Kaisa Group Holdings Ltd. · HKEX:1638
Kaisa — H1 2021 Earnings Presentation
37 slides from Kaisa's earnings presentation, August 2021
Slide 1: Interim Results Presentation 2021
Interim Results Presentation 2021 August 2021
Slide 2: Disclaimer
Disclaimer This presentation may contain forward-looking statements. Any such forward-looking statements are based on a number of assumptions about the operations of the Kaisa Group Holdings Ltd. (the “Company”) and factors beyond the Company's control and are subject to significant risks and uncert
Slide 3: Table of Contents
Table of Contents 01. 1H2021 Results Highlights 02. Operational Review in 1H2021 03. 2H2021 Outlook 04. Financial Highlights & Liability Management in 1H2021 05. Appendix
Slide 4: 01. 1H2021 Results Highlights
01. 1H2021 Results Highlights
Slide 5: 1H2021 Results Highlights
1H2021 Results Highlights Contracted URP Landbank URP Pipeline² Sales Conversion RMB 63.9 bn 31.1 mn sqm 1.1 mn sqm Over 53.7 mn sqm Site Area Hit new record high Improved URP conversion lead time Completed nearly 50% Greater Bay Area: 76%2 full year target 213 URPs T1 cities: 54%2 RMB73 bn saleable
Slide 6: 02. Operational Review in 1H2021
02. Operational Review in 1H2021
Slide 7: Contracted Sales Hit Record High at RMB64 bn
Contracted Sales Hit Record High at RMB64 bn Contracted Sales Up 77% YoY Contracted GFA Up 80% to 51% Sales from the Greater Bay to RMB64 bn 3.8 mn sqm Area (RMB mn) (000’ sqm) % R: + 24 : +2 7% 6,165 CA G 106,896 % CA G R Pan-Bohai, 10% 7 % 88,120 +7 4,642 + 80 Western China, 70,059 3,837 3,806 12%
Slide 8: Strong Recognized Revenue Growth at 34%
Strong Recognized Revenue Growth at 34% Recognized Revenue Recognized GFA Recognized ASP (RMB mn) (‘000 sqm) (RMB/sqm) % % +1 6 +1 : 2,828 19,200 + 19% GR R: 51,194 CA 2,548 18,958 CA G 43,849 2,097 % : +3 36,081 4% 2% GR 18,103 +3 +3 CA 27,666 1,441 20,639 1,089 17,206 17,209 FY2018 FY2019 FY2020 1
Slide 9: High Quality Urban Renewal Pipeline in the Greater Bay Area
High Quality Urban Renewal Pipeline¹ in the Greater Bay Area Site Area² Greater Bay Area Professional Team New URPs No. of URPs Pipeline 15 projects 213 projects Over 53.7mn sqm Over 99% 1090 persons Geographic Distribution of URPs in the Greater Bay Area³ 深圳 Shenzhen 深圳 Guangzhou 129 projects 120个项
Slide 10: Land Replenishment Driven By URP Conversion
Land Replenishment Driven By URP Conversion Pan-Bohai Bay Rim, 7% Western u Attributable GFA: 2.46 mn sqm China, 18% 1H2021 u Attributable Ratio: 79% by GFA By Greater T2&3 T1 Land Acquisition u Saleable resources: RMB 103.1 bn Cities, Attributable GFA Cities, By Attributable Bay Area, Total 15 u At
Slide 11: High Quality Landbank in Tier 1 & 2 Cities Drives Growth
High Quality Landbank in Tier 1 & 2 Cities Drives Growth GFA Attributable Ratio Saleable Resources Completed & sold yet recognized, 1% 31.14 67% 1 RMB 734,661mn Completed Under construction, mn sqm 60% yet sold, 4% By construction status Greater Bay Area2 % T1 Cities3% Urban Renewal % Held for futur
Slide 12: Digital Technology Improves Operational Efficiency
Digital Technology Improves Operational Efficiency Improved Digital Technology & Operational Management Drives Efficiency Sales and Marketing Expense Ratio Administrative and Management Expense Ratio 2.5% Avg.~ 4.8% Avg.~ -83 bps yoy -87 bps yoy Expand Digital Sales & Marketing Online Platform To Dr
Slide 13: Strong Commitment in Corporate Social Responsibilities
Strong Commitment in Corporate Social Responsibilities Continuous Actions Targeting Poverty Alleviation, Public Welfare and Education u Donated RMB10 mn through u Donated RMB249 mn to various Guangdong Charity Federation in charities in areas including education, July to aid the flood victims and fo
