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China Merchants Shekou Holdings Co., Ltd. CSR Report 2017 Telephone: 0755-26818600 Address: No. 3 Building of NH E-COOL, No. 6 Xinghua Rd., Shekou, Nanshan District, Shenzhen, Guangdong Province Website: www.cmsk1979.com This report uses environmentally friendly paper printing. Conviction and Enabling Urban Growth Supported by China Merchants Group (CMG), a central state- owned enterprise with total assets valued at over RMB one trillion, China Merchants Shekou Industrila Zone Holdings Ltd.(CMSK), has thrived over the years. Our branches have formed the unique "Port-Park-City"(PPC) development model. With our mission of promoting social progress through commercial success, we endeavor to enhance our social responsibility, lead urban upgrading, and create low- carbon, healthy, green and vibrant urban spaces. We will continue to deepen the development of cities to meet the expectations for a better life. CMSK CSR REPORT Message from Chairman of the Board China Merchants Shekou Industrial Zone Holdings Co., Ltd green ideas and promotes public participation through various (CMSK), a subsidiary of China Merchants Group (CMG), is a flagship means, such as forums and summits, in the pursuit of sustainable company specializing in comprehensive urban development. development that intergrate the economy, environment, and In line with CMG's mission to "promote social progress through society. commercial success", CMSK is committed to being China's leading Caring for employees and growing together. urban and industrial park developer and operator. Bearing in We advocate the mind a strong sense of historical mission and social responsibility, "simple, transparent, efficient, and caring" work environment, CMSK strives to take the lead in opening a new chapter in urban and ensure the rights and interests of employees through a non- development. discriminatory working environment, fair compensation system, Creating a better life for customers. and umimpeded communication channels. At the same time, The 19th National Congress we have developed sound talent strategies, reliable recruitment of the Communist Party of China (the 19th CPC National Congress) methods, smooth career paths, comprehensive training schemes, suggests that the principal contradiction facing Chinese society and innovative assessments and incentives to promote employee has evolved into the contradiction between unbalanced and development. Through diverse cultural activities, we care for the inadequate development and the people's ever-growing needs for lives and health of employees, and build up the sense of company a better life. Thus we adhere to a concept that is truly "customer- belonging, thus encouraging them to grow with the Company. centric", and have improved supporting industry chains covering Promoting harmony and shared development with the society. medical, health, and educational sectors. Our efforts center on three core business systems which include the development A harmonious society, the ideal of humans, is full of vitality and and operation of industrial parks, residential and commercial hope. Over the years, we have taken the social responsibilities that properties, as well as the development and operation of the cruise a central state-owned enterprise (SOE) should exercise, supporting industry, so as to provide customers with intelligent, quality, social welfare projects, and contributing to national development. and comprehensive services, and to contribute to the long-term We have created a better living environment by promoting an prosperity and sustainable development of cities while creating a urban cultural atmosphere. The debut of Shekou Museum of better life for customers. Reform and Opening carries forward the pioneering Shekou Creating value for shareholders and developing with them. spirit which highlights innovation and entrepreneurship; the Sea World Culture and Arts Center is splendid blossoming, offering Against the backdrop of mass entrepreneurship and innovation, visitors a pleasant cultural feast. In addition, we also organized we face challenges, seize opportunities, innovate in development charity activities such as iWalk and "Green Ribbon" to continue to models, and strengthen operational management. We have popularize positive energy. accelerated the construction in Qianhai-Shekou Free Trade Area, and actively responded to national strategies by creating the 2017 marks the 145th anniversary of the establishment Taihu New Town as our support for the integrated development of China Merchants Group. Keeping in mind its missions and of the Beijing-Tianjin-Hebei region. In addition, we closely follow responsibilities, CMSK adheres to the sustainable development the Belt and Road Initiative and strive to expand the international