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1 (incorporated in the Cayman Islands with limited liability) () Stock Code : HK Fuzhou Yuzho u Orient al Venice Annual Report 2012 Creating Value

2 Contents

3 Yuzhou Properties Company Limited Annual Report Corporate Information EXECUTIVE DIRECTORS INDEPENDENT NON-EXECUTIVE DIRECTORS AUDIT COMMITTEE REMUNERATION COMMITTEE NOMINATION COMMITTEE QUALIFIED ACCOUNTANT AND COMPANY SECRETARY AUTHORIZED REPRESENTATIVES REGISTERED OFFICE

4 Corporate Information 3 PRINCIPAL ADMINISTRATION AND MANAGEMENT CENTER IN THE PRC PRINCIPAL PLACE OF BUSINESS IN HONG KONG COMPANY S WEBSITE PRINCIPAL SHARE REGISTRAR AND TRANSFER OFFICE HONG KONG SHARE REGISTRAR AUDITOR LEGAL ADVISORS PRINCIPAL BANKERS

5 Yuzhou Properties Company Limited Annual Report Financial Highlights INCOME STATEMENT HIGHLIGHTS RMB RMB RMB 1,884 million 1,777 million 18 8, ,700 1,543 million 15 4, Gross Profit 810 million 757 million 7 5, , million 5 8,300 RMB 4,198 million 41 9,800 1,747 million 17 4,700 3,735 million 37 3,500 Property Sales EBITDA 3,784 million 37 8, ,848 million 18 4,800 1,466 million 14 6, Core Profit

6 Financial Highlights 5 RMB 2,733 million 27 3,300 1,957 million 19 5,700 Cash Position 3,729 million 37 2, STATEMENT OF FINANCIAL POSITION HIGHLIGHTS RMB 4,780 million 47 8,000 5,557 million 55 5,700 Total Debts 7,509 million ,593 million 145 9,300 18,253 million 182 5,300 22,278 million 222 7,800 RMB Total Assets RMB 4,567 million 45 6,700 6,001 million 5,351 million , Shareholders Equity

7 Yuzhou Properties Company Limited Annual Report Major Events of 2012 January February March

8 Major Events of April June May

9 Yuzhou Properties Company Limited Annual Report Major Events of 2012 July August September

10 Major Events of October November December

11 Yuzhou Properties Company Limited Annual Report Chairman s Statement

12 Chairman s Statement 11 BUSINESS REVIEW

13 Yuzhou Properties Company Limited Annual Report Chairman s Statement INVESTMENT STRATEGIES

14 Chairman s Statement 13 FINANCING STRATEGIES

15 Yuzhou Properties Company Limited Annual Report Chairman s Statement INVESTOR RELATIONS PROPERTY INVESTMENT AWARDS

16 Chairman s Statement 15 SOCIAL RESPONSIBILITIES DEVELOPMENT STRATEGIES AND PROSPECT FOCUSING ON WEST STRAIT ECONOMIC ZONE DEVELOPMENT

17 Yuzhou Properties Company Limited Annual Report Chairman s Statement EXPLORING FINANCING CHANNELS SEEKING TRUTH FROM FACTS AND TAKING ACTIONS TO SUIT LOCAL CONDITIONS

18 Chairman s Statement 17 ENHANCING THE PERFORMANCE APPRAISAL SYSTEM OBSERVING STRINGENTLY THE INVESTMENT DISCIPLINES

19 Yuzhou Properties Company Limited Annual Report Chairman s Statement PURSUING A STABLE DEVELOPMENT AND TAKING ACTIONS TO SUIT SEASONAL CONDITIONS

20 Chairman s Statement 19 OUTLOOK APPRECIATION

21 Yuzhou Properties Company Limited Annual Report 2012 Management Discussion and Analysis

22 Leverage Strengthen for a Better Future

23 Yuzhou Properties Company Limited Annual Report Management Discussion and Analysis OVERALL PERFORMANCE LAND RESERVES

24 Management Discussion and Analysis 23 SALEABLE GFA OF LAND RESERVES (SQ.M.) West Strait Economic Zone Yangtze River Delta Region 20% Quanzhou 17% Hefei 39% Xiamen Bohai Rim Region 8% Shanghai 6% 5% Longyan Tianjin 5% Fuzhou PRIMARY LAND DEVELOPMENT QUALIFICATION (SQ.M.) West Strait Economic Zone

25 Yuzhou Properties Company Limited Annual Report Management Discussion and Analysis

26 Management Discussion and Analysis 25 SALES OF PROPERTIES

27 Yuzhou Properties Company Limited Annual Report Management Discussion and Analysis

28 Management Discussion and Analysis 27

29 Yuzhou Properties Company Limited Annual Report Management Discussion and Analysis

30 Management Discussion and Analysis 29 PROPERTY INVESTMENT Yuzhou World Trade Center (Xiamen) Yuzhou World Trade Plaza (Xiamen) Yuzhou Jinqiao International (Shanghai)