Slide 14: Market Recognition and Awards
Market Recognition and Awards Award & Recognition Issued by 19th in 2021 TOP 20 Listed China Real Estate Enterprises 2021 TOP 10 Listed China Real Estate Enterprises – Investment EH Consulting Value 24th in 2021 TOP 100 China Real Estate Developers 1st in 2021 China Outstanding Urban Renewal Real Es
Slide 15: 03. 2H2021 Outlook
™ Kaisa : 3 FERALAS 1638 KAISA — g3. 2H2021 Outlook GROUP , \ A,
Slide 16: Focus On Operational Improvements On Four Key Aspects
Focus On Operational Improvements On Four Key Aspects Contracted Sales Urban Renewal 1 2 ü Speed up URP conversion ü Speed up project turnover ü Increase profitability through ü Boost contracted sales and higher URPs contribution revenue ü Capture opportunities raised from favorable urban renewal po
Slide 17: On Track to Achieve 2021 Full Year Target of RMB130 bn
On Track to Achieve 2021 Full Year Target of RMB130 bn 2021 Sales Target: 2H2021 To Be 1H2021 Completed, 49% RMB130 bn Completed, 51% Expected Saleable Expected Saleable GFA No. of projects Resources in 2H2021 in 2H2021 RMB 127 bn 6.9 mn sqm 116 projects Saleable Resources Composition T3 cities, 9%
Slide 18: Expect to Convert URPs of Over 5 mn sqm GFA in 1-2 Years
Expect to Convert URPs of Over 5 mn sqm GFA in 1-2 Years ASP of Expected Saleable Saleable Area* No. Project Location Type Nearby Projects Resources (’000 sqm) (RMB/sqm) (RMB mn) 1 Shenzhen Shangxue Project Longgang, Shenzhen Industrial 180 54,000 9,720 2 Shenzhen Jianda Factory Project Longgang, Sh
Slide 19: Emerging New Businesses Diversify Revenue Channels
Emerging New Businesses Diversify Revenue Channels Opening of Shenzhen Hualang School in September ü Kaisa’s first K-12 school in China to be launched in September 2021 ü Shenzhen Hualang School is a K-12 school with a total area of 54,000 sqm and GFA of 96,000 sqm ü The school adopts a small-class
Slide 20: 04. Financial Highlights & Liability Management in 1H2021
04. Financial Highlights & Liability Management in 1H2021
Slide 21: Achieved Exceptional Core Net Profit Growth
Achieved Exceptional Core Net Profit Growth Core Net Profit Up 29% YoY to RMB3.9 bn (RMB mn) % + 29 3,932 13% 3,051 2,693 + 1H2019 1H2020 1H2021 Driven by strong revenue and stable margin Net Profit Margin Revenue Up 35% YoY to RMB30.1 bn Remained Stable at 10.2% (RMB mn) % + 35 13.8% 30,065 + 11% 1
Slide 22: All-time High Cash Level Enhances Liquidity
All-time High Cash Level Enhances Liquidity Cash and Bank Deposits: High Quick Ratio1 RMB48.7 bn (RMB mn) + 3% 2.0x 1.9x 47,113 48,736 36,978 1.3x 1.1x 1.0x 22,924 FY2018 FY2019 FY2020 1H2021 FY2017 FY2018 FY2019 FY2020 1H2021 1. Quick ratio is calculated by dividing cash, restricted cash and short-
Slide 23: 1H2021 Financial Highlights
1H2021 Financial Highlights P&L and Profitability (RMB mn) Balance Sheet and Credit Metrics (RMB mn) 1H2021 1H2020 Change% 1H2021 FY2020 Change% Revenue 30,065 22,297 +34.8% Total assets 319,112 309,899 +3.0% Recognized revenue from 27,666 20,639 +34.0% Cash and bank deposits 48,736 47,113 +3.4% pro
Slide 24: Improved Credit Metrics
Improved Credit Metrics Three Red Lines All Passed >1X <100% 1.53X <70% 93.7% 69.9% i… t… … 1 2 3 et ilit h N as ab C Li Improved Liabilities to assets ratio Improved Net Gearing Ratio1 excluding receipts in advance 300.0% 83.7% 236.2% 80.9% 75.9% 144.0% 96.1% 70.1% 93.7% 69.9% FY2017 FY2018 F
Slide 25: Stable Debt Level and Extended Maturity Profile
Stable Debt Level and Extended Maturity Profile Total Borrowings Breakdown – Stable Total Borrowings at RMB123.8 bn Maturity (RMB bn) YTM Funding + 2% < 1 Yr 1-2 Yrs 2-5 Yrs > 5 Yrs Total 123.8 (RMB bn) Cost 121.5 Onshore 9.2 19.2 16.1 2.3 46.8 7.3% 117.2 Bank 2.9 14.2 11.3 2.3 30.7 borrowings Non-b
