This document is the balance sheet and income statement of Shang Properties, Inc. for the years ending December 31, 2008 and 2007. The balance sheet shows that total assets increased from PHP 17.2 billion in 2007 to PHP 20.4 billion in 2008, with increases in noncurrent assets such as investments in subsidiaries and associates and investment properties. Total liabilities also increased from PHP 5 billion to PHP 8.2 billion from 2007 to 2008, with the addition of bank loans in 2008. The income statement indicates that revenues increased significantly from PHP 389.8 million in 2007 to PHP 844.3 million in 2008, resulting in a net income of PHP 399.8 million for 2008 compared to PHP 193 million in 2007

1. SHANG PROPERTIES, INC.
December 31
BALANCE SHEET
2008 2007
ASSETS
Current Assets
Cash and cash equivalents P1,090,553,882 P781,707,888
Financial assets at the fair value through profit or loss P23, 350,378 P1,277,885
Receivables – net P433,450,049 P530,303,365
Properties held for sale:
Condominiums unit held for sale P403,825,023 P524,700,046
Real estate properties held for sale P3,193,247 P4,626,492
Prepayments and other current assets P1,476,147 P1,729,834
Total Current Assets P1,955,848,726 P1,844,345,510
Noncurrent Assets
Installment contacts receivable – net of P22,341,555 P6,213,964
current portion
Investments in shares of stock and advances to P9,868,437,006 P6,740,042,697
subsidiaries and associates
Investment Properties P8,530,240,000 P,530,240,000
Property and equipment P7,593,998 P8,767,756
Available-for-sale financial assets P9,786,515 P9,326,515
Deferred income tax assets P23,184,985 P32,343,669,
Goodwill P27,941,765 P27,941,765
Other noncurrent assets P254,475 -

2. SHANG PROPERTIES, INC.
December 31
Total Noncurrent Assets P18,489,780,295 P15,354,876,366
TOTAL ASSETS P20,445,629,021 P17,199,221,876
LIABILITIES AND EQUITY
Current Liabilities
Accounts payable and other current liabilities P2,410,385,077 P2,368,678,538
Income Tax Payable P2,320,953 P8,776,769
Dividend payable P12,093,046 P13,657,750
Total Current Liabilities P2,424,799,076 P2,391,113,057
Noncurrent Liabilities
Bank loan P3,200,000,000
Accrued employee benefits P21,468,092 P21,396,603
Deffered income tax liabilities P2,539,683,741 P2,595,147,124
Total Noncurrent Liabilities P5,761,151,833 P2,615,543,727
Total Liabilities P8,185,950,909 P5,009,656,784

3. SHANG PROPERTIES, INC.
December 31
Equity
Capital Stock P4,764,058,982 P4,764,058,982
Additional paid-in capital P1,210,073,869 P1,210,073,869
Treasury shares P6,850,064 P6,850,064
Cumulative changes in fair value of P220,500 (94,250)
available-for-sale financial assets
Retained earnings P6,292,174,825 P6,222,376,555
Total Equity P12,259,678,112 P12,189,565,092
TOTAL LIABLITIES AND EQUITY P20,445,629,021 P17,199,221,876

4. SHANG PROPERTIES, INC.
December 31
INCOME STATEMENT
2008 2007
REVENUES
Rental P177,335,502 P170,345,218
Dividends P346,507,143 P107,081,545
Interest Income P35,257,684 P41,350,978
Sale of condominium units P236,135,431 P47,266,716
Gain on sale of financial assets of fair value P25,548,137 -
Through profit or loss
Foreign exchange gain P1,391,804 -
Others P22,152,214 P23,770,613
P844,327,915 P389,815,070
EXPENSES
Cost of condominium sales P120,875,024 P30,779,953
Cost of memorial lots sold P1,433,245 P611,828
Interest expense P136,648,592 -
Staff costs P64,141,597 P50,322,456
General and Administrative P40,286,868 P49,693,034
Taxes and licenses P31,939,464 P18,073,060
Depreciation and amortization P6,450,694 P6,897,390
Bank charges P1,067,993 -
Foreign exchange loss – net - P4,603,016
P402,843,477 P160,980,737

5. SHANG PROPERTIES, INC.
December 31
INCOME BEFORE INCOME TAX P441,484,438 P228,838,333
PROVISION FOR INCOME TAX P41,685,164 P35,785,394
NET INCOME FOR THE YEAR P399,799,274 P193,048,939