ANNUAL REPORT 2014 Stock Code: 2868 CONTENTS CONTENTS 2 Corporate Information 72 Corporate Governance Report 3 Listing Information 85 Report of the Supervisory Committee 4 Financial Highlights 86 Auditor’s Report 5 Pr operty Portfolio 87 Consolidated and Company Balance Sheets 16 Corporate Milestones During the Year 89 Consolidated and Company Income Statements 18 Chairman’s Statement 90 Consolidated and Company Cash Flow Statements 24 Management Discussion and Analysis 92 Consolidated Statement of Changes in Owner’s Equity 60 Biographical Details of Directors, Supervisors and 94 Company Statement of Change in Owner’s Equity Senior Management 95 Notes to the Financial Statements 65 Dir ectors’ Report CORPORATE INFORMATION CORPORATE INFORMATION DIRECTORS COMPANY SECRETARY Executive Directors Mr. Lee Sze Wai Mr. Liu Xiaoguang (Chairman) Mr. Tang Jun (President) AUTHORISED REPRESENTATIVES Mr. Zhang Shengli Mr. Tang Jun Mr. Lee Sze Wai Non-Executive Directors Mr. Wang Hao Mr. Song Fengjing REGISTERED OFFICE Mr. Shen Jianping Room 501, No.1, Yingbinzhong Road, Independent Non-Executive Directors Huair ou District, Beijing, PRC Mr. Ng Yuk Keung Mr. Wang Hong Mr. Li Wang BEIJING HEADQUARTERS F17, Red Goldage, AUDIT COMMITTEE No. 2, Guang Ning Bo Street, Beijing, PRC Mr. Ng Yuk Keung (Chairman) Mr. Wang Hong Mr. Li Wang HONG KONG OFFICE Suites 2906-08, AIA Central, REMUNERATION COMMITTEE 1 Connaught Road Central, Hong Kong Mr. Wang Hong (Chairman) Mr. Wang Hao WEBSITE Mr. Ng Yuk Keung http://www.bjcapitalland.com NOMINATION COMMITTEE Mr. Liu Xiaoguang (Chairman) AUDITORS Mr. Ng Yuk Keung PricewaterhouseCoopers Zhong Tian LLP Mr. Wang Hong LEGAL ADVISERS STRATEGIC COMMITTEE As to Hong Kong law: Mr. Liu Xiaoguang (Chairman) Norton Rose Fulbright Hong Kong Mr. Tang Jun Mr. Wang Hong As to PRC law: JunZeJun Law Offices SUPERVISORS Mr. Liu Yongzheng PRINCIPAL BANKERS Mr. Fan Shubin China Development Bank Mr. Jiang Hebin China Construction Bank Agricultural Bank of China SECRETARY OF THE BOARD OF China Merchants Bank Bank of Communications DIRECTORS Industrial and Commercial Bank of China Mr. Hu Weimin Bank of China 2 BEIJING CAPITAL LAND LTD. ANNUAL REPORT 2014 LISTING INFORMATION LISTING INFORMATION STOCK CODE FOR H SHARE Hong Kong Stock Exchange 2868 Reuters 2868.HK Bloomberg 2868: HK 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 INVESTOR RELATIONS CONTACT Email address: [email protected] H SHARE INFORMATION Year 2014 Year 2013 Total Total Price Trading Price Trading High Low Volume High Low Volume (HK$) (HK$) (No. of Shares) (HK$) (HK$) (No. of Shares) First Quarter 3.30 2.58 216,169,767 3.81 2.80 260,124,851 Second Quarter 3.06 2.39 102,601,741 3.54 2.70 281,246,634 Third Quarter 3.00 2.48 99,263,084 3.09 2.68 138,576,215 Fourth Quarter 2.96 2.63 158,175,559 2.85 2.55 103,237,824 Closing share price as at 31 December 2010: HK$2.60. Closing share price as at 30 December 2011: HK$1.53. Closing share price as at 31 December 2012: HK$3.22. Closing share price as at 31 December 2013: HK$2.64. Closing share price as at 31 December 2014: HK$2.94. BEIJING CAPITAL LAND LTD. ANNUAL REPORT 2014 3 FINANCIAL HIGHLIGHTS FINANCIAL HIGHLIGHTS FIVE YEAR FINANCIAL SUMMARY NOTE 1 (in RMB’000 unless otherwise stated) Year ended 31 December 2014 Note 2 2013 Note 2 2012 Note 2 2011 Note 2 2010 Note 2 (Restated) Revenue 10,057,967 11,320,840 9,134,054 7,523,321 6,493,795 Total profit 2,946,181 2,624,192 1,898,986 1,679,407 1,463,156 Income tax expenses (682,452) (710,469) (565,323) (455,852) (375,231) Net profit 2,263,729 1,913,723 1,333,663 1,223,555 1,060,925 Attributable to: Equity holders of the Company 1,689,741 1,522,006 1,110,925 998,578 918,155 Non-contr olling interests 573,988 391,717 222,738 224,977 142,770 2,263,729 1,913,723 1,333,663 1,223,555 1,060,925 As at 31 December 2014 2013 2012 2011 2010 Total assets 78,679,556 56,190,688 47,536,488 37,794,202 30,513,787 Total liabilities 57,266,030 39,962,204 37,533,477 29,482,884 22,883,841 Net assets 21,413,526 16,228,484 10,003,011 8,311,318 7,629,946 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. 4 BEIJING CAPITAL LAND LTD. ANNUAL REPORT 2014 Property Portfolio PROPERTY PORTFOLIO Beijing Shanghai Tianjin Wuxi 3% Shenyang Jiangyin 11% 17% Qingdao Zhenjiang Yantai Huzhou 8% Chengdu Kunshan 1% Chongqing Wanning 1% 16% 1% Xi’an 6% 6% Heilongjiang 10% 12% 2% 4% 2% Jilin Xinjiang Liaoning Shenyang Inner Mongolia Beijing Tianjin Hebai Yantai Ningxia Shanxi Qingdao Qinghai Shandong Gansu Xi’an Jiangsu Shaanxi Zhenjiang Henan Jiangyin Wuxi Kunshan Tibet Sichuan Huzhou Shanghai Chengdu Hubei Anhui Chongqing Zhejiang Hunan Jiangxi Guizhou Fujian Yunnan Guangxi Guaugdong Taiwan Hong Kong Macao Hainan Wanning BEIJING CAPITAL LAND LTD. ANNUAL REPORT 2014 5 PROPERTY PORTFOLIO 6 BEIJING CAPITAL LAND LTD. ANNUAL REPORT 2014 BEIJING CAPITAL LAND LTD. ANNUAL REPORT 2014 7 PROPERTY PORTFOLIO HOTEL PROPERTY Appr oximate Appr oximate Expected/ Attributable Approximate GFA Site Area Achieved No. Pr oject Location Type Inter est Site Area to be sold to be sold Completion (sq. m) (sq. m) (sq. m) (year) 1 Holiday Inn Central Plaza Xicheng District, Beijing Hotel 100% 7,177 50,712 50,712 Completed 2 InterContinental Xicheng District, Beijing Hotel 34% 10,658 58,161 42,900 Completed Financial Street Beijing INVESTMENT PROPERTY Appr oximate Appr oximate Expected/ Attributable Approximate GFA Site Area Achieved No. Pr oject Location Type Inter est Site Area to be sold to be sold Completion (sq. m) (sq. m) (sq. m) (year) 3 Beijing Capital Outlets Fangshan District, Beijing Commer cial 100% 95,652 170,651 130,751 108,036 68,136 Completed 62,615 62,615 2016 4 Huzhou Capital Outlets Taihu National Tourism Commer cial 100% 302,713 185,146 175,400 Vacation Zone, Jiangsu Pr ovince 97,542 97,542 Completed 87,604 77,858 2017 5 Hainan Capital Outlets Liji Town, Wanning District, Commer cial 55% 199,807 103,180 100,879 Hainan Province 56,638 54,337 Completed 46,542 46,542 2015 6 Kunshan Capital Outlets The East New Town, Commer cial 100% 93,562 101,300 101,300 Kunshan, Jiangsu Province 50,200 50,200 2015 51,100 51,100 2016 7 Xi’an Capital Outlets Economic & Technological Commer cial 100% 27,343 50,000 50,000 2018 Development Zone, Xi’an, Shaanxi Province 8 Sunshine Building Xicheng District, Beijing Commer cial/ 35% 8,840 52,095 34,163 Completed Of fice 9 Lize Financial Business Fengtai District, Beijing Commer cial 34,822 253,990 188,000 District Project 68.5% 48,581 23,697 2017 50% 205,409 164,303 2017 8 BEIJING CAPITAL LAND LTD. ANNUAL REPORT 2014 PROPERTY PORTFOLIO PROPERTY DEVELOPMENT Approximate Approximate Expected/ Attributable Appr oximate GFA Site Area Achieved No. Pr oject Pr oject Name Location Type Inter est Site Area to be sold to be sold Completion (sq. m) (sq. m) (sq. m) (year) 10 Beijing Yuyuantan The Reflections Haidian District, Beijing Residential 100% 17,900 12,331 12,048 Completed Project 11 Beijing Hujialou Xanadu Chaoyang District, Beijing Residential/ 100% 86,300 31,949 23,706 Completed Project Commer cial 12 Beijing Huang Xin Ealing Fangshan District, Beijing Residential 95% 175,489 215,929 191,499 Zhuang Project 55,276 55,276 Completed 8,916 4,090 2015 151,737 132,133 2017 13 Beijing Miyun Yun Beijing Landscape Miyun District, Beijing Residential 100% 393,664 144,697 133,240 Feng Shan Zhuang Villa Project 60,746 49,289 Completed 83,951 83,951 2017 14 Beijing Changyang Ballet Town Fangshan District, Beijing Residential 100% 137,684 6,230 5,393 Completed Town Project 15 Beijing Changyang Novotown Fangshan District, Beijing Residential/ 100% 90,389 7,361 4,930 Land No.4 Project Commer cial 3,202 771 Completed 4,159 4,159 2015 16 Bejing Daxingsun Enjoyable City Daxing District, Beijing Residential/ 100% 99,000 54,124 50,142 2015 Village Project Apartment/ Commer cial 17 Beijing Pinggu Enjoyable River Pinggu District, Beijing Residential/ 10% 82,785 35,836 30,448 2015 Daxingzhuang Commer cial Project 18 Beijing Zhaoquanying Passion World Shunyi District, Beijing Apartment/ 100% 27,121 42,824 34,144 2016 F1-01 Project Commer cial 19 Beijing Zhaoquanying Enjoyable Bay Shunyi District, Beijing Residential/ 100% 139,035 148,317 103,725 2017 F02 Project Apartment/ Commer cial 20 Beijing Zhaoquanying Enjoyable Trees Shunyi District, Beijing Residential/ 100% 110,845 170,934 103,686 F04 Project Apartment 42,195 32,005 2016 128,739 71,681 2017 BEIJING CAPITAL LAND LTD. ANNUAL REPORT 2014 9 PROPERTY PORTFOLIO Approximate Approximate Expected/ Attributable Appr oximate GFA Site Area Achieved No. Pr oject Pr oject Name Location Type Inter est Site Area to be sold to be sold Completion (sq. m) (sq. m) (sq. m) (year) 21 Lize Financial Fengtai District, Beijing Apartment/Office 45,211 179,786 168,000 Business District Project F02 68.5% 132,422 126,500 2017 F05 100% 47,364 41,500 2017 22 Beijing Fangshan Fangshan District, Beijing Residential/ 100% 56,138 171,184 156,056 2017 Gaojiao Park Apartment/ Project Commercial 23 Beijing Haidian Haidian District, Beijing Residential/ 25% 5,379 22,041 16,136 2017 Taipingzhuang Apartment Project 24 Tianjin Banshan Tianjin First City Tanggu District, Tianjin Residential/ 100% 233,336 28,590 8,781 Completed Project Commer cial 25 Tianjin Huaming Noble