Yuzhou Group Holdings Co., Ltd. · HKEX:1628
Yuzhou — Yuzhou Properties Company — FY2018 Earnings Presentation
56 slides from Yuzhou's earnings presentation, March 2019
Slide 1: Yuzhou Properties Company Limited - March 2019
Fa A Sih EAR PRS YUZHOU PROPERTIES COMPANY LIMITED incorporated in the Cayman Islands with limited liability H°OI@ EEA MN AVA IAA] | Stock Code MtHHEME | 01628.HK BRAT Riz 2 Piotenoietoeomo rons! TTT LLL afl hrm <a q March 2019
Slide 2: The Group's name originates from a ruler in ancient China
大禹治水，荒漠成洲 THE GROUP'S NAME ORIGINATES FROM A RULER IN ANCIENT CHINA CALLED YU THE GREAT. 禹，源自「大禹治水」 大禹治水，千古名垂。這是自強不息、堅韌不拔的奮鬥精神，是革故鼎新、勇於挑戰的創 新精神，是「三過家門而不入」的奉獻精神，是熟知人性、順勢而為的人文精神，融入炎黃子 孫的血脈，成為中華民族精神的源頭。 禹洲始終秉承「大禹治水，荒漠成洲」的拓荒精神，始終以開拓者和建設者的姿態站在未 來城市座標上，用誠心和誠信奉獻誠品，詮釋城市生活的理想和價值。
Slide 3: Speakers
Speakers Deputy to the National People’s Congress Mr. LAM Lung On, J.P. Founder & Chairman Mr. XIA Li Mr. XU Ke Mr. Jacky WONG Vice President Executive President CFO & Company Secretary 3
Slide 4: Mr. Lam Lung On, Founder & Chairman
Founder Deputy to the National People’s Congress Mr. LAM Lung On, J.P. Founder & Chairman Vice Chairman of the All-China General Chamber of Industry and Commerce (Member of the All-China Federation of Industry and Commerce) President of the Hong Kong Chinese Importers’ & Exporters’ Association
Slide 5: Development Milestone
Development Milestone Cultivating in Regions Leading the Market 2015 2013 2017 Ranked among the The national land Top 36 of real Based in West Yuzhou was introduced to Strait Zone, 2011 bank amounted to estate enterprises “Hang Seng SCHK High over 9.2 million in China, Yuzhou Ranked among Dividend L
Slide 6: Nationwide Layout
Nationwide Layout 6 Metropolitan Areas 10 years of Listing 25 years Since Founded 28 Cities 36%+ Dividend Payout Ratio 80%+ In 1st and 2nd tier cities 120+ Projects 100 bn+ Total Assets 300 bn+ Saleable Resources Yangtze River Delta Region：Shanghai, Hefei, Hangzhou, Nanjing, Suzhou, Bengbu, Yangzhou
Slide 7: Business Overview
Business Overview A journey of RMB100bn in contracted sales begins Wuhan ·Langham City Land 7
Slide 8: Strong Contracted Sales Renew the Record
Strong Contracted Sales Renew the Record Sales performance has been on the fast track over the past few years. Contracted sales increased to RMB56bn in 2018, 2016-2018 CAGR is 55.4% Accelerated sales and actively extended in the first- and second-tier cities and their satellite cities with conve
Slide 9: Contracted Sales in 2018
Contracted Sales in 2018 In 2018, Yuzhou achieved a total contracted sales of approximately RMB56,003 mn; contracted GFA was 3,702,703 sq.m.; and the contracted ASP was RMB15,125/sq.m. 2018 Contracted Sales by City Interest Contracted As of Total Contracted Contracted Project in Project Sales GFA
Slide 10: Monthly Contracted Sales & ASP in FY2018
Monthly Contracted Sales & ASP in FY2018 Monthly Contracted Sales & Contracted ASP Contracted Sales (Jan 2017 – Dec 2018) Contracted ASP （RMB mn） (RMB/sq.m.) 25,000 10,301 10,000 20,116 19,667 17,728 18,799 20,000 18,390 20,000 17,203 16,921 8,000 16,828 19,626 16,146 15,566 15,857 13,314 14,832 17,
Slide 11: Win-Win of Scale & Profitability
Win-Win of Scale & Profitability Revenue, Gross profit & Gross profit margin Recognized GFA & ASP GFA RMB mn ASP ‘000 sq.m. RMB ‘000/sq,m, 36.3% 35.4% 40.0% 15,182 28,000 1,600 14,118 16,000 24,306 24,000 21,701 30.7% 30.0% 20,000 12,000 16,000 13,672 9,000 20.0% 8,000 12,000 1,536 7,683 7,467 1,483
Slide 12: Strategic Planning of Land Acquisition at Attractive Value
