ANNUAL REPORT 2018 201 8 Global Hotel Deployment
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ANNUAL REPORT 2018 ANNUAL REPORT 2018 Global Hotel Deployment China Europe Africa Number of hotels: 6,241 Number of hotels: 1,009 Number of hotels: 53 Asia (excluding China) Americas Total Number of hotels: 214 Number of hotels: 20 Number of hotels: 7,537 Note: Above figures are owned or managed hotels in operation around the world. Annual Report 2018 Shanghai Jin Jiang International Hotels (Group) Company Limited 1 Contents Corporate Information 2 Group debts and financial conditions 34 Corporate Structure 3 Borrowings and pledge of assets 34 Information on Hotels of the Group 4 Treasury Management and Interest Rate Major Awards 9 Risk Management 36 Definitions and Glossary of Technical Terms 11 Financial Assets at Fair Value through Other Financial Highlights 14 Comprehensive Income 36 Operational Statistics 15 Financial Assets at Fair Value through Profit Chairman’s Statement 16 or Loss 36 Directors, Supervisors and Senior Management 19 Human resources and training 36 Management Discussion and Analysis 24 Social responsibility 36 Business review 24 Corporate strategies and outlook for future development 37 Full Service Hotels 25 Report of the Directors 38 Select Service Hotels 26 Report of the Supervisory Committee 57 Food and Restaurants 26 Corporate Governance Report 58 Passenger Transportation Vehicles and Logistics 27 Environment, Social and Governance Report 72 Travel Agency 27 Independent Auditor’s Report 89 Information Technology 28 Consolidated Balance Sheet 94 Financial review 28 Consolidated Income Statement 96 Consolidated Statement of Comprehensive Income 97 Consolidated Statement of Changes in Equity 98 Consolidated Statement of Cash Flows 100 Notes to the Consolidated Financial Statements 102 2 Shanghai Jin Jiang International Hotels (Group) Company Limited Annual Report 2018 CORPORATE INFORMATION THE FOURTH SESSION OF THE NOMINATION COMMITTEE H SHARE REGISTRAR AND BOARD Mr. Yu Minliang (Chairman) TRANSFER OFFICE EXECUTIVE DIRECTORS Dr. Rui Mingjie Computershare Hong Kong Investor Mr. Yu Minliang (Chairman) Dr. Tu Qiyu Services Limited Ms. Guo Lijuan (Vice Chairman) Shops 1712–1716, 17th Floor Mr. Chen Liming (Vice Chairman) AUDIT COMMITTEE Hopewell Centre Mr. Ma Mingju Dr. Xu Jianxin (Chairman) 183 Queen’s Road East Mr. Zhang Qian Mr. Ji Gang Wanchai, Hong Kong Dr. He Jianmin INDEPENDENT NON-EXECUTIVE INVESTOR AND MEDIA RELATIONS DIRECTORS REMUNERATION COMMITTEE CONSULTANT Mr. Ji Gang Mr. Ji Gang (Chairman) iPR Ogilvy & Mather Dr. Rui Mingjie Ms. Guo Lijuan Dr. Tu Qiyu Mr. Xie Hongbing PRINCIPAL BANKERS Dr. Xu Jianxin Industrial and Commercial Bank of Mr. Xie Hongbing STRATEGIC INVESTMENT China Dr. He Jianmin COMMITTEE Bank of China Ms. Guo Lijuan (Chairman) THE FOURTH SESSION OF THE Dr. Rui Mingjie LEGAL ADDRESS SUPERVISORY COMMITTEE Room 316–318 SUPERVISORS INTERNATIONAL AUDITOR No. 24 Yang Xin Dong Road Mr. Wang Guoxing PricewaterhouseCoopers Shanghai (Chairman of Supervisory Committee) The People’s Republic of China Mr. Zhou Qiquan PRC AUDITOR (the “PRC”) Ms. Zhou Yi PricewaterhouseCoopers Zhong Tian LLP Mr. Chen Yinghao PRINCIPAL PLACES OF BUSINESS IN