Yuzhou Group Holdings Co., Ltd. · HKEX:1628
Yuzhou — Yuzhou Properties Company — H1 2014 Earnings Presentation
38 slides from Yuzhou's earnings presentation, Aug 28, 2014
Slide 1: Presentation on 2014 Interim Results
Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in relia
Slide 2: 2014 Interim Results Announcement
2014 Interim Results Announcement 28 August 2014
Slide 3: About Yuzhou Properties (01628.HK)
ABOUT YUZHOU PROPERTIES (01628. HK) A leading property developer in West Strait Economic Zone with footprints in Xiamen, Fuzhou and Quanzhou, the Top 3 largest cities in Fujian Province KEY FOCUS Successful expansion into Shanghai, Hefei, Tianjin, Longyan, Bengbu and Zhangzhou Well-established
Slide 4: About Presenters
ABOUT PRESENTERS Founder, Mr. LAM, Lung On Chairman and Executive Director Mr. CAI Minghui Excecutive President Chief Financial Officer and Mr. Steve CHIU Company Secretary Head of Ms. Venus Chiu Corporate Finance & Investor Relations 3
Slide 5: Table of Contents
TABLE OF CONTENTS I. FINANCIAL HIGHLIGHTS II. BUSINESS REVIEW III. FUTURE PERSPECTIVES IV. APPENDIX 4
Slide 6: Financial Highlights
(3 Fa i th HE AR 1 BR 23] % YUZHOU PROPERTIES COMPANY LIMITED FINANCIALHIGHLIGHTS
Slide 7: Highlights of 2014 Interim Results
HIGHLIGHTS OF 2014 INTERIM RESULTS FINANCIAL HIGHLIGHTS FOR THE SIX MONTHS ENDED 30 JUNE 2014 Compared with 1H2013 Recognized revenue: RMB3,924 million (+RMB2,892 million or +280%) Gross profit: RMB1,416 million (+RMB1,085 million or +328%) Core profit attributable to owners of parent: RMB486
Slide 8: 1H2014 Key Profit & Loss Items
1H2014 KEY PROFIT&LOSS ITEMS Revenue* Gross Profit RMB million RMB million 6,439 1,988 2H 2H 1,112 2,939 1H 1,416 1H 3,924 955 1,032 431 331 FY2012 FY2013 1H2014 FY2012 FY2013 1H2013 EBITDA Core Profit RMB million RMB million 2,336 2H 995 2H 1H 649 1,111 1H 1,443 486 355 272 161 95 FY2012 FY2013 1H2
Slide 9: 1H2014 Revenue Breakdown
1H2014 REVENUE BREAKDOWN (RMB’000) 1H2014 1H2013 Change 100%=RMB 3,924 million 100%=RMB 1,032 million Hotel operation 100% 7,271 - N/A 0.5% income 0.7% 0.7% Construction 2.7% 98% 0.7% materials trading 27,871 5,043 +453% income Property 96% 26,892 27,667 -3% management fees 2.4% Rental income 28,282
Slide 10: Analysis on 1H2014 Recognized Property Sales
ANALYSIS ON 1H2014 RECOGNIZED PROPERTY SALES Recognized Property Sales* Recognized GFA & ASP RMB million GFA (sq.m.) ASP (RMB/sq.m.) 500,000 10,718 10,579 12,000 400,000 9,478 362,396 9,000 300,000 6,374 2H 6,000 1H 200,000 2,886 102,815 3,834 100,000 83,827 3,000 898 975 0 0 FY2012 FY2013 1H2014 1H
Slide 11: 1H2014 Key Balance Sheet Items
1H2014 KEY BALANCE SHEET ITEMS Cash Position Total Debt RMB million RMB million 7,667 13,035 9,710 4,631 3,884 8,226 10,652 Long-term 5,274 7,726 Short-term 2,952 1,984 2,383 1H2013 FY2013 1H2014 1H2013 FY2013 1H2014 Total Asset Total Equity RMB million RMB million 33,413 8,065 7,472 26,015 27,362 6
