Sino Land Co. Ltd. · HKEX:83
Sino Land — FY2022/23 Earnings Presentation
43 slides from Sino Land's earnings presentation, Aug 29, 2023
Slide 1: Annual Results FY 2022/23 Analysts' Briefing
ANNUAL RESULTS FY 2022/23 Analysts’ Briefing 29 August 2023
Slide 2: Disclaimer
Disclaimer This document and the information contained therein are intended to be distributed only to named or designated recipients, and it is not or should not be regarded as any advertisement or propaganda materials aimed to the non-specific public. It should not be reproduced quoted or transmitt
Slide 3: Annual Results for the year ended 30 June 2023
Annual Results for the year ended 30 June 2023 Page Result Snapshots 1 Financial Results Highlights 2-4 Business Review Land Bank 5-9 Property Sales 10-12 Property Rental 13-21 Hotels 22 Prospects 23 Q&As Appendix (Sustainability and Asset enhancement works) 24-33
Slide 4: FY 2022/2023 Result Snapshots
FY 2022/2023 Result Snapshots Strong balance sheet with net cash position Profit Dividend Balance Sheet Underlying Profit Interim Final Net Cash HK$6,088.2 m HK$0.15 HK$0.43 HK$41,967.7 m ↓ 6.7% yoy Total ↑ HK$433.4 m yoy Net Profit HK$0.58 ↑ from HK$0.57 last year Shareholders’ funds HK$5,849.3 m H
Slide 5: Financial Results Highlights
Financial Results Highlights For the financial year ended 30 June 2023 FY 2022/23 FY 2021/22 % Change Revenue declined mainly due to the Revenue HK$11,881.2m HK$15,554.1m -23.6% reduction in property sales of HK$4.1b, partially offset by the improvement in hotels operations of HK$424.6m. Underlying
Slide 6: Earnings drivers – contribution from Segment results
Earnings drivers – contribution from Segment results For the year ended 30 June 2023 FY 2022/23* FY 2021/22* % Change Profit contribution from Property Property Sales HK$3,044.5m HK$5,346.4m -43.0% Sales declined, mainly due to the reduction in property sales The decline in Property Rental was mainl
Slide 7: Strong financial position
Strong financial position Solid balance sheet strength 30 June 2023 30 June 2022 Change Net Cash of HK$41.96b Cash and bank deposits HK$43,932.2m HK$44,784.4m - HK$852.2m Net cash has slightly increased compared to 30 June, 2022 Despite the payments made for Debts (HK$1,964.5m) (HK$3,250.1m) + HK$1,
Slide 8: Land bank
Land bank Qsino LAND COMPANY LIMITED
Slide 9: 19.5 million sq. ft. attributable land bank as of June 23
19.5 million sq. ft. attributable land bank as of 30 June 2023 Balanced and diversified portfolio sufficient to support the Group’s requirement over the next few years Mainland Overseas (in million square feet) Hong Kong Singapore Sydney Total China Properties under development 2.1 2.3 0.4 - 4.8 Inv
Slide 10: Land acquisition during FY 2022/2023
Land acquisition during FY 2022/2023 Replenishment of land bank to optimise earnings potential Attributable Total gross floor Project Date Usage Interest plot ratio area area (sq. ft.) (sq. ft.) KIL 11285, Wing Kwong Residential/ Joint Street / Sung On Street 27/10/2022 278,615 185,278 Commercial Ve
Slide 11: Properties under development – Hong Kong
Properties under development – Hong Kong Good project pipeline (11 projects expected to be completed over next 5 years) Expected Attributable Project Name / Site Location Stake (%) completion date plot ratio area (sq. ft.) FY 2023 / 2024 ONE SOHO Mong Kok 60%* 67,311 Grand Victoria Phase 2 and Phase
Slide 12: Properties under development – Mainland China
Properties under development – Mainland China Attractive projects in Mainland China Attributable Expected Project Name / Site Location Stake (%) plot ratio area (sq. ft.) completion date (in 000’s) FY 2023 / 2024 T102 – 0262, Qianhai Shenzhen 50% 248 Chengdu International Community Chengdu 20% 39 T1
Slide 13: Properties under development – Singapore
Properties under development – Singapore Diversification of development portfolio Total Attributable Expected Acquisition Project Name Usage Interest gross floor area gross floor area completion date date (sq. ft.) (sq. ft.) FY 2026 / 2027 Jalan Anak Bukit, Residential / 30/08/2021 20% 1,004,420 200
Slide 14: Property sales
Property sales Qsino LAND COMPANY LIMITED
