPOproceedsandadditionalborrowingswillberaised,ifrequired,thegearingratioisexpectedtobegraduallyincreasedtoareasonablelevel.

Risk of exchange rate fluctuationThe Group mainly operates in the PRC, somost of its revenues and expenses are measured in RMB. Thevalue of RMB against theU.S. dollar and other currencies may fluctuate and is affected by, among otherthings,changesinChina’spoliticalandeconomicconditions.TheconversionofRMBintoforeigncurrencies,including theU.S.dollar and theHongKongdollar, hasbeenbasedon rates setby thePeople’sBankofChina.

During2007,thoughtheexchangeratesofRMBagainsttheU.S.dollarandtheHongKongdollarkeptonincreasing, the Board expects that any fluctuation of RMB’s exchange rate will not have material adverseeffectontheoperationoftheGroup.

�1KWG Property Holding Limited Annual Report �007


Contingent liabilitiesAsat31December2007,theGrouphadthefollowingcontingentliabilitiesrelatingtoguaranteesinrespectofmortgagefacilitiesforcertainpurchasersamountingtoapproximatelyRMB1,558.1million(31December2006:RMB340.8million).Thisrepresentedtheguaranteesinrespectofmortgagefacilitiesgrantedbycertainbanks relating to the mortgage loans arranged for certain purchasers of the Group’s properties. Pursuantto the termsof theguarantees, upondefault inmortgagepayments by thesepurchasers, theGroup isresponsibletorepaytheoutstandingmortgageprincipalstogetherwithaccruedinterestandpenaltyowedbythedefaultingpurchaserstothebanksandtheGroupisentitledtotakeoverthelegaltitleandpossessionoftherelatedproperties.TheGroup’sguaranteeperiodstartsfromthedatesofgrantoftherelevantmortgageloansandendsuponissuanceofpropertyownershipcertificateswhichwillgenerallybeavailablewithinonetotwoyearsafterthepurchaserstakepossessionoftherelevantproperties.

ThefairvalueoftheguaranteesisnotsignificantandtheBoardconsidersthatincaseofdefaultinpayments,thenet realisable value of the related properties can cover the repayment of the outstanding mortgageprincipalstogetherwiththeaccrued interestandpenaltyandthereforenoprovisionhasbeenmade inthefinancialstatementsfortheguarantees.

Use of proceeds from the initial public offeringTheproceeds from theCompany’s issueofnew shares at the timeof its listingon theHongKongStockExchange on3 July 2007, after deduction of related issuance expenses, amounted to approximatelyHK$5,034.0 million. Theseproceeds were applied during the year ended 31December 2007 with theremainingsumofapproximatelyHK$800millionbeingunutilisedasfollows:

– approximately HK$600 million was used to repay the debt incurred in connection with theReorganisation;

– approximatelyHK$1,700millionwasusedtofinancelandcosts;and

– approximatelyHK$1,900millionwasusedtofinanceconstructioncosts.

Employees and emolument policyAsat31December2007,theGrouphasemployedatotalof1,200employees.ThetotalstaffcostsincurredwereapproximatelyRMB66.7millionduringthefinancialyearended31December2007.Theremunerationofemployeeswasbasedontheirperformance,skills,knowledge,experienceandmarkettrend.TheGroupreviews the remunerationpolicies andpackageson a regular basis andwillmakenecessary adjustmentcommensuratewiththepaylevelintheindustry.Inadditiontobasicsalaries,employeesmaybeofferedwithdiscretionarybonusandcashawardsbasedonindividualperformance.

TheCompanyadoptedashareoptionschemeon11June2007underwhichtheCompanymaygrantoptionstoeligibleemployeestosubscribeforthesharesoftheCompany.Particularsoftheschemearesetoutintherelevantsectionsoftheannualreport.Asat31December2007,nooptionshadbeengranted,exercisedorcancelledunderthescheme.

�� KWG Property Holding Limited Annual Report �007


Business reviewLand bankYear 2007 was the year inwhich theGroup extended its development to other influent cities out ofGuangzhou.InadditiontomaintainitsedgesofdevelopmentinGuangdongregion,theGroupsuccessfullyentered into themarket of Suzhou in EasternChina,Chengdu in South-westernChina, LingshuiCity ofHainan inSouthernChina in2007.Later, inJanuary2008,theGroupfurtherextended itsdevelopmenttoBeijingthecapitalcityofChina.ThescopeofdevelopmentisformedwithitsstrongholdinGuangdongandfootprintsinthefourmajorareasofthecountry.

TheGrouphas been committed to acquire quality land in prime location through various channels forenhancingitscapacityofsustainabledevelopment.In2007,theGroupacquired11parcelsofpremiumlandwithGFAofapproximately3.9millionsq.m.byvariousmeanssuchasauction,biddingandlistingforsales.Land bank has grown significantly, inwhich the area attributable to the Group was approximately 3.21millionsq.m..

Overview of new land acquired in 2007

Total GFA Interests attributable to Total GFA attributable to the GroupDistrict Project Location (’000 m2) the Group (’000 m2)

Guangzhou KehuiDevelopmentCentre GuangzhouScienceCity 300 100% 300Suzhou 朗悅灣(WeitangProject) Suzhou 213 100% 213Suzhou LandlotsB,CProject Suzhou 788 100% 788Guangzhou ConghuaProject Conghua 280 100% 280Chengdu Chengdulandlotno.3 SouthNewDistrict 48 65% 32Chengdu Chengdulandlots SouthNewDistrict 618 65% 402 no.9and10Guangzhou LieDeProject PearlRiverNewTown 568 33.33% 189Chengdu Chengdulandlots WesternHigh-TechZone 529 100% 529 no.6and7Suzhou QianDengCountyProject QianDengCounty,Kunshan 146 100% 146Hainan HainanProject LingshuiCounty 266 100% 266Guangzhou J2-2Project PearlRiverNewTown 145 50% 73

Total: 3,901 3,218

On31 January 2008, the Group, through auction, acquiredquality land inMapoCounty, ShunyiDistrict,BeijingoftheGFAof500,000sq.m.whichiswhollyownedbytheGroup.

��KWG Property Holding Limited Annual Report �007


Diversified land bank portfolio (as at 31 December 2007)TotalGFAattributabletotheGroupbygeographicalareas

Development and sales of propertiesFor the year under review, benefiting from the robust economicgrowth inGuangdongand theGroup’sreputationacquiredwith itsdetermination todevelophighqualityprojects, theGrouprecordedsignificantgrowth in sales of properties in 2007, hitting a record high in contracted sale/presale of approximatelyRMB5,000million,representingasignificantandsubstantialincreasecomparedto2006.Asat31December2007, the Group had 6projects available for sale (lease) simultaneously and5projects were successfullydelivered to owners for occupation. Total completed areawas approximately 652,000 sq.m., inwhichsaleableareawasapproximately512,000sq.m.andsalesareasoldwasapproximately361,000sq.m..

Completed area for the year ended 31 December 2007

Interests Total Sold/ attributable completed Saleable presold to the Group GFA GFA GFAProject (%) (’000 m2) (’000 m2) (’000 m2)

LinghuiChuangzhanCommercialCentre 100 46 41 40Cosmos 100 197 145 96SkyVille(PhaseI) 100 108 153 70Ma’anMountainNo.1 100 74 62 49JinghuGarden(PhaseI) 100 125 108 103IFP 100 102 3 3

Total 652 512 361

Chengdu20%

Suzhou25%

Guangzhou50%

Hainan5%



Projects under developmentAsat31December2007,theGrouphad13developmentprojectsunderorplannedfordevelopment,whicharelocatedinGuangzhou,SuzhouandChengdu.

Interests Saleable Expected Expected attributable Total GFA GFA pre-sales completion to the Group City (District) Project Type of Property (’000 m2) (’000 m2) date date (%)

Guangzhou SkyVille Townhouses,apartments 470 466 2ndquarterof JuneandNovember 100% andhotel 2008 2008(PhaseII)

Guangzhou HuiFeng Servicedapartments 100 100 1stquarterof November2008 35% 2008

Guangzhou JinghuGarden Apartments 198 198 1stquarterof May2008 100% 2008 (PhaseII)

Guangzhou 從化上城灣畔 Townhousesandapartments 280 280 2ndquarterof November2008 100% 2008

Guangzhou ChungangZhong Apartments 110 110 2ndquarterof October2008 50% Garden 2008

Guangzhou Kehui Officebuildingand 300 300 3rdquarterof November2008 100% Development retailshop 2008 (PhaseI) Centre

Guangzhou LingFeng Luxuryapartments 180 80 2ndquarterof September2009 100% apartmentsandhotel 2008

Suzhou 朗悅灣 Townhousesandapartments 213 213 2ndquarterof November2008 100% 2008 (PhaseI)

Suzhou Landlotin Apartments 146 146 2ndquarterof June2009 100% Kunshan 2008

Suzhou LandlotsB Apartments,hotel 788 788 4thquarterof June2009 100% andC andoffice 2008(PhaseI) (PhaseI)

Chengdu Landlotno.3 Apartments 48 48 3rdquarterof 2009 65% 2008

Chengdu Landlotsno. Apartments 529 507 3rdquarterof June2009 100% 6and7 2008 (PhaseI)

Chengdu Landlotsno. Servicedapartments, 618 487 4thquarterof November 65% 9and10 apartments,officebuilding 2008 2009(PhaseI) andshoppingmall

Total 3,980 3,723



Investment properties and hotelsWhile developing properties for sales, the Group has also actively diversified its investment propertiesportfoliowithaviewtomitigatingtheaffectofmarketfluctuationsandpolicychanges.Inordertoprovidemorebalancedrevenueandstableincomesourcesandcashflow,theGroupaimsatincreasingthelongtermholdingoftheshareofhotels,shopunits,shoppingcentersandofficebuildingsoperations intheGroup’stotalprofittoapproximately20%.

Duringtheyearunderreview,turnoveroftheGroupfromitsinvestmentonofficepremisesandtheleasingofretailpropertiesamountedtoRMB11,639,000.

(1) HotelsTheGroup is dedicated to the development of luxurious 5-star hotels in prime locations in urbanareaswhilemaintainingbusinessandresorthotels.TheGroup’s3multi-starhotelsinGuangzhouarecurrentlyunderconstruction,while2otherhigh-endshoppingcentersandvariousmulti-starhotels,which are located inGuangzhou,Chengduand Suzhou,were in the stageof planning. To ensurethequalityofourhotel services, theGroupentered intoamanagementagreement for cooperationwithStarwoodGroup,aninternationalrenownedhotelmanagementcorporation,withrespecttotheGroup’sWGuangzhouHotel,SheratonResortHotelinHuaduandFourPointsbySheratonHotel.



(2) Investment properties completed and available for leaseTheGroupalso focuseson investing inhigh-endofficepremises inprimeurban locations to securestablelong-termrentalincome.IFPintheCBDofGuangzhouCity,whichwasinvestedbytheGroup,was completed and delivered to the tenants for occupation in July 2007. This office building wasbuiltwith state-of-the-art technologieswith twobasements connected to the lineno.3 andno. 5of theGuangzhou subway,whichallowshigheraccessibility topublic transportation. Toensure thebest tenantsportfolio, theGroupengagedJonesLangLaSalleasourproperty leaseagent toattractand select tenants and to ensure all the tenants are large-scale multi-national financial institutions.Currently,theaveragemonthlyrentofIFPisRMB210persq.m.Asat25March2008,theGrouphasentered into leasecontractandletterof intentwiththetenantsrepresenting80%ofthetotalGFA.MostofthetenantsarePRCandforeignfinancialinstitutionsandreputablemulti-nationalenterprises.



Projects under development in 2008

Guangzhou Ling Feng/W Guangzhou Hotel – 5-star super luxurious hotel/Supreme luxurious apartments in CBD

Total Site Area (’000 m2) 23

GFA (’000 m2) 180

Interests attributable to the Group 100%

Type of property Luxuryapartments,apartmentsandhotel

Expected schedule of pre-sale 2ndquarterof2008(Residentialareaavailableforsale; hotelheldforinvestment)



Guangzhou Sky Ville/Sheraton Resort Hotel-Large-scale scenery villa project in Guangzhou


GFA (’000 m2) 470


Type of property Townhouses,apartmentsandhotel

Expected schedule of pre-sale 2ndquarterof2008



Guangzhou Kehui Development Centre – One of the major large-scale commercial projects in the center of Guangzhou


GFA (’000 m2) 300


Type of property Officebuildingandretailshop

Expected schedule of pre-sale 3rdquarterof2008



Guangzhou Chungang Zhong Garden – One of the major large-scale residential projects in Guangzhou


GFA (’000 m2) 110


Type of property Apartments




Guangzhou Jinghu GardenOne of the major large-scale residential projects in Guangzhou


GFA (’000 m2) 198


Type of property Apartments

Expected schedule of pre-sale 1stquarterof2008



Guangzhou 從化上城灣畔 – One of the major large-scale residential projects in Guangzhou


GFA (’000 m2) 280


Type of property Townhousesandapartments




Guangzhou Hui Feng – One of the major commercial and residential projects in CBD of Guangzhou


GFA (’000 m2) 100


Type of property Servicedapartments

Expected schedule of pre-sale 1stquarterof2008



Suzhou 朗悅灣 – Large-scale composite residential project in Suzhou


GFA (’000 m2) 213


Type of property Townhousesandapartments




Business outlookThe Board is confident in theprospects of theGroup.With thegradual progressionof thenation-widedevelopment, theBoardbelieves theGrouphas thepotential tobeoneof the largestall-aroundpropertydeveloperinChina.

Work with internationally renowned teams and develop trailblazing productsTheGroupwillavailofitsexcellentbrandandextensiveexperienceandworkwithinternationallyrenownedandleadingteams.Itwillpursuethedevelopmentofqualitypropertiesanddesignanddeveloptrailblazingproducts while enhancing the value of its products for meeting the residential and investment needs ofconsumers.

Implement the development strategy of “Based in Guangzhou with Footprints in other regions”TheGroup successfully acquired severalplotsof land inSuzhou,ChengduandHainan Island in2007andplotsof landinBeijing in2008takingastepforwardtothedevelopmentbyexpandingtoregionsoutsideGuangdongprovince. In 2008, the Groupwill continue to focus on its development inGuangzhou andstrengthen its position in theGuangzhoupropertymarket and expand itsmarket shareby harnessing itsexperience, knowledgeand reputation inGuangzhou.Meanwhile, theGroupwill launcha coupleofnewprojects in regions outside Guangdong province. TheGroup plans to launch 13 projects to themarket in2008,inwhich7ofthemareinGuangdongprovince,and3ofthemareineachofSuzhouandChengdu.

Focus on developing properties for sale and strengthen diversified investment portfolioTheGroup focuses ondevelopingproperties for salewhile retainingquality properties for long-terminvestmentpurposes.TheGrouphasanedgeindevelopingresidenceswhichremaintobethefocusoftheGroup.Besides,theGroupwillstrengthen itsdevelopmentofcommercialpropertiessuchashotels,officesandshoppingmall.Adiversifiedmixof investmenthelpstomaintainabalanceofthe investmentportfolioandensurethesustainablegrowthoftheGroupwithstableincomebyreducingtheriskofover-relianceonanyparticularsectorofthepropertymarket.

Expand land bank appropriately under healthy financial position and stable operationTheGroup’scurrentlandbankissufficientforthesustainabledevelopmentinthenext4to5years.Itwillensurethattheappropriateacquisitionofnewlandswillbeconductedprudentlyunderadequatecashflow,healthyfinancialpositionandstableoperation.Ittakesintoconsiderationoftheproject’sreturnprofileandfuturegrowthpotentialofthe location.Atthesametime,theGroupwillcontinuetomonitorandcontrolourcapitalstructurewhilecontinuingtoutilizeitsabilityofraisingfundsandmaintainingreasonablegearingratio.



Strengthen the construction of quality projects and control of marketing plan, complete projects and achieve sales targetAsanestablishedguideline,theGroupwillfocusonpropertiesdevelopmentandensurestrictcomplianceofeachdevelopmentindexwhileworkingwithtop-notchteamstobuildqualityproperties.Atthesametime,theGroupwill endeavour to implement themarketingplanduring thedevelopment and saleperiod, andadjusttheplanflexiblyinresponsetomarketchange.Withaviewtoachievingthesalestargetonatimelybasis,alltheprojectsareproceedingsmoothlyandthestatusoftherespectiveprojectsaresetoutbelow.

GFA Under Expected City Project Project Type Total GFA Development Completion Time (’000 m2) (‘000 m2)

Guangzhou SkyVille Townhouses,apartments 470 260 JuneandNovember andhotel 2008(PhaseII) HuiFeng Servicedapartments 100 100 November2008 JinghuGarden Apartments 198 60 May2008(PhaseII) 從化上城灣畔 Apartmentsandtownhouses 280 280 November2008 ChungangZhongGarden Apartments 110 110 October2008 KehuiDevelopmentCentre Officebuildingandretailshop 300 150 November2008(PhaseI) LingFeng Luxuryapartments,apartments 180 180 September2009 andhotel

Suzhou 朗悅灣 Townhousesandapartments 213 213 November2008(PhaseI) ProjectKunshan Apartments 146 146 June2009 ProjectB&C Apartments,hotelandoffice 788 200 June2009(PhaseI)

Chengdu ProjectPlot3 Apartments 48 48 2009 ProjectPlots6,7 Apartments 529 250 June2009(PhaseI) ProjectPlots9,10 Apartments,servicedapartments, 618 250 November2009(PhaseI) officebuildingandshoppingmall


BiographicalDetailsofDirectorsandSeniorManagement

DirectorsExecutive DirectorsKong Jian Min, aged40, is the founder of the Group. He is an executive director and the Chairmanofthe Company and is primarily responsible for the formulation of our development strategies, aswell assupervisingourprojectplanning,businessandoperationmanagement.Mr.KonggraduatedfromtheJinanUniversityofGuangzhoumajoring incomputerscience in1989.Mr.Konghasover12yearsofexperienceinpropertydevelopmentandinvestment.PriortothefoundingoftheGroup,Mr.KongworkedasacreditofficeroftheBaiyunRoadSub-BranchoftheGuangzhouBranchofIndustrialandCommercialBankofChina.Mr.KongisabrotherofKongJianTaoandKongJianNan.

Kong Jian Tao, aged37, is an executive director and theChief ExecutiveOfficer of theCompany.He isresponsiblefortheoveralloperationoftheGroup’sprojects.Hehasover12yearsofexperienceinpropertydevelopmentandhasbeenadirectoroftheGroupsince1995.

Kong Jian Nan, aged 42, is an executive director and executive vice president of the Company. He isresponsibleforcoordinatingandmanagingthehumanresource,administrativemanagement,ITmanagementand legal affairs of the Group. He is a graduate ofChinaCentral Radio and TVUniversity.He joined theGroupin1999.

Li Jian Ming, aged 41, is an executive director and a vice president of theCompany.He is primarilyresponsibleforengineeringmanagementoftheGroup,includingquality,progress,technicalsupervisionandbudgetand final accountsmanagement.Mr. Ligraduated from theSouthChinaUniversityof Technologymajoring in industrial and civil construction. Prior to joining theGroup,Mr. Liwas an engineer of theconstructiondepartmentofacompany inGungzhou.Mr.LiwasappointedasanexecutivedirectoroftheCompanyinJune2007.

Tsui Kam Tim,aged39,isanexecutivedirectoroftheCompany.HeisalsotheChiefFinancialOfficerandthe Qualified Accountant of theCompany.He is primarily responsible for the financial management andsupervisionoffinancialreporting,corporatefinance,treasury,taxandotherrelatedfinancematters.Mr.TsuigraduatedfromAustraliaNationalUniversitywithabachelordegree inCommerceandhe isaprofessionalmemberof theHongKong InstituteofCertifiedPublicAccountants. Prior to joining theGroup,hewasasenior manager of an international firm of certified public accountants. Mr. Tsui joined theCompany inJanuary2007astheChiefFinancialOfficerandwasappointedasanexecutivedirectoroftheCompanyinNovember2007.



Independent Non-Executive DirectorsLee Ka Sze, Carmelo,aged47,isanindependentnon-executivedirectorandamemberofauditcommittee.Mr.LeereceivedabachelordegreeinLawsandthePostgraduateCertificateinLawsfromTheUniversityofHongKong.HeisqualifiedasasolicitorinHongKong,EnglandandWales,SingaporeandAustralianCapitalTerritoryandhasbeenapartnerofMessrs.Woo,Kwan, Lee&Lo since1989.Mr. Lee is anon-executivedirector ofY.T. RealtyGroup Limited, TheCross-Harbour (Holdings) Limited,China PharmaceuticalGroupLimited,HopewellHoldings Limited, SafetyGodown Limited, Taifook SecuritiesGroup Limited, TermbrayIndustries International (Holdings) Limited andYugang International Limited, all ofwhich are listedon theStockExchange.Mr.LeewasamemberoftheMainBoardListingCommitteeoftheStockExchangefrom2000 to2003. He is also an adjudicator of theRegistrationof Persons Tribunal and the chairmanof theTransportTribunaloftheHongKongGovernment.Mr.Leewasappointedasourindependentnon-executivedirectorinJune2007.

Dai Feng, aged66, is an independent non-executivedirector, amember of audit committee and amember of remuneration committee of the Company. Mr. Dai is amember of the Expert Committee onUrbanPlanningof theMinistryofConstruction (國家建設部城市規劃專家委員會),amemberof theExpertCommitteeonLivingEnvironmentoftheChinaResearchAssociationonPropertyandResidence(中國房地產及住宅研究會人居環境委員會),andmemberofvariousotherprofessionalorganizationsonurbanplanningandresearchinthePRC.Heisapart-timeprofessorofCentralChinaUniversityofTechnology(華中科技大學)andWuhanUniversityofTechnology (武漢理工大學)and isalsoafellowof theEuroasianAcademyofSciences.Mr.Daihasover40yearsofexperience inpropertydevelopment,specializing inurbanplanning,design and related information technology. Since1985, hehaswon various prizes in urbanplanning andapplicationof advanced technology.His achievements in applyingadvanced technology inurbanplanningwererecognizedbytheMinistryofConstructionofChina.Mr.Daiisanindependentnon-executiveDirectorof Guangzhou R&F Properties Co. Ltd. which is listed on the Main Board of the Stock Exchange, and isalso an independent non-executive Director of Poly Real Estate Group Co. Ltd. andGuangzhou DonghuaEnterprisesCo.Ltd.,bothofwhicharelistedontheShanghaiStockExchange.Mr.Daiwasappointedasourindependentnon-executivedirectorinJune2007.

Tam Chun Fai, aged45, is an independent non-executive director, chairman of audit committee and amemberofremunerationcommitteeoftheCompany.Mr.TamgraduatedfromtheHongKongPolytechnicUniversitywithabachelordegree inaccountancy.He isamemberof theHongKong InstituteofCertifiedPublicAccountants and is also amember ofChartered FinancialAnalyst.Mr. Tamhas over 20 years ofexperienceinauditingandcorporateadvisoryservicesaswellasfinancialmanagementandcompliancework.He is an executive director, the financial controller and company secretary of Beijing Enterprises HoldingsLimited,acompany listedon theMainBoardof theStockExchangeand isan independentnon-executivedirectorofHiSunTechnology(China)Limited,acompanylistedontheMainBoardoftheStockExchange.Mr.Tamwasappointedasourindependentnon-executivedirectorinJune2007.



Senior ManagementLiang Zhong Wei, aged 51, is a vice president of theGroup. He is primarily responsible for the financemanagement of the Group. Mr. Liang graduate from the Jinan University ofGuangzhou with a bachelordegree in finance. Hehas extensive experience in finance and capital management. Mr. Liang joinedtheGroup in 2004. Prior to joining theGroup,Mr. Liangwas thebranchmanager of the Industrial andCommercialBankofChina,GuangzhouBranch,GuangzhouHighandNewTechnologyDevelopmentZoneSub-Branch.

He Wei Zhi, aged40, is a vice president of theGroup.Mr.Hegraduated from GuangzhouUniversitymajoringinhotelmanagement.HejoinedtheGroupin1995andheldthepositionsofmanageranddeputygeneralmanagerofthesalesdepartment.SincehisjoiningoftheGroup,hehasbeenresponsibleforprojectplanning,designandsalesplanningworkoftheGroup.

