Yuzhou Group Holdings Co., Ltd. · HKEX:1628
Yuzhou — Yuzhou Properties Company — FY2016 Earnings Presentation
43 slides from Yuzhou's earnings presentation, Mar 22, 2017
Slide 1: 2016 Annual Results Presentation
2016 Annual Results Presentation 22 March 2017
Slide 2: Presenters
Presenters Founder, Mr. LAM Lung On Chairman & Executive Director Mr. CAI Minghui Executive President Mr. HUI Chun Yip CFO & Company Secretary 2
Slide 3: Table of Content
Table of Content 1 FY2016 Results Highlights P4 2 Business Overview P6 3 Financial Highlights P14 4 Future Perspectives P23 5 Appendix P31 3
Slide 4: Based in Yangtze River Delta, Lead West Strait Region, Expand National Coverage
Based in Yangtze River Delta Lead West Strait Region Expand National Coverage Yuzhou Plaza Shanghai
Slide 5: FY2016 Results Highlights
FY2016 Results Highlights Based in Yangtze River Delta, Lead West Strait RMB23.2bn, YoY+66%，exceeded Region, Expand National Coverage revised FY contracted sales target Strategic upgrade: Headquarter in SH Vs. FY15 achieved: c. RMB14bn Dual-drivers: “residential development Vs. Revised FY16
Slide 6: Business Overview
Business Overview Yuzhou Plaza Xiamen
Slide 7: Contracted Sales Hit a Record High
Contracted Sales Hit a Record High Outstanding sales performance over the past few years, contracted sales YoY raised substantially in 2016, hit a record high ASP has been going up steadily due to change of product portfolio Flexible pricing strategy in line with market expectation Contracted
Slide 8: Contracted Sales Achieved Substantial YoY Growth
Contracted Sales Achieved Substantial YoY Growth Interest in Contracted As of Contracted Contracted project sales total GFA ASP FY2016 Contracted Sales by City # Project City % (RMB m) (%) (sq.m.) (RMB/sq.m.) 1 Yuzhou Central Coast Xiamen 100% 239 1.0% 16,870 14,175 Bengbu Tianjin 2 Yuzhou Riverside
Slide 9: Monthly Contracted Sales & ASP in 2016 vs. 2015
Monthly Contracted Sales & ASP in 2016 vs. 2015 Monthly Contracted Sales & ASP ( Jan 2015 – Dec 2016) Contracted Sales ASP (RMB’million) (RMB/sq.m.) 18,000 3,000 15,885 2,962 15,418 14,309 16,000 2,492 2,470 13,788 11,028 2,500 13,411 14,000 12,426 2,282 11,745 13,910 2,101 10,939 12,956 11,624 12,0
Slide 10: Win-Win of Scale & Profitability
Win-Win of Scale & Profitability Revenue, Gross profit and Gross profit margin Recognized GFA & ASP RMB million GFA '000 sq.m. ASP RMB '000/sq.m. 20,000 50.0% 1,600 1,483 14.0 36.3% 35.7% 36.3% 1,400 10.4 12.0 16,000 13,672 40.0% 1,200 1,107 10.0 31.0% 9.2 9.0 12,000 10,376 30.0% 1,000 795 736 9.2 8
Slide 11: Strategic Planning of Land Acquisition at Attractive Value Ahead of Time
Strategic Planning of Land Acquisition at Attractive Value Ahead of Time Land bank Average land (‘000 No. of cost % of Land City sq.m.) projects (RMB/sq.m.） bank Land bank of 9.54 million sq.m. as at 31 Dec 2016 Bohai Rim Tianjin 416 4 3,117 4% Region Shanghai 892 9 8,362 9% Nanjing 517 6 9,561 5% Y
Slide 12: An Active yet not Radical Approach to Land Banking
An Active yet not Radical Approach to Land Banking Expand Yangtze River Delta Region, strengthen West Strait Region and Bohai Rim Region Entered Central Region Average land Time of Equity Site area Saleable Total land cost cost acquisition City Project type Methodology interest (sq.m.) GFA (sq.m
Slide 13: Premium Products and Services Quality
Premium Products and Services Quality Focus on the elements of culture and creativity in the design of its projects in order to reinforce market differentiation and consolidate brand premium position Yuzhou Cloud Top International, Yuzhou Riverside City Town & Yuzhou Plaza awarded “Guangsha Awar
Slide 14: Financial Highlights
Financial Highlights Yuzhou Jade Lakeshire Hefei
Slide 15: Highlights of FY2016 Results
Highlights of FY2016 Results As at 31 Dec RMB bn 2016 2015 Change Contracted sales 23.21 14.02 +65.54% Recognized revenue 13.67 10.38 +31.77% Gross margin 36.27% 35.75% +0.52pp Profit for the Year 2.09 1.67 +25.19% Core profit 2.05 1.62 +26.37% Total equity 11.67 10.24 +13.98% Cash on hand 17.42 11.