31 Yuzhou Properties Company Limited Annual Report Management Discussion and Analysis Hotel Operation PROPERTY MANAGEMENT GROSS PROFIT OTHER INCOME AND GAINS

32 Management Discussion and Analysis 31 EXPENSES ON SELLING AND DISTRIBUTION COSTS ADMINISTRATIVE EXPENSES FAIR VALUE (LOSSES)/GAINS ON INVESTMENT PROPERTIES

33 Yuzhou Properties Company Limited Annual Report Management Discussion and Analysis SHARE OF RESULT OF A JOINTLY- CONTROLLED ENTITY PROFIT ATTRIBUTABLE TO SHAREHOLDERS FINANCIAL REVIEW BORROWINGS

34 Management Discussion and Analysis 33 GEARING RATIO FINANCE EXPENSES CURRENCY RISK

35 Yuzhou Properties Company Limited Annual Report Management Discussion and Analysis CONTINGENT LIABILITIES RETURN ON EQUITY EARNINGS PER SHARE

36 Management Discussion and Analysis 35 COMMITMENT HUMAN RESOURCES

37 Yuzhou Properties Company Limited Annual Report 2012 Business

38 Building Cities with Heart, Building Homes with Love

39 Yuzhou Properties Company Limited Annual Report Business LOCATIONS OF PROJECTS TIANJIN XIAMEN Yuzhou Palace Country Yuzhou World Trade Center Yuzhou Golf Yuzhou Shoreline Yuzhou Central Coast Yuzhou Riverside City Town Yuzhou Cloud Top International HEFEI Yuzhou Skyline Yuzhou Jade Lakeshire

40 Business 39 SHANGHAI Tianjin Yuzhou City Plaza Hefei Shanghai Yuzhou Center FUZHOU Longyan Longyon Fuzhou Quanzhou Xiamen Yuzhou Gushan No. One Yuzhou Oriental Venice LONGYAN QUANZHOU Yuzhou Castle above City Yuzhou City Plaza Phase I

41 Yuzhou Properties Company Limited Annual Report Business SALEABLE GFA OF LAND RESERVES (SQ.M.) Region Area (sq.m..) West Strait Economic Zone XIAMEN Yuzhou World Trade Center Yangtze River Delta Region Bohai Rim Region PRIMARY LAND DEVELOPMENT QUALIFICATION (SQ.M.) Region Area (sq.m..) West Strait Economic Zone

42 Business 41 With total site area and total saleable GFA of 19,454 sq.m. and 182,640 sq.m. respectively 19, ,640 Project description

43 Yuzhou Properties Company Limited Annual Report Business XIAMEN Yuzhou Golf With total site area and total saleable GFA of 55,986 sq.m. and 114,574 sq.m. respectively 55, ,574 Project description

44 Business 43 Yuzhou Shoreline With total site area and total saleable GFA of 107,622 sq.m. and 421,316 sq.m. respectively 107, ,316 Project description

45 Yuzhou Properties Company Limited Annual Report Business XIAMEN Yuzhou Central Coast With total site area and total saleable GFA of 123,240 sq.m. and 535,000 sq.m. respectively 123, ,000 Project description

46 Business 45 Yuzhou Riverside City Town With total site area and total saleable GFA of 284,414 sq.m. and 512,600 sq.m. respectively 284, ,600 Project description

47 Yuzhou Properties Company Limited Annual Report Business XIAMEN Yuzhou Cloud Top International With total site area and total saleable GFA of 15,652 sq.m. and 69,730 sq.m. respectively 15,652 69,730 Project description

48 Business 47 LONGYAN Yuzhou Castle above City With total site area and total saleable GFA of 100,878 sq.m. and 312,330 sq.m. respectively 100, ,330 Project description

49 Yuzhou Properties Company Limited Annual Report Business FUZHOU Yuzhou Gushan No. One With total site area and total saleable GFA of 234,160 sq.m. and 79,923 sq.m. respectively 234,160 79,923 Project description

50 Business 49 Yuzhou Oriental Venice With total site area and total saleable GFA of 706,397 sq.m. and 355,431 sq.m. respectively 706, ,431 Project description

51 Yuzhou Properties Company Limited Annual Report Business QUANZHOU Yuzhou City Plaza Phase I With total site area and total saleable GFA of 125,000 sq.m. and 491,800 sq.m. respectively 125, ,800 Project description

52 Business 51 SHANGHAI Yuzhou City Plaza With total site area and total saleable GFA of 50,628 sq.m. and 98,494 sq.m. respectively 50,628 98,494 Project description