Luo Qing, aged43, is a deputy generalmanager of theGroup.He joined the Group in 2001 andheldpositionsof projectmanager andproject superintendent.Mr. Luo is primarily responsible for engineeringmanagement,includingqualitycontrolandinteriordecorationmanagementoftheprojectsoftheGroup.Mr.LuograduatedfromtheSouthChinaUniversityofTechnologywithabachelordegreeinbuildingengineeringandisaregisteredsupervisionengineer.Heisexperiencedinprojectmanagement.BeforejoiningtheGroup,Mr.Luowasageneralmanagerofaconstructionsupervisioncompany.

Chen Jie Ping,aged35,isageneralmanageroftheSalesandStrategicPlanningDivisionoftheGroup.HeisresponsibleforsalesplanningoftheprojectsoftheGroup.Mr.ChenjoinedtheGroupin2003.PriortojoiningtheGroup,hewasadeputygeneralmanagerofapropertyagentandisexperiencedinthesaleofpropertiesinthePRC.

Zhang Wen Li,aged40,isthegeneralmanagerofthepropertymanagementsubsidiariesoftheGroup.SheisresponsibleforthemanagementandoperationofthepropertymanagementcompaniesoftheGroup.Ms.ZhanggraduatedfromtheBeijingUniversitymajoring in lawandshe isan intermediate leveleconomistofpropertyandaseniorpropertymanagementprofessional.ShejoinedtheGroupin2004.BeforejoiningtheGroup,shewasthegeneralmanagerofseveralwell-knownpropertymanagementcompaniesinGuangzhouCity.



Wu Yue Zhao,aged34,isaregisteredplanningprofessionalandageneralmanageroftheDesignDivisionof theGroup.He is responsible for managing thedesigns of theprojects of theGroup, includingprojectplanning,designandtheprovisionoftechnicalguidance.Mr.WugraduatedfromtheSouthChinaUniversityofTechnologywithamasterdegreeinconstruction.HejoinedtheGroupin2006.BeforejoiningtheGroup,hewasthemanagerofthedesigndepartmentofseveralwell-knownpropertydevelopers.

Zhou Yong Zi,aged31,isthegeneralmanageroftheLegalandComplianceDivisionoftheGroup.Heisprimarily responsible for the legal and compliance functions of theGroup.Mr. Zhougraduated from theEasternChinaCollegeofPoliticsandLawwithabachelordegreeinlawandpracticedasalawyerandwasconsultant in several medium to large size enterprises before joining the Group. He joined the Group inNovember2006.


CorporateGovernanceReport

Commitment to Corporate GovernanceThe Group believes that sound and good corporate governance practices are not only key elements inenhancing investor confidence and theCompany’s accountability and transparencybut also important totheCompany’s long-termsuccess. TheGroup, therefore, strives toattainandmaintaineffective corporategovernance practices and procedures. The Company complied with the code provisions in the Code onCorporateGovernancePractices (the“CodeProvision”) as setout inAppendix14 to theRulesGoverningthe Listing of Securities on The Stock Exchange ofHong Kong Limited (the “Listing Rules”) for the yearended31December2007.Inconductingitsbusinesses,theGroupstrictlycompliedwithallapplicablelaws,rulesandregulations.TheGroupiscommittedtocontinuouslyimprovingitscorporategovernancepracticesandendeavours toensure itsbusinesses tobeconducted inaccordancewithallapplicable laws, rulesandregulations.

Board of DirectorsTheBoard is in charge of the task of maximizing the financial performance of theCompany andmakingdecisions in thebest interest of theCompany. TheBoard is responsible for formulatingbusiness policiesand strategies, directing and supervising management of the Group, adopting and monitoring internalbusinessandmanagementcontrol,approvingandmonitoringannualbudgetsandbusinessplans,reviewingoperationalandfinancialperformance,consideringdividendpolicy,reviewingandmonitoringtheCompany’ssystems of financial control and risk management. TheBoard has delegated theday-to-day management,administrationandoperationoftheGroupandimplementationandexecutionofBoardpoliciesandstrategiestotheexecutivedirectorsandmanagementoftheCompany.

Asat31December2007,theBoardconsistsofeightmembers,includingtheChairman,Mr.KongJianMin,fourexecutivedirectors,Mr.KongJianTao,Mr.KongJianNan,Mr.LiJianMingandMr.TsuiKamTim,andthree independentnon-executivedirectors,Mr.LeeKaSze,Carmelo,Mr.DaiFendandMr.TamChunFai.Biographicaldetailsof theDirectorsaresetoutonpages37to38.Messrs.KongJianMin,KongJianTaoandKongJianNanarebrothers.Saveasdisclosed,there isnofamilyorothermaterial relationshipamongmembersoftheBoard.

AllexecutivedirectorshaveenteredintoservicecontractswiththeCompanyforaspecifictermofthreeyears.UnderthearticlesofassociationoftheCompany(the“ArticlesofAssociation”),theBoardisempoweredtoappointedanypersonasadirectortofillthecasualvacancyonorasanadditionaldirectoroftheBoard.TheBoardconsidersacandidate’sexperience,skillandknowledgeandcompetencyandabilitytofulfilldutyofcareanddiligenceandfiduciarydutyand/orrecommendationbytheNominationCommittee(ifany).



In compliance with Rule 3.10 of the Listing Rules, the Company has appointed three independent non-executive directors, one ofwhomhas appropriate professional qualifications in accounting and financialmanagement.All independentnon-executivedirectorshaveconfirmedtheir independenceoftheCompanyand the Company considers them tobe independent in accordance with the guidelines for assessingindependencesetoutinRule3.13oftheListingRules.Allindependentnon-executivedirectorshaveenteredintolettersofappointmentwiththeCompanyforaspecifictermofoneyear.Onethirdofthedirectorsaresubjecttoretirementfromofficebyrotationandre-electionattheannualgeneralmeetingonceeverythreeyearsinaccordancewiththeArticlesofAssociation.

All directors, including independent non-executive directors, havegiven sufficient time and effort to theaffairs of theGroup. Independent non-executivedirectors haveprovided theBoardwith their diversifiedexpertise,experienceandprofessionaladvice.TheBoardbelievesthattheratiobetweenexecutivedirectorsand independent non-executive directors is reasonable and adequate to provide sufficient checks andbalancesthatsafeguardtheinterestsofshareholdersandtheGroup.TheBoardalsobelievesthattheviewsandparticipationoftheindependentnon-executivedirectorsintheBoardandcommitteemeetingsprovidesindependentjudgmentontheissuesrelatingtostrategy,performance,conflictofinterestandmanagementprocesstoensurethattheinterestsofallshareholdersareconsideredandsafeguarded.

AlldirectorshavefullandtimelyaccesstoallrelevantinformationinrelationtotheGroup’sbusinessesandaffairsaswellasunrestrictedaccesstotheadviceandservicesofthecompanysecretary,whoisresponsiblefor providingdirectorswith Boardpapers and relatedmaterials. Thedirectorsmay seek independentprofessionaladviceattheCompany’sexpensesincarryingouttheirdutiesandresponsibilities.

TheCompanyhassubscribedappropriateandsufficientinsurancecoverageondirectors’liabilitiesinrespectoflegalactionstakenagainstdirectorsarisingoutofcorporateactivities.

Duringtheperiodfrom3July2007(thedateoflistingtheCompany)to31December2007,theBoardheldtwomeetings.AttheseBoardmeetings,directorsdiscussedandexchangedtheirviewsonsignificantissuesand general operationsof the Group, formulatedbusiness policies and strategies, reviewed the financialperformanceand internal control system, including financial, operational and compliance controls and riskmanagementsystems,andreviewedandapprovedtheinterimresults.



AttendanceoftheindividualdirectorsattheBoardmeetingsissetoutasfollows:–

Directors Meetings Attended/Total

Executive DirectorsKongJianMin(Chairman) 2/2KongJianTao 2/2KongJianNan 2/2LiJianMing 1/2TsuiKamTimNote1 0/2

Independent Non-Executive DirectorsLeeKaSze,Carmelo 1/2DaiFeng 0/2TamChunFai 1/2

At least14daysnoticeprior to thedateofmeeting isgiven toalldirectorsandanagenda togetherwithboardpapersaresent toalldirectorsno less thanthreedaysbefore thedateofmeeting.Alldirectorsaregivenopportunitytoincludeintheagendaanyothermatterthattheywouldliketodiscussinthemeeting.Withrespecttotheboardcommitteemeeting,reasonablepriornoticeisgiventoallcommitteemembers.AlldirectorsandcommitteemembersoftheBoardcommitteeareurgedtoattendtheboardmeetingandboardcommittee meeting in person. For thedirectors and committee members, who are unable to attend themeeting,participationthroughelectronicmeanswillbearrangedandavailable.

Shouldadirectorhaveapotentialconflictofinterestinamatterbeingconsideredintheboardmeeting,hewillbeabstainedfromvoting.IndependentNon-executivedirectorswithnoconflictofinterestwillbepresentatmeetingsdealingwithsuchconflictofinterestissues.

ThecompanysecretaryassiststheChairmaninpreparationoftheagendafortheboardmeetingandboardcommitteemeeting andensures that all applicable rules and regulations regarding theboardmeeting arefollowed.Healsopreparesandkeepsdetailedminutesofeachboardmeetingandboardcommitteemeeting.Withina reasonable timeaftereachmeeting, thedraftminutesarecirculatedtoalldirectors forcommentand the final andapproved versionofminutes is sent toall directors for their records.Board committees,includingtheauditcommittee,nominationcommitteeandremunerationcommittee,allfollowtheapplicableprinciples,practicesandproceduresusedinBoardmeetings.

Note1 Mr.TsuiKamTimwasappointedasanexecutivedirectoron7November2007.



Chairman and Chief Executive OfficerMr.KongJianMinistheChairmanoftheBoardandMr.KongJianTaoistheChiefExecutiveOfficeroftheCompany.Asdisclosed,Messrs.Kong JianMinandKong JianTaoarebrothers.Despite their relationship,thedivisionsofresponsibilitiesbetweentheChairmanoftheBoardandtheChiefExecutiveOfficerareclearlydefinedtoensureabalanceofpowerandauthorityandtoreinforcetheirindependenceandaccountability.

Mr.KongJianMin,being theChairman, is responsible forproviding leadership to theBoardandensuringthat theBoard functionseffectively; thatdirectors receive in timelymanneradequate informationwhich iscomplete and reliable and that all directors are properly briefed on issues arising at Board meetings. TheChairmanalsoencouragesdirectorstoparticipateactivelyinandtomakeafullcontributiontotheBoardsothattheBoardactsinthebestinterestoftheCompany.

Mr.KongJianTao,beingtheChiefExecutiveOfficer,isresponsibleforthedailyoperationsoftheCompany,executionofbusinesspolicies,strategies,objectivesandplansasformulatedandadoptedbytheBoardandleadingthemanagementofCompany.

Compliance with Model CodeTheCompanyhas adopted theModelCode for Securities TransactionsbyDirectors of Listed Issuers inAppendix10totheListingRules(the“ModelCode”)asthecodeofconductfordirectorsintheirdealingsintheCompany’ssecurities.Havingmadespecificenquirieswithdirectors,alldirectorsconfirmedthattheyhavefullycompliedwiththeModelCodeduringthefinancialyearended31December2007.

Directors’ Responsibility for the Financial StatementsTheDirectors acknowledge their responsibility for preparationof the financial statements for the financialyear ended 31 December 2007 which give a true and fair viewof the state of affairs of the Companyandof theGroupat thatdateandof theGroup’s resultsandcashflowsfor theyear thenendedandareproperlypreparedonthegoingconcernbasisinaccordancewiththeapplicablestatutoryrequirementsandaccountingstandards.

Board CommitteesTheBoardhasestablishedthreeboardcommittees,namelyauditcommittee, remunerationcommitteeandnominationcommittee,tooverseetheparticularaspectoftheCompany’saffairs.TheBoardcommitteesareprovidedwithsufficientresourcestodischargetheirduties.



Audit Committee and AccountabilityIncompliancewithRule3.21oftheListingRules,anauditcommitteewasestablishedon11June2006withwritten termsof reference in accordancewith theCodeonCorporateGovernance Practices as set out inappendix14totheListingRules.Theauditcommitteecomprisesthreememberswhoareindependentnon-executivedirectors,namelyMr.TamChunFai(thechairman),Mr.LeeKaSzeCarmeloandMr.DaiFeng.TheauditcommitteereportstotheBoardandisdelegatedbytheBoardtoassessmattersrelatedtothefinancialstatementsofaccounts.Underitstermsofreference,theauditcommitteeisrequiredtoperform,amongsttheothers,thefollowingduties:–

• making recommendation to theBoardon appointment, re-appointment and removal of externalauditor of the Group and considering the remuneration and terms of engagement of that externalauditor;

• reviewingandmonitoringtheexternalauditor’s independenceandeffectivenessoftheauditprocessinaccordancewithapplicablestandard;

• reviewingtheGroup’sfinancialcontrols,internalcontrolandriskmanagementsystem;

• reviewingtheGroup’sfinancialandaccountingpoliciesandpractices;

• ensuringthatmanagementhasfulfilleditsdutytoestablishandmaintainaneffectiveinternalcontrolandriskmanagementsystems;

• ensuring compliance with applicable statutory accounting and reporting requirements, legal andregulatoryrequirements,internalrulesandproceduresapprovedbytheBroad;

• reviewing andmonitoring the integrity of theGroups’ financial statements and annual reports andaccountsandhalf-yearreport.

SincetheCompany’slistingon3July2007,theauditcommitteeheldonemeeting.TheauditcommitteehasreviewedtheaccountingpoliciesandpracticesadoptedbytheGroupandthe interimresultsoftheGroupaswellasassessedtheeffectivenessoftheGroup’sinternalcontrolandriskmanagementsystem.TheauditcommitteereportedthattherewasnomaterialuncertaintythatcastdoubtontheCompany’sgoingconcernability.



Attendanceofindividualmembersoftheauditcommitteeatthemeetingfortheyearended31December2007issetoutasfollows:–

Committee Members Meetings Attended/ Total

LeeKaSze,Carmelo 1/1DaiFeng 0/1TamChunFai 1/1

For the year ended 31 December 2007, the external auditors’ remuneration in respect of audit servicesprovidedtotheGroupamountedtoapproximatelyRMB3,468,000andfeesfornon-auditservicesamountedto an aggregate amount of RMB300,000 includingRMB150,000being service charge for the reviewoffinancialinformationandRMB150,000beingservicechargeforperformanceofagreeduponprocedures.

Remuneration CommitteeThe remuneration committee was established on11 June 2007 with written terms of reference. Theremuneration committee is chairedby Mr.Kong Jian Minwith two independent non-executive directors,namelyMr.TamChunFaiandMr.DaiFeng,asmembers.

Theprincipalresponsibilitiesoftheremunerationcommitteearetoformulateandrecommendremunerationpolicy to theBoard, to determine the remunerationof executivedirectors andmembers of seniormanagement,toreviewandapproveperformance-basedremunerationbyreferencetocorporategoalsandobjectives resolvedby theBoard from time to time and tomake recommendationonother remunerationrelatedissues.TheBoardexpectstheremunerationcommitteetoexerciseindependentjudgmentandensuresthatexecutivedirectorsdonotparticipateinthedeterminationoftheirownremuneration.

Theremunerationcommitteedidnotholdcommitteemeetingfortheyearended31December2007becausetheCompany just listedon3 July2007.The remunerationcommitteeconsiders that it isnotnecessary toreviewtheremunerationpolicytotheBoardandmembersofseniormanagementinthefirstyearafterlisting.

Nomination CommitteeThenomination committeewas establishedon11 June2007. The chairman isMr.Kong JianMin, anexecutivedirector,andthetwoothermembersareMr.TamChunFaiandMr.DaiFeng,bothofthemareindependentnon-executivedirectors.

The nomination committee is responsible for reviewing the structure, size and composition of the Board,making recommendation to the Boardon selectionof candidates for directorships, appointment, re-appointment of directors and Board succession and assessing the independenceof independent non-executivedirectors.

Duringtheperiodfrom3July2007(thedateoftheCompany’slisting)to31December2007,therewasnomeetingheldbythenominationcommittee.ThenominationcommitteeconsidersthatitisnotnecessarytoreviewthecompositionoftheBoardduringthefirstyearoflisting.



Internal ControlTheBoardisresponsibleformaintainingsoundandeffectiveinternalcontrolsysteminordertosafeguardtheGroup’sassetsandshareholders’interestsandreviewingandmonitoringtheeffectivenessoftheCompany’sinternalcontrolandriskmanagementsystemsonaregularbasissoastoensurethatinternalcontrolandriskmanagementsystemsinplaceareadequate.

TheGroup’s internalcontrolsystemincludesawell-establishedorganizationalstructurewithclearlydefinedlines of responsibility and authority. Theday-to-day departmental operations is entrusted to the individualdepartmentwhich isaccountablefor itsownconductandperformanceand is requiredtooperate itsowndepartment’sbusinesswithintheparameterofthedelegatedauthorityandtoimplementandstrictlyadheretothestrategiesandpoliciessetbytheBoardfromtimetotime.EachdepartmentisalsorequiredtokeeptheBoard informedofmaterialdevelopmentsofthedepartment’sbusinessand implementationofthepoliciesandstrategiessetbytheBoardonaregularbasis.

TheBoard conducted a reviewand assessmentof the effectiveness of theCompany’s internal controlsystems including financial, operational and compliance controls and riskmanagement for the year ended31December2007. The assessmentwasmadebydiscussionswith themanagementof theCompany, itsexternalandinternalauditorsandthereviewperformedbytheauditcommittee.TheBoardbelievesthattheexistinginternalcontrolsystemisadequateandeffective.

Shareholder RelationsThe Company has adopted a policy of disclosing clear and relevant information to shareholders throughpublicationofannouncements,notices, circulars, interimand final reports ina timelymanner.ToenhancetheCompany’stransparency,otherinformationabouttheCompanyispublishedattheCompany’swebsiteat http://www.kwgproperty.com. In addition topublicationof information, the annual generalmeetingoftheCompanyprovides a forum for communicationbetween shareholders anddirectors. TheChairmanoftheBoardpersonallychairstheannualgeneralmeetingtoensureshareholders’viewsarecommunicatedtotheBoard. Inaddition to theChairman, thechairmanof theBoardcommittees,or in theirabsence,othermembersoftherespectivecommittees,areavailabletoansweranyqueriesthatshareholdersmayhave.TheChairmanwillproposeseparateresolutionsforeachissuetobeconsideredattheannualgeneralmeeting.

TheannualgeneralmeetingproceedingsarereviewedfromtimetotimetoensurethattheCompanyfollowsbestcorporategovernancepracticesandshareholders’rightsarepreserved.Noticeofannualgeneralmeetingisdeliveredtoallshareholdersatleast21dayspriortothedateofthemeeting,settingoutdetailsofeachproposed resolution, votingprocedures (includingprocedures for demanding and conducting a poll) andotherrelevantinformation.Atthebeginningofthemeeting,theproceduresfordemandingandconductingapollwillbeexplainedbytheChairman.VoteresultsarepostedontheCompany’swebsite.


ReportoftheDirectors

ThedirectorspresenttheirreportandtheauditedfinancialstatementsoftheCompanyandtheGroupfortheyearended31December2007.

Principal activitiesTheprincipalactivityoftheCompanyisinvestmentholding.Detailsoftheprincipalactivitiesoftheprincipalsubsidiariesaresetoutinnote17tothefinancialstatements.TherewerenosignificantchangesinthenatureoftheGroup’sprincipalactivitiesduringtheyear.

Results and dividendsTheGroup’sprofitfortheyearended31December2007andthestateofaffairsoftheCompanyandtheGroupatthatdatearesetoutinthefinancialstatementsonpages57to127.

The directors recommend the payment of a final dividendof RMB15 cents per ordinary share in respectof the year to shareholders on the register ofmembers on6 June2008. This recommendationhas beenincorporatedinthefinancialstatementsasanallocationofretainedprofitswithintheequitysectionofthebalancesheet.

Use of proceeds from the Company’s initial public offeringTheproceeds from theCompany’s issueofnew shares at the timeof its listingon theHongKongStockExchangeinJuly2007,afterdeductionofrelatedissuanceexpenses,amountedtoapproximatelyHK$5,034million.Theseproceedswereappliedduringtheyearended31December2007withtheremainingsumofapproximatelyHK$800millionbeingunutilised,asfollows:

– approximately HK$600 million was used to repay the debt incurred in connection with thereorganisationundergonebytheCompany;

– approximatelyHK$1,700millionwasusedtofinancelandcosts;and

– approximatelyHK$1,900millionwasusedtofinanceconstructioncosts.

Summary financial informationAfinancialsummaryoftheGroupissetoutonpages128and129.Thissummarydoesnotformpartoftheauditedfinancialstatements.



Property, plant and equipment and investment propertiesDetailsofmovementsintheproperty,plantandequipment,andinvestmentpropertiesoftheCompanyandtheGroupduringtheyeararesetout innotes14and15tothefinancialstatements, respectively.FurtherdetailsoftheGroup’smajorinvestmentpropertiesaresetoutonpage130.

Properties under developmentDetailsofmovementsinthepropertiesunderdevelopmentoftheGroupduringtheyeararesetoutinnote20tothefinancialstatements.FurtherdetailsoftheGroup’smajorpropertiesunderdevelopmentaresetoutonpage130.

Completed properties held for saleDetailsofmovementsinthecompletedpropertiesheldforsaleoftheGroupduringtheyeararesetoutinnote21tothefinancialstatements.FurtherdetailsoftheGroup’smajorcompletedpropertiesheldforsalearesetoutonpage130.

Share capital and share optionsDetailsofmovementsintheCompany’ssharecapitalduringtheyeararesetoutinnote32tothefinancialstatements.Noshareoptionsweregrantedsincetheadoptionon11June2007,asummaryoftheprincipaltermsoftheShareOptionSchemeissetoutinnote33tothefinancialstatements.

Pre-emptive rightsThere are noprovisions for pre-emptive rights under theCompany’s articles of associationor the lawsof Cayman Islandswhich would oblige theCompany to offer new shares on a pro rata basis to existingshareholders.

Purchase, redemption or sale of listed securities of the CompanyNeithertheCompany,noranyof itssubsidiariespurchased,redeemedorsoldanyoftheCompany’s listedsecuritiesduringtheyear.

ReservesDetailsofmovementsinthereservesoftheCompanyandtheGroupduringtheyeararesetoutinnote34tothefinancialstatementsandintheconsolidatedstatementofchangesinequity,respectively.



Distributable reservesAt31December2007,theCompany’sreservesavailablefordistribution,calculatedinaccordancewitharticle146ofthearticlesofassociationoftheCompany,amountedtoapproximatelyRMB5,878million,ofwhichapproximatelyRMB389millionhasbeenproposedasafinaldividendfortheyear.

Charitable contributionsDuringtheyear,theGroupmadecharitablecontributionstotallingRMB5,730,000(2006:RMB1,990,000).

Major customers and suppliersFortheyearended31December2007,salestotheGroup’sfive largestcustomersaccountedfor lessthan30%oftheGroup’srevenueintheyear.

Intheyearunderreview,paymentattributabletotheGroup’slargestcontractorandfivelargestcontractorsamounted to approximately 22.6%and47.7% respectively, of the total payment under constructioncontracts.PurchasesfromtheGroup’slargestsupplierandfivelargestsuppliersaccountedforapproximately11.7%and35.3%,respectively,ofthetotalpurchasesfortheyear.

None of thedirectors of the Company or anyof their associates or any shareholders (which, to thebestknowledgeofthedirectors,ownmorethan5%oftheCompany’s issuedsharecapital)hadanybeneficialinterestintheGroup’sfivelargestcontractorsandsuppliers.

DirectorsThedirectorsoftheCompanyduringtheyearwere:

Executive directors:Mr.KongJianMinMr.KongJianTaoMr.KongJianNanMr.LiJianMing (appointedon11June2007)Mr.TsuiKamTim (appointedon7November2007)

Independent non-executive directors:Mr.LeeKaSze,Carmelo (appointedon11June2007)Mr.DaiFeng (appointedon11June2007)Mr.TamChunFai (appointedon11June2007)



Inaccordancewitharticles86(3),87(1) and87(2)of theCompany’s articlesof association,Messrs. Li JianMing,KongJianNanandTsuiKamTimwillretirebyrotationand,beingeligible,willofferthemselvesforre-electionattheforthcomingannualgeneralmeeting.Theindependentnon-executivedirectorsareappointedforperiodofoneyear.

