Yuzhou Group Holdings Co., Ltd. · HKEX:1628
Yuzhou — Yuzhou Properties Company — FY2014 Earnings Presentation
39 slides from Yuzhou's earnings presentation, Mar 25, 2015
Slide 1: 2014 Annual Results Announcement
2014 Annual Results Announcement 25 March 2015
Slide 2: About Yuzhou Properties (01628.HK)
ABOUT YUZHOU PROPERTIES (01628. HK) A leading property developer in West Strait Economic Zone with footprints in Xiamen, Fuzhou and Quanzhou, the Top 3 largest cities in Fujian Province KEY FOCUS Successful expansion into Hong Kong, Shanghai, Nanjing, Hefei, Tianjin, Longyan, Bengbu and Zhangzho
Slide 3: About Presenters
ABOUT PRESENTERS Founder, Mr. LAM, Lung On Chairman and Executive Director Mr. CAI Minghui Excecutive President Vice President Mr. Steve CHIU Chief Financial Officer and Company Secretary Head of Ms. Venus Chiu Corporate Finance & Investor Relations 3
Slide 4: Table of Contents
TABLE OF CONTENTS I. FINANCIAL HIGHLIGHTS II. BUSINESS REVIEW III. FUTURE PERSPECTIVES IV. APPENDIX 4
Slide 5: Financial Highlights
ae FINANCIAL HIGHLIGHTS
Slide 6: Highlights of 2014 Annual Results
HIGHLIGHTS OF 2014 ANNUAL RESULTS FINANCIAL HIGHLIGHTS FOR THE 12 MONTHS ENDED 31 DECEMBER 2014 Compared with FY2013 Recognized revenue: RMB7,837 million (+RMB366 million or +5%) Gross profit: RMB2,845 million (+RMB526 million or +23%) Core profit attributable to owners of parent: RMB1,025 mil
Slide 7: FY2014 Key Profit & Loss Items
FY2014 KEY PROFIT&LOSS ITEMS Revenue* Gross Profit RMB million RMB million 7,837 2,845 7,471 2,319 3,913 1,429 3,894 1,543 6,439 2H 1,988 2H 2,939 1,112 3,924 1H 1,416 1H 955 1,032 431 331 FY2012 FY2013 FY2014 FY2012 FY2013 FY2014 Profit attributable to shareholder Core Profit RMB million RMB millio
Slide 8: FY2014 Revenue Breakdown
FY2014 REVENUE BREAKDOWN (RMB’000) FY2014 FY2013 Change 100%=RMB 7,837 million 100%=RMB 7,471 million 100% 0.2% 0.0% Hotel operation 1.0% 16,183 1,390 +1,064% 1.1% income 0.7% 0.7% 98% Property 88,245 71,220 +24% management fees 96% Rental income 51,544 49,163 +5% 94% 98.0% 98.3% Sales of properties
Slide 9: Analysis on FY2014 Recognized Property Sales
ANALYSIS ON FY2014 RECOGNIZED PROPERTY SALES Recognized Property Sales* Recognized GFA & ASP RMB million GFA (sq.m.) ASP (RMB/sq.m.) 1,000,000 12,000 7,349 7,681 10,437 800,000 9,247 9,000 3,847 600,000 7,544 3,784 6,000 6,374 2H 400,000 794,730 735,881 2,886 1H 501,618 3,000 3,834 200,000 898 975 0
Slide 10: FY2014 Key Balance Sheet Items
FY2014 KEY BALANCE SHEET ITEMS Cash Position Total Debt RMB million RMB million 9,785 15,404 3,729 3,884 9,710 7,509 11,599 Long-term 7,726 Short-term 5,030 2,479 3,805 1,984 FY2012 FY2013 FY2014 FY2012 FY2013 FY2014 Total Asset Total Equity RMB million RMB million 39,075 9,390 7,472 27,362 6,001 22
Slide 11: FY2014 Stable Financial Position
