ANNUAL REPORT (Incorporated in Hong Kong with Limited Liability) in Hong Kong with Limited (Incorporated Stock Code: 00817 Group Limited Holdings China Jinmao
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CHINA JINMAO HOLDINGS GROUP LIMITED (Incorporated in Hong Kong with limited liability) Stock Code: 00817 CHINA JINMAO HOLDINGS GROUP LIMITED A NNUAL REPORT 2019 NNUAL REPORT Unleashing Future Vitality of the City ANNUAL REPORT 2019 Reform of Ongoing Upgrade of Quality City Lifestyles Quality Industrial City The Company enjoys product Comprehensive Culture Industry superiority and brand reputation in Comprehensive Health Industry the fields of quality residences, 5-star Comprehensive Technology Industry hotels, premium quality business, and 5A-class office premises ad Le Boost Urban Industrial Upgrading Upgrading Two Drivens Two Upgrades Plan-Driven Capital-Driven Planning team and partners with To achieve the purpose of advancing global visions the industry with investment and the integration of industry and finance Practical experience in planning and based on the strengths and credit implementation of endorsements of JM Capital city operations projects Contents 2 Company Overview 4 Major Events 6 Corporate Information 7 Financial Highlights 8 Chairman’s Statement 12 Honours and Awards 14 Management Discussion and Analysis 95 Investor Relations 98 Corporate Social Responsibilities 104 Profile of Directors and Senior Management 111 Corporate Governance Report 128 Report of the Directors 157 Independent Auditor’s Report 162 Consolidated Statement of Profit or Loss 163 Consolidated Statement of Comprehensive Income 164 Consolidated Statement of Financial Position 166 Consolidated Statement of Changes in Equity 168 Consolidated Statement of Cash Flows 171 Notes to Financial Statements 288 Five-Year Financial Information CHINA JINMAO HOLDINGS GROUP LIMITED 1 ANNUAL REPORT 2019 Company Overview China Jinmao Holdings Group Limited (“China Jinmao” or the “Company”) is a platform enterprise under the real estate and hotel segments of Sinochem Group Co., Ltd. (“Sinochem Group”), one of the world’s top 500 enterprises. On 17 August 2007, China Jinmao was listed on the Main Board of The Stock Exchange of Hong Kong Limited (hereinafter referred to as the “Hong Kong Stock Exchange”) (Stock Code: HK.00817). It is now one of the component stocks of the Hong Kong Hang Seng Composite Index. Sinochem Group is one of the state-owned enterprises that is approved by the SASAC of the State Council to engage in property development and hotel operations as one of its principal businesses. In adherence to the vision of “Unleashing Future Vitality of the City”, China Jinmao holds on to the direction of high- end positioning and premium quality and endeavours to become a leading city operator in China by capitalising on the quality leadership-oriented “two-wheel and two-wing driven” development strategy with focus on the model of “two-driven and two-upgrade” city operations. Based on its foresight on city potentials, China Jinmao integrates the world’s leading premium resources and introduces the concept of mutually beneficial city planning to achieve overall enhancement in regional functions and city vitality. Currently, China Jinmao has succeeded in entering China’s rapidly developing regions including the Beijing-Tianjin-Hebei Metropolitan Region, the Yangtze River Delta and the Pearl River Delta. The Company develops and holds more than 200 projects in 49 core cities including Beijing, Tianjin, Shanghai and Guangzhou. Capitalising on the synergies and integration strengths between the segments, China Jinmao has created a series of high-end products featuring “Jinmao” brand. The “green gold label” standard of its “green technology and Jinmao quality” has become a unique quality gene and inherent brand feature of “Jinmao” series products and redefined high- end quality in the industry. PROPERTY COMMERCIAL DEVELOPMENT LEASING CITY HOTEL AND RETAIL FINANCE AND OPERATIONS OPERATIONS OPERATIONS SERVICES ADHERING TO THE STRATEGIC on its leading force of Beijing Jinmao Green Building Technology Co., Ltd. (“Jinmao Green Building”) in science POSITIONING OF “CITY OPERATOR” and technology industry, actively study the logistics The Company will fully utilise its experience in city industry, and drive industry upgrade of cities via industry operations, hold on to planning-driven as traction and cooperation and incubation. capital-driven as cornerstone to drive city upgrade and industry upgrade, and work with governments to shape a City upgrade new city core. Leverage on the Company’s accumulated product Planning-driven strengths and brand influence in areas of quality residence, high-end hotel, premium retail and 5A office Actively capitalise on the Company’s professional building to drive consumption upgrade and functional expertise in planning