FRANSHION PROPERTIES (CHINA) LIMITED 方 興 地 產( 中 國 )有 限 公 司 (Incorporated in Hong Kong with Limited Liability) (Stock Code: 00817)
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Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement. FRANSHION PROPERTIES (CHINA) LIMITED 方 興 地 產( 中 國 )有 限 公 司 (Incorporated in Hong Kong with limited liability) (Stock Code: 00817) ANNOUNCEMENT OF RESULTS FOR THE YEAR ENDED 31 DECEMBER 2012 The board of directors (the “Board”) of Franshion Properties (China) Limited (the “Company”) is pleased to announce the audited results of the Company and its subsidiaries for the year ended 31 December 2012. This announcement, containing the full text of the 2012 Annual Report of the Company, complies with the relevant requirements of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the “Listing Rules”) in relation to information to accompany preliminary announcements of the annual results. Printed version of the Company’s 2012 Annual Report will be sent to the shareholders of the Company and available for viewing on the HKExnews’ website at www.hkexnews.hk and the Company’s website at http://www.franshion.com on 8 April 2013. The Board wishes to inform the shareholders of the Company that the Company will give notice of the closure of its register of members in relation to the final dividend once the date of the annual general meeting of the Company is determined. Such notice will be given at least ten business days before the closure pursuant to Rule 13.66(1) of the Listing Rules. Franshion Properties (China) Limited Annual Report 2012 Contents 4 Major Events 149 Consolidated Income 6 Corporate Information Statement 150 Consolidated Statement of 7 Financial Highlights Comprehensive Income 8 Chairman’s Statement 151 Consolidated Statement of 12 Honours and Awards Financial Position 14 Management Discussion 153 Consolidated Statement of and Analysis Changes in Equity 95 Investor Relations Report 155 Consolidated Statement of 98 Corporate Social Cash Flows Responsibility Report 157 Statement of Financial 104 Profile of Directors and Position Senior Management 158 Notes to Financial 110 Corporate Governance Statements Report 240 Five-Year Financial 123 Report of the Directors Information 148 Independent Auditors’ Report Franshion Properties (China) Limited Annual Report 2012 Company Overview Property Property Hotel Development Leasing Operations Franshion Properties Business Segment Franshion Properties (China) Limited (Stock code: a number of landmark projects in many cities such as 00817) is a developer and operator of large-scale and Shanghai Jin Mao Tower, Beijing Chemsunny World high-end commercial real estate projects in the PRC, Trade Centre and Nanjing International Center. It has and also a platform enterprise under the real estate and also invested in a number of five-star luxury hotels. hotel segments of Sinochem Group, one of the top 500 Through successful development and operation of a series world’s enterprises (ranking the 113rd among the top of prime quality projects, the Company has gained a 500 world’s enterprises in 2012 by “Fortune”). Sinochem significant foothold in the real estate industry in China. Group is one of the state-owned enterprises that are Leveraging on its unique growth pattern, experienced approved by the State-owned Assets Supervision and management team and the strong backing from its parent Administration Commission to engage principally in company, Sinochem Group, the Group can capitalise on property development and hotel operations. On 17 tremendous opportunities arising from the fast-growing August 2007, the Company was listed on the Main Board PRC real estate industry and win more opportunities in of The Stock Exchange of Hong Kong Limited. It is now the acquisition and integration of resources. one of the component stocks of the Hong Kong Hang Seng Composite Index. The Group strives to position itself at the high-end of the market and specialises in the development of high quality The Group emphasises on the growth opportunities projects with its focus on both properties holding and at the prime locations in the core cities in China and development, and endeavours to become a leading high- has established a synergistic development pattern end real estate developer and operator in China through for its three major business segments, namely high- refining and optimising the structure in the course of end property project development, property leasing development, as well as capitalising on its comparative and hotel investment and operations. The Company advantages of integration, system innovation and size has developed several top quality real estate projects growth. in Beijing, Shanghai, Sanya and Changsha, and has 2 Company Overview Property Property Hotel Development Leasing Operations Twenty property development Four high-end investment Seven luxury hotels offering projects and three primary property projects with a 3,106 guest rooms land development projects total gross floor area of with