Yuzhou Group Holdings Co., Ltd. · HKEX:1628
Yuzhou — Yuzhou Properties Company — H1 2017 Earnings Presentation
42 slides from Yuzhou's earnings presentation, August 2017
Slide 1: Interim Results 2017 Presentation
Stock Code 股票代號：01628.HK Interim Results 2017 Presentation
Slide 2: About Presenters
About Presenters Mr. LAM Lung On， Founder, JP Chairman & Executive Director Mr. CAI Minghui Executive President Mr. HUI Chun Yip CFO & Company Secretary 2
Slide 3: Table of Content
Table of Content 1 1H2017 Results Highlights P4 2 Business Overview P6 3 Financial Highlights P14 4 Future Perspectives P22 5 Appendix P29 3
Slide 4: Leading with Locality Development
LEADING WITH LOCALITY DEVELOPMENT 4 Hangzhou·Riverside Sapphire
Slide 5: 1H2017 Results Highlights
1H2017 Results Highlights RMB100bn Strategic target in 3 years Target to reach RMB100bn Strong contracted sales contracted sales volume in 2020， performance with a CAGR of over 40.0% • 1H2017: RMB21.5bn, YoY +66.9% • Revised FY contracted sales Gradually expanding national layout “Leading with Local
Slide 6: Business Overview
BUSINESS OVERVIEW BUSINESS OVERVIEW 6 Shanghai · The Bustling Center
Slide 7: Strong Contracted Sales Hit a Record High
Strong Contracted Sales Hit a Record High Sales performance has grown dramatically over the past few years, contracted sales YoY raised substantially in 1H2017 and hit a record high Contracted ASP increased 31% YoY, due to change of product portfolio Respond proactively to market changes with
Slide 8: Contracted Sales in 1H2017
Contracted Sales in 1H2017 Interest in Contracted As of Contracted Contracted project sales total GFA ASP # Project City % (RMB mn) (%) (sq.m.) (RMB/sq.m.) 1 Yuzhou Central Coast Xiamen 100% 97 0% 5,191 18,621 2 Yuzhou Riverside City Town Xiamen 100% 2,002 9% 103,134 19,411 1H 2017 Contracted Sales
Slide 9: Monthly Contracted Sales & ASP in 2017
Monthly Contracted Sales & ASP in 2017 Monthly Contracted Sales & Contracted ASP ( Jan 2016 – Jul 2017) Contracted Sales Contracted ASP (RMB mn) (RMB/sq.m.) 25,000 5,106 5,000 20,116 16,921 20,000 17,728 18,799 4,000 3,891 3,995 15,885 16,146 3,450 15,418 14,435 14,309 15,000 13,148 13,788 2,981 2,9
Slide 10: Win-Win of Scale & Profitability
Win-Win of Scale & Profitability Revenue, Gross profit & Gross profit margin Recognized GFA & ASP RMB mn ASP GFA ‘000 sq.m. RMB ‘000/sq.m. 15,000 36.3% 35.7% 36.3% 40.0% 33.0% 2,000 10.4 11.2 12.0 13,000 32.5% 35.0% 13,672 9.01,483 10,376 9.2 10.0 11,000 30.0% 1,500 7.6 9,000 7,837 7,247 25.0% 1,107
Slide 11: Strategic Planning of Land Acquisition with Rich Land Bank Resource
Strategic Planning of Land Acquisition at Attractive Value Ahead of Time with Rich Land Bank Resource Average land Land Bank No. of cost % of land City („000 sq.m.) projects （RMB/sq.m.） bank Bohai Rim Tianjin 565 6 5,980 6% Land bank of 10.13 million sq.m. as at 31 Jul 2017 Region Shanghai 773 9 8,1
Slide 12: New Land Bank since 2017
