Emerging Towns & Cities Singapore Ltd · SGX:1C0
Emerging Towns & Cities Singapore — Cedar Strategic Holdings — Q3 2016 Earnings Presentation
45 slides from Emerging Towns & Cities Singapore's earnings presentation, 2016
Slide 1: Cedar Strategic Holdings Ltd Results Briefing 3Q2016
CEDAR STRATEGIC HOLDINGS LTD Results Briefing 3Q2016 1
Slide 2: Disclaimer
Disclaimer This presentation may contain forward looking statements that involve risks and uncertainties. Actual future performance, outcomes and results may differ materially from those expressed in forward looking statements as a result of a number of risks, uncertainties and assumptions. Represen
Slide 3: Agenda
Agenda 3Q2016 Update on Update on Strategy and Financial Daya Bay Golden City Outlook Highlights Project Project 3
Slide 4: 3Q2016 Overview
3Q2016 Overview • Top line growth of 11.8% qoq to RMB47.7 million for 3Q2016 boosted by revenue recognition of 61 units sold for Daya Bay project; revenue of remaining 176 sold units to be recognised in subsequent two quarters • Completed rights issue bolsters balance sheet’s strength, allowing the
Slide 5: Income Statement
Income Statement RMB (‘000) 3Q2016 2Q2016 Change (%) 9M2016 9M2015 Change (%) Revenue 47,704 42,656 11.8 114,846 - n.m. Gross profit 19,296 13,632 41.5 37,657 - n.m. Other income 51 36 41.7 102 175 (41.7) Profit/(Loss) for 2,484 347 615.9 (431) (4,405) (90.2) the period attributable to owners Earnin
Slide 6: Financial Highlights
Financial Highlights REVENUE, GROSS PROFIT, AND NET PROFIT BREAKDOWN OF REVENUE CONTRIBUTION (IN RMB ATTRIBUTABLE TO OWNERS (IN RMB MILLION) MILLION) 60 Recurring income from 50 47.7 rental of 42.7 holiday 40 apartments, 5% 30 26.3 24.5 19.3 20 13.6 47.6 10 7.5 4.7 2.5 0.9 0.3 0 FY2015 1Q2016 2Q2916
Slide 7: Financial Highlights (cont'd)
Financial Highlights (cont’d) GROSS PROFIT BREAKDOWN (IN RMB MILLION) GROSS PROFIT MARGIN (%) Stability of margins: Recurring RMB2,000/holiday income from apartment each month rental of holiday apartments, 82% 82% 10% 19.2 +9 ppt 38% 29% Sale of 2Q2016 3Q2016 property units, 90% Recurring income fro
Slide 8: Balance Sheet
Balance Sheet As at 30 September 2016 (RMB ‘000) As at 31 December 2015 (RMB ‘000) Development properties 93,819 169,085 Cash and cash equivalents (Group) 129,981 18,356 • Cash and cash equivalents (Company) 100,168 544 Bank borrowings - - Financial liabilities1 105,899 101,980 Non-controlling inter
Slide 9: Daya Bay Project Updates
DAYA BAY Project Updates 9
Slide 10: Project Overview
Project Overview • Location: Daya Bay District, Huizhou, Guangdong Province, PRC • Acquisition cost: Aggregate consideration of RMB 48 million for 60% stake Distressed property, resulting in a negative goodwill of RMB 21.2 million for FY2015 Payment of consideration completed in October 2016 •
Slide 11: Project Overview (cont'd)
Project Overview (cont’d) • Targeted at domestic tourism market; particularly a draw during summer • Biggest seafood market and food paradise in Shenzhen • Government support: creation of a second Sanya supported by tourism resources and relevant facilities • Ideally situated in Pearl River Delta •
Slide 12: Average Selling Prices
Average Selling Prices • Price range per square meter (psm) of properties within a 500m radius of Daya Bay Project: RMB11,000 – 16,000 psm Daya Bay Project: RMB15,000 psm • Price range per square meter (psm) of properties within the region (>500m): RMB8,000 – 15,000 psm 12
Slide 13: Sale of Development Properties, as at Sep 2016
Sale of Development Properties, as at 30 Sep 2016 Sales value (RMB’000) No. of units Total floor area (sqm) Sold (SPA signed & stated at 391,546 661 29,192 gross) Unsold (incl. deposit received 10,601 56 2,028 but contract not signed) Total 402,147 717 31,220 Notified and Handed over 241,579 402 17,
Slide 14: Sale of Development Properties for 3Q2016
Sale of Development Properties for 3Q2016 3Q2016 2Q2016 1Q2016 Sales No. of Total floor Price/Sqm Sales No. of Total floor Price/Sqm Sales No. of Total floor Price/Sqm value units area (sqm) (RMB’000) value units area (RMB’000 value units area (sqm) (RMB’000) (RMB’000 (RMB’000) (sqm) ) (RMB’000) ) S
Slide 15: GP Analysis for 3Q2016
GP Analysis for 3Q2016 3Q2016 2Q2016 1Q2016 Property Property Total Property Property Total Property Property Total Development Investment (RMB’000) Development Investment (RMB’000) Development Investment (RMB’000) (RMB’000) (RMB’000) (RMB’000) (RMB’000) (RMB’000) (RMB’000) Revenue 45,222 2,394 47,6
