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

Yuzhou — Yuzhou Properties Company — H1 2011 Earnings Presentation

38 slides from Yuzhou's earnings presentation, Aug 31, 2011

  1. Slide 1: Interim Results Announcement

    Interim i Results l Announcement 31 August 2011 1

  2. Slide 2: Disclaimer

    DISCLAIMER These materials have been prepared by Yuzhou Propertiees 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 d development d l 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 T 3 largest Top l t cities F jian Province iti iin Fujia P i z nal developer over the long haul Vision to become a nation z Defensive land cost through smart land acquisitions :

  4. Slide 4: Table of Contents

    TABLE OF CONTENTS I. 2011 INTERIM FINANCIAL HIGH HLIGHTS II. REVIEW OF 1H2011 BUSINESS OPERATIONS III. FUTURE PERSPECTIVES IV. APPENDIX 4

  5. Slide 5: 2011 Interim Financial Highlights

    2011 INTERIM FINANCIAL HIGHLIGHTS 5

  6. Slide 6: Highlights of 2011 Interim Results

    HIGHLIGHTS OF 2011 INTERIM REESULTS FINANCIAL HIGHLIGHTS FOR THE SIX MONTHS ENDED 30 JUNE 2011 Compared with 1H2010 z Recognized revenue: RMB766.3 million (‐RMB1,277.6 million or ‐62.5%) z Contracted sales: RMB2,067.3 million (+RMB1,054.1 million or +104.0%) z Profit attributed to shareholders: RMB3

  7. Slide 7: 1H2011 Key Profit & Loss Items

    1H2011 KEY PROFIT&LOSS ITEMS Revenue* Gross Profit RMB million RMB million 2H 2H 1H 1H Profit for the Period Profit Attributable to Shareholders RMB million RMB million 2H 2H 1H 1H * After 5.5% Business Taxes 7

  8. Slide 8: 1H2011 Revenue Analysis: Recognized Property Sales

    1H2011 REVENUE ANALYSIS : (I) R RECOGNIZED PROPERTY SALES Property Sales* Property Sales by 1H vs. 2H RMB million illi RMB million illi 2H 1H Recognized g GFA & ASP Recognized g Sales byy Region g Contracted GFA ASP % (sq.m.) (sq.m.) * After 5.5% 5 5% Business Taxes 8

  9. Slide 9: 1H2011 Revenue Analysis: Rental Income & Others

    1H2011 REVENUE ANALYSIS : (II) RENTAL INCOME & OTHERS Rental Income & Others Rental Income of Yuzhou World Trade Center RMB million RMB million Yuzhou World Trade Center Site Area 19 454 sq.m. 19,454 sq m Total GFA 204,476 sq.m. (Residential: 135,769) Ph Phase I 46 445 sq.m. 46,445 O Occupancy rate:

  10. Slide 10: 1H2011 Key Balance Sheet Items

    1H2011 KEY BALANCE SHEET ITEM MS Cash Position Total Debt RMB million RMB million Long‐term Short‐term Total Asset Shareholders’ Equity Shareholders RMB million RMB million 10

  11. Slide 11: 1H2011 Stable Financial Position

    1H2011 STABLE FINANCIAL POSITION Net Gearing Ratio Debt Profile by Maturity % % Debt Profile byy Currencyy Debt Profile byy Type yp % % HK$ :3‐year @ 10% US$:5‐year @ 13.5% Coupon rate 11

  12. Slide 12: Review of 1H2011 Business Operations

    REVIEEW EW OF 1H2011 BUSINESS OPERATIONS 12

  13. Slide 13: 1H2011 Contracted Sales +104% Year-on-Year

    1H2011 CONTRACTED SALES +104 4% YEAR YEAR‐ON‐YEAR ON YEAR Contracted Sales Contracted As of Total Contracted Contracted # Project City Sales GFA ASP (1H2010 vs. 1H2011) (RMB mn) (%) (sq.m.) (RMB/sq.m.) RMB million Yuzhouu University City 1 Xiamen 382 19% 53,502 7,155 Phase II Yuzhouu University City

  14. Slide 14: More Diversified Revenue Streams

    MORE DIVERSIFIED REVENUE STR REAMS 2010 Contracted Sales by City 1H2011 Contracted Sales by City % % 2010 Contracted GFA byy Cityy 1H2011 Contracted GFA byy Cityy % % 14

  15. Slide 15: 1H2011 Sell-Through Rate Reached 68%

    1H2011 SELL SELL‐THROUGH THROUGH RATE REA ACHED 68% The Average Selll‐through Rate is 68% % 68% GFA Launched 68,746 21,110 10,954 8,585 18 8,838 32,877 1,782 33,258 95,066 2,234 (sq.m.) GFA Sold 55 464 55,464 19 777 19,777 9 006 9,006 4 967 4,967 10 0 267 0,267 21 551 21,551 182 16 057 16,057 60 015