TheCompanyhas received annual confirmationsof independence fromMessrs. LeeKa Sze,Carmelo,DaiFengandTamChunFai,andasatthedateofthisreportstillconsidersthemtobeindependent.

Directors’ and senior management’s biographiesBiographicaldetailsofthedirectorsoftheCompanyandtheseniormanagementoftheGrouparesetoutonpages37to40oftheannualreport.

Directors’ service contractsEachofMessrs.KongJianMin,KongJianTao,KongJianNanandLiJianMinhasaservicecontractwiththeCompanyforatermofthreeyearswhichcommencedon3July2007andMr.TsuiKamTimhasaservicecontractwiththeCompanyforatermofthreeyearscommencingon7November2007andeachoftheseservicecontractsissubjecttoterminationbyeitherpartygivingnotlessthanthreemonths’writtennotice.

Eachoftheindependentnon-executivedirectorshasenteredintoaletterofappointmentwiththeCompanyforatermofoneyearwhichcommencedon3July2007andissubjecttoterminationbyeitherpartygivingnotlessthanthreemonths’writtennotice.

Apart fromtheforegoing,nodirectorproposedfor re-electionat theforthcomingannualgeneralmeetinghasaservicecontractwiththeCompanywhichisnotdeterminablebytheCompanywithinoneyearwithoutpaymentofcompensation,otherthanstatutorycompensation.

Directors’ remunerationThedirectors’ emoluments are subject to the recommendationsof the remuneration committee and theboard’sapproval.OtheremolumentsaredeterminedbytheCompany’sboardofdirectorswithreferencetodirectors’duties,responsibilitiesandperformanceandtheresultsoftheGroup.



Directors’ and chief executive’s interests and short positions in shares and underlying sharesAt31 December 2007, the interests and short positions of the directors and chief executive in the sharecapital andunderlying shares anddebentures of theCompanyor its associated corporations (within themeaningofPartXVoftheSecuritiesandFuturesOrdinance(the“SFO”)),asrecordedintheregisterrequiredtobekeptbytheCompanypursuanttoSection352oftheSFO,orasotherwisenotifiedtotheCompanyandtheStockExchangepursuanttotheModelCodeforSecuritiesTransactionsbyDirectorsofListedIssuers,wereasfollows:

Long positions in ordinary shares of the Company:

Number of shares Percentage of held through the Company’s controlled issuedName of director Notes corporation share capital

Mr.KongJianMin (a)&(b) 1,687,500,000 65.1Mr.KongJianTao (a)&(b) 1,687,500,000 65.1Mr.KongJianNan (a)&(b) 1,687,500,000 65.1

Notes:

a. Messrs.KongJianMin,KongJianTaoandKongJianNanhold76.5%,ofissuedsharecapitalofPlusEarnConsultantsLimited(“PlusEarn”),15%ofissuedcapitalofPlusEarnand8.5%ofissuedcapitalofPlusEarnrespectively.Therefore,Messrs.KongJian Min, Kong Jian Tao and Kong Jian Nan (collectively the “Kong Family”) are deemed tobe interested in 1,612,500,000sharesintheCompanythroughtheinterestinPlusEarn.

b. Messrs.KongJianMin,KongJianTaoandKongJianNanhold76.5%,ofissuedsharecapitalofRightRichConsultantsLimited(“RightRich”),15%of issuedcapitalofRightRichand8.5%of issuedcapitalofRightRichrespectively.Therefore,theKongFamilyaredeemedtobeinterestedin75,000,000sharesintheCompanythroughtheinterestinRightRich.



Long positions in shares and underlying shares of associated corporations:

Percentage of the associated Name of Relationship corporation’s associated with the Numbers of Capacity and issuedName of director corporation Company Shares shares nature of interest share capital

Mr.KongJianMin PlusEarn Company’sholding Ordinary 765 Directlybeneficially 76.5 company shares owned

RightRich Company’sholding Ordinary 765 Directlybeneficially 76.5 company shares owned

Mr.KongJianTao PlusEarn Company’sholding Ordinary 150 Directlybeneficially 15 company shares owned

RightRich Company’sholding Ordinary 150 Directlybeneficially 15 company shares owned

Mr.KongJianNan PlusEarn Company’sholding Ordinary 85 Directlybeneficially 8.5 company shares owned

RightRich Company’sholding Ordinary 85 Directlybeneficially 8.5 company shares owned

Saveasdisclosedabove,asat31December2007,noneofthedirectorsorchiefexecutivehadregisteredaninterestorshortpositionintheshares,underlyingsharesordebenturesoftheCompanyoranyofitsassociatedcorporationsthatwasrequiredtoberecordedpursuanttoSection352oftheSFO,orasotherwisenotifiedtotheCompanyandtheStockExchangepursuanttotheModelCodeforSecuritiesTransactionsbyDirectorsofListedIssuers.

Directors’ rights to acquire shares or debenturesSaveasdisclosed in the section“Shareoption scheme”below, atno timeduring the yearwere rights toacquire benefits bymeansof the acquisitionof shares in or debentures of theCompanygranted to anydirectorortheirrespectivespouseorminorchildren,orwereanysuchrightsexercisedbythem;orwastheCompany,itsholdingcompany,oranyofitssubsidiariesorfellowsubsidiariesapartytoanyarrangementtoenablethedirectorstoacquiresuchrightsinanyotherbodycorporate.



Share option schemeBytheresolutionsofshareholdersoftheCompanypassedon11June2007,ashareoptionscheme(the“ShareOptionScheme”)wasconditionallyapproved.SincetheShareOptionSchemehasbecameeffectiveupontheCompany’s listing,noshareoptionsweregranted,exercisedorcancelledbytheCompanyundertheShareOptionSchemeduringtheyearandtherearenooutstandingshareoptionsundertheShareOptionSchemeasat31December2007.

Contract of significanceNocontractsofsignificanceinrelationtotheCompany’sbusinesstowhichtheCompany,itssubsidiaries,oritsholdingcompanywasapartyandinwhichadirectorhasamaterialinterest,whetherdirectlyorindirectly,subsistedattheendoftheyearoratanytimeduringtheyear.

Substantial shareholders’ and other persons’ interests in shares and underlying sharesAt31December2007,thefollowinginterestsof5%ormoreoftheissuedsharecapitalandshareoptionsoftheCompanywererecordedintheregisterofinterestsrequiredtobekeptbytheCompanypursuanttoSection336oftheSFO:

Long positions:

Percentage of Number of the Company’s Capacity and ordinary issued shareName Note nature of interest shares held capital

PlusEarn Directlybeneficiallyowned 1,612,500,000 62.2SSFSwiftHoldingsLimited (a) Beneficialowner 187,500,000 7.2MorganStanleyRealEstate (a) Throughacontrolled 187,500,000 7.2 SpecialSituationsFund111,L.P. corporationMorganStanleyRealEstate (a) Throughacontrolled 187,500,000 7.2 SpecialSituationsIII-GP,L.L.C. corporationMSRESSIIIManager,L.L.C. (a) Throughacontrolled 187,500,000 7.2 corporation

Note:

(a) MSRESS IIIManager, L.L.C. (“MRESS”)owns theentire interest inMorganStanleyReal EstateSpecial Situations III-GP, L.L.C.(“Morgan Stanley SituationsGP”).Morgan Stanley SituationsGPowns less than 1% interest inMorgan StanleyReal EstateSpecialSituationsFund111,L.P. (“MorganStanleySituationsFund”)which inturnMorganStanleySituationsFundownstheentire interest in SSFSwiftHoldings Limited (“SSFSwift”).Accordingly,MorganStanleySituations FundandMorganStanleySituationsGParedeemedtobeinterestedin187,500,000sharesoftheCompanywhichareheldbySSFSwift.



Saveasdisclosedabove,asat31December2007,noperson,otherthanthedirectorsandchiefexecutiveoftheCompany,whoseinterestsaresetoutinthesection“Directors’andchiefexecutive’sinterestsandshortpositionsinsharesandunderlyingshares”above,hadregisteredaninterestorshortpositioninthesharesorunderlyingsharesoftheCompanythatwasrequiredtoberecordedpursuanttoSection336oftheSFO.

Connected transactionsDuringtheyear,theCompanyandtheGrouphadnoconnectedtransactionswhicharerequiredtodiscloseinaccordancewiththerequirementsofChapter14AoftheListingRules.

Sufficiency of public floatBasedon informationthat ispubliclyavailabletotheCompanyandwithintheknowledgeofthedirectors,atleast25%oftheCompany’stotalissuedsharecapitalwasheldbythepublicasatthedateofthisreport,beingthelatestpracticaldatepriortothedateofthisreport.

Directors’ interests in a competing businessDuringtheyearanduptothedateofthisreport,noneofthedirectorsareconsideredtohaveinterests ina businesswhich competes or is likely to compete, either directly or indirectly,with thebusinesses of theGroup,asdefinedintheListingRules.

AuditorsErnst&YoungretireandaresolutionfortheirreappointmentasauditorsoftheCompanywillbeproposedattheforthcomingannualgeneralmeeting.

ONBEHALFOFTHEBOARDKong Jian MinChairman

HongKong26March2008


IndependentAuditors’Report

To the shareholders of KWG Property Holding Limited(Incorporated in the Cayman Islands with limited liability)

WehaveauditedthefinancialstatementsofKWGPropertyHoldingLimitedsetoutonpages57to127,whichcomprisethe consolidated and companybalance sheets as at 31December2007, and the consolidated income statement, theconsolidatedstatementofchanges inequityandtheconsolidatedcashflowstatementfortheyearthenended,andasummaryofsignificantaccountingpoliciesandotherexplanatorynotes.

Directors’ responsibility for the financial statementsThedirectorsof theCompanyare responsible for thepreparationandthetrueandfairpresentationof these financialstatementsinaccordancewithHongKongFinancialReportingStandardsissuedbytheHongKongInstituteofCertifiedPublicAccountantsandthedisclosurerequirementsoftheHongKongCompaniesOrdinance.Thisresponsibilityincludesdesigning,implementingandmaintaininginternalcontrolrelevanttothepreparationandthetrueandfairpresentationoffinancialstatementsthatarefreefrommaterialmisstatement,whetherduetofraudorerror;selectingandapplyingappropriateaccountingpolicies;andmakingaccountingestimatesthatarereasonableinthecircumstances.

Auditors’ responsibilityOurresponsibilityistoexpressanopiniononthesefinancialstatementsbasedonouraudit.Ourreportismadesolelytoyou,asabody,andfornootherpurpose.Wedonotassumeresponsibilitytowardsoracceptliabilitytoanyotherpersonforthecontentsofthisreport.

Weconductedour audit in accordancewithHongKongStandardsonAuditing issuedby theHongKong InstituteofCertifiedPublicAccountants.Thosestandards require thatwecomplywithethical requirementsandplanandperformtheaudittoobtainreasonableassuranceastowhetherthefinancialstatementsarefreefrommaterialmisstatement.

An audit involves performingprocedures to obtain audit evidence about the amounts anddisclosures in the financialstatements.Theproceduresselecteddependontheauditors’judgement,includingtheassessmentoftherisksofmaterialmisstatementofthefinancialstatements,whetherduetofraudorerror.Inmakingthoseriskassessments,theauditorsconsider internal control relevant to theentity’spreparationand trueand fairpresentationof the financial statementsinordertodesignauditproceduresthatareappropriateinthecircumstances,butnotforthepurposeofexpressinganopinionon the effectiveness of the entity’s internal control.An audit also includes evaluating the appropriateness ofaccountingpoliciesusedandthereasonablenessofaccountingestimatesmadebythedirectors,aswellasevaluatingtheoverallpresentationofthefinancialstatements.

Webelievethattheauditevidencewehaveobtainedissufficientandappropriatetoprovideabasisforourauditopinion.

OpinionInouropinion,thefinancialstatementsgiveatrueandfairviewofthestateofaffairsoftheCompanyandoftheGroupasat31December2007andoftheGroup’sprofitandcashflowsfortheyearthenendedinaccordancewithHongKongFinancialReportingStandardsandhavebeenproperlyprepared inaccordancewith thedisclosure requirementsof theHongKongCompaniesOrdinance.

Ernst & YoungCertified Public Accountants18thFloorTwoInternationalFinanceCentre8FinanceStreet,CentralHongKong

26March2008


ConsolidatedIncomeStatementYear ended 31 December 2007

2007 2006

Notes RMB’000 RMB’000

REVENUE 5 3,868,136 654,632

Costofsales (1,809,200 ) (452,404)

Grossprofit 2,058,936 202,228

Otherincomeandgains 5 206,549 25,633

Sellingandmarketingcosts (65,437 ) (32,572)

Administrativeexpenses (148,099 ) (51,265)

Otheroperatingexpenses,net (1,086 ) (963)

Fairvaluegainsoninvestmentproperties 2,288,520 151,611

Financecosts 7 (18,749 ) (15,455)

Shareofprofitsandlossesofajointly-controlledentity (36 ) (81)

PROFITBEFORETAX 6 4,320,598 279,136

Tax 10 (1,637,788 ) (121,980)

PROFITFORTHEYEAR 2,682,810 157,156

Attributableto:

Equityholdersoftheparent 11 2,683,055 157,156

Minorityinterests (245 ) –

2,682,810 157,156

DIVIDENDS 12

Proposedfinal 389,063 –

EARNINGSPERSHAREATTRIBUTABLETO

ORDINARYEQUITYHOLDERSOFTHEPARENT 13

Basic

–Forprofitfortheyear RMB120 cents RMB9cents


ConsolidatedBalanceSheet31 December 2007

2007 2006


NON-CURRENTASSETS

Property,plantandequipment 14 227,685 557,349

Investmentproperties 15 3,650,919 531,545

Landuserights 16 875,254 290,836

Interestinajointly-controlledentity 18 3,905 3,941

Deferredtaxassets 31 111,371 31,933

Longtermprepayment 19 933,359 –

Totalnon-currentassets 5,802,493 1,415,604

CURRENTASSETS

Propertiesunderdevelopment 20 7,745,585 1,815,109

Completedpropertiesheldforsale 21 1,189,629 8,948

Tradereceivables 22 34,620 3,042

Prepayments,depositsandotherreceivables 23 735,413 74,816

Duefromajointly-controlledentity 18 29,001 –

Duefromadirector 24 – 77,428

Taxesrecoverable 25 1,800 5,051

Restrictedcash 26 147,353 202,432

Cashandcashequivalents 26 3,288,639 803,904

Totalcurrentassets 13,172,040 2,990,730

CURRENTLIABILITIES

Tradepayables 27 3,437,982 98,501

Otherpayablesandaccruals 28 1,755,906 568,933

Interest-bearingbankborrowings 29 275,068 1,127,108

Duetoajointly-controlledentity 18 – 12,999

Duetorelatedcompanies 30 – 168,778

Taxespayable 25 1,149,171 136,103

Totalcurrentliabilities 6,618,127 2,112,422

NETCURRENTASSETS 6,553,913 878,308

TOTALASSETSLESSCURRENTLIABILITIES 12,356,406 2,293,912


ConsolidatedBalanceSheet31 December 2007

2007 2006


TOTALASSETSLESSCURRENTLIABILITIES 12,356,406 2,293,912

NON-CURRENTLIABILITIES

Interest-bearingbankborrowings 29 2,445,404 1,190,850

Deferredtaxliabilities 31 638,656 116,035

Totalnon-currentliabilities 3,084,060 1,306,885

Netassets 9,272,346 987,027

EQUITY

Equity attributable to equity holders of the parent

Issuedcapital 32 254,093 –

Reserves 34(a) 7,890,527 987,027

Proposedfinaldividend 12 389,063 –

8,533,683 987,027

Minority interests 738,663 –

Totalequity 9,272,346 987,027

Kong Jian Min Kong Jian Tao

Director Director


ConsolidatedStatementofChangesinEquityYear ended 31 December 2007

Attributable to equity holders of the parent

Share Exchange Proposed

Issued premium Contributed Reserve fluctuation Retained final Minority Total

capital account surplus funds reserve profits dividend Total interests equity

Notes RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000

(note32) (note32) (note34(a))

At1January2006 251,700 – – 55,639 – 301,936 – 609,275 – 609,275

Exchangerealignment – – – – 6,031 – – 6,031 – 6,031

Gainondisposalofsubsidiaries 37 – – 985 – – – – 985 – 985

Totalincomeandexpensefortheyear

recogniseddirectlyinequity – – 985 – 6,031 – – 7,016 – 7,016

Profitfortheyear – – – – – 157,156 – 157,156 – 157,156

Totalincomeandexpensefortheyear – – 985 – 6,031 157,156 – 164,172 – 164,172

Issueofshares – 666,873 – – – – – 666,873 – 666,873

DistributionarisingfromtheReorganisation (251,700) – (985) – – (200,608) – (453,293) – (453,293)

At31December2006and1January2007 – 666,873 – 55,639 6,031 258,484 – 987,027 – 987,027

Exchangerealignment – – – – (45,550) – – (45,550) 127 (45,423)

Totalincomeandexpense

recogniseddirectlyinequity – – – – (45,550) – – (45,550) 127 (45,423)

Profit/(loss)fortheyear – – – – – 2,683,055 – 2,683,055 (245) 2,682,810

Totalincomeandexpensefortheyear – – – – (45,550) 2,683,055 – 2,637,505 (118) 2,637,387

Acquisitionofsubsidiaries 36 – – – – – – – – 1,650 1,650

Capitalisationofsharepremiumaccount 32(a) 184,241 (184,241) – – – – – – – –

Issueofshares 32 69,852 5,015,374 – – – – – 5,085,226 – 5,085,226

Shareissueexpenses 32 – (176,075) – – – – – (176,075) – (176,075)

Capitalcontributionfromminority

shareholders – – – – – – – – 737,131 737,131

Transfertoreserves – – – 94,705 – (94,705) – – – –

Proposedfinal2007dividend 12 – – – – – (389,063) 389,063 – – –

At31December2007 254,093 5,321,931* – 150,344* (39,519)* 2,457,771* 389,063 8,533,683 738,663 9,272,346

* These reserveaccounts comprise the consolidated reservesofRMB7,890,527,000 (2006:RMB987,027,000) in the consolidatedbalancesheet.


ConsolidatedCashFlowStatementYear ended 31 December 2007

2007 2006


CASHFLOWSFROMOPERATINGACTIVITIES

Profitbeforetax 4,320,598 279,136

Adjustmentsfor:

Financecosts 7 18,749 15,455

Shareofprofitsandlossesofajointly-controlledentity 36 81

Interestincome 5 (133,327 ) (3,749)

Gainondisposalofinvestmentproperties 5 (13,784 ) (14,812)

Depreciation 6 5,930 3,047

Amortisationoflanduserights 6 263 108

Changesinfairvaluesofinvestmentproperties 15 (2,288,520 ) (151,611)

1,909,945 127,655

Increaseinpropertiesunderdevelopment (5,543,926 ) (205,407)

(Increase)/decreaseincompletedpropertiesheldforsale (1,180,681 ) 3,550

(Increase)/decreaseintradereceivables (31,578 ) 1,766

Increaseinprepayments,depositsandotherreceivables (630,086 ) (57,890)

Decreaseinamountduefromadirector 77,428 68,691

Increase/(decrease)intradepayables 3,339,481 (235,021)

Increaseinotherpayablesandaccruals 1,171,431 158,589

Decreaseinamountsduetorelatedcompanies (168,778 ) (12,703)

Increaseinamountduetoadirector – 10,689

(Decrease)/increaseinbalancewithajointly-controlledentity (42,000 ) 1,551

Increaseinrestrictedcash (97,706 ) (17,173)

Cashusedinoperations (1,196,470 ) (155,703)

Interestreceived 133,327 3,749

Interestpaid (186,874 ) (100,140)

Corporateincometaxpaid (185,586 ) (42,458)

Landappreciationtaxpaid (30,914 ) (10,489)

Netcashoutflowfromoperatingactivities (1,466,517 ) (305,041)


ConsolidatedCashFlowStatementYear ended 31 December 2007

2007 2006


Netcashoutflowfromoperatingactivities (1,466,517 ) (305,041)

CASHFLOWSFROMINVESTINGACTIVITIES

Purchasesofitemsofproperty,plantandequipment 14 (413,713 ) (321,837)

Acquisitionoflanduserights 16 (779,575 ) (5,477)

Increaseinlongtermprepayment 19 (933,359 ) –

Proceedsfromdisposalofinvestmentproperties 65,379 45,495

Acquisitionofsubsidiaries 36 (143,638 ) –

Disposalofsubsidiaries 37 – (2,207)

Investmentinajointly-controlledentity – (2,501)

Netcashoutflowfrominvestingactivities (2,204,906 ) (286,527)

CASHFLOWSFROMFINANCINGACTIVITIES

Proceedsfromissueofshares 32 5,085,226 666,873

Shareissueexpenses 32 (176,075 ) –

Decrease/(increase)inrestrictedcash 152,785 (152,785)

DistributionarisingfromReorganisation – (453,293)

Newbankloans 2,735,723 1,527,558

Repaymentofbankandotherloans (2,282,016 ) (405,140)

Capitalcontributionsfromminorityshareholders 737,131 –

Netcashinflowfromfinancingactivities 6,252,774 1,183,213

NETINCREASEINCASHANDCASHEQUIVALENTS 2,581,351 591,645

Cashandcashequivalentsatbeginningofyear 803,904 212,688

Effectofforeignexchangeratechanges,net (96,616 ) (429)

CASHANDCASHEQUIVALENTSATENDOFYEAR 3,288,639 803,904

ANALYSISOFBALANCESOFCASHAND

CASHEQUIVALENTS

Cashandbankbalances 26 3,169,400 751,444

Non-pledgedtimedepositswithoriginalmaturityof

lessthanthreemonthswhenacquired 26 119,239 52,460

3,288,639 803,904


BalanceSheet31 December 2007

2007 2006


NON-CURRENTASSETS

Property,plantandequipment 14 499 –

Interestsinsubsidiaries 17 6,004,880 904,582

Totalnon-currentassets 6,005,379 904,582

CURRENTASSETS

Prepayments,depositsandotherreceivables 23 444 7,088

Cashandcashequivalents 26 127,247 52,460

Totalcurrentassets 127,691 59,548

CURRENTLIABILITIES

Otherpayablesandaccruals 28 944 –

Totalcurrentliabilities 944 –

NETCURRENTASSETS 126,747 59,548

Netassets 6,132,126 964,130

EQUITY

Issuedcapital 32 254,093 –

Reserves 34(b) 5,488,970 964,130

Proposedfinaldividend 12 389,063 –

Totalequity 6,132,126 964,130

Kong Jian Min Kong Jian Tao

Director Director


NotestoFinancialStatements31 December 2007

1. Corporate information and group reorganisationTheCompanywas incorporated in theCayman Islandson28 July2006asanexemptedcompanywith limited

liabilityundertheCompaniesLaw,Cap22oftheCaymanIslands.TheregisteredofficeoftheCompanyislocated

atCricketSquare,HutchinsDrive,GrandCaymanKY1-1111,CaymanIslands.

Mr.KongJianMin,Mr.KongJianTaoandMr.KongJianNan(hereinaftercollectivelyreferredtoasthe“Kong

Family”) owned various companies in the People’s Republic ofChina (the“PRC”) principally engaging in

propertydevelopment,property investmentandpropertymanagement.Torationalisethecorporatestructure in

preparation for the listingof its sharesonTheStockExchangeofHongKongLimited (the“StockExchange”),

the Company underwent the reorganisation (the “Reorganisation”) to acquire all the subsidiaries and jointly-

controlledentitycarryingonthepropertydevelopment,propertyinvestmentandpropertymanagementbusiness

(the“CoreBusinessEntities”)fromtheKongFamilyandtodisposeofcertainsubsidiariescarryingonothernon-

propertydevelopmentandinvestmentholdingbusinesses(the“Non-coreBusinessEntities”)toMr.KongJianMin.

DetailsoftheReorganisationaresetoutintheProspectusoftheCompanydated18June2007.

