Yuzhou Group Holdings Co., Ltd. · HKEX:1628
Yuzhou — Yuzhou Properties Company — Investor Presentation (July 2012)
42 slides from Yuzhou's investor presentation, July 2012
Slide 1: Corporate Presentation July 2012
Corporate Presentation July 2012 以誠建城 以愛築家 Building Cities with Heart Building Homes with Love
Slide 2: About Yuzhou Properties (01628.HK)
ABOUT YUZHOU PROPERTIES (01628. HK) z A leading property developer in West Strait Economic Zone with footprints in the Top 3 largest cities in Fujian Province z Vision to become a national developer over the long haul z Defensive land cost through g smart land acquisitions q : weighted g average g u
Slide 3: About West Strait: A Promising Economic Zone
ABOUT WEST STRAIT: A PROMISING ECONOMIC ZONE GDP GDP per Capita Residential Investment Average Residential Price Source : Statistical Bureau of Fujian & Xiamen 3
Slide 4: Table of Contents
TABLE OF CONTENTS I COPING STRATEGIES I. II REVIEW OF BUSINESS OPERATIONS II. III DEVELOPMENT AND SALES PLAN III. IV. LAND BANK V. FINANCIAL CONDITION VI. APPENDIX 4
Slide 5: Coping Strategies
ivy ReMi EAR i PRZ 5] Si wad, YUZHOU PROPERTIES COMPANY LIMITED - Stock Code: 01628.HK
Slide 6: Strategies to Weather the Market Downturn in 2H 2011
STRATEGIES TO WEATHE THE MARKET DOWNTURN IN 2H 2011 Adjust Product Mix Slow Down Capex 9 Increase the middle-end and low-end products to 9 Adopted prudent strategies to slow down land meett the th demand d d off end-users d acquisition, i iti only l bought b ht two t lands l d withith in i 2011 9 Sp
Slide 7: Review of Business Operations
REVIEW OF BUSINESS OPERATIONS 7
Slide 8: Contracted Sales
CONTRACTED SALES Contracted Contracted Contracted Contracted Sales # Project City Sales As of Total GFA ASP (FY2010 vs. FY2011vs. 1H2012) (RMB mn) (%) (sq.m.) (RMB/sq.m.) RMB million 1 Yuzhou Y h University U i it City Cit Phase Ph II Xi Xiamen 268 7% 37 717 37,717 7 102 7,102 5,217 2 Yuzhou Castle
Slide 9: Monthly Contracted Sales in 2011 vs. 2012
MONTHLY CONTRACTED SALES IN 2011 vs. 2012 Monthly Contracted Sales ( Jan 2011 – Jun 2012 ) Contracted Sales ASP (RMB’ million) (RMB/sq.m.) 1,000 11,132 11,069 12,000 10,406 , 881 882 10,611 9,830 9,839 778 9,332 9,453 10,000 800 8,972 8,983 8,605 689 7,891 8,836 8,915 8,704 644 8,000 8 348 8,348 604
Slide 10: 5M 2012 Cash Flow Position
5M 2012 CASH FLOW POSITION (Unaudited) RMB Bn FY2011 5M2012 FY2012 RMB Bn Rental & Management New Debt (A) (A) (E) Fee Income Drawdown 0.05 1.10 Cash on Hand (at the beginning) 2.73 1.96 1.96 Cash Proceeds from Contracted Sales 4.16 2.55 4.50 Cash C h Cash h on Contractedd Sales l Inflow Rental & Ma
Slide 11: Development and Sales Plan
DEVELOPMENT AND SALES PLAN 11
Slide 12: FY2012: Detailed Launch Table
FY2012: DETAILED LAUNCH TABLE Planned Sales Area for 1H Planned Sales Area for 2H Planned Sales Area for FY Percentage of Planned Name of Project City Project Type 2012 (sq.m.) 2012 (sq.m.) 2012 (sq.m.) Sales Area (%) Apartment 21,959 12,417 34,376 3% 1 Yuzhou University City Commercial 1,107 ‐ 1,10
