From the land of Henan, for the people of China. 2015 Annual Report 2015 2015 年度報告 2015 年度報告 2015 ANNUAL REPORT CONTENTS CORPORATE INFORMATION 2 DIRECTORS’ REPORT 68 CORPORATE PROFILE 4 INDEPENDENT AUDITOR’S REPORT 80 CHAIRMAN’S STATEMENT 9 CONSOLIDATED INCOME STATEMENT 82 FINANCIAL HIGHLIGHTS 12 CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME 83 MANAGEMENT DISCUSSION AND ANALYSIS 13 CONSOLIDATED STATEMENT OF FINANCIAL POSITION 84 I. FINANCIAL REVIEW 14 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY 86 II. REVIEW OF OPERATIONS 18 CONSOLIDATED CASH FLOW STATEMENT 88 III. BUSINESS OUTLOOK 38 NOTES TO THE FINANCIAL STATEMENTS 91 INVESTOR RELATIONS REPORT 43 SUMMARY OF FINANCIAL INFORMATION 183 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 47 CORPORATE GOVERNANCE REPORT 53 PROFILE OF DIRECTORS AND SENIOR MANAGEMENT 64 Xuchang Yanling Eco-City Corporate Information BOARD OF DIRECTORS COMPANY SECRETARY Executive Directors Mr. Kwok Pak Shing Mr. Wu Po Sum (Chairman) Ms. Yan Yingchun REGISTERED OFFICE Cricket Square Non-executive Directors Hutchins Drive Mr. Lucas Ignatius Loh Jen Yuh (Vice-Chairman) P.O. Box 2681 Mr. Puah Tze Shyang (appointed on 1 April 2015) Grand Cayman Mr. Leow Juan Thong Jason (resigned on 1 April 2015) KY1-1111 Ms. Wu Wallis (alias Li Hua) Cayman Islands Independent Non-executive Directors PRINCIPAL PLACE OF BUSINESS IN THE PRC Mr. Cheung Shek Lun Block E, Jianye Office Building Mr. Xin Luo Lin Nongye East Road, Zhengzhou City Mr. Muk Kin Yau Henan Province, the PRC BOARD COMMITTEES PRINCIPAL PLACE OF BUSINESS IN HONG KONG Audit Committee Room 7701B–7702A Mr. Cheung Shek Lun (Chairman) 77th Floor, International Commerce Centre Mr. Xin Luo Lin 1 Austin Road West Mr. Lucas Ignatius Loh Jen Yuh Kowloon, Hong Kong Remuneration Committee PRINCIPAL SHARE REGISTRAR AND Mr. Xin Luo Lin (Chairman) TRANSFER OFFICE Mr. Wu Po Sum Royal Bank of Canada Trust Company (Cayman) Limited Mr. Cheung Shek Lun 4th Floor, Royal Bank House, 24 Shedden Road, George Town, Nomination Committee Grand Cayman KY1-1110, Cayman Islands Mr. Wu Po Sum (Chairman) Mr. Cheung Shek Lun HONG KONG BRANCH SHARE REGISTRAR Mr. Xin Luo Lin AND TRANSFER OFFICE Computershare Hong Kong Investor Services Limited CHIEF EXECUTIVE OFFICER Shops 1712–1716 Mr. Chen Jianye 17th Floor, Hopewell Centre 183 Queen’s Road East, Wanchai, Hong Kong Central China Real Estate Limited 02 Corporate Information (Continued) PRINCIPAL BANKERS WEBSITE Bank of China (Hong Kong) Limited www.centralchina.com China Construction Bank Corporation Industrial and Commercial Bank of China (Asia) Limited SHAREHOLDERS’ INFORMATION Share listing LEGAL ADVISERS The company’s shares are listed on the Main Board of As to Hong Kong Law The Stock Exchange of Hong Kong limited Li & Partners Ordinary Shares (as at 31 December 2015) As to Cayman Islands Law Shares outstanding : 2,442,270,760 shares Conyers Dill & Pearman (Cayman) Limited Nominal value : HK$0.10 per share INDEPENDENT AUDITORS INVESTOR RELATIONS CONTACT KPMG Email address : [email protected] Certified Public Accountants HEAD OF INVESTOR RELATION & CHIEF INVESTMENT OFFICER Mr. Mai Vinh FINANCIAL CALENDAR 2015 annual results announcement : 31 March 2016 Book closure period (for determining shareholders’ : 13 May 2016 to 17 May 2016 (both days inclusive) eligibility to attend and vote at the annual general meeting (the “2016 AGM”)) 2016 AGM : 17 May 2016 Book closure period (for determining shareholders’ : 23 May 2016 entitlement to the proposed final dividend for 2015 (subject to shareholders’ approval at the 2016 AGM) Payment date of final dividend : On or about 6 June 2016 2015 Annual Report 03 Corporate ProfileCorporate Profile Luoyang Huayang Square Central China Real Estate Limited 04 Corporate Profile Central China Real Estate Limited (hereinafter referred to as “CCRE” The Company is firmly committed to its philosophy of “providing or the “Company”, together with its subsidiaries hereinafter referred customers with zero-defect products and first-rated services”. In to as the “Group”) was incorporated in the Cayman Islands on 15 addition, we apply concepts of scientific decision-making, November 2007 as an exempt company with limited liability, the management standardisation and operation professionalisation in shares of which were listed on the Main Board of The Stock our business management to ensure the quality of our products and Exchange of Hong Kong Limited (the “Stock Exchange”) on 6 June services. 