Singapore Exchange Ltd. · SGX:S68
Singapore Exchange — Chongqing Yingli — Investor Presentation (2009)
40 slides from Singapore Exchange's investor presentation, Nov 22, 2009
Slide 1: Agenda
864-034 Agenda Overview of Chongqing Yingli Portfolio of assets PRC and Chongqing opportunity Key investment highlights Strategic Alliances Appendix Conclusion 1
Slide 2: Overview of Chongqing Yingli, a truly differentiated, niche property developer
864-034 Overview of Chongqing Yingli, a truly differentiated, niche property developer First significant Chongqing property developer listed in Singapore Leading Chongqing property developer with a niche in 1 developing Grade A commercial buildings Completed the most projects in the CBD of Chongqi
Slide 3: Latest updates
864-034 Latest updates First significant Chongqing property developer listed in Singapore In early Mar 09, Chongqing Municipal Government has signed “Financial Strategic Cooperation Agreement” with 1 China Contruction Bank to borrow RMB249.9 billion to fund the “Cordinated development of urban and C
Slide 4: First Chongqing significant commercial real estate player listed in Asia
864-034 First Chongqing significant commercial real estate player listed in Asia “A leading niche property developer based in Chongqing, one of the fastest growing cities in the PRC. It focuses on developing quality commercial properties in the prime areas of Chongqing through co-operation with the
Slide 5: Proven track record with prime land bank designated for commercial landmark buildings
864-034 Proven track record with prime land bank designated for commercial landmark buildings Key Key milestones milestones 1997: Completion of its first project, Minsheng Mansion, total GFA of 63,341sqm 2000: Completion of Zou Rong Plaza, total GFA of 102,502sqm 2005: Completion of Southland Garden
Slide 6: Agenda
864-034 Agenda Overview of Chongqing Yingli Portfolio of assets PRC and Chongqing opportunity Key investment highlights Strategic alliances Appendix Conclusion 6
Slide 7: Yingli's success in creating landmark assets in the key CBD areas of Chongqing
864-034 Yingli’s success in creating landmark assets in the key CBD areas of Chongqing Yingli’s Yingli’s landbank landbank breakdown breakdown by by usage usage type type Characteristics Characteristics of of Yingli’s Yingli’s existing existing portfolio portfolio Located in the prime CBD district
Slide 8: Yingli has an established footprint in Chongqing's key CBD districts
864-034 Yingli has an established footprint in Chongqing’s key CBD districts Map Map of of Chongqing Chongqing Jin Gong Restaurant Area San Ya Wan Project1 Future International Bashu Cambridge San Ya Wan Zourong Plaza Jiangbei Jiangbei District Southland Garden Chongqing Chaotianmen Guanyinqiao Peop
Slide 9: Yingli is the largest landlord in CBD of Chongqing
864-034 Yingli is the largest landlord in CBD of Chongqing Current Current portfolio portfolio Min Sheng Mansion Yingli’s maiden project - First commercial/ residential skyscraper in the Jiefangbei business district at the time of the completion of construction Major tenants include China Everbr
Slide 10: Yingli's New York New York is an icon of the Chongqing skyline
864-034 Yingli’s New York New York is an icon of the Chongqing skyline Current Current portfolio portfolio Southland Garden High-end residential and commercial property Located at the intersection of the Yangtze River and the JiaLing River in the JieFangBei district, and is next to a popular tou
Slide 11: Yingli owns the largest and most prominent building in Northern Chongqing
864-034 Yingli owns the largest and most prominent building in Northern Chongqing Current Current portfolio portfolio Future International Highest building with the largest GFA in the Guanyinqiao business district Office and commercial complex houses international companies, such as Konka Group
Slide 12: Yingli is developing several new premier buildings including IFC
864-034 Yingli is developing several new premier buildings including IFC Projects Projects in in the the pipeline pipeline International Financial Center Flagship landmark in Jiefangbei area New major financial hub, and will house major international financial institutions, offices of consulates
Slide 13: Yingli's landbank is on prime location