53 Yuzhou Properties Company Limited Annual Report Business SHANGHAI Yuzhou Center With total site area and total saleable GFA of 6,818 sq.m. and 28,670 sq.m. respectively 6,818 28,670 Project description

54 Business 53 HEFEI Yuzhou Skyline With total site area and total saleable GFA of 446,757 sq.m. and1,222,859 sq.m. respectively 446,757 1,222,859 Project description

55 Yuzhou Properties Company Limited Annual Report Business HEFEI Yuzhou Jade Lakeshire With total site area and total saleable GFA of 96,000 sq.m. and 288,000 sq.m. respectively 96, ,000 Project description

56 Business 55 TIANJIN Yuzhou Palace Country With total site area and total saleable GFA of 135,173 sq.m. and 319,748 sq.m. respectively 135, ,748 Project description

57 Yuzhou Properties Company Limited Annual Report Business

58 Business 57

59 Yuzhou Properties Company Limited Annual Report Business

60 Business 59

61 Yuzhou Properties Company Limited Annual Report Business

62 Business 61

63 Yuzhou Properties Company Limited Annual Report Directors Biographies BOARD OF DIRECTORS EXECUTIVE DIRECTORS

64 Directors Biographies 63

65 Yuzhou Properties Company Limited Annual Report Directors Biographies INDEPENDENT NON-EXECUTIVE DIRECTORS

66 Directors Biographies 65

67 Yuzhou Properties Company Limited Annual Report Directors Biographies

68 Senior Management s Biographies 67 CHIEF FINANCIAL OFFICER AND COMPANY SECRETARY

69 Yuzhou Properties Company Limited Annual Report Report of the Directors PRINCIPAL ACTIVITIES RESULTS, DIVIDENDS AND BONUS ISSUE FINANCIAL HIGHLIGHT PROPERTY, PLANT AND EQUIPMENT AND INVESTMENT PROPERTIES

70 Report of the Directors 69 SENIOR NOTES BONDS ISSUE PRE-EMPTIVE RIGHTS PURCHASE, REDEMPTION OR SALE OF LISTED SECURITIES OF THE COMPANY

71 Yuzhou Properties Company Limited Annual Report Report of the Directors RESERVES DISTRIBUTABLE RESERVES CHARITABLE CONTRIBUTIONS MAJOR CUSTOMERS AND SUPPLIERS DIRECTORS Executive Directors: Independent Non-executive Directors:

72 Report of the Directors 71 DIRECTORS AND SENIOR MANAGEMENT S BIOGRAPHIES DIRECTORS SERVICE CONTRACTS DIRECTORS REMUNERATION

73 Yuzhou Properties Company Limited Annual Report Report of the Directors DIRECTORS INTERESTS IN CONTRACTS MANAGEMENT CONTRACTS DIRECTORS INTERESTS IN SHARES LONG POSITIONS IN ORDINARY SHARES OF THE COMPANY:

74 Report of the Directors 73 SUBSTANTIAL SHAREHOLDERS INTERESTS IN SHARES LONG POSITIONS IN ORDINARY SHARES OF THE COMPANY:

75 Yuzhou Properties Company Limited Annual Report Report of the Directors SHARE OPTION SCHEME

76 Report of the Directors 75

77 Yuzhou Properties Company Limited Annual Report Report of the Directors

78 Report of the Directors 77 SUFFICIENCY OF PUBLIC FLOAT AUDIT COMMITTEE DIRECTORS INTERESTS IN A COMPETING BUSINESS AUDITORS

79 Yuzhou Properties Company Limited Annual Report Corporate Governance Report I. RULES OF THE MAIN BOARD I.

80 79 Corporate Governance Report

81 Yuzhou Properties Company Limited Annual Report Corporate Governance Report

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83 Yuzhou Properties Company Limited Annual Report Corporate Governance Report II. CODE PROVISIONS II.

84 83 Corporate Governance Report

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124 Corporate Governance Report 123 III. RECOMMENDED BEST PRACTICES III.