Slide 12: 1H2014 Stable Financial Position
1H2014 STABLE FINANCIAL POSITION Net Gearing Ratio Debt Profile by Maturity % % 12 100 18 78 80 Within 1 year 64 62 67 60 1 to 2 year 11 2 to 5 year 40 42 Over 5 year 20 17 0 2009 2010 2011 2012 2013 1H2014 59 Debt Profile by Currency Debt Profile by Type % % 43 36 Fixed US$ 44 interest rate HK$ Flo
Slide 13: Business Review
EY Fa fh EAR ABR ZS % YUZHOU PROPERTIES COMPANY LIMITED BUSINESS REVIEW 12
Slide 14: Snapshot of Land Bank
SNAPSHOT OF LAND BANK 8.58million sq.m. as at June 2014* Saleable Average Land % of GFA No. of Cost saleable City (‘000 sq.m.) projects （RMB/sq.m.） GFA Bohai Rim Tianjin 451 2 1,061 5 Region Shanghai 640 6 3,369 8 Yangtze Hefei 2,425 5 1,569 28 River Delta Tianjin Bengbu 668 1 660 8 Xiamen 2,047 23
Slide 15: Market Leadership in Xiamen, Fujian Province
MARKET LEADERSHIP IN XIAMEN, FUJIAN PROVINCE 6 Largest Land Bank* in Xiamen (As at June 2014) Million sq.m. 2.05 Fuzhou 5 7 2.00 8 1.60 1.63 4 Quanzhou 1.20 Longyan 0.87 0.80 0.65 0.55 Xiamen 3 2 9 0.53 0.34 1 0.40 0.38 0.26 0.17 Zhangzhou 0.00 Yuzhou Vanke Shimao BCDC Longfor CR Land MingfaPowerlon
Slide 16: 1H2014 Contracted Sales
1H2014 CONTRACTED SALES Interest Contracted As of Contracted Contracted Contracted Sales # Project in Project Sales Total GFA ASP (1H2012 vs. 1H2013vs. 1H2014) City % (RMB mn) (%) (sq.m.) (RMB/sq.m.) 1 Yuzhou Golf Xiamen 100% 186 3% 11,753 15,800 RMB million 2 Yuzhou Shoreline Xiamen 100% 1,015 19%
Slide 17: Monthly Contracted Sales in 2013 vs. 2014
MONTHLY CONTRACTED SALES IN 2013 vs. 2014 Monthly Contracted Sales ( Jan 2013 – Jul 2014) Contracted Sales ASP (RMB’million) (RMB/sq.m.) 2,500 2,410 16,000 14,642 13,799 13,407 14,000 12,655 2,000 13,417 11,501 12,000 10,531 9,815 10,094 11,108 9,488 1,521 10,000 1,500 8,432 8,988 9,337 9,263 9,867
Slide 18: 1H2014 Sell-Through Rate Reached 62%
1H2014 SELL-THROUGH RATE REACHED 62% The Average Sell-through Rate is 62% % 87 66 80 74 77 69 70 70 65 62 57 60 52 49 45 41 41 44 40 32 33 20 0 Golf Shoreline Central Riverside Cloud Top Deam Others Gushan Oriental City Plaza Castle Landream Skyline Jade Cental Prince Palace Average Coast City Town
Slide 19: Land Replenishment in 1H2014
LAND REPLENISHMENT IN 1H2014 Total Land Average Land Estimated Date of Site Saleable GFA Cost Cost ASP City Project Type Methodology Acquisition Area(sq.m.) (sq.m.) (RMB mn) (RMB/sq.m.) (RMB/sq.m.) January 2014 Quanzhou Resi/Retail Public Auction 61,481 110,666 85 769 7,000+ February 2014 Fuzhou Res
Slide 20: Ability to Obtain Sustainable Project Finance
ABILITY TO OBTAIN SUSTAINABLE PROJECT FINANCE Credit Facilities Used Facilities Remaining Facilities # Lending Banks City (as of Jun,2014, RMB mn) (as of Jun,2014 RMB mn) (as of Jun,2014 RMB mn) 1 CCB Xiamen 2,070 1,538 533 2 ICBC Xiamen 1,502 2 1,500 3 ABC Xiamen 861 826 35 4 BOC Xiamen 748 748 - 5
