Annual Report 2020 年度報告 CONTENTS
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( 於中華人民共和國註冊成立的股份有限公司 ) 股份代號 : 1158 2O2O 2O2O 年度報告 ANNUAL REPORT Annual Report 2020 年度報告 CONTENTS Corporate Information 2 Operating Data 3 Major Awards 7 Definitions and Glossary 8 Financial Highlights 11 Chairman’s Statement 12 Directors, Supervisors and Senior Management 15 Management Discussion and Analysis 24 Report of the Board of Directors 40 Report of the Supervisory Committee 57 Corporate Governance Report 58 Environmental, Social and Governance Report 72 Independent Auditor’s Report 84 Consolidated Statement of Comprehensive Income 89 Consolidated Balance Sheet 90 Consolidated Statements of Changes in Equity 92 Consolidated Statements of Cash Flows 94 Notes to the Consolidated Financial Statements 95 Five-Year Financial Summary 194 2 Zhejiang New Century Hotel Management Co., Ltd. CORPORATE INFORMATION SECOND BOARD OF REMUNERATION REGISTERED OFFICE DIRECTORS COMMITTEE 18th Floor, Executive Directors Mr. Zhang Rungang (Chairman) No. 818 Shixinzhong Road, Mr. Zhou Rong Beigan Subdistrict, Mr. Jin Wenjie (Chairman) Ms. Qiu Yun Xiaoshan District, Mr. Chen Miaoqiang (President) Hangzhou, JOINT COMPANY Zhejiang Province, Non-executive Directors SECRETARIES the People’s Republic of China (the “PRC”) Mr. Chen Canrong Mr. Li Donglin Mr. Jiang Tianyi Ms. Ng Wai Kam PRINCIPAL PLACE OF Mr. Zhou Rong BUSINESS IN THE PRC Mr. Xie Bingwu AUTHORIZED REPRESENTATIVE 18th Floor, Independent non-executive No. 818 Shixinzhong Road, Directors Mr. Jin Wenjie Beigan Subdistrict, Ms. Ng Wai Kam Xiaoshan District, Mr. Zhang Rungang Hangzhou, Mr. Khoo Wun Fat William AUDITOR Zhejiang Province, Ms. Qiu Yun the PRC PricewaterhouseCoopers SECOND SUPERVISORY Certified Public Accountants and PRINCIPAL PLACE OF COMMITTEE Registered PIE Auditor BUSINESS IN HONG KONG Supervisors LEGAL ADVISERS Level 54, Hopewell Centre, 183 Queen’s Road East, Ms. Zha Xianghong (Chairman) As to Hong Kong law: Hong Kong Mr. Guo Mingchuan Dechert Ms. Liu Hong As to PRC law: LISTING EXCHANGE King & Wood Mallesons OF THE COMPANY’S H AUDIT COMMITTEE SHARES COMPANY NAME IN Ms. Qiu Yun (Chairman) CHINESE Main Board of The Stock Exchange Mr. Jiang Tianyi of Hong Kong Limited Mr. Khoo Wun Fat William 浙江開元酒店管理股份有限公司 (the “Stock Exchange”) NOMINATION COMMITTEE COMPANY NAME IN H SHARES ABBREVIATION ENGLISH Mr. Zhang Rungang (Chairman) NC HOTEL Mr. Chen Canrong Zhejiang New Century Hotel Mr. Khoo Wun Fat William Management Co., Ltd. STOCK CODE H SHARE REGISTRAR 01158 Tricor Investor Services Limited WEBSITE Level 54, Hopewell Centre, 183 Queen’s Road East, http://www.kaiyuanhotels.com Hong Kong Annual Report 2020 3 OPERATING DATA HOTEL OPERATION SEGMENT Operating data During the Reporting Period, the key performance indicators of our hotels in operation (including our owned hotels and leased hotels) were as follows: Year ended 31 December Average Occupancy Rate (%) ADR (RMB) RevPAR (RMB) Item 2020 2019 2020 2019 2020 2019 Upscale business hotels 41.9 62.4 426.2 465.9 178.8 290.9 Upscale resort hotels 49.1 57.1 599.7 676.1 294.6 385.8 Mid-scale full service hotels 42.7 60.4 325.3 353.1 138.8 213.1 Mid-scale select service hotels 53.7 62.1 277.6 315.5 149.0 196.1 Due to the impact of the COVID-19 pandemic (the “pandemic”), the occupancy rate and average room rate of all types of hotels have declined significantly. As the impact of the pandemic relatively eased in the second half of 2020, the RevPAR of all types of hotels rebounded significantly in the second half of 2020 and reached the combined annual levels for each type of hotels as set out above. Among which, the RevPAR of upscale business hotels was RMB239.9 in the second half of 2020, representing an increase of 103.8% from RMB117.7 in the first half of 2020, the RevPAR of upscale resort hotels was RMB351.8 in the second half of 2020, representing an increase of 89.8% from RMB185.4 of the first half of 2020, and the RevPAR of mid-scale full service hotels was RMB181.5 in the second half of 2020, representing an increase of 88.5% from RMB96.3 of the first half of 2020. F&B services Year ended 31 December 2020 2019 Average spending per customer (RMB) 128.6 129.4 Utilization rate of seats 51.7% 72.4% Revenue per sq.m. of banquet rooms (RMB) 8,738.7 10,378.7 In 2020, as travelling was restricted due to the pandemic, the demand of conference decreased significantly. With easing of travelling restriction in the second half of 2020, wedding banquets and short and local trips significantly increased. In the second half of 2020, the utilization rate of seats was 67.18%, representing a decrease of just 6.06% from 73.24% in the second half of 2019 and a significant increase when compared to the year-on-year decrease of 34.9% recorded in the first half of 2020. Revenue per sq.m. of banquet rooms was RMB5,727.75 in the second half of 2020, representing an increase of 14.87% from RMB4,986.41 in the second half of 2019. 