Yuzhou Group Holdings Co., Ltd. · HKEX:1628

Yuzhou — Yuzhou Properties Company — Investor Presentation (May 2012)

40 slides from Yuzhou's investor presentation, May 2012

  1. Slide 1: Corporate Presentation May 2012

    Corporate Presentation May 2012

  2. Slide 2: Disclaimer

    DISCLAIMER These materials have been prepared by Yuzhou Properties Company C Limited (the “Company”) solely for informational use during its presentation to current and/or prospective invesstors to provide an update on the business performance and d l development off the h Company. C No representati

  3. Slide 3: About Yuzhou Properties (01628.HK)

    ABOUT YUZHOU PROPERTIES (016 628. HK) z A leading property develo oper in West Strait Economic Zone with footprints in the Top 3 largest cities in Fujiaan Province z nal developer over the long haul Vision to become a nation z Defensive land cost througgh smart land acquisitions q : weighted g avera

  4. Slide 4: Table of Contents

    TABLE OF CONTENTS I. REVIEW OF BUSINESS OPERATTIONS II. FUTURE PERSPECTIVES III. 2011 ANNUAL FINANCIAL HIGH HLIGHTS IV. APPENDIX 4

  5. Slide 5: Review of Business Operations

    REVIEW OF BUSINESS OPERATIONS 5

  6. Slide 6: Contracted Sales

    CONTRACTED SALES Contracted Contracted Contracted Contracted Sales As of Total # Project City Sales GFA ASP (FY2010 vs. FY2011vs. YTD*2012) (RMB mn) (%) (sq.m.) (RMB/sq.m.) 1 Yuzhou University City Phase II Xiamen 133 6% 19 030 19,030 7 008 7,008 RMB million 2 Yuzhou Castlee above City Xiamen 298 13

  7. Slide 7: Monthly Contracted Sales in 2011 vs. 2012

    MONTHLY CONTRACTED SALES IN 2011 2 vs. 2012 Monthly Contracted Sale es ( Jan 2011 – April 2012 ) Contracted Sales ASP (RMB’ million) (RMB/sq.m.) 1,000 11,132 11,069 12,000 10,406 , 881 10,611 9,830 9,839 778 9,332 9,453 10,000 800 8,972 8,605 689 7,891 8,836 8,915 8,704 8,000 8 348 8,348 604 600 6,3

  8. Slide 8: FY2012: Launch Breakdown

    FY2012: LAUNCH BREAKDOWN By City By Launch Type % Shanghai Tianjin j % 9 4 Xiamen Hefei Fuzhou New Launch 17 Quanzhou 46 Existing i i Existing Xiamen Hefei 54 New Launch 56 Shanghai Quanzhou Tianjin 8 Fuzhou 6 By Project Type By Period % Commercial % Car Parking 3 9 Villa Apartment 7 1H SOHO 1H 46 S

  9. Slide 9: More Diversified Revenue Streams

    MORE DIVERSIFIED REVENUE STREEAMS 2010 Contracted Sales by City 2011 Contracted Sales by City % 4 % 11 Xiamen 25 43 Xiamen Fuzhou Fuzhou 19 Shanghai Shanghai 66 Hefei 11 Hefei 21 100%=RMB 5,217 million 100%=RMB 4,296 million 2010 Contracted GFA by City 2011 Contracted GFA by City % 11 % 6 42 43 Xiam

  10. Slide 10: FY2011 Sell-through Rate Reached 56%

    FY2011 SELL‐THROUGH RATE REAC CHED 56% The Average Sell‐through Rate is 56% % 56% City Xiamen Xiamen Xiamen Xiamen Xiamen Xiamen Xiam men Xiamen Fuzhou Fuzhou Shanghai Shanghai Hefei Xiamen GFA Launched 137,493 36,023 20,177 8,212 58,534 54,380 35 5,378 49,288 37,677 40,129 3,582 33,258 338,850 3,07

