Industry Overview
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THIS DOCUMENT IS IN DRAFT FORM, INCOMPLETE AND SUBJECT TO CHANGE AND THAT THE INFORMATION MUST BE READ IN CONJUNCTION WITH THE SECTION HEADED ‘‘WARNING’’ ON THE COVER OF THIS DOCUMENT. INDUSTRY OVERVIEW The information presented in this section is derived from the Frost and Sullivan Report, as well as various official government publications and publicly and privately available sources. The information derived from the Frost and Sullivan Report reflects estimates of the market conditions based on information from various sources. We believe that the sources of the information in this section are appropriate sources for such information and have taken reasonable care in extracting and reproducing such information. We have no reason to believe that such information is false or misleading or that any part has been omitted that would render such information false or misleading. We, the Joint Sponsors, [REDACTED]. [REDACTED], [REDACTED], [REDACTED], or their respective affiliates or advisors or any other party (excluding Frost & Sullivan) involved in the [REDACTED] have not independently verified, and make no representation as to, the accuracy of the information from official government or other third-party sources. Accordingly, the official government and other third-party sources contained herein may not be accurate and should not be unduly relied upon. Our Directors confirm that after due and reasonable consideration, there is no adverse change in the market information since the date of the Frost and Sullivan Report up to the date of this document which may qualify, conflict or have a material input on the information in this section. SOURCES OF INFORMATION AND RESEARCH METHODOLOGY We have commissioned Frost & Sullivan, an independent market research consulting firm which is engaged in the provision of market research consultancy services, to conduct a detailed analysis of the PRC property development and construction market. The Frost & Sullivan is a global consulting company and an Independent Third Party. Founded in 1961, it has 40 offices worldwide with over 1,800 industry consultants, market research analysts and economists. We have agreed to pay a total of RMB700,000 for the preparation of the Frost & Sullivan Report, and our Directors consider that such fee reflects market rates. Our Directors are of the view that the payment does not affect the fairness of the views and conclusions presented in the Frost & Sullivan Report. Figures and statistics provided in this document and attributed to the Frost & Sullivan have been extracted from the Frost & Sullivan Report and published with the consent of the Frost & Sullivan. In compiling and preparing the Frost & Sullivan Report, the Frost & Sullivan conducted primary research including telephone and face-to-face interviewswithindustryparticipants. Also, secondary research, which involved reviewing industry publications, annual reports and data based on its own database, was conducted. The Frost & Sullivan presented the figures for various market size projections from historical data analysis plotted against macroeconomic data, as well as data with respect to the related industry drivers and integration of expert opinions. The Frost & Sullivan assumed that (i) the social, economic and political environment in China is expected to remain stable in the forecast period, and (ii) key industry drivers are likely to continue to affect the market over the forecast period from 2018 to 2023. – 79 – THIS DOCUMENT IS IN DRAFT FORM, INCOMPLETE AND SUBJECT TO CHANGE AND THAT THE INFORMATION MUST BE READ IN CONJUNCTION WITH THE SECTION HEADED ‘‘WARNING’’ ON THE COVER OF THIS DOCUMENT. INDUSTRY OVERVIEW OVERVIEW OF MACRO ECONOMY IN CHINA Over the past few years, China’s nominal GDP had increased from RMB59.5 trillion to RMB90.0 trillion, representing a CAGR of 8.6%. Meanwhile, China’s nominal GDP per capita grew at a CAGR of 8.3% from RMB43,320 in 2013 to RMB64,644 in 2018. The real GDP in China increased from RMB60.9 trillion in 2013 to RMB84.9 trillion in 2018, representing a CAGR of 6.9%.The table below sets out selected economic statistics of China for the periods indicated. 