CHAIRMAN'S STATEMENT

China Everbright Limited is the Group’s cross-border investment flagship, committed to asset management and investment as its dual growth drivers. CEL is now at the forefront of China’s asset management and investment industry.

In 2016, the world’s economic recovery remained feeble amid growing global turbulence and a multitude of abrupt international and regional changes. More locally, the Chinese economy faced mounting downward pressure. However, undeterred by these complex externalities, China Everbright Group Ltd. (“the Group”) stayed calm and composed, guided by its mission to build itself into a first-rate financial holding group. Riding the crest of its successful restructuring, it ushered in a golden age of corporate development, as evidenced by its ascent to 313th place among the Fortune Global 500, the greatest rise among all financial service companies.

China Everbright Limited (“CEL“), the Group’s cross-border investment flagship, weathered all difficulties to forge ahead during the year under review. Committed to asset management and investment as its dual growth drivers, CEL is now at the forefront of China’s asset management and investment industry. Its leadership was confirmed by a number of accolades in 2016. The Company came in fourth in China’s most influential rankings of private equity firms, published annually by Zero2IPO, and it was named “Fundraising Winner of the Year”. It also won the highest honour in corporate governance for listed companies in Hong Kong, the “Corporate Governance Excellence Award” from the Chamber of Hong Kong Listed Companies.

CEL’s asset management business grew strongly in 2016. From its base in the international financial hub of Hong Kong, the Company took a world-wide view and leveraged market trends to better draw in foreign capital, social capital, industry capital and financial capital. It used a creative touch to complete the design and sale of a fixed income products based on aircraft leasing agreements. It also completed the first round of fundraising for Global Investment Fund and the fundraising exercise for CEL Catalyst China Israel Fund. Working with industry leaders like IDG and Focus Media, it successfully raised more than RMB10 billion. As at the end of the year, CEL’s total fundraising amount had reached HK$87.5 billion, a 79% increase over last year. While significantly improving its fundraising capacity, the Company also continued to raise its asset allocation capacity and ability, as evidenced by the market-leading performance of its secondary market fixed income and equity funds.

CEL achieved resounding success in industry integration. Placing equal emphasis on “bringing i n ” capital investment and helping investors “go out”, the Company targeted industry restructuring opportunities on a global basis, actively investing in quality assets with strategic value and the potential to transform sectors and promote upgrading in China. By investing in Haiyin Fund, Beijing Huichen, Hope Education and other industry-leading companies, the Company expedited its planning efforts in the promising smart technology, elderly care and education sectors as well as others. The excellent performance in business segments like CALC and overseas mergers and acquisitions demonstrated the company’s leading position as an integrator in aircraft leasing, precision machinery manufacturing and more.

CEL further fortified its strong base for growth in 2016. Committed to operational prudence and stability, the Company places high value on risk management and maintains keen risk awareness. With its first-ever access to China’s domestic capital market, the Company issued RMB panda bonds totalling RMB8 billion to effectively optimise its debt structure, demonstrating the strong synergistic benefits created across the organisation. Furthermore, the management company for EBA Real Estate Fund was successfully incorporated into Shanghai Jiabao Group, a listed A-share company, building a stronger foundation for sustainable growth and improving its market image and reputation.

The driving force behind CEL’s excellent performance is the support and confidence of its investors and stakeholders, the wisdom of its board members, and the professionalism and diligence of its senior management and staff. For these contributions, I wish to express my sincerest gratitude and respect.

In 2017, the global economy continues to find itself in a period of profound readjustment and change amid a host of uncertainties. As CEL celebrates its 20th anniversary, we will continue to pursue our mission with a sense of gratitude. We will strive to identify investment opportunities that promise greater certainty in an uncertain macroeconomic environment. With our continued efforts to develop our asset management and investment business, we are building a unique, sizable platform for asset management, further unleashing core competencies, and making a better contribution to our shareholders and the public at large.

A century may pass like a fleeting moment, but dreams never age. As we travel through the ebbs and flows of history, the journey toward realising our dreams will be full of trial and tribulation. Let us work together with a sense of responsibility and commitment to the same direction and the same goal. By thinking alike and sharing together, we will have no regrets as we turn our dreams into reality in a great era!

Cai Yunge
Chairman

Hong Kong, 30 March 2017