New World Development Co. Ltd. · HKEX:17
New World Development — H1 FY2019 Earnings Presentation
28 slides from New World Development's earnings presentation, Feb 27, 2019
Slide 1: FY2019 interim results - 27 Feb 2019
FY2019 interim results - 27 Feb 2019
Slide 2: Disclaimer - Important Notice
DISCLAIMER - IMPORTANT NOTICE The information contained in these materials is intended for reference and general information purposes only. Neither the information nor any opinion contained in these materials constitutes an offer or advice, or a solicitation, inducement, invitation, recommendation o
Slide 3: Corporate structure
Corporate structure HK stock code 17/ US ADR NDVLY HK Hang Seng Constituent Stock/ Shanghai Shenzhen connect stock Property development and investment in Hong Kong New World China Land Wholly owned subsidiary Property development and investment in China NWS Holdings HK stock code 659/ Interest: 61%
Slide 4: Prospects
Prospects FY2019 interim results catalysts Strategically positioned in the Greater Bay Area; capture growth with a series of unique catalysts Hong Kong property development . Ample saleable resources with approximately 4,700 residential units + commercial projects . Contracted sales for FY2019 booki
Slide 5: Financials
Financials
Slide 6: Financial highlights
Financial highlights (HK$ million) 1HFY2019 1HFY2018 YoY change (%) Revenues 49,267.1 27,935.4 76% Segment results (including Asso/ JV) 12,338.6 8,114.5 52% Changes in fair value of investment properties (including Asso/ JV) 6,404.6 7,471.3 -14% Profit before taxation 17,592.2 15,728.2 12% Profit at
Slide 7: Breakdown of underlying profit
Breakdown of underlying profit 16,000 13,507.9 (1,952.4) 14,000 (6,252.8) 12,000 10,000 8,000 21.4 72.3 (4.2) 4.2 (0.3) 5,396.1 6,000 4,000 2,000 - Profit after tax NCI Reversal of fair Release of fair Hotel related NWSH related NWDS related Others Underlying profit value surplus on value gain on IP
Slide 8: Segment performance
Segment performance (HK$ million) 1HFY2019 1HFY2018 (1) Property development Revenue Segment results Revenue Segment results Hong Kong 21,007.3 5,734.6 1,273.7 729.1 Mainland China 8,898.0 3,150.5 8,619.9 3,997.3 29,905.3 8,885.1 9,893.6 4,726.4 (2) Property investment Hong Kong 940.4 705.4 834.1 64
Slide 9: Liquidity and capital resources
Liquidity and capital resources Source of borrowings (including IRS) Floating rate Fixed rate 61% 39% Maturity profile of borrowings within 1 year in 2nd year in 3rd-5th year after 5 years 20% 23% 47% 10% Currency profile of borrowings HKD USD & others RMB 74% 21% 5% (As at 31 Dec 2018) 17.HK - New
Slide 10: Operations
Operations
Slide 11: Business focus: well positioned in the GBA
Business focus The Greater Bay Area (“GBA”) The Group is well positioned In the GBA with our unique ecosystem NWD & NWC Living community Working community Mall and retail clusters Health care & wellness NWSH Insurance* Road Environmental Source: HKSAR Government Facilities management & construction
Slide 12: Hong Kong property sales
Hong Kong property sales Key contributors in 1HFY2019 property development bookings THE PAVILIA BAY MOUNT PAVILIA ARTISAN HOUSE THE PARKVILLE PARK VILLA THE PAVILIA HILL The Masterpiece FLEUR PAVILIA HK attributable contracted sales HK$ bn 2018.07.01-2018.12.31 3.4 2019.01.01-2019.02.17 0.7 FY2019 a
Slide 13: Our innovation - PropTech x Blockchain
Our innovation - PropTech x Blockchain 1st property purchase Blockchain platform in Hong Kong All-in-one support digitalized platform for property sales In collaboration with ASTRI and BOCHK Procedures in property purchase FinTech PropTech 1. Confirm registration and arrange deposit Online registrat
Slide 14: Hong Kong property sales
Hong Kong property sales Key projects to be launched No of units ARTISAN GARDEN 294 Waterloo Road project 240 Lung Tin Tsuen project 313 Tai Wai Station project* 3,090 Subtotal A 3,937 NWD inventory 232 JV inventory 525 Subtotal B 757** Total (A+B) 4,694 (*To be launched in FY2020 by phases/ **As at
Slide 15: Hong Kong landbank
Hong Kong landbank Ready landbank Development Investment Total % (Attributable GFA’ 000 sq ft) property property Hong Kong Island 165 488 653 7% Kowloon 1,752 1,099 2,851 30% New Territories 2,290 3,862 6,152 63% Total 4,207 5,449 9,656 • Key IP project: HK SKYCITY, King Lam Street office project, K
