方兴地产 2009 中期报告

主席致辭

CHAIRMAN’S STATEMENT

Property development segment: The Group’s development projects are in steady progress as

planned. During the period under review, the Group actively proceeded with the construction

of two major integrated development projects located in the shipping concentration region

at the North Bund, Shanghai, with a view to achieving the target of “Hundred-year Grand

Plan, Centennial Masterpiece” initiated by the Shanghai Municipal Government. Among

which, after securing seven large conglomerates as its occupants, Shanghai Port International

Cruise Terminal Development Co., Ltd. also entered into a letter of intent for sale with a

large domestic enterprise in respect of Shanghai Port International Cruise Terminal Project.

On the other hand, even at the very beginning of the construction of Shanghai International

Shipping Service Center Project, many multinational companies have already expressed their

intention of purchase. In the meantime, both the Shanghai Chongming Island Project and

Yunnan Lijiang Project were on schedule and were proceeding with preliminary works such

as planning and design. In addition, the Group also took proactive measures to expand its

top quality land bank. In particular, on 30 June 2009, the Group was successful in bidding

the piece of land located at No.15 Guangqu Road, Beijing, which was recognized as the

“only remaining prime site” in the region by property developers.

Property leasing segment: All investment properties of the Group are situated in prime

locations with excellent quality, which enable the Group to maintain remarkable results

despite the overall decline in the industry. During the period under review, although the

occupancy rate of the office space of Jin Mao Tower declined slightly, it still managed to stay

at a high level, and through continuous improvement in service quality, the rental income

also remained stable. Beijing Chemsunny World Trade Centre, with its excellent high-class

quality, maintained a leading position in terms of occupancy rate and rental level in the

Beijing market. Sinochem Tower continued to adjust its tenant structure and streamline its

operations to improve operating income, which in turn contributed to its remarkable market performance.

Hotel operations segment: Against the backdrop of a general decline in the market, the

results of the hotels of the Group were affected to some extent, however their operations

still outperformed the market. During the period under review, the negative impact brought

about by the global financial crisis still lingered in first-tier cities in the first half of 2009.

The operation of Grand Hyatt Shanghai was inevitably affected, but its results still remained

forefront within the high-end hotel market in Shanghai. Westin Beijing, Chaoyang and Wangfujing Grand Hotel, both situated in Beijing, maintained their market share and

achieved better results than other hotels in the same district through adjusting guest

structure and adopting a flexible mode of operation. The operating results of JW Marriott Shenzhen, situated in Shenzhen, experienced a steady growth since its opening at the

beginning of the year. Hilton Sanya Resort & Spa, situated in Sanya, Hainan, recorded stable

results as it was less affected by the changes in the external market environment. The Ritz-

Carlton, Sanya was successful in grasping opportunities amid the crisis and became one of

the best performing hotels in China in terms of operating results in the first half of the year.

These two hotels have firmly secured their leading position within the hotel market in the

region.

5 INTERIM REPORT 2009　FRANSHION PROPERTIES (CHINA) LIMITED