a total gross floor approximately 510,000 square area of approximately 5.90 metres million square metres and approximately 8.97 million square metres respectively Strong Stable Industry Performance Income Leader During the period, sales results High rental level and high Remarkable performance of property development occupancy rate of investment of hotel operations, projects were good and land properties, outperforming its outperforming its peers reserve was expanded with peers the successful acquisitions in Changsha, Suzhou, Shanghai and Lijiang 3 Franshion Properties (China) Limited Annual Report 2012 Major Events 1 January 2012 • Franshion Properties successfully acquired the 200-mu land parcel at the prime location in the ancient town of Lijiang. 1 3 March 2012 • Franshion Properties participated in the 8th International Conference on Green and Energy-Efficient Buildings (第八屆 國際綠色建築與建築節能大會), and successfully hosted the sub-forum of the “China Green Eco-City Planning, Design, Construction and Operation Seminar”. 3 4 April 2012 • Beijing Guangqu Jin Mao Palace Project Phase III commenced sales. 4 6 June 2012 • Franshion Properties successfully won the bidding of the land development right to Meixi Lake International Plaza Project. 6 7 July 2012 • Franshion Properties acquired the land development right to Changsha Meixi Lake International R&D Centre Project. 7 4 Major Events 9 September 2012 • Qingdao Jin Mao Bay Project Phase I commenced sales. 9 10 October 2012 • Franshion Properties successfully issued US$500 million 5-year notes at the interest rate of 4.7% per annum, fixing the cost at a low level. • Beijing Asian Olympics Jin Mao Yue Project and Jin Mao Meixi Lake Project Phase I commenced sales. 10 11 November 2012 • Franshion Properties participated in the preparation of the National Green Building Standards (國家綠色建築標準), and promoted the setting up of China Green Hotel Study Group (中 國綠色酒店學組) and the preparation of China’s first volume of green low-carbon teaching materials. 11 12 December 2012 • Beijing Wangjing Jin Mao Palace Project and Chongqing Jin Mao Long Yue Project Phase I commenced sales. • Franshion Properties acquired the land development right to Suzhou Jinmen Road Project. • Franshion Properties and Shanghai International Port (Group) Co., Ltd. (“SIPG’) jointly acquired the land development right to Shanghai Haimen Road Project. 12 • Franshion Properties and Hainan LongHigh Industrial Group Company Limited (“LongHigh Group”) cooperated to acquire the primary development right to the 1,500-mu land parcel in Yazhou Bay, Sanya City. 2013 • Franshion Properties acquired the land development right to Beijing Economic and Technological Development Area Land Parcels X85 and X88 Project. • Franshion Properties successfully acquired Nanjing 2013 International Center Project. 5 Hotel Operations Projects The Ritz-Carlton, Sanya Hilton Sanya Resort & Spa Grand Hyatt Shanghai The Ritz-Carlton, Sanya is located in Yalong Bay The Hilton Sanya Resort & Spa is located in Grand Hyatt Shanghai is located on the 53rd to scenic resort of Sanya, Hainan province. It was Yalong Bay scenic resort of Sanya, Hainan province. 87th floors of Jin Mao Tower. It was officially officially opened in 2008 with a total gross floor Opened in 2006 and with a total gross floor area of opened in 1999, with a total gross floor area of area of approximately 83,000 sq. m. It has 450 approximately 76,666 sq. m., it has 501 guest rooms, approximately 80,410 sq. m. comprising 555 luxury luxurious guest rooms equipped with a variety of suites, villas and a 400 metres long, white and fine guest rooms. It comprises a grand ball room which facilities, including 21 luxury suites and 33 villas beach. The hotel has 6 restaurants with distinctive can accommodate 1,200 guests, a ball room which with distinctive amenities such as housekeepers and characteristics and a conference centre of 3,000 sq. m. can accommodate 800 guests and more than private swimming pools. It has an indoor conference 10 function rooms. It was the venue for major space of 1,700 sq. m. specially designated for international events such as “Fortune Global business conference, large seminar and other special Forum”, “APEC Conference” and other high- occasions, and it has the only outdoor sea-view profile forums and conferences. wedding auditorium in China, and the Ritz-Carlton spa with an area of 2,788 sq. m. Westin Beijing, Chaoyang JW Marriott Shenzhen Westin Nanjing Westin Beijing, Chaoyang is located in the Yansha JW Marriott Shenzhen is located in Futian District, Located on the 23rd to 35th floors of the South commercial area of Chaoyang District, Beijing, and Shenzhen, and was opened in 2009. It has a gross Tower in Nanjing International Center, Westin is adjacent to the embassy district. It was officially floor area of approximately 52,000 sq. m., with 411 Nanjing has a total gross floor area of approximately opened in 2008, with a total gross floor area of guest rooms, a ball room which can accommodate 32,514 sq.