864-034 Yingli’s landbank is on prime prime location Projects Projects in in the the pipeline pipeline Jingong Restaurant Project Accessible and centrally located in Jiangbei area, thus providing easy access to transportation Commercial and entertainment skyscraper that will house exhibition fac
Slide 14: Agenda
864-034 Agenda Overview of Chongqing Yingli Portfolio of assets PRC and Chongqing opportunity Key investment highlights Strategic alliances Appendix Conclusion 14
Slide 15: Yingli's success has been driven by the strong fundamentals of the PRC and Chongqing's economy
864-034 Yingli’s success has been driven by the strong fundamentals of the PRC and Chongqing’s economy Key Key drivers drivers of of success success PRC Economic drivers PRC Social drivers Chongqing related drivers Booming key economic Rapid GDP growth Increasing urbanization center of Western China
Slide 16: PRC's rapid economic growth contributes to increased real estate demand
864-034 PRC’s rapid economic growth contributes to increased real estate demand China China GDP GDP PRC PRC urbanization urbanization rate rate 9% FDI (RMBbn) CAGR 14. Urbanization rate (%) 2007 30067 2000— 50 45.7 30000 24953 43.9 44.9 21192 43.0 18387 45 41.8 20000 15988 40.5 39.1 12033 13582 40 3
Slide 17: Attractive opportunity to invest into the fast growing Chongqing economy
864-034 Attractive opportunity to invest into the fast growing Chongqing economy which is enjoying favourable regulatory policies Chongqing enjoys greater autonomy as the 4th directly administered municipality¬in PRC “Gateway to the West” and most populous city in China with over 30mm in¬population
Slide 18: Chongqing - Gateway to the West
864-034 Chongqing- Gateway to the West According to Vice Mayor of Chongqing, Huang Qifan, the PRC government plans to invest RMB2 trillion over the next five years to improve the economic environment and development base of Chongqing Source: Business Times, March 18, 2008 18
Slide 19: Chongqing demonstrates great potential for real estate growth
864-034 Chongqing demonstrates great potential for real estate growth Expected price increase in real estate Average Average price price of of commodity commodity property property prices prices in in Chongqing Chongqing prices RMB per sqm % 3,998 14.5 4,000 07 CAGR Property prices below 2000—20 3
Slide 20: Agenda
864-034 Agenda Overview of Chongqing Yingli Portfolio of assets PRC and Chongqing opportunity Key investment highlights Strategic alliances Appendix Conclusion 20
Slide 21: Key investment highlights of Yingli
864-034 Key investment highlights of Yingli Competitive Competitive strengths strengths Proven track record in urban renewal Strong financials Good working coupled with huge 1 relationships with local 6 2 growth potential authorities and business partners Experienced management team and Premier bran
Slide 22: 1. Specialist in urban renewal
864-034 1. Specialist in urban renewal Old city landscape Transformed city landscape Recognized partner of choice to the regulators/ government for urban renewal projects Successful modernization of Chongqing’s landscape and skyline Contribute to capital appreciation of surrounding properties
Slide 23: 2. Established working relationships
864-034 2. Established working relationships Good Good working working relationship relationship with with the the local local authorities authorities Close cooperation with Yingli’s projects are often Partner-of-choice- Receive Chongqing government visited by government invitations to participate i
Slide 24: Yingli is recognized as a corporate with strong social responsibility
864-034 YIngli is recognized as a corporate with strong social responsibility Yingli is the largest contributor amongst Chongqing corporations in the recent earthquake relief efforts Donated RMB10 million to reconstruction efforts in Liang Ping, PRC 24
Slide 25: 3. Successful branding has differentiated the Yingli brand
864-034 3. Successful branding has differentiated the Yingli brand Yingli is a highly-recognised brand in Chongqing Represents Award winning enterprise One of Chongqing’s top real estate development Quality enterprises One of Chongqing’s top trusted real estate enterprises The leading brand
Slide 26: 4. Dynamic business model ensures good cost management