TheCompany’sshareswerelistedontheStockExchangeon3July2007.

Duringtheyear,theGroupwasinvolvedinthefollowingprincipalactivitiesinthePRC:

• propertydevelopment

• propertyinvestment

• provisionofpropertymanagementservices

Intheopinionofthedirectors,theholdingcompanyoftheCompanyisPlusEarnConsultantsLimited,whichis

incorporatedintheBritishVirginIslands.

2.1 Basis of preparationThese financial statements havebeenprepared in accordance withHong Kong Financial Reporting Standards

(“HKFRSs”) (which include all Hong Kong Financial Reporting Standards, Hong Kong Accounting Standards

(“HKASs”) and Interpretations) issued by theHongKong Institute ofCertified Public Accountants, accounting

principlesgenerallyacceptedinHongKongandthedisclosurerequirementsofHongKongCompaniesOrdinance.

Theyhavebeenpreparedunderthehistoricalcostconvention,exceptforinvestmentproperties,whichhavebeen

measuredatfairvalue.ThesefinancialstatementsarepresentedinRenminbi(“RMB”)andallvaluesarerounded

tothenearestthousandexceptwhenotherwiseindicated.

Pursuant to theReorganisation, theCompanybecametheholdingcompanyof thecompaniesnowcomprising

theGroup.AllthesubsidiariesoftheGroupareundercommoncontrolduringtheperiodsastheyaredirectlyor

indirectlywhollyownedby theKongFamilyand theKongFamilygoverns their financialandoperatingpolicies

prior to and after theReorganisation.Accordingly, the comparative amounts for the year ended31December

2006hasbeenpreparedonthebasisasiftheCompanyhadalwaysbeentheholdingcompanyoftheGroupusing

theprinciplesofmergeraccounting.



2.1 Basis of preparation (continued)

Basis of consolidation

The consolidated financial statements include the financial statementsof theCompany and its subsidiaries

(collectively referred to the “Group”) for the year ended 31December 2007. The results of subsidiaries are

consolidatedfromthedateofacquisition,beingthedateonwhichtheGroupobtainscontrol,andcontinuetobe

consolidateduntilthedatethatsuchcontrolceases.Allsignificantintercompanytransactionsandbalanceswithin

theGroupareeliminatedonconsolidation.

Theacquisitionofsubsidiariesduringtheyearhasbeenaccountedforusingthepurchasemethodofaccounting.

Thismethodinvolvesallocatingthecostofthebusinesscombinationstothefairvalueofthe identifiableassets

acquired,andliabilitiesandcontingentliabilitiesassumedatthedateofacquisition.Thecostoftheacquisitionis

measuredattheaggregateofthefairvalueoftheassetsgiven,equityinstrumentsissuedandliabilitiesincurredor

assumedatthedateofexchange,pluscostsdirectlyattributabletotheacquisition.

MinorityinterestsrepresenttheinterestsofoutsideshareholdersnotheldbytheGroupintheresultsandnetassets

oftheCompany’ssubsidiaries.

Business combinations under common control

The consolidated financial statements incorporate the financial statement itemsof the combining entities or

businessesinwhichthecommoncontrolcombinationoccurs,asiftheyhadbeencombinedfromthedatewhen

thecombiningentitiesorbusinessesfirstcameunderthecontrolofthecontrollingparty.

Thenetassetsofthecombiningentitiesorbusinessesarecombiningtheexistingbookvaluesfromthecontrolling

partiesperspective.Noamountisrecognisedinrespectofgoodwillorexcessofacquirers’interestsinthenetfair

valueofacquiree’sidentifiableassets,liabilitiesandcontingentliabilitiesovercostatthetimeofcommoncontrol

combination,totheextentofthecontinuationofthecontrollingparty’sinterest.

Theconsolidatedincomestatementincludestheresultsofeachofthecombiningentitiesorbusinessesfromthe

earliestdatepresentedorsincethedatewhenthecombiningentitiesorbusinessesfirstcameunderthecommon

control,wherethisisashorterperiod,regardlessofthedateofthecommoncontrolcombination.

Thecomparativeamounts in theconsolidatedfinancial statementsarepresentedas if theentitiesorbusinesses

hadbeencombinedatthepreviousbalancesheetdateorwhentheyfirstcameundercommoncontrol,whichever

isshorter.



2.2 Impact of new and revised Hong Kong Financial Reporting StandardsTheGrouphasadoptedthefollowingnewandrevisedHKFRSsfor thefirst timefor thecurrentyear’s financial

statements.

HKFRS7 Financial Instruments: Disclosures

HKAS1Amendment Capital Disclosures

HK(IFRIC)-Int8 Scope of HKFRS 2

HK(IFRIC)-Int9 Reassessment of Embedded Derivatives

HK(IFRIC)-Int10 Interim Financial Reporting and Impairment

TheprincipaleffectsofadoptingthesenewandrevisedHKFRSsareasfollows:

(a) HKFRS 7 Financial Instruments: Disclosures

Thisstandardrequiresdisclosuresthatenableusersofthefinancialstatementstoevaluatethesignificance

of the Group’s financial instruments and the nature and extent of risks arising from those financial

instruments.Thenewdisclosuresareincludedthroughoutthefinancialstatements.Whiletherehasbeen

noeffectonthefinancialpositionorresultsofoperationsoftheGroup,comparativeinformationhasbeen

included/revisedwhereappropriate.

(b) HKAS 1 Amendment – Capital Disclosures

ThisamendmentrequirestheGrouptomakedisclosuresthatenableusersofthefinancialstatementsto

evaluate theGroup’s objectives, policies andprocesses formanaging capital. Thesenewdisclosures are

showninnote44tothefinancialstatements.

(c) HK(IFRIC)-Int 8 Scope of HKFRS 2

This interpretation requiresHKFRS2 to be applied to any arrangement inwhich theGroup cannot

identify specifically someor all of thegoodsor services received, forwhich equity instruments are

grantedor liabilities (basedonavalueof theGroup’sequity instruments)are incurredbytheGroupfor

a consideration, andwhich appears to be less than the fair value of the equity instruments granted or

liabilitiesincurred.Thisinterpretationhashadnoeffectonthesefinancialstatements.

(d) HK(IFRIC)-Int 9 Reassessment of Embedded Derivatives

This interpretation requires that thedate to assesswhether an embeddedderivative is required to be

separatedfromthehostcontractandaccountedforasaderivativeisthedatethattheGroupfirstbecomes

a party to the contract,with reassessment only if there is a change to the contract that significantly

modifies the cash flows. As theGrouphas no embedded derivative requiring separation from thehost

contract,theinterpretationhashadnoeffectonthesefinancialstatements.



2.2 Impact of new and revised Hong Kong Financial Reporting Standards (continued)

(e) HK(IFRIC)-Int 10 Interim Financial Reporting and Impairment

TheGroup has adopted this interpretation as of 1 January 2007, which requires that an impairment

loss recognised in a previous interimperiod in respect of goodwill or an investment in either an equity

instrumentclassifiedasavailable-for-saleorafinancialassetcarriedatcost isnotsubsequentlyreversed.

AstheGrouphadnoimpairmentlossespreviouslyreversedinrespectofsuchassets,theinterpretationhas

hadnoimpactonthefinancialpositionorresultsofoperationsoftheGroup.

2.3 Impact of issued but not yet effective Hong Kong Financial Reporting StandardsTheGrouphasnotappliedthefollowingnewandrevisedHKFRSs,thathavebeenissuedbutarenotyeteffective,

inthesefinancialstatements.

AmendmentstoHKFRS2 Share-based Payments-Vesting Conditions and Cancellations4

HKFRS3(Revised) Business Combinations5

HKFRS8 Operating Segments4

HKAS1(Revised) Presentation of Financial Statements4

HKAS23(Revised) Borrowing Costs4

HKAS27(Revised) Consolidated and Separate Financial Statements5

HK(IFRIC)-Int11 HKFRS 2 – Group and Treasury Share Transactions1

HK(IFRIC)-Int12 Service Concession Arrangements2

HK(IFRIC)-Int13 Customer Loyalty Programmes3

HK(IFRIC)-Int14 HKAS 19 – The Limit on a Defined Benefit Asset, Minimum Funding

Requirements and their Interaction2

1 Effectiveforannualperiodsbeginningonorafter1March20072 Effectiveforannualperiodsbeginningonorafter1January20083 Effectiveforannualperiodsbeginningonorafter1July20084 Effectiveforannualperiodsbeginningonorafter1January20095 Effectiveforannualperiodsbeginningonorafter1July2009

HKFRS2hasbeenamendedtorestrictthedefinitionof“vestingcondition”toaconditionthatincludesanexplicit

or implicit requirement to provide services. Anyother conditions are non-vesting conditions, whichhave to be

takenintoaccounttodeterminethefairvalueoftheequityinstrumentsgranted.Inthecasethattheawarddoes

notvestas theresultofa failuretomeetanon-vestingconditionthat iswithinthecontrolofeither theentity

or thecounterparty, thismustbeaccountedforasacancellation.TheGrouphasnotentered intoshare-based

paymentschemeswithnon-vestingconditionsattachedand,therefore,doesnotexpectsignificantimplicationson

itsaccountingforshare-basedpayments.

HKFRS3hasbeen revised to introduceanumberofchanges in theaccounting forbusinesscombinations that

willimpacttheamountofgoodwillrecognised,thereportedresultsintheperiodthatanacquisitionoccurs,and

futurereportedresults.



2.3 Impact of issued but not yet effective Hong Kong Financial Reporting Standards (continued)

HKFRS8, whichwill replaceHKAS14 SegmentReporting, specifies howan entity should report information

about its operating segments, basedon information about the componentsof the entity that is available to

thechiefoperatingdecisionmakerforthepurposesofallocatingresourcestothesegmentsandassessingtheir

performance.Thestandardalsorequiresthedisclosureof informationabouttheproductsandservicesprovided

by the segments, the geographical areas inwhich theGroup operates, and revenue from theGroup’s major

customers.TheGroupexpectstoadoptHKFRS8from1January2009.

HKAS1hasbeenrevisedto introducechanges inpresentationanddisclosuresoffinancialstatementsanddoes

notchangetherecognition,measurementordisclosureofspecifictransactionsandothereventsrequiredbyother

HKFRSs.

HKAS27hasbeenrevisedto requireachange in theownership interestofasubsidiary isaccountedforasan

equitytransaction.Therefore,suchachangewillhavenoimpactongoodwill,norwillitgiverisetoagainorloss.

Furthermore,theamendedstandardchangestheaccountingfor losses incurredbythesubsidiaryaswellasthe

lossofcontrolofasubsidiary.

ThechangesintroducedbyHKFRS3(revised)andHKAS27(revised)mustbeappliedprospectivelyandwillaffect

futureacquisitionsandtransactionswithminorityinterests.

HKAS23hasbeenrevisedtorequirecapitalisationofborrowingcostswhensuchcostsaredirectlyattributableto

theacquisition,constructionorproductionofaqualifyingasset.AstheGroup’scurrentpolicyforborrowingcosts

alignswiththerequirementsoftherevisedstandard,therevisedstandardisunlikelytohaveanyfinancialimpact

ontheGroup.

HK(IFRIC)-Int11requiresarrangementswherebyanemployeeisgrantedrightstotheGroup’sequityinstruments,

tobeaccountedforasanequity-settledscheme,eveniftheGroupacquirestheinstrumentsfromanotherparty,

or the shareholders provide the equity instruments needed.HK(IFRIC)-Int 11 also addresses the accounting for

share-basedpaymenttransactionsinvolvingtwoormoreentitieswithintheGroup.AstheGroupcurrentlyhasno

suchtransactions,theinterpretationisunlikelytohaveanyfinancialimpactontheGroup.

HK(IFRIC)-Int 12 requires anoperator under public-to-private service concession arrangements to recognise

theconsideration receivedor receivable inexchange for theconstructionservicesasa financialassetand/oran

intangible asset, based on the terms of the contractual arrangements. HK(IFRIC)-Int 12 also addresses how an

operatorshallapplyexistingHKFRSstoaccountfortheobligationsandtherightsarisingfromserviceconcession

arrangements bywhich a government or a public sector entity grants a contract for the construction of

infrastructureusedtoprovidepublicservicesand/orforthesupplyofpublicservices.AstheGroupcurrentlyhas

nosucharrangements,theinterpretationisunlikelytohaveanyfinancialimpactontheGroup.



2.3 Impact of issued but not yet effective Hong Kong Financial Reporting Standards (continued)

HK(IFRIC)-Int 13 requires that loyalty award credits granted to customers as part of a sales transaction are

accountedforasaseparatecomponentofthesalestransaction.Theconsiderationreceivedinthesalestransactionis

allocatedbetweentheloyaltyawardcreditsandtheothercomponentsofthesale.Theamountallocatedtothe

loyaltyawardcreditsisdeterminedbyreferencetotheirfairvalueandisdeferreduntiltheawardsareredeemed

ortheliabilityisotherwiseextinguished.

HK(IFRIC)-Int14addresseshowtoassessthelimitunderHKAS19EmployeeBenefits,ontheamountofarefund

orareductioninfuturecontributionsinrelationtoadefinedbenefitschemethatcanberecognisedasanasset,in

particular,whenaminimumfundingrequirementexists.

AstheGroupcurrentlyhasnocustomerloyaltyawardcreditsanddefinedbenefitscheme,HK(IFRIC)-Int13and

HK(IFRIC)-Int14arenotapplicabletotheGroupandthereforeareunlikely tohaveanyfinancial impactonthe

Group.

2.4 Summary of significant accounting policiesSubsidiaries

AsubsidiaryisanentitywhosefinancialandoperatingpoliciestheCompanycontrols,directlyorindirectly,soas

toobtainbenefitsfromitsactivities.

The resultsof subsidiariesare included in theCompany’s incomestatement to theextentofdividends received

andreceivable.TheCompany’sinterestsinsubsidiariesarestatedatcostlessanyimpairmentlosses.

Joint ventures

Ajointventureisanentitysetupbycontractualarrangement,wherebytheGroupandotherpartiesundertakean

economicactivity.ThejointventureoperatesasaseparateentityinwhichtheGroupandtheotherpartieshave

aninterest.

Thejointventureagreementbetweentheventurersstipulatesthecapitalcontributionsofthejointventureparties,

thedurationofthejointventureentityandthebasisonwhichtheassetsaretoberealiseduponitsdissolution.

Theprofitsandlossesfromthejointventure’soperationsandanydistributionsofsurplusassetsaresharedbythe

venturers,eitherinproportiontotheirrespectivecapitalcontributions,orinaccordancewiththetermsofthejoint

ventureagreement.

Ajointventureistreatedas:

(a) asubsidiary,iftheGrouphasunilateralcontrol,directlyorindirectly,overthejointventure;

(b) a jointly-controlledentity, if theGroupdoesnothaveunilateralcontrol,buthas jointcontrol,directlyor

indirectly,overthejointventure;



2.4 Summary of significant accounting policies (continued)

Joint ventures (continued)

(c) an associate, if the Group does not have unilateral or joint control, but holds, directly or indirectly,

generally not less than20%of the joint venture’s registered capital and is in a position to exercise

significantinfluenceoverthejointventure;or

(d) anequityinvestmentaccountedforinaccordancewithHKAS39,iftheGroupholds,directlyorindirectly,

lessthan20%ofthejointventure’sregisteredcapitalandhasneitherjointcontrolof,norisinaposition

toexercisesignificantinfluenceover,thejointventure.

Jointly-controlled entities

Ajointly-controlledentity isa jointventurethat issubjectto jointcontrol, resulting innoneoftheparticipating

partieshavingunilateralcontrolovertheeconomicactivityofthejointly-controlledentity.

TheGroup’sinterestsinjointly-controlledentitiesarestatedintheconsolidatedbalancesheetattheGroup’sshare

ofnetassetsundertheequitymethodofaccounting,lessanyimpairmentlosses.TheGroup’sshareofthepost-

acquisitionresultsandreservesofjointly-controlledentitiesisincludedintheconsolidatedincomestatementand

consolidatedreserves,respectively.UnrealisedgainsandlossesresultingfromtransactionsbetweentheGroupand

itsjointly-controlledentitiesareeliminatedtotheextentoftheGroup’sinterestsinthejointly-controlledentities,

exceptwhereunrealisedlossesprovideevidenceofanimpairmentoftheassettransferred.

Jointly-controlled operations

Joint venture arrangements which involve the use of the assets and other reserves of the Group and other

parties,withouttheestablishmentofaseparateentity,arereferredtoasjointly-controlledoperations.Underthis

arrangement,assets remainunder theownershipandcontrolofeachparty.Revenueandexpenses incurred in

commonaresharedbythepartiesaccordingtothecontractualarrangement.

AssetsthattheGroupcontrolsandliabilitiesthatitincursinrelationtojointly-controlledoperationsarerecognised

intheGroup’sconsolidatedbalancesheetsonanaccrualbasisandareclassifiedaccordingtothenatureofthe

items.TheGroup’sshareoftheincomethatitearnsfromjointly-controlledoperations,togetherwiththeexpenses

that it incurs, is included in theGroup’sconsolidated incomestatementwhen it isprobable that theeconomic

benefitsassociatedwiththetransactionswillflowtotheconsolidatedincomestatement.




Impairment of non-financial assets

Where an indication of impairment exists, orwhen annual impairment testing for an asset is required (other

thanpropertiesunderdevelopment,completedpropertiesheldforsale,deferredtaxassets,financialassetsand

investmentproperties),theasset’srecoverableamountisestimated.Anasset’srecoverableamountiscalculatedas

thehigheroftheasset’sorcash-generatingunit’svalueinuseanditsfairvaluelesscoststosell,andisdetermined

foranindividualasset,unlesstheassetdoesnotgeneratecashinflowsthatarelargelyindependentofthosefrom

otherassetsorgroupsofassets,inwhichcasetherecoverableamountisdeterminedforthecash-generatingunit

towhichtheassetbelongs.

Animpairmentlossisrecognisedonlyifthecarryingamountofanassetexceedsitsrecoverableamount.Inassessing

value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount

ratethatreflectscurrentmarketassessmentsofthetimevalueofmoneyandtherisksspecific totheasset.An

impairmentlossischargedtotheincomestatementintheperiodinwhichitarises,unlesstheassetiscarriedata

revaluedamount,inwhichcasetheimpairmentlossisaccountedforinaccordancewiththerelevantaccounting

policyforthatrevaluedasset.

Anassessment ismadeateach reportingdateas towhether there isany indication thatpreviously recognised

impairment lossesmayno longerexistormayhavedecreased. Ifsuch indicationexists,therecoverableamount

isestimated.Apreviouslyrecognisedimpairmentlossofanassetotherthangoodwillisreversedonlyiftherehas

beenachangeintheestimatesusedtodeterminetherecoverableamountofthatasset,butnottoanamount

higherthanthecarryingamountthatwouldhavebeendetermined(netofanydepreciation/amortisation)hadno

impairmentlossbeenrecognisedfortheassetinprioryears.Areversalofsuchimpairmentlossiscreditedtothe

incomestatementintheperiodinwhichitarises,unlesstheassetiscarriedatarevaluedamount,inwhichcase

the reversalof the impairment loss is accounted for inaccordancewith the relevantaccountingpolicy for that

revaluedasset.

Related parties

ApartyisconsideredtoberelatedtotheGroupif:

(a) theparty,directlyorindirectlythroughoneormoreintermediaries,(i)controls,iscontrolledby,orisunder

commoncontrolwith,theGroup;(ii)hasaninterestintheGroupthatgivesitsignificantinfluenceoverthe

Group;or(iii)hasjointcontrolovertheGroup;

(b) thepartyisanassociate;

(c) thepartyisajointly-controlledentity;

(d) thepartyisamemberofthekeymanagementpersonneloftheGrouporitsparent;

(e) thepartyisaclosememberofthefamilyofanyindividualreferredtoin(a)or(d);or

(f) theparty is an entity that is controlled, jointly controlled or significantly influenced by or forwhich

significantvotingpowerinsuchentityresideswith,directlyorindirectly,anyindividualreferredtoin(d)or(e).




Property, plant and equipment and depreciation

Property, plant and equipment, other than assets under construction, are stated at cost less accumulated

depreciation and any impairment losses. The cost of an itemof property, plant and equipment comprises its

purchasepriceandanydirectlyattributablecostsofbringingtheassettoitsworkingconditionandlocationfor

itsintendeduse.Expenditureincurredafteritemsofproperty,plantandequipmenthavebeenputintooperation,

suchasrepairsandmaintenance,isnormallychargedtotheincomestatementintheperiodinwhichitisincurred.

Insituationswhereitcanbeclearlydemonstratedthattheexpenditurehasresultedinanincreaseinthefuture

economicbenefitsexpectedtobeobtainedfromtheuseofanitemofproperty,plantandequipment,andwhere

thecostoftheitemcanbemeasuredreliably,theexpenditureiscapitalisedasanadditionalcostofthatassetoras

areplacement.

Depreciation is calculated on the straight-line basis towrite off the cost of each item of property, plant and

equipmenttoitsresidualvalueoveritsestimatedusefullife.Theprincipalannualratesusedforthispurposeareas

follows:

Buildings 3%–5%

Leaseholdimprovements 20%

Plantandmachinery 10%–20%

Furniture,fixturesandofficeequipment 10%–20%

Motorvehicles 10%–20%

Where parts of an item of property, plant and equipment have different useful lives, the cost of that item is

allocatedonareasonablebasisamongthepartsandeachpartisdepreciatedseparately.

Residual values, useful lives and the depreciation method are reviewed, and adjusted if appropriate, at each

balancesheetdate.

Anitemofproperty,plantandequipmentisderecognisedupondisposalorwhennofutureeconomicbenefitsare

expectedfromitsuseordisposal.Anygainorlossondisposalorretirementrecognisedintheincomestatementin

theyeartheassetisderecognisedisthedifferencebetweenthenetsalesproceedsandthecarryingamountofthe

relevantasset.

Assetsunderconstructionrepresentpropertiesunderconstruction,whicharestatedatcost lessanyimpairment

losses,andarenotdepreciated.Costcomprisesthedirectcostsofconstructionandcapitalisedborrowingcosts

on related borrowed funds during the period of construction. These properties are reclassified as investment

properties or appropriate categoryof property, plant andequipment as the casemaybeupon completed and

readyforuse.




Investment properties

Investmentproperties are interests in land andbuildings (including the leasehold interest under anoperating

lease forapropertywhichwouldotherwisemeet thedefinitionofan investmentproperty)held toearn rental

incomeand/orforcapitalappreciation,ratherthanforuseintheproductionorsupplyofgoodsorservicesorfor

administrativepurposes;or for sale in theordinarycourseofbusiness.Suchpropertiesaremeasured initiallyat

cost,includingtransactioncosts.Subsequenttoinitialrecognition,investmentpropertiesarestatedatfairvalue,

whichreflectsmarketconditionsatthebalancesheetdate.

Gains or losses arising from changes in the fair values of investment properties are included in the income

statementintheyearinwhichtheyarise.

Anygains or losses on the retirementor disposal of an investmentproperty are recognised in the income

statementintheyearoftheretirementordisposal.

When theGroup completes the constructionor development of a self-constructed investment property, any

differencebetween the fair valueof theproperty at the completion date and its previous carrying amount is

recognisedintheincomestatement.

Leases

Leaseswheresubstantiallyalltherewardsandrisksofownershipofassetsremainwiththelessorareaccounted

for as operating leases.Where theGroup is the lessor, assets leasedby theGroupunder operating leases are

included in non-current assets, and rentals receivable under theoperating leases are credited to the income

statementon thestraight-linebasisover the lease terms.Where theGroup is the lessee, rentalspayableunder

theoperatingleasesnetofanyincentivesreceivedfromthelessorarechargedtotheincomestatementonthe

straight-linebasisovertheleaseterms.

Landuse rightsunderoperating leases are initially statedat cost and subsequently recognisedon the straight-

linebasis over the lease terms.When the leasepayments cannotbe allocated reliably between the land and

buildingselements,theentireleasepaymentsareincludedinthecostofthelandandbuildingsasafinancelease

inproperty,plantandequipment.

Properties under development

Propertiesunderdevelopmentareintendedtobeheldforsaleaftercompletion.