Slide 16: Highlights of FY2016 Results (Cont)
Highlights of FY2016 Results (Cont) Increasingly diversified revenue streams, with rising contributions from recurring rental income and property management 100% = RMB 100% = RMB 13,672 mn 10,376 mn 100% 0.2% 0.2% 2016 2015 Change 1.3% 1.2% (RMB mn) 98% 0.9% 0.8% Sales of 13,346 10,158 +31.39% pro
Slide 17: Analysis on Recognized Property Sales
Analysis on Recognized Property Sales Recognized property sales* Recognized GFA & ASP RMB mn GFA '000 sq.m. ASP RMB '000/sq.m. 13,346 9,000 10,158 9,172 12,000 1,400,000 10,437 7,681 9,327 1,200,000 9,000 1,000,000 6,740 3,847 800,000 2H 1,482,804 6,000 600,000 1,107,416 1H 400,000 4,019 735,881 3,0
Slide 18: Strong Balance Sheet
Strong Balance Sheet Cash position Total debt RMB mn RMB mn 20,000 17,418 25,787 25,000 16,000 20,083 11,949 20,000 15,404 12,000 9,785 15,000 20,979 8,000 16,096 10,000 11,599 4,000 5,000 3,805 3,987 4,808 0 0 31 Dec 2014 31 Dec 2015 31 Dec 2016 31 Dec 2014 31 Dec 2015 31 Dec 2016 Short-term Long-t
Slide 19: Strong Balance Sheet (Cont)
Strong Balance Sheet (Cont) Net debt(a) / EBITDA Cash / Short term debt x x 3.0 4.0 3.6 2.2 3.0 2.5 2.1 3.0 2.6 1.9 2.0 1.6 2.0 1.5 2.0 1.0 1.0 0.5 0.0 0.0 FY2013 FY2014 FY2015 FY2016 31 Dec 2013 31 Dec 2014 31 Dec 2015 31 Dec 2016 Net debt / Total equity Net debt / Total capitalization(b) 100% 40%
Slide 20: Stable Financial Position & Diversified Financing Channels
Stable Financial Position & Diversified Financing Channels Sustained a manageable net gearing ratio, with successful financing measures that further reduced the average funding cost Moody’s, S&P, Fitch remained our ratings of B1, B+, BB- respectively, In Sept. and Dec. S&P and Moody’s upgraded o
Slide 21: Stable Financial Position & Diversified Financing Channels (Cont)
Stable Financial Position & Diversified Financing Channels (Cont) Diversified funding channels with further enhanced financing structure and reduced exposure to foreign exchange risk Successful financing measures that further optimized debt profile Lowering portion of foreign currency debt New Iss
Slide 22: FY2016 Cash Position
FY2016 Cash Position FY2016 FY2017 (RMB billion) （A） （E） Cash inflow Cash Proceeds from Contracted Sales & other incomes +23.3 +26.2 Cash outflow Paid Land Premium -11.4 -12.0 Construction Cost Capex -6.8 -8.0 Other Expenses - Interest, Tax, Dividend and Others -5.3 -6.2 -23.5 -26.2 22
Slide 23: Future Perspectives
Future Perspectives Huinan Commercial Center Shanghai
Slide 24: Market Outlook
Market Outlook • The Central Economic Work Conference made it clear that the economic growth in 2017 will be "stable" and the monetary policy will be "stable and neutral“ • 2017 monetary environment is no longer fully relaxed. Taking the expected impacts of the dollar interest rate hike into conside