New Land Bank since 2017 Interests Total land Average land Time of Project in project Site area Saleable cost cost acquisition City type Methodology (%) (sq.m.) GFA (sq.m.) (RMB mn) (RMB/sq.m.) Mar 2017 Tianjin Resi Bidding and Auction 60% 45,437 54,524 758 13,902 Apr 2017 Tianjin Resi Bidding and A
Slide 13: Premium Products aligned with market trends
Premium Products aligned with market trends Focus on Quality and Value Enhancement Product Mix Units Area Value-adding supporting facilities Innovative unit size providing ultimate 24% spacing experience 3 “Boutique Building 3.5”, an artistic building 7 76% technology Residential building wi
Slide 14: Financial Highlights
FINANCIAL HIGHLIGHTS 14 Shanghai · Yuzhou Noble Mansion
Slide 15: Highlights of 1H2017 Results
Highlights of 1H2017 Results RMB bn 1H2017 1H2016 Change Contracted Sales 21.49 12.87 +66.93% Recognized Revenue 7.25 4.14 +74.90% Gross Margin 32.95% 32.47% +0.48pp Profit to owners of 0.79 0.69 +13.31% parent Core Profit to owners 0.92 0.66 +39.97% of parent RMB bn 2017 2016 Change As at 30 Jun As
Slide 16: Highlights of 1H2017 Results (Cont)
Highlights of 1H2017 Results (Cont) Increasingly diversified revenue streams, with rising contributions from recurring rental income and property management 100% = RMB 100% = RMB 7,247 mn 4,143 mn (RMB mn) 1H2017 1H2016 Change 0.1% 0.1% 0.1% 0.2% Sales of property 7,047.38 4,018.66 +75.4% 1.6% 1.5%
Slide 17: Analysis on Recognized Property Sales
Analysis on Recognized Property Sales Recognized property sales* Recognized GFA & ASP RMB mn GFA ASP ‘000 sq.m. RMB ‘000/sq.m. 16,000 1,600 1,483 12.0 10.4 11.2 14,000 1,400 13,346 9.2 10.0 1,200 1,107 12,000 9.0 8.0 10,158 1,000 7.6 10,000 800 736 6.0 7,681 9,327 7,047 2H 629 8,000 529 6,740 600 IH
Slide 18: Strong Balance Sheet
Strong Balance Sheet Cash position Total debt RMB mn RMB mn 25,000 30,000 27,826 25,787 19,604 25,000 20,000 17,418 20,083 20,000 15,000 15,404 11,949 22,439 15,000 20,979 9,785 10,000 16,096 10,000 11,599 5,000 5,000 3,805 3,987 4,808 5,387 - - 2014 2015 2016 2017 2014 2015 2016 2017 As at 31 Dec A
Slide 19: Strong Balance Sheet (Cont)
Strong Balance Sheet (Cont) Net debt (a) / EBITDA Cash / Short term debt (b) X 2.5 X RMB X bn 2.1 2.0 1.9 17 1.6 1.5 12 1.3 19.6 17.4 7 1.0 11.9 9.8 2 0.5 (3.80) (4.00) (4.80) -3 (5.40) - 2014 2015 2016 30-Jun-17 FY2014 FY2015 FY2016 1H2017 As at 31 Dec 12 Months Before -8 Short-term debt Cash Net d
Slide 20: Stable Financial Position & Diversified Financing Channels
Stable Financial Position & Diversified Financing Channels Sustained a manageable net gearing ratio, with successful financing measures that further reduced the average funding cost Moody‟s, S&P, Fitch remained our ratings of B1, B+, BB- respectively, S&P and Moody‟s upgraded outlook to Positive
Slide 21: 1H2017 Cash Position
1H2017 Cash Position （RMB bn） 1H2017 FY2017 Cash Inflow Cash Proceeds from Contracted Sales & other Incomes +14.56 +28.70 Cash Outflow Paid Land Premium -7.88 -17.00 Construction Cost Capex -2.89 -7.00 Other Expenses – Interest, Tax, Dividend and Others -3.65 -6.60 21
