Yuzhou Group Holdings Co., Ltd. · HKEX:1628

Yuzhou — Yuzhou Properties Company — H1 2018 Earnings Presentation

45 slides from Yuzhou's earnings presentation, August 2018

  1. Slide 1: Interim Results

    Interim Results 2018 中期業績發佈會 Aug 2018

  2. Slide 2: Speakers

    Speakers Mr. LAM Lung On, Deputy to the National People’s Congress, J.P. Founder & Chairman Mr. CAI Minghui Executive President Mr. Jacky WONG CFO & Company Secretary 2

  3. Slide 3: Founder & Chairman Mr. Lam Lung On, J.P.

    Founder & Chairman Deputy to the National People’s Congress Mr. Lam Lung On, J.P. Founder & Chairman  Vice Chairman of the All-China General Chamber of Industry and Commerce (Member of the All-China Federation of Industry and Commerce (“ACFIC”))  Visiting Professor of the University of Science and

  4. Slide 4: Highlights

    Highlights A 100bn Journey started with Prudent & active land 26 cities in 6 metropolitan areas acquisition through multiple Dual Drivers: Residential +commercial strategies development Share options covering core mid-high level Acquired Coastal Greenland management, launched co-investment package a

  5. Slide 5: Business Overview

    Yuzhou ·Royale Aqua Mansion Business Overview Stay well-poised to embrace vibrant growth in 2H2018

  6. Slide 6: Contracted Sales on Track with Strong Growth Outlook in 2H2018

    Contracted Sales on Track with Strong Growth Outlook in 2H2018  Sales performance has grown dramatically over the past few years. Contracted sales in line with projected launching schedule  More projects will launch in 2H2018, as new strong growth catalysts for 2H2018 performance  Responding to m

  7. Slide 7: Contracted Sales in 1H2018

    Contracted Sales in 1H2018  In 1H2018, Yuzhou achieved a total contracted sales of approximately RMB21,494 mn; contracted GFA was 1,577,755 sq.m.; and the contracted ASP was RMB 13,623/sq.m. Interest in Contracted Contracted Contracted 1H2018 Contracted Sales by City Project Sales As of Total GFA A

  8. Slide 8: Monthly Contracted Sales & ASP in 1H2018

    Monthly Contracted Sales & ASP in 1H2018 Monthly Contracted Sales & Contracted ASP ( Jan 2017 - Jul 2018) Contracted Sales Contracted ASP (RMB mn) (RMB/sq.m.) 25,000 5,106 5,000 4,543 20,116 20,000 17,728 18,799 4,290 20,000 3,995 4,111 4,000 3,891 4,012 16,921 17,180 17,203 16,828 16,146 15,566 3,5

  9. Slide 9: Win-Win of Scale & Profitability

    Win-Win of Scale & Profitability Revenue, Gross profit & Gross profit margin Recognized GFA & ASP GFA ASP RMB mn ‘000 sq.m. RMB ‘000/sq.m. 36.3% 21,701 35.7% 40.0% 1,600 14,118 16,000 20,000 35.4% 33.0% 31.5% 1,400 12,574 16,000 13,672 30.0% 1,200 11,204 12,000 1,000 9,172 12,000 10,376 9,000 9,243

  10. Slide 10: Strategic Planning of Land Acquisition at Attractive Value

    Strategic Planning of Land Acquisition at Attractive Value  As of Jun 30, 2018, cultivating 6 metropolitan areas with a footprint in 25 cities  The land bank was approximately 17.25 mn sq.m. with the average land cost of RMB4,995 Average Land Land Bank GFA Region Cost Proportion (million sq.m.) (R

  11. Slide 11: New Land Bank since Beginning of 2018

    New Land Bank since Beginning of 2018 Total Att. land Avg. land Saleable land cost cost cost Site area GFA Att. GFA (RMB (RMB (RMB/sq. Time City Project type Methodology % (sq.m.) (sq.m.) (sq.m.) mn) mn) m.) 2018YTD Land Acquisition Strategy* Jan Suzhou Resi Bidding 20% 42,481 76,466 15,293 1,032 20

  12. Slide 12: Establishing Three Popular Product Lines with Superior Craftsmanship

    Establishing Three Popular Product Lines with Superior Craftsmanship  3 Popular Product Lines with priority on safety and quality Honor Langham Royale Target First-time Buyer and First-time Upgrader Upgrader Group : Upgrader  Delineated the product lines from 4 dimensions based on 4 aspects and de

