Yuzhou Group Holdings Co., Ltd. · HKEX:1628
Yuzhou — Yuzhou Properties Company — FY2012 Earnings Presentation
39 slides from Yuzhou's earnings presentation, Mar 27, 2013
Slide 1: 2012 Annual Results Announcement
27 March 2013 2012 Annual Results Announcement
Slide 2: 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
Slide 3: About Yuzhou Properties (01628.HK)
ABOUT YUZHOU PROPERTIES (01628. HK) A leading property developer in West Strait Economic Zone with footprints in the Top 3 largest cities in Fujian Province KEY FOCUS Successful expansion into Shanghai, Hefei, Tianjin, Longyan and Bengbu Well-established market leader in Xiamen with nearly 2.6
Slide 4: About Presenters
ABOUT PRESENTERS Founder, Mr. LAM, Lung On Chairman and Executive Director Mr. CAI, Minghui Excecutive Vice President Mr. CHIU, Yu Kang Chief Financial Officer and Steve Company Secretary 4
Slide 5: Table of Contents
TABLE OF CONTENTS I. FINANCIAL HIGHLIGHTS II. BUSINESS REVIEW III. FUTURE PERSPECTIVES IV. APPENDIX 5
Slide 6: Financial Highlights
Ae ae a wy rl T {teil Wy ; / i | 4 Om ta \y (3 Fa i Tb EAR BRS Sj" YUZHOU PROPERTIES COMPANY LIMITED Stock Code; 01628.HK FINANCIAL HIGHLIGHTS
Slide 7: Highlights of 2012 Annual Results
HIGHLIGHTS OF 2012 ANNUAL RESULTS FINANCIAL HIGHLIGHTS FOR THE 12 MONTHS ENDED 31 DECEMBER 2012 Compared with FY2011 Recognized revenue: RMB3,893.8 million (+RMB54.7 million or +1.4%) Contracted sales: RMB6,529.1 million (+RMB2,233.2 million or +52.0%) Core profit attributed to shareholders: R
Slide 8: FY2012 Key Profit & Loss Items
FY2012 KEY PROFIT&LOSS ITEMS Revenue* Gross Profit RMB million RMB million 1,777 1,884 4,266 3,839 3,894 1,543 2,223 768 2H 1,548 2H 3,073 2,939 1,112 1H 1H 2,043 1,009 766 955 336 431 FY2010 FY2011 FY2012 FY2010 FY2011 FY2012 EBITDA Core Profit RMB million RMB million 1,747 1,848 810 757 1,466 583
Slide 9: FY2012 Revenue Breakdown
FY2012 REVENUE BREAKDOWN (RMB’000) FY2012 FY2011 Change 100%=RMB3,894 million 100%=RMB3,839 million 100% Sales of 1.6% 1.4% 3,784,421 3,735,365 1% properties 98% 1.2% 1.3% Rental income 48,245 51,411 -6% 96% Property 94% 61,170 52,300 +17% 97.3% management fees 97.2% 92% Total 3,893,836 3,839,076 +1
Slide 10: Analysis on FY2012 Recognized Property Sales
ANALYSIS ON FY2012 RECOGNIZED PROPERTY SALES Recognized Property Sales* Recognized GFA & ASP RMB million GFA (sq.m.) ASP (RMB/sq.m.) 700,000 15,000 4,198 3,735 3,784 600,000 528,282 10,654 501,618 500,000 10,000 2,185 7,947 350,601 7,544 400,000 2,886 2H 3,011 300,000 1H 200,000 5,000 2,013 100,000
Slide 11: FY2012 Key Balance Sheet Items
FY2012 KEY BALANCE SHEET ITEMS Cash Position Total Debt RMB million RMB million 3,729 7,509 2,733 5,557 1,956 4,780 5,030 Long-term 4,222 3,742 Short-term 2,479 1,038 1,335 FY2010 FY2011 FY2012 FY2010 FY2011 FY2012 Total Asset Shareholders’ Equity RMB million RMB million 22,278 6,001 5,351 18,580 4,