Mr. He Yichi LEGAL ADVISERS THE PRC As to Hong Kong law & US law: 26/F., Union Building EXECUTIVE COMMITTEE Baker & McKenzie No. 100 Yan’an East Road Ms. Guo Lijuan (Chairman) Shanghai, the PRC Mr. Chen Liming (Vice Chairman) As to PRC law: Mr. Zhang Qian King & Wood Mallesons PRINCIPAL PLACES OF BUSINESS IN HONG KONG AUTHORIZED REPRESENTATIVES CHINESE NAME OF THE COMPANY Room 3203, 32nd Floor Ms. Guo Lijuan 上海錦江國際酒店(集團)股份有限公司 Shun Tak Centre, West Tower Ms. Zhang Jue 200 Connaught Road Central ENGLISH NAME OF THE COMPANY Hong Kong Special Administrative Region JOINT COMPANY SECRETARIES Shanghai Jin Jiang International Hotels of the PRC (“Hong Kong”) Ms. Zhang Jue (Group) Company Limited Ms. So Lai Shan STOCK EXCHANGE ON WHICH H SHARES OF THE COMPANY (“H QUALIFIED ACCOUNTANT SHARES”) ARE LISTED Dr. Ai Gengyun Main Board of The Stock Exchange of Hong Kong Limited (the “Stock Exchange”) Abbreviation of H Shares: JINJIANG HOTELS 錦江酒店 Stock code: 02006 Website: www.jinjianghotels.com.cn Tel: (86-21) 6326 4000 Fax: (86-21) 6323 8221 Annual Report 2018 Shanghai Jin Jiang International Hotels (Group) Company Limited 3 CORPORATE STRUCTURE The following graph sets out the major business segments of the Company as at 31 December 2018: Public Shareholders Jin Jiang International 25% 75% The Group Full Service Hotels 100% Select Service Hotels Jin Jiang GDL Asia 100% 50.32% Select Service Hotels GDL Select Service Hotels Jin Jiang Hotels Development and Food and (600754.SH/900934.SH) Restaurants 93% Select Service Hotels Plateno Group 39.26% 80% Select Service Hotels Passenger Vienna Hotels Jin Jiang Investment Transportation (600650.SH/900914.SH) Vehicles and Logistics 50.21% Jin Jiang Travel Travel Agency (900929.SH) Finance Other Business Company, etc. 4 Shanghai Jin Jiang International Hotels (Group) Company Limited Annual Report 2018 INFORMATION ON HOTELS OF THE GROUP INFORMATION ON HOTELS OF THE GROUP Full Service Hotels Select Service Hotels Total Number of Total number Number of Total number Number of Total number hotels of rooms hotels of rooms hotels of rooms China 94 28,622 6,147 625,235 6,241 653,857 Asia (excluding China) — — 214 24,473 214 24,473 Europe — — 1,009 72,040 1,009 72,040 Americas — — 20 4,481 20 4,481 Africa — — 53 6,472 53 6,472 Total 94 28,622 7,443 732,701 7,537 761,323 Note: 1. As at 31 December 2018, the Group owned or managed 7,537 hotels with a total of 761,323 guest rooms located in 68 countries around the world, including 6,241 hotels in operation with a total of 653,857 guest rooms owned or managed in the PRC. Annual Report 2018 Shanghai Jin Jiang International Hotels (Group) Company Limited 5 INFORMATION ON HOTELS OF THE GROUP INFORMATION ON HOTELS OF THE GROUP 1 — STATISTICS OF ALL HOTELS Hotels in which the Hotels in which the Hotels owned by Group held Hotel Group held Hotel Hotels owned by third parties but Interests and Interests but third parties but operated under All hotels managed by the managed by third managed by the franchises granted Total number of (As of 31 December 2018) Group parties Group by the Group hotels Total Total Total Total Total Number number Number number Number number Number number Number number of hotels of rooms of hotels