Annual Report 2011 1 Corporate Information
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Contents Page(s) Corporate Information 2 Financial Highlights 3 Honours and Awards 4 Corporate Milestones 6 Property Portfolio 7 Project Overview 12 Profiles of the Directors 28 Chairman’s Statement 30 Management Discussion and Analysis 32 Corporate Governance Report 53 Report of the Directors 57 Independent Auditors’ Report 66 Consolidated Income Statement 67 Consolidated Statement of Comprehensive Income 68 Consolidated Statement of Financial Position 69 Consolidated Statement of Changes in Equity 71 Consolidated Statement of Cash Flows 72 Statement of Financial Position 74 Notes to Financial Statements 75 Five-Year Financial Summary 138 C C Land Holdings Limited Annual Report 2011 1 Corporate Information DIRECTORS REGISTERED OFFICE Executive directors Clarendon House Mr. Cheung Chung Kiu (Chairman) 2 Church Street Dr. Lam How Mun Peter Hamilton HM 11 (Deputy Chairman & Managing Director) Bermuda Mr. Tsang Wai Choi (Deputy Chairman) Mr. Lam Hiu Lo HEAD OFFICE AND PRINCIPAL PLACE Mr. Leung Chun Cheong OF BUSINESS Mr. Leung Wai Fai Ms. Poon Ho Yee Agnes 7th Floor Mr. Wu Hong Cho China United Centre 28 Marble Road Non-executive director North Point, Hong Kong Mr. Wong Yat Fai BRANCH OFFICE Independent non-executive directors Mr. Lam Kin Fung Jeffrey Rooms 3308-10 Mr. Leung Yu Ming Steven China Resources Building Dr. Wong Lung Tak Patrick 26 Harbour Road Wanchai, Hong Kong AUDIT COMMITTEE PRINCIPAL BANKERS Mr. Lam Kin Fung Jeffrey (Chairman) Mr. Leung Yu Ming Steven The Hongkong and Shanghai Banking Corporation Limited Dr. Wong Lung Tak Patrick BNP Paribas Bank of Chongqing Co., Ltd. REMUNERATION COMMITTEE Bank of Communications Co., Ltd. Chong Hing Bank Limited Mr. Cheung Chung Kiu (Chairman)1 Hang Seng Bank Limited Dr. Lam How Mun Peter Industrial and Commercial Bank of China (Asia) Limited Mr. Lam Kin Fung Jeffrey The Bank of East Asia, Limited Mr. Leung Yu Ming Steven Dr. Wong Lung Tak Patrick SHARE REGISTRARS AND TRANSFER AUTHORISED REPRESENTATIVES OFFICES Principal share registrar and transfer office Dr. Lam How Mun Peter HSBC Securities Services (Bermuda) Limited Mr. Leung Chun Cheong 6 Front Street Hamilton HM 11 COMPANY SECRETARY Bermuda Ms. Cheung Fung Yee Hong Kong branch share registrar and transfer office Tricor Secretaries Limited LEGAL ADVISORS 26th Floor Tesbury Centre Hong Kong 28 Queen’s Road East Cheung, Tong & Rosa Wanchai, Hong Kong Woo Kwan Lee & Lo WEBSITE Bermuda Conyers Dill & Pearman http://www.ccland.com.hk INDEPENDENT AUDITORS STOCK CODE Ernst & Young 1224 Certified Public Accountants Notes: 1. Mr. Leung Yu Ming Steven has been appointed chairman of the Remuneration Committee in place of Mr. Cheung Chung Kiu with effect from 30 March 2012, while Mr. Cheung Chung Kiu remained a member of the Remuneration Committee. 2. A Nomination Committee comprising Mr. Cheung Chung Kiu as chairman, Dr. Lam How Mun Peter, Mr. Lam Kin Fung Jeffrey, Mr. Leung Yu Ming Steven and Dr. Wong Lung Tak Patrick was established on 30 March 2012. 2 C C Land Holdings Limited Annual Report 2011 Financial Highlights REVENUE TOTAL ASSETS Year ended 31 December As at 31 December * The revenue included continuing operations and a discontinued operation. REVENUE BY OPERATING SEGMENTS Year ended 31 December 2011 2010 C C Land Holdings Limited Annual Report 2011 3 Honours and Awards Corporate C C LAND 1. Top 100 Listed Property Developers in China 2011 (May 2011) CHONGQING ZHONG YU 2. Certificate of Honour • Top 100 Enterprises in Chongqing 2011 (September 2011) 3. The 1st Top 100 Most Responsible Property Developers in China (June 2011) Projects RIVERSIDE ONE, WANZHOU 4. Chongqing Lucky Boom Realty Company • The Most Advanced Property Developer in Jiangnan New District 2011 (January 2012) 5. The Most Popular Property in Wanzhou 2011 (December 2011) 4 C C Land Holdings Limited Annual Report 2011 Honours and Awards i-CITY 6. 2011 Zhan Tianyou Award • Excellent Residential Community in Chongqing • Gold Certificate (August 2011) VERAKIN NEW PARK CITY 7. The 7th Top 50 Property Developers in Chongqing (August 2011) 8. 