Slide 16: Hong Kong landbank
Hong Kong landbank Attributable land Farmland (‘000 sq ft) % area Yuen Long and Tuen Mun District 11,600 69% North District 2,246 13% Shatin and Taipo District 1,901 11% Sai Kung District 1,118 7% Total 16,865 Farmland under active negotiation* Attributable GFA % (GFA mil sq ft) Yuen Long District 1
Slide 17: New acquisition
New acquisition State Theatre Building redevelopment . Acquisition of over 80% ownership of State Theatre Building, a residential and commercial property located at No. 277 to 291 King’s Road, North Point has been completed . The application for compulsory sale under the “Land (Compulsory Sale for R
Slide 18: Kai Tak Sports Park
Kai Tak Sports Park Main features Main stadium 50,000 seats Indoor sports centre 10,000 seats Ancillary sports hall 500 seats Public sports ground 5,000 seats Commercial facilities About 600,000 sq ft Kai Tak Sports Park . Kai Tak Sports Park is Hong Kong‘s most important investment in sports infras
Slide 19: Mainland China property sales
Mainland China property sales Key projects booked in 1HFY2019 Guangzhou Covent Garden Guangzhou Park Paradise Guangzhou Foshan Canton First Estate Wuhan New World ‧ Times Beijing New World ‧ Li Zun Shenyang New World Garden Contracted sales 1HFY2019 1HFY2018 Sales proceeds/ RMB bn 9.3 8.6 Overall AS
Slide 20: Mainland China property sales
Mainland China property sales Development property saleable resources (excl carpark) GFA sq m (‘000) Residential 1,007 Non residential 632 Total 1,639 Development property saleable resources (excl carpark) % of total Southern (Guangzhou, Shenzhen, Foshan) 27% Central (Wuhan) 19% Eastern (Ningbo) 9%
Slide 21: Mainland China completion
Mainland China completion Fiscal year/ sq m 1HFY2019 2HFY2019E* FY2019E DP excl. carpark 264,898 605,070 869,968 DP incl. carpark 344,102 687,703 1,031,805 IP excl. carpark 7,514 226,811 234,325 IP incl. carpark 10,461 481,728 492,189 DP + IP excl. carpark 272,412 831,881 1,104,293 DP + IP incl. car
Slide 22: Mainland China landbank
Mainland China landbank Total GFA Total GFA Region/ sq m ‘000 (excl % (incl carpark) carpark) Southern region 2,844 40% 3,471 Central region 1,168 17% 1,642 Eastern region 525 8% 829 Northern region 708 10% 1,171 North-eastern region 1,791 25% 2,143 Total 7,036 9,256 Of which, core projects* 5,671 7
Slide 23: Mainland China new acquisition and partnership
Mainland China new acquisition and partnership Guangzhou Hanxi project with Guangzhou Metro . In November 2018, NWC engaged in joint development of a parcel of land at Hanxi Changlong in Guangzhou, by acquiring 65% of the equity interest from a subsidiary of Guangzhou Metro Group . The project compr
Slide 24: Hong Kong investment properties
Hong Kong investment properties Key projects in HK 1HFY2019 occupancy Office New World Tower 99% Manning House 100% K11 ATELIER Over 80% Mall HK K11 TST 97% D‧PARK 95% THE FOREST 98% Pearl City 89% Key operations performance in 1HFY2019 Gross rental income Approx. HK$0.9 billion HK rental segment ma
Slide 25: Hong Kong Victoria Dockside
Hong Kong Victoria Dockside K11 MUSEA • Offer world-class experience in retail, art, culture, entertainment and dining • Extensive selection of international brands, many of which are pop-up stores and flagship stores that are setting their first presence in Hong Kong • Current pre-leasing rate over
Slide 26: Avenue of Stars
Avenue of Stars Avenue of Stars (“AoS”) . The Avenue of Stars, which connects Victoria Dockside, was reopened in January 2019 . Mr. James Corner, a world renowned landscape architect and designer, together with a number of international and local designers, brings a number of innovative and interact
Slide 27: Mainland China investment properties
Mainland China investment properties 1HFY2019 Key projects occupancy Office Wuhan New World International Trade Towers 98% Shanghai K11 – Office 94% Retail Beijing New World Centre 100% Shanghai K11 – Art Mall 97% Guangzhou Central Park-view 97% Wuhan Guanggu K11 – Art Mall 84% Serviced Apartment Gu
Slide 28: Thank You
U1 New World Development Company Limited oy Thank You —
New World Development Company — H1 FY2019 Earnings Presentation on 6ix