Stock Code: 2868 創 造 都 市 新 生 活 Create New Urban Life Annual Report 2018 2018 Annual Report www.bjcapitalland.com CONTENTS 2 CORPORATE INFORMATION 3 LISTING INFORMATION 5 FINANCIAL HIGHLIGHTS 6 PROPERTY PORTFOLIO 16 CORPORATE MILESTONES DURING THE YEAR 20 CHAIRMAN’S STATEMENT 24 MANAGEMENT DISCUSSION AND ANALYSIS 54 BIOGRAPHICAL DETAILS OF DIRECTORS, SUPERVISORS AND SENIOR MANAGEMENT 60 DIRECTORS’ REPORT 74 CORPORATE GOVERNANCE REPORT 91 REPORT OF THE SUPERVISORY COMMITTEE 92 AUDITOR’S REPORT 97 CONSOLIDATED BALANCE SHEETS 99 COMPANY BALANCE SHEETS 101 CONSOLIDATED AND COMPANY INCOME STATEMENTS 103 CONSOLIDATED AND COMPANY CASH FLOW STATEMENTS 105 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY 106 COMPANY STATEMENT OF CHANGE IN EQUITY 107 NOTES TO THE FINANCIAL STATEMENTS CORPORATE INFORMATION DIRECTORS COMPANY SECRETARY Non-Executive Director Mr. Lee Sze Wai Mr. Li Songping (Chairman) AUTHORISED REPRESENTATIVES Executive Directors Mr. Zhong Beichen Mr. Lee Sze Wai Mr. Zhong Beichen (President) Mr. Li Xiaobin Mr. Hu Weimin REGISTERED OFFICE Mr. Fan Shubin Room 3071, 3/F Office, Block 4, No. 13 Kaifang East Road, Huairou District, Non-Executive Director Beijing, PRC Mr. Su Jian BEIJING HEADQUARTERS Independent Non-Executive Directors F17, Red Goldage, No. 2, Guang Ning Bo Street, Mr. Li Wang Beijing, PRC Mr. Wong Yik Chung, John Mr. Liu Xin HONG KONG OFFICE AUDIT COMMITTEE Suites 4602–05, One Exchange Square, Central, Hong Kong Mr. Wong Yik Chung, John (Chairman) Mr. Li Wang Mr. Liu Xin WEBSITE http://www.bjcapitalland.com REMUNERATION COMMITTEE Mr. Liu Xin (Chairman) AUDITORS Mr. Li Songping PricewaterhouseCoopers Zhong Tian LLP Mr. Wong Yik Chung, John LEGAL ADVISERS NOMINATION COMMITTEE As to Hong Kong law: Mr. Liu Xin (Chairman) Norton Rose Fulbright Hong Kong Mr. Li Songping Mr. Wong Yik Chung, John As to PRC law: JunZeJun Law Office STRATEGIC COMMITTEE Mr. Li Songping (Chairman) PRINCIPAL BANKERS Mr. Zhong Beichen China Construction Bank Mr. Liu Xin Agricultural Bank of China China Merchants Bank SUPERVISORS Bank of China Bank of Communications Mr. Deng Wenbin Industrial Bank Ms. Tang Yanan Industrial and Commercial Bank of China Mr. Jiang Hebin The Hong Kong and Shanghai Banking Corporation SECRETARY OF THE BOARD OF China Development Bank DIRECTORS Ms. Qin Yi 2 BEIJING CAPITAL LAND LTD. Annual Report 2018 LISTING INFORMATION STOCK CODE FOR H SHARE Hong Kong Stock Exchange 2868 Reuters 2868.HK Bloomberg 2868HK BOARD LOT SIZE H Share 2,000 H SHARE REGISTRAR Computershare Hong Kong Investor Services Limited Shops 1712–1716, 17th Floor, Hopewell Centre, 183 Queen’s Road East, Wanchai Hong Kong Telephone: (852) 2862 8628 Fax: (852) 2529 6087 LISTED BOND INFORMATION Hong Kong Stock Exchange Security Code USD450,000,000 7.125% Senior Perpetual Capital Securities 5848 USD400,000,000 3.875% guaranteed notes due 2020 5362 USD400,000,000 3.875% guaranteed notes due 2021 4412 Shanghai Stock Exchange Security Code RMB3,000,000,000 4.58% corporate bonds by public offering due 2020 122376 RMB700,000,000 6.10% corporate bonds by private placement due 2019 135383 RMB2,300,000,000 4.20% corporate bonds by private placement due 2021 135384 RMB2,300,000,000 5.70% corporate bonds by private placement due 2019 135521 RMB1,700,000,000 4.26% corporate bonds by private placement due 2021 135522 RMB1,510,000,000 5.90% corporate bonds by private placement