ABOUT SUNAC 融創中國控股有限公司 SUNAC China Holdings Limited (the “Company” or “our Company” and together with its subsidiaries, collectively referred to as the “Group”) is specialised in the integrated development of residential and commercial properties and is one of the leading real estate developers in the PRC. In line with its regional focus and high-end positioning strategy, the Company has developed or is developing many high-quality property projects ranging from high-rise residences, townhouses, retail properties and offices in tier 1 cities, tier 2 cities and surrounding cities of tier 1 cities in the PRC. The Company focuses on high-end property development and management business. Guided by its brand positioning of “Passion for Perfection”, the Company has long been providing high-end products to customers. With the aim of becoming the leader of the real estate industry in China, the Company’s pursuit of high-quality products and services never ends. It is always committed to providing a desirable, elegant life experience to its customers through quality products and services. With its accurate judgment of market trends, keen in-sights into consumer demands and emphasis on high product quality, the Company is ready to adopt cutting-edge concepts at the right time to design and develop its projects, and has created an advanced quality control and supervisory system. 融創中國控股有限公司（「本公司」，連同其附屬公司統稱為「本集團」）為中國的領先房地產發展商之一，專業從事住宅及商 業地產綜合開發。本公司堅持區域聚焦和高端精品發展戰略，在中國的一線、二線及環一線城市已發展或正發展眾多優質物業項 目，項目涵蓋高層住宅、聯排別墅、零售物業、寫字樓等多種物業類型。 本公司專注於高端物業的開發和管理，以「至臻，致遠」為品牌方向，持之以恆的為客戶專注打造高端精品物業，立志成為對高 端品質不懈追求的中國房地產行業領跑者。本公司用心為客戶提供大氣舒放、貴氣質感、富有品質的高端生活體驗，不懈追求具 有恆久價值的優質產品和用心週到的服務。基於對市場發展的精準判斷，對消費者需求的敏銳洞悉，以及對高品質的不懈追求， 公司採用先進的設計理念和嚴格的管理監控體系，致力於不斷提升定位、產品規劃設計、建設和服務能力，提升項目綜合品質， 打造精品項目。 CONTENTS 2 Corporate Information 4 Financial Summary 5 Chairman’s Statement 8 Management Discussion and Analysis 27 Biographies of Directors and Senior Management 33 Corporate Governance Report 45 Investor Relations Report 47 Report of the Directors 78 Environmental, Social and Governance Report 94 Independent Auditor’s Report 102 Consolidated Balance Sheet 104 Consolidated Statement of Comprehensive Income 105 Consolidated Statement of Changes in Equity 107 Consolidated Statement of Cash Flows 109 Notes to the Consolidated Financial Statements SUNAC CHINA HOLDINGS LIMITED 1 2017 Annual Report CORPORATE INFORMATION Board of Directors Remuneration Committee Mr. Zhu Jia (Chairman) EXECUTIVE DIRECTORS Mr. Sun Hongbin Mr. Sun Hongbin (Chairman) Mr. Poon Chiu Kwok Mr. Wang Mengde (Chief Executive Officer) Mr. Li Qin Mr. Jing Hong Mr. Ma Lishan Mr. Chi Xun Mr. Tse Chi Wai (resigned with effect from 19 December 2017) Mr. Tian Qiang Mr. Shang Yu Nomination Committee Mr. Huang Shuping Mr. Sun Hongbin (Chairman) Mr. Sun Kevin Zheyi (appointed as Executive Director with Mr. Poon Chiu Kwok effect from 25 May 2017) Mr. Li Qin Mr. Li Shaozhong (retired as Executive Director with Mr. Ma Lishan effect from 22 May 2017) INDEPENDENT NON-EXECUTIVE DIRECTORS Principal Place of Business in Hong Kong 36/F, Tower Two Mr. Poon Chiu Kwok Times Square Mr. Zhu Jia 1 Matheson Street Mr. Li Qin Causeway Bay Mr. Ma Lishan Hong Kong Mr. Tse Chi Wai (resigned with effect from 19 December 2017) Joint Company Secretaries Headquarters and Principal Places of Business in the PRC Mr. Gao Xi Ms. Mok Ming Wai Beijing Office 26/F, Block B, Rongke Wangjing Center Authorized Representatives Wangjing Dong Yuan, Chaoyang District Beijing Mr. Wang Mengde The PRC Ms. Mok Ming Wai Postal code: 100102 Audit Committee Tianjin Office Mr. Poon Chiu Kwok (Chairman) 10/F, Building C7, Magnetic Plaza Mr. Zhu Jia Binshuixi Road, Nankai District Mr. Li Qin Tianjin Mr. Ma Lishan The PRC Mr. Tse Chi Wai (resigned with effect from 19 December 2017) Postal code: 300381 2 SUNAC CHINA HOLDINGS LIMITED 2017 Annual Report CORPORATE INFORMATION Registered Office Auditor 190 Elgin Avenue PricewaterhouseCoopers George Town Certified Public Accountants Grand Cayman KY1-9005 Hong Kong Cayman Islands Principal Bankers Principal Share Registrar and Transfer Office Industrial and Commercial Bank of China SMP Partners (Cayman) Limited Bank of China Royal Bank House - 3rd Floor China Construction Bank 24 Shedden Road, P.O. Box 1586 Agricultural Bank of China Grand Cayman KY1-1110 China CITIC Bank Cayman Islands Ping An Bank China Merchants Bank Hong Kong Share Registrar China Minsheng Bank China Bohai Bank Computershare Hong Kong Investor Services Limited Shanghai Pudong Development Bank 17M Floor Industrial Bank Hopewell Centre Bank of Tianjin ’ 183 Queen s Road East HSBC Wanchai Hang Seng Bank Limited Hong Kong Stock Code Legal Advisers HKEx: 01918 As to Hong Kong law: Sidley Austin Company’s Website As to PRC law: www.sunac.com.cn Jincheng Tongda & Neal Law Firm Financial Calendar 2017 Annual Results Announcement 29 March 2018 Closure of Register of Members for 7 June 2018- Determining Rights to Attend 12 June 2018 2018 Annual General Meeting 2018 Annual General Meeting 