Yuzhou Group Holdings Co., Ltd. · HKEX:1628
Yuzhou — Yuzhou Properties Company — FY2011 Earnings Presentation
40 slides from Yuzhou's earnings presentation, Mar 23, 2012
Slide 1: 2011 Annual Results Announcement
2011 Annual Results Announcemen nt 23 March 2012 1
Slide 2: Disclaimer
DISCLAIMER These materials have been prepared by Yuzhou Properties Company C Limited (the “Company”) solely for informational use during its presentation to current and/or prospective invesstors to provide an update on the business performance and d l development off the h Company. C No representati
Slide 3: About Yuzhou Properties (1628.HK)
ABOUT YUZHOU PROPERTIES (016 628. HK) z A leading property develo oper in West Strait Economic Zone with footprints in the Top 3 largest cities in Fujiaan Province z nal developer over the long haul Vision to become a nation z Defensive land cost through smart land acquisitions : weighted average un
Slide 4: Table of Contents
TABLE OF CONTENTS I. 2011 ANNUAL FINANCIAL HIGH HLIGHTS II. REVIEW OF 2011 BUSINESS OP PERATIONS III. FUTURE PERSPECTIVES IV. APPENDIX 4
Slide 5: 2011 Annual Financial Highlights
2011 ANNUAL FINANCIAL HIGHLIGHTS 5
Slide 6: Highlights of 2011 Annual Results
HIGHLIGHTS OF 2011 ANNUAL RESSULTS FINANCIAL HIGHLIGHTS FOR THEE 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
Slide 7: 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 7
Slide 8: FY2011 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% SSales 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 3,839,0
Slide 9: Analysis on FY2011 Recognized Property Sales
ANALYSIS ON FY2011 RECOGNIZED D PROPERTY SALES Recognized Property Sales* Recognized GFA & ASP RMB million illi GFA (sq.m.) ASP (RMB/sq.m.) ( / ) Recognized g Sales byy Region g Recognized g GFA byy Region g % % * After 5.5% Business Taxes 9
Slide 10: FY2011 Key Balance Sheet Items
FY2011 KEY BALANCE SHEET ITEMSS Cash Position Total Debt RMB million RMB million Total Asset Shareholders’ Equity Shareholders RMB million RMB million 10
Slide 11: FY2011 Stable Financial Position
FY2011 STABLE FINANCIAL POSITIO ON 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 = RM MB 5,557 million illi 11
Slide 12: Review of 2011 Business Operations
REVIEW OF 2011 BUSINESS OPERATIONSS 12
Slide 13: 2011 Contracted Sales
2011 CONTRACTED SALES Contracted Contracted Contracted Contracted Sales # Proje ect City Sales As of Total GFA ASP (FY2010 vs. FY2011) (RMB mn) (%) (sq.m.) (RMB/sq.m.) Yuzhou Univerrsity City RMB million 1 Xiamen 684 16% 93 393 93,393 7 322 7,322 Phase II Yuzhou Univerrsity City 2 Xiamen 52 1% 2,575
Slide 14: More Diversified Revenue Streams
MORE DIVERSIFIED REVENUE STREEAMS 2010 Contracted Sales by City 2011 Contracted Sales by City % 4 % 11 Xiamen 25 43 Xiamen Fuzhou Fuzhou 19 Shanghai Shanghai 66 Hefei 11 Hefei 21 100%=RMB 5,217 million 100%=RMB 4,296 million 2010 Contracted GFA by City 2011 Contracted GFA by City % 11 % 6 42 43 Xiam
Slide 15: FY2011 Sell-through Rate Reached 56%
FY2011 SELL‐THROUGH RATE REAC CHED 56% The Average Sell‐through Rate is 56% % 56% City Xiamen Xiamen Xiamen Xiamen Xiamen Xiamen Xiam men Xiamen Fuzhou Fuzhou Shanghai Shanghai Hefei Xiamen GFA Launched 137,493 36,023 20,177 8,212 58,534 54,380 35 5,378 49,288 37,677 40,129 3,582 33,258 338,850 3,07
Slide 16: Monthly Contracted Sales in 2011
MONTHLY CONTRACTED SALES IN 2011 2 Monthly Contracted Sales ( Jan – Dec 2011) Contracted Sales ASP (RMB’ million) (RMB/sq.m.) 800 11,132 11,069 12,000 10,406 10,611 700 9 830 9,830 9,839 9 839 689 9,332 9,453 10,000 8,972 604 8,605 600 7,891 495 8,000 , 500 453 400 6,328 6,000 344 358 300 285 266 25
Slide 17: Land Replenishment in FY2011
LAND REPLENISHMENT IN FY2011 Date of Total Saleable GFA Average Land Cost City Project Type Methodology Acquisition (sq.m.) ( (RMB/sq.m.) q ) Mar 2011 Shanghai SOHO/Serviced Apt M Merger & Acquisition 211,418 1,324 Participation with May 2011 Quanzhou Resi/Com/Retail 491,800 338 local Government Tot
Slide 18: Snapshot of Land Bank
SNAPSHOT OF LAND BANK 5.3million sq.m. as at 31 Dec 2011 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 491,800 33
Slide 19: Ability to Obtain Sustainable Project Finance
ABILITY TO OBTAIN SUSTAINABLE PROJECT P FINANCE Credit Facilitiies Used Facilities Remaining Facilities # Lending Banks City (as of 31 Dec, RM MB mn) (as of 31 Dec, RMB mn) (as of 31 Dec, 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 30
Slide 20: 2011 Cash Flow Position