Propertiesunderdevelopmentarestatedat the lowerofcostandnet realisablevalueandcomprise landcosts,

construction costs, borrowing costs, professional fees and other costs directly attributable to such properties

incurredduringthedevelopmentperiod.

Properties under development are classified as current assets unless the constructionperiodof the relevant

property development project is expected to complete beyond normal operating cycle. On completion, the

propertiesaretransferredtocompletedpropertiesheldforsale.



2.4 Summary of significant accounting policies (continued)Completed properties held for saleCompletedpropertiesheldforsalearestatedatthelowerofcostandnetrealisablevalue.Costisdeterminedbyanapportionmentof the total landandbuildingscostsattributable tounsoldproperties.Net realisablevalue isestimatedbythedirectorsbasedontheprevailingmarketprices,onanindividualpropertybasis.

Financial assetsFinancialassetsinthescopeofHKAS39areclassifiedasfinancialassetsatfairvaluethroughprofitorloss,loansand receivables, and available-for-sale financial assets, as appropriate. When financial assets are recognisedinitially,theyaremeasuredatfairvalue,plus, inthecaseofinvestmentsnotatfairvaluethroughprofitorloss,directlyattributabletransactioncosts.

TheGroupassesseswhetheracontractcontainsanembeddedderivativewhentheGroupfirstbecomesapartytoitandassesseswhetheranembeddedderivativeisrequiredtobeseparatedfromthehostcontractwhentheanalysis shows that the economic characteristics and risks of the embeddedderivatives are not closely relatedto thoseof thehost contract. Reassessment only occurs if there is a change in the termsof the contract thatsignificantlymodifiesthecashflowsthatwouldotherwiseberequiredunderthecontract.

TheGroup determines the classification of its financial assets after initial recognition and, where allowed andappropriate,re-evaluatesthisdesignationatthebalancesheetdate.

Allregularwaypurchasesandsalesoffinancialassetsarerecognisedonthetradedate,thatis,thedatethattheGroupcommits topurchaseorsell theasset.Regularwaypurchasesorsalesarepurchasesorsalesof financialassets that requiredeliveryof assetswithin theperiodgenerally establishedby regulationor convention in themarketplace.

Loans and receivablesLoansandreceivablesarenon-derivativefinancialassetswithfixedordeterminablepaymentsthatarenotquotedinanactivemarket.Suchassetsare subsequently carriedatamortisedcostusing theeffective interestmethodlessanyallowanceforimpairment.Amortisedcostiscalculatedtakingintoaccountanydiscountorpremiumonacquisitionandincludesfeesthatareanintegralpartoftheeffectiveinterestrateandtransactioncosts.Gainsandlossesarerecognisedintheincomestatementwhentheloansandreceivablesarederecognisedor impaired,aswellasthroughtheamortisationprocess.

Impairment of financial assetsTheGroupassessesateachbalancesheetdatewhetherthereisanyobjectiveevidencethatafinancialassetoragroupoffinancialassetsisimpaired.

Assets carried at amortised costIf there is objective evidence that an impairment loss on loans and receivables carried at amortised cost hasbeen incurred, theamountof the loss ismeasuredas thedifferencebetween theasset’s carryingamountandthepresent value of estimated future cash flows (excluding future credit losses that have not been incurred)discounted at the financial asset’s original effective interest rate (i.e., the effective interest rate computed atinitialrecognition).Thecarryingamountoftheassetisreducedeitherdirectlyorthroughtheuseofanallowanceaccount.Theamountoftheimpairmentlossisrecognisedintheincomestatement.Loansandreceivabletogetherwithanyassociatedallowancearewrittenoffwhenthereisnorealisticprospectoffuturerecovery.




Impairment of financial assets (continued)

Assets carried at amortised cost (continued)

If, in a subsequentperiod, the amountof the impairment loss decreases and thedecrease canbe related

objectivelytoaneventoccurringaftertheimpairmentwasrecognised,thepreviouslyrecognisedimpairmentloss

is reversedbyadjusting theallowanceaccount.Anysubsequent reversalofan impairment loss is recognised in

theincomestatement,totheextentthatthecarryingvalueoftheassetdoesnotexceeditsamortisedcostatthe

reversaldate.

In relation to tradeandother receivables,aprovision for impairment ismadewhen there isobjectiveevidence

(suchastheprobabilityofinsolvencyorsignificantfinancialdifficultiesofthedebtorandsignificantchangesinthe

technological,marketeconomicorlegalenvironmentthathaveanadverseeffectonthedebtor)thattheGroup

willnotbeabletocollectalloftheamountsdueundertheoriginaltermsofaninvoice.Thecarryingamountof

thereceivablesisreducedthroughtheuseofanallowanceaccount.Impaireddebtsarederecognisedwhenthey

areassessedasuncollectible.

Derecognition of financial assets

Afinancialasset(or,whereapplicable,apartofafinancialassetorpartofagroupofsimilarfinancialassets)is

derecognisedwhere:

• therightstoreceivecashflowsfromtheassethaveexpired;

• theGroupretainstherightstoreceivecashflowsfromtheasset,buthasassumedanobligationtopay

theminfullwithoutmaterialdelaytoathirdpartyundera“pass-through”arrangement;or

• theGrouphas transferred its rights to receive cash flows from the asset and either (a) has transferred

substantiallyalltherisksandrewardsoftheasset,or(b)hasneithertransferrednorretainedsubstantially

alltherisksandrewardsoftheasset,buthastransferredcontroloftheasset.

Where theGrouphas transferred its rights to receivecash flows fromanassetandhasneither transferrednor

retained substantially all the risks and rewards of the asset nor transferred control of the asset, the asset is

recognisedtotheextentoftheGroup’scontinuinginvolvementintheasset.Continuinginvolvementthattakes

theformofaguaranteeoverthetransferredassetismeasuredattheloweroftheoriginalcarryingamountofthe

assetandthemaximumamountofconsiderationthattheGroupcouldberequiredtorepay.

Where continuing involvement takes the form of awritten and/or purchased option (including a cash-settled

option or similar provision) on the transferred asset, the extent of the Group’s continuing involvement is the

amountofthetransferredassetthattheGroupmayrepurchase,exceptinthecaseofawrittenputoption(including

a cash-settledoptionor similarprovision)onanassetmeasuredat fair value,where theextentof theGroup’s

continuing involvement is limitedtothe lowerof thefairvalueof thetransferredassetandtheoptionexercise

price.




Financial liabilities at amortised cost (including interest-bearing bank borrowings)

Financialliabilitiesincludingtradeandotherpayables,andinterest-bearingbankborrowingsareinitiallystatedat

fairvaluelessdirectlyattributabletransactioncostsandaresubsequentlymeasuredatamortisedcost,usingthe

effectiveinterestmethodunlesstheeffectofdiscountingwouldbeimmaterial, inwhichcasetheyarestatedat

cost.

Gainsandlossesarerecognisedintheincomestatementwhentheliabilitiesarederecognisedaswellasthrough

theamortisationprocess.

Financial guarantee contracts

Financial guarantee contracts in the scopeofHKAS39 are accounted for as financial liabilities.A financial

guaranteecontractisrecognisedinitiallyatitsfairvaluelesstransactioncoststhataredirectlyattributabletothe

acquisition or issue of the financial guarantee contract, except when such contract is recognised at fair value

throughprofit or loss. Subsequent to initial recognition, theGroupmeasures the financial guarantee contract

at thehigherof: (i) the amountdetermined in accordancewithHKAS37Provisions,Contingent Liabilities and

Contingent Assets; and (ii) the amount initially recognised less,when appropriate, cumulative amortisation

recognisedinaccordancewithHKAS18Revenue.

Derecognition of financial liabilities

Afinancialliabilityisderecognisedwhentheobligationundertheliabilityisdischargedorcancelledorexpires.

Whenanexistingfinancial liability isreplacedbyanotherfromthesamelenderonsubstantiallydifferentterms,

or the termsofanexisting liabilityare substantiallymodified, suchanexchangeormodification is treatedasa

derecognitionoftheoriginalliabilityandarecognitionofanewliability,andthedifferencebetweentherespective

carryingamountsisrecognisedintheincomestatement.

Cash and cash equivalents

Forthepurposeoftheconsolidatedcashflowstatement,cashandcashequivalentscomprisecashonhandand

demanddeposits, and short termhighly liquid investments that are readily convertible intoknownamountsof

cash,aresubjecttoaninsignificantriskofchangesinvalue,andhaveashortmaturityofgenerallywithinthree

monthswhenacquired, lessbankoverdraftswhichare repayableondemandand forman integralpartof the

Group’scashmanagement.

Forthepurposeofthebalancesheets,cashandcashequivalentscomprisecashonhandandatbanks,including

termdeposits,andassetssimilarinnaturetocash,whicharenotrestrictedastouse.




Provisions

Aprovisionisrecognisedwhenapresentobligation(legalorconstructive)hasarisenasaresultofapasteventand

itisprobablethatafutureoutflowofresourceswillberequiredtosettletheobligation,providedthatareliable

estimatecanbemadeoftheamountoftheobligation.

When the effect of discounting is material, the amount recognised for a provision is thepresent value at the

balance sheetdateof the futureexpendituresexpected tobe required to settle theobligation.The increase in

thediscountedpresentvalueamountarisingfromthepassageoftimeisincludedinfinancecostsintheincome

statement.

Income tax

Incometaxcomprisescurrentanddeferredtax.Incometaxisrecognisedintheincomestatement,orinequityifit

relatestoitemsthatarerecognisedinthesameoradifferentperioddirectlyinequity.

Current tax assets and liabilities for the current andpriorperiodsaremeasuredat theamountexpected tobe

recoveredfromorpaidtothetaxationauthorities.

Deferred tax is provided, using the liability method, on all temporary differences at the balance sheet date

betweenthetaxbasesofassetsandliabilitiesandtheircarryingamountsforfinancialreportingpurposes.

Deferredtaxliabilitiesarerecognisedforalltaxabletemporarydifferences,except:

• wherethedeferredtaxliabilityarisesfromtheinitialrecognitionofanassetorliabilityinatransactionthat

isnotabusinesscombinationand,atthetimeofthetransaction,affectsneithertheaccountingprofitnor

taxableprofitorloss;and

• inrespectoftaxabletemporarydifferencesassociatedwithinvestmentsinsubsidiariesandinterestsinjoint

ventures,wherethetimingofthereversalofthetemporarydifferencescanbecontrolledanditisprobable

thatthetemporarydifferenceswillnotreverseintheforeseeablefuture.

Deferredtaxassetsarerecognisedforalldeductibletemporarydifferences,carryforwardofunusedtaxcreditsand

unusedtaxlosses,totheextentthatitisprobablethattaxableprofitwillbeavailableagainstwhichthedeductible

temporarydifferences,andthecarryforwardofunusedtaxcreditsandunusedtaxlossescanbeutilised,except:

• where thedeferred tax asset relating to thedeductible temporary differences arises from the initial

recognitionofanassetorliabilityinatransactionthatisnotabusinesscombinationand,atthetimeofthe

transaction,affectsneithertheaccountingprofitnortaxableprofitorloss;and

• inrespectofdeductibletemporarydifferencesassociatedwithinvestmentsinsubsidiariesandinterestsin

jointventures,deferredtaxassetsareonlyrecognisedtotheextentthatitisprobablethatthetemporary

differences will reverse in the foreseeable future and taxable profit will be available against which the

temporarydifferencescanbeutilised.




Income tax (continued)

Thecarryingamountofdeferredtaxassetsisreviewedateachbalancesheetdateandreducedtotheextentthatitis

nolongerprobablethatsufficienttaxableprofitwillbeavailabletoallowallorpartofthedeferredtaxassettobe

utilised.Conversely,previouslyunrecogniseddeferredtaxassetsarereassessedateachbalancesheetdateandare

recognisedtotheextentthatitisprobablethatsufficienttaxableprofitwillbeavailabletoallowallorpartofthe

deferredtaxassettobeutilised.

Deferredtaxassetsandliabilitiesaremeasuredatthetaxratesthatareexpectedtoapplytotheperiodwhenthe

assetisrealisedortheliabilityissettled,basedontaxrates(andtaxlaws)thathavebeenenactedorsubstantively

enactedatthebalancesheetdate.

Deferredtaxassetsanddeferredtaxliabilitiesareoffsetifalegallyenforceablerightexiststosetoffcurrenttax

assetsagainstcurrenttaxliabilitiesandthedeferredtaxesrelatetothesametaxableentityandthesametaxation

authority.

Government grants

Government grants are recognised at their fair value where there is reasonable assurance that the grant will

bereceivedandallattachingconditionswillbecompliedwithunderthegrantrelatestoanexpenses item, it is

recognisedasincomeovertheperiodsnecessarytomatchthegrantonasystematicbasistothecoststhat it is

intendedtocompensate.

Revenue recognition

Revenue is recognisedwhen it is probable that the economic benefitswill flow to theGroup andwhen the

revenuecanbemeasuredreliably,onthefollowingbases:

(a) from the saleofproperties,when the significant risks and rewardsofownershiphavebeen transferred

to the buyer, which iswhen the construction work has been completed and the properties have been

deliveredtothebuyer.Depositsandinstalmentsreceivedinrespectofpropertiessoldpriortothedateof

revenuerecognitionareincludedintheconsolidatedbalancesheetundercurrentliabilities;

(b) rentalincome,onatimeproportionbasisovertheleaseterms;

(c) propertymanagementfeeincome,whenrelatedmanagementserviceshavebeenprovided;and

(d) interestincome,onanaccrualbasisusingtheeffectiveinterestmethodbyapplyingtheratethatdiscounts

theestimatedfuturecashreceiptsthroughtheexpectedlifeofthefinancialinstrumenttothenetcarrying

amountofthefinancialasset.




Employee benefits

Pension schemes

The Groupoperates a defined contribution Mandatory Provident Fund retirement benefits scheme (the“MPF

Scheme”) under theMandatory Provident Fund SchemesOrdinance for those employeeswho are eligible

to participate in theMPF Scheme. Contributions aremade based on a percentage of the employees’ basic

salariesandarecharged to the incomestatementas theybecomepayable inaccordancewith the rulesof the

MPFScheme.Theassetsof theMPFSchemeareheld separately from thoseof theGroup inan independently

administeredfund.TheGroup’semployercontributionsvestfullywiththeemployeeswhencontributedintothe

MPFScheme.

The employees of theGroup’s subsidiarieswhichoperate in the PRCare required to participate in a central

pensionschemeoperatedbythelocalmunicipalgovernment.Theassetsoftheschemeareheldseparatelyfrom

thoseoftheGroupinanindependentlyadministeredfund.Contributionsaremadebasedonapercentageofthe

employees’basicsalariesandarechargedtotheincomestatementasandwhenthecontributionsfalldue.

Borrowing costs

Borrowingcostsdirectlyattributabletotheacquisition,constructionorproductionofqualifyingassets,i.e.,assets

thatnecessarilytakeasubstantialperiodoftimetogetreadyfortheirintendeduseorsale,arecapitalisedaspart

of thecostof thoseassets.Thecapitalisationof suchborrowingcosts ceaseswhen theassetsare substantially

ready for their intended use or sale. Investment income earned on the temporary investment of specific

borrowingspendingtheirexpenditureonqualifyingassetsisdeductedfromtheborrowingcostscapitalised.

Dividends

Finaldividendsproposedbythedirectorsareclassifiedasaseparateallocationofretainedprofitswithintheequity

sectionofthebalancesheet,untiltheyhavebeenapprovedbytheshareholdersinageneralmeeting.Whenthese

dividendshavebeenapprovedbytheshareholdersanddeclared,theyarerecognisedasaliability.

Foreign currencies

The Company’s functional currency is inHong Kong dollar while thepresentation currency of these financial

statementsisinRMB.Intheopinionofthedirectors,astheGroup’soperationsaremainlyinthePRC,theuseof

RMBas thepresentationcurrency ismoreappropriate for thepresentationof theGroup’s resultsand financial

position. Each entity in theGroupdetermines its own functional currency and items included in the financial

statementsofeachentityaremeasuredusingthatfunctionalcurrency.Foreigncurrencytransactionsareinitially

recordedusingthefunctionalcurrencyratesrulingatthedateofthetransactions.Monetaryassetsandliabilities

denominated in foreign currencies are retranslated at the functional currency rates of exchange ruling at the

balance sheetdate.Alldifferencesare taken to the incomestatement.Non-monetary items thataremeasured

intermsofhistoricalcostinaforeigncurrencyaretranslatedusingtheexchangeratesatthedatesoftheinitial

transactions.Non-monetaryitemsmeasuredatfairvalueinaforeigncurrencyaretranslatedusingtheexchange

ratesatthedatewhenthefairvaluewasdetermined.




Foreign currencies (continued)

ThefunctionalcurrenciesofcertainoverseassubsidiariesarecurrenciesotherthanRMB.Asatthebalancesheet

date, theassetsand liabilitiesof theseentitiesare translated into thepresentationcurrencyof theCompanyat

theexchangeratesrulingatthebalancesheetdate,andtheirincomestatementsaretranslatedintoRMBatthe

weightedaverageexchangeratesfortheyear.Theresultingexchangedifferencesare included intheexchange

fluctuationreserve.Ondisposalofaforeignentity,thedeferredcumulativeamountrecognisedinequityrelating

tothatparticularforeignoperationisrecognisedintheincomestatement.

For thepurposeof theconsolidatedcash flowstatement, thecash flowsofoverseassubsidiariesare translated

intoRMBattheexchangeratesrulingatthedatesofthecashflows.Frequentlyrecurringcashflowsofoverseas

subsidiarieswhicharisethroughouttheyeararetranslatedintoRMBattheweightedaverageexchangeratesfor

theyear.

3. Significant accounting judgements and estimatesThepreparationof theGroup’s financial statements requiresmanagement tomake judgements, estimatesand

assumptionsthataffectthereportedamountsofrevenues,expenses,assetsandliabilities,andthedisclosureof

contingent liabilities,at the reportingdate.However,uncertaintyabout theseassumptionsandestimatescould

result in outcomes that could require amaterial adjustment to the carrying amounts of the assets or liabilities

affectedinthefuture.

Judgements

In theprocess of applying theGroup’s accounting policies, management hasmade the following judgements,

apartfromthoseinvolvingestimations,whichhavethemostsignificanteffectontheamountsrecognisedinthe

financialstatements:

Operating lease commitments – Group as lessor

TheGrouphas entered into commercial property leases on its investment property portfolio. TheGrouphas

determinedthatitretainsallthesignificantrisksandrewardsofownershipofthesepropertieswhichareleased

outonoperatingleases.

Classification between investment properties and owner-occupied properties

The Group determines whether a property qualifies as an investment property, and has developed criteria in

makingthatjudgement.Investmentpropertyisapropertyheldtoearnrentalsorforcapitalappreciationorboth.

Therefore,theGroupconsiderswhetherapropertygeneratescashflowslargelyindependentlyoftheotherassets

heldbytheGroup.

Somepropertiescompriseaportionthatisheldtoearnrentalsorforcapitalappreciationandanotherportionthatis

heldforuseintheproductionorsupplyofgoodsorservicesorforadministrativepurposes.Iftheseportionscould

besoldseparately(orleasedoutseparatelyunderafinancelease),theGroupaccountsfortheportionsseparately.

Iftheportionscouldnotbesoldseparately,thepropertyisaninvestmentpropertyonlyifaninsignificantportionis

heldforuseintheproductionorsupplyofgoodsorservicesorforadministrativepurposes.

Judgementismadeonanindividualpropertybasistodeterminewhetherancillaryservicesaresosignificantthata

propertydoesnotqualifyasaninvestmentproperty.



3. Significant accounting judgements and estimates (continued)

Judgements (continued)

Classification between investment properties and properties held for sales

TheGroupdevelopspropertiesheld for saleandpropertiesheld toearn rentalsand/or forcapitalappreciation.

Judgement ismadeby themanagementondeterminingwhether a property is designated as an investment

property or a property held for sale. TheGroup considers its intention for holding theproperties at the early

development stage of the related properties. During the course of construction, the relatedproperties under

constructionareaccounted foraspropertiesunderdevelopment included incurrentassets if thepropertiesare

intended for sale after its completion,whereas, theproperties are accounted for as assets under construction

included in non-current assets if theproperties are intended to beheld to earn rentals and/or for capital

appreciation.Upon completionof theproperties, theproperties held for sale are transferred to completed

properties held for sale and are stated at cost, while theproperties held to earn rentals and/or for capital

appreciationaretransferredtoinvestmentpropertiesandaresubjecttorevaluationateachbalancesheetdate.

Estimation uncertainty

Thekeyassumptionsconcerningthefutureandotherkeysourcesofestimationuncertaintyatthebalancesheet

date,thathaveasignificantriskofcausingamaterialadjustmenttothecarryingamountsofassetsandliabilities

withinthenextfinancialyear,arediscussedbelow.

Corporate income taxes

TheGroupissubjecttocorporateincometaxesinthePRC.Asaresultofthefactthatcertainmattersrelatingto

thecorporateincometaxeshavenotbeenconfirmedbythelocaltaxbureau,objectiveestimateandjudgement

basedon currently enacted tax laws, regulations andother relatedpolicies are required in determining the

provisionofcorporateincometaxes.Wherethefinaltaxoutcomeofthesemattersaredifferentfromtheamounts

originally recorded, thedifferenceswill impact on the corporate income tax and tax provision in theperiod in

whichthedifferencesrealise.

PRC land appreciation taxes

TheGroup is subject to land appreciation taxes in the PRC. Theprovisionof land appreciation taxes is based

onmanagement’s best estimates according to theunderstandingof the requirements set forth in the relevant

PRCtaxlawsandregulations.Theactual landappreciationtax liabilitiesaresubjecttothedeterminationbythe

taxauthoritiesuponthecompletionof thepropertydevelopmentprojects.TheGrouphasnot finalised its land

appreciationtaxcalculationsandpaymentswiththetaxauthoritiesforcertainpropertydevelopmentprojects.The

finaloutcomecouldbedifferentfromtheamountsthatwereinitiallyrecorded,andanydifferenceswillimpactthe

landappreciationtaxexpensesandtherelatedprovisionintheperiodinwhichthedifferencesrealise.

Deferred tax assets

Deferredtaxassetsarerecognisedforallunusedtaxlossestotheextentthatitisprobablethattaxableprofitwill

beavailableagainstwhichthelossescanbeutilised.Significantmanagementjudgementisrequiredtodetermine

theamountofdeferredtaxassetsthatcanberecognised,baseduponthelikelytimingandleveloffuturetaxable

profitstogetherwithfuturetaxplanningstrategies.Thecarryingvalueofdeferredtaxassetsrelatingtorecognised

taxlossesat31December2007wasnil(2006:RMB31.9million).Furtherdetailsarecontainedinnote31tothe

financialstatements.



3. Significant accounting judgements and estimates (continued)

Estimation uncertainty (continued)

Fair value of investment properties

Investmentpropertiesarerevaluedatthebalancesheetdateonamarketvalue,existingusebasisbyindependent

professionally qualified valuers. Such valuations were based on certain assumptions, which are subject to

uncertaintyandmightmateriallydifferfromtheactualresults.Inmakingtheestimation,informationfromcurrent

prices inanactivemarketforsimilarproperties isconsideredandassumptionsthataremainlybasedonmarket

conditionsexistingatthebalancesheetdateareused.

Recognition and allocation of construction cost on properties under development

Developmentcostsofpropertiesarerecordedaspropertiesunderdevelopmentduringconstructionstageandwill

betransferredtocompletedpropertiesheldforsaleuponcompletion.Anapportionmentof thesecostswillbe

recognisedintheincomestatementsupontherecognitionofthesaleoftheproperties.Beforethefinalsettlement

of thedevelopmentcostsandothercosts relating to the saleof theproperties, thesecostsareaccruedby the

Groupbasedonmanagement’sbestestimate.

Whendevelopingproperties,theGroupmaydividethedevelopmentprojects intophases.Specificcostsdirectly

relatedtothedevelopmentofaphasearerecordedasthecostofsuchphase.Coststhatarecommontophases

areallocatedtoindividualphasesbasedontheestimatedsaleableareaoftheentireproject.

Where the final settlement of costs and the related cost allocation is different from the initial estimates, any

increaseordecreaseinthedevelopmentcostsandothercostswouldaffecttheprofitorlossinfutureyears.

