Shui On Land Ltd. · HKEX:272
Shui On Land — FY2024 Earnings Presentation
44 slides from Shui On Land's earnings presentation, Mar 28, 2025
Slide 1: 2024 Annual Results
Building a future Sharing a dream 2024 Annual Results 28 March 2025 1
Slide 2: Agenda
Agenda Opening Remarks Vincent Lo Chairman Business Review and Stephanie Lo Outlook & Strategy Vice Chairman Key Financial Highlights Douglas Sung CFO & CIO, Shui On Land Property Sales & Development Jessica Wang CEO, Shui On Land Commercial Asset Management Allan Zhang CEO, Shui On Xintiandi 2
Slide 3: Opening Remarks
Opening Remarks Opening Remarks _______ Vincent Lo Chairman 3
Slide 4: Times of Macro Transitions
Times of Macro Transitions Slow economic growth Persistent and extending with weak consumer geopolitical tensions confidence Some stimulating Liquidity concerns measures in China and constraints property market 4
Slide 5: Resilience Under Challenging Times
Resilience Under Challenging Times 2024: Difficult year but prudent strategy demonstrated resilience ▪ Profitability maintained ▪ Met all financial obligations ▪ Relentless effort on capital management ▪ Strong sales at Lakeville ▪ Quality commercial portfolio Cautious Outlook: Navigating consolidat
Slide 6: Business Review and Outlook & Strategy
Business Review and Outlook & Strategy _______ Stephanie Lo Vice Chairman 6
Slide 7: 2024 Highlights
2024 Highlights Profitability maintained • Profit of RMB810 million • Profit attributable to shareholders of RMB180 million Successful sales launch and refined Asset-Light strategy • First phase of Lakeville VI was successfully launched with a total of 108 units fully subscribed on the launch day •
Slide 8: Global Recognitions in Sustainability
Global Recognitions in Sustainability 2024 achievements Global benchmark recognitions ✓ Achieved a 51.3% reduction in Scope 1 and 2 carbon emissions intensity and 23.3% reduction in tenant emissions from 2019 base year ✓ Shanghai Taipingqiao Community has transitioned to Rating AA- AA 100% renewable
Slide 9: Continuing Market Challenges
Continuing Market Challenges Residential Retail Office ▪ China’s residential market ▪ Shanghai's retail property ▪ Tenants are more cautious in downturn persisted in 2024, market faced increasing leasing decisions due to but the rate of decline challenges, while decline in economic uncertainty slowe
Slide 10: Strategic Focus Going Forward
Strategic Focus Going Forward Development driven Commercial driven Property Property Investment & Focus on saleable Focus on recurring Development Asset development assets income and asset Management management Short-term strategic priorities Long-term goal ▪ Liquidity management with financial ▪ Su
Slide 11: Key Financial Highlights
Key Financial Highlights _______ Key Financial Highlights Douglas Sung CFO & CIO 11
Slide 12: Financial Performance
Financial Performance Revenue Net profit Decline in net profit mainly (RMB) (RMB) resulted from fewer residential project completions during the year, 8,173m 810m resulting in lower revenue and profit recognised from property sales Property sales Total rental and (RMB) related income (RMB) Additiona
Slide 13: Income Statement
Income Statement RMB’m 2024 2023 Change Revenue of the Group 8,173 9,752 (16%) Property sales 4,356 5,898 (26%) Rental & related income 2,456 2,398 2% Property management income 608 580 5% Hotel, construction and others 753 876 (14%) Cost of sales (2,945) (4,707) (37%) Gross profit 5,228 5,045 4% Gr
Slide 14: Income Statement (Cont'd)
Income Statement (Cont’d) RMB’m 2024 2023 Change Profit before tax 3,147 2,699 17% Tax (2,337) (1,302) 79% Profit for the period 810 1,397 (42%) Attributable to: Non-controlling shareholders 630 587 7% Profit attributable to shareholders 180 810 (78%) Earnings per share – Basic RMB2.2 cents RMB10.1
Slide 15: Key Balance Sheet Metrics
Key Balance Sheet Metrics Total assets Total debt Shareholders' (RMB) (RMB) equity per share (RMB) 91,938m 29,927m 4.79 Total cash and bank Net debt Net gearing ratio deposits (RMB) (RMB) 7,734m 22,193m 52% • Diversified funding sources • Valuation of investment property portfolio remained largely s
Slide 16: Solid Asset Base