Slide 25: Proactive Approach to Market Changes
Proactive Approach to Market Changes Experienced Management Product and Pricing Flexibility Headquarter reallocated to Shanghai to attract talents from Develop the sales strategy and construction plan the industry according to the project situation in various cities Continue to optimize the man
Slide 26: Premium & Adequate Sellable Resources
Premium & Adequate Sellable Resources Confident to achieve FY2017 contracted sales target of RMB30bn The total supply of goods in FY2017 is RMB 50bn FY2017 Launch details by value of goods Bengbu Tianjin 1% 4% Xiamen 21% New Hefei projects 20% 2H 49% 75% Fuzhou Suzhou 9% 2% Quanzhou 1H Hangzhou 3%
Slide 27: Key Projects in 2017
Key Projects in 2017 Nanjing Yuzhou ‧ Moon Riverside Nanjing Lakeside (南京禹洲‧映月溪山) (南京濱湖里) • Located in the core area of Yuhua District Xishan Bridge Meishan • At one of the New City in community, 2km to the Youfang Binjiang New Town with metro Bridge Station. Very scary flats along line 2 & 8 (under
Slide 28: Key Projects in 2017 (cont)
Key Projects in 2017 (cont) Hangzhou Yuzhou·Riverside Sapphire Shanghai Yuzhou Yongxian Country (杭州禹洲·濱之江) (上海禹洲·雍賢府) • Located in Zhijiang of Hangzhou West • Located in the south center of Lake District and being connected by the Former Beach and equipped Zhijiang bridge and Zizhi tunnel with the w
Slide 29: Strengthen Double-engine Advantage
Strengthen Double-engine Advantage Yuzhou Camelon Xiamen Yuzhou Plaza Shanghai Yuzhou Plaza Yuzhou World Trade Center Hotel Apartment Yuzhou Central Coast Xinglin Yuzhou Commercial Plaza Yuzhou Central Plaza Golden Street 29
Slide 30: Land Bank Strategies
Land Bank Strategies Cultivated and established solid foundations in core cities, leveraged on established brand, accelerated and enhanced the layout of Yangtze River Delta Region to monetize growth potential of major cities Further established land bank in Yangtze River Delta Region Accelerate
Slide 31: Appendix
Appendix
Slide 32: Xiamen Real Estate Market Overview
Xiamen Real Estate Market Overview Residential Land Supply and Property Transactions – Xiamen '000 sq.m. RMB/sq.m. 8,000 35,000 7,000 6,743 30,000 28,769 6,000 6,055 4,490 20,535 25,000 4,883 19,231 25,060 5,000 4,543 15,701 4,109 3,516 20,000 4,000 3,894 13,973 3,124 13,830 12,863 3,159 11,600 11,5
Slide 33: Fuzhou Real Estate Market Overview
Fuzhou Real Estate Market Overview Residential Land Supply and Property Transactions – Fuzhou '000 sq.m. RMB/sq.m 5,000 . 20,000 16,372 16,552 16,410 4,261 17,221 14,231 14,910 4,000 3,623 14,188 15,000 11,942 2,905 12,741 3,023 2,994 3,000 2,764 2,524 2,410 7,590 7,557 8,164 10,000 1,875 2,016 2,00
Slide 34: Shanghai Real Estate Market Overview