Slide 12: FY2012 Stable Financial Position
FY2012 STABLE FINANCIAL POSITION Net Gearing Ratio Debt Profile by Maturity % % 2 500 400 421 Within 1 year 364 33 300 1 to 2 year 2 to 5 year 200 Over 5 year 100 42 64 62 17 0 50 15 2007 2008 2009 2010 2011 2012 Debt Profile by Currency Debt Profile by Type % % 37 Fixed US$ interest rate HK$ 49 Flo
Slide 13: Business Review
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Slide 14: FY2012 Contracted Sales +52% Year-on-Year
FY2012 CONTRACTED SALES +52% YEAR-ON-YEAR Contracted Contracted Contracted Contracted Sales Sales As of Total GFA ASP # Project City (FY2010 vs. FY2011vs. FY2012) (RMB mn) (%) (sq.m.) (RMB/sq.m.) RMB million 1 Yuzhou University City Phase II Xiamen 284 4% 39,994 7,112 2 Yuzhou Castle above City Xiam
Slide 15: Monthly Contracted Sales in 2011 vs. 2012
MONTHLY CONTRACTED SALES IN 2011 vs. 2012 Monthly Contracted Sales ( Jan 2011 – Dec 2012) Contracted Sales ASP (RMB million) (RMB/sq.m.) 1,000 11,069 12,000 11,132 10,406 881 882 10,611 9,907 10,407 9,830 9,637 8,972 778 9,226 9,044 9,332 10,000 800 8,983 9,839 689 8,605 9,453 8,836 8,915 644 7,891
Slide 16: FY2012 Sell-Through Rate Reached 67%
FY2012 SELL-THROUGH RATE REACHED 67% The Average Sell-through Rate is 67% % 96 79 77 77 80 73 67% 65 65 59 64 63 61 60 53 53 53 45 46 39 40 20 0 University Castle Golf Sunshine Shoreline Central Central Riverside Gushan Oriental City Plaza I Land Skyline I Skyline II Skyline III Palace Others City I
Slide 17: Snapshot of Land Bank
SNAPSHOT OF LAND BANK 6.66million sq.m. as at 31 Dec 2012* Saleable Average % of GFA No. of saleable Land Cost City (‘000 sq.m.) projects （RMB/sq.m.） GFA Bohai Rim Tianjin 451 2 1,061 7 Region Yangtze Shanghai 520 5 2,192 8 Tianjin River Delta Hefei 1,149 2 722 17 Xiamen 2,606 21 2,374 39 West Strai
Slide 18: Land Replenishment in 2012
LAND REPLENISHMENT IN 2012 Date of Total Saleable GFA Total Land Cost Average Land Cost City Project Type Methodology Acquisition (sq.m.) (RMB million ) (RMB/sq.m.) April 2012 Quanzhou Resi/Com/Retail Bidding and Auction 823,400 282 343 July 2012 Hefei Residential Bidding and Auction 288,000 505 1,7
Slide 19: Land Replenishment in 2013
LAND REPLENISHMENT IN 2013 Date of Total Saleable GFA Total Land Cost Average Land Cost City Project Type Methodology Acquisition (sq.m.) (RMB million ) (RMB/sq.m.) January 2013 Bengbu Resi/Com/Retail M&A 668,333 441 660 January 2013 Hefei Resi/Com/Retail Bidding and Auction 918,698 1,306 1,421 TOTA
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 31 December 2012, RMB (as of 31 December 2012 RMB m) (as of 31 December 2012 RMB m) m) 1 ICBC Xiamen 2,200 210 1,990 2 CCB Xiamen 1,980 1,457 523 3 BOC Xiamen 750 460 290
Slide 21: Cost Structure - Higher Profitability
