From the Land of Henan, for the People of China. Corporate Profile CONTENTS
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2016 Annual Report From the land of Henan, for the people of China. Corporate Profile CONTENTS Corporate Information 2 Independent Auditor’s Report 83 Corporate Profile 4 Consolidated Income Statement 89 Chairman’s Statement 9 Consolidated Statement Of Financial Highlights 13 Comprehensive Income 90 Management Discussion And Analysis 14 Consolidated Statement Of Financial Position 91 I. Financial Review 15 Consolidated Statement Of Changes Ii. Review of Operations 20 In Equity 93 Iii. Business Outlook 35 Consolidated Cash Flow Statement 95 Investor Relations Report 42 Notes To The Financial Statements 98 Environmental, Social and Governance Report 45 Summary Of Financial Information 199 Corporate Governance Report 52 Profile Of Directors And Senior Management 65 Directors’ Report 70 Zhengzhou Jiuru House 01 Central China Real Estate Limited Corporate Information BOARD OF DIRECTORS COMPANY SECRETARY Executive Directors Mr. Kwok Pak Shing Mr. Wu Po Sum (Chairman) Mr. Liu Weixing (appointed on 24 March 2017) REGISTERED OFFICE Ms. Yan Yingchun Cricket Square Hutchins Drive Non-executive Directors P.O. Box 2681 Mr. Lucas Ignatius Loh Jen Yuh (Vice-chairman) Grand Cayman Mr. Puah Tze Shyang KY1-1111 Ms. Wu Wallis (alias Li Hua) Cayman Islands Independent Non-executive Directors PRINCIPAL PLACE OF BUSINESS IN THE PRC Mr. Cheung Shek Lun Block E, Jianye Office Building Mr. Xin Luo Lin Nongye East Road, Zhengzhou City Mr. Muk Kin Yau Henan Province, the PRC BOARD COMMITTEES PRINCIPAL PLACE OF BUSINESS Audit Committee IN HONG KONG Mr. Cheung Shek Lun (Chairman) Room 7701B-7702A Mr. Xin Luo Lin 77th Floor, International Commerce Centre Mr. Lucas Ignatius Loh Jen Yuh 1 Austin Road West Kowloon, Hong Kong Remuneration Committee Mr. Xin Luo Lin (Chairman) PRINCIPAL SHARE REGISTRAR Mr. Wu Po Sum AND TRANSFER OFFICE Mr. Cheung Shek Lun Royal Bank of Canada Trust Company (Cayman) Limited 4th Floor, Royal Bank House, Nomination Committee 24 Shedden Road, George Town, Mr. Wu Po Sum (Chairman) Grand Cayman KY1-1110, Cayman Islands Mr. Cheung Shek Lun Mr. Xin Luo Lin HONG KONG BRANCH SHARE REGISTRAR AND TRANSFER OFFICE CHIEF EXECUTIVE OFFICER Computershare Hong Kong Investor Services Limited Mr. Chen Jianye (resigned on 24 March 2017) Shops 1712–1716 Mr. Yuan Xujun (appointed on 24 March 2017) 17th Floor, Hopewell Centre 183 Queen’s Road East, Wanchai, Hong Kong 02 Central China Real Estate Limited Corporate Information (Continued) PRINCIPAL BANKERS SHAREHOLDERS’ INFORMATION Bank of China (Hong Kong) Limited Share listing China Construction Bank Corporation The company’s shares are listed on the Main Board of Industrial and Commercial Bank of China (Asia) Limited The Stock Exchange of Hong Kong limited LEGAL ADVISERS Ordinary Shares (as at 31 December 2016) As to Hong Kong Law Shares outstanding : 2,442,270,760 shares Li & Partners Nominal value : HK$0.10 per share As to Cayman Islands Law INVESTOR RELATIONS CONTACT Conyers Dill & Pearman (Cayman) Limited Email address : [email protected] INDEPENDENT AUDITORS HEAD OF INVESTOR RELATIONS & KPMG CHIEF INVESTMENT OFFICER Certified Public Accountants Mr. Mai Vinh WEBSITE OF THE COMPANY www.centralchina.com FINANCIAL CALENDAR 2016 annual results announcement : 24 March 2017 Book closure period (for determining shareholders’ : 17 May 2017 to 19 May 2017 (both days inclusive) eligibility to attend and vote at the annual general meeting (the “2017 AGM”)) 2017 AGM : 19 May 2017 2016 Annual Report 03 CorporateCorporate Profile ProFile Zhengzhou Triumph Plaza 04 Central China Real Estate Limited Corporate Profile Central China Real Estate Limited (hereinafter referred to as Meanwhile, the Company endeavours to construct a “tailor- “CCRE” or the “Company”, together with its subsidiaries made” mega service regime by integrating internal and hereinafter referred to as the “Group”) was incorporated in external resources, such as property, hotel, commerce, the Cayman Islands on 15 November 2007 as an exempt green house and other services, with a view to activating company with limited liability, the shares of which were the “New Blue Ocean Strategy” and transforming the listed on the Main Board of The Stock Exchange of Hong Company from an urban complex developer to a new Kong Limited (the “Stock Exchange”) on 6 June 2008. The lifestyle services provider for urban residents. Group has been granted the “First Class Honor of Real Estate Developer” in the People’s Republic of China (the The Company is firmly committed to its philosophy of “PRC” or “China”). “providing customers with zero-defect products and first- rated services”. In addition, we apply concepts of scientific The Company has been committed to the development of decision-making, management standardisation and branded properties as its principal activity since its operation professionalisation in our business management establishment. Over 24 years, we have continued to guide to ensure the quality of our products and services. residents to new exposures in lifestyle through our articulately crafted