to achieve function diversification, upgrade of cities. high-end oriented industry and city internationalization based on integrated, systematic, forward-looking and IN SCIENCE WE TRUST WITH scientific planning. FOCUS ON INNOVATION-DRIVEN Capital-driven TRANSFORMATION To achieve the purpose of advancing the industry with The Company will continue to follow the principle of “In investment and the integration of industry and finance Science We Trust and Unity in Knowledge and Action”, based on the strengths and credit endorsements of JM with a focus on “green health” and “smart technology”, Capital Limited (“JM Capital”). and adhere to customer-centric and technology-driven product upgrade to drive technological innovation and Industry upgrade product upgrade. Focus on the three major industries namely big culture, big healthcare and big technology while capitalising 2 CHINA JINMAO HOLDINGS GROUP LIMITED ANNUAL REPORT 2019 Company Overview CITY OPERATIONS AND PROPERTY DEVELOPMENT Strong Performance City operations projects and property development projects with an area yet to be delivered of approximately 57.14 million square metres and approximately 27.28 million square metres respectively During the Year, sales results of the projects were good, contracted sales amount increased by 26% year-on-year, and land reserves were expanded with the successful acquisitions in Wenzhou, Zhangjiagang, Nanjing, CONTRACTED 2019 160,807 Changsha, Shantou, Weifang, Yiwu, Qingdao, Chongqing, 2018 128,000 SALES AMOUNT Baoding, Beijing, Weihai, Hefei, Fuzhou, Hangzhou, (RMB million) Zhengzhou, Nanchang and Guiyang COMMERCIAL LEASING AND RETAIL OPERATIONS Stable Income Eleven major investment properties with a total gross floor area of approximately 790,000 square metres. High rental level and high occupancy rate of the Group’s investment properties, outperforming its peers RENTAL REVENUE 2019 1,446.8 (RMB million) 2018 1,449.8 HOTEL OPERATIONS Industry Leader Ten luxury hotels offering 3,968 guest rooms The hotels actively sought market opportunities and maintained a leading position among their competitors within the region. HOTEL REVENUE 2019 1,967.1 (RMB million) 2018 2,047.9 CHINA JINMAO HOLDINGS GROUP LIMITED 3 ANNUAL REPORT 2019 Major Events JANUARY 2019 The Company and the Government of Dongli District, Tianjin City entered into the Cooperation Agreement for China Jinmao • Smart Science City The third Grand Banquet China themed “Meet with Friends, Salute to Classics” of the Company held at Wuhan The Company won the bid for the first batch of land parcels nos. HX040619A and HX040702 for the Qingdao Jimo International Smart New City Project The Company won the bid for the first five batches of land parcels for Wenzhou Rui’ an city-industry Integration Project The Company has Project won the bid for the first six batches of land parcels for the newly launched area of Zhangjiagang Smart Science City MARCH 2019 The Company won the bid for land parcel no. 2019G05, Tangshan Spa & Wellness Town Phase I, Jiangning District, Nanjing APRIL 2019 The land use rights for the land parcel no. J-12 for Jinmao Changsha Meixi Lake International New City underwent the process of listing for sale The Company was invited to the 15th International Conference on Green and Energy- Efficient Building and was appointed as the host of the “zero-carbon” city operations subforum MAY 2019 The Company attended the 2019 Langfang International Economic and Trade Fair and entered into the strategic cooperation agreement with the People’s Government of Langfang, Hebei and China VAST Industrial Urban Development Company Limited (中國宏泰產業市鎮公司). The Company and the People’s Government of Yueyang entered into the strategic cooperation agreement on Phase I of the Dongfeng Lake New Area Project and has won the land parcels no. I-6# for Phase I of the Project JUNE 2019 The Company has won the land parcel no. WG2019-4 of Jinfeng Peninsula in Jinping District, Shantou The Company has won the land parcel no. 2018-BS09 of Weifang Free Trade Zone 4 CHINA JINMAO HOLDINGS GROUP LIMITED ANNUAL REPORT 2019 Major Events JULY 2019 The Company announced the strategic placing in which Ping An Group became the second largest shareholder of the Company The Company completed the issuance of the ten-year senior guaranteed notes of US$500,000,000 The Company completed the issuance of the real estate investment trusts (REITs) for the office portion of North Tower of Changsha Meixi Lake Jinmao Plaza SEPTEMBER 2019 The Company won the bid for the first batch of land parcels no. HD2019-3133/3134 for the Qingdao West Coast Innovation and Technology City Project OCTOBER 2019 The Company and the People’s Government of Wuhu entered into a strategic cooperation agreement The Company held the Fourth Grand Banquet China in Shenzhen The Company launched the product show of J•Maker (金茂建築科技) and signing