Annual Report 2012 Annual Report
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(Stock Code: 00917) Annual reportAnnual 2012 Annual report 2012 105708 Transforming city vistas We have dedicated ourselves in rejuvenating old city neighbourhood through comprehensive redevelopment plans. As a living embodiment of China’s cosmopolitan life, these mixed-use redevelopments have been undertaken to rejuvenate the old city into vibrant communities characterised by eclectic urban housing, ample public space, shopping, entertainment and leisure facilities. Spurring business opportunities We have developed large-scale multi-purpose commercial complexes, all well-recognised city landmarks that generate new business opportunities and breathe new life into throbbing hearts of Chinese metropolitans. MISSIONS Creating modern communities We pride ourselves on having created large scale self-contained communities that nurture family living and promote a healthy cultural and social life. Refi ning living lifestyle Our resort-style residential properties bring together exotic tropical landscape and mood-inspiring architecture. In addition to redefining aesthetic standards and envisioning a new way of living, we enable owners and residents to experience for themselves the exquisite and sensual lifestyle enjoyed by home buyers around the world. CONTENTS Property Portfolio 0022 Chairman’s Statement 0044 Financial Highlights 0088 Business Review 1100 Management Discussion and Analysis 6622 Corporate Governance Report 7700 Directors’ Profi le 8800 Senior Management Profi le 8866 Corporate Sustainability 9900 Financial Section Contents 110404 Major Projects Profi le 221818 Glossary of Terms 222626 Corporate Information 222828 http://www.nwcl.com.hk/html/eng/index.aspx New World China Land Limited 02 Annual Report 2012 PROPERTY PORTFOLIO Unsurpassed Quality and Long Term Value BRAND No matter what products or services we are offering, “Quality” is always at our heart. Our continuous adherence to excellent quality has won long term reliable reputation in the market. We choose the best locations in VALUES town to develop world-class properties with quality property management services. Our determination in providing the best contributes to preservation of asset AND value in the long run. Comprehensive Property Development ESSENCE We develop wide ranges and types of properties to cater for varying demands on sizes and functions from different market segments. Our dedicated professionalism and wide embracing experiences in project planning and execution have enabled us to handle the stringent demand of multi-product lines with ease. Building City and Corporate Sustainability We value corporate sustainability and are actively involved in continuous development of the local community. We commit ourselves to long term urban redevelopment projects, and participate enthusiastically in national and local charity programmes. Our good corporate behavior has inspired the locals in joining us to create a more harmonious society. Localised Hong Kong Brand As a Hong Kong based and well recognised brand, we fully apply our advanced and wide embracing experience in Hong Kong to property development in Mainland China, while at the same time develop projects that meet the needs of the city. We value local concepts, we understand market operation and culture through extensive staff localisation, and as a result, we become an integral part of the local community. Reliability and Reputation With over 40 years of property development experience and 30 years of investment experience in Mainland China, we are undoubtedly a mature and reliable developer with outstanding reputation in complying with local market rules and government regulations. New World China Land Limited 03 Annual Report 2012 Shenyang Anshan Tangshan Beijing Dalian Langfang Tianjin Jinan Nanjing Shanghai Chengdu Wuhan Changsha Guiyang Guangzhou Pearl River Delta Haikou Haikou South China Sea South China Sea Islands By location sq. m. Beijing 1,562,260 Tianjin 408,035 Langfang 751,772 By type sq. m. Tangshan 229,045 Jinan 298,568 Properties under development/held Shenyang 3,921,653 for development 27,623,067 Anshan 1,343,278 Completed investment properties 2,090,140 Dalian 254,997 Completed hotel properties 224,635 Wuhan 3,043,632 Total 29,937,842 Shanghai 263,085 Nanjing 52,794 By usage sq. m. Changsha 898,108 Chengdu 3,772,893 Guiyang 4,289,824 Residential 17,321,320 Commercial 3,571,622 Guangzhou 2,486,269 Offi ce 1,120,657 Foshan and Pearl River Delta 2,475,095 Hotel 794,389 Haikou 2,787,667 Carpark and others 7,129,854 Others 1,098,867 Total 29,937,842 Total 29,937,842 New World China Land Limited 04 Annual Report 2012 【 CHAIRMAN’S STATEMENT 】 New World China Land Limited 05 Annual Report 2012 To Our Shareholders, Under the