FY2014 STABLE FINANCIAL POSITION Net Gearing Ratio Debt Profile by Maturity % % 1 100 25 78 80 Within 1 year 64 62 60 60 1 to 2 year 40 42 2 to 5 year 20 Over 5 year 17 12 0 2009 2010 2011 2012 2013 2014 62 Debt Profile by Currency Debt Profile by Type % % 40 34 Fixed US$ interest rate HK$ 49 Floati
Slide 12: Business Review
BUSINESS REVIEW nee T 12
Slide 13: Snapshot of Land Bank
SNAPSHOT OF LAND BANK Saleable Average Land % of 8.70 million sq.m. as at Dec 2014* GFA No. of Cost saleable City (‘000 sq.m.) projects （RMB/sq.m.） GFA Bohai Rim Tianjin 431 2 1,061 5 Region Shanghai 637 6 3,378 7 Yangtze Nanjing 113 1 16,657 1 River Delta Hefei 2,599 6 2,002 30 Tianjin Bengbu 668 1
Slide 14: Market Leadership in Xiamen, Fujian Province
MARKET LEADERSHIP IN XIAMEN, FUJIAN PROVINCE 6 Largest Land Bank* in Xiamen (As at Dec 2014) Million sq.m. 9 Fuzhou 5 7 2.00 1.82 8 1.60 1.53 1.20 1.10 Quanzhou Longyan 0.65 0.80 0.53 Xiamen 3 2 4 0.45 0.34 1 0.39 0.38 0.26 Zhangzhou 0.40 - Yuzhou Vanke Shimao BCDC CR Land SCE Longfor MingfaPowerlon
Slide 15: FY2014 Contracted Sales
FY2014 CONTRACTED SALES Interest in Contracted Contracted Contracted Contracted Sales # Project Project Sales As of Total GFA ASP (FY2012 vs. FY2013vs. FY2014) City % (RMB mn) (%) (sq.m.) (RMB/sq.m.) 1 Yuzhou Golf Xiamen 100% 196 2% 12,744 15,400 RMB million 2 Yuzhou Shoreline Xiamen 100% 1,151 10%
Slide 16: Monthly Contracted Sales in 2013 vs. 2014
MONTHLY CONTRACTED SALES IN 2013 vs. 2014 Monthly Contracted Sales ( Jan 2013 – Dec 2014) Contracted Sales ASP (RMB’million) (RMB/sq.m.) 2,500 2,410 16,000 14,642 13,799 13,407 14,000 12,655 1,983 2,000 13,417 11,501 10,665 12,000 10,531 9,815 9,604 10,094 11,108 9,488 1,521 1,417 10,000 1,500 8,988
Slide 17: FY2014 Sell-Through Rate Reached 63%
FY2014 SELL-THROUGH RATE REACHED 63% The Average Sell-through Rate is 63% % 80 76 77 76 73 73 69 67 64 65 63 61 60 52 55 50 51 36 37 40 33 20 0 Shoreline Central Riverside Cloud Top Deam Other Fuzhou City Plaza Castle Shanghai Skyline Jade Cental Other Prince Palace Royal Average Coast City Town Int
Slide 18: Land Replenishment in 2014
LAND REPLENISHMENT IN 2014 Nanjing New Project Saleable Total Land Average Estimated Date of Site Area City Project Type Methodology GFA Cost Land Cost ASP Acquisition (sq.m.) (sq.m.) (RMB mn) (RMB/sq.m.) (RMB/sq.m.) 2014.01 Quanzhou Resi/Retail Public Auction 61,481 110,666 85 769 7,000+ 2014.02 Fu
Slide 19: Land Replenishment in 2015
LAND REPLENISHMENT IN 2015 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 January 2015 Xiamen Resi/Com 70,109 305,160 2,740 8,979 20,000+ Auction Xiamen Jimei Project
Slide 20: Ability to Obtain Sustainable Project Finance
ABILITY TO OBTAIN SUSTAINABLE PROJECT FINANCE Usefull Credit Facilities Used Facilities Remaining Facilities Lending Banks City (as of Dec,2014, RMB mn) (as of Dec,2014, RMB mn) (as of Dec,2014, RMB mn) CCB Xiamen 1,246 1,058 188 CCB Longyan 500 230 270 CCB Hefei 395 390 5 ICBC Xiamen 1,502 2 1,500