4. Segment informationThe Group’s operating businesses are structured andmanaged separately according to thenature of their

operations and the products and services they provide. Each of the Group’s business segments represents a

strategicbusinessunitthatoffersproductsandserviceswhicharesubjecttorisksandreturnsthataredifferent

from thoseof theotherbusiness segments.No furthergeographical segment information ispresentedasover

90%oftheGroup’srevenueisderivedfromcustomersbasedinthePRC,andover90%oftheGroup’sassetsare

locatedinthePRC.Summarydetailsofthebusinesssegmentsareasfollows:

(a) thepropertydevelopmentsegmentengagesinthedevelopmentandsaleofproperties;

(b) theproperty investment segment invests in properties for their rental income and/or for capital

appreciation;and

(c) thepropertymanagement segmentengages in theprovisionofmanagement services to residentialand

commercialproperties.

Therewerenointersegmentsalesandtransfersduringtheyear(2006:Nil).



4. Segment information (continued)

Business segments

Thefollowingtablespresentrevenue,profitandcertainasset,liabilityandexpenditureinformationfortheGroup’s

businesssegmentsfortheyearsended31December2007and2006.

Year ended 31 December 2007

Property Property Property

development investment management Total

RMB’000 RMB’000 RMB’000 RMB’000

Segment revenue:

Salestoexternalcustomers 3,846,838 11,639 9,659 3,868,136

Segmentresults 1,980,306 2,312,417 1,994 4,294,717

Interestincomeandunallocatedincome 192,765

Unallocatedexpenses (148,099 )

Financecosts (18,749 )

Shareofprofitandlossofajointly-

controlledentity (36 ) – – (36 )

Profitbeforetax 4,320,598

Tax (1,637,788 )

Profitfortheyear 2,682,810

Assets and liabilities

Segmentassets 10,340,248 4,316,615 188 14,657,051

Interestinajointly-controlledentity 3,905 – – 3,905

Unallocatedassets 4,313,577

Totalassets 18,974,533

Segmentliabilities 3,616,568 605,427 – 4,221,995

Unallocatedliabilities 5,480,192

Totalliabilities 9,702,187

Other segment information:

Depreciationandamortisation 4,916 1,245 32 6,193

Fairvaluegainsoninvestment

properties – 2,288,520 – 2,288,520



4. Segment information (continued)

Business segments (continued)

Yearended31December2006

Property Property Property

development investment management Total

RMB’000 RMB’000 RMB’000 RMB’000

Segment revenue:

Salestoexternalcustomers 646,871 3,390 4,371 654,632

Segmentresults 166,186 168,573 357 335,116

Interestincomeandunallocatedincome 10,821

Unallocatedexpenses (51,265)

Financecosts (15,455)

Shareofprofitandlossofajointly-

controlledentity (81) – – (81)

Profitbeforetax 279,136

Tax (121,980)

Profitfortheyear 157,156

Assets and liabilities

Segmentassets 1,847,574 1,359,045 210 3,206,829

Interestinajointly-controlledentity 3,941 – – 3,941

Unallocatedassets 1,195,564

Totalassets 4,406,334

Segmentliabilities 571,491 31,055 – 602,546

Unallocatedliabilities 2,816,761

Totalliabilities 3,419,307

Other segment information:

Depreciationandamortisation 3,103 21 31 3,155

Fairvaluegainsoninvestment

properties – 151,611 – 151,611



5. Revenue, other income and gainsRevenue,whichisalsotheGroup’sturnover,representsthegrossproceeds,netofbusinesstax,fromthesaleof

properties,grossrentalincomereceivedandreceivablefrominvestmentpropertiesandpropertymanagementfee

incomeduringtheyear.

Ananalysisofrevenue,otherincomeandgainsisasfollows:

2007 2006

RMB’000 RMB’000

Revenue

Saleofproperties 3,846,838 646,871

Grossrentalincome 11,639 3,390

Propertymanagementfees 9,659 4,371

3,868,136 654,632

Other income and gains

Bankinterestincome 133,327 3,749

Gainondisposalofinvestmentproperties 13,784 14,812

Governmentgrant* 7,900 –

Foreignexchangedifferences,net 43,179 –

Others 8,359 7,072

206,549 25,633

* AgovernmentgranthasbeenreceivedforsettingupbusinessinaneconomicandtechnologicaldevelopmentzoneinGuangzhou,thePRC.Therearenounfulfilledconditionsorcontingenciesrelatingtothisgrant.



6. Profit before taxTheGroup’sprofitbeforetaxisarrivedataftercharging/(crediting):

2007 2006


Costofpropertiessold 1,804,785 450,936

Depreciation 14 5,930 3,047

Amortisationoflanduserights 16 263 108

Minimumleasepaymentsunderoperatingleasesof

landandbuildings 1,819 1,702

Auditors’remuneration 3,468 416

Employeebenefitsexpense(excludingdirectors’

remuneration(note8)):

Wagesandsalaries 63,875 30,022

Pensionschemecontributions* 2,835 988

Less:Amountcapitalisedinassetsunderconstruction

andpropertiesunderdevelopment (30,224 ) (13,790)

36,486 17,220

Directoperatingexpenses(includingrepairsandmaintenance)

arisingonrental-earninginvestmentproperties 2,337 591

* At31December2007, theGrouphadno forfeitedcontributionsavailable to reduce its contributions to thepensionschemeinfutureyear(2006:Nil).

7. Finance costs

Group

2007 2006

RMB’000 RMB’000

Interestonbankandotherloanswhollyrepayablewithinfiveyears 186,629 105,802

Interestonamountsduetorelatedcompanies 245 5,879

Less:Interestcapitalised (168,125 ) (96,226)

18,749 15,455



8. Directors’ remunerationDirectors’ remuneration for theyear,disclosedpursuant to theRulesGoverning theListingofSecuritieson the

StockExchangeandSection161oftheHongKongCompaniesOrdinance,isasfollows:

Group

2007 2006

RMB’000 RMB’000

Fees 1,027 –

Otheremoluments:

Salaries,allowancesandbenefitsinkind 2,246 1,515

Pensionschemecontributions 132 8

2,378 1,523

3,405 1,523

(a) Independent non-executive directors

Thefeespaidtoindependentnon-executivedirectorsduringtheyearwereasfollows:

2007 2006

RMB’000 RMB’000

Mr.LeeKaSze,Carmelo 140 –

Mr.DaiFeng 140 –

Mr.TamChunFai 140 –

420 –

Therewerenootheremolumentspayabletotheindependentnon-executivedirectorsduringtheyear(2006:

Nil).



8. Directors’ remuneration (continued)

(b) Executive directors

Salaries,

allowances Pension

and benefits scheme Total

Fees in kind contributions remuneration

RMB’000 RMB’000 RMB’000 RMB’000

2007

Executivedirectors:

Mr.KongJianMin 140 801 35 976

Mr.KongJianTao 140 443 34 617

Mr.KongJianNan 140 443 34 617

Mr.LiJianMing 140 392 25 557

Mr.TsuiKamTim 47 167 4 218

607 2,246 132 2,985

2006

Executivedirectors:

Mr.KongJianMin – 865 3 868

Mr.KongJianTao – 325 3 328

Mr.KongJianNan – 325 2 327

– 1,515 8 1,523

Therewasnoarrangementunderwhichadirectorwaivedoragreedtowaiveanyremunerationduringthe

year(2006:Nil).

OneofthefiveexecutivedirectorsoftheCompanyisalsothechieffinancialofficeroftheCompanyand

theremunerationofthisdirectorstatedaboveincludetheremunerationpaidtohimasthechieffinancial

officerafterhisappointmentofdirectoron7November2007.



9. Five Highest Paid EmployeesThe five highest paid employees during the year included three (2006: three) directors, details ofwhose

remunerationare setout innote8above.Oneof them is the chief financialofficerof theCompanyandwas

appointed as executive director on7November 2007.Details of the emoluments of this director prior to his

appointment and details of the emoluments of the remaining one (2006: two) non-director, highest paid

employeesfortheyearareasfollows:

Group

2007 2006

RMB’000 RMB’000

Salaries,allowancesandbenefitsinkind 2,613 2,592

Pensionschemecontributions 19 –

2,632 2,592

Thenumber of non-director, highest paid employees whose emoluments fell within the following bands is as

follows:

Number of employees

2007 2006

NiltoHK$1,000,000 1 1

HK$1,000,001toHK$1,500,000 1 –

HK$1,500,001toHK$2,000,000 – 1

2 2

NoemolumentswerepaidbytheGrouptothedirectorsoranyofthenon-director,highestpaidindividualsasan

inducementtojoinoruponjoiningtheGrouporascompensationforlossofoffice(2006:Nil).



10. Tax Group

2007 2006

RMB’000 RMB’000

Group:

Current–HongKong – –

Current–PRC

Corporateincometax(“CIT”) 660,604 58,895

Landappreciationtax(“LAT”) 572,215 32,828

1,232,819 91,723

Deferred(note31) 404,969 30,257

Totaltaxchargefortheyear 1,637,788 121,980

A reconciliationof the taxexpenseapplicable toprofitbefore taxusing the statutory rates for the jurisdictions

inwhichthemajorityoftheGroup’ssubsidiariesaredomiciledtothetaxexpenseattheeffectivetaxrates,isas

follows:

Group

2007 2006

RMB’000 RMB’000

Profitbeforetax 4,320,598 279,136

Atstatutoryincometaxrateof33%(2006:33%) 1,425,797 92,115

Effectondeferredtaxofdecreaseinrates (205,208 ) –

Incomenotsubjecttotax (44,982 ) (674)

Expensesnotdeductiblefortax 22,400 7,527

Landappreciationtax 572,215 32,828

Effectoflandappreciationtax (143,054 ) (10,833)

Others 10,620 1,017

TaxchargeattheGroup’seffectiverateof37.9%

(2006:43.7%) 1,637,788 121,980



10. Tax (continued)

Hong Kong profits tax

NoHongKongprofitstaxhasbeenprovidedbecausetheGroupdidnotgenerateanyassessableprofitsarisingin

HongKongduringtheyear.

PRC corporate income tax

ThePRCcorporateincometaxinrespectofoperationsinthePRChasbeencalculatedattheapplicabletaxrate

on the estimated assessable profits for the years ended 31December 2006 and2007, basedon the existing

legislation,interpretationsandpracticesinrespectthereof.PursuanttothePRCcorporateincometaxlawpassed

bytheTenthNationalPeople’sCongresson16March2007,thenewcorporateincometaxratesfordomesticand

foreignenterprisesareunifiedat25%,whichiseffectivefrom1January2008.Asaresult,thecorporateincome

taxrateofallthesubsidiariesoftheCompanyincorporatedinthePRC,willchangefrom33%to25%witheffect

from1January2008.Thechangeinthecarryingamountofthedeferredtaxassetsandliabilities,asaresultof

thechangeintaxrate,hasbeenreflectedinthisfinancialstatementsfortheyearended31December2007.

PRC land appreciation tax

PRCLATisleviedatprogressiveratesrangingfrom30%to60%ontheappreciationofthelandvalue,beingthe

proceedsofsalesofpropertieslessdeductibleexpendituresincludingamortisationoflanduserights,borrowing

costsandallpropertydevelopmentexpenditures.

11. Profit attributable to equity holders of the parentTheconsolidatedprofitattributabletoequityholdersoftheparentfortheyearended31December2007includes

aprofitofRMB480,358,000(2006:RMB2,042,000)whichhasbeendealtwithinthefinancialstatementsofthe

Company(note34(b)).



12. Dividends 2007 2006

RMB’000 RMB’000

Proposedfinal–RMB15cents(2006:Nil)perordinaryshare 389,063 –

Theproposed final dividend for the year is subject to the approval of theCompany’s shareholders at the

forthcomingannualgeneralmeeting.

13. Earnings per share attributable to ordinary equity holders of the parentThecalculationofthebasicearningspershareamountfortheyearisbasedontheprofitfortheyearattributable

toordinaryequityholdersoftheparent,andtheweightedaveragenumberofordinarysharesinissueduringthe

year.Fortheyearended31December2006,theweightedaveragenumberofordinarysharesforthepurposesof

basicearningspersharehasbeenadjustedforthecapitalisationissueinJune2007.

Adilutedearningspershareamountfortheyearsended31December2007and2006havenotbeendisclosedas

nodilutingeventsexistedduringtheseyears.

Thecalculationofbasicearningspershareisbasedon:

2007 2006

RMB’000 RMB’000

Earnings

Profitattributabletoordinaryequityholdersoftheparent 2,683,055 157,156

Number of shares

2007 2006

Shares

Weightedaveragenumberofordinarysharesinissue

duringtheyearusedinthebasicearningspersharecalculation 2,231,849,315 1,711,130



14. Property, plant and equipmentGroup

Furniture,

Leasehold fixtures Assets

improve- Plant and and office Motor under

Buildings ments machinery equipment vehicles construction Total

RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000

31 December 2007

At31December2006and

at1January2007:

Cost 10,538 1,329 3,188 4,360 19,489 529,535 568,439

Accumulateddepreciation (1,695 ) (1,079 ) (1,124 ) (1,032 ) (6,160 ) – (11,090 )

Netcarryingamount 8,843 250 2,064 3,328 13,329 529,535 557,349

At1January2007,netof

accumulateddepreciation 8,843 250 2,064 3,328 13,329 529,535 557,349

Additions – – – 4,511 4,208 404,994 413,713

Disposals – – – (7 ) – – (7 )

Depreciationprovided

duringtheyear (1,493 ) (250 ) (610 ) (1,296 ) (2,281 ) – (5,930 )

Writebackofdisposals – – – 7 – – 7

Transfers 70,355 – – – – (70,355 ) –

Transfertoinvestment

properties(note15) – – – – – (712,493 ) (712,493 )

Reclassification – – – – – (24,954 ) (24,954 )

At31December2007,netof

accumulateddepreciation 77,705 – 1,454 6,543 15,256 126,727 227,685

At31December2007:

Cost 80,893 1,329 3,188 8,864 23,697 126,727 244,698

Accumulateddepreciation (3,188 ) (1,329 ) (1,734 ) (2,321) (8,441 ) – (17,013 )

Netcarryingamount 77,705 – 1,454 6,543 15,256 126,727 227,685



14. Property, plant and equipment (continued)

Group

Furniture,

Leasehold fixtures Assets

improve- Plant and and office Motor under

Buildings ments machinery equipment vehicles construction Total

RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000

31 December 2006

At1January2006:

Cost 10,538 1,329 2,221 1,627 16,243 272,958 304,916

Accumulateddepreciation (1,252) (945) (569) (443) (4,834) – (8,043)


At1January2006,netof


Additions – – 967 2,733 3,246 314,891 321,837

Depreciationprovided

duringtheyear (443) (134) (555) (589) (1,326) – (3,047)

Transfertoinvestment

properties(note15) – – – – – (58,314) (58,314)



At31December2006:

Cost 10,538 1,329 3,188 4,360 19,489 529,535 568,439

Accumulateddepreciation (1,695) (1,079) (1,124) (1,032) (6,160) – (11,090)




14. Property, plant and equipment (continued)

Company Furniture,

fixtures and Motor

office equipment vehicles Total

RMB’000 RMB’000 RMB’000

31 December 2007

At31December2006and1January2007,

netofaccumulateddepreciation – – –

Additions 47 482 529

Depreciationprovidedduringtheyear (7 ) (23 ) (30 )


accumulateddepreciation 40 459 499

At31December2007:

Cost 47 482 529

Accumulateddepreciation (7 ) (23 ) (30 )

Netcarryingamount 40 459 499

At31December2007,certainoftheGroup’sbuildingofRMB52,001,000(2006:Nil)werepledgedtobanksfor

securingtheloansgrantedtotheGroup(note29).

At 31 December 2006, certain of theGroup’s assets under construction of RMB16,819,000 were pledged to

banksforsecuringtheloansgrantedtotheGroup(note29).

At thebalancesheetdate, theGroup is in theprogressofobtaining thepropertyownershipcertificatesof the

Group's buildingswithnet carrying amount of approximately RMB51,861,000 (2006:Nil) from the relevant

government authorities. The related land use right certificates had been obtained and the directors of the

Companyconsiderthattheaforementionedpropertyownershipcertificateswillbeobtainedinthenearfuture.



15. Investment properties

Group

2007 2006

RMB’000 RMB’000

Carryingamountat1January 531,545 344,618

Transferfromlanduserights(note16) 169,956 7,685

Transferfromassetsunderconstruction(note14) 712,493 58,314

Disposals (51,595 ) (30,683)

Netgainsfromafairvalueadjustment 2,288,520 151,611

Carryingamountat31December 3,650,919 531,545

TheGroup’sinvestmentpropertiesaresituatedinthePRCandareheldundertheleasetermsof10to50years.

TheGroup’sinvestmentpropertieswererevaluedon31December2007byCBRichardEllisLimited,independent

professionally qualified valuers, at RMB3,650,919,000on anopenmarket, existingusebasis.Certain of the

Group’sinvestmentpropertiesareleasedtothirdpartiesunderoperatinglease,furthersummarydetailsofwhich

are included in note 40(a). Thegross rental income received and receivable by Group anddirect expenses in

respectoftheseinvestmentpropertiesaresummarisedasfollows:

Group

2007 2006

RMB’000 RMB’000

Grossrentalincome 11,639 3,390

Directexpenses (2,337 ) (591)

Netrentalincome 9,302 2,799

At31 December 2007, the Group’s investment properties with a value of RMB3,153,739,000 (2006:

RMB341,396,000)werepledgedtosecuregeneralbankingfacilitiesgrantedtotheGroup(note29).

At thebalancesheetdate, theGroup is in theprogressofobtaining thepropertyownershipcertificatesof the

Group’sinvestmentpropertieswithnetcarryingamountofapproximatelyRMB3,157,580,000(2006:Nil)fromthe

relevantgovernmentauthorities.Therelatedlanduserightcertificateshadbeenobtainedandthedirectorsofthe

Companyconsiderthattheaforementionedpropertyownershipcertificateswillbeobtainedinthenearfuture.

FurtherparticularsoftheGroup’smajorinvestmentpropertiesareincludedonpage130oftheannualreport.



16. Land use rights

Group

2007 2006

RMB’000 RMB’000

At1January 290,944 293,260

Additions 779,575 5,477

Amortisationrecognisedasexpenses (263 ) (108)

Reclassification (24,427 ) –

Transfertoinvestmentproperties(note15) (169,956 ) (7,685)

At31December 875,873 290,944

Currentportionincludedinprepayments,depositsandotherreceivables (619 ) (108)

Non-currentportion 875,254 290,836

LocatedinthePRCandheldundertheleasetermsof10to50years 875,873 290,944

Certain of the Group’s landuse rights of RMB47,193,000 (2006: RMB45,485,000)werepledged to banks to

securetheloansgrantedtotheGroup(note29).

Atthebalancesheetdate,theGroupisintheprogressofobtainingthelanduserightcertificatesoftheGroup

with an aggregate net carrying amount of approximately RMB393,096,000 (2006: Nil) from the relevant

governmentauthorities.ThedirectorsoftheCompanyconsiderthattherelevantlanduserightcertificatewillbe

obtaineduponthefullpaymentofthepurchaseconsiderationinaccordancewiththetermsofthelandacquisition

agreements.

17. Interests in subsidiaries

Company

2007 2006

RMB’000 RMB’000

Unlistedshares,atcost 300,306 300,306

Duefromsubsidiaries 5,704,574 604,276

6,004,880 904,582

Theamountsadvancedtothesubsidiariesincludedintheinterestsinsubsidiariesaboveareunsecured,interest-

free andhave no fixed terms of repayment. The carrying amounts of these amounts due from subsidiaries

approximatetotheirfairvalues.



17. Interests in subsidiaries (continued)

Particularsoftheprincipalsubsidiariesareasfollows:

Nominal value Percentage

Place of of issued of equity

incorporation/ ordinary/ attributable to

registration registered the Company Principal

Name and operations share capital Direct Indirect activities

HappyClearConsultantsLimited BritishVirgin US$1,000 100 – Investment

(“HappyClear”) Islands/ holding

HongKong

ReachLuckConsultantsLimited BritishVirgin US$1 – 100 Investment

Islands/ holding

HongKong

BoomFaithInternationalLimited BritishVirgin US$1 – 100 Investment

Islands/ holding

HongKong

RisingWaveEnterprisesLimited BritishVirgin US$1 – 100 Investment

Islands/ holding

HongKong

GoodExcelEnterprisesLimited BritishVirgin US$1 – 100 Investment

Islands/ holding

HongKong

PrimeWayEnterprisesLimitedˆ BritishVirgin US$1 – 100 Investment

Islands/ holding

HongKong

GuangzhouHejingRealEstate PRC US$99,000,000 – 100 Property

DevelopmentLimited*# development

GuangzhouHejingMeifuReal PRC US$12,930,000 – 100 Property

EstateDevelopmentLimited# development

GuangzhouHejingYingfuReal PRC RMB35,000,000 – 100 Property

RealEstateDevelopment development

Limited#




Particularsoftheprincipalsubsidiariesareasfollows: (continued)






GuangzhouXinhengchang PRC RMB792,000,000 – 100 Property

EnterpriseDevelopmentLimited*# development

GuangzhouZhongtianying PRC US$198,000,000 – 100 Property


Limited*#

GuangzhouTianjian PRC RMB1,485,000,000 – 100 Property


Limited*#

GuangzhouFuxinProperty PRC RMB7,000,000 – 100 Property

ManagementLimited*# management

GuangzhouNingjunProperty PRC RMB7,000,000 – 100 Property

ManagementLimited*# management

GuangzhouJunzhaoProperty PRC RMB7,000,000 – 100 Property

OperationLimited*# management

GuangzhouJinyiConstruction PRC RMB20,000,000 – 100 Construction

ProjectSupervisionLimited# supervision

and

consultancy

ChengduZhongtianying PRC RMB20,000,000 – 100 Property

RealEstateDevelopmentLimited#* development

GuangzhouLiangyuInvestment PRC RMB30,000,000 – 94.5 Property

Limited development

(“GuangzhouLiangyu”)#+




Particularsoftheprincipalsubsidiariesareasfollows: (continued)






HainanNewWorldProperty PRC HK$15,000,000 – 100 Property

Development(HK)Limited development

(“HainanNewWorld”)#+*

SuzhouHeijingReal PRC RMB20,000,000 – 100 Property

EstateDevelopmentLimited#ˆ* development

DongguanHeijingHanyuan PRC RMB20,000,000 – 100 Property

InvestmentLimited#ˆ* development

* Theseentitiesareregisteredaswholly-foreign-ownedenterprisesunderPRClaw.

# TheEnglishnamesofthesecompaniesreferredtointhesefinancialstatementsrepresentmanagement’sbestefforttotranslatetheChinesenamesofthosecompanies,asnoEnglishnameshavebeenregistered.

+ ThesecompanieswereacquiredbytheGroupduringtheyear,furtherdetailsofacquisitionofsubsidiariesareincludedinnote36tothefinancialstatements.

ˆ Thesecompanieswerenewlyestablishedduringtheyear.

Theabovetable liststhesubsidiariesoftheCompanywhich, intheopinionofthedirectors,principallyaffected

theresults for theyearor formedasubstantialportionof thenetassetsof theGroup.Togivedetailsofother

subsidiarieswould,intheopinionofthedirectors,resultinparticularsofexcessivelength.

18. Interest in a jointly-controlled entity/amounts due from/(to) a jointly-controlled entity

Group

2007 2006

RMB’000 RMB’000

Shareofnetassets 3,905 3,941

Duefrom/(to)ajointly-controlledentity 29,001 (12,999)



18. Interest in a jointly-controlled entity/amounts due from/(to) a jointly-controlled entity (continued)

The amount due from/(to) a jointly-controlled entity is unsecured, interest-free and has no fixed terms of

repayment.Thecarryingamountsoftheamountsduefrom/(to)ajointly-controlledentityapproximatetotheirfair

values.

Particularsofthejointly-controlledentityareasfollows:

Particulars Place of Percentage of

of issued incorporation/ Ownership Voting Profit Principal

Name shares held registration interest power sharing activity

GuangzhouWeibaiReal Registered PRC 50 50 50 Property

EstateDevelopment capitalof development

Limited RMB8,100,000

TheEnglishnameofthiscompanyreferredtointhesefinancialstatementsrepresentmanagement’sbestefforttotranslatetheChinesenamesofthiscompany,asnoEnglishnamehasbeenregistered.