2011 Zhan Tianyou Award • Excellent Residential Community in Chongqing • Gold Award (August 2011) SKY VILLA 9. The Most Anticipated Project of Chengdu Property 2011 (2011) VILLA ROYALE 10. The 6th Gold Award in 2011 • The Best Villa • European Style (December 2011) C C Land Holdings Limited Annual Report 2011 5 Corporate Milestones 2011 January L’Ambassadeur was ranked No.1 both in terms of sales amount and area in Chongqing March The Group diversified into a fresh province in Western China by acquiring a premium site in Guiyang, Guizhou Province with a Grand Launch of L’Ambassadeur Phase II GFA of approximately 1,363,000 sqm April The Group acquired through its 51% subsidiary a land site with total GFA of 358,000 sqm in Nan’an Distict, Chongqing, which will be developed as an extension of the Verakin New Park City May The Group acquired a new site in Bishan County, Chongqing with a GFA of approximately 826,000 sqm Virtual Perspective of Bishan Verakin New Park City June The Group acquired through its 51% subsidiary a land site with total GFA of 349,000 sqm in Qingyang District, Chengdu July The Group started construction work of its first commercial project of Lot #10 of its main land bank in Chongqing September Virtual Perspective of Lot #10 Verakin New Park City was ranked No. 1 both in terms of sales amount and area in Chongqing November The Group acquired two land sites in Chongqing, one is in Wanzhou District with GFA of 271,000 sqm and the other one is in Nan’an District with GFA of 598,000 sqm Virtual Perspective of Zone M of Verakin New Park City December A proposal to spin-off the packaging business was submitted to the Hong Kong Stock Exchange 6 C C Land Holdings Limited Annual Report 2011 Property Portfolio GROUP I — PROPERTY INTEREST HELD BY THE GROUP UNDER DEVELOPMENT Approximate GFA to be Completion/ Carried Forward Expected Approximate or Under Completion Intended Site Area Development Date The Group’s Property Location Use (in sqm) (in sqm) (Year) Interest Three parcels of land located to Residential, 215,700 764,000 2012 or after 100% the south of Xingai Road, Commercial, (Lot Nos. 15, 16 and 17-1), Auxiliary Facilities Chongqing International Finance and and Car Park Trade Development Area, Longxi Jie Dao, Yubei District, Chongqing, PRC A site located to the Residential, 81,300 305,000 2014 or after 100% east of Songpai Road, (Lot No. 9), Commercial, Chongqing International Finance and Office and Trade Development Area, Car Park Longxi Jie Dao, Yubei District, Chongqing, PRC A site located to the southeast of Residential, 72,400 436,000 2014 100% the junction of Xingai Road, Commercial, and Hongjin Road, (Lot No. 10), Office, Hotel, Chongqing International Finance and Auxiliary Facilities Trade Development Area, and Car Park Longxi Jie Dao, Yubei District, Chongqing, PRC Three parcels of land (Lot No. 19), Residential, 143,900 260,000 2014 or after 100% Chongqing International Finance and Auxiliary Facilities Trade Development Area, and Car Park Longxi Jie Dao, Yubei District, Chongqing, PRC A site located to Residential, 47,900 260,000 2014 or after 100% the east of Hongjin Road, Commercial, (Lot No. 3-1), Office and Chongqing International Finance and Car Park Trade Development Area, Longxi Jie Dao, Yubei District, Chongqing, PRC C C Land Holdings Limited Annual Report 2011 7 Property Portfolio GROUP I — PROPERTY INTEREST HELD BY THE GROUP UNDER DEVELOPMENT (Continued) Approximate GFA to be Completion/ Carried Forward Expected Approximate or Under Completion Intended Site Area Development Date The Group’s Property Location Use (in sqm) (in sqm) (Year) Interest A site located to Residential, 96,900 557,000 2014 or after 100% the west of Hongjin Road, Commercial, (Lot No. 4), Office and Chongqing International Finance and Car Park Trade Development Area, Longxi Jie Dao, Yubei District, Chongqing, PRC Two sites (Lot No. 20 and Lot No. 11-1) Residential 19,900 60,000 2014 or after 100% located in Chongqing International and Car Park Finance and Trade Development Area, Longxi Jie Dao, Yubei District, Chongqing, PRC A site (Lot No. 22) located in Residential 5,300 20,000 2014 or after 100% Chongqing International Finance and and Car Park Trade Development Area, Longxi Jie Dao, Yubei District, Chongqing, PRC A site (Lot No. 7-1) located in Residential 5,200 11,000 2014 or after 100% Chongqing International Finance and and Car Park Trade Development Area, Longxi Jie Dao, Yubei District, Chongqing, PRC A site located in Residential, 146,800 399,000 2012-2015 100% No. 2, Xingsheng Branch, Commercial Longta Street, and Car Park Longxi Jie Dao, Yubei District, Chongqing, PRC A site located in Residential, 205,000 1,354,000 2014 or after 25% No. 1 Zhongxin Section, Commercial, Huaxin Street, Jie Dao Qiao Bei Village, Office and Jiangbei District, Car Park Chongqing, PRC A site located in Residential, 609,800 1,520,000 2012-2017 51% New Park City, Chayuan, Commercial Nan’an District, and Car Park Chongqing, PRC 8 C C Land Holdings Limited Annual Report 2011 Property Portfolio GROUP I — PROPERTY INTEREST HELD BY THE GROUP UNDER DEVELOPMENT (Continued) Approximate GFA to be Completion/ Carried Forward Expected Approximate or Under Completion Intended Site Area Development Date The Group’s Property Location Use (in sqm) (in sqm) (Year) Interest A site located in Residential, 109,700 286,000 2012-2014 100% Chengjiaba She No. 1, Commercial Xinxing She Nos. 4 and 5, and Car Park Jiangnan New District, Wanzhou District,