  13. Slide 13: Regional Commercial Business Expansion

    Regional Commercial Business Expansion  Adhering to the operating philosophy of “Refined system, regulated management, procedural operation and friendly service”, Yuzhou Commercial provides customers with a comfortable and premium residential experience while realizing diversified innovation and de

  14. Slide 14: Hotel Operations - Vigorous development & growth

    Hotel Operations - Vigorous development & growth  Focusing on the development of serviced apartments as well as medium-to-high-end business hotels in order to establish premium hotel brands  Developing resort hotels while improving the existing hotel portfolio to strengthen the brand’s core compet

  15. Slide 15: Property Management Establishing a Distinguished Service System

    Property Management Establishing a Distinguished Service System  Upholding the philosophy of “Customer First, Service Oriented “ under the management concept of “Refinement, Professionalism, Integrity and Harmony”  Launched the “Royal Service“ luxury service system at all high-end sales offices un

  16. Slide 16: Expanding Branding Advantages

    Expanding Branding Advantages Named the Headquarters-level Key Bank Client by China HS Composite Large Cap & Mid MSCI China Index Construction Bank Cap Indexes • Headquarter-level key clients serve as the core client base of China Construction Bank’s differentiated services with priority being provi

  17. Slide 17: Financial Highlights

    Yuzhou ·Honor Glamour Financial Highlights A journey to 100 billion with highly-efficient operation

  18. Slide 18: Highlights of 1H2018

    Highlights of 1H2018 RMB bn 1H2018 1H2017 Changes Contracted sales 21.49 21.49 +0.03% Recognized revenue 9.24 7.25 +27.54% Gross profit margin 31.53% 32.95% -1.42pp Net profit 1.39 0.76 +83.45% Core profit 1.16 0.92 +25.90% Interim Dividend 11.0 8.5 +29.41% (HK cents/share) 2018 2017 RMB bn Changes

  19. Slide 19: Highlights of 1H2018 (Cont'd)

    Highlights of 1H2018 (Cont’d)  Increasingly diversified revenue streams, with rising contributions from recurring rental income and property management 100% = RMB 100% = RMB 9,243 mn 7,247 mn 1H2018 1H2017 Changes RMB mn 0.01% 0.02% 0.09% 0.12% Sales of 1.11% 0.99% 8,972.99 7,047.38 +27.32% propert

  20. Slide 20: Analysis on Recognized Property Sales

    Analysis on Recognized Property Sales Recognized property sales* Recognized GFA & ASP GFA ASP RMB mn ‘000 sq.m. RMB/ sq.m. 25,000 1,600 14,118 16,000 1,400 12,574 20,000 11,204 1,200 12,000 15,000 1,000 9,172 14,166 9,000 800 8,000 1,483 1,503 10,000 600 9,327 1,107 6,740 400 4,000 5,000 629 692 7,0

  21. Slide 21: Strong Balance Sheet

    Strong Balance Sheet Cash Position Total Debt RMB mn RMB mn 30,000 40,000 36,548 25,087 35,000 25,000 27,567 30,000 25,787 20,000 17,418 17,498 25,000 20,083 15,000 11,949 20,000 15,000 10,000 10,000 5,000 5,000 0 0 2015 2016 2017 2018 2015 2016 2017 2018 As at 31 Dec As at 30 Jun As at 31 Dec As at

  22. Slide 22: Stable Financial Position & Diversified Financing Channels

    Stable Financial Position & Diversified Financing Channels  Sustained a manageable net gearing ratio, with successful financing measures that further reduced the average funding cost  Moody’s, S&P and Fitch retained our ratings at Ba3, BB- and BB- respectively  Golden Credit Rating International

  23. Slide 23: 1H2018 Cash Position

    1H2018 Cash Position （RMB bn） 1H2018 FY2018E Cash Inflow Cash proceeds from contracted sales and other income +17.5 +37.3 Cash Outflow Land premium paid -10.6 -21.3 Construction cost capex -4.5 -9.0 Other expenses – Interest, tax, dividends and others -4.4 -10.2 23

  24. Slide 24: Future Perspective

    Yuzhou ·Honor Hill Future Perspective Rise to the challenge and achieve good quality