864-034 4. Dynamic business model ensures good cost management Chongqing Chongqing Yingli’s Yingli’s business business model model Market research Developing Strategic Acquisition Project Pre-sales, and project planning of management sales and investment concept land rental decision and design makin
Slide 27: 5. Experienced management team with proven track record
864-034 5. Experienced management team with proven track record Mr Fang Ming Chairman and General Manager More than 15 years of industry experience Responsible for overall management of Yingli’s business Bachelor of Science Mr Zheng Mr Xie Xin Ms Xu Li Mr Lim Boon Ping Mr Chen Ronghua Shengqin
Slide 28: 5. Strong corporate governance
864-034 5. Strong corporate governance LeadIndependent Lead IndependentDirector Director Co-founderand Co-founder andPartner PartnerofofAch AchInvestments InvestmentsPte PteLtd Ltd Mr Christopher Currentdirectorships Current directorshipsinclude includeGLG GLGCorp CorpLtd, Ltd,Xpress XpressHol
Slide 29: 5. Strong corporate governance (cont'd)
864-034 5. Strong corporate governance (cont’d) ExecutiveDirector Executive Director ExecutiveDirector Executive Directorofofthe theFortune FortuneCourt CourtGroup Groupsince sinceNovember November1996 1996 Chairmanand Chairman andthe theGeneral GeneralManager ManagerofofChongqing ChongqingYin
Slide 30: 6. Strong financial fundamentals…
864-034 6. Strong financial fundamentals… Total revenue Recurrent rental income RMB million RMB million 245.9 1% 228.6 272. 250 100 AGR 5— 2 008 C 200 80 2 00 150 60 98.1 40.0 100 86.7 40 30.9 50 20 7.0 0.6 0 0 2 2 2005 2006 2007 2008 2005 2006 2007 2008 EBIT1 Total assets RMB million RMB million 48
Slide 31: … with very strong earnings potential over the next 3-5 years
864-034 … with very strong earnings potential over the next 3-5 years International Financial Center San Ya Wan Project Lu Zu Temple Project New benchmark landmark properties in Chongqing CBD areas Strong cashflows expected when new projects come online Phase II of San Ya Wan Project, expected c
Slide 32: Agenda
864-034 Agenda Overview of Chongqing Yingli Portfolio of assets PRC and Chongqing opportunity Key investment highlights Strategic alliances Appendix Conclusion 32
Slide 33: Forge alliances with business partners
864-034 Maintain strategic partnerships with suppliers, consultants and investors Forge alliances with business partners Establish long-term strategic partnerships with suppliers, property management and property sales Seek international collaborations for large development projects 33
Slide 34: Agenda
864-034 Agenda Overview of Chongqing Yingli Portfolio of assets PRC and Chongqing opportunity Key investment highlights Strategic alliances Appendix Conclusion 34
Slide 35: Yingli has an attractive asset class
864-034 Yingli has an attractive asset class Properties held for sale Type Attributable GFA1 (sqm) Bashu Cambridge Retail/ Residential 10,886 Sub-total 10,886 Investment properties Min Sheng Mansion Office/ Retail/ Residential 9,764 Zou Rong Plaza Office/ Retail/ Residential 7,006 Southland Garden R
Slide 36: Key income statement items
864-034 Key income statement items RMB million 2005 2006 2007 20081 Revenue from sale of properties 97.6 221.6 206.0 55.8 Rental revenue 0.6 7.0 39.9 30.9 Total revenue 98.1 228.6 245.9 86.7 Cost of sales (71.5) (151.0) (167.9) (60.7) Gross profit 26.6 77.6 78.1 26.0 Selling expenses (3.9) (6.5) (6.
Slide 37: Key balance sheet items
864-034 Key balance sheet items RMB million Non-current assets 2005 2006 2007 2008 Investment properties 131.8 488.7 1,330.4 1,279.9 Property, plant and equipment 2.0 1.9 3.3 3.7 Current assets Land for development 367.8 109.6 203.7 572.7 Development properties 26.5 166.1 31.6 105.6 Trade and other
Slide 38: Agenda
864-034 Agenda Overview of Chongqing Yingli Portfolio of assets PRC and Chongqing opportunity Key investment highlights Strategic alliances Appendix Conclusion 38
Slide 39: Chongqing Yingli - A unique opportunity to invest into the fast growing Chongqing real estate sector
864-034 Chongqing Yingli- A unique opportunity to invest into the fast growing Chongqing real estate sector First significant Chongqing developer listed in Singapore Chongqing- a growth story Prime properties, prime landbank Good working relationships with local authorities and business partners Pre
Slide 40: Chongqing - a Growth Story
864-034 Chongqing- a Growth Story Proven Track Record in Urban Renewal Prime Properties, Prime Landbank 40