Strategic Planning of Land Acquisition at Attractive Value As of 31 Dec 2018, cultivating 6 metropolitan areas with a footprint in 28 cities nationwide The land bank was approximately 17.38 mn sq.m. with the average land cost of RMB4,812 By sellable resources, 1st & 2nd tier cities account for
Slide 13: New Landbank in FY2018
New Landbank in FY2018 Att. Total land Att. land Avg. land Project Site area GFA 2018 Land Acquisition Time City Methodology % GFA cost cost cost type (sq.m.) (sq.m.) (sq.m.) (RMB mn) (RMB mn) (RMB/sq.m.) Strategy* Bidding & Jan Suzhou Resi Bidding 20% 42,481 76,466 15,293 1,032 206 13,500 Auction,
Slide 14: New Landbank in FY2019
New Landbank in FY2019 Avg. Saleable GFA* Att. land land Site area Total Bohai Project Methodology % cost cost Time City (sq.m.) Att. GFA land cost Rim, 18% type GFA (sq.m.) (RMB (RMB/ Yangtze (sq.m.) (RMB mn) mn) sq.m.) River Delta, 33% Bay Jan Qingdao Resi/Com Bidding 100% 97,953 156,724 156,724 7
Slide 15: Establishing Three Popular Product Lines with Superior Craftsmanship
Establishing Three Popular Product Lines with Superior Craftsmanship 3 Popular Product Lines with priority on safety and quality Elaborative management in 4 dimensions：schematic design, experience area design, construction drawing design and special design Honor Langham Royale Target First-time
Slide 16: Investment Properties - Vigorous Business Expansion
Investment Properties – Vigorous Business Expansion Operation Preparation Shenyang： Yangzhou： Yuzhou Plaza Yuzhou Commercial Plaza Nanjing： Yuzhou Commercial Plaza Shanghai： Suzhou： Yuzhou Commercial Plaza Wangting Town Project Yuzhou Plaza Research Building Yuzhou Jinqiao International Yuzhou Land
Slide 17: Hotel Operations - Steady Development & Growth
Hotel Operations – Steady Development & Growth Focusing on the development of serviced apartments as well as medium-to-high-end business hotels in order to establish premium hotel brands Developing resort hotels while improving the existing hotel portfolio to strengthen the brand’s core competit
Slide 18: Property Management - Rapidly Development
Property Management – Rapidly Development Upholding the philosophy of “Customer First, Service Oriented” Formulating the certification system of “Yu Housekeeper” of which the owners can have the intimate service of the housekeeper at any time 「Yu Housekeeper」Model Housekeeper Network-based Manag
Slide 19: Introduce OCT (Asia) as Second Largest Shareholder
Introduce OCT (Asia) as Second Largest Shareholder & Launch Strategic Alliance State-owned enterprise under direct management of the Mr. Lam Lung On (Chairman, CEO, Executive Director) SASAC Ms. Kwok Ying Lan (Vice Chairman, Executive Director) Other public shareholders Mr. Lin Conghui (Executive Di
Slide 20: Expanding Branding Advantages
Expanding Branding Advantages Headquarters-level Key Bank Client of CCB & ICB Multiple Index Signed the Strategic Partnership Agreement with CMBC • Headquarter-level key clients serve as the core client base of bank’s differentiated services with priority being provided to them in terms of service e
Slide 21: Building Cities with Heart, Building Homes with Love
Building Cities with Heart Building Homes with Love Practice a sustainable development business model and build cities that are human and environmentally friendly Create quality life, working and leisure space for people which are up to benchmark standard My Home in Green Yuzhou Yuzhou Charity F
Slide 22: Financial Highlights