Slide 13: FY2012: Launch Breakdown
FY2012: LAUNCH BREAKDOWN By City By Launch Type % Shanghai Tianjin j % 9 4 Xiamen Hefei Fuzhou New Launch 17 Quanzhou 46 Existing i i Existing Xiamen Hefei 54 New Launch 56 Shanghai Quanzhou Tianjin 8 Fuzhou 6 By Project Type By Period % Commercial % Car Parking 3 9 Villa Apartment 7 1H SOHO 1H 46 S
Slide 14: Major Contributing Projects in 2012
MAJOR CONTRIBUTING PROJECTS IN 2012 Xiamen Yuzhou Shoreline Xiamen Yuzhou Central Coast (廈門禹洲．尊海) (廈門禹洲．中央海岸) ¾ At the Heart of Haicang ¾ Located at the seafront of CBD, offering a panoramic Xiamen Jimei District, right view of the sea, lake and at the transportation hub forestry ¾ High‐rise residen
Slide 15: Major Newly-Launched Projects in 2012
MAJOR NEWLY‐LAUNCHED PROJECTS IN 2012 Xiamen Yuzhou Cloud Top Inter’l (廈門禹洲．雲頂國際) ¾ The first city integrated project located right at the new core area of Xiamen Island Island, linked to BRT (Bus Rapid Transit) ¾ 3 Residential high‐rises and commercial space ¾ Land cost: RMB 3,087/sq.m., ¾ Planned
Slide 16: Landbank
ivy ReMi EAR i PRZ 5] Si wad, YUZHOU PROPERTIES COMPANY LIMITED - Stock Code: 01628.HK
Slide 17: Detailed Land Bank Table
DETAILED LAND BANK TABLE # Project Site Area Location Unit Land Cost Total GFA Total Saleable GFA Sold & Delivered Pre‐sold GFA Unsold GFA held for Unsold GFA held Land Reserve Interest in the GFA Sale for Investment Project （sq.m.） （RMB/sq.m.） （sq.m.） （sq.m.） （sq.m.） （sq.m.） （sq.m.） （sq.m.） （sq.m.）
Slide 18: Snapshot of Land Bank
SNAPSHOT OF LAND BANK 6.1million sq.m. as at 31 May 2012 Total Saleable Land Cost City GFA (sq.m.) (RMB/sq.m.) Bohai Rim Region Tianjin 449,198 997 Shanghai 597,200 1,769 Yangtze River Delta Hefei 1,142,308 377 Xiamen 2,220,669 2,191 West Strait Economic Fuzhou 334,345 2,425 Zone Quanzhou 1,315,200
Slide 19: Land Replenishment in 2011 & 2012
LAND REPLENISHMENT IN 2011 & 2012 Date of Total Saleable GFA Average Land Cost City Project Type Methodology Acquisition (sq.m.) (RMB/sq.m.) Mar 2011 Shanghai SOHO/Serviced Apt Merger & Acquisition 211 418 211,418 1 324 1,324 Participation with local May 2011 Quanzhou Resi/Com/Retail 491,800 338 Gov
Slide 20: Market Leader in West Strait Economic Zone
MARKET LEADER IN WEST STRAIT ECONOMIC ZONE Focus on the West Strait Economic Zone A new strategic focus and growth engine in China promoted by the State Council Penetrate further into the region To solidify the long‐time long time market leadership by expanding into lower‐tier cities such as Zhangzh
Slide 21: Financial Condition
ivy ReMi EAR i PRZ 5] Si wad, YUZHOU PROPERTIES COMPANY LIMITED - Stock Code: 01628.HK
Slide 22: Ability to Obtain Sustainable Project Finance
ABILITY TO OBTAIN SUSTAINABLE PROJECT FINANCE Credit Facilities Used Facilities Remaining Facilities # Lending Banks City (as of Dec,2012, RMB mn) (as of Dec,2012 RMB mn) (as of Dec,2012 RMB mn) 1 CCB Xiamen 1,990 1,570 420 2 ICBC Xiamen 1,900 ‐ 1,900 3 BOC Xiamen 600 550 50 4 Bank of Comm Hefei 300
Slide 23: Competitive Edge of a Regional Leader
