Chinese Estates Holdings Ltd. · HKEX:127
Chinese Estates — H1 2005 Earnings Presentation
26 slides from Chinese Estates's earnings presentation, Dec 20, 2005
Slide 1: Chinese Estates Holdings Limited Interim Results
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Slide 2: Agenda
AGENDA Financial Highlights Business Review Prospects Open Forum 2
Slide 3: Financial Highlights
OS AMES em CHINES! INGS LIMITED. FINANCIAL HIGHLIGHTS Wi cninassaseles com
Slide 4: Financial Highlights
FINANCIAL HIGHLIGHTS 2004 For the period ended Jun 30 2005 (Restated) Change HK$’m HK$’ HK$’m Turnover 430 3,599 -87.9% Gross profit 344 318 8.2% Profit attributable to shareholders 1,962 584 235.9% Basic EPS HK96.7 cents HK27.7 cents 249.1% Interim Dividend per share 9.0 cents # 8.5 cents 5.9% # Ad
Slide 5: Key Financial Figures
KEY FINANCIAL FIGURES Jun 30, 2005 Dec 31, 2004 (Restated) Total net assets (HK$M) 18,260 16,183 Net assets per share (HK$) 8.99 7.97 Interest coverage ratio 22.84 22.51 Average return on equity 11.5% 4.7% Cash & cash equivalents (HK$M) 4,584 1,852 Gearing ratio (Net debt to equity) 28.4% 32.3% 5
Slide 6: 1H2005 Income Analysis
1H2005 INCOME ANALYSIS For the period ended Jun 30 (HK$ million) 1H2005 1H2004 (Restated) Change Rental (net) 335 330 1.5% Property Sale [Parc Palais (63 units) & Houses A & B of Barker Rd.] 87 117 -25.6% Fair Value Changes on investment properties (IP) 1,612 --- N/A Securities Investment & Structur
Slide 7: Effect from New Financial Reporting Standards
EFFECT FROM NEW FINANCIAL REPORTING STANDARDS Major Financial Implications HKAS 40 Î Investment property revalued at interim and year end Î Gains from changes in the fair value of investment properties recognized in income statement Î Self-occupied office and hotel reclassified from investment pro
Slide 8: Business Review
BUSINESS REVIEW www.chineseestates.com —_ ~~
Slide 9: Major Property Investment - Retail in Hong Kong
MAJOR PROPERTY INVESTMENT - RETAIL IN HONG KONG Achieved record high occupancy rate in 1H2005 : average 95% Achieved higher rental upon lease renewal / new letting compared with 1H2004 : 30% - 70% Property name Occupancy rate 1H 2005 Occupancy rate 1H 2004 Windsor House (retail) 93.3% 92.7% Caus
Slide 10: Major Property Investment - Retail in Hong Kong
MAJOR PROPERTY INVESTMENT - RETAIL IN HONG KONG Total attributable GFA Approx. : 1,050,000 sq. ft. Windsor House: 39% Silvercord Shopping Arcade: 24% Excelsior Plaza: 5% Causeway Place: 4% Wanchai Computer Centre: 4% Others: 24% 10
Slide 11: Major Property Investment - Office in Hong Kong
MAJOR PROPERTY INVESTMENT - OFFICE IN HONG KONG Achieved high occupancy rate in 1H2005 : average 94% Achieved higher rental upon lease renewal / new letting compared with 1H2004 : about 15% Property name Occupancy rate 1H 2005 Occupancy rate 1H 2004 Windsor House (office) 98.6% 96.1% MassMutual
Slide 12: Major Property Investment - Office in Hong Kong
MAJOR PROPERTY INVESTMENT - OFFICE IN HONG KONG Total attributable GFA Approx. : 1,260,000 sq. ft. Windsor House: 32% MassMutual Tower: 26% Harcourt House: 20% Others: 22% 12
Slide 13: Property Development
PROPERTY DEVELOPMENT Continued to focus on quality mid to high-end property projects Projects for sale and pre-sale during 1H2005 Î Remaining units in Parc Palais – 63 units sold Î Remaining units in Indihome – 19 units sold Î First Launch of Miami Crescent – 10 houses sold Signed Development
Slide 14: Major Investment in PRC
