Sino Land Co. Ltd. · HKEX:83
Sino Land — FY2023/24 Earnings Presentation
41 slides from Sino Land's earnings presentation, Aug 27, 2024
Slide 1: Annual Results FY 2023/24
ANNUAL RESULTS FY 2023/24 Analysts’ Briefing 27 August 2024
Slide 2: Disclaimer
Disclaimer This document and the information contained therein are intended to be distributed only to named or designated recipients, and it is not or should not be regarded as any advertisement or propaganda materials aimed to the non-specific public. It should not be reproduced quoted or transmitt
Slide 3: Annual Results for the year ended 30 June 2024
Annual Results for the year ended 30 June 2024 Page Result Snapshots 1 Financial Results Highlights 2-4 Business Review Land Bank 5-9 Property Sales 10-12 Property Rental 13-20 Hotels 21 Prospects 22 Q&As Appendix (Sustainability and Asset Enhancement Works)
Slide 4: FY 2023/2024 Result Snapshots
FY 2023/2024 Result Snapshots Strong balance sheet with net cash position Profit Dividend Balance Sheet Underlying Profit Interim Final Net Cash HK$5,171 m HK$0.15 HK$0.43 HK$45,585 m ↓ 15.0% yoy Total ↑ HK$3,617 m yoy Net Profit HK$0.58 HK$0.58 last year Shareholders’ funds HK$4,402 m HK$165,790 m
Slide 5: Financial Results Highlights
Financial Results Highlights For the financial year ended 30 June 2024 FY 2023/24 FY 2022/23 % Change Revenue declined mainly due to the Revenue HK$8,765m HK$11,881m - 26.2% reduction in property sales of HK$3.4b, partially offset by the improvement in revenue from property rental, hotel operations,
Slide 6: Earnings drivers – contribution from Segment results
Earnings drivers – contribution from Segment results For the year ended 30 June 2024 FY 2023/24* FY 2022/23* % Change Profit contribution from Property Property Sales HK$802m HK$3,045m - 73.7% Sales declined, mainly due to the reduction in property sales The decline in Property Rental was mainly due
Slide 7: Strong financial position
Strong financial position Solid balance sheet strength Net Cash of HK$45.5b 30 June 2024 30 June 2023 Change Net cash increased by HK$3.6b yoy Cash and bank deposits HK$46,417m HK$43,932m + HK$2,485m Despite the payments made for land and property acquisitions as well as the repayment of borrowings,
Slide 8: Land bank
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Slide 9: 19.5 million sq. ft. attributable land bank as of 30 June 2024
19.5 million sq. ft. attributable land bank as of 30 June 2024 Balanced and diversified portfolio sufficient to support the Group’s requirement over the next few years Mainland Overseas (in million square feet) Hong Kong Total China Singapore Sydney Properties under development 2.7 2.0 0.4 - 5.1 Inv
Slide 10: Land acquisition during FY 2023/2024
Land acquisition during FY 2023/2024 Replenishment of land bank to optimise earnings potential Total gross floor Attributable gross Project Date Usage Stake area (sq. ft.) floor area (sq. ft.) Residential/ NKIL 6590, Kai Tak 13/09/2023 50% 992,279 496,139 Commercial Shing Tak Street / Ma Tau Chung R
Slide 11: Properties under development – Hong Kong
Properties under development – Hong Kong 12 projects expected to be completed over next few years Expected Attributable Project Name / Site Location Stake completion date gross floor area (sq. ft.) ONE CENTRAL PLACE Central 100%* 84,261 FY 2024 / 2025 Lot 765 in D.D. No. 332 Lantau 100% 11,582 Villa
Slide 12: Properties under development – Mainland China
Properties under development – Mainland China Key projects in Mainland China Expected Attributable Project Name / Site Location Stake completion date gross floor area (sq. ft.) FY2024 / 2025 T102 – 0261, Qianhai Shenzhen 30% 258,336 FY2025 / 2026 Dynasty Park Phase IV Zhangzhou 100% 1,028,446 Chengd
Slide 13: Properties under development – Singapore