  11. Slide 11: Land Replenishment in 2011 & 2012

    LAND REPLENISHMENT IN 2011 & 2012 2 Date of Total Saleable GFA Average Land Cost City Project Type M Methodology Acquisition (sq.m.) (RMB/sq.m.) Mar 2011 Shanghai SOHO/Serviced Apt Mergger & Acquisition 211 418 211,418 1 324 1,324 Particiipation with local May 2011 Quanzhou Resi/Com/Retail 491,800 3

  12. Slide 12: Snapshot of Land Bank

    SNAPSHOT OF LAND BANK 6.1million sq.m. as at 30 April 2012 Total Saleable Land Cost City GFA (sq.m.) (RMB/sq.m.) Bohai Rim Region Tianjin 449,198 997 Shanghai 597,200 1,769 Yangtze River Delta Hefei 1,142,308 377 Xiamen 2,220,669 2,191 West Strait Economic Fuzhou 334,345 2,425 Zone Quanzhou 1,315,20

  13. Slide 13: Ability to Obtain Sustainable Project Finance

    ABILITY TO OBTAIN SUSTAINABLE PROJECT P FINANCE Credit Facilitiies Used Facilities Remaining Facilities # Lending Banks City (as of 31 Dec, RM MB mn) (as of 31 Dec, RMB mn) (as of 31 Dec, RMB mn) 1 CCB Xiamen 1,990 1,570 420 2 ICBC Xiamen 1,900 ‐ 1,900 3 BOC Xiamen 600 550 50 4 Bank of Comm Hefei 30

  14. Slide 14: 1Q 2012 Cash Flow Position

    1Q 2012 CASH FLOW POSITION (Unaudited) RMB Bn RMB Bn Rental & Management Neww Debt Fee Income Draw wdown Cash on Hand (1 Jan 2012) 1 96 1.96 0.02 0..59 Cash Proceeds from Contracted Sales 1.27 Cash h on Contracted d Sales l To otal Inflow Rental & Management Fee Income 0.02 Hand Cash Proceeds 3.84 1

  15. Slide 15: Future Perspectives

    EX; Fa 2 ttt SE AS 153 BR ZS He YUZHOU PROPERTIES COMPANY LIMITED Stock Code: 01628.HK

  16. Slide 16: A Promising Economic Zone: West Strait

    A PROMISING ECONOMIC ZONE : WEST W STRAIT GDP GDP per Capita Residential Investment Average Residential Price Source : Statistical Bu ureau of Fujian & Xiamen 16

  17. Slide 17: Market Leader in West Strait Economic Zone

    MARKET LEADER IN WEST STRAIT ECONOMIC E ZONE 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 long time market leadership by expandingg into lower‐tier cities such as Z

  18. Slide 18: With a Strong Focus in Xiamen, Fujian Province

    WITH A STRONG FOCUS IN XIAMEN N, FUJIAN PROVINCE 24 1 Largest Land Bank in Xiamen (As at Dec 2011) Fuzhou Million sq.m. Quanzhou Xiamen 9 5 6 3 8 7 Source : Listed companies annual reports & interim reports Residential Market Share in Xiamen* 1 Yuzhou University City 禹洲．大學城 % 2 Yuzhou Sunshine Garde

  19. Slide 19: Competitive Edge of a Regional Leader

    COMPETITIVE EDGE OF A REGIONA AL LEADER Weighted Average Cost of Funding Limited Outstanding Land Premium RMB Million % as of Total Interest 2 500 2,500 2 254 2,254 # Category Debt rate(%) 111 2,143 1 Onshore Project Loan 54% 7.58% 2,000 Total Outstanding 2 Onshore Trust 5% 8.30% Paid Land Land 1,50

  20. Slide 20: Enhancement in Senior Management Team

    ENHANCEMENT IN SENIOR MANAG GEMENT TEAM Stable management team Strict selectio on of professional On average over 11 with most key members manageme ent members with years of experience having been with the extensive exp perience and proven in property Company p y for over 12 yyears record developmen

