China Overseas Land & Investment Limited · HKEX:688
China Overseas Land & Investment — H1 2006 Earnings Presentation
31 slides from China Overseas Land & Investment's earnings presentation, August 2006
Slide 1: China Overseas Land & Investment Ltd. Investor Presentation August 2006
China Overseas Land & Investment Ltd. Investor Presentation August 2006 (i Raiowtc! S=4 CHINA OVERSEAS LAND & INVESTMENT LTD.
Slide 2: Content
CONTENT > 2006 Interim Results > Review of Business > Future Outlook ()eikecheckack aga ae! 1 S=4 CHINA OVERSEAS LAND & INVESTMENT LTD.
Slide 3: 2006 Interim Results
2006 Interim Results 24 CHINA OVERSEAS LAND & INVESTMENT LTD.
Slide 4: 2006 Interim Key Financials
2006 Interim Key Financials } 30/06/2006] 30/06/2005 Change Turnover HK$ Million 3,600" 2,730 432% Gross profit HKS Million 1,128 860 +31% Net Profit HKS Million 852 576 +48% Shareholders’ Equity | #5 Million 11,861 10,140 +17% Gross Margin % 31 +0% Net Profit Margin % 21 +14% EPS HK cents 8.97 +48%
Slide 5: Segment Turnover and Results
Segment Turnover and Results Segment Turnover (HK$ mm) Segment Results (HK$ mm) 2006.06 | 2005.06 | Change | 2006.06} 2005.06 Property 3,099.2 | 2,344.4 | +32% Property 71.2 | 571.7 | +35% | development development Property 61.3 67.2 -9% Property 57.2 178.1 -68% Investment Investment Infrastructure}
Slide 6: Property Turnover and Segment Profit by regions
Property Turnover and Segment Profit by regions oR a sme oo nc a man ED] Property Turnover by Regions Property Profit by Regions HK & Macau HK & Macau FP BB 9k ot BAP CHINA OVERSEAS LAND & INVESTMENT LTD. @
Slide 7: Turnover and Operating Profit by Segment
Turnover and Operating Profit by Segment ee a a ee ee ee eS ae Turnover Breakdown (HK$ mm) Profit Breakdown (HK$ mm) 427, 11. 86% 76, 8.32% 9, 0.99% Infrastructure 12, 0.33% Infrastructure 61, 1.69% Property Inv. 57, 6.24% Property Inv. () iE ako ae CHINA OVERSEAS LAND & INVESTMENT LTD.
Slide 8: PRC Property Turnover and Profit By Regions
PRC Property Turnover and Profit By Regions Ee a ane ee ce ie nee ed Property Turnover Operating Profit 10. 55% “ian & Pearl Xi’an & Change arn Chang | Pearl Changchun) River oa rae Region 20. 40% ss Chengdu egion 26. 90% heuet um Yangtze River Region Baohai Rim 21. 45% Yangtz Baohai Rim 21. 97% WE
Slide 9: PRC Property Development Margin
PRC Property Development Margin 40% 5 35.90% sess 30% F 26.43% 20% }416.54% 10% 0% 41H2003 4H 2004 4H 2005 41H 2006 © WH BRERA RA CHINA OVERSEAS LAND & INVESTMENT LTD.
Slide 10: Net Gearing Ratios
Net Gearing Ratios 39.21% 21 . 2003.12.31 2004. 12. 31 2005. 12. 31 2006. 06. 30 2006. 08.15 *Taking into account the full exercise of bonus warrants by its majority shareholder, China Overseas Holdings Ltd., in July 2006, we estimate as of the 15‘ August, the Net Gearing Ratio for COLI dropped to 1
Slide 11: Review of Business
Review of Business @ i Be oh Ht BA CHINA OVERSEAS LAND & INVESTMENT LTD.
Slide 12: Projects Completed for Occupation in 1H of 2006
Projects Completed for Occupation in 1H of 2006 eae RR ta ee Na ie TRS | City Project Total GFA Sold | @ Six projects were completed San) (Sq.m.) for occupation in first half of Top View North Tower] 11,866 11,866 2006. G uangzhou StarCrest Phase 1 147,645 147,581 = Total Gross Floor Area (GFA) comp
Slide 13: Property Sales Growth Trend
Property Sales Growth T rend 800 300, GFA: 000 Sq.m. @ The total Gross Floor Area 490 (“GFA”) sold was 797,628 Sq.m., representing an increase of 54% over the corresponding period of 2005. @ Property sales were HK$ 1H 2003 1H 2004 1H 2005 1H 2006 7.2billion, representing an 80, soo a 79 increase of
Slide 14: Contract Sales and GFA Sqm. Sold by Regions
Contract Sales and GFA Sqm. Sold by Regions HK & Others Macau Others Pearl River Pear . . Pearl y Region River F Region () palhclaketedadekel 13 S24 CHINA OVERSEAS LAND & INVESTMENT LTD.
Slide 15: Stock Carry-Forward As of June 30, 2006
14 Stock Carry-Forward As of June 30, 2006 @ Stock c/f 31/12/2005 273 N/A 172.6 100.4 Jan —June/2006 N/A 478 438.8 39.2 Total 139.6 Ph Be ht BARA CHINA OVERSEAS LAND & INVESTMENT LTD.
Slide 16: Property Average Selling Price Trend (RMB/Sq.m.)