due 2019 135636 RMB1,000,000,000 3.84% corporate bonds by private placement due 2021 135637 RMB1,000,000,000 5.70% corporate bond by private placement due 2021 150278 RMB2,000,000,000 5.84% corporate bonds by private placement due 2023 150279 RMB1,500,000,000 5.80% corporate bonds by private placement due 2021 150540 RMB500,000,000 5.94% corporate bonds due by private placement in 2023 150541 RMB2,500,000,000, 4.89% corporate bonds by public offering due 2023 143812 RMB1,500,000,000 4.16% corporate bonds by public offering due 2021 155071 RMB1,000,000,000 4.50% corporate bonds by public offering due 2023 155072 INVESTOR RELATIONS CONTACT Email address: [email protected] BEIJING CAPITAL LAND LTD. Annual Report 2018 3 LISTING INFORMATION H SHARE INFORMATION Year 2018 Year 2017 Total Price Trading Price Total High Low Volume High Low Trading Volume (HK$) (HK$) (No. of Shares) (HK$) (HK$) (No. of Shares) First Quarter 5.51 3.88 392,753,849 4.02 2.91 350,454,748 Second Quarter 4.82 3.17 244,174,810 3.98 3.30 213,570,938 Third Quarter 3.61 2.77 222,168,269 4.97 3.62 277,156,635 Fourth Quarter 3.14 2.47 151,558,857 4.80 3.74 131,117,800 Closing share price as at 31 December 2014: HK$2.94. Closing share price as at 31 December 2015: HK$3.48. Closing share price as at 31 December 2016: HK$2.91. Closing share price as at 29 December 2017: HK$4.06. Closing share price as at 31 December 2018: HK$2.81. 4 BEIJING CAPITAL LAND LTD. Annual Report 2018 FINANCIAL HIGHLIGHTS FIVE YEAR FINANCIAL SUMMARY NOTE 1 (in RMB’000 unless otherwise stated) Year ended 31 December 2018 2017 2016 2015 2014 (Restated) (Restated) Revenue 23,257,053 21,292,040 20,349,404 16,000,519 10,165,843 Total profit 3,159,963 3,839,317 3,938,468 3,985,486 3,120,949 Income tax expenses (742,874) (1,042,520) (1,074,474) (1,022,018) (726,694) Net profit 2,417,089 2,796,797 2,863,994 2,963,468 2,394,255 Attributable to: Equity holders of the Company 1,922,932 2,112,580 2,017,558 2,056,050 1,820,267 Non-controlling interests 494,157 684,217 846,436 907,418 573,988 2,417,089 2,796,797 2,863,994 2,963,468 2,394,255 As at 31 December 2018 2017 2016 2015 2014 (Restated) (Restated) Total assets 169,716,823 141,421,169 119,459,640 107,791,948 80,697,226 Total liabilities 131,516,141 109,489,636 91,908,938 82,134,092 57,916,333 Net assets 38,200,682 31,931,533 27,550,702 25,657,856 22,780,893 Note: 1. The table summarises the results, assets and liabilities of the Group. 2. The figures presented are prepared in accordance with Accounting Standards for Business Enterprises or CAS of PRC. 3. The Group completed the transactions of business combination involving enterprises under common control in 2017, and the financial information of the Group for the year ended 31 December 2016 and 2015 were restated accordingly. The financial information of the Group for the year ended 31 December 2017 and 2014 were not restated. The published results and the statement of assets and liabilities may not comparable. BEIJING CAPITAL LAND LTD. Annual Report 2018 5 Heilongjiang Jilin Xinjiang Shenyang Liaoning Inner Mongolia Beijing Tianjin Hebai Yantai Ningxia PROPERTY Shanxi Jinan Qingdao Qinghai Shandong PORTFOLIO Gansu Zhengzhou Jiangsu Shaanxi Zhenjiang Henan Jiangyin Xi’an Hefei Wuxi Kunshan Huzhou Tibet Shanghai Sichuan Hubei Wuhan Anhui Hangzhou Chengdu Zhejiang Chongqing Nanchang Changsha Jiangxi Hunan Kunming