concept that lays equal emphasis on ecological, economic, market. Through continuous and steady operations, we have and social benefits, and continues to shoulder its due social been improving quality and efficiency, providing returns for responsibilities while pursuing its own development. Our excellent shareholders and society. business performance and good social reputation achieved in Pursuing sustainable development and keeping harmony with 2017 were the tribute to the 145th anniversary of CMG. the environment. Sun Chengming The 19th CPC National Congress makes clear Chairman of the Board, China Merchants Shekou Holdings Co., that the natural environment are invaluable national assets, and Ltd. we should realize the harmonious coexistence between human and nature. Correspondingly, we have integrated "green concepts" into corporate management, launched a "163 Actions" working plan for green development, and established a comprehensive green management system. At the same time, we put these concepts into practice by innovating in green technologies and reducing the environmental impacts from the industrialization of urban development. The Company also actively popularize 1 2 CMSK CSR REPORT CONTENTS Responsible 2017 Total assets Business revenue RMB 332.62 billion RMB 75.45 billion Message from Chairman of 30.1% 18.7% Brilliance with Customers the Board .......................... 1 Developing a Diverse Business Mix ......................17 Business coverage ............ Responsible 2017 4 Rendering High-Quality Services ..........................23 46 cities Total tax paid Ensuring Quality and Safety .................................26 The power of quality: 27.78% RMB 14.60 billion ............................ About Us 5 Building a "safe haven" for city dwellers 29.5% .....................27 ................... Company Profile 5 Accumulated investment in the ......... Corporate Governance 6 Prosperity with Shareholders "Customer Care Fund" Number of employees CMSK and Our City ............... 8 RMB 79.8 million 23,242 Sound Business Operation ...................................31 ............ RMB 15 million in 2017 CSR Management 9 Innovative Transformation and Upgrading ........34 5.93% .................... Mutually Beneficial Cooperation .........................37 CSR Philosophy 9 The power of value: Activating long-term rental apartments Area of the green building Total employee training hours Stakeholder ....................... 39 projects completed Communication...................10 969,679.5 hours 1.9042 million square meters 44.29% Material Topics Harmony with the Environment 24.17% Management .......................11 Green Management ...............................................43 Number of suppliers 9,655 Public welfare expenditure Feature: Shekou Green Practice .......................................................44 Model, Leads Urban Co-developing the Green Ecosystem ..................48 RMB 47.508 million ...................... The power of green: Seeking a suitable path to RMB 2.05 billion of strategic Upgrading 13 654.1% the industrialization of construction ..........................49 localized procurement Number of projects with LEED Funds raised through iWalk Growth with Employees Certification campaign 19 projects RMB 560,000 Protecting Employees' Interests and Rights ........53 Outlook 73 ......................... 18.75% Promoting Development of Employees ..............55 CSR Honors Improving Employees' Sense of Happiness ........59 CSR Figures 74 The power of innovating spirit: .................... Mutual growth between CMSK and you .....................61 Third-Party Evaluations 75 Honor Organization ... 2016-2017 China Real Estate Brand Building Chapter of Marketing Committee of China Real Estate Exemplary Enterprise Chamber of Commerce, The Summit of China Real Estate Development with Community GRI 4.0 Content Index 77 ..... Industrial Best Way Swan Award—City Restructuring Star of Organizing Committee of REAM Conference (Best Way recognition the Year Club, Eju Wharton, Wanshang Club) Promoting Urban Development ...........................65 Assurance Statement 79 China Real Estate Business, China Real Estate Business ...... China Real Estate Honor Hall Brands in 25 Years Nurturing Urban Culture ......................................66 School Advocating the Whole Society's About This Report 81 The Most Respected Companies of China 2016-2017 The Economic Observer Engagement in Public Welfare .............................69 .......... The power of compassion: China's Best Employer Award 2017-China's Most Social honors Zhaopin.com Aspiring Employers Let design creativity drive urban development ............ 71 Feedback 82 ....................... Comprehensive Prize of the 14th
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