(於百慕達註冊成立之有限公司) 股份代號：563 新境界 NEW STAGE 新視野 NEW INITIATIVE 中期報告 2014 INTERIM REPORT 2014 Interim Report 2014 中期報告 NEW STAGE Shanghai Industrial Urban Development Group Limited (“SIUD” or the “Company”, together with its subsidiaries, the “Group”) currently has 23 real estate projects in 12 major cities in China, namely Shanghai, Kunshan, Wuxi, Beijing, Sanhe, Shenyang, Tianjin, Xi’an, Chongqing, Changsha, Shenzhen and Zhuhai. Most of the projects are mid- to high-end residential projects which are under construction at full steam, presenting the Group with an approximately 7.53 million-square-meter land bank and excellent foundation for long term development. Artist’s Impression CONTENTS 2 Corporate Information 3 Financial Highlights 4 Chairman’s Statement 7 Management Discussion and Analysis 13 Details of Properties 15 Major Project Introduction 26 Other Information 33 Report on Review of Condensed Consolidated Financial Statements 34 Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income 35 Condensed Consolidated Statement of Financial Position 37 Condensed Consolidated Statement of Changes in Equity 38 Condensed Consolidated Statement of Cash Flows 39 Notes to the Condensed Consolidated Financial Statements CORPORATE INFORMATION BOARD OF DIRECTORS HONG KONG BRANCH SHARE REGISTRAR Executive Directors AND TRANSFER OFFICE Ni Jianda (Chairman) Tricor Secretaries Limited Ji Gang (Vice Chairman & President) Level 22, Hopewell Centre Zhou Jun 183 Queen’s Road East Yang Jianwei Hong Kong Yang Biao Huang Fei LEGAL ADVISERS Ye Weiqi As to Hong Kong Law Ashurst Hong Kong Independent Non-Executive Directors Doo Wai-Hoi, William, J.P. As to Bermuda Law Wong Ying Ho, Kennedy, BBS, J.P. Conyers Dill & Pearman Fan Ren Da, Anthony Li Ka Fai, David COMPLIANCE ADVISER Somerley Capital Limited AUTHORIZED REPRESENTATIVES Ni Jianda REGISTERED OFFICE Chan Kin Chu, Harry Clarendon House, 2 Church Street, BOARD COMMITTEES Hamilton, HM11, • Audit Committee Bermuda Li Ka Fai, David (Committee Chairman) Doo Wai-Hoi, William, J.P. PRINCIPAL PLACE OF BUSINESS Wong Ying Ho, Kennedy, BBS, J.P. IN HONG KONG Fan Ren Da, Anthony Suites 3003–3007, 30th Floor, Great Eagle Centre, • Remuneration Committee 23 Harbour Road, Doo Wai-Hoi, William, J.P. (Committee Chairman) Wanchai, Hong Kong Fan Ren Da, Anthony Telephone: (852) 2544 8000 Ye Weiqi Facsimile: (852) 2544 8004 • Nomination Committee WEBSITE Wong Ying Ho, Kennedy, BBS, J.P. (Committee Chairman) http://www.siud.com Fan Ren Da, Anthony Ni Jianda PRINCIPAL BANKERS The Hongkong and Shanghai Banking Corporation Limited • Investment Appraisal Committee Shanghai Pudong Development Bank Company Limited Fan Ren Da, Anthony (Committee Chairman) China Construction Bank Corporation Zhou Jun Agricultural Bank of China Limited Ye Weiqi AUDITOR COMPANY SECRETARY Deloitte Touche Tohmatsu Chan Kin Chu, Harry 35th Floor, One Pacific Place 88 Queensway, Hong Kong PRINCIPAL SHARE REGISTRAR AND TRANSFER OFFICE LISTING INFORMATION Codan Services Limited The Stock Exchange of Hong Kong Limited Clarendon House Ordinary Shares 2 Church Street (Stock Code: 563) Hamilton, HM11 Bermuda 2 Shanghai Industrial Urban Development Group Limited FINANCIAL HIGHLIGHTS For the For the six months ended six months ended 30 June 2014 30 June 2013 Financial Highlights (HK$’000) Revenue 3,167,095 2,965,733 (Loss) Profit attributable to equity owners of the Company (148,190) 481,877 Financial Information per share (HK cents) (Loss) Earnings – Basic (3.08) 10.02 – Diluted (3.08) 10.02 As at As at 30 June 2014 31 December 2013 Pre-sale proceeds received on sales of properties (HK$’000) 5,181,963 6,496,160 Financial Ratios Net debt to total equity (%) 45.9% 41.3% Current ratio 1.93 1.90 Note: Net debt = total borrowings (including bank borrowings, loan payables and senior notes) less cash and cash equivalents and restricted bank deposits secured against bank borrowings. ANALYSIS ON PRE-SALE PROCEEDS DEBT MATURITY PROFILE RECEIVED ON SALES OF PROPERTIES HK$ HK$ (million) (million) 49.9% 7,473 16.1% 2,410 3,000 2,700 2,542 2,400 2,139 2,100 1,800 1,500 1,200 24.5% 3,679 900 600 9.5% 300 122 108 95 149 1,421 27 0 Urban CBE Top City Shanghai West Yoooou.net Others Less than one year 49.9% Cradle International Jing City Diaoyutai Peninsula From first year to second year 9.5% From second year to fifth year 24.5% Beyond the fifth year 16.1% Interim Report 2014 3 CHAIRMAN’S STATEMENT In March 2014, China Premier Li Keqiang proposed in the Report on the Work of the Government that appropriate control measures and regulations of China’s property market should be based upon the specific conditions of different areas and cities, under the principles of protecting consumption demand and suppressing investment needs. Subsequently, the Central Government has continuously relaxed different monetary policies to stabilize home buyers’ demand. Against the backdrop of relatively weak macroeconomic conditions, regulations implemented by the Central Government put extra emphasis on long-term benefits, allowing market mechanism to adjust the property market to promote stable and healthy growth. The property enterprises are expected to face opportunities and challenges in a more market-driven environment. 