Annual Report 2018 CONTENTS

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Annual Report 2018 CONTENTS (Incorporated in the Cayman Islands with limited liability) Stock Code: 0832.HK Annual Report 2018 CONTENTS CONTENTS 2 Corporate Information 4 Corporate Profile 8 Chairman’s Statement 13 Financial Highlights 14 Management Discussion and Analysis 15 I. Financial Review 21 II. Review of Operations 56 III. Business Outlook 64 Investor Relations Report 67 Environmental, Social and Governance Report 84 Corporate Governance Report 98 Profile of Directors and Senior Management 104 Directors’ Report 124 Independent Auditor’s Report 132 Consolidated Income Statement 133 Consolidated Statement of Comprehensive Income 134 Consolidated Statement of Financial Position 136 Consolidated Statement of Changes in Equity 138 Consolidated Cash Flow Statement 141 Notes to the Financial Statements 283 Summary of Financial Information Corporate Information Corporate Information BOARD OF DIRECTORS COMPANY SECRETARY Executive Directors Mr. Yeung Wai Leung Mr. Wu Po Sum (Chairman) Mr. Liu Weixing REGISTERED OFFICE Ms. Yan Yingchun (resigned on 21 August 2018) Cricket Square Mr. Wang Jun (appointed on 21 August 2018) Hutchins Drive P.O. Box 2681 Non-executive Directors Grand Cayman Mr. Lucas Ignatius Loh Jen Yuh (Vice-chairman) KY1-1111 Mr. Puah Tze Shyang Cayman Islands Ms. Wu Wallis (alias Li Hua) PRINCIPAL PLACE OF BUSINESS IN THE PRC Independent Non-executive Directors Block E, Jianye Office Building Mr. Cheung Shek Lun Nongye East Road, Zhengzhou City Mr. Xin Luo Lin Henan Province, the PRC Dr. Sun Yuyang (appointed on 8 January 2018) PRINCIPAL PLACE OF BUSINESS BOARD COMMITTEES IN HONG KONG Audit Committee Room 7701B-7702A Mr. Cheung Shek Lun (Chairman) 77th Floor, International Commerce Centre Mr. Xin Luo Lin 1 Austin Road West Mr. Lucas Ignatius Loh Jen Yuh Kowloon, Hong Kong Remuneration Committee PRINCIPAL SHARE REGISTRAR Mr. Xin Luo Lin (Chairman) AND TRANSFER OFFICE Mr. Wu Po Sum SMP Partners (Cayman) Limited Mr. Cheung Shek Lun 3rd Floor, Royal Bank House, 24 Shedden Road, P.O. Box 1586, Nomination Committee Grand Cayman, KY1-1110, Cayman Islands Mr. Wu Po Sum (Chairman) Mr. Cheung Shek Lun HONG KONG BRANCH SHARE REGISTRAR Mr. Xin Luo Lin AND TRANSFER OFFICE Computershare Hong Kong Investor Services Limited CHIEF EXECUTIVE OFFICER Shops 1712–1716 Mr. Yuan Xujun 17th Floor, Hopewell Centre 183 Queen’s Road East, Wanchai, Hong Kong Central China Real Estate Limited 2 Annual Report 2018 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 2018) As to Hong Kong Law Shares outstanding : 2,731,262,560 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 & CHIEF KPMG INVESTMENT OFFICER Certified Public Accountants Mr. Mai Vinh WEBSITE OF THE COMPANY www.jianye.com.cn FINANCIAL CALENDAR 2018 annual results announcement : 27 March 2019 Book closure period (for determining shareholders’ : 25 April 2019 to 30 April 2019 (both days inclusive) eligibility to attend and vote at the annual general meeting (the “2019 AGM”)) 2019 AGM : 30 April 2019 Central China Real Estate Limited Annual Report 2018 3 Corporate Profile Corporate Profile Corporate Profile Central China Real Estate Limited (hereinafter referred to a view to activating the “New Blue Ocean Strategy” and as “CCRE” or the “Company”, together with its subsidiaries transforming the Company from an urban complex developer hereinafter referred to as the “Group”, stock code: 832.HK) was to a new lifestyle services provider for urban residents. incorporated in the Cayman Islands on 15 November 2007 as an exempt company with limited liability, the shares of which The Company is firmly committed to its philosophy of were listed on the Main Board of The Stock Exchange of Hong “providing customers with zero-defect products and first- Kong Limited (the “Stock Exchange”) on 6 June 2008. The rated services”. In addition, we apply concepts of scientific Group has been granted the “First Class Honor of Real Estate decision-making, management standardisation and operation Developer” in the People’s Republic of China (the “PRC” or professionalisation in our business management to ensure the “China”). quality of our products and services. The Company has been committed to the real estate main In its persistent professional pursuit of premium residential business and the