Kaisa Group Holdings Ltd. · HKEX:1638
Kaisa — FY2020 Earnings Presentation
39 slides from Kaisa's earnings presentation, March 2021
Slide 1: Annual Results Presentation
Annual Results Presentation March 2021
Slide 2: Disclaimer
Disclaimer This presentation may contain forward-looking statements. Any such forward-looking statements are based on a number of assumptions about the operations of the Kaisa Group Holdings Ltd. (the “Company”) and factors beyond the Company's control and are subject to significant risks and uncert
Slide 3: Table of Contents
Table of Contents 01. 2020 Results Highlights 02. 2020 Operational Review 03. 2021 Outlook 04. 2020 Financial Highlights and Liability Management 05. Appendix
Slide 4: 01. 2020 Results Highlights
SERLARLESE 1638 01. 2020 Results Highlights
Slide 5: 2020 Results Highlights
2020 Results Highlights Contracted Sales Landbank URP Conversion URP Pipeline² RMB 106.9 bn 28.8 mn sqm 1.8 mn sqm Over 50.0 mn sqm Greater Bay Area: 55% Site Area Hit new record high (by Attributable GFA) Beat full year target T1 cities: 51% RMB64 bn saleable resources 201 URPs +21% yoy (by Saleabl
Slide 6: 02. 2020 Operational Review
On f= 3k x SERLARLESE 1638 02. 2020 Operational Review
Slide 7: Contracted Sales Hit Record High at RMB107 bn
Contracted Sales Hit Record High at RMB107 bn Contracted Sales Up 21% YoY to RMB107 bn Contracted GFA Up 33% to 6.2 mn sqm (RMB mn) ('000 sqm) 106,896 88,120 6,165 70,059 4,642 3,837 FY2018 FY2019 FY2020 FY2018 FY2019 FY2020 Over 1/3 of Contracted Sales from URPs Contracted ASP by Region (RMB mn) (R
Slide 8: Strong Sales Performance from the Greater Bay Area
Strong Sales Performance from the Greater Bay Area 58% Sales from the Greater Bay Area Top 5 Sales Contribution by City Pan-Bohai Bay Rim, 11% 27% Western China, 10% Central China, 4% Greater Bay Area, 58% 8% 8% Yangtze River 7% Delta, 17% 5% Shenzhen Guangzhou Huizhou Dongguan Shanghai 40% Sales fr
Slide 9: Kaisa Products Were Sought After by Customers
Kaisa Products Were Sought After by Customers Increasing sell-through rate due to flexible adjustment National & Regional in product mix and launch schedule Ranking Contracted Sales Sell through rate=65% ◆24th in CRIC attributable sales national ranking Office and others 7% (RMB mn) 165,000 ◆2nd amo
Slide 10: Over 70% Recognized Revenue from the Greater Bay Area
Over 70% Recognized Revenue from the Greater Bay Area Recognized Revenue Recognized GFA Recognized ASP (RMB mn) (‘000 sqm) (RMB/sqm) 2,828 18,103 51,194 2,548 17,206 17,209 43,849 2,097 36,081 FY2018 FY2019 FY2020 FY2018 FY2019 FY2020 FY2018 FY2019 FY2020 By Region By City T3 Cities, 8% Yangtze Rive
Slide 11: High Quality and Sufficient Landbank to Support Growth
High Quality and Sufficient Landbank to Support Growth Saleable GFA Attributable Ratio Resources Completed yet Completed,sold yet sold 28.75 67% 670,120 5% recoginized recognized 1% mn sqm By GFA RMB mn By Greater Bay Area¹ construction T1 Cities²% Urban Renewal % status Under % Held for future cons
Slide 12: Land Replenishment Mainly in the Greater Bay Area
Land Replenishment Mainly in the Greater Bay Area No. of New Projects Attributable Ratio Attributable GFA Saleable Resources 47 projects 60% 5.65 mn sqm RMB 190.0 bn By GFA Land Cost Central Western Pan-Bohai （RMB/sqm） Yangtze M&A Urban China China Bay Rim 15,337 River Delta 18% Renewal 16% 14% 1% 6
Slide 13: Hong Kong Projects with HK$30 bn Saleable Resources
Hong Kong Projects with HK$30 bn Saleable Resources Remaining Saleable Total Launch Land Cost Estimated ASP Resources as of Feb Project Shareholding GFA Time (HK$/sqft) (HK$/sqft) 2021 (sqft) (RMB mn) The Concerto, Cheung Sha Wan 75% 36,000 Dec 2020 9,900 20,300 240 Kai Tak Project 50% 515,000 Apr 2
Slide 14: Urban Renewal Pipeline Drives Growth
Urban Renewal Pipeline¹Drives Growth No. of URPs Site Area² Presence Professional Team 86% 201 projects Over 50 mn sqm Shenzhen & Guangzhou By Saleable Resources 930 persons Geographic Distribution of URPs in the Greater Bay Area³ 深圳 Shenzhen 深圳 Guangzhou 120个项目 120 projects 120个项目 26 projects 占地面积：
Slide 15: Beat Full Year URP Conversion Target
Beat Full Year URP Conversion Target “95% Consents” Regulation to Speed up URP Conversion Issued Time Documents Core Content Issued by Dec 2020 Regulations of Shenzhen With consents of 95% of total property owners and 95% The Standing Committee Special Economic Zone of total area entitled, governmen
Slide 16: Renowned Initiative in Environmental, Social and Corporate Governance
