C&D International Investment : 2021-04-20 Financial Statements/ESG Information - 2020 ANNUAL REPORT

CONTENTS

Page

2 CORPORATE INFORMATION

3-7 CHAIRMAN'S STATEMENT

8-31 MANAGEMENT DISCUSSION AND ANALYSIS

32-37 BIOGRAPHICAL DETAILS OF DIRECTORS AND

• SENIOR MANAGEMENT
  38-60 DIRECTORS' REPORT
  61-73 CORPORATE GOVERNANCE REPORT

74-132 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT

133-136 INDEPENDENT AUDITOR'S REPORT

137-138 CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND   OTHER COMPREHENSIVE INCOME

139-140 CONSOLIDATED STATEMENT OF FINANCIAL POSITION

141-143 CONSOLIDATED STATEMENT OF CASH FLOWS

144-145 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

146-271 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

272 FINANCIAL SUMMARY

273-290 PROPERTIES PORTFOLIO

This annual report is made in English and Chinese. In the case of any inconsistency, the English version shall prevail.

1	C&D International Investment Group Limited  Annual Report 2020

CORPORATE INFORMATION

BOARD OF DIRECTORS

Executive Directors

Mr. ZHUANG Yuekai (Chairman)

Ms. ZHAO Chengmin

Mr. LIN Weiguo (Chief Executive Officer)

Non-executive Directors Mr. HUANG Wenzhou Ms. YE Yanliu

Mr. WANG Wenhuai (appointed on 20 April 2020) Ms. WU Xiaomin (resigned on 30 March 2020)

Independent Non-executive Directors

Mr. WONG Chi Wai

Mr. WONG Tat Yan, Paul

Mr. CHAN Chun Yee

COMPANY SECRETARY

Miss LEUNG Ching Ching

AUDIT COMMITTEE

Mr. WONG Chi Wai (Committee Chairman)

Mr. WONG Tat Yan, Paul

Mr. CHAN Chun Yee

REMUNERATION COMMITTEE

Mr. WONG Tat Yan, Paul (Committee Chairman)

Mr. ZHUANG Yuekai (Note)

Mr. WONG Chi Wai

Mr. CHAN Chun Yee

NOMINATION COMMITTEE

Mr. ZHUANG Yuekai (Committee Chairman)

Mr. CHAN Chun Yee

Mr. WONG Chi Wai

Mr. WONG Tat Yan, Paul

INDEPENDENT AUDITOR

Grant Thornton Hong Kong Limited

PRINCIPAL BANKERS

(in alphabetical order) Agricultural Bank of China Limited Bank of Beijing Co., Ltd.

Bank of China (Hong Kong) Limited Bank of China Limited

Bank of Communications Co., Ltd. Bank Of Hangzhou Co., Ltd.

Bank Of Jiangshu Co., Ltd.

China Construction Bank Corporation China Everbright Bank Company Limited China Merchants Bank Co., Ltd.

China Minsheng Banking Corp., Ltd.

Industrial and Commercial Bank of China Limited Industrial Bank Co., Ltd

Ping An Bank Co., Ltd. Postal Savings Bank of China Shanghai Pudong Development Bank

REGISTERED OFFICE

Second Floor, Century Yard

Cricket Square, P.O. Box 902

Grand Cayman, KY1-1103

Cayman Islands

HEAD OFFICE AND PRINCIPAL PLACE OF   BUSINESS IN HONG KONG

Office No. 3517

35th Floor, Wu Chung House

213 Queen's Road East

Wanchai, Hong Kong

PRINCIPAL SHARE REGISTRAR   AND TRANSFER AGENT

Tricor Services (Cayman Islands) Limited

Second Floor, Century Yard

Cricket Square, P.O. Box 902

Grand Cayman, KY1-1103

Cayman Islands

HONG KONG BRANCH SHARE REGISTRAR   AND TRANSFER OFFICE

Tricor Investor Services Limited

Level 54, Hopewell Centre

183 Queen's Road East, Hong Kong

LEGAL ADVISER AS TO HONG KONG LAWS

King & Wood Mallesons

STOCK CODE

1908

COMPANY'S WEBSITE

www.cndintl.com

(the contents of which do not form part of this annual report)

Note: Mr. ZHUANG Yuekai has ceased to act as a member of the remuneration committee of the Board with effect from 15 March 2021.

C&D International Investment Group Limited

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CHAIRMAN'S STATEMENT

Dear Shareholders,

I am pleased to present the annual report of C&D International Investment Group Limited ("C&D International Group" or the "Company", and together with its subsidiaries, the "Group") for the year ended 31 December 2020 (the "Year").