Slide 21: 1H 2014 Cash Flow Position
1H 2014 CASH FLOW POSITION (Unaudited) RMB Bn FY2013 1H2014 FY2014 RMB Bn (A) (A) (E) Cash on Cash on Cash on Hand (at the beginning) 3.73 3.88 3.88 Hand Hand 3.88 Cash Proceeds from Contracted Sales 8.04 4.83 10.80 Rental, Management Rental, Management Fee & Fee & Other Income Other Income 0.27 1.5
Slide 22: Future Perspectives
(3 Fa i th HE AR 1 BR 23] % YUZHOU PROPERTIES COMPANY LIMITED FUTURE PERSPECTIVES 21
Slide 23: Market Outlook
MARKET OUTLOOK Policy Central Government adopted market mechanism instead of administrative measures Local governments started to loosen the “Housing Purchase Restriction” in their cities Tier 1 and certain tier 2 cities were still in a good market with more resilient Market Certain 3 and 4
Slide 24: Our Strategies to Weather the Market
OUR STRATEGIES TO WEATHER THE MARKET Product and Pricing Flexibility Experienced Management Diversify product mix to fulfill the user-oriented demand, Highly experienced management team with strong better catered to current market execution capabilities and deep industry insights Flexible pric
Slide 25: 2H2014: Detailed Launch Table
2H2014: DETAILED LAUNCH TABLE Planned Sales GFA for 2H 2014 Percentage of Planned # Project Name City Product Type Launch Type Saleable GFA(sq.m.) Sales GFA (%) Apartment Existing 2,023 0% 1 Yuzhou Golf Villa Existing 7,748 1% Car Parking Existing 8,455 1% Apartment Existing 2,400 0% Villa Existing
Slide 26: 2H2014: Launch Breakdown
2H2014: LAUNCH BREAKDOWN By City By Launch Type % Tianjin Shanghai 7 Xiamen % 6 Xiamen New Fuzhou 29 Launch Existing Bengbu Quanzhou 18 6 Longyan Hefei Fuzhou Bengbu New Launch 7 Shanghai Hefei Longyan Quanzhou Existing 33 1 11 Tianjin 82 By Project Type By Region % Office % Bohai Rim Villa 2 SOHO A
Slide 27: Major Contributing Projects in 2H2014
MAJOR CONTRIBUTING PROJECTS IN 2H2014 Xiamen Yuzhou Central Coast Quanzhou Yuzhou City Plaza (廈門禹洲．中央海岸) (泉州禹洲城市廣場) Located at the seafront Nearby the planning of Jimei District, right at new City Hall of Huian the transportation hub district High-rise residential High-rises low-rises units,
Slide 28: Land Banking Strategy
LAND BANKING STRATEGY Focus on the West Strait Economic Zone A new strategic focus and growth engine in China promoted by the State Council Penetrate further into the region To solidify the long-time market leadership by expanding into nearby cities Stick to our core competency Fujian To acquire lan
Slide 29: Appendix
EY Fa i th HE AR 1 BR 23] % YUZHOU PROPERTIES COMPANY LIMITED APPENDIX 28
Slide 30: Xiamen Property Market Overview
XIAMEN PROPERTY MARKET OVERVIEW Residential Land Supply and Property Transactions in Xiamen '000 sq.m. RMB/sq.m. 8,000 25,000 7,000 19,231 20,000 6,000 6,743 15,701 6,055 13,973 5,000 12,863 15,000 11 600 11,600 4,000 4,883 9,708 9,891 4,543 4,490 8,854 4,109 11,276 11,554 3,000 3,894 10,000 6,601 4