2011 CASH FLOW POSITION (Unaudited) RMB Bn Investment Property New Debt D RMB Bn Income Drawdoown Cash on Hand (1 Jan 2011) 2 73 2.73 0.11 2.48 8 Cash Proceeds from Contracted Sales 4.16 Cash on Contracted Sales To otal Inflow Rental & Management Fee Income 0.11 Hand Cash Proceeds 9.48 2.73 4.16 New
Slide 21: Future Perspectives
EX; Fa 2 ttt SE AS 153 BR ZS He YUZHOU PROPERTIES COMPANY LIMITED Stock Code: 01628.HK
Slide 22: A Promising Economic Zone: West Strait
A PROMISING ECONOMIC ZONE : WEST W STRAIT GDP GDP per Capita Residential Investment Average Residential Price Source : Statistical Bu ureau of Fujian & Xiamen 22
Slide 23: Market Leader in West Strait Economic Zone
MARKET LEADER IN WEST STRAIT ECONOMIC E ZONE Focus on the West Strait Economic Zone e A new strategic focus and growth engine in China promotted by the State Council Penetrate further into the region To solidify the long‐time long time market leadership by expandingg into lower‐tier cities such as Z
Slide 24: With a Strong Focus in Xiamen, Fujian Province
WITH A STRONG FOCUS IN XIAMEN N, 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 % 2 Yuzhou Sunshine Garde
Slide 25: Competitive Edge of a Regional Leader
COMPETITIVE EDGE OF A REGIONA AL LEADER Weighted Average Cost of Funding Limited Outstanding Land Premium RMB Million % as of Total Interest 2 500 2,500 2 254 2,254 # Category Debt rate(%) 111 2,143 1 Onshore Project Loan 54% 7.58% 2,000 Total Outstanding 2 Onshore Trust 5% 8.30% Paid Land Land 1,50
Slide 26: Strong Management Team
STRONG MANAGEMENT TEAM Stable management team Strict selectio on of professional On average over 11 with most key members manageme ent members with years of experience having been with the extensive exp perience and proven in property Company p y for over 12 yyears record development p Appointed sev
Slide 27: 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 28: Major Newly-Launched Projects in 2012
MAJOR NEWLY‐LAUNCHED PROJEC CTS IN 2012 Xiamen Yuzhou Cloud Top Inter’l (廈門禹洲．雲 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 Plan
Slide 29: 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 30: Appendix
EX; Fa 2 ttt SE AS 153 BR ZS He YUZHOU PROPERTIES COMPANY LIMITED Stock Code: 01628.HK
Slide 31: FY2012: Detailed Launch Table
FY2012: DETAILED LAUNCH TABLE Planned Sales Areaa 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,
Slide 32: Xiamen Property Market Overview
XIAMEN PROPERTY MARKET OVER RVIEW Residential Land Supply and Property P Transactions in Xiamen ’000 sq.m. RMB / sq.m. 8,753 15,000 8,000 12,016 11,161 9,7 722 6,500 , 8,830 6,000 8 384 8,384 5 015 5,015 10,000 5,067 4,180 3,515 4,133 3,849 3,175 4,000 2,610 2,405 1,073 2,660 2,399 2,494 5,000 2,000
Slide 33: Fuzhou Property Market Overview
FUZHOU PROPERTY MARKET OVER RVIEW Residential Land Supply and Property P Transactions in Fuzhou ’000 sq.m. RMB / sq.m. 10,000 20,000 8,000 14,026 8,000 13,697 15,000 6,200 11,349 5,647 6,000 5 234 5,234 5,214 , 4 594 4,594 7,3 315 10,000 6,067 4,000 3,404 4,060 2,780 2,076 2,166 3,798 3,080 1,871 1
Slide 34: Shanghai Property Market Overview
SHANGHAI PROPERTY MARKET OV VERVIEW Residential Land Supply and Pro operty Transactions in Shanghai ’000 sq.m. RMB / sq.m. 35,000 32,800 25000 30,000 28,500 19,126 19,196 26,200 26,313 20000 24,712 25 000 25,000 20,000 11,790 15000 1 15,545 8,250 9,243 13,759 15,000 6,698 7,039 10000 9,212 10,000 6,
Slide 35: Hefei Property Market Overview
HEFEI PROPERTY MARKET OVERVIEEW Residential Land Supply and Property Transactions in Hefei ’000 sq.m. RMB / sq.m. 14,000 8,000 11,800 6,125 12,000 6,022 9,500 6,000 10 000 10,000 8 700 8,700 4,095 7,610 8,000 425 3,4 4,380 2,874 3,154 4,000 6,000 2,799 12,978 6,547 9,380 8,949 2,229 8,667 4,000 5,40
Slide 36: Detailed Land Bank Table
DETAILED LAND BANK TABLE Project Site Area Location Unit Land Cost Total GFA Total Saleable Sold & Pre‐sold GFA Unsold GFA Unsold GFA held Land Reserve Interest in the G GFA Delivered GFA held for Sale for Investment Project （ sq.m.） （ RMB/sq.m.） （ sq.m.） （ sqq.m.） （ sq.m.） （ sq.m.） （ sq.m.） （ sq.m.
Slide 37: Diversifying Land Bank
DIVERSIFYING LAND BANK FY 2010 FY 2011 By City By City % % By Project Type By Project Type % % 100% = 4.92 million sq.m. 100% = 5.29 million sq.m. 37
Slide 38: 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 39: FY 2011 Key Financials
FY 2011 KEY FINANCIALS (RMB’000) As att 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 liabilit
Slide 40: 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 40
Yuzhou Properties Company — FY2011 Earnings Presentation on 6ix