  16. Slide 16: Land Replenishment in 1H2011

    LAND REPLENISHMENT IN 1H2011 1 Date of Total Saleable GFA Average Land Cost City Project Type Methodology Acquisition (sq.m.) ( (RMB/sq.m.) q ) Mar 2011 Shanghai SOHO/Serviced Apt M Merger & Acquisition 211,418 1,324 Participation with May 2011 Quanzhou Resi/Com/Retail 491,800 338 local Government T

  17. Slide 17: Snapshot of Land Bank

    SNAPSHOT OF LAND BANK Total Saleable Land Cost City GFA (sq.m.) (RMB/sq.m.) 5.5 million sq.m. as at 30 June 2011 Pan – Bohai Rim Tianjin 449,793 668 Shanghai 600,374 1,789 Yangtze River Delta Hefei 1,147,808 377 Xiamen 2,464,491 2,098 West Strait Economic Fuzhou 340,291 2,415 Zone Q Quanzhou h 491,8

  18. Slide 18: Ability to Obtain Sustainable Project Finance

    ABILITY TO OBTAIN SUSTAINABLEE PROJECT FINANCE Credit Facilities Used Facilities Remaining Facilities # Lending Banks City (as of 30 June, RMB mn) (as of 30 June, RMB mn) (as of 30 June, RMB mn) 1 Bank of Comm Hefei 300 150 150 2 Minsheng Bank Xiamen 11 11 ‐ 3 Bank of Shanghai Shanghai 225 212 13 4

  19. Slide 19: Solid & Healthy Cash Position

    SOLID & HEALTHY CASH POSITION N RMB Bn 2011 Targeted Cash Flow Position Cash on Hand (30 June 2011) 1.95 2H Cash Proceeds from Target Contracted Sales (1) 4.00 RMB Bn Cash h 2H Investment Property Income 0 05 0.05 Target Contracted New Domestic Debt on Sales Cash Proceeds(1) Drawdown 8.00 Hand 4.00

  20. Slide 20: Future Perspectives

    2) FB it 1th RE AR a BRS TS” YUZHOU PROPERTIES COMPANY LIMITED (Stock code: 01628.HK)

  21. Slide 21: 2H2011: Flexible Pricing for Mass Products

    2H2011: FLEXIBLE PRICING FOR M MASS PRODUCTS Hefei Yuzhou Skyline Xiamen Yuzhou Sunshine Garden (合肥禹洲．天境) (厦门禹洲．阳光花城) Acquisition Jun 2010 Construction Feb 2011 Pre‐sale Jul 2011 Total Resi: 53,472 , Saleable GFA (sq.m.) Retail: 5,063 Contracted Sales of Yuzhou Skyline Contracted Sales of Yuzhou Sun

  22. Slide 22: 2H2011: Holding Power for Scarce Resources

    2H2011: HOLDING POWER FOR SC CARCE RESOURCES 禹洲．高爾夫) Yuzhou Golf (禹 z The unique golf villas with a panoramic view of 194km coastline – the only one in West Strait Economic Zone z Next door to Xiamen Orient Golf Club, convenniently access to the unreplicable resources Total Site 55,986 sq.m. Origina

  23. Slide 23: Flexible Strategy Led to Improved August Sales

    FLEXIBLE STRATEGY LED TO IMPR ROVED AUGUST SALES Monthly Contracted Saales ( Jan – Aug 2011) Contracted Sales ASP (RMB’ million) (RMB/sq (RMB/sq.m.) m) 800 11,132 11,069 12,000 10,406 10,611 689 700 9,839 10,000 604 600 8,972 9,830 495 8,000 500 6,328 400 344 6,000 285 300 253 4,000 190 181 200 2 00

  24. Slide 24: Increasing Launches in the Coming Months

    INCREASING LAUNCHES IN THE CO OMING MONTHS Available LAUNCH SCHEDULE CITY TYPE PRODU UCT GFA (sq.m.) Sep Oct Nov Dec 1 Yuzhou University City Xiamen Existing Apt/Reetail 54,720 2 Yuzhou Golf Xiamen New Launch Villa/A Apt 88,900 3 Yuzhou Sunshine Garden Xiamen New Launch Apt/Reetail 30,125 4 Yuzhou S

  25. Slide 25: Market Leadership in Xiamen, Fujian Province

    MARKET LEADERSHIP IN XIAMEN, FUJIAN PROVINCE Fuzhou 1 Yuzhou University City 禹洲．大學城 2 Yuzhou Sunshine Garden 禹洲．陽光花城 Quanzhou Xiamen 24 3 Yuzhou Shoreline 禹洲．尊海 1 4 Yuzhou Pacific Creek Uptown 禹洲．溪堤尚城 5 Yuzhou Golf 禹洲．高爾夫 6 Yuzhou Castle above City 禹洲．城上城 7 Yuzhou World Trade Center 禹洲．世貿中心 5 Larges

  26. Slide 26: Completion Schedule

    COMPLETION SCHEDULE Attr’ 1H2011 (sq.m.) 2H2011 (sq.m.) Project Name City Pro oduct Interest (%) Total GFA Saleable GFA Total GFA Saleable GFA 1 Yuzhou University City Xiamen 100% Apt//Retail ‐ ‐ 245,377 207,921 2 Yuzhou Castle above the City Xiamen 98% Apt//Retail ‐ ‐ 192,433 130,262 3 Yuzhou h Gus