Guizhou Fujian Yunnan Guangdong Xiamen Taiwan Guangxi Guangzhou Foshan Shenzhen Nanning Macao Hong Kong Hainan Wanning Heilongjiang Jilin Xinjiang Shenyang Liaoning Inner Mongolia Beijing Tianjin Hebai Yantai Ningxia Shanxi Jinan Qingdao Qinghai Shandong Gansu Zhengzhou Jiangsu Shaanxi Zhenjiang Henan Jiangyin Xi’an Hefei Wuxi Kunshan Huzhou Tibet Shanghai Sichuan Hubei Wuhan Anhui Hangzhou Chengdu Zhejiang Chongqing Nanchang Changsha Jiangxi Hunan Kunming Guizhou Fujian Yunnan Guangdong Xiamen Taiwan Guangxi Guangzhou Foshan Shenzhen Nanning Brisbane Macao Hong Kong Sydney Hainan Wanning Australia Beijing 23.1% Chongqing 8.5% Kunshan 4.4% Tianjin 17.6% Chengdu 3.1% Huzhou 0.8% Shanghai 6.3% Xi’an 3.2% Wuxi 0.3% Hangzhou 2% Shenyang 4.6% Jiangyin 0.4% Shenzhen 0.4% Qingdao 1.2% Wanning 1.1% Guangzhou 3.1% Yantai 0.2% Kunming 2.5% Foshan 0.7% Zhenjiang 0.1% Sydney/Brisbane 0.2% Capital Outlets 16.2% PROPERTY PORTFOLIO INVESTMENT PROPERTIES Total Above Ground Total GFA GFA Attributable Site Area of Land of Land Project Location Type Interest of Land Bank Bank (sq.m.) (sq.m.) (sq.m.) 1 Fangshan Capital Outlets Fangshan District, Beijing Commercial 71.79% 90,766 196,490 196,490 2 Huzhou Capital Outlets Taihu Lake Resort, Huzhou, Zhejiang Province Commercial 71.79% 214,317 54,700 54,700 3 Wanning Capital Outlets Liji Town, Wanning District, Hainan Province Commercial 55% 199,807 103,200 103,200 4 Kunshan Capital Outlets The East New Town, Kunshan, Jiangsu Province Commercial 71.79% 93,026 100,530 100,530 5 Nanchang Capital Outlets Nanchang, Jiangxi Province Commercial 86,987 158,070 158,070 Site A 71.79% 56,833 129,700 129,700 Site B 28.72% 30,153 28,370 28,370 6 Hangzhou Capital Outlets Fuyang District, Hangzhou, Zhejiang Province Commercial 71.79% 101,691 112,280 112,280 7 Wuhan Capital Outlets East Lake High-tech Development Zone, Wuhan, Hubei Commercial 71.07% 89,757 107,560 107,560 Province 8 Changsha Capital Outlets Xiangjiang New District, Changsha, Hunan Province Commercial 21.54% 71,850 112,070 112,070 9 Xi’an Capital Outlets Xi’an Hi-Tech Industries Development Zone, Xi’an, Commercial 71.79% 81,301 118,840 118,840 Shaanxi Province 10 Zhengzhou Capital Outlets Zhengzhou, Henan Province Commercial 71.79% 80,790 96,580 96,580 11 Jinan Capital Outlets Tangye New Town, Licheng District, Jinan, Shandong Commercial 71.79% 114,929 121,520 121,520 Province 12 Hefei Capital Outlets Binhu New Area, Hefei, Anhui Province Commercial 71.79% 87,913 96,270 96,270 13 Chongqing Capital Outlets Lujiao New Town, Banan District, Chongqing Commercial 71.79% 74,349 110,560 110,560 14 Kunming Capital Outlets Wuhua District, Kunming, Yunnan Province Commercial 61.02% 67,920 136,040 136,040 15 Qingdao Capital Outlets Qingdao High-tech Zone, Shandong Province Commercial 71.79% 93,972 97,130 97,130 16 Nanning Capital Outlets Xingning district, Nanning, Guangxi Zhuang Commercial 71.79% 101,974 137,800 137,800 Autonomous Region 17 Xiamen Capital Outlets Xiang ‘an District, Xiamen, Fujian Province Commercial 71.79% 55,657 128,480 128,480 18 Beijing Haidian Yongfeng Haidian District, Beijing Office/Apartment 50% 59,750 96,029 63,141 Industrial Base Project Site B2 19 Sunshine Building Xicheng District, Beijing Office/ 35% 8,840 52,095 34,163 Commercial 20 Capital Group Plaza Dongcheng District, Beijing Office/ 100% 7,069 48,431 35,867 Commercial 8 BEIJING CAPITAL LAND LTD.