  21. Slide 21: Major Contributing Projects in 2012

    MAJOR CONTRIBUTING PROJECTS IN 2012 Xiamen Yuzhou Shoreline Xiamen Yuzhou Central Coast (廈門禹洲．尊海) (廈門禹洲．中央海岸) ¾ At the Heart of Haicang ¾ Located at the seafront of CBD, offering a panoramic Xiamen Jimei District, right view of the sea, lake and at the transportation hub forestry ¾ High‐rise residen

  22. Slide 22: Major Newly-Launched Projects in 2012

    MAJOR NEWLY‐LAUNCHED PROJEC CTS IN 2012 Xiamen Yuzhou Cloud Top Inter’l (廈門禹洲．雲 雲頂國際) ¾ The first city integrated project located right at the new core area of Xiamen Island, Island linked to BRT (Bus Rapid Transit) ¾ 3 Residential high‐rises and commercial space ¾ Land cost: RMB 3,087/sq.m., ¾ Plan

  23. Slide 23: 2011 Annual Financial Highlights

    2011 ANNUAL FINANCIAL HIGHLIGHTS 23

  24. Slide 24: Highlights of 2011 Annual Results

    HIGHLIGHTS OF 2011 ANNUAL RESSULTS FINANCIAL HIGHLIGHTS FOR THEE 12 MONTHS ENDED 31 DEC 2011 Compared with FY2010 z Recognized revenue: RMB3,839.1 million (‐RMB426.5 million or ‐10.0%) z C t t d sales: Contracted l RMB4,295.9 RMB4 295 9 million illi ( RMB921 4 million or ‐17.7%) (‐RMB921.4 17 7%) z

  25. Slide 25: FY2011 Key Profit & Loss Items

    FY2011 KEY PROFIT&LOSS ITEMS Revenue* Gross Profit RMB million RMB million EBITDA Core Profit RMB million RMB million * After 5.5% Business Taxes 25

  26. Slide 26: FY2011 Revenue Breakdown

    FY 2011 REVENUE BREAKDOWN 100%=RMB 3,839 million 100%=RMB 4,266 million (RMB’000) FY2011 FY2010 Change 100% 1.4% 0.8% 0.8% SSales l off 1 3% 1.3% 3,735,365 4,198,037 ‐11% properties 95% Rental income 51,411 33,654 +53% 90% 97.3% 98.4% Property 85% 52,300 33,867 +54% management fees 80% Total 3,839,0

  27. Slide 27: Analysis on FY2011 Recognized Property Sales

    ANALYSIS ON FY2011 RECOGNIZED D PROPERTY SALES Recognized Property Sales* Recognized GFA & ASP RMB million illi GFA (sq.m.) ASP (RMB/sq.m.) ( / ) Recognized g Sales byy Region g Recognized g GFA byy Region g % % * After 5.5% Business Taxes 27

  28. Slide 28: FY2011 Key Balance Sheet Items

    FY2011 KEY BALANCE SHEET ITEMSS Cash Position Total Debt RMB million RMB million Total Asset Shareholders’ Equity Shareholders RMB million RMB million 28

  29. Slide 29: FY2011 Stable Financial Position

    FY2011 STABLE FINANCIAL POSITIO ON Net Gearing Ratio Debt Profile by Maturity % % Debt Profile byy Currencyy Debt Profile byy Type yp % % US$: 5‐year @ 13.5% Coupon rate HK$: 3‐year @ 10% Totall Debt b = RM MB 5,557 million illi 29

  30. Slide 30: Appendix

    EX; Fa 2 ttt SE AS 153 BR ZS He YUZHOU PROPERTIES COMPANY LIMITED Stock Code: 01628.HK

  31. Slide 31: FY2012: Detailed Launch Table

    FY2012: DETAILED LAUNCH TABLE Planned Sales Areaa for 1H Planned Sales Area for 2H Planned Sales Area for FY Percentage of Planned Name of Project City Project Type 2012 (sq.m.)) 2012 (sq.m.) 2012 (sq.m.) Sales Area (%) Apartment 21,959 12,417 34,376 3% 1 Yuzhou University City Commercial 1,107 ‐ 1,

