Yuzhou Group Holdings Co., Ltd. · HKEX:1628
Yuzhou — Yuzhou Properties Company — FY2013 Earnings Presentation
39 slides from Yuzhou's earnings presentation, Mar 26, 2014
Slide 1: 2013 Annual Results Announcement
2013 Annual Results Announcement 26 March 2014
Slide 2: Disclaimer
DISCLAIMER These materials have been prepared by Yuzhou Properties Co ompany 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 warr
Slide 3: About Yuzhou Properties (01628.HK)
ABOUT YUZHOU PROPERTIES (01628. HK K) A leading property developer in West Strait Economic Zone with footprints in Xiamen, Fuzhou, Quanzhou, Zhangzho ou and Longyan, the Top 5 largest cities in Fujian Province KEY FOCUS Successful expansion into Sh hanghai, Hefei, Tianjin and Bengbu Well‐estab
Slide 4: About Presenters
ABOUT PRESENTERS Founder, Mr. LAM, Lung On Chairman and Executive Director Chief Financial Officer and Mr. Steve CHIU Company Secretary Senior Manager of Ms. Venus Chiu p Corporate Finance & Investor Relations 4
Slide 5: Table of Contents
TABLE OF CONTENTS I. FINANCIAL HIGHLIGHTS II. BUSINESS REVIEW III. FUTURE PERSPECTIVES IV. APPENDIX 5 5 5
Slide 6: Financial Highlights
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Slide 7: Highlights of 2013 Annual Results
HIGHLIGHTS OF 2013 ANNUAL RESULTS FINANCIAL HIGHLIGHTS FOR THE 12 MONTHS ENDED 31 DECEMBER 2013 Compared with FY2012 Recognized revenue: RMB7,470.6 million (+RMB3,576.8 million or +91.86%) Contracted sales: RMB10,959.0 million (+RMB4,429.9 million or +67.85%) Core profit attributed to sharehol
Slide 8: FY2013 Key Profit & Loss Items
FY2013 KEY PROFIT&LOSS ITEMS Revenue* Gross Profit RMB million RMB million 7,471 2,319 1,884 1,543 3 839 3,839 3 894 3,894 6,439 2H 1,988 2H 1,548 1,112 3,073 2,939 1H 1H 766 955 1,032 336 431 331 FY2011 FY2012 FY2013 FY2011 FY2012 FY2013 EBITDA Core Profit RMB million RMB million 2,608 1,090 1,848
Slide 9: FY2013 Revenue Breakdown
FY2013 REVENUE BREAKDOWN (RMB’000) FY2013 FY2012 Change 100%=RMB7,471 million 100%=RMB3,893 million 100% 0.02% Sales of 0.95% 7,348,835 3,784,421 +94.19% 1.57% properties 0.66% 98% 1.24% Rental income 49,163 48,245 +1.90% 96% Property 71,220 61,170 +16.43% management fees 94% % 98.37% Hotel operatio
Slide 10: Analysis on FY2013 Recognized Property Sales
ANALYSIS ON FY2013 RECOGNIZED PROP PERTY SALES Recognized Property Sales* Recognized GFA & ASP RMB million illi GFA (sq.m.) ASP ((RMB/sq.m.) / ) 7,349 1,000,000 10,654 12,000 800,000 9,247 7,544 9,000 3,735 3,784 600,000 6,374 2H 6,000 400,000 794,730 3,011 2,886 1H 200,000 501,618 3,000 350,601 724
Slide 11: FY2013 Key Balance Sheet Items
FY2013 KEY BALANCE SHEET ITEMS Cash Position Total Debt RMB million RMB million 3,884 9,710 3,729 7,509 1,956 , 5,557 5,55 7,726 Long‐term 5,030 4,222 Short‐term 1,335 2,479 1,984 FY2011 FY2012 FY2013 FY2011 FY2012 FY2013 Total Asset Shareholders’ Equity Shareholders RMB million RMB million 27,362 7