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126 125 Corporate Governance Report

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130 Corporate Governance Report 129 MANAGEMENT STRUCTURE CHART Nomination committee Gu Jiande (Chairman) Lam Lung On Wee Henny Soon Chiang Board of Directors Executive Directors: Lam Lung On Kwok Ying Lan Lin Longzhi Lin Conghui Independent Non-executive Directors: Gu Jiande Lam Kwong Siu Wee Henny Soon Chiang Remuneration committee Gu Jiande (Chairman) Lam Lung On Wee Henny Soon Chiang Audit committee Wee Henny Soon Chiang (Chairman) Gu Jiande Lam Kwong Siu Audit Department Group Chief Executive Officer Lam Lung On Corporate Office President Office Legal Department Investor Relations Department Investment Affairs Department Human Resources & Administration Department Information Management Technology Department Design Management Department Cost Control Department Purchase Affairs Department Project Management Department Marketing Affairs Department Planning and Finance Department Business Operation Department Legal Department Administration Department Other Departments

131 Yuzhou Properties Company Limited Annual Report Investor Relations SHARE PRICE PERFORMANCE 180% 160% 140% 120% 100% 80% 60% The Company Hang Seng Index

132 Investor Relations 131 SHAREHOLDER RETURNS DEPLOYING INTERACTIVE MULTI- CHANNELLED COMMUNICATION TO REALIZE EFFECTIVE INVESTOR RELATIONS Enhancing investor relations management system

133 Yuzhou Properties Company Limited Annual Report Investor Relations Facilitating diversified and multi-channelled investor activities

134 Investor Relations 133 Attendance Analysis of Investor Relations Activities in % Non-deal roadshow 16% Investor forum 30% Results presentation 22% Site-visit 27% Meeting and conference call List of investor relations activities of the Company conducted in 2012

135 Yuzhou Properties Company Limited Annual Report Investor Relations

136 Investor Relations 135 ADHERING TO TIMELY, JUST, FAIR AND ACCURATE INFORMATION DISCLOSURE

137 Yuzhou Properties Company Limited Annual Report Investor Relations

138 Investor Relations 137

139 Yuzhou Properties Company Limited Annual Report Investor Relations HEARING INVESTORS COMPREHENSIVELY AND REALIZING INTERACTIVE COMMUNICATIONS OTHER NECESSARY INFORMATION FOR SHAREHOLDERS SHAREHOLDER SERVICES SHAREHOLDER ENQUIRIES INVESTOR RELATIONS

140 Independent Auditors Report 139 DIRECTORS RESPONSIBILITY FOR THE CONSOLIDATED FINANCIAL STATEMENTS

141 Yuzhou Properties Company Limited Annual Report Independent Auditors Report (Continued) AUDITORS RESPONSIBILITY

142 Independent Auditors Report (Continued) 141 OPINION

143 Yuzhou Properties Company Limited Annual Report Consolidated Income Statement

144 Consolidated Statement of Comprehensive Income 143

145 Yuzhou Properties Company Limited Annual Report Consolidated Statement of Financial Position

146 Consolidated Statement of Financial Position (Continued) 145

147 Yuzhou Properties Company Limited Annual Report Consolidated Statement of Changes in Equity

148 Consolidated Statement of Cash Flows 147

149 Yuzhou Properties Company Limited Annual Report 2012 Consolidated Statement of Cash Flows (Continued) 148

150 Statement of Financial Position 149

151 Yuzhou Properties Company Limited Annual Report Notes to Financial Statements 1. CORPORATE INFORMATION BASIS OF PREPARATION BASIS OF CONSOLIDATION 2.1

152 Notes to Financial Statements BASIS OF PREPARATION (Continued) BASIS OF CONSOLIDATION (Continued) CHANGES IN ACCOUNTING POLICY AND DISCLOSURES 2.2

153 Yuzhou Properties Company Limited Annual Report Notes to Financial Statements 2.2 CHANGES IN ACCOUNTING POLICY AND DISCLOSURES (Continued) 2.2

154 Notes to Financial Statements ISSUED BUT NOT YET EFFECTIVE HONG KONG FINANCIAL REPORTING STANDARDS 2.3

155 Yuzhou Properties Company Limited Annual Report Notes to Financial Statements 2.3 ISSUED BUT NOT YET EFFECTIVE HONG KONG FINANCIAL 2.3 REPORTING STANDARDS (Continued)

156 Notes to Financial Statements ISSUED BUT NOT YET EFFECTIVE HONG KONG FINANCIAL 2.3 REPORTING STANDARDS (Continued)

157 Yuzhou Properties Company Limited Annual Report Notes to Financial Statements 2.3 ISSUED BUT NOT YET EFFECTIVE HONG KONG FINANCIAL 2.3 REPORTING STANDARDS (Continued)

158 Notes to Financial Statements ISSUED BUT NOT YET EFFECTIVE HONG KONG FINANCIAL 2.3 REPORTING STANDARDS (Continued)

159 Yuzhou Properties Company Limited Annual Report Notes to Financial Statements 2.3 ISSUED BUT NOT YET EFFECTIVE HONG KONG FINANCIAL 2.3 REPORTING STANDARDS (Continued)

160 Notes to Financial Statements ISSUED BUT NOT YET EFFECTIVE HONG KONG FINANCIAL 2.3 REPORTING STANDARDS (Continued)

161 Yuzhou Properties Company Limited Annual Report Notes to Financial Statements 2.3 ISSUED BUT NOT YET EFFECTIVE HONG KONG FINANCIAL 2.3 REPORTING STANDARDS (Continued)