Shanghai Real Estate Market Overview Residential Land Supply and Property Transactions – Shanghai '000 sq.m. RMB/sq.m. 25,000 50,000 38,232 20,000 20,128 40,000 17,776 32,001 18,999 14,565 24,177 27,212 15,000 16,914 22,502 14,031 14,973 13,917 30,000 12,820 11,440 11,460 10,000 8,779 8,972 21,728 2
Slide 35: Hefei Real Estate Market Overview
Hefei Real Estate Market Overview '000sq.m. Residential Land Supply and Property Transactions – Hefei RMB/sq.m. 25,000 12,000 21,566 10,944 20,000 18,847 8,500 10,000 17,387 8,775 6,986 7,190 8,000 15,000 6,351 13,884 10,684 6,259 12,799 6,007 6,000 9,531 10,765 11,624 10,580 9,619 8,900 9,403 9,147
Slide 36: Nanjing Real Estate Market Overview
Nanjing Real Estate Market Overview '000sq.m. RMB/sq.m. Residential Land Supply and Property Transactions – Nanjing 18,000 16,454 20,000 15,570 18,817 16,000 14,000 12,791 13,116 12,787 15,971 11,391 12,075 11,651 13,521 15,000 12,000 10,232 9,912 15,140 9,417 9,841 10,000 9,126 10,688 10,775 10,929
Slide 37: Hangzhou Real Estate Market Overview
Hangzhou Real Estate Market Overview '000sq.m. RMB/sq.m. 20,000 Residential Land Supply and Property Transactions – Hangzhou 18,673 20,000 16,663 17,313 15,000 13,529 15,484 15,878 15,000 14,581 12,867 13,587 10,118 10,000 8,197 8,663 8,903 10,000 6,903 7,167 6,746 8,402 7,210 7,486 6,219 5,000 5,00
Slide 38: Suzhou Real Estate Market Overview
Suzhou Real Estate Market Overview Residential Land Supply and Property Transactions – Suzhou '000sq.m. RMB/sq.m. 14,000 20,000 11,763 18,791 12,000 16,234 10,000 9,029 15,000 11,226 8,089 7,551 13,163 7,472 7,460 11,888 12,116 7,002 8,000 6,411 7,701 5,322 10,000 6,000 8,879 4,000 5,000 4,742 4,400
Slide 39: Wuhan Real Estate Market Overview
Wuhan Real Estate Market Overview Residential Land Supply and Property Transactions – Wuhan 50,000 '000sq.m. 44,028 RMB/sq.m. 10,000 9,430 8,812 40,000 7,796 8,000 7,152 7,093 28,812 30,000 24,864 6,000 23,537 21,511 5,060 20,000 16,255 16,440 17,993 4,000 14,807 10,856 3,267 10,000 2,276 2,178 2,00
Slide 40: FY2016 Key Financials
FY2016 Key Financials For the Year Ended 31 Dec FY2016 FY2015 Change Revenue (RMB’000) 13,671,828 10,375,501 +31.77% Gross Profit (RMB’000) 4,958,912 3,709,323 +33.69% Gross Profit Margin (%) 36.27% 35.80% +0.47pp Core Profit (RMB’000) 2,088,922 1,619,953 +26.22% Core Profit Margin (%) 15.28% 15.60%
Slide 41: FY2016 Key Financials (Cont)
FY2016 Key Financials (Cont) As at 31 Dec As at 31 Dec (RMB’000) Change 2016 2015 Total current assets 52,416,382 44,738,520 +17% Total non-current assets 16,444,130 8,107,338 +103% Total current liabilities 35,326,669 25,625,902 +38% Total non-current liabilities 21,861,107 16,978,601 +29% Total eq
Slide 42: 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
Slide 43: Q & A Thank you!
IR Wechat Group Weibo Q&A Thank you!
Yuzhou Properties Company — FY2016 Earnings Presentation on 6ix