Property Average Selling Price Trend (RMB/Sq.m.) 9722 e000 | 279 2001 2002 2003 2004 2005 1H 2006 @ Ph Be ok os ARRAS 4 CHINA OVERSEAS LAND & INVESTMENT LTD. 15
Slide 17: Bonus Warrant-Optimize the Capital Structure
Bonus Warrant-Optimize the Capital Structure ASE te: ae eR pe @ On 25 May 2006, the Board proposed that Bonus Warrants be granted to the existing shareholders to subscribe a total of 804,344,451 shares for a consideration of HK$ 4.5 per share. m@ At the extraordinary shareholders’ meeting held on 12
Slide 18: | (:) pikeheckarkcake kala!
| (:) pikeheckarkcake kala! i | CHINA OVERSEAS LAND & INVESTMENT ITD.
Slide 19: New Land Acquired in 1H of 2006
New Land Acquired in 1H of 2006 esa RGR on ec Tn aa pera er aimee Suzhou Lot No.7 100% Residential 311.61 991.10 3180 Suzhou Suzhou Lot No. 8 100% Residential | 176.94 336.68 1902 Fe broee Vane] — 100% [Residential | 446.62 556.20 1245 ; Peep ane Xi Jie 100% [Residential | 680.87 1,637.00 2404 Nenu
Slide 20: Total Current Landbank
Total Current Landbank Shenzhen 1,025.83 8.18 The Pearl Guangzhou 1,795.17 14.31 River Rigion Zhongshan 332.28 2.65 Foshan 787.36 6.28 Shanghai 991.08 7.90 The Yangtze Suzhou 1,093.10 8.71 River Region Nanjing 899.96 TAT Ningbo 336.06 2.68 The Baohai Rim Beijing 1,813.84 14.46 Chengdu 1,891.07 15.07
Slide 21: Landbank Diversification by Cities
20 Landbank Diversification by Cities HK& Macau 1. 77% 8. 18% Shenzhen Xi’an 6.41% Changchun 4, 40% 14. 31% Guangzhou Chengdu 15. 07% BEE 2. 58 Zh00ghan 8 6.28% Foshan Beijing 14. 46% 7.90% Shanghai 2. 68% 7.17% 8.71% Suzhou Ningbo Nanjing ® oP Be oh ot BAP CHINA OVERSEAS LAND & INVESTMENT LTD.
Slide 22: Average Land Cost Trend (RMB/Sq.m.)
Average Land Cost Trend (RMB/ Sq.m.) 2274* 2000 + 1500 - 2001 2002 2003 2004 2005 1H 2006 * Exclude Beijing Yu River Project (_) THR RARAD 21 REA CHINA OVERSEAS LAND & INVESTMENT LTD.
Slide 23: Contract Sales Estimate Update
Contract Sales Estimate Update 260 2001 2002 2003 2004 2005 2006E 2007E GFA: ’0,000 m? WSales: HKD’00 million Big ket RAMA 22 CHINA OVERSEAS LAND & INVESTMENT LTD.
Slide 24: Property Completion Estimate Update
Property Completion Estimate Update ii anager co Ia we RIE RTS aaa SE 300 3007 GFA:0,000m? 2005 2006E 2007E *Completion of Bay Line Phase 1 project in Shanghai will be delayed to the 1H of 2007 due to new changes to Pujiang district plan. ® TE ket BARS CHINA OVERSEAS LAND & INVESTMENT LID. 23
Slide 25: Updated: Projects To Be Completed in 2006
24 Updated: Projects To Be Completed in 2006 A (0.000 Sam by INA) O Shenzhen 1 The Crescent 10.13 2 One Honey Lake Phase || 6.55 3 Greenery Heights Phase 1 Area East 3.03 4 Royal Green Phase 1 0.85 Beijing 5 St. Andrews Phase || 10.66 6 Champion Court-Office 2.46 Guangzhou 7 Glorious Plaza 3.23 8 To
Slide 26: Major Macro-control Measures Announced in PRC Property Sector
Major Macro-control Measures Announced in PRC Property Sector 25 Measures Expected Impact Adjust property supply structure: (1) More supply of smaller flats in the medium to medium low (1) 70%:90sq.m. rule: Local governments are required to approve 70% market segment to help stablize housing prices;
Slide 27: Macro-controls: Opportunities and Challenges
Macro-controls: Opportunities and Challenges The overall increase of housing prices for January- July 2006 was at 5.5%-5.8%; @The macro-controls in property sector began to show results indicating the chance for further new measures is expected to be low; @We still maintain our estimate of 5%-8% ann
Slide 28: Strategy and Tactics
Strategy and Tactics (Re era ea ents RUE au ERE @ Further implement the national expansion strategy by entering into a few selective new cities. ™ Seek new market opportunities to add high-quality land backed by strong cash flow and financial position. H Dispose non-core, non-property assets to make
Slide 29: A True National Property Developer
28 A True National Property Develo er Changchun # of projects: 4 GFA (mm?): 0.55 Beijing # of projects: 8 Chengdu # of projects: 4 GFA (mm2): 1.89 Foshan # of projects: 1 GFA (mm?): 0.79 Zhongshan # of projects: 1 GFA (mm?): 0.33, C/ Note: The no. of projects is calculated by parcels of land acquire
Slide 30: Thank You !
Thank You ! 1) WH Re RAMA CHINA OVERSEAS LAND & INVESTMENT LTD.
Slide 31: 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 ar
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