162 Notes to Financial Statements ISSUED BUT NOT YET EFFECTIVE HONG KONG FINANCIAL 2.3 REPORTING STANDARDS (Continued)

163 Yuzhou Properties Company Limited Annual Report Notes to Financial Statements 2.3 ISSUED BUT NOT YET EFFECTIVE HONG KONG FINANCIAL 2.3 REPORTING STANDARDS (Continued) 2.4 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES SUBSIDIARIES 2.4 JOINT VENTURES

164 Notes to Financial Statements SUMMARY OF SIGNIFICANT 2.4 ACCOUNTING POLICIES (Continued) JOINT VENTURES (Continued)

165 Yuzhou Properties Company Limited Annual Report Notes to Financial Statements 2.4 SUMMARY OF SIGNIFICANT 2.4 ACCOUNTING POLICIES (Continued) JOINTLY-CONTROLLED ENTITIES

166 Notes to Financial Statements SUMMARY OF SIGNIFICANT 2.4 ACCOUNTING POLICIES (Continued) JOINTLY-CONTROLLED ENTITIES (Continued) IMPAIRMENT OF NON-FINANCIAL ASSETS

167 Yuzhou Properties Company Limited Annual Report Notes to Financial Statements 2.4 SUMMARY OF SIGNIFICANT 2.4 ACCOUNTING POLICIES (Continued) IMPAIRMENT OF NON-FINANCIAL ASSETS (Continued) RELATED PARTIES

168 Notes to Financial Statements SUMMARY OF SIGNIFICANT 2.4 ACCOUNTING POLICIES (Continued) RELATED PARTIES (Continued)

169 Yuzhou Properties Company Limited Annual Report Notes to Financial Statements 2.4 SUMMARY OF SIGNIFICANT 2.4 ACCOUNTING POLICIES (Continued) PROPERTY, PLANT AND EQUIPMENT AND DEPRECIATION

170 Notes to Financial Statements SUMMARY OF SIGNIFICANT 2.4 ACCOUNTING POLICIES (Continued) PROPERTY, PLANT AND EQUIPMENT AND DEPRECIATION (Continued)

171 Yuzhou Properties Company Limited Annual Report Notes to Financial Statements 2.4 SUMMARY OF SIGNIFICANT 2.4 ACCOUNTING POLICIES (Continued) INVESTMENT PROPERTIES

172 Notes to Financial Statements SUMMARY OF SIGNIFICANT 2.4 ACCOUNTING POLICIES (Continued) INVESTMENT PROPERTIES (Continued) LEASES

173 Yuzhou Properties Company Limited Annual Report Notes to Financial Statements 2.4 SUMMARY OF SIGNIFICANT 2.4 ACCOUNTING POLICIES (Continued) PROPERTIES UNDER DEVELOPMENT COMPLETED PROPERTIES HELD FOR SALE

174 Notes to Financial Statements SUMMARY OF SIGNIFICANT 2.4 ACCOUNTING POLICIES (Continued) INVESTMENTS AND OTHER FINANCIAL ASSETS Initial recognition and measurement Subsequent measurement Financial assets at fair value through profit or loss

175 Yuzhou Properties Company Limited Annual Report Notes to Financial Statements 2.4 SUMMARY OF SIGNIFICANT 2.4 ACCOUNTING POLICIES (Continued) INVESTMENTS AND OTHER FINANCIAL ASSETS (Continued) Financial assets at fair value through profit or loss (Continued)

176 Notes to Financial Statements SUMMARY OF SIGNIFICANT 2.4 ACCOUNTING POLICIES (Continued) INVESTMENTS AND OTHER FINANCIAL ASSETS (Continued) Financial assets at fair value through profit or loss (Continued) Loans and receivables

177 Yuzhou Properties Company Limited Annual Report Notes to Financial Statements 2.4 SUMMARY OF SIGNIFICANT 2.4 ACCOUNTING POLICIES (Continued) IMPAIRMENT OF FINANCIAL ASSETS Financial assets carried at amortised cost

178 Notes to Financial Statements SUMMARY OF SIGNIFICANT 2.4 ACCOUNTING POLICIES (Continued) IMPAIRMENT OF FINANCIAL ASSETS (Continued) Financial assets carried at amortised cost (Continued)

179 Yuzhou Properties Company Limited Annual Report Notes to Financial Statements 2.4 SUMMARY OF SIGNIFICANT 2.4 ACCOUNTING POLICIES (Continued) DERECOGNITION OF FINANCIAL ASSETS

