China Overseas Land & Investment Limited · HKEX:688
China Overseas Land & Investment — H1 2007 Earnings Presentation
40 slides from China Overseas Land & Investment's earnings presentation, Aug 16, 2007
Slide 1: Presentation for Analyst Meeting
Presentation for Analyst Meeting 16 August 2007 0
Slide 2: Content
CONTENT 2007 Interim Results Review of Business Future Outlook 11
Slide 3: 2007 Interim Results
2007 INTERIM RESULTS fp) PR ROK RAR AS (B) CHINA OVERSEAS LAND & siaieiatimains: wes
Slide 4: 2007 Interim Key Financials
2007 Interim Key Financials Unit 30/6/2007 30/6/2006 Change Turnover HK$ Million 4,760 3,600 ▲32.2% Gross Profit HK$ Million 1,749 1,128 ▲55.1% Net Profit HK$ Million 1,365 852 ▲60.2% Shareholders' Equity HK$ Million 18,001 11,861 ▲51.8% Gross Margin % 37 31 ▲19.4% Net Profit Margin % 29 24 ▲20.8% E
Slide 5: Turnover & Operating Profit by Regions
Turnover & Operating Profit by Regions Turnover by Regions Operating Profit by Regions HK & HK & Macau Macau 4.0% 3.9% Mainland Mainland China China 96.0% 96.1% Total Turnover in 1H of 2007: HK$ 4.76b Total Operating Profit in 1H of 2007: HK$ 1.78b 44
Slide 6: Segment Turnover and Breakdown
Segment Turnover and Breakdown Segment Turnover (HK$ mm) Turnover Breakdown (HK$ mm) 30/6/2007 30/6/2006 Change 5.0% 5.5% Property 4,204 3,099 ▲35.7% development 1.2% Property 59 61 ▼3.3% Investment Infrastructure 235* 292 ▼19.5% Investment Others 262 148 ▲77.0% Total 4,760 3,600 ▲32.2% 88.3% * Incl
Slide 7: Segment Results and Breakdown
Segment Results and Breakdown Segment Results (HK$ mm) Results Breakdown (HK$ mm) 30/6/2007 30/6/2006 Change 2.9% Property 1,305 771 ▲69.3% 2.9% development Property 293 57 ▲414.0% 17.3% Investment Infrastructure 49* 21 ▲133.3% Investment Others 49 64 ▼23.4% Total 1,696 913 ▲85.8% 76.9% * Included p
Slide 8: Property Turnover and Operating Profit by Regions
Property Turnover and Operating Profit by Regions Total Property Turnover: HK$ 4,204mm Total Property OP: HK$ 1,627mm Pearl River Region HK & Macau Pearl River HK & Macau 40.0% 1.5% Region 0.1% 49.3% Western Western Region Region 16.5% 18.6% Bohai Rim & Bohai Rim & Northeast Northeast 9.5% 9.8% Yang
Slide 9: The Growth Trend of Turnover
The Growth Trend of Turnover (HK$ million) 16,000 14,000 12,000 10,910 10,000 8,624 7,618 7,931 8,000 6,000 4,760 3,301 3,600 ▲32.2% 4,000 2,731 2,265 2,000 0 2003 2004 2005 2006 2007 Interim Results Annual Results 88
Slide 10: The Growth Trend of Net Profit
The Growth Trend of Net Profit (HK$ million) 4,000 3,500 3,000 2,500 2,371 2,000 1,535 1,500 1,365 1,074 ▲60.2% 1,000 852 696 576 500 368 212 0 2003 2004 2005 2006 2007 Interim Results Annual Results 99
Slide 11: The Growth Trend of EPS
The Growth Trend of EPS (HK$ cents) 60.0 50.0 40.0 35.5 30.0 24.0 17.1 ▲44.9% 19.2 20.0 12.7 13.3 9.0 10.0 5.9 3.9 0.0 2003 2004 2005 2006 2007 Interim Results Annual Results 10 10
Slide 12: The Growth Trend of Shareholder Equity
The Growth Trend of Shareholder Equity (HK$ billion) 30.00 25.00 20.00 18.00 15.45 ▲51.9% 15.00 11.86 9.80 10.43 10.4311.08 10.00 7.72 8.09 5.00 0.00 2003 2004 2005 2006 2007 Interim Results Annual Results 11 11
Slide 13: PRC Property Development Margin
PRC Property Development Margin 45% 39.00% 40% 35.90% 35% 29.53% 30% 26.43% 25% 20% 16.54% 15% 10% 5% 0% 1H 2003 1H 2004 1H 2005 1H 2006 1H 2007 12 12
Slide 14: Financial Highlights
Financial Highlights Standard & Poor’s and Moody’s continue to give COLI the BBB- and Baa3 investment ratings respectively. In July 2007,COLI’s Board proposed a new bonus issue under which 1 warrant will be issued for every 12 shares held by shareholders at an initial subscription price of HK$ 12.50
Slide 15: Review of Business
REVIEW OF BUSINESS fp) PR ROK RAR AS (B) CHINA OVERSEAS LAND & siaiatiuas'Y wns