Slide 16: Rental Property Updates
Rental Property Updates • Properties for lease Recurring revenue from 399 units rented out to e-Stay for five years at RMB2,000/unit per month from December 2015 e-Stay: Third party hotel operator with over 1,000 properties under management in China Under the rental contract, price per unit is
Slide 17: Golden City Project Updates
GOLDEN CITY Project Updates 17
Slide 18: Project & Development Overview
Project & Development Overview • Undertaken as a brownfield project • Mixed-use development including residential and commercial • Iconic development that is centrally located in affluent, less congested area in Yankin, Yangon • Currently the tallest building in Myanmar; clear views of key landmarks
Slide 19: Acquisition Details
Acquisition Details 17th Oct 2016: Entered into SPA pursuant to which Cedar Strategic will acquire all of the issued and paid-up shares of DAS for approximately US$24.9 million (funded by 5,152,700,000 ordinary shares at issue price of 0.4 cents each, and US$10 million cash, to be funded from intern
Slide 20: Sales and Development Timeline
Sales and Development Timeline Phase IV: •Other uses (including commercial) Phase III •To be completed in 2019 •Residential blocks (8 – 9) •To be completed in 2019 Phase II •Residential blocks (5 – 7) •Launched sales in 1H2015 Phase I – 20% sold •Under construction; to be •Residential blocks (1 – 4)
Slide 21: Business Model
Business Model BUSINESS FOCUS CORPORATE STRATEGY • Investment in quality assets with a focus on emerging • Dual-income approach: committed to finding a cities balance between long term recurrent rental income Development properties and short term development profit Investment properties • Align
Slide 22: Emerging Cities Outlook
Emerging Cities Outlook ON THE WHOLE… • Execution of strategic economic reform • Steady economic growth and globalisation Measures to attract more foreign direct Growing affluence and middle class investment (FDI) Better job opportunities and public infrastructure Easing of foreign ownership
Slide 23: Thank You
THANK YOU Investor Relations: Chong Yap TOK / Cassandra CHAN csh@financialpr.com.sg Tel: (+65) 6438 2990 23
Slide 24: Appendix
APPENDIX 24
Slide 25: Corporate Profile
Corporate Profile • Incorporated in Singapore on 17 October 1980 Listed on the Catalist board of SGX • Formerly known as China Titanium Formerly a titanium dioxide distributor in China Change of name to Cedar Strategic Holdings Ltd in December 2012 following restructuring of core business to real
Slide 26: Shareholding Structure
Shareholding Structure As at 30 September 2016 As at 14 April 2015 Name of Shareholder % Name of Shareholder % 1 Luo Shandong 27.70 1 Sinowealth Capital Limited 6.28 2 Wong Pak Him Patrick 13.03 2 Jadeite Capital 6.28 3 Teo Cheng Kwee 3.22 3 Christopher Chong Meng Tak 3.49 4 Christopher Chong Meng T
Slide 27: Board of Directors
Board of Directors Mr. Christopher Chong Meng Tak Non-executive Chairman, Chairman of the Nominating & Corporate Governance Committee and Remuneration Committee and a member of the Audit Committee Appointed to the Board on 24 June 2015 Significant experience in capital markets, securities law, corpo
Slide 28: Board of Directors
Board of Directors Mr. Patrick Wong Pak Him Executive Director Appointed to the Board on 21 July 2015 and re-designated as ED on 19 September 2016 More than 15 years of experience in the accounting field and corporate scene: Helped companies to IPO in both Hong Kong and Canada, driven several M&A, c
Slide 29: Management Team
Management Team Mr. Joseph Lim Chief Financial Officer Appointed on 1 October 2015 Brings more than 20 years of experience in accounting, auditing, treasury, risk management and investments with extensive background in public companies listed on SGX-ST and ASX Mr. Yang Cha Chief Development Officer
Slide 30: Requirements to Resume Trading
Requirements to Resume Trading The New Board fulfilled the following requirements which contributed to the resumption of trading: Sourced for funding for working capital Completed the Special Audit Implemented internal controls to address financial, operational and compliance risks In the pr
Slide 31: Requirements of Special Audit
Requirements of Special Audit Expected Follow-up Actions Completed Completion Singapore Actions, including recovery, against ex-directors and CFO Recovery of S$1.5 million Follow up on proof of S$3.6 million placement proceeds Follow up on S$3.6 million bond Follow up on 1% M&A commission pa
