China Housing & Land Development Inc
China Housing & Land Development — Roth Capital China Tour May 2007
24 slides from China Housing & Land Development's conference presentation, May 15, 2007
Slide 1: China Housing & Land Development, Inc.
China Housing & Land Development, Inc. (CHLN: OTCBB) Roth Capital China Tour May 2007
Slide 2: Safe Harbor Statement
Safe Harbor Statement Certain statements in this presentation are forward looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Actual results could differ materially from such statements expressed or implied herein as a result of a variety of factors, includ
Slide 3: Company Overview
Company Overview Financial Overview ($ in millions) Largest private residential real estate developer in Xian, Shaanxi Province Established track record of successful residential and commercial property development and sales Privatized in 1999 and incorporated under the laws of the PRC in September
Slide 4: Company History
Company History Established in 1992 as a state-owned enterprise (SOE) Mr. Lu Pingji, CEO, has been part of the leadership team since inception Focus on real estate developments in Shaanxi Province 1999 management buyout spearheaded by Mr. Lu Reverse merger with OTCBB trading company on April 21, 200
Slide 5: Chinese Real Estate Industry Overview
Chinese Real Estate Industry Overview Private real estate developers spurred by favorable demographic and regulatory trends Population growth in the cities as a result of rural migration Burgeoning middle and upper classes Key regulatory events: 1992: Major Chinese cities began selling state-owned h
Slide 6: Xian Market Facts
Xian Market Facts Xian, the capital of Shaanxi Province is a city with 8.0 million population, one of the “Top 10” largest cities in China, located 600 miles southwest of Beijing Popular tourist destination with such destinations as the Terra Cotta Warriors and the Old Walled City of Xian High densi
Slide 7: Xian Real Estate Market
Xian Real Estate Market China Housing will focus on the Xian market due to: The Company’s strong brand name and reputation Xian’s need for substantial residential housing and associated retail space. Average living area in Xian is 157 sq. ft. person compared to 268 sq. ft. per person national averag
Slide 8: Completed Projects
All projects are multi-family complexes Tsining Mingyuan Ldu Minayuan Sold Area (sq. ft.) 571,078 89,163 346,912 323,696 449,962 Apartment Units 303 56 238 215 Hh Date Completed 64/2000 11/2001 12/2003 12/2003 12/2004 Realized Revenue $20.62 $4.14 $17. $13.79 $18.33 (US Millions) Gross Profit $6.16
Slide 9: Overview of Current and Future Developments
Overview of Current and Future Developments The Company has acquired land and development rights for all pipeline projects Development Project Status Type Interest Area Est. Cost (2) Total Profit (3) (Sq.ft.)(1) Unit (million USD) (million USD) Construction Hotel, Served Current 24G Completed; Apart
Slide 10: Junjing Garden I
Junjing Garden I Location City of Xian Project Type Multi-family, 15 buildings Associated retail Acreage 14 Number of Units 1,230 apartments Total Square Footage: 1,904,046 Residential 1,595,198 Retail/Commercial 308,848 Development Timeline: Commencement 6.2004 Planned Completion 9.2006 Status Sell
Slide 11: Tsining 24G
Tsining 24G Location City of Xian Project Type Multi-family, redevelopment One 26-story building with retail Acreage 2 Number of Units 372 apartments Total Square Footage: 532,982 Residential 319,789 Retail/Commercial 213,193 Development Timeline: Commencement 12.2004 Planned Completion 6.2006 Statu
Slide 12: Junjing Garden II
Junjing Garden II Location City of Xian Project Type Multi-family, associated retail Acreage 18 Number of Units 1,500 apartments Total Square Footage: 2,524,457 Residential 2,407, 377 Retail/Commercial 117,080 Development Timeline: Commencement 6.2007 Planned Completion 11.2009 Status Planning/In Pr
Slide 13: Yijing Garden
Yijing Garden Location City of Xian Project Type Multi-family, associated retail Acreage 15 Number of Units 1,500 apartments Total Square Footage: 2,039,793 Residential 1,932,174 Retail/Commercial 107,619 Development Timeline: Commencement 10.2008 Planned Completion 2010 Status Planning Total Projec
Slide 14: Kang Canyon
Kang Canyon Location 20 kilometers south of Xian Project Type Single-family villa development, associated retail, 100 rooms hotel Acreage 174 Number of Units 150 single-family villas Total Square Footage: 780,100 Residential 564,900 Retail/Commercial 215,200 Development Timeline: Commencement 10.200
Slide 15: Baqiao Hi-Tech Zone
Baqiao Hi-Tech Zone 2,224 acre Xian-based development encompassing Residential housing Retail and light commercial Aerospace research center Logistical center CHLN has acquired 100% interest in New Land Co. for $34.2 million New Land has the exclusive rights to develop 487 acres of land within Baqia
Slide 16: Baqiao Business Strategy
Baqiao Business Strategy CHLN is responsible for settlement and infrastructure facilities The land would be sold by tender invitation, auction and listing Taxes for land appreciation will be paid directly to the government It is expected that 18 million square feet of real estate will be constructed
Slide 17: Baqiao Hi-Tech Zone Improved Land Sales
Baqiao Hi-Tech Zone Improved Land Sales Initial development phase focuses exclusively on improvement and sales of 487 acres Improvement costs of approximately $309 million for all 487 acres Construction in Progress We expect to sale the 487 acres land from 2007 to 2010 . Year Sold Land ( acres) 2007
Slide 18: Baqiao Key Highlights
Baqiao Key Highlights Significant and exclusive land opportunity (very difficult to obtain) Higher profit margins in selling land Strong market - Land demand is strong in China, Tier 2 markets like Xian not yet saturated - Land prices stable and trading upwards at brisk pace Fast cash flow turnaroun
Slide 19: Strong Annual Financial Performance
Strong Annual Financial Performance (in 000's USD other than EPS) Year 2006 2005 Revenue Sale of Properties $53, 647 $32,450 Other Income $452 $336 Total Revenue $54,010 $32,786 Cost and Expenses Cost of Properties $36,750 $21,237 Sold SGA $3,197 $3,633 Other expense $301 $104 Interest expense $289
Slide 20: Key Operating Metrics
Key Operating Metrics 2006 2005 Revenue Growth 65% 54% Operating Income 92% 115% Operating Margins 25% 22% Net Income 91% 126% Net Margin 17% 15% EPS 88% N/A
Slide 21: Balance Sheet Highlights
Balance Sheet Highlights March 31, 2007 December 31, 2006 Cash and restricted cash $1,479,805 $1,487,904 Accounts receivable $2,618,883 $3,070,516 Real Estate Finished projects $31,788,383 $37,247,436 Construction in progress $10,549,075 $9,730,650 Total real estate held $42,337,458 $46,978,086 Prop
Slide 22: Management
Management Mr. Lu Pingji, Chairman & CEO Mr. Lu has been Chairman of the Board of Directors since September 1999 and has over 30 years experience in housing development, management and construction. Mr. Lu is a graduate from Xian Army College with a major in architectural engineering Mr. Xiao Genxia
Slide 23: Conclusion
Conclusion Largest private residential real estate developer in Xian Favorable demographic trends Experienced management team with proven track record of successful developments Robust pipeline of sizable, profitable projects Defensible competitive positioning
Slide 24: Questions
Questions Company Contact: Jing Lu China Housing & Land Development, Inc. (+86)029-8258-2632 jinglu@chidinc.com Investors: Matt Hayden HC International matt@haydenir.com 858 704 5065
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