Slide 21: FY2014 Cash Flow Position
FY 2014 CASH FLOW POSITION (Unaudited) RMB Bn FY2013 FY2014 FY2015 RMB Bn (A) (A) (E) Cash on Hand (at the Cash on Cash on beginning) 3.73 3.88 9.78 Hand Hand 3.88 Cash Proceeds from Contracted Sales 8.04 9.55 12.64 Rental, Management Fee & Rental, Management Net Cooperation Other Income 0.27 0.23 0
Slide 22: Future Perspectives
To} pore = Cee oast sl FRO FUTURE PERSPECTIVES 22
Slide 23: Market Outlook
MARKET OUTLOOK Overall downturn in the market in 1H and obvious discrepancy between different cities 2014 Central government adopted market-oriented way to release the rigid demand Government are establishing a “long-term mechanism” for property market adjustment 2015 Urbanization and the gr
Slide 24: Our Strategies to Weather the Market
OUR STRATEGIES TO WEATHER THE MARKET Product and Pricing Flexibility Experienced Management Diversify product mix to fulfill the user-oriented demand, Highly experienced management team with strong better catered to current market execution capabilities and deep industry insights Flexible pric
Slide 25: FY2015: Detailed Launch Table
FY2015: DETAILED LAUNCH TABLE Planned Sales GFA for Planned Sales GFA Planned Sales GFA Percentage of # Project Name City Product Type Launch Type 1H 2015 for 2H 2015 for FY2015 Planned Sales GFA (sq.m.) (sq.m.) (sq.m.) (%) Apartment Existing 2,023 - 2,023 0% 1 Yuzhou Golf Villa Existing 6,216 - 6,2
Slide 26: FY2015: Detailed Launch Table (Cont'd)
FY2015: DETAILED LAUNCH TABLE (Cont’d) Planned Sales GFA for Planned Sales GFA Planned Sales GFA Percentage of # Project Name City Product Type Launch Type 1H 2015 for 2H 2015 for FY2015 Planned Sales GFA (sq.m.) (sq.m.) (sq.m.) (%) West Strait Economic Zone 563,324 641,338 1,204,662 48% Office Exis
Slide 27: FY2015: Launch Breakdown
FY2015: LAUNCH BREAKDOWN By City By Launch Type % Nanjing Tianjin % 2 4 Xiamen Xiamen Bengbu 27 Fuzhou New 4 Quanzhou Launch Existing Longyan 24 Hefei Fuzhou Zhangzhou 36 8 Shanghai Hefei New Launch Quanzhou Bengbu 6 Shanghai Zhangzhou Longyan Nanjing Existing 5 1 4 Tianjin 76 By Project Type By Per
Slide 28: Major Contributing Projects in 2015
MAJOR CONTRIBUTING PROJECTS IN 2015 Xiamen Yuzhou Riverside City Town Quanzhou Yuzhou City Plaza (廈門禹洲．溪堤尚城) (泉州禹洲城市廣場) Located at the center of Nearby the planning Tong’an, surrouned by new City Hall of Huian national wetland park district High-rise residential High-rises low-rises units, c
Slide 29: Land Banking Strategy
LAND BANKING 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 nearby cities Stick to our core competency Fujian To acquire lan
Slide 30: Appendix
Clouse Topitternationa fez ee lit wa APPENDIX 30