180 Notes to Financial Statements SUMMARY OF SIGNIFICANT 2.4 ACCOUNTING POLICIES (Continued) FINANCIAL LIABILITIES Initial recognition and measurement Subsequent measurement Loans and borrowings

181 Yuzhou Properties Company Limited Annual Report Notes to Financial Statements 2.4 SUMMARY OF SIGNIFICANT 2.4 ACCOUNTING POLICIES (Continued) FINANCIAL LIABILITIES (Continued) Financial guarantee contracts DERECOGNITION OF FINANCIAL LIABILITIES OFFSETTING OF FINANCIAL INSTRUMENTS

182 Notes to Financial Statements SUMMARY OF SIGNIFICANT 2.4 ACCOUNTING POLICIES (Continued) DERIVATIVE FINANCIAL INSTRUMENTS CASH AND CASH EQUIVALENTS PROVISIONS

183 Yuzhou Properties Company Limited Annual Report Notes to Financial Statements 2.4 SUMMARY OF SIGNIFICANT 2.4 ACCOUNTING POLICIES (Continued) INCOME TAX

184 Notes to Financial Statements SUMMARY OF SIGNIFICANT 2.4 ACCOUNTING POLICIES (Continued) INCOME TAX (Continued)

185 Yuzhou Properties Company Limited Annual Report Notes to Financial Statements 2.4 SUMMARY OF SIGNIFICANT 2.4 ACCOUNTING POLICIES (Continued) INCOME TAX (Continued) REVENUE RECOGNITION

186 Notes to Financial Statements SUMMARY OF SIGNIFICANT 2.4 ACCOUNTING POLICIES (Continued) SHARE-BASED PAYMENTS

187 Yuzhou Properties Company Limited Annual Report Notes to Financial Statements 2.4 SUMMARY OF SIGNIFICANT 2.4 ACCOUNTING POLICIES (Continued) SHARE-BASED PAYMENTS (Continued) OTHER EMPLOYEE BENEFITS Pension scheme

188 Notes to Financial Statements SUMMARY OF SIGNIFICANT 2.4 ACCOUNTING POLICIES (Continued) OTHER EMPLOYEE BENEFITS (Continued) Pension scheme (Continued) BORROWING COSTS DIVIDENDS

189 Yuzhou Properties Company Limited Annual Report Notes to Financial Statements 2.4 SUMMARY OF SIGNIFICANT 2.4 ACCOUNTING POLICIES (Continued) DIVIDENDS (Continued) FOREIGN CURRENCIES

190 Notes to Financial Statements SUMMARY OF SIGNIFICANT 2.4 ACCOUNTING POLICIES (Continued) FOREIGN CURRENCIES (Continued) 3. SIGNIFICANT ACCOUNTING JUDGEMENTS AND ESTIMATES 3.

191 Yuzhou Properties Company Limited Annual Report Notes to Financial Statements 3. SIGNIFICANT ACCOUNTING JUDGEMENTS AND ESTIMATES 3. (Continued) JUDGEMENTS Operating lease commitments Group as lessor Classification between investment properties and owner-occupied properties

192 Notes to Financial Statements SIGNIFICANT ACCOUNTING JUDGEMENTS AND ESTIMATES 3. (Continued) JUDGEMENTS (Continued) Classification between investment properties and owner-occupied properties (Continued) Classification between investment properties and properties held for sale

193 Yuzhou Properties Company Limited Annual Report Notes to Financial Statements 3. SIGNIFICANT ACCOUNTING JUDGEMENTS AND ESTIMATES 3. (Continued) ESTIMATION UNCERTAINTY Valuation of properties under development and properties held for sale Allocation of construction cost on properties under development

194 Notes to Financial Statements SIGNIFICANT ACCOUNTING JUDGEMENTS AND ESTIMATES 3. (Continued) ESTIMATION UNCERTAINTY (Continued) PRC corporate income tax ( CIT ) PRC land appreciation tax ( LAT ) Deferred tax assets

195 Yuzhou Properties Company Limited Annual Report Notes to Financial Statements 3. SIGNIFICANT ACCOUNTING JUDGEMENTS AND ESTIMATES 3. (Continued) ESTIMATION UNCERTAINTY (Continued) Fair value of investment properties 4. OPERATING SEGMENT INFORMATION 4.

196 Notes to Financial Statements OPERATING SEGMENT INFORMATION 4. (Continued)

197 Yuzhou Properties Company Limited Annual Report Notes to Financial Statements 4. OPERATING SEGMENT INFORMATION 4. (Continued)

198 Notes to Financial Statements OPERATING SEGMENT INFORMATION 4. (Continued)

199 Yuzhou Properties Company Limited Annual Report Notes to Financial Statements 5. REVENUE, OTHER INCOME AND GAINS 5.

200 Notes to Financial Statements PROFIT BEFORE TAX 6.

201 Yuzhou Properties Company Limited Annual Report Notes to Financial Statements 7. FINANCE COSTS DIRECTORS AND CHIEF EXECUTIVE S REMUNERATION 8.