4 Zhejiang New Century Hotel Management Co., Ltd. OPERATING DATA HOTEL MANAGEMENT SEGMENT During the Reporting Period, the Group recorded a revenue of approximately RMB189.7 million from the hotel management segment, representing a year-on-year decrease of approximately 20.3%. Although the number of managed hotels from new openings increased during the Reporting Period, after the outbreak of the pandemic, the Group proactively waived the management fees of all entrusted hotels from 24 January to 31 March 2020; and subsequently from 1 April to 30 June 2020, the performance of each hotel also dropped significantly, with the revenue of the hotel management segment recording a year-on-year decrease of 44.7% in the first half of 2020. In the second half of 2020, as the pandemic was gradually brought under control in the PRC, the performance of all hotels gradually recovered, and the revenue of the hotel management segment recovered to a year-on-year decrease of 2.9% for the Reporting Period. The following table sets forth the number of hotels and hotel rooms in operation as at 31 December 2019 and 2020. As at 31 December 2020 As at 31 December 2019 No. of No. of No. of hotels hotel rooms No. of hotels hotel rooms Operated hotels 40 10,279 38 9,160 Managed hotels 271 48,952 178 35,625 Total 311 59,231 216 44,785 The following table sets forth the breakdown of hotels by hotel categories as at 31 December 2020. Total no. of No. of No. of No. of No. of hotels (No. of operated managed operated managed hotel rooms) hotels (No. of hotels (No. of hotels (No. of hotels (No. of in operation hotel rooms) hotel rooms) hotel rooms) hotel rooms) and under in operation in operation under pipeline under pipeline pipeline Upscale business hotels 10(4,474) 42(14,041) 1(289) 35(10,251) 88(29,055) Upscale resort hotels 4(830) 26(6,309) – 39(8,034) 69(15,173) Mid-scale full service hotels 10(2,707) 58(12,514) – 78(17,634) 146(32,855) Mid-scale select service hotels 16(2,268) 145(16,088) 1(150) 124(13,776) 286(32,282) Total 40(10,279) 271(48,952) 2(439) 276(49,695) 589(109,365) Annual Report 2020 5 OPERATING DATA The following table sets forth a breakdown of our hotels by first-, new first-, second-, third-tier and other cities as at 31 December 2020. Total no. of No. of No. of No. of No. of hotels (No. of operated managed operated managed hotel rooms) hotels (No. of hotels (No. of hotels (No. of hotels (No. of in operation hotel rooms) hotel rooms) hotel rooms) hotel rooms) and under in operation in operation under pipeline under pipeline pipeline First-tier cities 3(387) 7(1,750) – 7(1,100) 17(3,237) New first-tier cities 19(5,230) 89(14,093) 1(150) 62(10,157) 171(29,630) Second-tier cities 11(2,349) 75(13,739) 1(289) 79(14,275) 166(30,652) Third-tier cities 7(2,313) 62(12,300) – 70(13,070) 139(27,683) Others - 38(7,070) – 58(11,093) 96(18,163) Total 40(10,279) 271(48,952) 2(439) 276(49,695) 589(109,365) Note: Others include Aba Tibetan and Qiang Autonomous Prefecture, Anshun, Beihai, Bozhou, Chizhou, Chongzuo, Dazhou, Dali Bai Autonomous Prefecture, Danzhou, Dongying, Enshi Tujia and Miao Autonomous Prefecture, Fangchenggang, Fuzhou, Heze, Honghe Hani and Yi Autonomous Prefecture, Huaibei, Huainan, Huangshan, Huangshi, Jingdezhen, Jiuquan, Kaifeng, Lhasa, Leshan, Lijiang, Liaoyuan, Linzhi, Lu’an, Longnan, Pu’er, Qiandongnan Miao and Dong Autonomous Prefecture, Quzhou, Rizhao, Shaoyang, Shiyan, Tongling, Tongren, Weinan, Wuzhou, Xining, Xishuangbanna Dai Autonomous Prefecture, Xiaogan, Xinyu, Suzhou, Xuancheng, Ya’an, Yingtan, Zaozhuang, Zhangjiajie and Zhumadian. 6 Zhejiang New Century Hotel Management Co., Ltd. OPERATING DATA The following table sets forth a breakdown of our hotels by geographic locations as at 31 December 2020. Total no. of No. of No. of No. of No. of hotels (No. of operated managed operated managed hotel rooms) hotels (No. of hotels (No. of hotels (No. of hotels (No. of in operation hotel rooms) hotel rooms) hotel rooms) hotel rooms) and under in operation in operation under pipeline under pipeline pipeline Zhejiang Province 27(6,935) 156(25,752) 1(150) 128(20,170) 312(53,007) Jiangsu Province 3(771) 23(4,707) 1(289) 29(5,500) 56(11,267) Anhui Province – 10(1,508) – 20(3,912) 30(5,420) Jiangxi Province 1(168) 13(3,033) – 13(2,572) 27(5,773) Shandong Province – 6(1,742) – 13(1,976) 19(3,718) Guangxi Zhuang Autonomous Region – 4(915) – 11(2,137) 15(3,052) Henan Province – 6(1,070) – 9(2,202) 15(3,272) Hubei Province – 10(1,389) – 5(1,139) 15(2,528) Shanghai Municipality 3(387) 6(1,397) – 5(808) 14(2,592) Guizhou Province – 5(1,189) – 7(1,693) 12(2,882) Fujian Province – 5(711) – 3(770) 8(1,481) Sichuan Province 1(202) 3(428)