Slide 31: Xiamen Property Market Overview
XIAMEN PROPERTY MARKET OVERVIEW Residential Land Supply and Property Transactions in Xiamen '000 sq.m. RMB/sq.m. 8,000 25,000 6,743 7,000 19,231 6,055 20,000 6,000 15,701 13,973 4,883 5,000 4,543 12,863 4,490 4,109 15,000 3,894 11,600 4,000 11,532 3,174 9,708 3,159 9,891 8,854 11,276 3,124 2,723 10,
Slide 32: Fuzhou Property Market Overview
FUZHOU PROPERTY MARKET OVERVIEW Residential Land Supply and Property Transactions in Fuzhou '000 sq.m. RMB/sq.m. 4,500 4,261 16,372 16,552 18,000 4,000 3,623 14,231 14,188 16,000 3,500 3,159 11,942 14,000 2,905 2,764 3,000 2,577 12,000 2,524 2,410 2,500 8,164 10,000 7,590 7,557 1,877 1,875 2,016 2,0
Slide 33: Shanghai Property Market Overview
SHANGHAI PROPERTY MARKET OVERVIEW Residential Land Supply and Property Transactions in Shanghai '000 sq.m. RMB/sq.m. 40,000 27,212 30,000 34,809 35,000 24,177 21,728 22,278 22,502 25,000 30,000 23,421 20,000 25,000 16,039 20,128 13,971 18,999 20,000 17,941 17,776 16,914 15,000 16,151 10,556 9,655 14
Slide 34: Hefei Property Market Overview
HEFEI PROPERTY MARKET OVERVIEW Residential Land Supply and Property Transactions in Hefei '000 sq.m. RMB/sq.m. 18,000 8,000 15,443 7,190 16,000 6,986 7,000 14,000 6,259 6,351 12,664 6,007 6,000 11,371 11,624 12,000 10,256 10,684 10,765 9,531 9,619 5,000 4,635 8,900 9,403 10,000 8,439 4,100 7,754 4,0
Slide 35: Nanjing Property Market Overview
NANJING PROPERTY MARKET OVERVIEW Residential Land Supply and Property Transactions in Nanjing '000 sq.m. RMB/sq.m. 18,000 16,000 15,570 16,000 14,000 13,521 14,000 12,791 13,116 12,305 12,109 12,075 12,000 11,391 11,651 12,000 10,688 10,775 10,929 10,232 9,912 10,000 9,417 10,000 8,305 7,927 7,621 8
Slide 36: Detailed Land Bank Table
DETAILED LAND BANK TABLE Unit Land Sold and Delivered Pre-sold Saleable Held for Investment Interest in the Project Site Area Location Total GFA Total Saleable GFA Held for Sale Only Land Reserve Cost Saleable GFA GFA Only Project (sq.m.) (RMB/sq.m.) (sq.m.) (sq.m.) (sq.m.) (sq.m.) (sq.m.) (sq.m.) (
Slide 37: 2014 Key Financials
2014 KEY FINANCIALS For the year ended 31 Dec FY2014 FY2013 Change (%) Revenue (RMB’000) 7,836,633 7,470,608 +5% Gross Profit (RMB’000) 2,844,773 2,319,081 +23% Gross Profit Margin (%) 36.3% 31.0% +5.3pp Core Profit (RMB’000) 1,025,336 1,089,922 -6% Core Profit Margin (%) 13.1% 14.6% -1.5pp EPS (RMB
Slide 38: 2014 Key Financials
2014 KEY FINANCIALS (RMB’000) As at 31 Dec 2014 As at 31 Dec 2013 Change (%) Total current assets 29,559,864 21,847,267 +35% Total non-current assets 9,515,143 5,515,054 +73% Total current liabilities 17,278,610 11,483,173 +50% Total non-current liabilities 12,406,598 8,407,243 +48% Total equity 9,3
Slide 39: 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
Yuzhou Properties Company — FY2014 Earnings Presentation on 6ix