Slide 32: Follow-up of Special Audit
Follow-up of Special Audit Expected Follow-up Actions Completed Completion People's Republic of China Discovery of transfer Settlement of TCI issues 2017 Recovery of RMB180 million and related interest 2017 Recovery of PRC subsidiaries and related investments Settlement of Trechance related issu
Slide 33: Follow-up of Special Audit
Follow-up of Special Audit Expected Follow-up Actions Completed Completion Company-related Enterprise Risk Assessment Internal Audit Code of Ethics Whistleblowing policy Share trading policy Authority matrix 33
Slide 34: Special Audit
Special Audit Scope / Coverage of Special Auditors’ Report: 1. Divestment of the titanium dioxide business 2. Acquisition and proposed divestment of Trechance Group 3. Acquisition and divestment of Yess Le Green and West Themes 4. Acquisition of Futura Asset Holdings 5. Severance payments 6. Disburs
Slide 35: Conclusion of Special Audit
Conclusion of Special Audit 1. Weaknesses and/or lapses in corporate governance, internal controls and possible non-compliance with the Catalist Rules 2. Absence of documentation or recordings of corporate actions 3. Current Board advised to seek legal advice and follow up on the various matters men
Slide 36: Overview of events
Overview of events • 14 April 2015 Conversion of trading halt to a trading suspension Inability of management to release FY2014 results on time Issue of profit guidance and proposed disposal of Trechance Holdings Ltd Unusual trading volume Announced intentions to engage a special auditor
Slide 37: Overview of events
Overview of events • 3 July 2015 Appointed Baker Tilly Consultancy as “Special Auditor” 1st letter of engagement to shareholders Signed Investment and Placement Agreements (completed issue of new ordinary shares on 31 March 2016) Tight current cash flow for day-to-day operations For workin
Slide 38: Overview of events
Overview of events • 25 September 2015 3rd letter of engagement to shareholders • 1 October 2015 Appointment of CFO • 2 October 2015 Signing of SPA for acquisition of Daya Bay project • 12 October 2015 Update on loss of Huamao and Shunhe Listed in the Abnormal Business Catalog as a result
Slide 39: Overview of events
Overview of events • 4 November 2015 Completion of acquisition of Daya Bay Project • 19 November 2015 Update on loss of Huacheng and Shengxiang Loss of effective control of businesses Listed in the Abnormal Business Catalog as a result of failing to make public its FY2013 and FY2014 annual r
Slide 40: Overview of events
Overview of events • 30 November 2015 Notice of AGM and AR2014 Notice of EGM and Circular • 15 December 2015 AGM EGM Release of 1Q2015, 2Q2015 and 3Q2015 results announcements • 18 January 2016 Update on disposal of Yess Le Green and West Themes Pte Ltd Recoverability of S$1.5 million
Slide 41: Overview of events
Overview of events • 6 April 2016 Update on disposal of Yess Le Green and West Themes Pte Ltd Recoverability of S$1.5 million receivable • 7 April 2016 Completion of the proposed placement of up to 500,000,000 new ordinary shares • 13 April 2016 Release of the FY2015 Annual Report • 28 April
Slide 42: Overview of events
Overview of events • 31 May 2016 Update on the various issues set out in the Special Audit Report • 1 June 2016 Director's and Executive Officer's acceptance of share options granted on 17 May 2016 under the CSH Employee Share Option Scheme • 2 June 2016 Update to the acquisition of Huizhou Da
Slide 43: Overview of events
Overview of events • 12 August 2016 Release of 2Q2016 results announcement • 31 August 2016 Appointment of Mr. Zhou Lin as the Chief Operating Officer • 1 September 2016 Update to the acquisition of Huizhou Daya Bay Mei Tai Cheng Property Development Co., Limited • 6 September 2016 Update on
Slide 44: Overview of events
Overview of events • 19 September 2016 Reconstitution of the Board of Directors and Board Committees • 30 September 2016 Proposed corporate actions by the Company: Proposed Share Consolidation Proposed Capital Reduction Proposed adoption of the CSH Employee Share Option Scheme 2016 Propo
Slide 45: Overview of events
Overview of events • 17 October 2016 Proposed Acquisition of DAS Pte. Ltd. • 17 October 2016 Loan from controlling shareholder - Mr Luo Shandong (US$5,000,000) • 17 October 2016 Lifting of Trading Halt • 4 November 2016 Update to the disposal of Yess Le Green Pte. Ltd. and West Themes Pte. L
Cedar Strategic Holdings — Q3 2016 Earnings Presentation on 6ix