Shareholders put forward questions and answers

2014-09-11

One, in your group released 2013 annual report stated, "the year ended December 31, 2013, attributable to the owners of the parent of approximately HK $2167412000," is how to form?

Answer: the group 2013 annual attributable to the owners of the parent was approximately HK $2167412000, the profit is mainly from the sale of the company a wholly owned Affiliated Companies (Jin Yuxing) before tax profit of approximately HK $2425977000 (please refer to the statement of comprehensive income of the group in 2013 annual report of thirty-fourth pages).

Two, in your group report 2013 consolidated income statement, there are gains on sale of a Affiliated Companies of HK $2425977000, please describe the business transactions.

Answer: in October 11, 2013, the group agreed to sell the entire equity Yuxing (through its own 36.66% equity between Jiangnan holding 51000000 shares of Ping An shares joint economic benefits, at the same time, agreed to the buyer) Hua Haoxin (Beijing) Investment Limited, the final payment within 90 days after the date, the exercise price of 37.29 yuan per share buy back to the south of the Yangtze River not more than 41000000 shares of Ping An shares, but not less than 27000000 shares of Ping An stock. Therefore, in 2013 period, the group sold Yuxing produced significant pre tax income of approximately HK $2426000000. This income includes options using the binomial model on the basis of Weigesi calculation and recognize the fair value of a put option net proceeds of approximately HK $266000000, is included in the profit and loss account and become a part of the sale of Jin Yuxing income (please refer to the 2013 annual report of the group page 9,10,14 on the "financial and Business Review", pp. 96-97 financial note 32 content).

Three, in your group 2013 annual performance gains on sale of a Affiliated Companies of 2425977000 Hong Kong dollars, why include due recognition of equity repurchase matters put options and call options value of net income of approximately HK $266000000? Please explain.

Answer: in October 11, 2013 and October 31, 2013 announcement about the sale agreement circular, the group that the sale of Yuxing all shares, at the same time, commitment to repurchase of not more than 41000000 shares, two items but not less than 27000000 shares of A shares Chinese peace. For matters arising from repurchase of put options and call options, the fair value option, mainly according to the time limit of safe stocks may refer to the market price, options and other factors and on the basis of using the binomial model and definition weigesi. Along with the time change and Ping An shares market price goes on, the fair value of these options will also change, which will have considerable influence positive or negative for the group stage after the performance.