MAJOR INVESTMENT IN PRC Achieved satisfactory occupancy rates Property name Location Group’ Group’s interest Occupancy rate 1H2005 Occupancy rate 1H2004 Hong Kong New World Tower - office Shanghai 91.1% 77.7% - retail 34.65% 81.0% 50% Peregrine Plaza - office Shanghai 50% 90.4% 98.6% - retail 97.1
Slide 15: Corporate Highlights 1H2005
CORPORATE HIGHLIGHTS 1H2005 February Privatization of The Kwong Sang Hong International Limited Owns 50% effective interest in Kwong Sang Hong’s assets Total consideration from Chinese April Estates: HK$187.7 million Issue of HK$1.81 billion Zero Coupon Convertible Bonds due 2010 Well-position
Slide 16: Corporate Governance
CORPORATE GOVERNANCE Dedicated to good standards and practice of corporate governance Complying with the code provisions in “Code of Corporate Governance Practices” set out in Appendix 14 of the Listing Rules except technical deviations Reviewing the financial statements by Audit Committee wit
Slide 17: Prospects
17 PROSPECTS WWI eninassastates. com
Slide 18: Outlook
OUTLOOK Rising and strengthening economy Î continued upward momentum Î sound economic fundamentals Retail market upturn driven by Î strong tourism spending Î rebound local consumer and business confidence Î future opening of Hong Kong Disneyland Steady Rise in Prices of Mid to high-end residen
Slide 19: Future Plans – Property Investment
FUTURE PLANS – PROPERTY INVESTMENT Firm and increasing rental income base Î Maintain attractive tenant-mix Î Maximize the rental values in new lettings / Lease renewals Rental Increments of New Leases / Lease Property Renewals Agreed from June to August 2005 Causeway Place 32 % - 439 % Silvercord
Slide 20: Future Plans – Property Investment
FUTURE PLANS – PROPERTY INVESTMENT Renovation and Repackaging Programmes of Landmark Properties Properties and Occupied Estimated Estimated locations GFA (sq ft) Time frame Change of rental Silvercord Shopping Arcade, Arcade Tsim Sha Tsui 12,000 4Q 2005 > 700% Stage 1 - part of basement Stage 2 -
Slide 21: Future Plans – Property Investment
FUTURE PLANS – PROPERTY INVESTMENT Redevelopment of Tung Ying Building, Tsim Sha Tsui Î Start redevelopment in early 2006 Î Redevelop into a retail-predominant complex together with entertainment and other commercial usage Î GFA of the redeveloped property - approx. 400,000 sq ft 21
Slide 22: Future Plans – Property Development
FUTURE PLANS – PROPERTY DEVELOPMENT Remain well-focused on mid to high-end property projects Î Replenish quality land bank at the right pricing and timing Î Sell properties strategically 22
Slide 23: Future Plans – Property Development
FUTURE PLANS – PROPERTY DEVELOPMENT Launch / Expected Property name Group’s interest Usage No. of units launch date * Parc Palais, Palais, King’ King’s Park 10% R 700 In progress Miami Crescent, Crescent, Sheung Shui 50% H 78 In progress Mount Beacon, 33.33% H/R 219 In progress Kowloon Tong Wanchai
Slide 24: Future Plans – Property Development
FUTURE PLANS – PROPERTY DEVELOPMENT Projects in 2005 and onwards Sheung Shui Wanchai Road / Tai Yuen Street Redevelopment Mount Beacon, Wanchai Tsuen Wan Parc Palais, King’s Park Kowloon Tong 24
Slide 25: Future Plans
FUTURE PLANS Grasp lucrative business opportunities in the Greater China Î Strive to create a promising future for stakeholders 25
Slide 26: Open Forum
OPEN FORUM WWW. ChineSSesiate sxc
Chinese Estates Holdings — H1 2005 Earnings Presentation on 6ix