Slide 22: Future Perspectives
FUTURE PERSPECTIVES FUTURE PERSPECTIVES Shanghai · Yuzhou Country
Slide 23: Market Outlook
Market Outlook Policies Trends Accelerated Industry • It is expected the current market Consolidation condition of strict regulatory policies • Competition of property of "purchase, loan, price, sales and industry rapidly increasing online registration restriction" will • Market concentration furthe
Slide 24: Strategies for 2H2017 & 2018
Strategies for 2H2017 & 2018 Operation Strategy Financial Strategy Strategic layout with locality development Explore various financing channels to obtain lower Achieve a stable and rapid development with quality funding cost growth Maintain liquidity and keep cash to seize market Strive f
Slide 25: Premium & Adequate Sellable Resources
Premium & Adequate Sellable Resources Confident to achieve FY2017 contracted sales target of RMB40bn The total value of goods in 2H2017 is 2H2017 launch details by value of RMB35.8bn goods by city Tianjin Huizhou Bengbu 7% 2% Xiamen 2H New 1% 13% Projects 49% Hefei Fuzhou 16% 12% 76% Quanzhou 3% S
Slide 26: Key Projects in 2H2017
Key Projects in 2H2017 Hangzhou Yuzhou·Riverside Sapphire Shanghai Yuzhou Noble Mansion (杭州禹洲·濱之江) (上海禹洲·雍賢府) • Located in Zhijiang of Hangzhou • Located in the south center of West Lake District and being the Former Beach and connected by Zhijiang bridge and equipped with the largest wild Zizhi tun
Slide 27: Key Projects in 2H2017 (Cont)
Key Projects in 2H2017 (Cont) Hefei Yuzhou·Moon Lake Mansion Hefei Yuzhou Central Town II (合肥禹洲·平湖秋月) (合肥禹洲·中央城 二期) • Located in the northwest corner of • Located at the Intersection Kaiqiao Road and Tianshi Road between Xinbengbu Road and of Shushan District. The project Wuliu Road in Xinzhan Distr
Slide 28: Strengthen Double-engine Advantage
Strengthen Double-engine Advantage Yuzhou Camelon Hotel Xiamen Yuzhou Plaza Shanghai Yuzhou Plaza Yuzhou World Trade Center Apartment Yuzhou Central Coast Yuzhou Commercial Plaza Yuzhou Central Plaza Xinglin Golden Street 28
Slide 29: Appendix
APPENDIX APPENDIX Nanjing · Moon Riverside
Slide 30: Xiamen Real Estate Market Overview
Xiamen Real Estate Market Overview ‘000 sq.m. RMB / sq.m. Residential Land Supply and Property Transactions – Xiamen 8,000 40,000 6,743 34,229 7,000 35,000 6,055 28,769 6,000 30,000 4,883 5,000 4,543 4,490 25,000 4,109 19,848 20,535 25,060 3,894 22,651 4,000 15,701 3,516 20,000 3,159 13,973 3,144 3,
Slide 31: Fuzhou Real Estate Market Overview
Fuzhou Real Estate Market Overview ‘000 sq.m. Residential Land Supply and Property Transactions – Fuzhou RMB / sq.m. 8,000 17,664 20,000 16,372 16,552 16,410 7,000 14,910 17,221 14,231 14,188 6,000 15,000 11,942 5,000 4,261 12,741 4,000 8,164 3,623 10,000 7,590 7,557 2,905 3,023 2,994 2,524 2,764 3,
Slide 32: Shanghai Real Estate Market Overview
Shanghai Real Estate Market Overview ‘000 sq.m. Residential Land Supply and Property Transactions – Shanghai RMB / sq.m. 20,000 60,000 16,914 47,871 14,973 50,000 15,000 14,031 13,917 12,800 38,283 11,440 11,460 40,000 32,001 9,377 9,704 9,713 10,000 22,278 22,502 24,253 30,000 7,287 6,517 27,212 20