Financial Highlights Healthy and Stable Chongqing ·Luxury Mansion 22
Slide 23: Highlights of FY2018 Results
Highlights of FY2018 Results （RMB bn） 2018 2017 Changes Contracted sales 56.00 40.31 +39% Recognized revenue 24.31 21.70 +12% Gross profit margin 30.72% 35.40% -4.68pp Profit for the year 3.73 3.13 +19% Core profit 3.42 2.92 +17% （RMB bn） 2018 2017 Changes Total Equity 21.43 17.44 +23% Cash on hand
Slide 24: Highlights of FY2018 Results (cont'd)
Highlights of FY2018 Results（cont’d） Increasingly diversified revenue streams, with rising contributions from recurring rental income and property management fee 100% = RMB 100% = RMB 24,306 mn 21,701 mn 0.1% 0.1% (RMB mn） 2018 2017 Changes 1.7% 1.5% Sales of 0.6% 23,626 21,213 +11% 1.0% propertie
Slide 25: Analysis of Recognized Property Sales
Analysis of Recognized Property Sales Recognized Property Sales* Recognized GFA & ASP RMB mn GFA ‘000 sq.m. ASP 23,626 RMB ‘000 / sq.m. 25,000 21,213 15,182 1,600 14,118 16,000 20,000 14,653 15,000 13,345 9,000 12,000 14,166 2H 10,000 1H 8,000 9,327 1,536 5,000 8,973 1,503 4,000 7,047 1,483 4,019 -
Slide 26: Share Development Results with Shareholders & Investors
Share Development Results with Shareholders & Investors Yuzhou has always been committed to sharing the results brought by good performance with shareholders and investors. Our dividend payout ratio, net profit margin and core profit margin have always been at the leading level in the industry Div
Slide 27: Strong Balance Sheet
Strong Balance Sheet Cash Position Total Debt RMB mn RMB mn 35,000 50,000 43,632 29,279 30,000 40,000 25,000 27,202 20,000 17,418 17,498 30,000 27,567 25,787 15,000 20,000 10,863 10,000 20,979 5,000 10,000 16,704 16,430 - FY2016 FY2017 FY2018 4,808 - FY2016 FY2017 FY2018 Short-term debt Long-term de
Slide 28: Strong Balance Sheet (cont'd)
Strong Balance Sheet (cont’d) Net Debt(a) / EBITDA Net Debt(a) / Total Equity X % 2.5 100% X 2.0 80% 1.8 72% 67% 1.6 1.5 60% 58% 1.3 1.0 40% 0.5 20% - 0% FY2016 FY2017 FY2018 FY2016 FY2017 FY2018 (a) Net debt = Total debt–Total cash 28
Slide 29: Stable Financial Position & Diversified Financing Channels
Stable Financial Position & Diversified Financing Channels Sustained a manageable net gearing ratio, with successful financing measures that effectively control the average funding cost Lianhe Global assigned our ratings at BB, Moody’s, S&P and Fitch retained Ba3, BB- and BB- respectively, outlo
Slide 30: FY2018 Cash Position
FY2018 Cash Position （RMB bn） FY2018 FY2019E Cash inflow Cash proceeds from contracted sales and other income +35.3 +46.8 Cash outflow Land premium paid -15.4 -22.8 Construction cost capex -12.1 -13.7 Other expenses – Interest, tax, dividends and others -8.8 -10.3 30
Slide 31: Investor Relations
Investor Relations Xuzhou ·Lakeside Langham 31
Slide 32: Investor Relations Always on the Way
Investor Relations Always on the Way We are committed to building an efficient communication bridge with the capital market. We listen attentively to various suggestions of the capital market in an active, sincere and modest manner, and strive to maintain high transparency and excellent corporate
Slide 33: Future Outlook
Future Outlook Follow the Trend and Dream to A New Stage Fuzhou ·Royale Riverside Mansion 33
Slide 34: Market Outlook
Market Outlook Vast Promising Market Keynote Remains Stable From “Restriction” to “Stable”; adopt The growth of the urban permanent different policies in different cities as residents, the increase in housing appropriate to their local conditions to area per capita and the steady optimize short-