2008. The Group has been granted the “First Class Honor of Real Estate Developer” in the People’s Republic of China (the “PRC” or In its persistent professional pursuit of premium residential housing “China”). development over the past 23 years, the Company has fostered a “CCRE model” focused on provincial and regional development, The Company has been committed to the development of branded created a brand name well trusted for social responsibility, groomed properties as its principal activity since its establishment. Over 23 a high calibre management team, given substance to the corporate years, we have continued to guide residents to new exposures in philosophy of “perseverance for excellence” and embarked on a lifestyle through our articulately crafted architectural masterpieces development cycle of “ongoing profitability and stable growth”. in honour of our core value of “Taking Root in Central China and Contributing to Society.” The Company is of the view that As of now, the Company has established its presence in Henan’s 18 enterprises relate to the society in the same way as trees relate to prefecture-level cities and 23 county-level cities. As at 31 December the earth. When we establish our presence in a city, we cooperate 2015, the Company had completed development projects with an with our local peer developers to contribute to the local community accumulated aggregate gross floor area (“GFA”) of approximately by improving the standards of construction, increasing tax 16.71 million square metres (“sq.m.”) and owned 46 projects/phases collections for local governments and creating job opportunities. under development with GFA of approximately 4.72 million sq.m. Our relentless efforts in driving the urbanisation process and under development and land reserves with GFA of 18.63 million promoting economic and social growth in Henan Province have sq.m., including equity-owned GFA of 15.51 million sq.m.. During won the accolades of government authorities, professionals, peers, the reporting period, GFA measured approximately 2.58 million investors, customers and our employees. sq.m. for newly commenced projects and 2.73 million sq.m. for properties sold. The Company positions itself as a facilitator of urbanisation and all- round social progress for Henan Province. Having taken root in Henan Province for 23 years, we are resolute as ever in our vision and mission of “building quality houses for the people of Henan”. With the development of housing complexes such as “Forest Peninsula”, “U-Town”, “Code One City”, “Sweet-Scented Osmanthus Garden” and “Jianye Eighteen Cities”, we have improved the standard of residential housing in various cities in Henan and made important contributions to the urbanisation process of the province. Meanwhile, the Company endeavours to construct a “tailor-made” mega service regime by integrating resources, such as property, education, hotel, football, commerce and green house, with a view to activating the “New Blue Ocean Strategy” and transforming the Company from an urban complex developer to a new lifestyle services provider for urban residents. Zhengzhou The Five Buildings 2015 Annual Report 05 Corporate Profile (Continued) In line with its corporate culture underpinned by “honesty, Assessment Report on Chinese Real Estate Brand Value”, securing responsibility, integrity and focus”, a state of business featuring a the leading position of branded property developer in Henan high level of integration between “economic and social benefits, province. On 8 November 2015, the Company was repeatedly on the material and spiritual pursuits, corporate and staff interests, list of the “2015 Top 100 Private Enterprises in Henan Province” and strategic objectives and execution process” is coming into shape. ranked 17th in the list in 2015. As shown in the sub-indexes of the list, the Company ranked 17th among the top 100 private On 24 March 2015, the Company ranked 26th in the “2015 Top 500 enterprises in Henan in terms of revenue, ranked 3rd in terms of Chinese Property Developers” in the “2015 Assessment Report on total assets, ranked 4th in terms of net profit, ranked 2nd in terms Top 500 Chinese Property Developers” and topped the list of “Top 10 of total amount of taxation and ranked 1st among property Chinese Property Developers in Regional Operations” for seven developers in the list in terms of overall performance as well as all consecutive years in a row and repeatedly ranked in top 5 sub-indexes, maintaining its leading position in property operations performance among the listed property companies in development in Henan province. China. On 8 July 2015, the Company was ranked 471st among “China’s Top 500 2015” by Fortune Magazine for the first time, and Turning dreams into reality, golden age coming along. The Company is the only property developer among the enterprises in Henan adheres to its corporate philosophy of “Perseverance for Excellence” province which have made it to the list.. On 8 September 2015, the and its core value of “Taking Root in Central China and Contributing Company ranked 29th in “2015 Best 50 of China Real Estate to Society”. The Company remains committed to making Developers Brand Value” and Central China Properties Development contributions to the development of the real estate industry and Co. Ltd. ranked 28th in “2015 Best 50 of Chinese Property the private economic sector, as well as the strengthening of the Management Enterprises Brand Value” according to the “2015 nation and the prosperity of the country. Central China Real Estate Limited 06 Corporate Profile (Continued) PROJECTS OVERVIEW Land reserves with GFA of 18.63 million sq.m.