Slide 12: FY2013 Stable Financial Position
FY2013 STABLE FINANCIAL POSITION Net Gearing Ratio Debt Profile by Maturity % % 15 500 20 400 421 Within 1 year 364 300 1 to 2 year 2 to 5 year 200 16 Over 5 year 100 42 64 62 78 17 0 49 2007 2008 2009 2010 2011 2012 2013 Debt Profile byy Currencyy Debt Profile byy Type yp % % 38 Fixed US$ interest
Slide 13: Business Review
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Slide 14: Snapshot of Land Bank
SNAPSHOT OF LAND BANK 8.53million sq.m. as at 31 Dec 2013* Saleable Average Land % of GFA No. of Cost saleable City (‘000 sq.m.) projects （RMB/sq.m.） GFA Bohai B h i Ri Rim Tianjin 451 2 1,061 5 Region Shanghai 641 6 3,364 7 Yangtze Hefei 2,361 4 1,439 28 River Delta Tianjin Bengbu 668 1 660 8 Xiame
Slide 15: Market Leadership in Xiamen, Fujian Province
MARKET LEADERSHIP IN XIAMEN, FUJIAN PROVINCE 6 Largest Land Bank* in Xiamen (As at Dce 2013) Million sq.m. 2.50 2.33 Fuzhou 7 5 8 2.00 1.91 4 1.50 Quanzhou 1.00 0.87 0.77 9 0.55 0.53 0.42 Xiamen 3 2 1 0.45 0.34 0.30 0.50 0 00 0.00 Yuzhou Vanke Shimao BCDC Longfor CR Land Mingfa COLI Powerlong SCE Co
Slide 16: FY2013 Contracted Sales +68% Year-on-Year
FY2013 CONTRACTED SALES +68% YEAR‐‐ON‐YEAR Interest Contracted Sales # Proje ect in Contracted As of Contracted Contracted Project Sales Total GFA ASP (FY2011 vs. FY2012vs. FY2013) City % (RMB mn) (%) (sq.m.) (RMB/sq.m.) RMB million 1 YYuzhou h U i i City University Ci Phase Ph II Xiamen Xi 100% 7 0
Slide 17: Monthly Contracted Sales in 2012 vs. 2013
MONTHLY CONTRACTED SALES IN 2012 vs. v 2013 Monthly Contracted Salles ( Jan 2012 – Dec 2013) Contracted Sales ASP (RMB million) (RMB/sq.m.) 2,600 2,410 16,000 2,400 , 13 799 13,799 13,407 13 407 14,000 2,200 12,655 2,000 12,000 11,501 1,800 10,531 9,867 10,407 1,600 8,983 9,907 9,637 9 637 9,302 10,
Slide 18: FY2013 Sell-through Rate Reached 72%
FY2013 SELL‐THROUGH RATE REACHED 72% 7 The Average Sell‐th hrough Rate is 72% % 93 82 84 79 81 80 65 72 73 72 64 60 64 60 48 41 38 40 26 20 7 0 University Golf Shoreline Central Riverside Cloud Top Deam Others Gushan Oriental City Plaza I Castle Landream Skyline Jade Palace Average City II Coast Cit
Slide 19: Land Replenishment in 2013
LAND REPLENISHMENT IN 2013 Saleable Total Land Average Land Estimated Date of Site Cost Cost ASP Xiamen (2 Parcels) City Project Type Methodology GFA Acquisition Area(sq.m.) (sq.m.) (RMB mn) (RMB/sq.m.) (RMB/sq.m.) 2013.01 Bengbu Resi/Com/Retail M&A 133,667 668,333 441 660 6,000+ 2013.01 Hefei Resi/
Slide 20: Land Replenishment in 2014
LAND REPLENISHMENT IN 2014 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.) Bidding and January2014 Quanzhou Resi/Retail 6 61,481 110,666 85 769 7,000+ Auction Quanzhou Yuzhou City