The above investment in jointly-controlled entity is indirectly held by theCompany through awholly-owned

subsidiary.

ThefollowingtableillustratesthesummarisedfinancialinformationoftheGroup’sjointly-controlledentity:

2007 2006

RMB’000 RMB’000

Shareofthejointly-controlledentity’sassetsandliabilities:

Currentassets 33,655 14,938

Currentliabilities (29,750 ) (10,997)

Netassets 3,905 3,941

Shareofthejointly-controlledentity’sresults:

Otherincome 50 12

Totalexpenses (86 ) (93)

Tax – –

Lossaftertax (36 ) (81)



19. Long term prepaymentTheGroup’s long termprepayment represented thepartial paymentof a parcel of land inGuangzhou,Guangdong Province, the PRC. Pursuant to a joint venture agreement signedby theGroup and another twojoint venturepartners, a joint venture company (“JVCo”)will be setup toundertakeapropertydevelopmentprojectontheaforementionedparcelofland.TheGroupandtheothertwojointventurepartnerswillholdequityinterests intheJVCointherespectiveproportionof33.33%,33.33%and33.34%.Asat31December2007,theJVCohadnotbeenestablishedandtheamountprepaidbytheGroupwasrecordedaslongtermprepaymentontheconsolidatedbalancesheet.

20. Properties under development

Group 2007 2006 RMB’000 RMB’000

Propertiesunderdevelopmentexpectedtoberecovered:

Withinoneyear 6,484,002 1,527,762 Aftermorethanoneyear 1,261,583 287,347

7,745,585 1,815,109

TheGroup’spropertiesunderdevelopmentwerelocatedinthePRC.

At 31 December 2006, the carrying amount of theGroup’s properties under development was pledged assecurityfortheGroup’sbankloansamountingtoRMB665,136,000,asfurtherdetailedinnote29tothefinancialstatements.

Included in theGroup’s properties under development as at 31December 2007were land costswith anaggregatecarryingamountofapproximatelyRMB5,771,813,000(2006:Nil)inwhichtheGroupisintheprogressofobtaining landuserightcertificatesfromtherelevantgovernmentauthorities.ThedirectorsoftheCompanyconsider that the relevant landuse right certificateswill be obtainedupon the full paymentof thepurchaseconsiderationinaccordancewiththetermsofthelandacquisitionagreements.

Furtherparticularsof theGroup’smajorpropertiesunderdevelopmentare setoutonpage130of theannualreport.

21. Completed properties held for saleTheGroup’scompletedpropertiesheldforsalearelocatedinthePRC.Allcompletedpropertiesheldforsalearestatedatcost.

At31December2007, thecarryingamountof theGroup’scompletedpropertiesheld for salewaspledgedassecurityfortheGroup’sbankloansamountingtoRMB327,674,000(2006:Nil),asfurtherdetailsinnote29tothefinancialstatements.

FurtherparticularsoftheGroup’smajorcompletedpropertiesheldforsalearesetoutonpage130oftheannualreport.



22. Trade receivables

Group

2007 2006

RMB’000 RMB’000

Tradereceivables 34,620 3,042

TheGroup’s trade receivables mainly arise from sale of properties.Consideration in respect of properties sold

arepayablebythepurchasersinaccordancewiththetermsoftherelatedsaleandpurchaseagreements.Trade

receivablesarenon-interest-bearing.Anagedanalysisofthetradereceivablesasattherespectivebalancesheet

datesisasfollows:

Group

2007 2006

RMB’000 RMB’000

Within3months 30,103 1,277

4to6months 4,127 750

7to12months 390 460

Over1year – 555

34,620 3,042

Anagedanalysisofthetradereceivablesthatarenotconsideredtobeimpairedisasfollows:

Group

2007 2006

RMB’000 RMB’000

Neitherpastduenorimpaired 34,230 2,027

1to6monthspastdue 390 1,015

34,620 3,042

Receivablesthatwereneitherpastduenorimpairedrelatetoalargenumberofdiversifiedcustomersforwhom

therewasnorecenthistoryofdefault.

Receivablesthatwerepastduebutnotimpairedrelatetoanumberofindependentcustomersthathaveagood

trackrecordwiththeGroup.Basedonpastexperience,thedirectorsoftheCompanyareoftheopinionthatno

provisionfor impairment isnecessary inrespectofthesebalancesastherehasnotbeenasignificantchange in

creditqualityandthebalancesarestillconsideredfullyrecoverable.



23. Prepayments, deposits and other receivables

Group Company

2007 2006 2007 2006

RMB’000 RMB’000 RMB’000 RMB’000

Prepayments 79,562 48,003 438 7,088

Depositsandotherreceivables 655,851 26,813 6 –

735,413 74,816 444 7,088

Noneoftheaboveassetsiseitherpastdueorimpaired.Thefinancialassetsincludedintheabovebalancesrelate

toreceivablesforwhichtherewasnorecenthistoryofdefault.

24. Amount due from a directorThe balance was related toMr.Kong JinMin and themaximum outstanding balance during the year was

RMB77,428,000(2006:RMB84,628,000).Theamountduefromadirectorasat31December2006arosefrom

non-tradeactivities.Itwasunsecured,interest-freeandwassettledduringtheyear.

25. Taxes recoverable/taxes payable(a) Taxes recoverable

Group

2007 2006

RMB’000 RMB’000

PrepaidCIT 226 4,588

PrepaidLAT 1,574 463

1,800 5,051

(b) Taxes payable

Group

2007 2006

RMB’000 RMB’000

CITpayable 536,948 66,292

LATpayable 612,223 69,811

1,149,171 136,103



26 . Cash and cash equivalents and restricted cash

Group Company

2007 2006 2007 2006

Notes RMB’000 RMB’000 RMB’000 RMB’000

Cashandbankbalances 3,316,753 953,876 8,008 –

Timedeposits 119,239 52,460 119,239 52,460

3,435,992 1,006,336 127,247 52,460

Less:Restrictedcash (a) (147,353 ) (202,432) – –

Cashandcashequivalents 3,288,639 803,904 127,247 52,460

DenominatedinRMB (b) 1,888,351 950,531 – –

Denominatedinothercurrencies 1,547,641 55,805 127,247 52,460

3,435,992 1,006,336 127,247 52,460

Notes:

(a) Restrictedcashincludesthefollowingamounts:

(i) PursuanttorelevantregulationsinthePRC,certainpropertydevelopmentcompaniesoftheGrouparerequiredtoplaceacertainamountofpre-saleproceedsreceivedatdesignatedbankaccountsasguaranteedepositsforconstructionoftherelevantproperties.Asat31December2007and2006,suchguaranteedepositsamountedtoapproximatelyRMB147,353,000andRMB41,647,000,respectively.

(ii) Asat31December2006theGroup’sbankbalancesofRMB8,000,000weredepositedinabankasguaranteedepositfortherelevantbanktoissueperformancebondstoasupplieroftheGroup.

(iii) As at 31 December 2006, the Group’s time deposits of approximately RMB152,785,000 were related tobalancesborrowedbytheGroupforthepurposeofcapitalinjectionintothesubsidiariesoftheGroup.Thesebalanceswererestrictedtousebytherelevantbank.Suchrestrictionwasreleasedduringtheyear.

(b) The RMB is not freely convertible intoother currencies, however, subject to relevant rules and regulationof foreignexchangecontrolpromulgatedbythePRCgovernment,theGroupispermittedtoexchangeRMBforothercurrenciesthroughbanksauthorisedtoconductforeignexchangebusiness.

Cashatbankearnsinterestatfloatingratesbasedondailybankdepositrates.Shorttermtimedepositsaremade

forvaryingperiodsofbetweenoneandsevendaysdependingontheimmediatecashrequirementsoftheGroup,

and earn interest at the respective short term time deposit rates. The carrying amounts of the cash and cash

equivalentsandtherestrictedcashapproximatetotheirfairvalues.



27. Trade payablesAnagedanalysisofthetradepayablesasatthebalancesheetdateisasfollows:

Group 2007 2006 RMB’000 RMB’000

Duewithinoneyearorondemand 3,437,982 98,501

Thetradepayablesarenon-interest-bearingandarenormallyontermsofthreetosixmonths.

28. Other payables and accruals Group Company 2007 2006 2007 2006 RMB’000 RMB’000 RMB’000 RMB’000

Depositsreceivedandreceiptinadvance 784,013 504,045 – –Accrualsandotherpayables 971,893 64,888 944 –

1,755,906 568,933 944 –

Otherpayablesarenon-interest-bearingandhaveanaveragetermofthreemonths.

29. Interest-bearing bank borrowings 2007 2006 Contractual Contractual interest interest rate (%) Maturity# RMB’000 rate(%) Maturity# RMB’000

CurrentBankloans–secured 5.67 – 7.02 2008 86,160 6.73 2007 16,500US$76.9million–securedloan – – – LIBOR+2.5 2007 599,898Bankloans–unsecured – – – 6.44–6.73 2007 105,500Currentportionoflongterm bankloans –secured 5.67 – 6.93 2008 118,680 6.03–6.93 2007 405,210 –HK$851.9millionsecured HIBOR+1.15 2008 70,228 – – – 275,068 1,127,108

Non-currentBankloans–secured 5.67 – 7.72 2009 – 2015 760,931 6.03–6.84 2008–2015 1,190,850 Bankloans–unsecured 6.72 – 8.22 2009 – 2010 957,000 – – –

Bankloans–HK$851.9millionsecured HIBOR+1.15 2009 – 2014 727,473 – – – 2,445,404 1,190,850 2,720,472 2,317,958



29. Interest-bearing bank borrowings (continued)

Group

2007 2006

RMB’000 RMB’000

Analysedinto:

Bankloansrepayable:

Withinoneyearorondemand 275,068 1,127,108

Inthesecondyear 690,555 269,000

Inthethirdtofifthyears,inclusive 1,563,918 725,000

Beyondfiveyears 190,931 196,850

2,720,472 2,317,958

Notes:

(a) CertainoftheGroup’sbankloansaresecuredbytheGroup’sassets,detailsofwhicharedisclosedinnote39.

Certainbankloansasat31December2006weresupportedbyguaranteesprovidedfromthefollowing

relatedparties:

2006

RMB’000

Securedbankloans:

Personalguaranteesfromadirector,Mr.KongJingMin 370,500

PersonalguaranteesfromtheKongFamily 599,898

970,398

TheguaranteesprovidedbytheaboverelatedpartiesinrespectofbankloansgrantedtotheGrouphave

beenfullyreleasedduringtheyear.

(b) Except for theHK$851.9million securedbank loanwhich is denominated inHongKongdollars, all

borrowingsareinRMBasatthebalancesheetdate.At31December2006,thecarryingamountsofallthe

Group’sborrowingsweredenominatedinRMBexceptforasecuredloanbalanceofUS$76.9millionwhich

wasdenominatedinUnitedStatesdollars.SuchUS$76.9millionborrowingwasabridgeloanborrowedby

theGrouptofacilitatetheReorganisation.

In theopinionof thedirectors of theCompany, the carrying amounts of theGroup’s bankborrowings

approximatetotheirfairvalues.



30. Amounts due to related companies 2007 2006


ChinaConceptInternationalHoldingsLimited

(“ChinaConcept”) (a) – 51,714

GuangzhouKailianEnterpriseDevelopmentLimited

(“Kailian”)* (b) – 46,964

GuangzhouKaiyuTradingLimited(“Kaiyu”)* (c) – 27,000

GuangzhouKaihuiTradingDevelopmentLimited* (d) – 26,100

GuangzhouFuhuiPropertyDevelopmentLimited* (d) – 17,000

– 168,778

Notes:

(a) ChinaConceptisownedasto65%byMr.KongJianMinandasto35%byMr.KongJianTao,botharedirectorsoftheCompany.

(b) Kailianisownedasto90%byMr.KongJianNan,directoroftheCompanyandasto10%byKaiyu.

(c) KaiyuisbeneficiallyownedbyMr.KongJianMin.

(d) ThesecompaniesweredisposedofbytheGrouptoMr.KongJianMinduringtheyearended31December2006.

* TheEnglishnamesofthesecompaniesreferredtointhesefinancialstatementsrepresentmanagement’sbestefforttotranslatetheChinesenamesofthosecompanies,asnoEnglishnameshavebeenregistered.

ExceptfortheaggregateamountsofRMB98,100,000duetorelatedcompaniesasat31December2006which

boreinterestat6.14%to7.34%perannumfortheyear(2006:6.14%to7.34%perannum),alloftheamounts

duetorelatedcompaniesarosefromnon-tradeactivitiesandwereunsecured,interest-freeandsettledduringthe

year.



31. Deferred taxThemovementsindeferredtaxliabilitiesandassetsduringtheyearareasfollows:

Deferred tax liabilities

Group

2007

Fair value

adjustments

arising from Revaluation

acquisition of of investment

a subsidiary properties Total

RMB’000 RMB’000 RMB’000

At1January2007 – 116,127 116,127

Deferredtaxcharged

totheincomestatementduring

theyear(note10) – 534,829 534,829

Acquisitionofasubsidiary(note36) 38,214 – 38,214

Grossdeferredtaxliabilitiesat31December2007 38,214 650,956 689,170

Deferred tax assets

Group

2007

Losses

available

for offset

Provision against future

of LAT taxable profits Total

RMB’000 RMB’000 RMB’000

At1January2007 24,858 7,167 32,025

Deferredtaxcredited/(charged)tothe

incomestatementduringtheyear(note10) 137,027 (7,167 ) 129,860

Grossdeferredtaxassetsat31December2007 161,885 – 161,885

Netdeferredtaxrecognisedat31December2007 (527,285 )



31. Deferred tax (continued)

Deferred tax liabilities

Group

2006

Revaluation

ofinvestment

properties

RMB’000

At1January2006 72,018

Deferredtaxchargedtotheincomestatementduringtheyear(note10) 44,109

Grossdeferredtaxliabilitiesrecognisedinthe

consolidatedbalancesheetat31December2006 116,127

Deferred tax assets

Group

2006

Losses

available

foroffset

Provision againstfuture

ofLAT taxableprofits Total

RMB’000 RMB’000 RMB’000

At1January2006 13,963 4,210 18,173

Deferredtaxcreditedtotheincomestatement

duringtheyear(note10) 10,895 2,957 13,852

Grossdeferredtaxassetsrecognisedinthe

consolidatedbalancesheetat31December2006 24,858 7,167 32,025

Netdeferredtaxrecognisedat31December2006 (84,102)

Forthepurposeofthebalancesheetpresentation,certaindeferredtaxassetsandliabilitieshavebeenoffset.The

followingisananalysisofthedeferredtaxbalancesoftheGroupforfinancialreportingpurposes:

2007 2006

RMB’000 RMB’000

Netdeferredtaxassetsrecognisedintheconsolidatedbalancesheet 111,371 31,933

Netdeferredtaxliabilitiesrecognisedintheconsolidated

balancesheet (638,656 ) (116,035)

(527,285 ) (84,102)



31. Deferred tax (continued)

TheGrouphasunutilisedtax lossesofRMB23,038,000(2006:RMB25,331,000)thatcanbecarriedforwardfor

fiveyearsinwhichlossesaroseforoffsettingagainstfuturetaxableprofitsoftheentitiesinwhichthelossesarose.

Deferred taxassetshavenotbeen recognised in respectof these lossesas theyhavearisen in subsidiaries that

havebeenloss-makingforsometimeanditisnotconsideredprobablethattaxableprofitswillbeavailableagainst

whichthetaxlossescanbeutilised.

Asat31December2007, therewasno significantunrecogniseddeferred tax liability (2006:Nil) for taxes that

wouldbepayableontheunremittedearningsofcertainoftheGroup’ssubsidiariesorjointly-controlledentityas

theGrouphasnoliabilitiestoadditionaltaxshouldsuchamountsberemitted.

TherearenoincometaxconsequencesattachingtothepaymentofdividendsbytheCompanytoitsshareholders.

32. Share capitalShares

2007 2006

RMB’000 RMB’000

Authorised:

8,000,000,000(2006:3,800,000)ordinarysharesofHK$0.10each 786,113 384

Issuedandfullypaid:

2,593,750,000(2006:2,000)ordinarysharesofHK$0.10each 254,093 –

Duringtheyear,themovementsinsharecapitalwereasfollows:

(a) PursuanttoawrittenresolutionofshareholdersoftheCompanypassedon11June2007,theauthorised

share capital of the Company was increased from HK$380,000 toHK$800,000,000 by the creation of

7,996,200,000additionalsharesofHK$0.10each,rankingparipassuinallrespectswiththeexistingshare

capitaloftheCompanyandthedirectorswereauthorisedtoissueandallot1,874,998,000sharesatparas

fullypaidtotheshareholderswhosenamesappearedontheregisterofthemembersoftheCompanyon

11June2007bywayofcapitalisationofasumofHK$187,500,000whichwasthenstandingtothecredit

ofthesharepremiumaccountoftheCompany.

(b) On3 July 2007, theCompany’s shareswere listedon the Stock Exchange and theCompany issued

625,000,000 newordinary shares ofHK$0.10 each atHK$7.28 per share with gross proceeds of

approximatelyHK$4,550,000,000.

(c) On9 July 2007, pursuant to the exercise of theOver-allotment Option under theGlobal Offering,

93,750,000additionalnewordinarysharesofHK$0.10eachwerealsoissuedatHK$7.28persharewith

grossproceedsofapproximatelyHK$682,500,000.



32. Share capital (continued)

AsummaryofthetransactionsduringtheyearwithreferencetotheabovemovementsintheCompany’sissued

sharecapitalisasfollows:

Nominal Equivalent

value of nominal value

Number of ordinary of ordinary Share

ordinary shares shares shares premium Total

HK$’000 RMB’000 RMB’000 RMB’000

At28July2006(dateofincorporation) 1 – – – –

IssuedofsharesofHK$0.10each 1,999 – – 666,873 666,873

At31December2006and1January2007 2,000 – – 666,873 666,873

Capitalisationissue–note(a) 1,874,998,000 187,500 184,241 (184,241) –

Issueofsharesinconnectionwiththelisting

–notes(b)and(c) 718,750,000 71,875 69,852 5,015,374 5,085,226

2,593,750,000 259,375 254,093 5,498,006 5,752,099

Shareissueexpenses – – – (176,075) (176,075)

At31December2007 2,593,750,000 259,375 254,093 5,321,931 5,576,024

33. Share option schemePursuant toawrittenresolutionof theshareholdersof theCompanyon11June2007,ashareoptionscheme

(the“Scheme”)was conditionally approved.On3 July 2007, the aforesaid approval of the Schemebecame

unconditionallyandeffectiveastheCompany’sshareswerelistedontheStockExchange.TheSchemeisforthe

purposeofprovidingincentivesandrewardstoeligibleparticipantswhocontributetothesuccessoftheGroup’s

operations.EligibleparticipantsoftheSchemeincludetheGroup’sdirectors,includingindependentnon-executive

directors, any full-timeor part-time employeesof theGroup, suppliers, customers, advisers, consultants and

agentstotheGroup.Uponbecomingeffective,theSchemewillremaininforcefor10yearsfromthatdate.

Themaximumnumberofunexercisedshareoptionscurrentlypermitted tobegrantedunder theSchememust

not inaggregateexceed10%of the sharesof theCompany in issue immediately followingcompletionof the

GlobalOfferingandtheCapitialisationIssue(buttakingnoaccountofanyshareswhichwereallottedorissued

pursuanttotheexerciseoftheOver-allotmentOption).Notwithstandingtheforegoing,theshareswhichmaybe

issueduponexerciseofalloutstandingoptionsgrantedandyet tobeexercisedunder theSchemeatany time

shallnotexceed30%oftheshares in issuefromtimetotime.Themaximumnumberofshares issuableunder

shareoptions to each eligible participant in the Schemewithin any12-monthperiod is limited to 1%of the

sharesoftheCompanyinissueatanytime.Anyfurthergrantofshareoptionsinexcessofthislimitissubjectto

shareholders’approvalinageneralmeeting.



33. Share option scheme (continued)

Shareoptionsgrantedtoadirector,chiefexecutiveorsubstantialshareholderoftheCompany,ortoanyoftheir

associates,aresubjecttoapprovalinadvancebytheindependentnon-executivedirectors.Inaddition,anyshare

optionsgrantedtoasubstantialshareholderoranindependentnon-executivedirectoroftheCompany,ortoany

oftheirassociates,inexcessof0.1%ofthesharesoftheCompanyinissueatanytimeandwithanaggregate

value(basedonthepriceoftheCompany’ssharesatthedateofgrant)inexcessofHK$5millionorsuchother

sumasmaybefromtimetotimeprovidedundertheListingRules,withinany12-monthperiod,aresubjecttothe

issueofacircularbytheCompanyandtheshareholders’approvalinadvanceinageneralmeeting.

AnoptionmaybeexercisedinaccordancewiththetermsoftheSchemeatanytimeafterthedateuponwhich

theoptionisdeemedtobegrantedandacceptedandpriortotheexpiryof10yearsfromthatdate.Theperiod

duringwhichanoptionmaybeexercisedwillbedeterminedbytheBoardinitsabsolutediscretion,savethatno

optionmaybeexercisedmorethan10yearsafterithasbeengranted.

Theexercisepriceof shareoptions isdeterminableby thedirectors,butmaynotbe less than thehigherof (i)

theStockExchangeclosingpriceoftheCompany’ssharesonthedateofofferoftheshareoptions;and(ii)the

averageStockExchangeclosingpriceoftheCompany’ssharesforthefivetradingdaysimmediatelyprecedingthe

dateofofferand(iii)thenominalvalueofashare.

Shareoptionsdonotconferrightsontheholderstodividendsortovoteatshareholders’meetings.

Duringtheyear,noshareoptionsundertheSchemeweregranted,exercisedorcancelledbytheCompanyand

therewasnooutstandingshareoptionundertheSchemeasatthedateofapprovalofthesefinancialstatements.

34. Reserves(a) Group

The amounts of theGroup’s reserves and themovements therein for the current andprior years are

presentedintheconsolidatedstatementofchangesinequity.

Pursuant to the relevant laws and regulations in the PRC, theGroup’s subsidiarieswhich are registered

in the PRC shall appropriate certain percentage of profit for the year (after offsetting anyprior years’

losses) calculated under the accounting principles generally applicable to the PRC enterprises to reserve

fundswhicharerestrictedastouse.Duringtheyearended31December2007,theGroupappropriated

approximatelyRMB94,705,000tosuchreservefunds inaccordancewithrelevant lawandregulations in

thePRC(2006:Nil).

For the year ended31 December 2006, distribution arising from theReorganisation represented the

consideration paid by the Group to the Kong Family in exchange for the equity interests in the Core

BusinessEntitiespursuanttotheReorganisation.



34. Reserves (continued)

(b) Company

Share Exchange

premium Contributed fluctuation Retained

account surplus reserve profits Total

Notes RMB’000 RMB’000 RMB’000 RMB’000 RMB’000

At28July2006,

(dateofincorporation) – – – – –

Issueofshares 666,873 – – – 666,873

Profitfortheperiod – – – 2,042 2,042

ArisingfromtheReorganisation – 308,006 – – 308,006

Exchangerealignment – – (12,791) – (12,791)

At31December2006 666,873 308,006 (12,791) 2,042 964,130

Capitalisationofshare

premiumaccount (184,241) – – – (184,241)

Issueofshares 32 5,015,374 – – – 5,015,374

Shareissueexpenses 32 (176,075) – – – (176,075)

Profitfortheyear – – – 480,358 480,358

Exchangerealignment – – (221,513) – (221,513)

Proposedfinal2007dividend 12 – – – (389,063) (389,063)

At31December2007 5,321,931 308,006 (234,304) 93,337 5,488,970

TheCompany’scontributedsurplusrepresentstheexcessofthefairvalueofthesharesofthesubsidiaries

acquiredpursuant to theReorganisation, over thenominal valueof theCompany’s shares in exchange

therefor.