Properties under development – Singapore Diversification of development portfolio Expected Attributable Project Name/Site Location Stake completion date gross floor area (sq. ft.) FY 2027 / 2028 The Reserve Residences Singapore 20% 200,884 FY 2028 / 2029 Golden Mile Complex Singapore 25% 202,872 Tot
Slide 14: Property sales
QsINo LAND COMPANY LIMITED Property sales
Slide 15: Property sales recognised in the financial year
Property sales recognised in the financial year Lower development margin amidst market challenges FY 2023/24 FY 2022/23 % Change Gross profit margin Property sales* HK$8,893m HK$11,937m - 25.5% 9.1% (FY 2022/23: 25.0%) Segment results* HK$807m HK$2,986m - 73.0% * Including attributable share of asso
Slide 16: Total attributable contracted sales of ~HK$9.9 billion not yet recognised
Total attributable contracted sales of ~HK$9.9 billion not yet recognised Including ~HK$8.0 billion attributable contracted sales expected to be recognised in FY 2024/25 Projects launched in previous financial years Grand Mayfair * St. George’s Mansions ^ Grand Victoria Silversands Yuen Long, New Te
Slide 17: New project launches for FY2024/2025
New project launches for FY2024/2025 Four projects in the pipeline Attributable Attributable number of Location Stake plot ratio area (sq. ft.) residential units Grand Mayfair III 33.33%* 121,041 227 Yau Tong Ventilation Building Property Development 80%* 260,274 598 ONE CENTRAL PLACE 100%# 84,261 1
Slide 18: Property rental
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Slide 19: Rental activities
Rental activities Discontinuation of waiver fee concession adversely impacted net rental revenue FY 2023/24 FY 2022/23 % Change Gross Rental Revenue * HK$3,550m HK$3,505m + 1.3% Net Rental Revenue * HK$2,910m HK$2,986m - 2.5% * Including attributable share of associates and joint ventures and exclud
Slide 20: Diversified and balanced investment properties portfolio
Diversified and balanced investment properties portfolio Positive growth in gross rental revenue in FY 2023/24 Gross rental revenue* for the past five financial years Breakdown by Carpark Residential sectors 9% 4% HK$ million Industrial 5,000 9% 4,062 Retail 51% 4,000 3,665 3,546 3,505 3,550 Office
Slide 21: Hong Kong portfolio – retail trade mix
Hong Kong portfolio – retail trade mix Remained largely stable yoy Breakdown by marketable floor area 29.5% 30.0% 41.6% 41.4% As of As of 30 June 2024 30 June 2023 8.8% 8.6% 4.9% 8.3% 5.0% 8.2% 6.9% 6.8% Food & Beverages Fashion & Accessories Food & Beverages Fashion & Accessories Department Stores
Slide 22: Properties under development mainly comprise of the following properties
Properties under development mainly comprise of the following properties Providing an increase of ~5% in commercial spaces under investment properties* Attributable Project Stake plot ratio area (sq. ft.) Hong Kong KIL 11285, Wing Kwong Street / Sung On Street Project Joint Venture 22,753 NKIL 6590,
Slide 23: Revaluation of Investment properties
Revaluation of Investment properties A decline of 0.7% in IP fair value (exclude new projects, disposals and exchange difference) Revaluation gain / (loss) on investment properties Total attributable value of investment properties (including (net of deferred taxation) associates and joint ventures
Slide 24: Proactive approach in supporting retail tenants
Proactive approach in supporting retail tenants Continuously optimising tenant mix to cater to local taste & preferences Drive footfall and consumption Targeted marketing strategies and promotional activities to attract shoppers to our malls Offer unique incentives such as complimentary flight t
Slide 25: Initiatives to enhance customer engagement
