Sino Land Co. Ltd. · HKEX:83
Sino Land — H1 FY2022/23 Earnings Presentation
46 slides from Sino Land's earnings presentation, Feb 21, 2023
Slide 1: Creating Better Lifescapes – Interim Results FY2022/23
Creating Better Lifescapes INTERIM RESULTS FY 2022/23 Analysts’ Briefing 21 February 2023
Slide 2: Disclaimer
Disclaimer This document and the information contained therein are intended to be distributed only to named or designated recipients, and it is not or should not be regarded as any advertisement or propaganda materials aimed to the non-specific public. It should not be reproduced quoted or transmitt
Slide 3: Interim Results for the six months ended 31 December 2022
Interim Results for the six months ended 31 December 2022 Page Result Snapshots 1 Historical dividend and payout trend 2 Financial Results Highlights 3-5 Business Review Land Bank 6-10 Property Sales 11-15 Property Rental 16-23 Hotels 24 Prospects 25 Q&As Appendix (Sustainability and Asset enhanceme
Slide 4: Result Snapshots
Result Snapshots Strong balance sheet with net cash position Profit Dividend Balance Sheet Underlying Profit Net Cash HK$2,802.3 m HK$41,234.9 m ↓ 35.8% yoy (30 Jun 2022: HK$41,534.3 m) Net Profit Interim DPS Shareholders’ funds HK$2,459.8 m HK$0.15 HK$159,323.3 m ↓ 41.8% yoy (2021: HK$0.15) ↑ 1.2%
Slide 5: Historical dividends and payout ratios
Historical dividends and payout ratios Steady "growth" dividend Interim dividend per share Final dividend per share Special dividend per share Payout ratio HK cents 120 90.0% 83.5% 78.9% 80.0% 100 98 65.8% 70.0% 59.5% 59.8% 83 57.1% 58.3% 80 56.0% 60.0% 58.1% 45 28 50.0% 44.7% 60 57 53 55 55 50 50 5
Slide 6: Financial Results Highlights
Financial Results Highlights For the six months ended 31 December 2022 Interim 2022/23 Interim 2021/22 % Change Revenue HK$6,382.5m HK$10,892.1m -41.4% Revenue declined mainly due to the $4.7b reduction in property sales, as a Underlying profit HK$2,802.3m HK$4,367.9m -35.8% result of the timing for
Slide 7: Earnings drivers – contribution from Segment results
Earnings drivers – contribution from Segment results For the six months ended 31 December 2022 Interim 2022/23* Interim 2021/22* % Change Profit contribution from Property Property Sales HK$1,132.6m HK$4,135.6m -72.6% Sales declined, mainly due to the reduction in property sales The decline in Prope
Slide 8: Strong financial position
Strong financial position Solid balance sheet strength 31 December 2022 30 June 2022 Change Net Cash of HK$41.23b Cash and bank deposits HK$44,462.6m HK$44,784.4m - HK$321.8m Net cash remain at similar level as Debts (HK$3,227.7m) (HK$3,250.1m) - HK$22.4m compared to 30 June, 2022 despite the paymen
Slide 9: Land bank
Land bank Qsino LAND COMPANY LIMITED
Slide 10: 20.2 million sq. ft. attributable land bank as of December 2022
20.2 million sq. ft. attributable land bank as of 31 December 2022 Balanced and diversified portfolio sufficient to support the Group’s requirement over the next few years Mainland Overseas (in million square feet) Hong Kong Singapore Sydney Total China Properties under development 2.6 2.7 0.4 - 5.7
Slide 11: Land acquisition during the interim period
Land acquisition during the interim period Replenishment of land bank to optimise earnings potential Attributable Total gross floor Project Date Usage Interest plot ratio area area (sq. ft.) (sq. ft.) KIL 11285, Wing Kwong Residential/ Joint Street / Sung On Street 27/10/2022 278,615 185,278 Commerc
Slide 12: Properties under development – Hong Kong
Properties under development – Hong Kong Rich project pipeline (13 projects expected to be completed over next 5 years) Expected Attributable Project Name / Site Location Stake (%) completion date plot ratio area (sq. ft.) FY 2022 / 2023 38 Wing Kei Road Kwai Chung 100 176,906 Grand Victoria South W
Slide 13: Properties under development – Mainland China
Properties under development – Mainland China Attractive projects in Mainland China Attributable Expected Project Name / Site Location Stake (%) plot ratio area (sq. ft.) completion date (in 000’s) FY 2022 / 2023 The Palazzo Phase III A Chengdu 20 54 The Palazzo Phase III B Chengdu 20 213 T102 – 026
Slide 14: Properties under development – Singapore