  25. Slide 25: Market Outlook

    Market Outlook Tightened Industry Rational Land Market Tightening Financing Steady Growth Period Policies Normalized Environment We expect regulation to With a price cap policy in place Cornerstone monetary Relying on greater civil become the norm during the and a tightening of funds, the policies r

  26. Slide 26: Strategies for 2H2018

    Strategies for 2H2018 Operational Strategy Land Acquisition Maintain a balance between profit, Focus on first- and second-tier scale and risk to ensure quality cities and their surrounding growth and maximized corporate satellite cities that offer tremendous growth potential. value, as well as prote

  27. Slide 27: High Quality & Abundant Saleable Resource

    High Quality & Abundant Saleable Resource  Confident of achieving full year target of RMB60billion in contracted sales for 2018 2H2018 Accumulated Saleable Resource Amounts to 2018 Total Saleable Resource Amounts to 92bn 70.5bn and breakdown by City Qingdao, 1.97% Chongqing, 3.35% Foshan, 0.33% She

  28. Slide 28: Key Projects in 2H2018

    Key Projects in 2H2018 Hangzhou Yuzhou Riverside Sapphire Shanghai Yuzhou Noble Mansion (杭州 禹洲·濱之江) (上海 禹洲·雍賢府) • Located in West Lake District, • The center of the south area of Hangzhou, Zhejiang, and being Qiantan, gifted with the largest wild connected by Zhijiang Bridge and Zizhi wetlands/Centr

  29. Slide 29: Key Projects in 2H2018

    Key Projects in 2H2018 Suzhou Yuzhou Honor Hill Wuhan Taizi Lake Project (蘇州 禹洲·嘉譽山) (武漢 太子湖項目) • Located in High-tech zoon, Suzhou, • Located in Wuhan’s economic and next to central ring express, north of technological development zone, on Dayang hill ecopark, east of Suzhou the Jiangcheng and Taiz

  30. Slide 30: Appendix

    Yuzhou ·Riviere Mansion Appendix

  31. Slide 31: Xiamen Real Estate Market Overview

    Xiamen Real Estate Market Overview Residential Land Supply and Property Transactions – Xiamen '000 sq.m RMB/sq.m. 5,000 4,777 4,490 35,668 40,000 34,375 4,000 3,516 28,769 3,144 26,518 25,658 30,000 2,622 2,731 21,485 3,000 2,246 19,848 20,535 15,701 2,024 1,813 20,000 2,000 13,905 13,482 1,735 11,5

  32. Slide 32: Fuzhou Real Estate Market Overview

    Fuzhou Real Estate Market Overview Residential Land Supply and Property Transactions – Fuzhou '000 sq.m RMB/sq.m. 5,000 4,948 40,000 3,850 4,068 4,000 30,000 3,135 3,023 2,793 23,381 2,524 2,764 21,636 3,000 2,410 2,526 2,652 2,587 1,875 16,372 2,176 16,879 20,000 2,000 14,231 14,188 14,910 1,501 12

  33. Slide 33: Shanghai Real Estate Market Overview

    Shanghai Real Estate Market Overview Residential Land Supply and Property Transactions – Shanghai '000 sq.m RMB/sq.m. 20,000 60,000 15,526 47,865 48,878 15,058 14,973 50,000 15,000 12,800 13,917 11,450 38,283 40,000 10,976 10,319 9,342 10,494 9,713 32,001 10,000 24,253 7,889 30,000 22,413 7,278 6,39

  34. Slide 34: Hefei Real Estate Market Overview

    Hefei Real Estate Market Overview Residential Land Supply and Property Transactions – Hefei '000 sq.m RMB/sq.m. 25,000 14,305 15,000 21,324 22,377 12,666 20,000 19,698 18,040 12,000 15,895 11,178 13,489 7,672 8,500 15,000 12,319 8,839 9,000 6,854 6,472 6,722 10,883 9,240 9,147 9,211 5,748 10,000 8,1

  35. Slide 35: Nanjing Real Estate Market Overview

    Nanjing Real Estate Market Overview Residential Land Supply and Property Transactions – Nanjing '000 sq.m RMB/sq.m. 20,000 21,601 22,856 25,000 15,860 15,000 13,108 20,000 12,232 12,819 13,804 12,787 18,913 11,086 9,871 15,000 10,000 10,991 9,442 12,252 10,001 15,140 8,869 7,708 8,615 14,630 8,566 1