2013–2018 2013 2014 2015 2016 2017 2018 CAGR (%) Population (million) 1,360.7 1,367.8 1,374.6 1,382.7 1,390.1 1,395.4 0.5 Nominal GDP (RMB trillion) 59.5 64.4 68.9 74.4 82.7 90.0 8.6 Nominal GDP per capita (RMB) 43,320 46,629 49,351 53,980 59,660 64,644 8.3 Real GDP growth rate (%) 7.8 7.3 6.9 6.7 6.9 6.5 7.0* Fixed asset investment (RMB trillion) 44.6 51.2 56.2 60.6 64.1 64.6 7.7 Urbanization rate (%) 53.7 54.8 56.1 57.3 58.5 59.6 56.7* Per capita disposable income of urban residents (RMB) 26,955 29,381 31,195 33,616 36,396 39,251 7.8 Source: National Bureau of Statistics of China, International Monetary Fund, Frost & Sullivan Note: * is the arithmetic mean of 2013 to 2018. OVERVIEW OF MACRO ECONOMY IN THE HEBEI PROVINCE The nominal GDP in Hebei Province increased from RMB2,844.3 billion in 2013 to RMB3,601.0 billion in 2018, representing an CAGR of 4.8%, while the nominal GDP per capita in Hebei Province grew from RMB38,909.0 in 2013 to RMB47,772.0 in 2018, representing a CAGR of 4.2%. Driven by the sustainable developing economy, the per capita disposable income of urban residents in Hebei Province increased from RMB22,227 in 2013 to RMB32,997 in 2018, representing a CAGR of 8.2%. The table below sets out selected economic statistics of Hebei Province for the periods indicated. 2013–2018 2013 2014 2015 2016 2017 2018 CAGR (%) Population (million) 73.3 73.8 74.3 74.7 75.2 75.6 0.6 Nominal GDP (RMB billion) 2,844.3 2,942.1 2,980.6 3,207.0 3,596.4 3,601.0 4.8 Nominal GDP per capita (RMB) 38,909.0 39,984.0 40,225.0 43,062.0 47,827.5 47,772.0 4.2 Fixed asset investment (RMB billion) 2,319.4 2,667.2 2,944.8 3,175.0 3,340.7 3,531.1 8.8 Urbanization rate (%) 48.1 49.3 51.3 53.3 55.0 56.4 52.2* Per capita disposable income of urban residents (RMB) 22,227 24,141 26,152 28,249 30,548 32,997 8.2 Source: National Bureau of Statistics of China, Hebei Provincial Bureau of Statistics, Frost & Sullivan Note: * is the arithmetic mean of the urbanization rate of 2013 to 2018. – 80 – THIS DOCUMENT IS IN DRAFT FORM, INCOMPLETE AND SUBJECT TO CHANGE AND THAT THE INFORMATION MUST BE READ IN CONJUNCTION WITH THE SECTION HEADED ‘‘WARNING’’ ON THE COVER OF THIS DOCUMENT. INDUSTRY OVERVIEW OVERVIEW OF MACRO ECONOMY IN BAODING Zhuozhou is a county-level city in Hebei province, bordering Beijing to the north. It is administered by Baoding prefecture-level city. The nominal GDP in Baoding increased from RMB265.1 billion in 2013 to RMB307.1 billion in 2018, representing a CAGR of 3.0%. In the meantime, the nominal GDP per capita in Baoding grew from RMB25,982.0 in 2013 to RMB32,810.0 in 2018, representing a CAGR of 4.8%. Driven by the development of economy, the per capita disposable income of urban residents in Baoding increased from RMB19,757 in 2013 to RMB30,283 in 2018, representing a CAGR of 8.9%. The table below sets out selected economic statistics of Baoding for the periods indicated. 2013–2018 2013 2014 2015 2016 2017 2018 CAGR (%) Population (million) 10.2 10.3 10.3 10.4 10.5 9.4 -1.7 Nominal GDP (RMB billion) 265.1 275.8 300.0 311.0 322.7 307.1 3.0 Nominal GDP per capita (RMB) 25,982.0 26,873.0 29,067.0 29,945.0 30,891.0 32,810.0 4.8 Fixed asset investment (RMB billion) 200.0 225.1 249.9 267.2 262.6 277.6 6.8 Urbanization rate (%) 42.9 44.2 46.7 49.0 50.9 53.5 47.9* Per capita disposable income of urban residents (RMB) 19,757 21,673 23,663 25,680 27,859 30,283 8.9 Source: Baoding Municipal Bureau of Statistics, Frost & Sullivan Note: * is the arithmetic mean of the urbanization rate of 2013 to 2018. OVERVIEW OF MACRO ECONOMY IN ZHANGJIAKOU The nominal GDP in Zhangjiakou increased from RMB131.7 billion in 2013 to RMB153.7 billion in 2018, representing a CAGR of 3.1%. Meanwhile, the nominal GDP per capita in Zhangjiakou grew from RMB29,907.0 in 2013 to RMB34,661.0 in 2018, representing a CAGR of 3.0%. The per capita disposable income of urban residents in Zhangjiakou increased from RMB20,525 in 2013 to RMB31,193 in 2018, representing a CAGR of 8.7%. The table below sets out selected economic statistics of Zhangjiakou for the periods indicated. 2013–2018 2013 2014 2015 2016 2017 2018 CAGR (%) Population (thousand) 4,413.3 4,420.9 4,421.7 4,425.1 4,433.0 4,434.0 0.1 Nominal GDP (RMB billion) 131.7 135.9 136.4 146.1 155.6 153.7 3.1 Nominal GDP per capita (RMB) 29,907.0 30,756.0 30,840.0 33,030.0 35,123.0 34,661.0 3.0 Fixed asset investment (RMB billion) 129.3 142.3 155.4 163.1 163.9 171.6 5.8 Urbanization rate (%) 49.0 50.5 52.2 54.2 55.9 57.2 53.2* Per capita disposable income of urban residents (RMB) 20,525 21,651 23,841 26,069 28,512 31,193 8.7 Source: Zhangjiakou Municipal Bureau of Statistics, Frost & Sullivan Note: * is the arithmetic mean of the urbanization rate of 2013 to 2018.