Annual Report 2020 01 CORPORATE INFORMATION
Total Page:16
File Type:pdf, Size:1020Kb
CORPORATE PROFILE ABOUT SINIC HOLDINGS Sinic Holdings was listed on the Stock Exchange (Stock Code: 2103) on 15 November 2019, which marked an important milestone in the development of the Company. Sinic Holdings is a large-scale and comprehensive property developer focusing on the development of residential and commercial properties. Headquartered in Shanghai, Sinic Holdings has established a leading position among residential property developers in Jiangxi Province, and expanded into the Yangtze River Delta Region, the Greater Bay Region and the Central and Western China Core Cities and Other Regions with High-Growth Potential through ten years’ operations. Sinic Holdings focuses on developing quality properties through comprehensive standardized operating procedures. The Group implemented a series of standardized operating manuals which set forth detailed procedures and requirements for the various stages of the property development process, which have enabled the Group to achieve operating efficiency while maintain its quality standards for properties. Leveraging on its strong brand name, Sinic Holdings will continue its expansion strategies nationwide and strives to become a leading comprehensive real estate developer in China. Sinic Holdings (Group) Company Limited 新力控股(集團)有限公司 i Sinic Holdings (Group) Company Limited CONTENTS i Corporate Profile 02 Corporate Information 04 Milestones 08 Chairman’s Statement 16 Financial Highlights 20 Management Discussion and Analysis 42 Biographies of Directors and Senior Management 50 Business Portfolio and Major Property Projects 63 Land Bank Summary 68 Awards 70 Corporate Governance Report 83 Directors’ Report 98 Independent Auditor’s Report 106 Consolidated Statement of Profit or Loss 107 Consolidated Statement of Comprehensive Income 108 Consolidated Statement of Financial Position 110 Consolidated Statement of Changes in Equity 112 Consolidated Statement of Cash Flows 114 Notes to the Financial Statements 223 Definitions and Glossary 226 Financial Summary Annual Report 2020 01 CORPORATE INFORMATION BOARD OF DIRECTORS NOMINATION COMMITTEE Executive Directors Mr. Zhang Yuanlin (Chairman) Mr. Tam Chi Choi Mr. Zhang Yuanlin (Chairman) Mr. Au Yeung Po Fung Ms. Tu Jing Mr. Liu Xin Mr. She Runting (resigned on 26 May 2020) Mr. Chen Kai (resigned on 1 October 2020) COMPANY SECRETARY Independent non-executive Directors Mr. Yim Lok Kwan (ACG, ACS) Mr. Tam Chi Choi Mr. Au Yeung Po Fung AUTHORIZED REPRESENTATIVES Mr. Liu Xin Mr. Zhang Yuanlin Mr. Yim Lok Kwan (ACG, ACS) AUDIT COMMITTEE Mr. Tam Chi Choi (Chairman) AUDITOR Mr. Au Yeung Po Fung Ernst & Young Mr. Liu Xin Certified Public Accountants Registered Public Interest Entity Auditor REMUNERATION COMMITTEE 22/F, CITIC Tower 1 Tim Mei Avenue Mr. Au Yeung Po Fung (Chairman) Central, Hong Kong Mr. Zhang Yuanlin Mr. Tam Chi Choi COMPLIANCE ADVISOR Mr. Liu Xin Zhongtai International Capital Limited 02 Sinic Holdings (Group) Company Limited CORPORATE INFORMATION LEGAL ADVISER CAYMAN ISLANDS PRINCIPAL SHARE REGISTRAR AND TRANSFER OFFICE Sidley Austin Conyers Trust Company (Cayman) Limited Cricket Square, Hutchins Drive REGISTERED OFFICE P.O. Box 2681 Grand Cayman, KY1-1111 Cricket Square, Hutchins Drive Cayman Islands P.O. Box 2681 Grand Cayman, KY1-1111 HONG KONG SHARE REGISTRAR Cayman Islands Computershare Hong Kong Investor Services Limited Shops 1712–1716, 17th Floor HEAD OFFICE IN THE PRC Hopewell Centre 183 Queen’s Road East 7th Floor, HongQiao Vanke Center T6 Wanchai, Hong Kong No. 988 ShenChang Road MinHang District PRINCIPAL BANKS Shanghai, China China Minsheng Bank China CITIC Bank Ping An Bank PRINCIPAL PLACE OF BUSINESS IN CMB Wing Lung Bank HONG KONG Bank of China (Hong Kong) China Construction Bank (Asia) Suites 1016-1019, 10/F Hang Seng Bank Two Pacific Place, 88 Queensway Admiralty, Hong Kong WEBSITE www.sinicdc.com STOCK CODE 2103 Annual Report 2020 03 MILESTONES 2010 2011 2012 2013 2014 2015 • Jiangxi Sinic • Won the auction • Developed the • Launched three • Built competitive • Ranked top three Properties was of a parcel of land first residential residential strengths in three among the established and located at the property project, property series, key business property acquired its first core of Nanchang Nanchang Dibo namely the “Yue”, segments, namely developers in land parcel in City Wan, in “Yuan” and “Wan” residential Jiangxi in terms of Nanchang, Jiangxi Nanchang series properties, sales GFA by Province • Developed the commercial integrating 15 first commercial properties and property projects property project, services Nanchang Sinic Center 04 Sinic Holdings (Group) Company Limited 2016 2017 2018 2019 2020 • Expanded into Suzhou • Relocated corporate • Recognized