  27. Slide 27: Land Banking Strategy

    LAND BANKING STRATEGY Focus on the West Strait Economic Zone e To solidify the long‐time market leadership To expand into lower‐tier cities such as Zhangzhou Penetrate to existing cities in other regio ons To leverage on the established networks & resources To build the brand image in local markets

  28. Slide 28: Appendix

    =_ " oe, i 2) FB it 1th RE AR a BRS %& YUZHOU PROPERTIES COMPANY LIMITED (Stock code: 01628.HK) —— OST OTT ae “gh shia aah 28

  29. Slide 29: Xiamen Property Market Overview

    XIAMEN PROPERTY MARKET OVEERVIEW Residential Land Supply pp y and Property P p y Transactions in Xiamen ’000 sq.m. RMB / sq.m. 10,000 12,030 14,000 8,753 12,000 8,000 9 9,722 8 384 8,384 8 830 8,830 11,161 11 161 10,000 10 000 6,000 6,500 8,000 5,067 3,8495,739 4,133 4,180 3,515 5,464 6,000 4,000 3,

  30. Slide 30: Fuzhou Property Market Overview

    FUZHOU PROPERTY MARKET OVEERVIEW Residential Land Supply pp y and Property P p y Transactions in Fuzhou ’000 sq.m. RMB / sq.m. 10,000 14,026 15,000 8,000 11,349 , 8,000 6,200 10,000 7,315 7,891 5,647 6,000 5,234 4,594 6,067 4,738 4,000 3,798 4,060 3,404 3,080 2,780 2,166 5,235 5,000 1,871 1,965 4,27

  31. Slide 31: Shanghai Property Market Overview

    SHANGHAI PROPERTY MARKET O OVERVIEW Residential Land Supply pp y and Prroperty p y Transactions in Shanghai g ’000 sq.m. RMB / sq.m. 35,000 32,800 25000 30,000 28,500 19,126 26,200 26,313 17,539 20000 24,712 25,000 25 000 20,000 11,790 15000 15,545 8,250 43 9,24 13,759 15,000 7,039 10000 6,698 9,212

  32. Slide 32: Hefei Property Market Overview

    HEFEI PROPERTY MARKET OVERV VIEW Residential Land Supply pp y and Property p y Transactions in Hefei ’000 sq.m. RMB / sq.m. 14,000 12,978 6,022 6,250 7,000 11,800 12,000 6,000 10,000 9 380 9,500 9,380 9 500 8,949 5,000 8,700 4,095 3 3,425 7,610 8,000 3,154 4,000 2,799 2,874 5,800 5,954 6,000 5,400 4

  33. Slide 33: Detailed Land Bank Table

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

  34. Slide 34: Diversifying Land Bank

    DIVERSIFYING LAND BANK FY 2010 1H 2011 By City By City % % By Project Type By Project Type % % 100% = 4.92 million sq.m. 100% = 5.49 million sq.m. 34

  35. Slide 35: 1H 2011 Key Financials

    1H 2011 KEY FINANCIALS For the period p ended 30 Jun 1H2011 1H2010 Change (%) Revenue (RMB’000) 766,271 2,043,877 ‐63% Gross Profit (RMB (RMB’000) 000) 336 352 336,352 1 009 212 1,009,212 ‐67% Gross Profit Margin (%) 44% 49% ‐5 pp Net Profit (RMB’000) 373,101 520,666 ‐28% EPS (RMB/share) 0.16 0.22 ‐

  36. Slide 36: 1H 2011 Key Financials

    1H 2011 KEY FINANCIALS (RMB’000) As att 30 Jun 2011 As at 31 Dec 2010 Change (%) Total current assets 13,006,265 10,881,309 +20% Total non‐current assets 4,567,805 3,711,283 +23% Total current liabilities 7,653,991 5,483,550 +40% Total non‐current liabilities 4,833,446 4,285,013 +13% T t l equity To

  37. Slide 37: 1H 2011 Revenue Breakdown

    1H 2011 REVENUE BREAKDOWN (RMB’000) (RMB 000) 1H2011 1H2010 Change 100%=RMB 766 million 100% RMB 2 100%=RMB 044 million 2,044 illi 100% 1% 1% 3% Sales of properties 724,344 2,012,761 ‐6 64% 3% 95% Rental income 19,827 17,026 +1 16% 90% 98% Property 95% 22,100 14,090 +5 57% management fees 85% Total

  38. Slide 38: Cost Structure

    COST STRUCTURE Cost of Properties Sold as a % of o Revenue from Sale of Properties (FY2008 vs vs. FY Y2009 vs vs. FY2010) % 100% GP GP GP Margin1 Margin1 Margin1 80% : : : 42% 49% 9% 41% 60% 1% 3% 3% Total T t l Total 40% Costs: 37% Total 42% Costs: 58% 3 30% 51% Costs: 59% 20% 15% 1 18% 19% 0% FY20

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