COMPETITIVE EDGE OF A REGIONAL LEADER Weighted Average Cost of Funding(as at Dec 2012) Limited Outstanding Land Premium(as at May 2012 RMB Million Outstanding % as of Total Interest 3000 Land Premium # Category Debt rate(%) Paid Land 2,537 Premium 283 111 2500 1 Onshore Project Loan 54% 7.58% 2,143
Slide 24: Cost Structure
COST STRUCTURE Cost of Properties Sold as a % of Revenue from Sale of Properties (FY2009 vs. FY2010 vs.FY2011) GP GP GP Margin1: Margin1: Margin1: 49% 41% 49% Total Total Total Costs: Costs: Costs: 51% 59% 51% Note 1: Gross Profit Margins from Property Sales 24
Slide 25: Appendix
ivy ReMi EAR i PRZ 5] Si wad, YUZHOU PROPERTIES COMPANY LIMITED - Stock Code: 01628.HK
Slide 26: Highlights of 2011 Annual Results
HIGHLIGHTS OF 2011 ANNUAL RESULTS FINANCIAL HIGHLIGHTS FOR THE 12 MONTHS ENDED 31 DEC 2011 Compared with FY2010 z Recognized revenue: RMB3,839.1 million (‐RMB426.5 million or ‐10.0%) z C t t d sales: Contracted l RMB4,295.9 RMB4 295 9 million illi ( RMB921 4 million or ‐17.7%) (‐RMB921.4 17 7%) z Pr
Slide 27: FY2011 Key Profit & Loss Items
FY2011 KEY PROFIT&LOSS ITEMS Revenue* Gross Profit RMB million RMB million EBITDA Core Profit RMB million RMB million * After 5.5% Business Taxes 27
Slide 28: FY 2011 Revenue Breakdown
FY 2011 REVENUE BREAKDOWN 100%=RMB 3,839 million 100%=RMB 4,266 million (RMB’000) FY2011 FY2010 Change 100% 1.4% 0.8% 0.8% Sales l off 1 3% 1.3% 3,735,365 4,198,037 ‐11% properties 95% Rental income 51,411 33,654 +53% 90% 97.3% 98.4% Property 85% 52,300 33,867 +54% management fees 80% Total 3,839,07
Slide 29: Analysis on FY2011 Recognized Property Sales
ANALYSIS ON FY2011 RECOGNIZED PROPERTY SALES Recognized Property Sales* Recognized GFA & ASP RMB million illi GFA (sq.m.) ASP (RMB/sq.m.) ( / ) Recognized ecog ed Sales Sa es by Region eg o Recognized ecog ed GFA G by Region eg o % % * After 5.5% Business Taxes 29
Slide 30: FY2011 Key Balance Sheet Items
FY2011 KEY BALANCE SHEET ITEMS Cash Position Total Debt RMB million RMB million Total Asset Shareholders’ Equity Shareholders RMB million RMB million 30
Slide 31: FY2011 Stable Financial Position
FY2011 STABLE FINANCIAL POSITION Net Gearing Ratio Debt Profile by Maturity % % Debt Profile byy Currencyy Debt Profile byy Type yp % % US$: 5‐year @ 13.5% Coupon rate HK$: 3‐year @ 10% Totall Debt b = RMB 5,557 million illi 31
Slide 32: Xiamen Property Market Overview
XIAMEN PROPERTY MARKET OVERVIEW Residential Land Supply and Property Transactions in Xiamen '000 sq.m. RMB/sq.m. 8,000 8 000 13,973 16 000 16,000 7,000 12,577 14,000 11,600 6,000 9,891 6,743 12,000 9,708 6,055 8,854 5,000 10,000 4 000 4,000 6 601 6,601 8 000 8,000 4,744 3,894 4,109 3,000 5,726 6,000
Slide 33: Shanghai Property Market Overview
SHANGHAI PROPERTY MARKET OVERVIEW Residential Land Supply and Property Transactions in Shanghai '000 sq.m. RMB/sq.m. 40,000 40 000 14 219 14,219 16 000 16,000 13,316 13,407 35,000 11,744 14,000 34,809 30,000 12,000 9,243 25,000 7,767 8,159 8,178 10,000 26,883 26,442 20 000 20,000 23,421 23 421 7 945