1. ANALYSIS ON ECONOMIC LANDSCAPE

In 2020, the novel coronavirus epidemic (the "Epidemic") swept the world which resulted in recession to different extent in major developed economies. The Epidemic has been brought under control by the Chinese government and the community through actively implementing strict preventive and control measures and thus certain achievement of growth for the Chinese economy remained during the Year. As China's real estate industry completed its recovery in the middle of the Year, PRC local governments continued to emphasise the policy of "stabilising the real estate industry" to maintain control. The central bank has imposed the rule of "Three Red Lines" to restrict real estate corporate debts and strictly control the scale of housing loans for financial institutions, which has led to more regulated financing for real estate enterprises. The policy environment will further force consolidation and changes in the real estate industry.

Due to the relatively small portion of the Company's real estate projects in Wuhan, the Epidemic did not have a significant impact on the Company's operations, financial information and financial positions during the Year. Focusing on the corporate orientation as the "integrated service provider in property development and real estate industry chain investment services", the Group combined the respective strengths, opportunities of its state-owned enterprise background and market-based operating mechanism, and continued to drive the rapid growth of its business and asset base and the growing influence of its corporate brand to create value for our shareholders and society.

1. RESULTS

During the Year, the Group achieved operating revenue of approximately RMB42.74448 billion (2019: approximately RMB17.31926 billion (restated)), representing a year-on-year increase of approximately 146.8%; the profit for the year attributable to the equity holders of the Company of approximately RMB2.32163 billion (2019: approximately RMB1.71799 billion (restated)), representing a year-on-year increase of approximately 35.14%.

3 Annual Report 2020

CHAIRMAN'S STATEMENT

III. BUSINESS REVIEW

In 2020, under the leadership of the board (the "Board") of directors (the "Directors") of the Company and by focusing on business directions of "accelerating expansion, consolidating the industry and spreading brand value", the Company drove its development under the dual force of "Product + Service" and maintained growth momentum of various business indicators.

1. Property development business scale maintaining rapid growth with increasing comprehensive strength
2. 1. Sustained growth in contracted sales: In 2020, the Company maintained its upward momentum in contracted sales. The Group, together with its joint ventures and associates, achieved a total contracted sales amount of approximately RMB90.77 billion (2019: approximately RMB50.78 billion, representing a year-on-year increase of approximately 78.75%) with a total contracted sales gross floor area ("GFA") of approximately 4,653,100 sq.m. (2019: approximately 2,932,300 sq.m., representing a year-on-year increase of approximately 58.68%). The average selling price is approximately RMB19,500 per sq.m..
   2. Significant expansion of business layout: In 2020, the Company actively promoted the rapid expansion of its property development business and focused on acquiring quality property development projects to further broaden the Company's business layout. During the Year, the Company newly invested in 52 property development lands. The saleable GFA of newly acquired projects was approximately 8,220,000 sq.m. with saleable value of approximately RMB143.3 billion. As at 31 December 2020, the Company invested a total of 128 property development projects (2019: 83, representing a year-on-year increase of approximately 54%) which were located in our five core areas including more than 30 cities within Haixi (including Xiamen, Zhangzhou, Quanzhou, Longyan and Putian), South-eastern China (including Fuzhou, Nanping, Sanming and Ningde) , Eastern China (including Suzhou, Shanghai, Wuxi, Hefei, Nanjing and Hangzhou), Southern China (including Guangzhou, Zhuhai, Shenzhen, Nanning and Guiyang) and Central China (including Changsha and Wuhan), and cultivated its presence in tier-two (strong tier-two) cities. As at 31 December 2020, the saleable GFA of land reserves was approximately 12,320,000 sq.m. (2019: approximately 9,350,000 sq.m., representing a year-on-year increase of approximately 32%) with saleable value of approximately RMB213.1 billion (2019: approximately RMB162.0 billion, representing a year-on-year increase of approximately 32%), which provided a solid foundation for the Group's growth in the future.
   3. Crafting the standardised product collections: The Company has focused on "high-end improvement projects" by launching the "Zen Chinese Style" series of products such as "emptiness, imagery, simplicity, and plainness* (空、象、簡、樸)" and incorporating modern construction materials and techniques into the essence of traditional Chinese architecture and culture in order to create a leading Chinese style product with cultural atmosphere. The Group's products have been standardised and modularised to expand the Group's product portfolio and reduce development costs and development period. On the other hand, under the principle of unity, we have systematically managed all aspects of architecture, landscape and interiors to give each project its own unique characteristics and style, and our brand influence is industry-leading, highly recognised and widely acclaimed by property owners and all sectors.

C&D International Investment Group Limited

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