Yuexie_ppt_ar16_full_covera_0403_12mm_E.pdf 1 13/4/2017 下午7:53 C M Y CM MY CY CMY K CONTENTS Corporate Structure 2 Report of the Directors 66 Corporate Information 3 Risk Management Report 74 Financial Highlights 4 Independent Auditor’s Report 82 Key Events of the Year 6 Consolidated Income Statement 87 Chairman’s Statement 10 Consolidated Statement of Management Discussion and Analysis 18 Comprehensive Income 88 Property Development 36 Consolidated Balance Sheet 89 Investor Relations Report 50 Consolidated Statement of Cash Flows 91 Awards and Recognitions 52 Consolidated Statement of Changes Directors’ Profiles 53 in Equity 94 Corporate Governance Report 56 Notes to the Financial Statements 96 Group Structure 170 Yuexiu Property Company Limited | Annual Report 2016 2 CORPORATE STRUCTURE As at 31 December 2016 GUANGZHOU YUEXIU HOLDINGS LIMITED 100% YUE XIU ENTERPRISES (HOLDINGS) LIMITED 49.67% YUEXIU PROPERTY COMPANY LIMITED (Stock Code: 00123) 39.1% YUEXIU REAL ESTATE INVESTMENT TRUST (Stock Code: 00405) Yuexiu Property Company Limited | Annual Report 2016 CORPORATE INFORMATION 3 BOARD OF DIRECTORS REGISTERED OFFICE Executive directors 26th Floor Mr Zhang Zhaoxing (Chairman) Yue Xiu Building Mr Zhu Chunxiu 160 Lockhart Road Mr Lin Zhaoyuan Wanchai, Hong Kong Mr Li Feng Mr Ou Junming SHARE REGISTRAR Tricor Abacus Limited Independent non-executive directors & Level 22, Hopewell Centre audit committee members 183 Queen’s Road East Mr Yu Lup Fat Joseph Hong Kong Mr Lee Ka Lun Mr Lau Hon Chuen Ambrose LISTING EXCHANGE Shares COMPANY SECRETARY The Stock Exchange of Hong Kong Limited Mr Yu Tat Fung Stock codes AUDITOR The Stock Exchange of Hong Kong Limited - 00123 PricewaterhouseCoopers Reuters – 123.HK Certified Public Accountants Bloomberg – 123 HK HONG KONG LEGAL ADVISER Notes and Bonds The Stock Exchange of Hong Kong Limited Baker & McKenzie USD500,000,000 4.50 per cent. Notes due 2023 PRINCIPAL BANKERS (Code: 4597) Bank of China (Hong Kong) Limited HKD2,300,000,000 6.10 per cent. Notes due 2029 Hang Seng Bank Limited (Code: 5846) The Hongkong and Shanghai Banking Corporation Limited Shanghai Stock Exchange Industrial and Commercial Bank of China (Asia) Limited RMB1,000,000,000 2.95 per cent. Corporate Bonds Wing Lung Bank Limited due 2019 (16穗建01 Code: 136600) DBS Bank Ltd. RMB2,000,000,000 3.00 per cent. Corporate Bonds China Construction Bank (Asia) Corporation Limited due 2021 (16穗建02 Code: 136601) Agricultural Bank of China Limited RMB2,500,000,000 2.97 per cent. Corporate Bonds due 2022 (16穗建03 Code: 136678) ADR DEPOSITARY BANK RMB500,000,000 3.19 per cent. Corporate Bonds The Bank of New York Mellon due 2021 (16穗建04 Code: 136679) American Depositary Receipts RMB1,500,000,000 2.95 per cent. Corporate Bonds 620 Avenue of the Americas, 6th Floor due 2021 (16穗建05 Code: 136732) New York, NY 10011, USA RMB500,000,000 3.15 per cent. Corporate Bonds Telephone : (646) 885 3218 due 2023 (16穗建06 Code: 136733) Facsimile : (646) 885 3043 INVESTOR RELATIONS WEBSITES TO ACCESS For further information about COMPANY INFORMATION Yuexiu Property Company Limited, http://www.yuexiuproperty.com please contact: http://www.irasia.com/listco/hk/yuexiuproperty Mr Michael Jiang http://www.hkexnews.hk Telephone : (852) 2593 2319 Facsimile : (852) 2511 0832 Email : [email protected] Yuexiu Property Company Limited | Annual Report 2016 4 FINANCIAL HIGHLIGHTS INCOME STATEMENT HIGHLIGHTS For the year ended 31 December RMB’000 2016 2015 2014 2013 2012 As restated Revenue 20,871,021 22,115,677 15,701,739 14,208,873 8,119,945 Gross profit 4,339,601 4,658,816 4,138,021 4,104,453 3,857,881 Profit attributable to equity holders – from continuing operations 1,540,154 1,012,889 2,471,255 2,880,343 2,481,834 Basic earnings per share – from continuing operations (RMB) 0.1242 0.0817 0.2329 0.2901 0.2672 BALANCE SHEET HIGHLIGHTS As of 31 December RMB’000 2016 2015 2014 2013 2012 As restated Total cash (including cash, cash equivalents 22,021,982 15,168,118 12,957,343 8,374,233 9,263,401 and charged bank deposits) Total assets 125,364,916 112,024,654 93,075,353 78,070,648 69,996,933 Total assets less current liabilities 72,438,260 69,490,564 59,116,252 46,280,399 42,440,452 Shareholders’ equity 30,623,986 29,618,176 29,103,975 24,175,205 22,158,140 Shareholders’ equity per share (RMB) 2.469 2.388 2.347 2.593 2.383 REVENUE GROSS PROFIT (RMB million) (RMB million) Yuexiu Property Company Limited | Annual Report 2016 FINANCIAL HIGHLIGHTS 5 PROFIT ATTRIBUTABLE TO EQUITY TOTAL ASSETS HOLDERS FROM CONTINUING (RMB million) OPERATIONS (RMB million) SHAREHOLDERS’ EQUITY SHAREHOLDERS’ EQUITY PER SHARE (RMB million) (RMB) Yuexiu Property Company Limited | Annual Report 2016 6 KEY EVENTS OF THE YEAR The Group successfully acquired The aggregated value of contracted Nansha Phase 10 Land from its sales (including contracted sales by parent company, Guangzhou Yue joint venture projects) recorded by the Xiu Holdings Limited, the effective “ Group was approximately RMB30.25 approach of incubation by the ” billion, reaching a new historical parent – acquisition by property