Properties under development – Singapore Diversification of development portfolio Total Attributable Acquisition Project Name Usage Interest gross floor area plot ratio area date (sq. ft.) (sq. ft.) Jalan Anak Bukit, Singapore Residential / 30/08/2021 20% 1,007,026 201,405 Commercial Golden Mile Com
Slide 15: Property sales
Property sales Qsino LAND COMPANY LIMITED
Slide 16: Property sales recognised in the interim period
Property sales recognised in the interim period Exciting pipeline of new project launches for 2023 Interim 2022/23 Interim 2021/22 % Change Gross profit margin Property sales* HK$3,899.4m HK$8,497.0m -54.1% 28.4% (Interim 2021/22: 46.3%) Segment results* HK$1,110.2m HK$3,938.5m -71.8% *All figures a
Slide 17: Total contracted sales of ~HK$18.2 billion not yet recognised
Total contracted sales of ~HK$18.2 billion not yet recognised (on attributable basis as of 31 December 2022) Including ~HK$4.9 billion attributable contracted sales expected to be recognised in 2H 2022/23 Projects launched during 2022 Grand Mayfair Villa Garda Kam Tin South, Tseung Kwan O, New Terri
Slide 18: Total contracted sales of ~HK$18.2 billion not yet recognised
Total contracted sales of ~HK$18.2 billion not yet recognised (on attributable basis as of 31 December 2022) Including ~HK$4.9 billion attributable contracted sales expected to be recognised in 2H 2022/23 Projects launched in previous financial years St. George’s Mansions * 133 Portofino Ho Man Tin,
Slide 19: Total contracted sales of ~HK$18.2 billion not yet recognised
Total contracted sales of ~HK$18.2 billion not yet recognised (on attributable basis as of 31 December 2022) Including ~HK$4.9 billion attributable contracted sales expected to be recognised in 2H 2022/23 Projects launched in previous financial years Silversands Ma On Shan, New Territories Grand Cen
Slide 20: Attractive & exciting pipeline of new project launches for 2023
Attractive & exciting pipeline of new project launches for 2023 Six projects in the pipeline Stake Attributable Attributable number of Location (%) plot ratio area (sq.ft.) residential units ONE CENTRAL PLACE 100* 84,261 121 Grand Mayfair III 33.33# 121,504 227 Villa Garda III 40# 128,520 258 Wong C
Slide 21: Property rental
Property rental | SS ANL LTT LT 7 7 Qsino LAND COMPANY LIMITED
Slide 22: Rental activities
Rental activities Improvement in overall occupancy rate offset by negative rental reversion Interim 2022/23 Interim 2021/22 % Change Gross Rental Revenue * HK$1,728.3m HK$1,797.9m -3.8% Net Rental Revenue * HK$1,480.6m HK$1,557.8m -4.9% *All figures are attributable to the Group, including attributa
Slide 23: Diversified and balanced investment properties portfolio
Diversified and balanced investment properties portfolio Providing steady recurring rental income Gross rental revenue* for the first-half of the past five financial years Breakdown by Carpark Residential sectors 9% 4% HK$ million Industrial 2,400 8% 2,097 2,107 Retail 2,000 1,842 50% 1,797 1,728 Of
Slide 24: Hong Kong portfolio – retail trade mix
Hong Kong portfolio – retail trade mix Remained largely stable yoy Breakdown by marketable floor area • A slight increase in F&B mix due to: - Relaxation of pandemic-related measures leading to higher dine- 29.7% 30.5% out demand 45.6% As of As of - Intended to draw traffic to other 47.2% 31 Dec 202
Slide 25: Properties under development
Properties under development providing an increase of ~10% in commercial spaces under investment properties* Attributable Project Stake (%) plot ratio area (sq. ft.) Hong Kong 38 Wing Kei Road 100 176,906 KIL 11285, Wing Kwong Street / Sung On Street Project Joint Venture 22,753 199,659 Mainland Chi
Slide 26: Revaluation of Investment properties
Revaluation of Investment properties A decline of 1.0% in IP fair value (exclude new projects, disposals and exchange difference) • Total attributable value of investment properties Revaluation gain / (loss) on investment properties (including associates and joint ventures) was (net of deferred taxa
Slide 27: Proactive approach in supporting retail tenants
Proactive approach in supporting retail tenants Continuously optimising tenant mix to cater to local taste & preferences Drive footfall and consumption • Engaged in promotion activities to help tenants' sales • Partnered with major payment gateways to leverage on Government Consumption Voucher Schem