202 Notes to Financial Statements DIRECTORS AND CHIEF EXECUTIVE S REMUNERATION 8. (Continued)

203 Yuzhou Properties Company Limited Annual Report Notes to Financial Statements 8. DIRECTORS AND CHIEF EXECUTIVE S REMUNERATION 8. (Continued)

204 Notes to Financial Statements FIVE HIGHEST PAID INDIVIDUALS 9.

205 Yuzhou Properties Company Limited Annual Report 2012 Notes to Financial Statements INCOME TAX 10.

206 Notes to Financial Statements INCOME TAX (Continued) 10.

207 Yuzhou Properties Company Limited Annual Report 2012 Notes to Financial Statements PROFIT ATTRIBUTABLE TO OWNERS OF THE COMPANY DIVIDEND 12.

208 Notes to Financial Statements EARNINGS PER SHARE ATTRIBUTABLE TO EQUITY HOLDERS OF THE COMPANY 13.

209 Yuzhou Properties Company Limited Annual Report 2012 Notes to Financial Statements PROPERTY, PLANT AND EQUIPMENT GROUP 14.

210 Notes to Financial Statements PROPERTY, PLANT AND 14. EQUIPMENT (Continued) GROUP (Continued)

211 Yuzhou Properties Company Limited Annual Report 2012 Notes to Financial Statements PROPERTY, PLANT AND 14. EQUIPMENT (Continued) COMPANY

212 Notes to Financial Statements INVESTMENT PROPERTIES GROUP 15.

213 Yuzhou Properties Company Limited Annual Report 2012 Notes to Financial Statements INVESTMENT PROPERTIES (Continued) 15.

214 Notes to Financial Statements PREPAID LAND LEASE PAYMENTS 16.

215 Yuzhou Properties Company Limited Annual Report 2012 Notes to Financial Statements PREPAID LAND LEASE PAYMENTS 16. (Continued) 17. INVESTMENTS IN SUBSIDIARIES 17.

216 Notes to Financial Statements INVESTMENTS IN SUBSIDIARIES 17. (Continued)

217 Yuzhou Properties Company Limited Annual Report 2012 Notes to Financial Statements INVESTMENTS IN SUBSIDIARIES 17. (Continued)

218 Notes to Financial Statements INVESTMENTS IN SUBSIDIARIES 17. (Continued)

219 Yuzhou Properties Company Limited Annual Report 2012 Notes to Financial Statements INVESTMENTS IN SUBSIDIARIES 17. (Continued)

220 Notes to Financial Statements INVESTMENTS IN SUBSIDIARIES 17. (Continued)

221 Yuzhou Properties Company Limited Annual Report 2012 Notes to Financial Statements INVESTMENTS IN SUBSIDIARIES 17. (Continued)

222 Notes to Financial Statements INVESTMENTS IN SUBSIDIARIES 17. (Continued)

223 Yuzhou Properties Company Limited Annual Report 2012 Notes to Financial Statements INVESTMENT IN A JOINTLY- CONTROLLED ENTITY 18.

224 Notes to Financial Statements INVESTMENT IN A JOINTLY- CONTROLLED ENTITY (Continued) PROPERTIES UNDER DEVELOPMENT 19.

225 Yuzhou Properties Company Limited Annual Report 2012 Notes to Financial Statements PROPERTIES UNDER DEVELOPMENT 19. (Continued) 20. COMPLETED PROPERTIES HELD FOR SALE 20.

226 Notes to Financial Statements PREPAYMENTS, DEPOSITS AND OTHER RECEIVABLES CASH AND CASH EQUIVALENTS 22.

227 Yuzhou Properties Company Limited Annual Report 2012 Notes to Financial Statements CASH AND CASH EQUIVALENTS 22. (Continued)

228 Notes to Financial Statements RECEIPTS IN ADVANCE TRADE PAYABLES OTHER PAYABLES AND ACCRUALS 25.

229 Yuzhou Properties Company Limited Annual Report 2012 Notes to Financial Statements OTHER PAYABLES AND ACCRUALS (Continued) DERIVATIVE FINANCIAL INSTRUMENTS 26.

230 Notes to Financial Statements DERIVATIVE FINANCIAL INSTRUMENTS 26. (Continued) 27. INTEREST-BEARING BANK AND OTHER BORROWINGS 27.

231 Yuzhou Properties Company Limited Annual Report 2012 Notes to Financial Statements INTEREST-BEARING BANK AND OTHER BORROWINGS (Continued) 27.