as one of • Listed on the Stock • Included as a and Huizhou to headquarters to the “2018 China’s Top Exchange on constituent of the Hang consolidate the Shanghai 50 Real Estate 15 November, 2019 Seng Composite Index, Company’s presence • Recognized as one of Developers” by China (Stock code: 2103) Hang Seng Stock across the Yangtze the “2017 China’s Top Real Estate Industry • Recognized as one of Connect Hong Kong River Delta Region, the 100 Real Estate Association, Shanghai the “2019 China’s Top Index Greater Bay Region Developers” by China Yiju Real Estate 50 Real Estate • 5S Residential Zone and the Central and Real Estate Industry Research Institution Developers” Strategy Western China Core Association, Shanghai and China Real Estate • Received the “2019 • Ranked 35th, 32nd Cities and Other Yiju Real Estate Appraisal China’s Top 100 Real and 34th respectively Regions with High- Research Institution • “2018 China’s Top 100 Estate Developers in 2020 among the Growth Potential and China Real Estate Real Estate Developers — Growth Top 10” and property developers • Nanchang Sinic Center Appraisal — Growth Top 10” “China Characteristic in the PRC in terms received the 2015 Best • Ranked top 50 among • China Characteristic Properties Outstanding of total sales amount Office Building Award the property developers Properties Outstanding Operation Enterprises according to CRIC, granted by the National in the PRC Operation Enterprises — Ecological China Index Academy Real Estate Commercial — Ecological Properties” awards and EH Consulting Association and Jiangxi Properties” • Launched Sinic 4.0 respectively Real Estate Association products • Ranked among “Top 30 Chinese Real Estate Enterprises” • 2020 China’s Top 100 Real Estate Companies — Top 10 Growth Companies • Established a Green, Social, Sustainability Financing Framework Annual Report 2020 05 uplifting our design strive for the best Taking “art, diversity, openness and compatibility” as the overall space design concept, emphasizing the internationalized forefront design of space art aesthetics, combining landscape scenes and building blocks, creating a smart curved space aesthetics and telling the poetry of space. uplifting our design strive for the best Taking “art, diversity, openness and compatibility” as the overall space design concept, emphasizing the internationalized forefront design of space art aesthetics, combining landscape scenes and building blocks, creating a smart curved space aesthetics and telling the poetry of space. CHAIRMAN’S uplifting our design STATEMENT strive for the best On behalf of the Board, I am pleased to present to the BUSINESS REVIEW shareholders the annual results, business review and outlook of the Group for the year ended 31 December Overall Property Market Development 2020 (the “Year”). Outlook 2020 was an extraordinary year for everyone. Along RESULTS OF 2020 with the outbreak of 2019 coronavirus disease (“COVID-19”), trade frictions and the pushing of the multilateral political and economic landscape, 2020 was For the Year, the Group recorded revenue of destined to be an extraordinary year in history. The approximately RMB28,069.0 million, representing a outbreak of COVID-19 had a wide impact on China’s year-on-year increase of approximately 4.0% as compared with the previous year (2019: RMB26,984.9 million). Gross profit amounted to approximately RMB6,859.6 million, representing a year-on-year decrease of approximately 14.2% as compared with the previous year (2019: RMB7,998.5 million). Profit for the year was approximately RMB2,038.5 million, representing a year-on-year increase of RMB24.2 million or 1.2% (2019: RMB2,014.3 million). The core guangzhou profit attributable to the Shareholders was approximately RMB1,868.2 million, representing a year- hai shi zhou yue on-year increase of 0.8% as compared with the previous year. The basic earnings per Share of the Group was RMB0.55. Nanchang — Heyue Binjiang 08 Sinic Holdings (Group) Company Limited CHAIRMAN’S STATEMENT macro economy, production and operation of various industries and daily life. The real estate industry became one of the most affected sectors. However, the epidemic also gave rise to new opportunities, and the online sale of properties became exceptionally hot. The Company actively adopted a strategy to cope with the situation and opened a cloud sales model to strengthen its capability for reducing inventory. At the same time, the Company is committed to further improving its management and development model through “Real estate + Internet”. 2020 is the 10th anniversary of the founding of Sinic, Nanchang – Sinic City and also the first anniversary since its listing. After ten years’ hard-working, we get to a new height. The over 90% of medium-high turnover projects developed decade from 2010 to