COST STRUCTURE-HIGHER PROFITABILITY Cost of Properties Sold as a % of Revenue from Sale of Properties (FY2009 vs. FY2010 vs.FY2011 vs. FY2012) % 100% GP GP GP GP Margin*: Margin*: Margin*: Margin*: 80% 49% 41% 49% 40% 60% 3% 4% 3% 4% Total Total Total Total 40% Costs: 37% Costs: Costs: Costs: 30% 51
Slide 22: FY2012 Cash Flow Position
FY 2012 CASH FLOW POSITION (Unaudited) RMB Bn RMB Bn FY2011 FY2012 FY2013 (A) (A) (E) Cash on Cash on Hand Cash on Hand (at the Hand 2.73 1.96 3.73 1.96 beginning) Cash Proceeds from Contracted Sales 4.16 6.14 7.50 Rental, Management Fee & Other Income Rental, Management Fee & 0.28 Other Income 0.19
Slide 23: Future Perspectives
ba a wy rl T {teil Wy x¢ (3 Fa i Tb EAR BRS Sj" YUZHOU PROPERTIES COMPANY LIMITED Stock Code; 01628.HK FUTURE PERSPECTIVES 23
Slide 24: Macroeconomic & Market Outlook
MACROECONOMIC & MARKET OUTLOOK China’s 7.5% full-year GDP growth target is healthy and sustainable, if china’s growth coupled with the US economic recovery, will help bring a positive effect on the world economy Chinese government is focused on promoting the West Strait Economic Zone as a new gr
Slide 25: Our Strategies to Weather the Market
OUR STRATEGIES TO WEATHER THE MARKET Product and pricing flexibility Experienced management Diversify product mix to user-oriented demand, better Highly experienced management team with strong catered to current market execution capabilities and deep industry insights Flexible pricing strategy
Slide 26: FY2013: Detailed Launch Table
FY2013: DETAILED LAUNCH TABLE Planned Sales GFA for Planned Sales GFA for Planned Sales GFA for Percentage of Planned Project Name City Product Type Launch Type 1H 2013 2H 2013 FY2013 Sales GFA (%) (sq.m.) (sq.m.) (sq.m.) Apartment Existing 91 0 91 0% 1 Yuzhou University City Retail Existing 634 0 6
Slide 27: FY2013: Launch Breakdown
FY2013: LAUNCH BREAKDOWN By City By Launch Type % Tianjin % 6 Xiamen Hefei Xiamen New Fuzhou Existing 28 44 Launch Quanzhou 23 Longyan Shanghai Shanghai Hefei New Launch 5 Tianjin Longyan Quanzhou Fuzhou Existing 2 9 6 77 By Project Type By Period % Villa office % 8 4 Apartment SOHO 4 Retail 1H Car
Slide 28: Major Contributing Projects in FY2013
MAJOR CONTRIBUTING PROJECTS IN FY2013 Xiamen Yuzhou Shoreline Xiamen Yuzhou Central Coast (廈門禹洲．尊海) (廈門禹洲．中央海岸) At the Heart of Haicang Located at the seafront CBD, offering a of Jimei District, right at panoramic view of the the transportation hub sea, lake and forestry High-rise residential
Slide 29: Market Leadership in Xiamen, Fujian Province
MARKET LEADERSHIP IN XIAMEN, FUJIAN PROVINCE 3 Largest Land Bank in Xiamen (As at Dce 2012) Million sq.m. 3.00 Fuzhou 2.60 5 4 2.00 1.87 Quanzhou 1.00 0.87 0.53 0.45 Xiamen 2 1 6 0.27 0.26 0.16 0.08 0.00 Yuzhou Vanke ShimaoLongfor Mingfa SCE CR Land COLIPowerlong Source : Listed companies annual rep
Slide 30: Future Land Bank Strategy
FUTURE LAND BANK 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 lower-tier cities such as Zhangzhou , Sanming and etc. Stick