Slide 21: Ability to Obtain Sustainable Project Finance
ABILITY TO OBTAIN SUSTAINABLE PROJEC CT FINANCE Credit Facilities Used Facilities Remaining Facilities # Lending Banks City (as of 31 Dec 2013 3, RMB m) (as of 31 Dec 2013 RMB m) (as of 31 Dec 2013 RMB m) 1 CCB Xiamen 2,200 300 1,900 2 ICBC Xiamen 127 127 ‐ 3 BOC Xiamen 3,230 1,437 1,794 4 BOC Shang
Slide 22: Cost Structure
COST STRUCTURE Cost of Saless Breakdown (FY2009 vs. FY2010 vs. FY2011 vs.FY2012 vs. FY2013) % 100% 6.8% 4.5% 7 8% 7.8% 6 7% 6.7% 10 0% 10.0% 80% 58.2% 63.4% 58.2% 60% 74.5% 75.0% 40% 20% 35.0% 32.1% 31.8% 17 6% 17.6% 18 3% 18.3% 0% FY2009 FY2010 F FY2011 FY2012 FY2013 L d costs Land t C t ti co Cons
Slide 23: FY2013 Cash Flow Position
FY 2013 CASH FLOW POSITION (U (Unaudited) di d) RMB B Bn FY2012 FY2013 FY2014 RMB Bn (A) (A) (E) Cash on Cash on Cash on Hand (at the Hand beginning) 1.96 3.73 3.88 Hand 3.73 Cash Proceeds from Contracted Sales 6.14 8.04 11.96 Rental, Management Rental, Management Fee & Fee & Other Income Other Inco
Slide 24: Future Perspectives
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Slide 25: Macroeconomic & Market Outlook
MACROECONOMIC & MARKET OUTLOOK K U.S. U S Federal Reserve Board would gradually reduce the third round of quantitative easing (QE3) scale Chinese government has Chi h set the h targget off 2014 GDP increase i to be b around d 7.5% and CPI rise to be around 3.5% to t ensure a stable economic grow
Slide 26: Our Strategies to Weather the Market
OUR STRATEGIES TO WEATHER THE MAR RKET Adopting innovative marketing approach to actively cope Focusing on West Strait Economic Zone Development with market changes Improving p o g operation ope at o efficiency e c e cy through t oug design des g p process ocess Di Diversifying if i businesses b i t
Slide 27: FY2014: Detailed Launch Table
FY2014: DETAILED LAUNCH TABLE Planned Sales GFA for Planned Sales GFA for 1H 2014 Planned Sales GFA for 2H 2014 Percentage of Planned # Project Name City Product Type Launch Type FY2014 Sales GFA (%) (sq.m.) (sq.m.) (sq.m.) 1 Yuzhou University City Car Parking Existing 4,489 ‐ 4,489 0% Apartment Exi
Slide 28: FY2014: Launch Breakdown
FY2014: LAUNCH BREAKDOWN By City By Launch Type % Tianjin Xiamen % 6 Bengbu Xiamen Fuzhou 6 28 Existing Quanzhou Hefei Longyan gy New 29 Zhangzhou Launch Fuzhou Shanghai 39 Shanghai 7 Hefei Existing New Launch 4 61 Zh h Longyan Zhangzhou L Q h Quanzhou Bengbu 3 6 11 Tianjin By Project Type By Period
Slide 29: Major Contributing Projects in FY2014
MAJOR CONTRIBUTING PROJECTS IN FY2 2014 Xiamen Yuzhou Central Coast Quanzhou Yuzhou City Plaza Phase I &II (廈門禹洲．中央海岸) (泉州禹洲城市廣場一期和二期) 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‐ris
Slide 30: Future Land Bank Strategy