Slide 16: Business Highlights
Business Highlights COLI was ranked No.1 in both overall strength and economic value added categories by “China Real Estate Top 10 Research Group” among HK-listed mainland developers. COLI's seven residential projects in Mainland China were awarded “2007 Jeme Tien-You Grand Prizes”, the highest awar
Slide 17: A Nationwide Property Developer
A Nationwide Property Developer Bohai Rim & Northeast: Beijing Western Region: Changchun Xi’an Dalian Chengdu Qingdao Chongqing Yangtze River Delta: Shanghai Suzhou Nanjing Ningbo Hangzhou Pearl River Delta: Shenzhen HK & Macau: Guangzhou Zhongshan Hong Kong Foshan Macau Zhuhai 16 16
Slide 18: Projects Completed for Occupation in 1H of 2007
Projects Completed for Occupation in 1H of 2007 Total GFA GFA Sold Four projects were City Project (’000m2) (’000m2) completed for 55.7 43.2 occupation in first half Greenery Shenzhen Heights of 2007. 60.2 57.0 Total Gross Floor Area Blossom Cove Guangzhou Phase 1 (GFA) completed for occupation was
Slide 19: Contracted Sales Growth Trend
Contracted Sales Growth Trend 2007E 928 The total Gross Floor Area 2006 800 1720 (“GFA”) sold was 928,000 1210 m2, representing an increase 2005 520 of 16.3% over the 860 2004 490 GFA: ’000 m2 corresponding period of 0 500 HK & 1500 1000 2000 2500 2006. Others Macau Interim Results Annual Results Pr
Slide 20: Contracted Sales by Property Types
Contracted Sales by Property Types Sales by GFAs (‘000 m2) Sales by Value (HK$ billion) 40.3% 32.7% 57.0% 50.6% 10.3% 9.1% Total Property Sales GFA: 928 Total Property Sales Value: 8.55 Developing Developing Completion for Occupation Completion for Occupation From Stock Last Year From Stock Last Yea
Slide 21: Contracted Sales and GFA Sold by Regions
Contracted Sales and GFA (m2) Sold by Regions Property Sales By Regions (HK$ billion) GFA Sold by Regions (‘000 m2) Bohai Rim & Northeast Bohai Rim & Western 10.3% Western Region Northeast 13.3% Region 14.8% 20.1% HK & Macau 1.7% HK & Macau 0.3% Yangtze River Region 29.3% Yangtze River Region 30.0%
Slide 22: Sales, GFAs, Average Price by Cities in 1H of 2007
Sales, GFAs, Average Price by Cities in 1H of 2007 Suzhou 1,355 7,659 177.0 Xi'an 175 32.1 5,445 Nanjing 278 30.6 9,087 Changchun 589 103.2 5,702 Chengdu 1,090 154.3 7,062 Beijing 289 20.2 14,316 Foshan 846 134.8 6,274 Guangzhou 1,174 73.4 16,003 Shanghai 873 70.2 12,442 Zhongshan 247 47.2 5,233 Ove
Slide 23: Stock Carry-Forward As of June 30, 2007
Stock Carry-Forward As of June 30, 2007 Stock c/f Completion Sold Stock c/f 31/12/2006 GFA(‘000 m2) GFA(‘000 m2) 30/6/2007 GFA(‘000 m2) GFA(‘000 m2) Stock c/f 442 N/A 303 139 31/12/2006 Jan –June/2007 N/A 263 215 48 Total 187 22 22
Slide 24: Future Outlook
FUTURE OUTLOOK NUP ER Oks BARA (B) CHINA OVERSEAS LAND & siaeiatiaa wee
Slide 25: New Land Acquired in 1H of 2007
New Land Acquired in 1H of 2007 Attributab Land Area Total GFA Attributable Land Cost Time City Name of Project le Interest (‘000 m2) (‘000 m2) GFA (‘ (‘000 m2) (HK$ mm) Changchun China Overseas City 100% 501 1,020 1,020 790 Suzhou Lot No. 2006-B-19 100% 48 205 205 525 Yizhou High Education Park Lot
Slide 26: Current Landbank by City
Current Landbank by City (‘000 m2) 2,576 2,351 2,192 2,069 1,578 1,470 1,208 1,035 822 751 759 488 312 272 210 230 132 153 48 K n g o ao au ai n an u g ou un ai ng ou du en n ia gb jin H 'a ho jin gh ha uh gd sh ac al zh ch qi zh ng zh Xi an in ei gz gs an Zh D ng M in Fo ng ng en Su he N B N an on
Slide 27: Landbank Diversification by Regions
Landbank Diversification by Regions HK & Macau Shenzhen 6.52% HK 0.26% 1.08% Zhongshan 1.68% Macau 0.82% Western China Guangzhou 4.44% Pearl River Region Region Foshan 11.83% 25.94% 23.08% Zhuhai 1.47% Chengdu 13.91% Chongqing 1.24% Xi’an 7.93% Shanghai 5.59% Ningbo 4.05% Hangzhou 1.14% Qingdao 2.63