to high level of the Group; the value of increase landbank was successfully contracted sales increased by 21.7% implemented. on a year-on-year basis, and exceeded the full year sales target of RMB25.8 billion. The Group launched two new projects, Guangzhou Starry Haizhu Bay and Guangzhou Starry Sky City, in Guangzhou market and attracted tremendous market attention, sales of both projects were in hot demand and recorded an aggregated value of contracted sales of approximately RMB2.5 billion. The Group successfully implemented the senior management share incentive scheme, which stimulated the organization The Group acquired 11 quality land parcels in 6 vigour effectively, enhanced capital cities, including Guangzhou, Hangzhou, Wuhan efficacy and operation efficiency of human and Qingdao, further strengthened the Group’s resources, and strengthened the organic market presence in key regions, such as Greater growth momentum. Guangzhou, Yangtze River Delta and Central China region. Yuexiu Property Company Limited | Annual Report 2016 KEY EVENTS OF THE YEAR 7 As at the end of 2016, Moody’s, Standard & Poor’s and Fitch have all maintained their investment grade ratings on our Group. The Group continued to be one of the few property developers in China with investment The Group won the “Corporate Governance Gold grade ratings from the above three international rating Award 2016” awarded by “The Asset” Magazine in agencies. Hong Kong for the fifth consecutive year, which was helpful to enhance the reputation and prestige of the Group. The Group capitalized on the opportunities arising from the opening of onshore bond market and successfully issued RMB8.0 billion bonds denominated in Renminbi in the PRC with a The Group successfully secured Pingan weighted average coupon rate of Real Estate as strategic cooperative partner The Group increased efforts to consolidate 2.9963% only, which significantly in the Guangzhou Starry Sky City to further commercial resources, optimized the operation reduced the overall funding cost. of the commercial platform, formulated and deepen cooperation with large-scale financial implemented the “Property - REIT” twin engine institution. model to accelerate the commercial property development of the Group. CHAIRMAN'S STATEMENT Yuexiu Property Company Limited | Annual Report 2016 10 CHAIRMAN’S STATEMENT n 2016, the Group achieved sustainable stable growth Iin business operation by adhering to the key economic work guidelines of the central government to “eliminate inventory, stabilize growth”, conforming to the themes of “upgrading management to enhance capabilities and achieving breakthrough in reforms to promote development” and with the objectives of “revitalizing resources, enhancing capabilities and strengthening commercial projects”. MR ZHANG ZHAOXING Chairman Yuexiu Property Company Limited | Annual Report 2016 CHAIRMAN’S STATEMENT 11 I. BUSINESS REVIEW Economic and Market Environment In 2016, the global economy continued to recover slowly amid instability and uncertainty. The “Brexit” brought a new risk factor for the global economic growth. The U.S. economy experienced strong growth, while the pace of emerging markets and developing economies’ growth was slowing down. Eurozone countries’ and Japan’s economic recovery was very slow despite of their increasing efforts on quantitative easing. In 2016, under the new economic normality, even though China’s economy faced numerous challenges such as stabilizing economic growth, adjusting economic structure, de-stocking and continuous depreciation of Renminbi, industrial and consumption growth remained stable and the year-on-year GDP growth remained at a relatively reasonable level of 6.7%, under the supply-side reforms and the continual release of the effect of the policy for stabilizing economic growth. However, growth in private investments was low and external demand remained weak. There were signs of slowing down in real estate investments, and downward pressure on macroeconomic growth increased. Facing a number of unfavorable internal and external factors, the central government continued to increase its policy support on stabilizing growth, accelerate supply-side reforms, promote urbanization and deepen reforms to generate dividends, resulting in the fundamental trend of a recovering and stable economy in China. In 2016, under the support of multiple favorable policies including cutting down-payment, tax reduction and credit easing, the real estate market in China experienced strong growth in terms of both transaction volumes and prices. The GFA of commodity housing sales for the full year was approximately 1,570 million sq.m., representing a year-on- year increase of 22.5% while commodity housing sales value was approximately RMB11.8 trillion, representing a year- on-year increase of 34.8%. There was obvious progress achieved in “inventory reduction” in the real estate sector, which was a key momentum promoting stable macroeconomic growth. Along with strong growth in real estate sales, differentiation in the property market became more obvious.