Solid Asset Base Total assets Breakdown of assets by nature (RMB’bn) 160.0 6% 8% 140.0 1% 3% 120.0 115.5 113.9 44% 110.3 108.4 104.9 101.0 18% 100.0 91.9 80.0 20% 60.0 40.0 Investment Properties JV and Associate Investment & Loans - for IP 20.0 JV and Associate Investment & Loans - for Sale and Mixe
Slide 17: Valuation of Investment Property Portfolio
Valuation of Investment Property Portfolio Increase Carrying Value Attributable Fair Value Leasable /(decrease) as of Carrying Gain/(loss) to Project GFA in fair value 31 December Value to the Carrying Value for 2024 2024 Group sq.m. RMB’m RMB’m % RMB’m Completed Investment Properties at valuation S
Slide 18: Relatively Low Gearing Despite Continuous Macro Challenges
Relatively Low Gearing Despite Continuous Macro Challenges Net Gearing (%) 81% Consistently 68% maintained a 51% 52% 52% 52% relatively low 40% 45% 45% gearing ratio in the 30% past few years as compared against industry peers 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Net Debt (RMB’m) 37,378
Slide 19: Maturity Wall has Peaked
Maturity Wall has Peaked Annual debt maturity from 2023 Debt maturity profile as of 31 Dec 2024 (RMB’m) (RMB’m) 13,225 14,359 4,068 10,870 6,988* 8,264 20 5,576 14,359 2,660 5,576 3,399 45 10,870 2,663 2,862 9,157 2,862 5,604 5,576 1,276 60 2,862 3,569 20 2,868 2,802 1,256 2023 2024 2025* 2026 2027
Slide 20: Capital Management Strategy
Capital Management Strategy Offshore Debt Repayment Since 2021 Proactive and innovative capital management strategy (RMB’m) ▪ Strived to maintain a stable balance sheet 11,576 11,132 9,344 ▪ Adopted various means of funding including the CMBS 8,930 issuance, asset disposal, USD senior bonds repurcha
Slide 21: Property Sales & Development
Property Sales & Development _______ Jessica Wang CEO, Shui On Land 21
Slide 22: Property Sales
Property Sales ▪ Contracted property sales for 2024 increased by 32% to RMB15,055 million, comprising residential property sales of RMB14,553 million, commercial property sales of RMB502 million, The increase was due to strong sales performance in Shanghai Taipingqiao Lakeville VI (Lot 122) ▪ RMB795
Slide 23: Residential GFA Available for Sale and Pre-sale in 2025 and Beyond
Residential GFA Available for Sale and Pre-sale in 2025 and Beyond GFA Group’s Attributable Project Product in sq.m. Interests GFA in sq.m. Shanghai Taipingqiao Lot 118 High-rises 2,100 99% 2,100 Shanghai Taipingqiao Lot 122 Townhouses 8,700 50% 4,400 Riverville Townhouses 15,100 60% 9,100 Wuhan Tia
Slide 24: Residential Development Saleable Resources as of 31 December 2024
Residential Development Saleable Resources as of 31 December 2024 Approximate Estimated Gross Saleable Group’s Estimated Saleable Project Residential Interests Attributable Sales Resource GFA RMB’ bn RMB’ bn sq.m. Shanghai Taipingqiao Lot 118 2,100 0.4 99% 0.4 Shanghai Taipingqiao Lot 122 23,600 7.5
Slide 25: Commercial Development
Commercial Development Commercial Properties Under Development and for Future Development as of 31 December 2024 Office Retail Total The Group's Attributable Project GFA sq.m. GFA sq.m. GFA sq.m. Interests GFA sq.m. Shanghai Taipingqiao Lot 122 - 18,000 18,000 50% 9,000 Shanghai Sub-total - 18,000 1
Slide 26: Continue to Implement our Development Strategy
Continue to Implement our Development Strategy Market Trends Our Strategic Focus 1 More positive signals from recent Two Sessions on property sector Continue to focus on top- ▪ The latest government work report reaffirms the focus on “stabilising the decline” by easing restrictions and accelerating
Slide 27: Shanghai High-end Residential Market Recorded Strong Sales in 2024
Shanghai High-end Residential Market Recorded Strong Sales in 2024 ▪ Shanghai's luxury new home sales nearly doubled in 2024, driven by increased supply and strong demand from high-net-worth individuals allocating funds to core assets ▪ Following the September-27 policy, further easing measures have
Slide 28: Strong Shanghai Pipeline in 2025 - Residential
Strong Shanghai Pipeline in 2025 - Residential Lakeville Phase VI （Low-rise/Townhouse） Riverville 8,700 sq.m. available for sale in 2025 15,100 sq.m. available for sale in 2025 Northwest Northeast Cluster Cluster Southwest Southeast Cluster Cluster Targeted structure Targeted structure Q2 2027 Q3 20
Slide 29: Expansion of Urban Retreat Community