232 Notes to Financial Statements INTEREST-BEARING BANK AND OTHER BORROWINGS (Continued) 27.

233 Yuzhou Properties Company Limited Annual Report 2012 Notes to Financial Statements INTEREST-BEARING BANK AND OTHER BORROWINGS (Continued) 27.

234 Notes to Financial Statements INTEREST-BEARING BANK AND OTHER BORROWINGS (Continued) PROVISION FOR LAND APPRECIATION TAX 28.

235 Yuzhou Properties Company Limited Annual Report 2012 Notes to Financial Statements PROVISION FOR LAND 28. APPRECIATION TAX (Continued) 29. DEFERRED TAX 29.

236 Notes to Financial Statements DEFERRED TAX (Continued) 29.

237 Yuzhou Properties Company Limited Annual Report 2012 Notes to Financial Statements DEFERRED TAX (Continued) SHARE CAPITAL SHARES 30.

238 Notes to Financial Statements SHARE OPTION SCHEME 31.

239 Yuzhou Properties Company Limited Annual Report 2012 Notes to Financial Statements SHARE OPTION SCHEME (Continued) 31.

240 Notes to Financial Statements SHARE OPTION SCHEME (Continued) 31.

241 Yuzhou Properties Company Limited Annual Report 2012 Notes to Financial Statements SHARE OPTION SCHEME (Continued) RESERVES (A) GROUP 32. (A) (i) Statutory surplus reserve (i) (ii) Other reserve (ii)

242 Notes to Financial Statements RESERVES (Continued) (B) COMPANY 32. (B)

243 Yuzhou Properties Company Limited Annual Report 2012 Notes to Financial Statements DISPOSAL OF A SUBSIDIARY ACQUISITION OF A SUBSIDIARY 34.

244 Notes to Financial Statements FINANCIAL GUARANTEES 35.

245 Yuzhou Properties Company Limited Annual Report 2012 Notes to Financial Statements PLEDGE OF ASSETS OPERATING LEASE ARRANGEMENTS (A) AS LESSOR 37. (A)

246 Notes to Financial Statements OPERATING LEASE ARRANGEMENTS 37. (Continued) (B) AS LESSEE (B) 38. COMMITMENTS 38.

247 Yuzhou Properties Company Limited Annual Report 2012 Notes to Financial Statements RELATED PARTY TRANSACTIONS (A) 39. (A) (B) COMPENSATION OF KEY MANAGEMENT PERSONNEL OF THE GROUP (B)

248 Notes to Financial Statements RELATED PARTY TRANSACTIONS 39. (Continued) (C) (C) (D) (D) 40. FINANCIAL INSTRUMENTS BY CATEGORY 40.

249 Yuzhou Properties Company Limited Annual Report 2012 Notes to Financial Statements FAIR VALUE AND FAIR VALUE HIERARCHY FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES 42.

250 Notes to Financial Statements FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (Continued) MARKET RISK INTEREST RATE RISK 42.

251 Yuzhou Properties Company Limited Annual Report 2012 Notes to Financial Statements FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (Continued) FOREIGN CURRENCY RISK 42.

252 Notes to Financial Statements FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (Continued) FOREIGN CURRENCY RISK (Continued) 42.

253 Yuzhou Properties Company Limited Annual Report 2012 Notes to Financial Statements FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (Continued) CREDIT RISK 42. LIQUIDITY RISK

254 Notes to Financial Statements FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (Continued) LIQUIDITY RISK (Continued) Group 42.

255 Yuzhou Properties Company Limited Annual Report 2012 Notes to Financial Statements FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (Continued) LIQUIDITY RISK (Continued) Company 42.

256 Notes to Financial Statements FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (Continued) CAPITAL MANAGEMENT 42. GROUP

257 Yuzhou Properties Company Limited Annual Report 2012 Notes to Financial Statements EVENTS AFTER THE REPORTING PERIOD APPROVAL OF THE FINANCIAL STATEMENTS 44.

258 Five Years Financial Summary 257

259 Yuzhou Properties Company Limited Annual Report Schedule of Major Properties MAJOR INVESTMENT PROPERTIES

260 Schedule of Major Properties 259 MAJOR PROPERTIES UNDER DEVELOPMENT

261 Yuzhou Properties Company Limited Annual Report Schedule of Major Properties MAJOR PROPERTIES UNDER DEVELOPMENT (Continued) MAJOR COMPLETED PROPERTIES HELD FOR SALE

262 Stock Code : HK Principal administration and management center in the PRC 39 West Hubin Road Xiamen Fujian People s Republic of China 39 Principal place of business in Hong Kong Units , 49th Floor The Center 99 Queen s Road Central Central, Hong Kong

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