Slide 34: Shanghai Property Market Overview
SHANGHAI PROPERTY MARKET OVERVIEW Residential Land Supply and Property Transactions in Shanghai '000 sq.m. RMB/sq.m. 40,000 40 000 14 219 14,219 16 000 16,000 13,316 13,407 35,000 11,744 14,000 34,809 30,000 12,000 9,243 25,000 7,767 8,159 8,178 10,000 26,883 26,442 20 000 20,000 23,421 23 421 7 945
Slide 35: Hefei Property Market Overview
HEFEI PROPERTY MARKET OVERVIEW Residential Land Supply and Property Transactions in Hefei '000 sq.m. RMB/sq.m. 12 000 12,000 6 259 6,259 6 223 6,223 7 000 7,000 6,007 10,000 10,684 6,000 10,019 4,635 9,531 4,100 9,398 5,000 8,000 3,154 7,754 8,055 4,000 6 000 6,000 2 799 2,799 2 874 2,874 6,256 3,00
Slide 36: Enhancement in Senior Management Team
ENHANCEMENT IN SENIOR MANAGEMENT TEAM Stable management team Strict selection of professional On average over 11 with most key members management members with years of experience having been with the extensive experience and proven in property Company p y for over 12 years y record development p App
Slide 37: With a Strong Focus in Xiamen, Fujian Province
WITH A STRONG FOCUS IN XIAMEN, FUJIAN PROVINCE 24 1 Largest Land Bank in Xiamen (As at Dec 2011) Fuzhou Million sq.m. Quanzhou Xiamen 9 5 6 3 8 7 Source : Listed companies annual reports & interim reports Residential Market Share in Xiamen* 1 Yuzhou University City 禹洲．大學城 % 20 2 Yuzhou Sunshine Gard
Slide 38: FY2011 Sell-Through Rate Reached 56%
FY2011 SELL‐THROUGH RATE REACHED 56% The Average Sell‐through Rate is 56% % 56% City Xiamen Xiamen Xiamen Xiamen Xiamen Xiamen Xiamen Xiamen Fuzhou Fuzhou Shanghai Shanghai Hefei Xiamen GFA Launched 137,493 36,023 20,177 8,212 58,534 54,380 35,378 49,288 37,677 40,129 3,582 33,258 338,850 3,076 (sq.
Slide 39: Diversifying Land Bank
DIVERSIFYING LAND BANK As at December 2011 As at May 2012 By City By City % % By Project Type By Project Type % % 100% = 4.92 million sq.m. 100% = 6.11 million sq.m. 39
Slide 40: FY 2011 Key Financials
FY 2011 KEY FINANCIALS For the year ended 31 Dec FY2011 FY2010 Change (%) Revenue (RMB’000) 3,839,076 4,265,558 ‐10% Gross Profit (RMB’000) 1,884,461 1,777,383 +6% Gross Profit Margin (%) 49% 42% +7pp Net Profit (RMB’000) 941,628 963,601 ‐2% EPS (RMB/share) 0 39 0.39 0 40 0.40 ‐3% 3% DPS (RMB/share)
Slide 41: FY 2011 Key Financials
FY 2011 KEY FINANCIALS (RMB’000) As at 31 Dec 2011 As at 31 Dec 2010 Change (%) Total current assets 13,416,940 10,881,309 +23% Total non non‐current current assets 4 836 171 4,836,171 3 711 283 3,711,283 +30% Total current liabilities 7,642,604 5,483,550 +39% Total non‐current non current liabiliti
Slide 42: Disclaimer
DISCLAIMER These materials have been prepared by Yuzhou Properties Company Limited (the “Company”) solely for informational use during its presentation to current and/or prospective investors to provide an update on the business performance and d l development off the h Company. C No representation
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