Expansion of Urban Retreat Community Zhaojialou: “Urban Village Renewal” and mixed-use project in Minhang District • Located in Minhang District in the South of Shanghai, on the East side of Huangpu River, adjacent to Pudong New District • JV project with the local government • Integration of cultur
Slide 30: Asset Light Projects
Asset Light Projects Yong Nian Li (永年里) Feng Xian Nan Qiao (奉贤南桥) High-end residential project with Yongye utilising Lakeville brand Community oriented development with Nanqiao government Located in Greater Xintiandi Area, Huangpu District, Shanghai Located in Fengxian District, Shanghai Estimated r
Slide 31: Commercial Asset Management
Commercial Asset Management _______ Allan Zhang CEO, Shui On Xintiandi 31
Slide 32: RMB79 billion of Commercial Assets Located in Prime Locations in Shanghai
RMB79 billion of Commercial Assets Located in Prime Locations in Shanghai KIC Shanghai Hong Shou Fang Ruihong Tiandi GFA: 62,000 sq.m. Asset Value: RMB2.7 billion GFA: 441,000 sq.m. GFA: 253,000 sq.m. Asset Value: RMB15.4 billion Asset Value: RMB8.7 billion 5 Corporate Avenue, Hubindao The Hub GFA:
Slide 33: Solid Rental Growth
Solid Rental Growth Rental and related income Retail ▪ Average occupancy remained stable at 94% (RMB million) ▪ Overall sales and shopper traffic increased by 4,000 3,5471 8% and 12% y-o-y, respectively 3,243 ▪ Recently opened Panlong Tiandi and Hong 3,000 Shou Fang seeing great success 2,398 2,456
Slide 34: Creating New Social Landmarks
Creating New Social Landmarks Panlong Tiandi (Retail GFA: 42k sq.m.) • New cultural landmark in the Yangtze River Delta area combining cultural heritage, modern lifestyle, and community engagement High recognition from the government and > 18 various social groups with 40+ industry awards MILLION ✓
Slide 35: Sustainable Work Solutions Attracting Reputable Tenants
Sustainable Work Solutions Attracting Reputable Tenants “Holistic Offer” Covered Launched “Hybrid Easy 2.0” Provided “Workx Ready” Achieved Deep Green Leases with 3 Leasing Stages, 6 Dimensions the New Hybrid Solutions Customised Solutions for industry leaders through comprehensive Approximately 40
Slide 36: CPIC Xintiandi Commercial Centre
CPIC Xintiandi Commercial Centre ▪ Positioning: A commercial complex with three towers of premium Grade-A office buildings and a street style all-weather shopping and leisure/entertainment area ▪ GFA: 193,000 sq.m. (office) + 81,000 sq.m. (retail) ▪ Completion schedule : ▪ Lot 132 (CPIC Life Tower)
Slide 37: Key Strategic Initiatives
Key Strategic Initiatives Strengthen the 3 growth engines to achieve sustainable and profitable growth goal Drive steady organic Success in every Implement Asset-Light growth in AUMs new project Strategy 2.0 Focus on driving shopper traffic Occupancy as top priority and boosting tenant sales ▪ Flexi
Slide 38: Q&A
Q&A
Slide 39: Appendix
Appendix
Slide 40: Commercial Portfolio Performance by Project
Commercial Portfolio Performance by Project Leasable Rental & Related Income Occupancy Rate RMB’ million Change Change Project Product GFA 31 Dec 31 Dec 2024 2023 % ppt sq.m. 2024 2023 Shanghai Taipingqiao Shanghai Xintiandi Office / Retail 54,000 488 457 7% 96% 97% (1) Xintiandi Style II Retail 26,
Slide 41: Financial Position
Financial Position RMB’m 31 Dec 2024 31 Dec 2023 Change % Total cash and bank deposits 7,734 8,917 (13%) Total assets 91,938 100,998 (9%) Total debt 29,927 31,933 (6%) Bank borrowings 19,277 17,676 9% Senior notes 6,437 9,898 (35%) CMBS 4,213 4,359 (3%) Net debt 22,193 23,016 (4%) Total equity 42,66
Slide 42: Credit Profile
Credit Profile Rental and related income / total interest costs1 Total debt2 / Total equity3 140% 123.7% 124.2% 100% 78.9% 75.5% 120% 106.1% 104.6% 80% 72.3% 70.1% 64.8% 100% 85.8% 80% 60% 60% 40% 40% 20% 20% 0% 0% 2020 2021 2022 2023 2024 2020 2021 2022 2023 2024 Total assets Total cash4 150,000 20
Slide 43: 2030 Sustainability Strategy
2030 Sustainability Strategy Our Vision: To be a pioneer of sustainable premium urban communities 43
Slide 44: Quality Resources in Top-tier and High-growth Cities
Quality Resources in Top-tier and High-growth Cities Total GFA Project Residential Commercial (sq.m.) Shanghai Taipingqiao 89,000 511,000 600,000 Shanghai Ruihong Tiandi - 562,000 562,000 KIC Shanghai - 253,000 253,000 Inno KIC - 45,000 45,000 The Hub - 263,000 263,000 Panlong Tiandi - 42,000 42,000