Slide 28: Property Completion Estimate by GFAs
Property Completion Estimate by GFAs 2008E 3,500 2007E 2,550 2006 1,980 GFA: ’000 m2 0 500 1000 1500 2000 2500 3000 3500 4000 27 27
Slide 29: Contracted Sales Estimate by GFAs
Contracted Sales Estimate by GFAs 2008E 2,700 2007E 2,100 2006 1,720 GFA: ’000 m2 0 500 1000 1500 2000 2500 3000 28 28
Slide 30: Projects To Be Completed in 2H of 2007
Updated: Projects To Be Completed in 2H of 2007 City Serial Name of Project GFA (‘000 m2) Shenzhen 1 No.1 Honey Lake 87 2 Greenery Heights 13 3 Royal Green Phase 1 & 2 84 4 Mount Canyon 21 5 The Wesley 40 Beijing 6 Walden Pond Villa 43 Guangzhou 7 Park Royale 86 8 Jincheng Tower 32 9 South Garden 47
Slide 31: Projects To Be Completed in 2H of 2007 (Continued)
Updated: Projects To Be Completed in 2H of 2007 (Continued) City Serial Name of Project GFA ('000 m2) Suzhou 15 Lakeside Palace 51 16 Royal Lakefront 58 17 Galaxy Centro 87 Ningbo 18 Bellagio 94 Changchun 19 Villa Venezia Phase 2-3 166 20 Der Rhein Phase 3 66 Foshan 21 Starcrest Phase 2 A 224 22 Cha
Slide 32: 2008 Estimated Completion Schedule by Cities
2008 Estimated Completion Schedule by Cities (‘000 m2) 585 411 335 308 244 199 204 100 86 101 67 31 40 n n bo g an u ou ou g n en ai ng ha hu in gd jin 'a gh sh ng zh zh zh iji Xi gq gs en n gc an Be Fo Su en ng Ni Na on on an Ch Sh Sh ua Ch Zh Ch G █ Pearl River Region █ Yangtze River Region █ Boha
Slide 33: Our Views on Macro-Controls
Our Views on Macro-Controls Government Measures The Implications Supply more new land for building New tough measures targeting the residential properties. property sector are not expected. Strictly implement the 70/90 m2 rule These measures are milder than the to increase more unit supply to the ma
Slide 34: Price Growth Trend Year over Year in PRC
Price Growth Trend Year over Year in PRC 16.0% 14.0% 12.0% 10.0% 8.0% 6.0% 4.0% 2.0% 0.0% Jan Feb Mar Apr May Jun -2.0% 70 cities average Beijing Shanghai Guangzhou Shenzhen Chengdu 33 33
Slide 35: Price Growth Trend Month to Month in PRC
Price Growth Trend Month to Month in PRC 1.6% 1.4% 1.2% 1.0% 0.8% 0.6% 0.4% 0.2% 0.0% Jan Feb Mar Apr May Jun -0.2% 70 cities average Beijing Shanghai Guangzhou Shenzhen Chengdu 34 34
Slide 36: Our Views on PRC Property Market
Our Views on PRC Property Market China’s property market is going through a long upward cycle which is estimated to last about 20 to 30 years. China’s GDP Per Capita reached USD 1,500 and the property industry contributed 5-6% of total GDP in 2004, a turning point for property sector to enter into a
Slide 37: COLI's Core Competencies
COLI’s Core Competencies The most capable business development and execution teams equipped with abundant professional expertise and international experience. Strong financing capabilities through two financing platforms and multiple means with access to both international and Mainland China financi
Slide 38: Strategies and Objectives
Strategies and Objectives Our target is to achieve a substantial profit growth for the year of 2007. New land acquisition anticipated for 2007: 6 to 8 million m2. Add large-scale land bank in cities and regions full of economic potentials. Acquire more strategic and long-term land bank through metho
Slide 39: Thank You!
THANK YOU! DN PR Rk RAR AD =A CHINA OVERSEAS LAND & sieeiiatiaa: wee
Slide 40: Disclaimer
Disclaimer These materials have been prepared by China Overseas Land and Investment Ltd. (“COLI” or the “Company”) solely for information use during its presentation may not be reproduced or redistributed to any other person without the permissions from COLI. By attending this presentation, you are
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