4 Shanghai Industrial Urban Development Group Limited Chairman’s Statement In the first half of 2014, the Chinese economy remained stable in spite of the slowdown in growth. Both urbanization and GDP per capita in China continued to advance. Despite some exceptional price reductions of certain property projects to stimulate sales in the first-tier or second-tier cities, the general property market was still in solid demand, especially demand from first-time home buyers and existing home-owners seeking an upgrade. This led to a progressive and healthy development of the property market. During the period, the Group achieved satisfactory result in contract sales and exceeded its sales target for the first half. This was attributable to the Group’s effort in conducting comprehensive market analysis to capture market opportunities and launch key projects timely for sale and this proved the management’s business acumen in market developments. Being the Group’s flagship project, Urban Cradle in Shanghai has been famous with its remarkable sales. Housing in Phase I to IV was well-received by the market, with inventory in Phase IV almost sold out in the first half of this year. In June 2014, the Group launched the large-sized deluxe fitted-out mansions of Phase V, which were again received favorably by the market. Since the release of Phase I of Urban Cradle, the average selling price has been increasing continuously. This demonstrates that in the growingly market-driven property market, the branding, quality and location distinguish a project from its peers. The Group’s projects will continue to compete through branding and quality, offering excellent products to customers at reasonable prices, and to operate under the premise of preserving the Group’s profit margin, in order to ensure the best interests of shareholders. Interim Report 2014 5 Chairman’s Statement During the period, the Group continued to focus on restructuring and optimizing asset portfolio as its key strategy. The Group actively sought quality projects in the Yangtze River Delta and major coastal cities and developed quality projects at appropriate times, in order to lay the bedrock for the Group’s long-term development. In March 2014, the group successfully obtained a land parcel at Meilong Town, Minhang District, Shanghai. The land will be developed as the Phase V of the Shanghai Jing City and sold as a commodity housing project. For other projects, the construction of the Xinzhuang Metro Superstructure began, the construction of U Centre was in good progress, the hotel in Wuxi commenced operations, and the construction of the new phase of the Xi’an project also got started. On the other hand, the Group continued to divest assets which were no longer aligned to its long-term strategy. On 6 August, the Group entered into a framework agreement to dispose a subsidiary owning 40% of the Tianjin Beichen project to realize its asset value and to generate cash inflow for the development of future projects with greater returns or for working capital purpose. Keen on innovation, the Group secured approximately US$600,000,000 in July through a club loan and a new shareholder loan, for the repayment of the high-interest senior notes due in late July and the financial support for the Group’s subsequent development, strategic move and business model. The Group’s mid- and long-term strategy will capitalize upon the opportunity from the reformation of equity in state-owned enterprises, leverage upon the advantages from the Group’s background, to engage in secondary development for land upgrade. By unleashing land value and establishing strategic alliances, the Group will form a new operating model. The Group will actively develop projects in key areas to foster the building of brand and project teams, and capitalize on projects and assets at appropriate times to increase shareholder returns and speed up cash inflows. Furthermore, in light of the Shanghai Free Trade Zone driving commercial activities in the city of Shanghai and stimulating demand for commercial properties and office spaces, the Group’s commercial complex projects in Shanghai will be certainly benefited. Looking ahead to the second half of the year, the Group will seize market opportunities, accurately match project positioning with consumer demands, and focus on developing high-returns projects as well as investment properties. Also, the Group will continue to optimize product mix, improve internal management in multiple areas such as engineering, sales and finance, and expand business operations while cautiously assess market risks. The Group will actively engage in asset integration and increase its returns on capital, continue to improve product quality and enhance brand competitiveness to secure fruitful returns for shareholders.