Slide 28: Initiatives to enhance customer engagement
Initiatives to enhance customer engagement Actions to drive footfall and boost tenant sales "Goal Together" • The Group invested to install large screens to live broadcast 64 matches of the FIFA World Cup Qatar 2022 at three of our flagship shopping malls, namely Olympian City 2, Tuen Mun Town Plaza
Slide 29: Initiatives to enhance customer engagement
Initiatives to enhance customer engagement Actions to drive footfall and boost tenant sales • Special set-ups and decorations for festive seasons and events to draw traffic to our retail properties • Promote and leverage on our “S+ REWARDS” digital programme to boost customers’ loyalty • Online and
Slide 30: Hotels
Hotels Qsino LAND COMPANY LIMITED
Slide 31: Hotel operations
Hotel operations Improving revenue and profitability Interim 2022/23 Interim 2021/22 % Change Hotel Revenue* HK$692.8m HK$247.7m + 179.6% Segment operating profit* HK$229.2m HK$12.6m + 1719.0% * Including attributable share of associates and joint ventures Interim Interim Business performance cont
Slide 32: Prospects
Prospects Qsino LAND COMPANY LIMITED
Slide 33: Prospects
Prospects Hong Kong With the recent full border reopening between Mainland China and Hong Kong, it will facilitate a normalisation in business environment As we enter 2023, positive developments in various markets and sectors is observed Property sales Over HK$18.2 billion of attributable cont
Slide 34: Thank you
5 SINO LAND COMPANY LIMITED Thank you
Slide 35: Q&As
LEE, AMAT EAGT TUT, 7 te Seti Su AC KCueKucnnncent TAMMY Q&As Qsino LAND COMPANY LIMITED
Slide 36: Our Performance in Sustainability Indices
Appendix Our Performance in Sustainability Indices
Slide 37: Sustainability Vision 2030 - Governance
Sustainability Vision 2030 - Governance Appendix Governance By 2030, 100% of approved suppliers are governed by our Contractor/Supplier Code of Conduct Sustainable and Ethical By 2025, 100% of approved suppliers to adhere to our Sustainable Procurement Policy Supply Chain By 2030, 50% of approved su
Slide 38: Sustainability Vision 2030 - Green Living (cont.)
Sustainability Vision 2030 - Green Living (cont.) Appendix Green Living By 2025, purchase 60% of seafood served at the Group’s hotels from sustainable sources By 2022, reduce single-use plastic consumption by 50% across all business lines from our 2017 baseline Material Use & By 2030, purchase 100%
Slide 39: Sustainability Vision 2030 - Innovative Design
Sustainability Vision 2030 - Innovative Design Appendix Innovative Design Achieve BEAM Plus certification for all of our new buildings in Hong Kong By 2030, obtain BEAM Plus Gold or above certification at 100% of our wholly-owned new development projects where applicable Sustainable Buildings Seek t
Slide 40: 2022/2023 Completed Asset Enhancement Works
Appendix 2022/2023 Completed Asset Enhancement Works Fullerton Centre | Wholesale Conversion Remington Centre | Wholesale Conversion
Slide 41: 2022/2023 Completed Asset Enhancement Works
Appendix 2022/2023 Completed Asset Enhancement Works Island Resort Mall | Toilet Renovation Pacific Plaza | Podium Renovation Phase 2
Slide 42: 2022/2023 Completed Asset Enhancement Works
Appendix 2022/2023 Completed Asset Enhancement Works Olympian City 2 | South Atrium Event Arena Olympian City 2 | North Atrium LED Screen
Slide 43: 2022/2023 Completed Asset Enhancement Works
Appendix 2022/2023 Completed Asset Enhancement Works Shatin Galleria Mall | Toilet Renovation Sunshine Plaza | Toilet Renovation
Slide 44: Asset Enhancement Works in Progress
Appendix Asset Enhancement Works in Progress Westin Centre | Wholesale Conversion Citywalk 2 | G/F Arcade Re-layout Olympian City 2 | 1/F New Shopping Arcade Tuen Mun Town Plaza 1 | Toilet Renovation
Slide 45: Asset Enhancement Works in Progress
Appendix Asset Enhancement Works in Progress Hong Kong Pacific Plaza | B/F Arcade Re-layout Citywalk & Citywalk 2 | Toilet Renovation Island Resort Mall | 1/F Arcade Ceiling Renovation The Johnston | Apartment Renovation Phase 2
Slide 46: Asset Enhancement Works in Planning
Appendix Asset Enhancement Works in Planning China Hong Kong City Promenade Hong Kong Gold Coast Residences Pacific Palisade Clubhouse Regentville Mall
Sino Land Company — H1 FY2022/23 Earnings Presentation on 6ix