  32. Slide 32: Xiamen Property Market Overview

    XIAMEN PROPERTY MARKET OVER RVIEW Residential Land Supply and Property P Transactions in Xiamen '000sq.m. RMB/sq.m. 10,000 8,753 12,016 14,000 11,391 11,161 12,000 8,000 9,722 8,384 8,830 10,000 6,000 6,500 5,015 8,000 5,067 4,180 3,849 5,739 4,133 3,515 3,175 6,000 4,000 2,6102,405 2,660 5,464 2,39

  33. Slide 33: Fuzhou Property Market Overview

    FUZHOU PROPERTY MARKET OVER RVIEW Residential Land Supply and Property P Transactions in Fuzhou '000 '000sq.m. RMB/ RMB/sq.m. 10,000 13,697 16,000 14,026 8,000 12,463 14,000 8,000 11,349 12,000 6,200 5,647 , 10 000 10,000 6 000 6,000 5 234 5,234 5 214 5,214 4,594 7,315 6,067 8,000 4,000 3,4043,080 4

  34. Slide 34: Shanghai Property Market Overview

    SHANGHAI PROPERTY MARKET OV VERVIEW Residential Land Supply and Pro operty Transactions in Shanghai '000sq.m. RMB/sq.m. 35,000 32,800 23,399 25000 28,500 19,196 30,000 26,200 26,313 19,126 24,712 20000 25,000 20,000 11,790 15000 15,545 9,243 13,759 15,000 8,250 6,698 7,039 8,873 10000 9,212 6,159 10

  35. Slide 35: Hefei Property Market Overview

    HEFEI PROPERTY MARKET OVERVIEEW Residential Land Supply and Property Transactions in Hefei '000 '000sq.m. RMB/ RMB/sq.m. 14,000 12,978 6,125 7,000 11,800 6,022 5,940 12,000 6,000 9,380 9,500 8,949 10,000 8,700 4,095 8,667 5,000 3 425 3,425 7 610 7,610 4,380 4 380 8,000 3,154 6,547 4,000 2,7995,400 2

  36. Slide 36: Detailed Land Bank Table

    DETAILED LAND BANK TABLE # Project Site Area Location Unit Land Cost Total GFA Total Saleable GFA Sold & Delivered Pre‐sold GFA Unsold GFA held for Unsold GFA held Land Reserve Interest in the GFA Sale for Investment Project （sq.m.） （RMB/sq.m.） （sq.m.） （sq.m.） （sq.m.） （sq.m.） （sq.m.） （sq.m.） （sq.m.）

  37. Slide 37: Diversifying Land Bank

    DIVERSIFYING LAND BANK As at December 2011 As at April 2012 By City By City % % By Project Type By Project Type % % 100% = 4.92 million sq.m. 100% = 6.11 million sq.m. 37

  38. Slide 38: FY 2011 Key Financials

    FY 2011 KEY FINANCIALS For the year ended 31 Dec FY2011 FY2010 Change (%) Revenue (RMB’000) 3,839,076 4,265,558 ‐10% Gross Profit (RMB’000) 1,884,461 1,777,383 +6% Gross Profit Margin (%) 49% 42% +7pp Net Profit (RMB’000) 941,628 963,601 ‐2% EPS (RMB/share) 0 39 0.39 0 40 0.40 ‐3% 3% DPS (RMB/share)

  39. Slide 39: FY 2011 Key Financials

    FY 2011 KEY FINANCIALS (RMB’000) As att 31 Dec 2011 As at 31 Dec 2010 Change (%) Total current assets 13,416,940 10,881,309 +23% Total non non‐current current assets 4 836 171 4,836,171 3 711 283 3,711,283 +30% Total current liabilities 7,642,604 5,483,550 +39% Total non‐current non current liabilit

  40. Slide 40: Cost Structure

    COST STRUCTURE Cost of Properties Sold as a % of Revenue from Sale of Properties (FY2009 vs.. FY2010 vs.FY2011) GP GP GP Margin1: Margin1: Margin1: 49% 41% 49% Total Total Total Costs: Costs: Costs: 51% 59% 51% Note 1: Gross Profit Margins from Property Sales 40

Yuzhou Properties Company — Investor Presentation (May 2012) on 6ix