Annual Report 2013 3

Contents Board of Directors and Committees 2 Financial Information Corporate Information 3 Report of Directors 109 Shareholders’ Information and Financial 4 Connected, Continuing Connected and 118 Calendar Related Party Transactions Corporate Structure 5 Independent Auditor’s Report 128 Financial Highlights 6 Consolidated Income Statement 130 Consolidated Statement of 131 Group Financial Summary 8 Comprehensive Income Business Milestones 9 Consolidated Statement of 132 Chairman’s Statement 13 Financial Position Management Discussion and Analysis Company Statement of 134 Overall Performance 26 Financial Position Land Reserves 30 Consolidated Statement of 135 Changes in Equity Property Development 36 Consolidated Statement of Cash Flows 136 Property Investment 52 Notes to the Financial Statements 138 Other Operations 58 Customer Service and Relationships 62 Five Year Financial Summary 219 Group Finance 65 Directors and Organization 70 Corporate Citizenship 83 Accolades & Awards 2013 90 Investor Relations 94 Corporate Governance Report 96 2 China Overseas Land & Investment Ltd. Board of Directors and Committees CHAIRMAN AUDIT COMMITTEE Hao Jian Min Chairman and Chief Executive Officer Li Man Bun, Brian David* Lam Kwong Siu Wong Ying Ho, Kennedy EXECUTIVE DIRECTORS Fan Hsu Lai Tai, Rita Xiao Xiao Vice Chairman Chen Yi REMUNERATION COMMITTEE Luo Liang Nip Yun Wing Wong Ying Ho, Kennedy* Guo Yong Lam Kwong Siu Kan Hongbo Fan Hsu Lai Tai, Rita Li Man Bun, Brian David NON-EXECUTIVE DIRECTOR NOMINATION COMMITTEE Zheng Xuexuan Fan Hsu Lai Tai, Rita* Lam Kwong Siu INDEPENDENT NON-EXECUTIVE Wong Ying Ho, Kennedy DIRECTORS Li Man Bun, Brian David Lam Kwong Siu * Committee Chairman Wong Ying Ho, Kennedy Fan Hsu Lai Tai, Rita Li Man Bun, Brian David AUTHORISED REPRESENTATIVES Hao Jian Min Xiao Xiao Nip Yun Wing (Alternate authorised representative to Hao Jian Min and Xiao Xiao) Annual Report 2013 3 Corporate Information REGISTERED OFFICE LEGAL ADVISOR 10/F., Three Pacific Place Mayer Brown JSM 1 Queen’s Road East, Hong Kong Telephone : (852) 2823 7888 Facsimile : (852) 2865 5939 INDEPENDENT AUDITOR Website : www.coli.com.hk PricewaterhouseCoopers Certified Public Accountants COMPANY SECRETARY Keith Cheung, Solicitor PRINCIPAL BANKERS (In Alphabetical Order) Agricultural Bank of China Limited REGISTRAR AND Agricultural Bank of China Limited Hong Kong Branch TRANSFER OFFICE Bank of China Limited Bank of China (Hong Kong) Limited Tricor Standard Limited Bank of Communications Co., Ltd. Hong Kong Branch Level 22, Hopewell Centre The Bank of East Asia, Limited 183 Queen’s Road East, Hong Kong China Construction Bank Corporation Telephone : (852) 2980 1333 China Construction Bank (Asia) Corporation Limited Facsimile : (852) 2810 8185 China Merchants Bank Hong Kong Branch E-mail : [email protected] DBS Bank Ltd., Hong Kong Branch Hang Seng Bank Limited The Hongkong and Shanghai Banking Corporation Limited INVESTOR RELATIONS Industrial and Commercial Bank of China Ltd. Industrial and Commercial Bank of China (Asia) Ltd. Corporate Communications Department Sumitomo Mitsui Banking Corporation Telephone : (852) 2823 7888 Facsimile : (852) 2529 9211 E-mail : [email protected] PUBLIC RELATIONS Corporate Communications Department Telephone : (852) 2823 7888 Facsimile : (852) 2529 9211 E-mail : [email protected] 4 China Overseas Land & Investment Ltd. Shareholders’ Information and Financial Calendar SHARE LISTING FINANCIAL CALENDAR The Company’s shares and bonds are listed on The Stock Interim results : 5 August 2013 Exchange of Hong Kong Limited (“SEHK”). announcement Interim dividend paid : 9 September 2013 Final results announcement : 13 March 2014 STOCK CODE Share register closed for : 23 May 2014 to Annual General Meeting 26 May 2014 Shares (both days inclusive) Annual General Meeting : 26 May 2014 SEHK : 00688 Share register closed for : 13 June 2014 Bloomberg : 688:HK Final dividend Reuters : 0688.HK Final dividend payable : 3 July 2014 Bond SEHK Bloomberg Reuters Note 1 : China OVS N2011 EI4567265 XS0508012092 Code: 4503 Note 2 : China OVS N1702 EJ0197768 XS0745169044 Code: 4533 Note 3 : China OVS N2211 EJ4365304 XS0852986156 Code: 4579 Note 4 : China OVS N4211 EJ4365403 XS0852986313 Code: 4580 Note 5 : China OVS N1810 EJ9002563 XS0984184316 Code: 5987 Note 6 : China OVS N2310 EJ9002621 XS0972980097 Code: 5988 Note 7 : China OVS N4310 EJ9002803 XS0985567881 Code: 5989 Note 1: US$1,000,000,000 5.50 per cent. Guaranteed Notes due November 2020 issued by China Overseas Finance (Cayman) II Limited, a wholly owned subsidiary of the Company. Note 2: US$750,000,000 4.875 per cent. Guaranteed Notes due February 2017 issued by China Overseas Finance (Cayman) IV Limited, a wholly owned subsidiary of the Company. Note 3: US$700,000,000 3.95 per cent. Guaranteed Notes due November 2022 issued by China Overseas Finance (Cayman) V Limited, a wholly owned subsidiary of the Company. Note 4: US$300,000,000 5.35 per cent. Guaranteed Notes due November 2042 issued by China Overseas Finance (Cayman) V Limited, a wholly owned subsidiary of the Company. Note 5: US$500,000,000 3.375 per cent. Guaranteed Notes due October 2018 issued by China Overseas Finance (Cayman) III Limited, a wholly owned subsidiary of the Company. Note 6: US$500,000,000 5.375 per cent. Guaranteed Notes due October 2023 issued by China Overseas Finance (Cayman) III Limited, a wholly owned subsidiary of the Company. Note 7: US$500,000,000 6.375 per cent. Guaranteed Notes due October 2043 issued by China Overseas Finance (Cayman) III Limited, a wholly owned subsidiary of the Company. Annual Report 2013 5 Corporate Structure Planning and Construction Design Property Development* ^ Property Management Property Investment ^ Business operating in Mainland China, Hong Kong and Macau. * Property development in 42 major cities in mainland China, including Beijing, Shanghai, Shenzhen, Guangzhou, Hangzhou, Shenyang, Chongqing, Changchun, Changsha, Chengdu, Dalian, Foshan, Fuzhou, Harbin, Jinan, Kunming, Nanchang, Nanjing, Ningbo, Suzhou, Qingdao, Tianjin, Wuhan, Wuxi, Xi’an, Xiamen, Yantai, Zhongshan, Zhuhai, Changzhou#, Guilin#, Ganzhou#, Jilin#, Hefei#, Hohhot#, Lanzhou#, Nanning#, Nantong#, Shaoxing#, Yancheng#, Yangzhou#, Yinchuan# as well as in Hong Kong and Macau. # The cities where China Overseas Grand Oceans Group Limited “COGO” has operations; COGO also has projects in Beijing and Guangzhou. 