Slide 15: Property sales recognised in the financial year
Property sales recognised in the financial year Attractive pipeline of new project launches for 2023 FY 2022/23 FY 2021/22 % Change Gross profit margin Property sales* HK$11,937.3m HK$10,841.8m +10.1% 25.0% (FY 2021/22: 46.7%) Segment results* HK$2,986.2m HK$5,068.9m -41.0% *All figures are attribut
Slide 16: Total attributable contracted sales of ~HK$13.0 billion not yet recognised
Total attributable contracted sales of ~HK$13.0 billion not yet recognised Including ~HK$6.6 billion attributable contracted sales expected to be recognised in FY 2023/24 Project launched in the Financial Year Projects launched in previous financial years Villa Garda Tseung Kwan O, New Territories T
Slide 17: Attractive pipeline of new project launches for FY2023/2024
Attractive pipeline of new project launches for FY2023/2024 Five projects in the pipeline Stake Attributable Attributable number of Location (%) plot ratio area (sq. ft.) residential units Grand Mayfair III 33.33%# 121,041 227 Villa Garda III 40%# 128,559 258 La Montagne 25%# 159,576 200 Yau Tong Ve
Slide 18: Property rental
Property rental | SS ANL LTT LT 7 7 Qsino LAND COMPANY LIMITED
Slide 19: Rental activities
Rental activities Improvement in overall occupancy rate offset by negative rental reversion FY 2022/23 FY 2021/22 % Change Gross Rental Revenue * HK$3,504.8m HK$3,546.1m -1.1% Net Rental Revenue * HK$2,985.7m HK$3,101.6m -3.7% *All figures are attributable to the Group, including attributable share
Slide 20: Diversified and balanced investment properties portfolio
Diversified and balanced investment properties portfolio Providing steady recurring rental income Gross rental revenue* for the past five financial years Breakdown by Carpark Residential sectors 10% 4% HK$ million Industrial 5,000 8% 4,240 4,062 Retail 51% 4,000 3,665 3,546 3,504 Office 27% 3,000 2,
Slide 21: Hong Kong portfolio – retail trade mix
Hong Kong portfolio – retail trade mix Remained largely stable yoy Breakdown by marketable floor area • Higher F&B and Entertainment mix due to: Relaxation of pandemic-related measures leading to higher dine-out and leisure 30.0% 28.6% demand 41.4% 44.1% Draw traffic to other retail categories A
Slide 22: Properties under development mainly comprise of the following properties
Properties under development mainly comprise of the following properties providing an increase of ~6% in commercial spaces under investment properties* Attributable Project Stake (%) plot ratio area (sq. ft.) Hong Kong KIL 11285, Wing Kwong Street / Sung On Street Project Joint Venture 22,753 Mainla
Slide 23: Revaluation of Investment properties
Revaluation of Investment properties A decline of 0.9% in IP fair value (exclude new projects, disposals and exchange difference) Revaluation gain / (loss) on investment properties Total attributable value of investment properties (including (net of deferred taxation) associates and joint ventures
Slide 24: New Investment Properties
New Investment Properties Enhanced portfolio catering to different occupiers’ needs One North Yuen Long • Equity interest: 100% • Attributable plot ratio area: 497,620 sq. ft. • Completion: October 2022 Landmark South 38 Wing Kei Road Wong Chuk Hang Kwai Chung • Equity interest: 60% • Equity interes
Slide 25: Proactive approach in supporting retail tenants
Proactive approach in supporting retail tenants Continuously optimising tenant mix to cater to local taste & preferences Drive footfall and consumption Engaged in promotion activities to help tenants' sales Partnered with major payment gateways to leverage on Government Consumption Voucher Schem
Slide 26: Initiatives to enhance customer engagement
Initiatives to enhance customer engagement Actions to drive footfall and boost tenant sales “Goal Together” The Group invested to install large screens to live broadcast 64 matches of the FIFA World Cup Qatar 2022 at three of our flagship shopping malls, namely Olympian City 2, tmtplaza and Citywa
Slide 27: Initiatives to enhance customer engagement