FUTURE LAND BANK STRATEG GY Focus on the West Strait Economic Zone e A new strategic focus and growth engine in China promotted by the State Council Penetrate further into the region To solidify the long‐time market leadership by expandingg into l lower‐tier ti cities iti suchh as Zh Zhangzhou h , S
Slide 31: Appendix
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Slide 32: Xiamen Property Market Overview
XIAMEN PROPERTY MARKET OVERVIEW Residential Land Supply and Prroperty Transactions in Xiamen '000 sq.m. RMB/sq.m. 8,000 8 000 15,701 18 000 18,000 7,000 13,973 16,000 12,863 6,000 6,743 11,600 14,000 9,891 6,055 12,000 5,000 9,708 11,276 8,,854 4,883 4 883 10,000 4,000 6,601 4,543 4,490 4,109 8,000
Slide 33: Fuzhou Property Market Overview
FUZHOU PROPERTY MARKET OVERVIEW W Residential Land Supply and Prroperty Transactions in Fuzhou '000 sq.m. RMB/sq.m. 12,000 16,089 18,000 14,243 16,000 10,000 13,092 10,435 14,000 8,000 11,322 12,000 7,963 , 10 000 10,000 6,000 7,244 7,619 6,214 5,813 8,000 5,634 4,000 3,976 4,951 6,000 2,981 5,138 4
Slide 34: Shanghai Property Market Overview
SHANGHAI PROPERTY MARKET OVERVIEEW Residential Land Supply and Pro operty Transactions in Shanghai '000 sq.m. RMB/sq.m. 40,000 40 000 30 000 30,000 24,177 35,000 22,278 22,502 21,728 25,000 34,809 30,000 039 16,0 20,000 25,000 20,128 13,971 20,000 17 941 17,941 23 421 23,421 15,000 16,151 17,776 17,
Slide 35: Hefei Property Market Overview
HEFEI PROPERTY MARKET OVERVIEW Residential Land Supply and Property P Transactions in Hefei 14,000 12,664 8,000 12,000 11,371 6,986 7,000 10,256 10,684 9,619 6,259 6,351 10,765 9,531 6,007 9,403 6,000 10,000 8,900 8,439 7,754 5,000 8,000 4,635 5,833 , 4,100 6,256 4,000 6,000 5 374 5,374 5 413 5,413
Slide 36: Detailed Land Bank Table as at 31 Dec 2013
DETAILED LAND BANK TABLE AS AT 31 DEEC 2013 SSold 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
Slide 37: Land Bank Breakdown
LAND BANK BREAKDOWN As at 31 Dec 2012 As at 31 Dec 2013 B By Cit City B City By Cit % 7 % 5 Xiamen Xiamen 8 8 27 Fuzhou Fuzhou Quanzhou Q 39 Quanzhou Longyan 17 Zhangzhou Longyan 28 Shanghai Hefei 3 Hefei 5 Shanghai Bengbu 15 19 5 Tianjin 7 3 4 Tianjin Byy Project ojec Type ype Byy Project j Type yp
Slide 38: 2013 Key Financials
2013 KEY FINANCIALS For the period p ended 31 Dec FY2 2013 FY2012 Change (%) Revenue (RMB’000) 7,470,,608 3,893,836 +91.86% Gross Profit(RMB’000) 2,319,,081 1,543,065 +50.29% Net Profit*(RMB’000) 1,471,,221 726,214 +102.59% Net Profit Margin (%) 19.6 69 % 18.61% +1.08pp Core Profit (RMB (RMB’000) 00
Slide 39: 2013 Key Financials
2013 KEY FINANCIALS (RMB’000) As at 31 3 Dec 2012 As at 31 Dec 2011 Change (%) Total current assets 21,847,267 17,589,771 +24.20% Total non‐current assets 5,515,054 4,688,072 +17.64% Total current liabilities 11,483,173 10,617,388 +8.15% Total non‐current liabilities 8,407,243 5,568,970 +50.97% Tota
Yuzhou Properties Company — FY2013 Earnings Presentation on 6ix