Slide 33: Hefei Real Estate Market Overview
Hefei Real Estate Market Overview ‘000 sq.m. Residential Land Supply and Property Transactions – Hefei RMB / sq.m. 25,000 12,703 14,000 21,566 10,944 12,000 20,000 18,847 17,387 9,269 10,000 7,672 13,884 15,000 12,799 8,775 8,000 6,259 6,351 12,319 10,580 6,761 9,403 9,240 9,147 6,000 10,000 8,439 6
Slide 34: Nanjing Real Estate Market Overview
Nanjing Real Estate Market Overview ‘000 sq.m. Residential Land Supply and Property Transactions – Nanjing RMB / sq.m. 20,000 25,000 16,454 20,847 15,570 18,817 20,000 15,000 12,791 13,116 15,140 17,690 12,787 15,971 13,804 15,000 12,252 9,841 10,775 9,417 10,929 10,001 8,615 9,126 10,000 7,621 10,0
Slide 35: Hangzhou Real Estate Market Overview
Hangzhou Real Estate Market Overview ‘000 sq.m. Residential Land Supply and Property Transactions – Hangzhou 18,673 RMB / sq.m. 20,000 25,000 21,120 17,313 20,000 15,000 13,529 16,663 15,484 12,867 18,637 14,581 10,118 15,000 8,663 8,903 15,878 13,587 10,000 8,197 6,903 7,167 6,746 10,000 8,402 5,20
Slide 36: Suzhou Real Estate Market Overview
Suzhou Real Estate Market Overview ‘000 sq.m. Residential Land Supply and Property Transactions – Suzhou RMB / sq.m. 14,000 25,000 11,763 20,502 12,000 18,791 20,000 10,000 9,029 8,089 16,234 7,472 7,460 7,551 7,701 13,163 14,863 15,000 8,000 7,002 6,411 6,000 5,322 11,226 11,888 12,116 10,000 8,879
Slide 37: Wuhan Real Estate Market Overview
Wuhan Real Estate Market Overview ‘000 sq.m. Residential Land Supply and Property Transactions – Wuhan RMB / sq.m. 50,000 12,000 44,028 9,991 9,430 40,000 10,000 7,796 7,152 7,093 8,000 8,812 28,812 30,000 24,864 23,537 21,511 5,771 6,000 16,255 16,440 17,993 5,060 20,000 14,807 4,000 10,856 3,267 1
Slide 38: Tianjin Real Estate Market Overview
Tianjin Real Estate Market Overview ‘000 sq.m. Residential Land Supply and Property Transactions – Tianjin23,321 RMB / sq.m. 25,000 20,000 15,936 20,000 13,458 16,806 15,000 14,966 14,207 15,000 10,061 10,218 10,553 13,561 11,819 12,596 11,430 11,546 10,000 8,888 9,566 8,796 10,000 8,673 7,261 5,766
Slide 39: 1H2017 Key Financials
1H2017 Key Financials As at 30 June 2017 2016 Change Revenue (RMB‟000) 7,246,747 4,143,316 +74.90% Gross Profit (RMB‟000) 2,387,975 1,345,229 +77.51% Gross Profit Margin (%) 32.95% 32.47% +0.48pp Core Profit to owners of parent 919,831 657,152 +39.97% (RMB‟000) Core Profit Margin (%) 12.69% 15.86% -
Slide 40: 1H2017 Key Financials (Cont)
1H2017 Key Financials (Cont) (RMB’000) As at 30 Jun 2017 As at 31 Dec 2016 Change Total current assets 59,016,381 51,992,255 +13.51% Total non-current assets 18,045,389 16,868,257 +6.98% Total current liabilities 42,415,674 35,326,669 +20.07% Total non-current 23,321,874 21,861,107 +6.68% liabilitie
Slide 41: 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 42: Q & A Thank You
Q&A THANK YOU！ Group Wechat Group Weibo 42
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