Slide 31: Fuzhou Property Market Overview
FUZHOU PROPERTY MARKET OVERVIEW Residential Land Supply and Property Transactions in Fuzhou '000 sq.m. RMB/sq.m. 12,000 20,000 17,312 16,089 18,000 10,000 14,243 10,435 16,000 13,092 14,000 8,000 11,322 7,963 12,000 6,000 7,619 10,000 6,214 7,244 5,813 5,634 8,000 4,000 4,951 3,976 4,263 6,000 2,981
Slide 32: Shanghai Property Market Overview
SHANGHAI PROPERTY MARKET OVERVIEW Residential Land Supply and Property Transactions in Shanghai '000 sq.m. RMB/sq.m. 40,000 26,393 30,000 35,000 24,177 21,728 22,278 22,502 25,000 34,809 30,000 20,000 25,000 16,039 13,971 20,000 23,421 15,000 9,655 10,556 20,128 16,914 17,806 15,000 17,941 17,776 18
Slide 33: Hefei Property Market Overview
HEFEI PROPERTY MARKET OVERVIEW Residential Land Supply and Property Transactions in Hefei '000 sq.m. RMB/sq.m. 7,557 14,000 8,000 6,986 6,259 6,351 12,664 7,000 12,000 6,007 11,371 6,000 10,000 10,684 10,765 10,256 4,635 9,403 9,531 4,100 9,619 5,000 8,000 8,900 8,439 4,000 3,154 7,754 3,684 6,000 2
Slide 34: Detailed Land Bank Table
DETAILED LAND BANK TABLE Sold and Delivered Pre-sold Saleable Held for Investment Interest in the Project Site Area Location Unit Land Cost Total GFA Total Saleable GFA Held for Sale Only Land Reserve Saleable GFA GFA Only Project (sq.m.) (RMB/sq.m.) (sq.m.) (sq.m.) (sq.m.) (sq.m.) (sq.m.) (sq.m.) (
Slide 35: Diversifying Land Bank
DIVERSIFYING LAND BANK As at 31 Dec 2013 As at 30 Jun 2014 By City By City % 5 Xiamen % 5 Xiamen 8 8 27 Fuzhou 24 Fuzhou Quanzhou Quanzhou Longyan Longyan Zhangzhou Zhangzhou 28 28 5 Shanghai 3 Shanghai Hefei Hefei Bengbu Bengbu 15 15 Tianjin 7 3 4 Tianjin 8 3 4 By Project Type By Project Type % 8 %
Slide 36: 1H2014 Key Financials
1H2014 KEY FINANCIALS For the period ended 30 Jun 1H2014 1H2013 Change (%) Revenue (RMB’000) 3,924,004 1,032,203 +280% Gross Profit (RMB’000) 1,415,512 330,559 +328% Gross Profit Margin (%) 36.1% 32.0% +4.1pp Core Profit (RMB’000) 486,053 94,987 +412% Core Profit Margin (%) 12.4% 9.2% +3.2pp EPS (RM
Slide 37: 1H2014 Key Financials
1H2014 KEY FINANCIALS (RMB’000) As at 30 Jun 2014 As at 31 Dec 2013 Change (%) Total current assets 26,804,223 21,847,267 +23% Total non-current assets 6,609,002 5,515,054 +20% Total current liabilities 13,998,881 11,483,173 +22% Total non-current liabilities 11,349,319 8,407,243 +35% Total equity 8
Slide 38: Disclaimer
DISCLAIMER These materials have been prepared by Yuzhou Properties Company Limited (the “Company”) solely for informational use during its presentation to current and/or prospective investors to provide an update on the business performance and development of the Company. No representation or warran
Yuzhou Properties Company — H1 2014 Earnings Presentation on 6ix