6 China Overseas Land & Investment Ltd. Financial Highlights For the year ended 31 December 2013 2012 Change (%) Financial Highlights (HK$ billion) Turnover 82.47 64.58 +28 Profit attributable to equity shareholders of the Company 23.04 18.72 +23 Sales of properties 138.52 111.52 +24 Financial Ratios Net debt to shareholders’ funds (%) 3 28 21 +71 Interest cover (times) 12 15 –32 Dividend payout (%) 17 18 –11 Financial Information per Share (HK$) Earnings 2.82 2.29 +23 Dividends 0.47 0.394 +21 — Interim dividend 0.18 0.15 +20 — Final dividend 0.29 0.24 +21 Equity attributable to equity shareholders of the Company 13.46 10.68 +26 Land Reserves (million sq m) Development land bank 3 38.77 35.10 +10 Notes: 1 Change in percentage points 2 Change in number of times 3 These are year end figures 4 Excluding the special dividend of HK2 cents per share paid in 2012 Annual Report 2013 7 Financial Highlights (continued) EARNINGS AND DIVIDENDS PER SHARE SHAREHOLDErs’ FunD PER SHARE HK$ HK$ 13.46 2.82 2.29 10.68 1.89 1.55 8.76 6.80 0.94 5.22 0.39* 0.47 0.33 0.20 0.27 09 10 11 12 13FY 09 10 11 12 13FY Earnings Dividends * Excluding the special dividend of HK2 cents per share paid in 2012 NET DEBT TO SHAREHOLDErs’ FunDS LAND RESERVES % million sq m 38.77 35.10 34.45 30.55 30.56 32.7 28.4 22.1 22.5 20.5 09 10 11 12 13FY 09 10 11 12 13FY 8 China Overseas Land & Investment Ltd. Group Financial Summary KEY FINANCIAL INFORMATION AND RATIOS Financial Year 2009 2010 2011 2012 2013 HK$ HK$ HK$ HK$ HK$ Earnings per share 0.94 1.55 1.89 2.29 2.82 Dividends per share 0.20 0.27 0.33 0.39* 0.47 — Interim dividend 0.07 0.10 0.13 0.15 0.18 — Final dividend 0.13 0.17 0.20 0.24 0.29 Equity attributable to equity shareholders per share 5.22 6.80 8.76 10.68 13.46 Net debt to shareholders’ funds (%) 22.1 22.5 32.7 20.5 28.4 Net debt Shareholders’ funds Interest cover (times) Operating profit – Total interest income 15 16 16 15 12 Interest expense** KEY PROFIT AND LOSS ITEMS For the year ended 31 December 2009 2010 2011 2012 2013 HK$’000 HK$’000 HK$’000 HK$’000 HK$’000 Turnover 39,277,758 46,650,024 51,332,302 64,580,694 82,469,081 Operating profit 12,259,248 18,913,841 23,388,338 27,070,329 28,347,553 Profit attributable to equity shareholders 7,646,049 12,671,244 15,464,098 18,722,221 23,043,712 KEY STATEMENT OF FINANCIAL POSITION ITEMS As at 31 December 2009 2010 2011 2012 2013 HK$’000 HK$’000 HK$’000 HK$’000 HK$’000 Fixed assets# 8,001,422 14,373,063 18,103,007 24,633,189 33,902,857 Long-term investments 2,760,515 11,557,227 16,031,823 17,210,850 15,949,402 Other non-current assets 10,097,248 10,422,815 13,856,463 7,713,144 5,454,574 Net current assets 40,463,396 64,496,939 60,054,948 96,292,053 130,287,809 Non-current liabilities (18,992,957) (42,079,594) (36,156,243) (58,292,280) (74,544,246) Net assets 42,329,624 58,770,450 71,889,998 87,556,956 111,050,396 * Excluding the special dividend of HK2 cents per share paid in 2012.

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