Initiatives to enhance customer engagement Actions to drive footfall and boost tenant sales “Art@Harbour” In collaboration with HKWALLS, we presented “Chromaflux”, a curated digital art exhibition featuring a diverse group of five artists, redefining the Sino LuminArt Façade as a dynamic canvas fo
Slide 26: Initiatives to enhance customer engagement
Initiatives to enhance customer engagement Actions to drive footfall and boost tenant sales Eye-catching, themed décor and setups to draw traffic and enhance the shopping ambiance Promote and leverage on our “S+ REWARDS” digital programme to boost customers’ loyalty Targeted online and offline
Slide 27: Hotels
Hotels QsINo LAND COMPANY LIMITED
Slide 28: Hotel operations
Hotel operations Improving revenue and profitability FY 2023/24 FY 2022/23 % Change Hotel Revenue* HK$1,527m HK$1,376m + 11.0% Segment operating profit* HK$487m HK$451m + 8.0% * Including attributable share of associates and joint ventures Occupancy levels FY 23/24 FY 22/23 Consistent recovery in
Slide 29: Prospects
Prospects QsINo LAND COMPANY LIMITED
Slide 30: Prospects
Prospects - Combined with our strong financial position, sustainable growth strategy and solid fundamentals, the Group is a good position to tackle challenges and capitalise on opportunities that arise The Group will stay alert and flexible in the rapidly evolving macro-economic environment Overall
Slide 31: Thank you
5 SINO LAND COMPANY LIMITED Thank you
Slide 32: Q&As
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Slide 33: Our Performance in ESG Ratings and Recognitions
Appendix Our Performance in ESG Ratings and Recognitions Global 100 World’s Most Sustainable MSCI ESG Ratings S&P Global Sustainability CDP Most Sustainable Companies AA Rated Yearbook 2024 Member A- Corporations (Updated as at 25 June 2024) (Updated as at 22 February 2024) (Updated as at 7 Februa
Slide 34: Our Performance in ESG Ratings and Recognitions
Appendix Our Performance in ESG Ratings and Recognitions Sustainalytics Dow Jones Sustainability Greater Bay Area Business GRESB Hang Seng Corporate Asia/Pacific Index Sustainability Index Sustainability Index Series Regional Top-rated ESG Performer Constituent Top 10 (Pace-setter) 5-Star Rating A
Slide 35: Key ESG Accolades
Appendix Key ESG Accolades UNSDG Achievement Awards Hong Kong 2023 2022/2023 ESG Achievement Awards BDO ESG Awards 2023 • Grand Award • ESG Benchmark Award – Platinum • ESG Report of the Year – Large Market Capitalisation • Organisation Award (Sustainable • Outstanding Sustainability Dividend Award
Slide 36: Key ESG Accolades
Appendix Key ESG Accolades Hong Kong ESG Reporting Awards 2023 Green Building Award 2023 ESG Leading Enterprise Awards 2023 • Best ESG Report (Large-cap) – Grand Award • Pioneer Award – Green Building Leadership • ESG Leading Enterprise Award (Category I: Category: Developer Market Capitalisation ov
Slide 37: Key ESG Accolades
Appendix Key ESG Accolades Hong Kong Corporate Governance and ESG 12th Hong Kong Professional Building Inspectors 14th Asian Excellence Awards Excellence Awards 2023 Academy Awards • Quality Building – Developer (Grand Victoria) • Asia's Best CEO • ESG Excellence Award (Hang Seng Composite Index Con
Slide 38: 2023/2024 Completed Asset Enhancement Works
Appendix 2023/2024 Completed Asset Enhancement Works Westin Centre | Wholesale Conversion Olympian City 2 | 1/F New Arcade
Slide 39: 2023/2024 Completed Asset Enhancement Works
Appendix 2023/2024 Completed Asset Enhancement Works CityWalk | Toilet Renovation Tuen Mun Town Plaza 1 | G/F Toilet Renovation
Slide 40: Asset Enhancement Works in Progress
Appendix Asset Enhancement Works in Progress Tuen Mun Town Plaza 1 | 1/F Ceiling Renovation China Hong Kong City | 1/F Ceiling Renovation
Slide 41: Asset Enhancement Works in Planning
Appendix Asset Enhancement Works in Planning China Hong Kong City | Mall Renovation CityWalk | Mall Re-layout Tuen Mun Town Plaza 1 | Footbridges Renovation