  36. Slide 36: Hangzhou Real Estate Market Overview

    Hangzhou Real Estate Market Overview Residential Land Supply and Property Transactions – Hangzhou '000 sq.m RMB/sq.m. 20,000 18,673 30,000 26,102 14,898 22,987 15,109 25,000 15,000 12,867 17,313 16,663 15,484 11,871 16,086 20,000 16,619 14,581 15,878 10,275 10,429 17,223 10,000 8,197 8,663 8,903 7,9

  37. Slide 37: Suzhou Real Estate Market Overview

    Suzhou Real Estate Market Overview Residential Land Supply and Property Transactions – Suzhou '000 sq.m RMB/sq.m. 15,000 25,000 11,763 12,333 12,677 18,621 11,849 10,570 19,460 12,000 17,355 10,608 20,000 9,523 9,112 8,716 9,000 7,197 12,329 11,226 11,888 8,089 12,116 7,701 13,163 15,000 6,410 10,58

  38. Slide 38: Wuhan Real Estate Market Overview

    Wuhan Real Estate Market Overview Residential Land Supply and Property Transactions – Wuhan '000 sq.m RMB/sq.m. 50,000 45,231 10,031 12,000 9,432 9,631 40,000 8,810 34,506 7,430 7,152 7,796 9,000 7,093 30,000 26,290 28,798 28,463 23,212 23,237 22,762 21,468 18,263 6,000 20,000 14,807 16,255 4,051 3,

  39. Slide 39: Tianjin Real Estate Market Overview

    Tianjin Real Estate Market Overview Residential Land Supply and Property Transactions – Tianjin '000 sq.m RMB/sq.m. 30,000 20,000 25,895 15,670 25,000 23,321 15,921 15,000 20,000 17,040 18,205 10,553 11,546 17,588 13,458 9,347 10,061 10,315 13,786 15,000 10,218 11,819 13,218 13,561 12,490 10,000 8,8

  40. Slide 40: Huizhou Real Estate Market Overview

    Huizhou Real Estate Market Overview Residential Land Supply and Property Transactions – Huizhou '000 sq.m RMB/sq.m. 18,000 11,183 12,000 15,004 10,599 15,000 7,573 9,000 12,000 6,712 6,808 6,350 8,561 9,093 9,000 7,994 6,847 7,328 6,000 6,401 6,409 6,000 4,695 2,780 2,495 3,000 3,000 1,693 2,050 653

  41. Slide 41: Shenyang Real Estate Market Overview

    Shenyang Real Estate Market Overview Residential Land Supply and Property Transactions – Shenyang '000 sq.m RMB/sq.m. 50,000 7,909 8,833 9,000 44,567 7,022 40,377 7,112 7,189 7,003 6,450 40,000 6,383 32,758 6,000 30,000 4,971 4,680 20,000 13,739 14,233 14,879 15,879 11,068 11,82511,128 13,712 3,000

  42. Slide 42: 1H2018 Key Financials

    1H2018 Key Financials 1H2018 1H2017 Changes Revenue (RMB’000) 9,242,624 7,246,747 +27.54% Gross profit (RMB’000) 2,914,092 2,387,975 +22.03% Gross profit margin (%) 31.53% 32.95% -1.42pp Core profit (RMB’000) 1,158,064 919,831 +25.90% Core profit margin (%) 12.53% 12.69% -0.16pp EPS (RMB fen/share)

  43. Slide 43: 1H2018 Key Financials (Cont'd)

    1H2018 Key Financials (Cont’d) As at 30 Jun 2018 As at 31 Dec 2017 Changes (RMB’000) Total assets 103,728,142 79,904,817 +29.81% Total liabilities 85,525,838 62,461,581 +36.93% Total equity 18,202,304 17,443,236 +4.35% Total cash 25,087,294 17,498,208 +43.37% Total debt 36,547,535 27,567,486 +32.57%

  44. Slide 44: 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 development of the Company. No representation or warran

  45. Slide 45: Q & A Thank you!

    Q & A Thank you! 官方微信公眾號

Yuzhou Properties Company — H1 2018 Earnings Presentation on 6ix