Slide 26: Diversified Onshore & Offshore Funding Channels
Diversified Onshore & Offshore Funding Channels Financing Onshore Financing Highlight Channels u First time issued RMB300 mn onshore corporate bond for long-term rental housing in June (from the RMB3 bn quota obtained in 2020) Corporate Bond u Issued RMB1.5 bn ABS & ABN Quota Obtained in 2020 Issue
Slide 27: Proactive Liability Management Improved Offshore Debt Structure
Proactive Liability Management Improved Offshore Debt Structure Completed Exchange Offer and Unmodified Dutch Auction Tender Offer in May u Par-to-par exchanged US$500 mn of the 9.375% 2024 bonds to a new notes due 2025 u Concurrent tendered US$304 mn at par of the 9.375% 2024 bonds via Unmodified D
Slide 28: Market Recognition Drives Active Equity and Bonds Trading
Market Recognition Drives Active Equity and Bonds Trading Included in Multiple Indexes Boosts Equity and Bonds Trading Volume Constituent of: Equity: Bond: Hang Seng Stock Connect Greater Bay Area Markit iBoxx USD Asia ex-Japan China High Index Series Yield Index Hang Seng Composite LargeCap & MidCa
Slide 29: 05. Appendix
™ Kalsa . 1 JER FERALAS 1638 KAISA 09. Appendix
Slide 30: 1H2021 Earnings
1H2021 Earnings (RMB bn) 1H2021 1H2020 %Change Revenue 30.1 22.3 +35.0% -Sales of properties 27.7 20.6 +34.0% -Rental income 0.2 0.2 - -Property management services 1.0 0.6 +66.7% -Hotel and catering operations 0.1 0.07 +42.9% -Cinema, department store and cultural center operations 0.1 0.04 150% -W
Slide 31: Balance Sheet
Balance Sheet (RMB bn) As of 30 Jun 2021 As of 31 Dec 2020 % Change Total assets 319.1 309.9 +3.0% Total liabilities 237.7 231.2 +2.8% Net current asset 110.4 102.5 +8.0% Total equity 81.4 78.7 +3.5% Cash and bank deposits 48.7 47.1 +3.4% Cash ratio1 1.9x 2.0x -0.1x Liabilities to assets ratio after
Slide 32: Land Acquisition in 1H2021
Land Acquisition in 1H2021 Attributable Attributable Acquisition Site Area Total GFA Way of No. Location Shareholding % GFA Consideration Land Use Time （sqm） (sqm) Acquisition （sqm） （RMB mn） Shantou, 1 Jan 2021 100% 116,204 493,296 493,296 2,271 Residential M&A Guangdong Huizhou, Residential & 2 Jan
Slide 33: URPs Converted in 1H2021
URPs Converted in 1H2021 Shenzhen Hengling Old Village Guangzhou Shixi Project Zhanjiang Kaisa Blissful Bay • Southeast of the • Shixi Community, intersection of Haizhu District, Minfeng Road and Guangzhou • Tiaoshun Road, Minrong Road in • Shixi Station and Location Chikan District, Minzhi Communit
Slide 34: Key Projects Expected to Be Launched in 2H2021
Key Projects Expected to Be Launched in 2H2021 Shenzhen Kaisa Fengming Watefront Shenzhen Kaisa Lakeside Residence • Intersection of Jiangangshan Avenue and • Northwest corner of the intersection of South Luyin Wolong 4th Road, Baoan District, Shenzhen Location Location Road and Dongzong Road, Shiji
Slide 35: Proven Track Record of URPs Conversion
Proven Track Record of URPs Conversion u Successfully converted 43 URPs with 16 mn sqm GFA since established u URPs mainly located in Tier 1 cities including Shenzhen, Guangzhou, Shanghai and Hong Kong u Successfully converted 26 URPs with GFA of over 5 mn sqm since 2017 GFA No. of Year Projects Typ
Slide 36: Shareholding Structure (As of 30 June 2021)
Shareholding Structure (As of 30 June 2021) · Founder and chairman · Over 20 years of industry experience · Responsible for overall strategy, investment planning and human resources strategy Funde Sino Life Kwok Family Other public investors Insurance Co., Ltd. 21.92% 39.01% 39.07% Hotel and caterin
Slide 37: THANKS!
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