of rooms of hotels of rooms of hotels of rooms of hotels of rooms Hotel Category Full Service Hotels — 5-star Luxury Hotels 5 2,250 2 964 61 19,850 — — 68 23,064 — 4-star Luxury Hotels 10 3,323 2 671 43 9,357 — — 55 13,351 Sub-total 15 5,573 4 1,635 104 29,207 — — 123 36,415 Commercial Hotels 2 274 — — 2 366 — — 4 640 Total Number of Full Service Hotels 17 5,847 4 1,635 106 29,573 — — 127 37,055 Select Service Hotels — Jin Jiang GDL Asia 306 42,168 — — — — 1,216 132,407 1,522 174,575 — GDL 282 21,599 — — — — 1,086 95,386 1,368 116,985 — Plateno Group 393 41,179 — — — — 5,243 450,989 5,636 492,168 — Vienna Hotels 55 13,774 — — — — 2,317 310,722 2,372 324,496 Total Number of Select Service Hotels 1,036 118,720 — — — — 9,862 989,504 10,898 1,108,224 Total 1,053 124,567 4 1,635 106 29,573 9,862 989,504 11,025 1,145,279 6 Shanghai Jin Jiang International Hotels (Group) Company Limited Annual Report 2018 INFORMATION ON HOTELS OF THE GROUP INFORMATION ON HOTELS OF THE GROUP 2 — STATISTICS OF HOTELS IN OPERATION Hotels in which the Hotels in which the Hotels owned by Group held Hotel Group held Hotel Hotels owned by third parties but Interests and Interests but third parties but operated under In operation managed by the managed by third managed by the franchises granted Total number of (As of 31 December 2018) Group parties Group by the Group hotels Total Total Total Total Total Number number Number number Number number Number number Number number of hotels of rooms of hotels of rooms of hotels of rooms of hotels of rooms of hotels of rooms Hotel Category Full Service Hotels — 5-star Luxury Hotels 5 2,250 2 964 39 13,858 — — 46 17,072 — 4-star Luxury Hotels 10 3,323 2 671 33 7,226 — — 45 11,220 Sub-total 15 5,573 4 1,635 72 21,084 — — 91 28,292 Commercial Hotels 2 274 — — 1 56 — — 3 330 Total Number of Full Service Hotels 17 5,847 4 1,635 73 21,140 — — 94 28,622 Select Service Hotels — Jin Jiang GDL Asia 294 40,632 — — — — 1,000 110,833 1,294 151,465 — GDL 282 21,599 — — — — 1,005 85,955 1,287 107,554 — Plateno Group 383 39,946 — — — — 3,266 259,790 3,649 299,736 — Vienna Hotels 53 13,234 — — — — 1,160 160,712 1,213 173,946 Total Number of Select Service Hotels 1,012 115,411 — — — — 6,431 617,290 7,443 732,701 Total 1,029 121,258 4 1,635 73 21,140 6,431 617,290 7,537 761,323 Annual Report 2018 Shanghai Jin Jiang International Hotels (Group) Company Limited 7 INFORMATION ON HOTELS OF THE GROUP INFORMATION ON HOTELS OF THE GROUP 3 — STATISTICS OF HOTELS UNDER DEVELOPMENT Hotels in which the Hotels in which the Hotels owned by Group held Hotel Group held Hotel Hotels owned by third parties but Interests and Interests but third parties but operated under Under development managed by the managed by third managed by the franchises granted Total number of (As of 31 December 2018) Group parties Group by the Group hotels Total Total Total Total Total Number number Number number Number number Number number Number number of hotels of rooms of hotels of rooms of hotels of rooms of hotels of rooms of hotels of rooms Hotel Category Full Service Hotels — 5-star Luxury Hotels — — — — 22 5,992 — — 22 5,992 — 4-star Luxury Hotels — — — — 10 2,131 — — 10 2,131 Sub-total — — — — 32 8,123 — — 32 8,123