35. Interests in jointly-controlled operationsTheGrouphas entered into three (2006: two) joint venture arrangements in the formof jointly-controlled

operationswithcertainparties, to jointlyundertakethree (2006: two)propertydevelopmentprojects located in

Guangzhou, thePRC.Asat31December2007, theaggregateamountsofassets, liabilities, incomeand losses

recognisedinrespectofthesejointly-controlledoperationswereasfollows:

2007 2006

RMB’000 RMB’000

Assets 748,483 220,726

Liabilities (8,562 ) (8,962)

Income – –

Losses – –



36. Acquisition of subsidiariesOn5 February 2007, theGroup acquired a 94.5% interest inGuangzhou Liangyu. Guangzhou Liangyu isengagedinpropertydevelopment.Thepurchaseconsiderationfortheacquisitionwasintheformofcash,withRMB28,350,000paidattheacquisitiondate.

On26 October 2007, theGroup acquired a 100% interest inHainanNewWorld.HainanNewWorld isengagedinpropertydevelopment.Thepurchaseconsiderationfortheacquisitionwasintheformofcash,withRMB115,288,000 paid at the acquisition date and the remaining of RMB15,542,000 will be paid upon thecompletionoflanddemolition.

ThefairvaluesoftheidentifiableassetsandliabilitiesofGuangzhouLiangyuandHainanNewWorldasatthedateofacquisitionandthecorrespondingcarryingamountsimmediatelybeforetheacquisitionwereasfollows:

Fair value Previous recognised carrying on acquisition amount RMB’000 RMB’000

Propertiesunderdevelopment 169,044 16,190Prepayments,depositsandotherreceivables 30,000 30,000Deferredtaxliabilities (38,214 ) –Minorityinterests (1,650 ) –

159,180 46,190

RMB’000

Satisfiedbycash 143,638Outstandingamountpayable 15,542

159,180

Ananalysis of thenet outflowof cash and cash equivalents in respect of the acquisition of subsidiaries is asfollows:

RMB’000

Cashconsideration 143,638Cashandbankbalancesacquired –

Netoutflowofcashandcashequivalents inrespectoftheacquisitionofsubsidiaries 143,638

Since theacquisitions,HainanNewWorldandGuangzhouLiangyureducedtheconsolidatedprofitattributableto equity holders of theparent for the year ended31December2007by approximately nil andRMB37,000,respectively. Therewouldbenomaterial changes in theGroup’s consolidated revenue and consolidatedprofitattributabletoequityholdersoftheparentfortheyearended31December2007shouldtheaboveacquisitionshavebeentakenplaceon1January2007.



37. Disposal of subsidiaries 2006

RMB’000

Netassetsdisposedof:

Cashandcashequivalents 2,207

Prepayments,depositsandotherreceivables 13,607

Duefromrelatedcompanies 98,481

Duetoadirector (10,689)

Interest-bearingbankborrowings (43,100)

60,506

Gainondisposalofsubsidiaries 985

61,491

Satisfiedby:

Cash –

Duefromadirector 61,491

Ananalysisofthenetinflowofcashandcashequivalentsinrespectofthedisposalofsubsidiariesisasfollows:

2006

RMB’000

Cashconsideration –

Cashandcashequivalentsdisposedof (2,207)

Netoutflowofcashandcashequivalents

inrespectofthedisposalofsubsidiaries (2,207)



38. Contingent liabilitiesAtthebalancesheetdate,contingentliabilitiesoftheGroupnotprovidedforinthefinancialstatementswereas

follows:

2007 2006


Guaranteesinrespectofmortgagefacilitiesfor

certainpurchasersoftheGroup’sproperties (a) 1,558,092 340,787

Guaranteesgiventobanksandfinancialinstitutions

inconnectionwithloansgrantedtorelatedcompanies (b) – 64,100

1,558,092 404,887

Notes:

(a) Asat31December2007and2006,theGroupprovidedguaranteesinrespectofmortgagefacilitiesgrantedbycertainbanksrelatingtothemortgageloansarrangedforcertainpurchasersoftheGroup’sproperties.Pursuanttothetermsoftheguarantees,upondefaultinmortgagepaymentsbythesepurchasers,theGroupisresponsibleforrepayingtheoutstandingmortgageprincipalstogetherwiththeaccruedinterestandpenaltyowedbythepurchaserstothebanksandtheGroupisentitledtotakeoverthelegaltitlesandpossessionoftherelatedproperties.TheGroup’sguaranteeperiodstarts fromthedatesofgrantof the relevantmortgage loansandendsupon issuanceofpropertyownershipcertificateswhichwillgenerallybeavailablewithinonetotwoyearsafterthepurchaserstakepossessionoftherelevantproperties.

Thefairvalueoftheguaranteesisnotsignificantandthedirectorsconsiderthatincaseofdefaultinpayments,thenetrealisablevalueoftherelatedpropertiescancovertherepaymentoftheoutstandingmortgageprincipalstogetherwiththeaccruedinterestandpenaltyandthereforenoprovisionhasbeenmadeasat31December2007and2006fortheguarantees.

(b) TheloansguaranteedbytheGrouptorelatedcompanieswereutilisedtotheextentofapproximatelyRMB64,100,000asat31December2006.

Thefairvalueoftheguaranteesisnotsignificantandthedirectorsconsidertheriskofdefaultinpaymentisremote,andthereforenoprovisionfortheguaranteeshasbeenmadeinthesefinancialstatements.AllthebankloansguaranteedbytheGrouphadbeenrepaidduringtheyearandtheguaranteeshadbeenreleaseduponrepayment.

Atthebalancesheetdate,theCompanydidnothaveanysignificantcontingentliabilities.



39. Pledge of assets(a) Ateachofthebalancesheetdates,thefollowingassetsoftheGroupwerepledgedtocertainbanksfor

securingtheloansgrantedtotheGroup:

Group

2007 2006

RMB’000 RMB’000

Buildings 52,001 –

Assetsunderconstruction – 16,819

Landuserights 47,193 45,485

Investmentproperties 3,153,739 341,396

Propertiesunderdevelopment – 665,136

Completedpropertiesheldforsale 327,674 –

3,580,607 1,068,836

(b) TheequityinterestsofcertainCoreBusinessEntities,intermediateholdingcompaniesincorporatedinthe

BritishVirgin Islands,HappyClear and theCompanywerepledged toabank for the loangrantedand

werereleasedduringtheyear.

(c) Atthebalancesheetdate,thefollowingassetsoftheGroupwerepledgedtocertainbanksandfinancial

institutionsforsecuringtheloansgrantedtocertainrelatedcompanies:

Group

2007 2006

RMB’000 RMB’000

Investmentproperties – 89,960

Propertiesunderdevelopment – 6,875

– 96,835

AllsuchloansguaranteedbytheGrouphadbeenfullyrepaidduringtheyear.

(d) At 31December2006, theGroup’s certain assets under construction and landuse rightswith carrying

amountsofRMB459,917,000andRMB169,834,000 respectivelywerepledged toabank for securinga

termloanfacilityofHK$1,000,000,000providedtotheGroup.



40. Operating lease arrangements(a) As lessor

TheGroupleasesitsinvestmentpropertiesunderoperatingleasearrangements,withleasesnegotiatedfor

termsrangingfrom1to10years.Thetermsoftheleasesgenerallyalsorequirethetenantstopaysecurity

depositsandprovideforperiodicrentadjustmentsaccordingtothethenprevailingmarketconditions.

At thebalancesheetdate, theGrouphadtotal futureminimumleasereceivablesundernon-cancellable

operatingleaseswithitstenantsfallingdueasfollows:

Group

2007 2006

RMB’000 RMB’000

Withinoneyear 36,960 477

Inthesecondtofifthyears,inclusive 102,649 –

Afterfiveyears 31,334 –

170,943 477

(b) As lessee

TheGroupand theCompany leasescertainof itsofficepropertiesunderoperating leasearrangements.

Leasesforpropertiesarenegotiatedfortermsrangingfrom1to3years.

At31December2007,theGroupandtheCompanyhadtotalfutureminimumleasepaymentsundernon-

cancellableoperatingleasesfallingdueasfollows:

Group Company

2007 2006 2007 2006

RMB’000 RMB’000 RMB’000 RMB’000

Withinoneyear 1,010 155 639 –

1�0 KWG Property Holding Limited Annual Report �007


41. CommitmentsInadditiontotheoperatingleasecommitmentsdetailedinnote40(b)above,theGrouphadthefollowingcapital

commitmentsatthebalancesheetdate:

Group

2007 2006

RMB’000 RMB’000

Contracted,butnotprovidedfor:

Property,plantandequipment–Assetsunderconstruction 237,701 375,525

PropertiesbeingdevelopedbytheGroupforsale 865,207 837,652

Investmentinajointly-controlledentity 1,383,430 –

2,486,338 1,213,177

TheCompanydidnothaveanycommitmentatthebalancesheetdate.

42. Related party transactions(a) In addition to the transactions detailed elsewhere in these financial statements, theGrouphad the

followingmaterialtransactionswithrelatedpartiesduringtheyear:

Group

2007 2006

Note RMB’000 RMB’000

Interestchargedbyrelatedcompanies (i) 245 5,879

Note:

(i) Theinterestischarged,withreferencetothemarketrates,atinterestratesof6.14%to7.34%perannum,fortheyearsended31December2007and2006.

(b) Outstandingbalanceswithrelatedparties:

(i) Detailsof theGroup’samountduetorelatedcompaniesare included innote30tothefinancial

statements.

(ii) Detailsof theGroup’s amountdue from theCompany’sdirector are included innote24 to the


(iii) Details of the Group’s balanceswith its jointly-controlled entity are included in note 18 to the


1�1KWG Property Holding Limited Annual Report �007


42. Related party transactions (continued)

(c) CompensationofkeymanagementpersonneloftheGroup:

2007 2006

RMB’000 RMB’000

Shorttermemployeebenefits 6,997 4,000

Post-employmentbenefits 378 22

Totalcompensationpaidtokeymanagementpersonnel 7,375 4,022

Furtherdetailsofdirectors’emolumentsareincludedinnote8tothefinancialstatements.

43. Financial instruments by categoryThe carrying amounts of each of the categories of financial instruments as at thebalance sheet date are as

follows:

Financial assets – Loan and receivables

Group

2007 2006

RMB’000 RMB’000

Tradereceivables 34,620 3,042

Financialassetsincludedinprepayments,depositsandotherreceivables

(note23) 655,851 26,813

Duefromajointly-controlledentity 29,001 –

Duefromadirector – 77,428

Taxesrecoverable 1,800 5,051

Restrictedcash 147,353 202,432

Cashandcashequivalents 3,288,639 803,904

4,157,264 1,118,670

1�� KWG Property Holding Limited Annual Report �007


43. Financial instruments by category (continued)

Financial liabilities – Financial liabilities at amortised cost

Group

2007 2006

RMB’000 RMB’000

Tradepayables 3,437,982 98,501

Financialliabilitiesincludedinotherpayablesandaccruals(note28) 971,893 64,888

Interest-bearingbankborrowings 2,720,472 2,317,958

Duetoajointly-controlledentity – 12,999

Duetorelatedcompanies – 168,778

7,130,347 2,663,124

Financial assets – Loan and receivables

Company

2007 2006

RMB’000 RMB’000

Duefromsubsidiaries(note17) 5,704,574 604,276

Financialassetsincludedinprepayments,

depositsandotherreceivables(note23) 6 –

Cashandcashequivalents 127,247 52,460

5,831,827 656,736

Financial liabilities – Financial liabilities at amortised cost

Company

2007 2006

RMB’000 RMB’000

Financialliabilitiesincludedinotherpayablesandaccruals(note28) 944 –

1��KWG Property Holding Limited Annual Report �007


44. Financial risk management objectives and policiesThe financial assets of theGroupmainly include cash and cash equivalents, restricted cash, trade receivables,

depositsandotherreceivables,amountsduefromadirectorandajointlycontrolledentityandtaxesrecoverable.

The financial liabilities of theGroupmainly include tradepayables, other payables and accruals, bank loans,

amountsduetorelatedcompaniesandajointlycontrolledentity.

The carrying amounts of theGroup’s financial instruments approximated to their fair values as at eachof the

balance sheet dates. Fair value estimates aremadeon a specific point in time andbasedon relevantmarket

informationaboutthefinancialinstruments.Theseestimatesaresubjectiveinnatureandinvolveuncertaintiesand

mattersof significant judgement, and therefore cannotbedeterminedwithprecision.Changes in assumptions

couldsignificantlyaffecttheestimates.

ThemainrisksarisingfromtheGroup’sfinancialinstrumentsarebusinessrisk,interestraterisk,foreigncurrency

risk,creditriskandliquidityrisk.TheGroupdoesnothaveanywrittenriskmanagementpoliciesandguidelines.

Generally,theGroupintroducesconservativestrategiesonitsriskmanagement.AstheGroup’sexposuretothese

risksiskepttoaminimum,theGrouphasnotusedanyderivativesandotherinstrumentsforhedgingpurposes.

TheGroupdoesnot holdor issuederivative financial instruments for tradingpurposes. Theboardof directors

reviewsandagreespoliciesformanagingeachoftheserisksandtheyaresummarisedbelow:

Business risk

TheGroup conducts its operations in the PRC, and accordingly, it is subject to special considerations and

significantrisks.Theseincluderisksassociatedwith,amongothers,thepolitical,economicandlegalenvironment,

the influence of national authorities over pricing and the financing regulations in the property development

industry.

Interest rate risk

TheGrouphasno significant interest-bearingassets. TheGroup’sexposure tochanges inmarket interest rates

relatesprimarilytotheGroup’sbankloanswithfloatinginterestrates.TheGrouphasnotusedanyinterestrate

swapstohedgeitscashflowinterestraterisk.



44. Financial risk management objectives and policies (continued)

Thefollowingtabledemonstrates thesensitivity toareasonablypossiblechange in interest rates,withallother

variablesheldconstant,oftheGroup’sprofitbeforetax(throughtheimpactonfloatingrateborrowings)andthe

Group’sequity.

Group

Increase/

Increase/ (decrease) Increase/

(decrease) in in profit (decrease)

basis points before tax in equity

RMB’000 RMB’000

2007

RMB 200 (37,737 ) (28,303 )

HongKongdollar 200 (15,954 ) (11,966 )

RMB (200 ) 37,737 28,303

HongKongdollar (200 ) 15,954 11,966

Group

Increase/

Increase/ (decrease) Increase/

(decrease)in inprofit (decrease)

basispoints beforetax inequity

RMB’000 RMB’000

2006

RMB 200 (31,977) (21,438)

UnitedStatesdollar 200 (1,000) (1,000)

RMB (200) 31,997 21,438

UnitedStatesdollar (200) 1,000 1,000




Foreign currency risk

TheGroup’sbusinesses are located in thePRCandall transactionsaremainly conducted inRMB.Mostof the

Group’sassetsand liabilitiesaredenominated inRMBexcept for theHongKongdollarbank loansandcertain

shorttermbankdepositsinHongKongdollarsandUnitedStatesdollars.TheGrouphasnothedgeditsforeign

exchangeraterisk.

Thefollowingtabledemonstratesthesensitivityatthebalancesheetdatetoareasonablypossiblechangeinthe

UnitedStatesdollarandHongKongdollarexchangerate,withallothervariablesheldconstant,oftheGroup’s

profitbeforetax(duetochangesinthefairvalueofmonetaryassetsandliabilities).

Group

Increase/ Increase/ Increase/

(decrease) in (decrease) in (decrease)

HK$ US$ in profit

rate rate before tax

% % RMB’000

2007

IfRMBweakensagainstHongKongdollar (5 ) n/a (20,758 )

IfRMBstrengthensagainstHongKongdollar 5 n/a 20,758

IfRMBweakensagainstUnitedStatesdollar n/a (5 ) 58,264

IfRMBstrengthensagainstUnitedStatesdollar n/a 5 (58,264 )

2006

IfRMBweakensagainstUnitedStatesdollar n/a (5) (27,372)

IfRMBstrengthensagainstUnitedStatesdollar n/a 5 27,372

Credit risk

TheGrouphasnoconcentrationoncreditrisk.TheGroup’scashandcashequivalentsaremainlydepositswith

state-ownedbanksinthePRCandhigh-creditratingbanksinHongKong.

The carrying amounts of trade and other receivables, cash and cash equivalents included in the consolidated

balancesheetrepresenttheGroup’smaximumexposuretocreditriskinrelationtoitsfinancialassets.TheGroup

hasnootherfinancialassetswhichcarrysignificantexposuretocreditrisk.

TheGrouphasarrangedbankfinancingforcertainpurchasersofpropertyunitsandprovidedguaranteestosecure

obligationofsuchpurchasersforrepayments.Detaileddisclosureoftheseguaranteesismadeinnote38.




Liquidity risk

Management of the Group aims tomaintain sufficient cash and cash equivalents and have available funding

throughanadequateamountofcommittedcreditfacilitiestomeettheGroup’sconstructioncommitments.

Thematurity profile of the Group’s financial liabilities as at thebalance sheet date, basedon the contracted

undiscountedpayments,isasfollows:

Group

2007

Less than 3 to less than 1 to 5 Over

On demand 3 months 12 months years 5 years Total

RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000

Interest-bearingbankborrowings – – 275,068 2,254,473 190,931 2,720,472

Tradepayables 3,437,982 – – – – 3,437,982

Otherpayablesandaccruals 971,893 – – – – 971,893

4,409,875 – 275,068 2,254,473 190,931 7,130,347

2006

Lessthan 3tolessthan 1to5 Over

Ondemand 3months 12months years 5years Total


Interest-bearingbankborrowings – – 1,127,108 994,000 196,850 2,317,958

Tradepayables 98,501 – – – – 98,501

Otherpayablesandaccruals 64,888 – – – – 64,888

163,389 – 1,127,108 994,000 196,850 2,481,347

Company

2007

Less than 3 to less than 1 to 5 Over

On demand 3 months 12 months years 5 years Total


Otherpayablesandaccruals 944 – – – – 944

944 – – – – 944

1�7KWG Property Holding Limited Annual Report �007



Liquidity risk (continued)

Company

2006

Lessthan 3tolessthan 1to5 Over

Ondemand 3months 12months years 5years Total


Otherpayablesandaccruals – – – – – –

Capital management

Theprimary objective of theGroup’s capitalmanagement is to safeguard theGroup’s ability to continue as a

goingconcernand tomaintainhealthycapital ratios inorder to support itsbusinessandmaximise shareholder

value.

TheGroupmanagesitscapitalstructureandmakesadjustmentstoit,inlightofchangesineconomicconditions.

Tomaintainoradjustthecapitalstructure, theGroupmayadjustthedividendpaymenttoshareholders, return

capitaltoshareholdersorissuenewshares.Nochangesweremadeintheobjectives,policiesorprocessesduring

theyearsended31December2007and2006.

The Group monitors capital using a gearing ratio, which is the net borrowings (total borrowings net of cash

andcashequivalentandrestrictedcash)dividedbytotalequityattributabletoequityholdersoftheparent.The

Group’spolicyistomaintainastablegearingratio.Capitalincludessharecapitalandreservesattributabletothe

Company’sequityholders.Thegearingratiosasatthebalancesheetdateswereasfollows:

Group

2007 2006

RMB’000 RMB’000

Netborrowings 715,520 1,311,622

Totalequityattributabletoequityholdersoftheparent 8,533,683 987,027

Gearingratio -8.4% # 132.9%

# TheGroupwasinanetcashpositionasat31December2007.

45. Approval of the financial statementsThefinancialstatementswereapprovedandauthorisedforissuebytheboardofdirectorson26March2008.


FinancialSummary

CONSOLIDATED RESULTS

Year ended 31 December 2004 2005 2006 2007 RMB’000 RMB’000 RMB’000 RMB’000

Revenue 544,962 437,748 654,632 3,868,136

Profitbeforetax 190,920 231,521 279,136 4,320,598 Tax (62,517) (98,526) (121,980) (1,637,788 )

Profitfortheyear 128,403 132,995 157,156 2,682,810

Attributableto: Equityholdersoftheparent 128,403 132,995 157,156 2,683,055 Minorityinterests – – – (245 )

128,403 132,995 157,156 2,682,810

EARNINGSPERSHAREATTRIBUTABLETO ORDINARYEQUITYHOLDERSOFTHEPARENTBasic –Forprofitfortheyear N/A N/A RMB9cents RMB120 cents

CONSOLIDATED ASSETS, LIABILITIES AND EQUITY

As of 31 December 2004 2005 2006 2007 RMB’000 RMB’000 RMB’000 RMB’000

ASSETS Non-currentassets 613,495 949,589 1,415,604 5,802,493 Currentassets 1,297,981 1,895,037 2,990,730 13,172,040

Totalassets 1,911,476 2,844,626 4,406,334 18,974,533

LIABILITIES Currentliabilities 1,023,455 1,306,481 2,112,422 6,618,127 Non-currentliabilities 511,741 928,870 1,306,885 3,084,060

Totalliabilities 1,535,196 2,235,351 3,419,307 9,702,187

EQUITY Equityattributabletoequityholdersoftheparent 376,280 609,275 987,027 8,533,683 Minorityinterests – – – 738,663

Totalequity 376,280 609,275 987,027 9,272,346


FinancialSummary

TheconsolidatedresultsoftheGroupfortheyearended31December2007andtheconsolidatedassets,liabilitiesand

equityoftheGroupasat31December2007arethosesetoutintheauditedfinancialstatements.

ThesummaryoftheconsolidatedresultsoftheGroupforeachofthethreeyearsended31December2004,2005and

2006andof theassets, liabilitiesandequityasat31December2004,2005and2006havebeenextracted from the

Prospectus issuedon18June2007inconnectionwiththe listingoftheCompany’sshareson3July2007(note32to

the financial statements). Such summarywaspreparedas if the current structureof theGrouphadbeen inexistence

throughoutthesefinancialyearsandispresentedonthebasisassetoutinnote2.1tothefinancialstatements.

NofinancialinformationoftheGroupfortheyearended31December2003hasbeenpublished.

Thesummaryabovedoesnotformpartoftheauditedfinancialstatements.

TheGroup’s landandbuildings, includedaboveatcost,werevaluedatRMB162,748,000asat31March2007 inthe

Prospectus.HadtheGroup’sbuildingsbeenincludedinthesefinancialstatementsatsuchvaluationamountthroughout

theyearended31December2007,anadditionaldepreciationchargeofRMB2,060,000wouldhavebeenchargedtothe

consolidatedincomestatementfortheyearended31December2007.

1�0 KWG Property Holding Limited Annual Report �007

MajorPropertiesheldbytheGroup

The ExpectedProperty Group’s Site Total Stage of date of interest Location area GFA Use development completion (%) (’000 (’000 sq.m.) sq.m.)

Major completed properties held for sale

Cosmos 100 TianheDistrict, 23 197 Luxury Completed N/A Guangzhou apartments

SkyVille 100 HuaduDistrict, 485 108 Townhousesand Completed N/A Guangzhou apartments

LinghuiChuangzhan 100 TianheDistrict, 30 46 Office Completed N/A CommercialCentre Guangzhou building

JinghuGarden 100 HuaduDistrict, 52 125 Apartments Completed N/A Guangzhou

Major properties under development

朗悅灣 100 XiangchengDistrict, 196 213 Townhousesand Under-development 2008 Suzhou apartments

從化上城灣畔 100 ConghuaDistrict, 228 280 Townhousesand Under-development 2008 Guangzhou apartments

SuzhoulandlotsB&C 100 XiangchengDistrict, 348 788 Apartments,hotel Under-development 2009 Suzhou andoffice

ChengdulandlotsNo.3,9&10 65 SouthNewDistrict, 201 666 Apartments,serviced Under-development 2009 Chengdu apartments, officebuilding andshoppingmall

ChengdulandlotsNo.6&7 100 WesternHigh-Tech 118 529 Apartments Under-development 2009 Zone,Chengdu

Property The Group’s interest Use Tenure (%)

Major investment properties

InternationalFinancePlace, 100 Officeandretailshops MediumtermleasePlotJ-6,PearlRiverNewTown,TianheDistrict,GuangzhouCity,GuangdongProvince,thePRC

KWG Property Holding Limited 合景泰富地產控股有限公司

www.kwgproperty.com

Contents...Contents 02 Corporate Information 03 Corporate Profile 04 Management Structure 05...

Documents

Transcript of Contents...Contents 02 Corporate Information 03 Corporate Profile 04 Management Structure 05...