architectural masterpieces in honour of In its persistent professional pursuit of premium residential our core value of “Taking Root in Central China and housing development over the past 24 years, the Company Contributing to Society.” The Company is of the view that has fostered a “CCRE model” focused on provincial and enterprises relate to society in the same way as trees relate regional development, created a brand name well trusted to the earth. When we establish our presence in a city, we for social responsibility, groomed a high calibre cooperate with our local peer developers to contribute to management team, given substance to the corporate the local community by improving the standards of philosophy of “perseverance for excellence” and embarked construction, increasing tax collections for local on a development cycle of “ongoing profitability and stable governments and creating job opportunities. Our relentless growth”. efforts in driving the urbanisation process and promoting the economic and social growth in Henan Province have won the accolades of government authorities, professionals, peers, investors, customers and our employees. The Company positions itself as a facilitator of urbanisation and all-round social progress for Henan Province. Having taken root in Henan Province for 24 years, we are resolute as ever in our vision and mission of “building quality houses for the people of Henan”. With the development of housing complexes such as “Forest Peninsula”, “U-Town”, “Code One City”, “Sweet-Scented Osmanthus Garden”, “Jianye Eighteen Cities” and “New Asia”, we have improved the standard of residential housing in various cities in the Henan Province. In addition, the launch of light-asset model of the Company has secured synergetic effect with its property development business, making important contributions to the urbanisation process of the province. Kaifeng Dongjingmenghua 2016 Annual Report 05 Corporate Profile (Continued) As of now, the Company has established its presence in Developers in Regional Operations” for eight consecutive Henan Province’s 18 prefecture-level cities and 33 county- years in a row and continued to be ranked in “Top 5 PRC level cities. As at 31 December 2016, the Company had Listed Property Companies in Operations Performance”. completed development projects with an accumulated According to the Evaluation and Research Report on the aggregate gross floor area (“GFA”) of approximately 18.75 Listed Real Estate Companies in the PRC in 2016 published million square metres (“sq.m.”) and owned 54 projects/ on 26 May 2016, the Company ranked 26th on the “China phases, total GFA under development of approximately 6.02 Real Estate Listed Company Ranking List” and ranked 4th million sq.m. and land reserves GFA of approximately 20.92 among the listed property companies in China in terms of million sq.m., including beneficially interested GFA of operations performance. On 13 July 2016, the Company approximately 17.44 million sq.m.. During the reporting remained in “the China’s Top 500 Enterprises 2016” by period, GFA measured approximately 3.32 million sq.m. for Fortune Magazine Chinese version, ranking up by 73 newly commenced projects and approximately 2.76 million positions to the 398th and the only property developer sq.m. for contracted sales. enterprise in Henan province which has made it to the list. In line with its corporate culture underpinned by “honesty, Turning dreams into reality, golden age coming along. The responsibility, integrity and focus”, a state of business Company adheres to its corporate philosophy of featuring a high level of integration between “economic and “Perseverance for Excellence” and its core value of “Taking social benefits, material and spiritual pursuits, corporate Root in Central China and Contributing to Society”. The and staff interests, strategic objectives and execution Company remains committed to making contributions to process” is coming into shape. the development of the real estate industry and the private economic sector, as well as the strengthening of the nation The Company ranked 28th in the “2016 Top 500 Chinese and the prosperity of the country. Property Developers” in the “2016 Assessment Report on Top 500 Chinese Property Developers” published on 22 March 2016 and topped the list of “Top 10 Chinese Property 06 Central China Real Estate Limited Corporate Profile (Continued) PROJECTS OVERVIEW As at 31 December 2016, the Company had 128 projects completed and under development, covering Henan Province’s 18 prefecture-level cities and 33 county-level cities. Zhengzhou 38. Golf Garden Jiaozuo Shangqiu 1. Blossom Garden 39. Huayang Fengdu 67. Code One City 100. Eighteen Cities 2. Champagne Garden 40. Huayang Square 68. Forest Peninsula 101. Forest Peninsula 3. City Garden 41. Poly Champagne International 69. Park Lane 102. Green Garden 4. Code International Garden 42. Sweet-Scented Osmanthus 70. Xiuwu Forest Peninsula 103. Sweet-Scented Osmanthus 5. Code One City Garden Garden 6. Code Two City 43. Triumph Plaza Puyang 104. U-Town 7. Forest Peninsula 44. Wisdom Port 71. City Garden 105. Yongchen U-Town 8. Gongyi Code One City 45.