background of sluggish global economic recovery, where the Europe economy faced possible further recession, the US economy lacked growth momentum and the economic growth in emerging economies has slowed down, the Chinese economy, being one of the emerging economies important to the recovery of global economy, was no exception. In the latest World Economic Outlook released by the International Monetary Fund, the economic growth forecast of China for 2012 and 2013 has been revised downwards. In response to the downward pressure caused by external markets on the domestic economy, the People’s Bank of China has lowered the reserve requirement ratio three times and the benchmark lending interest rate twice since December 2011, in a bid to ensure sufficient market liquidity and sustain economic growth momentum. According to the latest half-yearly economic report published by the National Bureau of Statistics of China, preliminary estimate of annual GDP growth was 7.8% during the first half of 2012, which was generally higher than the yearly target of 7.5% annual growth set previously, albeit a slower growth in the second quarter compared to the first quarter. In response to the challenges facing the current global economic conditions, the Central Government, Europe, US and emerging economies aim to mitigate the risks and impacts arising from economic downturn by implementing a series of stimulus measures and adjusting economic development strategies. The Central Government is gradually shifting from the previous focus of rapid economic growth to new growth models and benefits from sound economic system and policies. Following a dual model, sufficient market liquidity is maintained by adopting relaxed monetary policies, such as low interest rate, to stimulate the economy, while sustainable economic development strategies are implemented through the Central Government’s strengthened support to infrastructure construction and community welfare undertakings, in a bid to reduce over reliance on exports, increase consumption power per capita, stimulate domestic consumption and spending growth. New World China Land Limited 06 Annual Report 2012 【 CHAIRMAN’S STATEMENT 】 As the property market is one of the important growth drivers of China’s economy, the Central Government emphasised that it will insist on strengthening property market control in recent years, so as to ensure execution and functioning of control policies. In fact, home purchase restriction and credit control measures implemented in a number of major cities in 2011 have already resulted in substantial adjustment to transaction volume and overall property prices. Such measures have been proved successful in curbing speculative activities and bringing property prices back to reasonable levels. In March 2012, the Central Government and the national financial institutions moderately adjusted control measures to increase market liquidity in response to community development and property market trend. As concrete demand for new purchases and upgrades increased given the low probability for a new round of control measures, the property market sentiment gradually picked up with higher transaction volume and stable property prices. Wen Jiabao, Premier of the State Council, reiterated that the Central Government will continue to put efforts on property market regulation and low-income housing construction in the 2012 Report on the Work of the Government. Provided that quality is ensured, five million units of low-income housing will be completed and seven million units will commence construction. Low-income housing construction, allocation, administration and exit systems will be further optimised. Effective measures will be adopted to increase ordinary commodity housing supply, reform the property taxation system and promote steady and healthy development of the property market in the long run. On such development basis, the property and real estate markets in Mainland China are expected to undergo further consolidation. On the supply chain front, less competitive small- to medium-sized enterprises will be eliminated, providing the market with solid development foundation and the room for development of more outstanding enterprises. On the demand chain front, low-income individuals will be given opportunities to move up to the middle-income class through low-income housing, nurturing new driving forces for the property market. Both of the foregoing will benefit market development in the long run. Under the current worldwide market conditions, it is generally anticipated that the Central Government, around the convening of the 18th National People’s Congress, will adhere to its stable principle on economic development so as to prevent volatility in the market. Through adopting relaxed monetary policies and persistent