Slide 35: Strategies for 2019
Strategies for 2019 Improve Operation Management with Overall Reform Build a performance-oriented, high effective incentive system to boost morale of employees; build 01 a clear management mechanism to replace the rule of people; improve the cooperation among different departments by establishing a
Slide 36: High Quality & Abundant Saleable Resource
High Quality & Abundant Saleable Resource 2019 Total Saleable Resource Amounts to RMB110.3 billion 2019 Saleable Resource by Region Northwest ， 1% 1H Southwest， Central 4% Region，11% 40% New Projects Bay area，4% Yangtze River 74% Delta Region，50% West Strait Economic 2H Zone，20% 60% Bohai Rim Region
Slide 37: Key Projects in 2019
Key Projects in 2019 Wuhan Yuzhou·Langham City Land Suzhou Yuzhou Honor Hill (武漢禹洲·朗廷元著) (蘇州禹洲·嘉譽山) • Located at the intersection of • Located at the junction of Jiangcheng avenue and Taizi Zhenshan road and Zhenbei Hubei road in Wuhan Economic road of Tongan town, Suzhou and Technological Developme
Slide 38: Key Projects in 2019 (Cont'd)
Key Projects in 2019 (Cont’d) Fuzhou Yuzhou Langham Lake Zhangzhou Yuzhou Castle above City (福州禹洲·朗廷灣) (漳州禹洲·城上城) • Located in the core of Fuzhou High-tech zone. There are 34 • Located in the south of listed enterprises and 184 Zhanghua Road, Zhangzhou, high-tech enterprises in the with convenient t
Slide 39: Appendix
Fuzhou ·Tianyue Bay Appendix 39
Slide 40: Xiamen Real Estate Market Overview
Xiamen Real Estate Market Overview '000 sq.m. Residential Land Supply and Property Transactions – Xiamen RMB/sq.m. 5,000 4,777 4,490 34,375 36,600 37,000 28,769 4,000 3,516 24,567 3,144 27,000 26,518 2,622 19,848 20,535 25,658 3,000 2,731 2,246 15,701 13,482 2,131 17,000 2,000 11,532 1,655 1,248 1,4
Slide 41: Fuzhou Real Estate Market Overview
Fuzhou Real Estate Market Overview '000 sq.m. Residential Land Supply and Property Transactions – Fuzhou RMB/sq.m. 6,000 35,000 4,948 5,085 5,000 4,385 30,000 3,850 3,791 25,292 25,000 4,000 2,319 3,135 2,764 3,023 2,652 2,524 2,410 21,636 20,000 3,000 1,875 2,594 2,446 16,372 16,552 16,879 15,000 1
Slide 42: Shanghai Real Estate Market Overview
Shanghai Real Estate Market Overview '000 sq.m. Residential Land Supply and Property Transactions – Shanghai RMB/sq.m. 18,000 60,000 14,989 14,951 53,432 16,000 14,328 13,878 47,909 50,000 14,000 12,582 10,416 11,687 11,600 12,000 9,827 10,219 40,000 9,585 38,331 10,000 9,141 7,110 32,112 30,000 8,0
Slide 43: 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 15,041 16,000 21,566 12,666 11,199 20,000 18,732 16,620 8,500 11,000 7,672 13,837 8,839 15,000 6,854 6,478 12,247 12,682 11,800 6,581 5,955 10,805 6,000 6,735 9,240 9,147 10,487 10
Slide 44: Nanjing Real Estate Market Overview
Nanjing Real Estate Market Overview Residential Land Supply and Property Transactions – Nanjing RMB/sq.m. '000 sq.m. 15,860 23,896 25,000 21,601 15,000 13,323 20,000 11,691 12,787 18,913 9,793 9,288 9,295 13,804 10,387 9,087 8,869 8,288 15,000 10,000 7,905 11,245 15,140 8,104 11,831 12,576 8,615 14,
Slide 45: Hangzhou Real Estate Market Overview
Hangzhou Real Estate Market Overview '000 sq.m. Residential Land Supply and Property Transactions – Hangzhou RMB/sq.m. 20,000 26,525 27,000 17,423 23,156 14,898 22,000 15,000 16,588 16,622 16,010 17,528 14,098 12,55912,985 14,604 15,529 11,891 17,000 10,186 12,197 16,065 16,087 10,000 7,976 8,328 8,