12 June 2018 Closure of Register of Members for 19 June 2018- Determining Entitlement to 22 June 2018 Final Dividend Distribution of Final Dividend 8 August 2018 SUNAC CHINA HOLDINGS LIMITED 3 2017 Annual Report FINANCIAL SUMMARY CONSOLIDATED RESULTS 2017 2016 2015 2014 2013 Revenue (RMB million) 65,874 35,344 23,011 25,072 30,837 Gross profit (RMB million) 13,628 4,848 2,857 4,342 7,177 Gross margin (%) 20.7% 13.7% 12.4% 17.3% 23.3% Profit for the year (RMB million) 11,664 2,938 3,608 3,233 3,494 Profit attributable to owners of the Company (RMB million) 11,004 2,478 3,298 3,222 3,178 Cash and cash equivalents (including restricted cash) (RMB million) 96,719 69,813 27,058 25,041 16,009 Dividend per share (RMB) 0.501 0.257 0.194 0.19 0.191 Dividends (RMB million) 2,200 991 660 646 636 CONSOLIDATED FINANCIAL POSITION 2017 2016 2015 2014 2013 Total assets (RMB million) 623,102 293,183 115,509 13,914 9,840 Total liabilities (RMB million) 562,464 257,772 96,089 10,807 5,550 Total equity (RMB million) 60,638 35,411 19,420 3,107 4,290 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017 4 SUNAC CHINA HOLDINGS LIMITED 2017 Annual Report CHAIRMAN’S STATEMENT Dear Shareholders, I am pleased to present to you the business review of the Group for the year ended 31 December 2017 and outlook for 2018. Review of 2017 In 2017, the government continued to implement proactive fiscal policies and prudent monetary policies, put forth effort to adjust and optimize the economic structure, and thus achieved high-quality economic growth. In 2017, the government adhered to the policy idea in respect of the real estate industry that housing is for people to live in, implemented differentiated market regulation, and accelerated the establishment and improvement of the long-term mechanism to promote the stable and healthy development of the real estate market; meanwhile, under the macroeconomic environment of overall economic deleveraging, the credit policies for the real estate industry have been continuously tightened. The government’s regulation on the overheated real estate market was conducive to the long-term healthy and stable development of the industry, and had achieved remarkable results. The rapid increase in housing prices in most cities had been effectively suppressed since the second quarter, and housing prices in some cities had begun to experience reasonable adjustments since the second half of the year, although the overall market volume remained relatively stable. In terms of the land market, the government also took measures to cool down the furious bidding, auction and listing market, and the increase in land prices had been gradually controlled in the second half of the year. However, due to the better destocking level in the industry and the strong desire of many companies to supplement their land bank, land prices remained relatively high. In 2017, the Group achieved significant growth in operating results with revenue amounted to approximately RMB65.87 billion, representing an increase of approximately 86.4% year-on-year, and gross profit was approximately RMB13.63 billion, representing an increase of approximately 181.1% year-on-year. Gross profit margin also recovered remarkably and increased significantly to 20.7% from 13.7% in 2016, representing an increase of approximately 7 percentage points. Profit attributable to owners of the Company reached approximately RMB11.00 billion, representing a substantial growth of 344% year-on-year. Core net profit amounted to approximately RMB11.12 billion, representing a significant increase of 259.1% year-on-year. As the Group’s profits increased rapidly, its financial performance became more stable and had more abundant liquidity. As of 31 December 2017, carrying amount of cash of the Group reached approximately RMB96.72 billion, representing an increase of approximately 38.5% year-on- year, the short-term debt coverage reached more than 1.2 times. Since the beginning of second half of the year, with the realization of profits and the high quality of equity financing, the Group’s net assets increased significantly to RMB60.64 billion, representing an increase of approximately 71.2%. With a prudent investment strategy adopted in 2017, Group’s net gearing ratio at the end of the year dropped by about 60 percentage points as compared to that of 30 June 2017, and its leverage ratio also decreased significantly. Given the remarkable performance of the Group and to bring better return for our Shareholders, the Board proposed to declare a final dividend of RMB0.501 per share for 2017, representing an increase of approximately 94.9% year-on-year. In 2017, with the support from the Group’s adequate and high-quality land bank, the Group continued to increase its sales efforts, and achieved a contracted sales amount of approximately RMB362.01 billion for the year, representing an increase of approximately 140.3% year-on-year; as a result, the industry ranking of the Group leaped up from seventh to fourth.