Slide 31: Appendix
Fa Stock Code; 01628.HK nap SLs Aex Fa i Tb EAR BRS ® YUZHOU PROPERTIES COMPANY LIMITED 31
Slide 32: Xiamen Property Market Overview
XIAMEN PROPERTY MARKET OVERVIEW Residential Land Supply and Property Transactions in Xiamen '000 sq.m. RMB/sq.m. 8,000 13,973 16,000 7,000 12,863 14,000 11,600 6,000 6,743 12,000 9,708 9,891 8,854 6,055 5,000 10,000 4,000 6,601 4,543 8,000 3,894 4,109 3,000 4,744 6,000 5,726 3,810 3,174 2,974 2,000
Slide 33: Fuzhou Property Market Overview
FUZHOU PROPERTY MARKET OVERVIEW Residential Land Supply and Property Transactions in Fuzhou '000 sq.m. RMB/sq.m. 12,000 14,243 16,000 13,092 11,322 14,000 10,000 10,435 12,000 8,000 10,000 7,963 7,619 7,244 6,000 8,000 6,214 5,813 5,634 6,000 4,000 3,976 5,138 5,363 2,981 4,263 4,400 4,000 2,990 3,4
Slide 34: Shanghai Property Market Overview
SHANGHAI PROPERTY MARKET OVERVIEW Residential Land Supply and Property Transactions in Shanghai '000 sq.m. RMB/sq.m. 40,000 22,278 22,502 25,000 21,728 35,000 34,809 20,000 30,000 16,039 13,971 25,000 15,000 20,000 23,421 10,556 9,655 7,767 20,128 18,999 15,000 17,941 10,000 17,776 16,914 16,151 7,9
Slide 35: Hefei Property Market Overview
HEFEI PROPERTY MARKET OVERVIEW Residential Land Supply and Property Transactions in Hefei '000 sq.m. RMB/sq.m. 14,000 6,259 6,351 7,000 6,007 12,000 6,000 4,635 11,827 10,000 4,100 10,684 5,000 10,256 9,531 9,619 9,403 8,000 3,154 8,900 4,000 2,799 2,874 8,439 7,754 6,000 3,000 6,256 5,833 4,000 5,3
Slide 36: Detailed Land Bank Table
DETAILED LAND BANK TABLE Sold and Delivered Project Site Area Location Unit Land Cost Total GFA Total Saleable GFA Pre-sold Saleable GFA Held for Sale Only Held for Investment Only Land Reserve Interest in the Project Saleable GFA (sq.m.) (RMB/sq.m.) (sq.m.) (sq.m.) (sq.m.) (sq.m.) (sq.m.) (sq.m.) (
Slide 37: Land Bank Breakdown
LAND BANK BREAKDOWN As at 31 Dec 2011 As at 31 Dec 2012 By City By City % 9 % 7 Xiamen Xiamen 8 11 Fuzhou 42 Fuzhou 39 Quanzhou Quanzhou 17 Longyan Hefei 22 Hefei Shanghai 5 Shanghai Tianjin 9 7 19 5 Tianjin By Project Type By Project Type % 11 % 10 3 4 Residential Residential Hotel & Office Hotel &
Slide 38: 2012 Key Financials
2012 KEY FINANCIALS For the period ended 31 Dec FY2012 FY2011 Change (%) Revenue (RMB’000) 3,893,836 3,839,076 +1% Gross Profit Margin (%) 40% 49% -9pp Core Profit (RMB’000) 810,426 582,993 +39% Core Profit Margin (%) 21 % 15% +6pp EPS (RMB cents/share) 0.25 0.33 -24% CEPS (RMB cents/share) 0.28 0.2
Slide 39: 2012 Key Financials
2012 KEY FINANCIALS (RMB’000) As at 31 Dec 2012 As at 31 Dec 2011 Change (%) Total current assets 17,589,771 13,723,526 +28% Total non-current assets 4,688,072 4,529,585 +3% Total current liabilities 10,617,388 7,669,484 +38% Total non-current liabilities 5,568,970 4,927,707 +13% Total equity 6,091,
Yuzhou Properties Company — FY2012 Earnings Presentation on 6ix