Slide 46: 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 12,677 25,000 11,763 12,000 20,129 10,176 10,481 18,621 9,641 9,532 20,000 10,000 9,165 8,675 17,355 7,701 7,900 8,716 7,815 8,499.94 8,000 12,258 7,232 15,000 5,597 13,163 6,000
Slide 47: 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 9,823 11,000 44,027 9,432 10,031 10,000 8,810 40,000 7,796 9,000 7,407 8,000 7,155 7,093 28,798 7,000 30,000 27,856 17,993 25,162 22,082 24,864 23,539 18,263 6,000 21,468 16,700 5,
Slide 48: Tianjin Real Estate Market Overview
Tianjin Real Estate Market Overview '000 sq.m. Residential Land Supply and Property Transactions – Tianjin RMB/sq.m. 30,000 25,598 15,824 15,694 25,000 22,754 15,000 11,630 20,000 10,620 13,557 10,315 9,414 10,152 16,808 14,984 10,285 13,475 10,000 15,000 13,174 14,207 13,716 12,596 12,038 11,483 8,
Slide 49: Huizhou Real Estate Market Overview
Huizhou Real Estate Market Overview '000 sq.m. Residential Land Supply and Property Transactions – Huizhou RMB/sq.m. 18,000 11,184 10,813 12,000 15,000 14,453 9,000 7,575 12,000 9,945 6,712 6,352 6,809 9,000 8,584 7,322 6,000 6,393 5,777 6,408 6,000 5,014 3,558 4,103 4,314 2,779 3,000 3,000 1,693 2,
Slide 50: Shenyang Real Estate Market Overview
Shenyang Real Estate Market Overview '000 sq.m. Residential Land Supply and Property Transactions – Shenyang RMB/sq.m. 50,000 9,151 9,000 7,189 7,909 40,000 7,112 7,003 7,022 6,383 6,450 29,331 30,000 32,606 27,822 6,000 4,263 3,595 20,000 13,739 14,233 13,712 14,879 11,068 11,128 7,192 15,879 3,000
Slide 51: Quanzhou Real Estate Market Overview
Quanzhou Real Estate Market Overview '000 sq.m. Residential Land Supply and Property Transactions – Quanzhou RMB/sq.m. 4,000 10,072 8,632 9,146 9,717 8,743 8,770 8,865 3,268 7,938 9,000 3,000 2,385 2,319 6,397 2,029 1,849 2,042 6,000 2,000 1,506 1,486 3,642 1,284 1,325 1,415 1,302 3,707 1,187 1,043
Slide 52: Chongqing Real Estate Market Overview
Chongqing Real Estate Market Overview '000 sq.m. Residential Land Supply and Property Transactions – Chongqing RMB/sq.m. 140,000 121,437 11,123 12,000 120,000 100,000 9,032 68,290 69,367 9,000 6,803 6,994 80,000 6,409 6,637 6,616 60,000 54,843 39,965 50,513 6,000 41,162 40,000 2,715 19,844 21,519 26
Slide 53: Qingdao Real Estate Market Overview
Qingdao Real Estate Market Overview '000 sq.m. Residential Land Supply and Property Transactions – Qingdao RMB/sq.m. 25,232 13,701 24,000 20,138 21,401 11,113 12,000 21,000 19,513 8,767 8,926 18,000 17,052 8,446 8,528 8,010 14291 15331 9,000 15,000 7,450 17,031 12,982 10,180 11,720 12,000 6,000 7,94
Slide 54: FY2018 Key Financials
FY2018 Key Financials FY2018 FY2017 Changes Revenue (RMB’000) 24,305,871 21,700,673 +12% Gross profit (RMB’000) 7,467,245 7,683,054 -3% Gross profit margin (%) 30.72% 35.40% -4.68pp Core profit (RMB’000) 3,418,537 2,923,989 +17% Core profit margin (%) 14.06% 13.47% +0.59pp EPS (RMB/share) 0.78 0.70
Slide 55: FY2018 Key Financials
FY2018 Key Financials As at 31 Dec 2018 As at 31 Dec 2017 Changes (RMB’000) Total assets 115,063,004 79,904,817 +44% Total liabilities 93,632,652 62,461,581 +50% Total equity 21,430,352 17,443,236 +23% Total cash 29,279,350 17,498,208 +67% Total debt 43,631,855 27,567,486 +58% Net debt 14,352,505 10
Slide 56: Yuzhou Properties
凡大成者，必取於勢，優於術，精於道。 Yuzhou Properties will remain resilient in the face of the ever-changing market environment. Capitalizing on the development of new urban areas, it will stick to the “A Journey to 100 Billion with Nationwide Cultivation” strategy. Emphasis will be placed on strengthening its prese
Yuzhou Properties Company — FY2018 Earnings Presentation on 6ix