Initiatives to enhance customer engagement Actions to drive footfall and boost tenant sales Special set-ups and decorations for festive seasons and events to draw traffic to our retail properties Promote and leverage on our “S+ REWARDS” digital programme to boost customers’ loyalty Online and
Slide 28: Hotels
Hotels Qsino LAND COMPANY LIMITED
Slide 29: Hotel operations
Hotel operations Improving revenue and profitability FY 2022/23 FY 2021/22 % Change Hotel Revenue* HK$1,375.5m HK$582.7m + 136.0% Segment operating profit* HK$451.7m HK$92.9m + 386.2% * Including attributable share of associates and joint ventures Occupancy levels FY 22/23 FY 21/22 A meaningful an
Slide 30: Prospects
Prospects Qsino LAND COMPANY LIMITED
Slide 31: Prospects
Prospects - Combined with our strong financial position sustainable business growth strategy and solid foundation, the Group is well positioned to capture opportunities that may arise With the full border reopening between Mainland China and Hong Kong, and the series of initiatives Overall launched
Slide 32: Thank you
5 SINO LAND COMPANY LIMITED Thank you QsiIno LAND COMPANY LIMITED
Slide 33: Q&As
LEE, AMAT EAGT TUT, 7 te Seti Su AC KCueKucnnncent TAMMY Q&As Qsino LAND COMPANY LIMITED
Slide 34: Our Performance in Sustainability Indices
Appendix Our Performance in Sustainability Indices Announcement Achievements International ESG Indices Achievements Local ESG Indices Date as in Jan 2023 Constituent of the S&P Global Dow Jones AA 30 June 2023 Sustainability Asia/Pacific Top 10 Included in The Sustainability Yearbook (Pace-setter) 2
Slide 35: Key Awards
Appendix Key Awards Sino Land received two accolades, namely “Outstanding ESG Company (Diamond Award)” and “ESG Leader (Platinum Award)” at the ESG Achievement Awards 2021/2022 Sino Land received four accolades, namely “Best GRI Report Grand Award”, “Excellence in Environmental Impact Grand Awa
Slide 36: Key Awards
Appendix Key Awards The Group received three accolades, namely “Bronze Award”, “Excellence in Environmental Sustainability in the Workplace” and “Stakeholder Engagement Award” at the HKMA Award for Excellence in Training and Development 2022 Sino Land received “Grand Award” at HKMA Hong Kong Sus
Slide 37: Key Awards
Appendix Key Awards Sino Land received “ESG Leading Enterprise Awards 2022” by Bloomberg Businessweek Chinese Edition Sino Land is awarded “ESG Excellence Award” at The Hong Kong Corporate Governance and ESG Excellence Awards 2022 Sino Land received 3 accolades “Best in ESG Practices”, “ESG Pr
Slide 38: Key Awards
Appendix Key Awards Sino Land was awarded “Best Corporate ESG Strategy – Silver” under Asia’s Best Companies 2023 Received the “Excellence in ESG Innovation Award”, the “Excellence in Decarbonisation Award”, and the “Outstanding Sustainability Performance Award” in Ming Pao ESG Awards 2023 Awa
Slide 39: Sustainability Vision 2030 - Governance
Sustainability Vision 2030 - Governance Appendix Governance By 2030, 100% of approved suppliers are governed by our Contractor/Supplier Code of Conduct Sustainable and Ethical By 2025, 100% of approved suppliers to adhere to our Sustainable Procurement Policy Supply Chain By 2030, 50% of approved su
Slide 40: Sustainability Vision 2030 - Green Living (cont.)
Sustainability Vision 2030 - Green Living (cont.) Appendix Green Living By 2025, purchase 60% of seafood served at the Group’s hotels from sustainable sources By 2030, purchase 100% of seafood served at the Group’s hotels from sustainable sources Material Use, Waste By 2022, reduce single-use plasti
Slide 41: Sustainability Vision 2030 - Innovative Design
Sustainability Vision 2030 - Innovative Design Appendix Innovative Design Achieve BEAM Plus certification for all of our new buildings in Hong Kong By 2030, obtain BEAM Plus Gold or above certification at 100% of our wholly-owned new development projects where applicable Sustainable Buildings Seek t
Slide 42: 2022/2023 Completed Asset Enhancement Works
Appendix 2022/2023 Completed Asset Enhancement Works Fullerton Centre | Wholesale Conversion Remington Centre | Wholesale Conversion 32
Slide 43: 2022/2023 Completed Asset Enhancement Works
Appendix 2022/2023 Completed Asset Enhancement Works Pan Asia Centre | Wholesale Conversion 33