China Electronics Optics Valley Union : ANNUAL RESULTS ANNOUNCEMENT FOR THE YEAR ENDED 31 DECEMBER 2021

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China Electronics Optics Valley Union Holding Company Limited ʕཥΈԋᑌΥછٰϞࠢʮ̡

(Incorporated in the Cayman Islands with limited liability)

(Stock code: 798)

ANNUAL RESULTS ANNOUNCEMENT FOR THE YEAR ENDED 31 DECEMBER 2021

SUMMARY OF 2021 RESULTS

• • In 2021, the Group achieved total revenue of RMB4,530.6 million, representing an increase of 48.6% as compared to that of last year. The profit attributable to the owners of the Company for 2021 was RMB640.2 million, representing an increase of 37.9% as compared to that of last year. The Group's significant improvement in results demonstrated the effectiveness of its transformation in the starting year of the "14th Five Year Plan".

• • In 2021, the Group has vigorously promoted its methodology of "responsive customization (敏捷定制)", organized supply chain financial solutions, adhered to the bottom-line principle of maintaining a positive operating cash flow, and thus realized RMB155.7 million in net cash inflow from operating activities. The cash flow from operating activities remained positive for the recent three years.

• • In 2021, with the addition of five high-quality industrial park projects in cities such as Chongqing, Mianyang and Nantong, the Group has high-quality land bank of approximately 711.8 million sq.m. in various cities, including Chengdu, Changsha, Shanghai, Wuhan and Tianjin as at the end of the Reporting Period.

• • In order to maintain the growth of industrial park investment and lay the foundation for growth during the "14th Five-Year Plan" period, the Group has moderately increased the reserve and operating rate of its industrial parks. As at 31 December 2021, the total bank borrowings and bonds payable of the Group was RMB5,360.1 million, representing a decrease of RMB250.1 million as compared to the end of last year, with the gearing ratio being strictly controlled at approximately 60%. Benefiting from factors such as financing structure adjustment, the average borrowing costs decreased to 5.1% in 2021 as compared to 5.4% in 2020.

• • The Group has adhered to its sustainable and stable profit distribution policy. The Board proposes to declare a final dividend of HK$2.50 cents (equivalent to approximately RMB2.03 cents) per Share, amounting to approximately HK$189.4 million in aggregate (equivalent to approximately RMB154.0 million) for the year ended 31 December 2021.

The board (the "Board") of directors (the "Directors") of China Electronics Optics Valley Union Holding Company Limited (the "Company") is pleased to announce the audited consolidated financial results of the Company and its subsidiaries (collectively, the "Group" or "CEOVU") for the year ended 31 December 2021 ("Reporting Period"), together with the comparative figures of the audited consolidated financial results for 2020 as follows.

CONSOLIDATED FINANCIAL RESULTS OF THE GROUP

CONSOLIDATED STATEMENT OF PROFIT OR LOSS

Year ended 31 December 2021 2020

Note

RMB'000 RMB'000

Revenue	3	4,530,568	3,048,618
Cost of sales	5	(3,232,603)	(2,110,808)
Gross profit	1,297,965	937,810
Other income and gains - net	4	485,272	268,248
Selling and distribution expenses	5	(129,577)	(113,638)
Administrative expenses	5	(450,097)	(310,296)
Net impairment losses on financial and contract assets	5	(76,119)	(21,117)
Fair value gains on investment properties	11	51,081	85,726
Operating profit	1,178,525	846,733
Finance income	6	77,462	78,334
Finance costs	6	(271,096)	(240,484)
Net finance costs	(193,634)	(162,150)
Share of profits of associates	7	76,158	124,818
Share of profits of joint ventures	23,834	7,512
Profit before income tax	1,084,883	816,913
Income tax expense	8	(472,273)	(276,445)
Profit for the year	612,610	540,468
Profit for the year attributable to:
- Owners of the Company	640,203	464,340
- Non-controlling interests	(27,593)	76,128
Profit for the year	612,610	540,468
Earnings per share for profit attributable to the ordinary
equity holders of the Company:
Basic and diluted (RMB cents)	9	8.45	6.13

The above consolidated statement of profit or loss should be read in conjunction with the accompanyingnotes.

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

Year ended 31 December

2021	2020
RMB'000	RMB'000
Profit for the year	612,610	540,468
Other comprehensive income:
Items that may be reclassified to profit or loss:
- Currency translation differences	(2,695)	(23,402)
Other comprehensive income for the year, net of tax	(2,695)	(23,402)
Total comprehensive income for the year	609,915	517,066
Total comprehensive income for the year is attributable to:
- Owners of the Company	637,508	440,938
- Non-controlling interests	(27,593)	76,128
Total comprehensive income for the year	609,915	517,066

The above consolidated statement of comprehensive income should be read in conjunction with the accompanying notes.

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

2020
RMB'000	RMB'000
Non-current assets
Property, plant and equipment	426,200	435,971
Right-of-use assets	10	98,063	67,478
Investment properties	11	5,091,625	4,697,854
Intangible assets	57,442	57,342
Investments in associates	7	1,963,666	1,883,044
Investments in joint ventures	161,956	190,103
Financial assets at fair value through profit or loss	693,237	572,006
Trade and other receivables	15	414,731	380,593
Deferred income tax assets	79,927	72,258
8,986,847	8,356,649
Current assets
Properties under development	12	3,904,555	2,796,527
Completed properties held for sale	13	2,707,251	3,198,710
Inventories and contracting work-in-progress	14	91,187	71,540
Trade and other receivables	15	1,941,971	1,936,993
Current income tax assets	111,867	45,919
Financial assets at fair value through profit or loss	194,974	45,095
Contract assets	920,085	639,670
Deposits in banks with original maturities over three
months	56,300	21,516
Restricted cash	237,547	188,460
Cash and cash equivalents	2,155,136	2,124,958
12,320,873	11,069,388
Current liabilities
Contract liabilities	507,875	382,995
Trade and other payables	16	4,532,253	3,279,130
Corporate bonds	17	258,097	1,334,501
Bank and other borrowings	18	3,117,511	3,061,350
Lease liabilities	10	82,992	81,518
Current income tax liabilities	551,338	526,125
Current portion of deferred income	77,983	62,566
9,128,049	8,728,185
Net current assets	3,192,824	2,341,203
Total assets less current liabilities	12,179,671	10,697,852

At 31 December 2021

Note

Note	2020
RMB'000	RMB'000
Non-current liabilities
Bank and other borrowings	18	1,984,469	1,214,345
Lease liabilities	10	479,399	458,148
Deferred income tax liabilities	508,633	462,467
Non-current portion of deferred income	701,847	563,096
3,674,348	2,698,056
Net assets	8,505,323	7,999,796
Equity
Share capital	19	623,048	623,048
Treasury shares	19	(121,056)	(121,056)
Reserves	2,947,927	2,963,354
Retained earnings	3,941,505	3,415,452
Total equity attributable to owners of the Company	7,391,424	6,880,798
Non-controlling interests	1,113,899	1,118,998
Total equity	8,505,323	7,999,796
Total equity and non-current liabilities	12,179,671	10,697,852

At 31 December 2021

The above consolidated statement of financial position should be read in conjunction with the accompanying notes.