development of branded properties as its housing development over the past 26 years, the Company has principal activity since its establishment. Over 26 years, we fostered a “CCRE model” focused on provincial and regional have continued to guide residents to new exposures in lifestyle development, created a brand name well trusted for social through our articulately crafted architectural masterpieces responsibility, groomed a high calibre management team, given in honour of our core value of “Taking Root in Central China substance to the corporate philosophy of “Perseverance for and Contributing to Society.” The Company is of the view Excellence” and embarked on a development cycle of “ongoing that enterprises relate to society in the same way as trees profitability and stable growth”. relate to the earth. When we establish our presence in a city, we cooperate with our local peer developers to contribute As at 31 December 2018, the Company has established its to the local community by improving the standards of presence in Henan Province’s 18 prefecture-level cities and 77 construction, increasing tax collections for local governments county-level cities. The Company had delivered development and creating job opportunities. Our relentless efforts in driving projects with an accumulated aggregate gross floor area the urbanisation process and promoting the economic and (“GFA”) of approximately 30.06 million square metres (“sq.m.”) social growth in Henan Province have won the accolades and owned 118 projects under development, total GFA under of government authorities, professionals, peers, investors, development of approximately 21.72 million sq.m. and land customers and our employees. reserves GFA of approximately 46.08 million sq.m., including beneficially interested GFA of approximately 34.66 million The Company positions itself as a facilitator of urbanisation and sq.m.. all-round social progress for the region of central China. Having taken root in Henan Province for 26 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. Meanwhile, the Company endeavours to construct a “tailor-made” mega service regime by integrating internal and external resources, such as property, education, hotel, football, commerce and green house, with Jianye Foodcourt Central China Real Estate Limited Annual Report 2018 5 Corporate Profile (Continued) PROJECTS OVERVIEW Zhengzhou 74 Wisdom Port 146 Chinoiserie House 196 Luyi Mingdao City 1 Seven Land Parcels at Baisha 75 Honour Mansion 147 Code One City 197 Fugou Jianye New City 2 Blossom Garden 76 Technology City 148 Yuzhou Sweet-Scented 198 Xihua Central Garden 3 Zhengxi U-Town 77 Longcheng Dongwang Osmanthus Garden 199 Xihua Jicheng Courtyard 4 Zhengxi Forest Peninsula 78 Binhelong House 149 Yuzhou Jundu New World 200 Xihua Jianye City 5 Jianye Fuli-Wulong Century New 79 Yanshi Forest Peninsula 150 Changge Spring Time 201 Shenqiu Jianye City City 80 Mengjin Dachengxiaoyuan 151 Changge Sweet-Scented 202 Huaiyang Sweet-Scented 6 Spring Time 81 Forest Peninsula Osmanthus Garden Osmanthus Garden 7 Triumph Plaza 82 Gentlest Lake 152 Changge Forest Eco-City 203 Huaiyang Jianye City 8 Sky Mansion 83 Code One City 153 Changge Sweet-Scented 204 CCRE Mall Project (project name 9 Yingtaogou Project (project 84 Huayang Square Osmanthus Garden New City to be confirmed) name to be confirmed) 85 Jianye Poly-Champagne 154 Land allocated to Yanling Green 205 Shangshui Yangcheng Courtyard 10 Canal Courtyard International House 206 Jianye City North Courtyard 11 Wisdom Port 86 Triumph Plaza 155 Yanling Eco-City 207 Taikang Eco-City 12 Jianye Tihome-International City 87 Zuoan International 156 Palladio Luxurious House 208 Taikang Xingfuli 13 Jianye Haima-Jiuru House 88 Longcheng 157 Forest Peninsula 209 Taikang Jianye City 14 Jianye Chengyuan (Movie Town) Pingdingshan Luohe Zhumadian 15 Jianye Art Mansion (Unique in 89 Spring Time 158 Sweet-Scented Osmanthus 210 The West Lake Villa Henan) 90 Sweet-Scented Osmanthus Garden 211 Eighteen Cities 16 Movie Town Garden 159 Xicheng Forest Peninsula 212 Spring Time 17 Unique in Henan 91 Eighteen Cities 160 Code One City 213 Xincai CCRE Mall 18 Jianye J18 (Anyong, Ansheng) 92 Ruzhou Sweet-Scented 161 Linying Sweet-Scented 214 Xiping Forest Peninsula 19 Financial Island Osmanthus Garden Osmanthus
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