Renowned Initiative in Environmental, Social and Corporate Governance 1st developer among peers to obtain Upgraded to BB from B by MSCI Granted low ESG risk rating by Sustainable Finance Framework and Sustainalytics Second Party Opinion Upgraded ESG rating ESG risk score B 18.7 ESG Risk BB Low risk
Slide 17: 03. 2021 Outlook
SAN (= 3k SERLARLESE 1638 03. 2021 Outlook
Slide 18: Future Strategy
Future Strategy Seize the opportunity of the country's "14th Five-Year Plan" and reinforce the leading edge in urban renewal Focus on profit and core resources and strengthen the competitive advantage of property business Promote new business development and make good use of industrial synergy Conti
Slide 19: Four Big Focus in 2021
Four Big Focus in 2021 Profitability Focus Greater Bay Area Focus ◆Speed up project turnover ◆Take the opportunities raised from favorable ◆Accelerate sales regional policies ◆Boost revenue ◆Deepen presence in Shenzhen, Guangzhou ◆Take cost advantages from economies of and their surrounding cities s
Slide 20: 2021 Saleable Resources
2021 Saleable Resources Saleable Resources Saleable GFA No. of projects RMB 191.2 bn 10.7 mn sqm 116 projects Saleable Resources T3 Cities, Pan-Bohai Bay Rim, 12% 8% Serviced apartment Office and others 8% 12% Western T1 Cities, China, 9% 25% By City Central By Region By product China, 8% Greater Ba
Slide 21: Expect to Convert URPs with ~4.2 mn sqm GFA
Expect to Convert URPs with ~ 4.2 mn sqm GFA And Over RMB200 bn Saleable Resources in 1-2 years ASP of Expected Saleable Nearby Saleable No. Project Location Type Area* Projects Resources (’000 sqm) (RMB/sqm) (RMB mn) 1 Shenzhen Hengling Old Village Longhua, Shenzhen Residential 70 70,000 4,900 2 Sh
Slide 22: 04. Financial Highlights and Liability Management
04. Financial Highlights and Liability Management
Slide 23: 2020 Financial Highlights
2020 Financial Highlights Cashflow Improvement Cash and Bank Deposits (RMB mn) Net Gearing Ratio¹ Quick Ratio² 2.0X 47,113 236% 36,978 1.3X 144% 1.1X 22,924 98% FY2018 FY2019 FY2020 FY2018 FY2019 FY2020 FY2018 FY2019 FY2020 Growing Profitability Revenue (RMB mn) Gross Profit (RMB mn) Net Profit (RMB
Slide 24: 2020 Financial Highlights
2020 Financial Highlights P&L and Profitability (RMB mn) Balance Sheet and Credit Metrics (RMB mn) FY2020 FY2019 Change% FY2020 FY2019 Change% Revenue 55,770 48,022 +16.1% Total assets 309,899 270,902 +14.4% Recognized revenue from Cash and bank deposits 47,113 36,978 +27.4% 51,194 43,849 +16.7% pro
Slide 25: Debt Structure and Maturity
Debt Structure and Maturity Debt Composition By Maturity Onshore non-bank borrowings, 16% FY2020 FY2019 60% ◼ Total borrowings: 49% RMB121.5 bn 50% 45% Onshore bank ◼ Onshore: 40% 40% 32% borrowings, 24% ◼ Offshore: 60% 27% Offshore 30% 22% senior 20% 19% Offshore bank notes, 57% borrowings and 10%
Slide 26: Proactive Liability Management
Proactive Liability Management Meet Two Requirements Out of Three √ √ >1X <100% X 1.56X <70% 97.9% 70.3% Net gearing 1 Cash to short-term debt 2 Liabilities to assets ratio after 3 excluding receipts in advance Reduce Net Gearing Control Total Borrowings (RMB bn) 308% 300% 117.2 121.5 111.2 110.5 23
Slide 27: Expand Onshore and Offshore Funding Channels
Expand Onshore and Offshore Funding Channels ◆ Obtained unused bank facilities of RMB120 bn ◆ Obtained ABS & ABN quota of RMB10.6 bn and issued RMB2.6 bn Onshore Quota Issue size Tenor Coupon rate Financing (RMBmn) (RMBmn) (year) ABS 4,643 1,821 1 7-7.5% ABN 6,000 780 1 7.5% Total 10,643 2,601 ◆ Obt
Slide 28: Recognition from Rating Agencies and Tighter Bond Curve
Recognition from Rating Agencies and Tighter Bond Curve ◆ Offshore rating: Moody’s B1/S&P B/Fitch B, Outlook Stable ◆ Onshore rating: CCXI AA+/China Lianhe Credit AA+/Dagong Global Credit AA+, Outlook Stable Secondary Bonds Traded 50-150bps Tighter on the Curve 13% 12.179 11.845 11.925 Dec 2019 12%
Slide 29: Stock Price Outperformed the Indices
Stock Price Outperformed the Indices ◆ Kaisa share price was up 7% since the beginning of 2020, outperforming Hang Seng Index (-1%) and Hang Seng Index-Properties (-14%) ◆ Share price recorded highest rebound of 69% among peers from the low level in March 2020 Kaisa Stock Performance in 2020 30% 20%
Slide 30: Rising Recognition from the Market
Rising Recognition from the Market Award Issued by 20th in 2020 Top 100 China Listed Property Developers in Integrated Capability Eh-Consulting China Index Academy, China Real Estate Top 1 Leading Brands of Chinese Developer in 2020 – Urban Renewal TOP 10 Research Team China Real Estate TOP 10 Resea
Slide 31: 05. Appendix
py Kaisa f= JE Fe FEMLAHLPLE 1638 05. Appendix
Slide 32: FY2020 Earnings
FY2020 Earnings (RMB bn) FY2020 FY2019 Change% Revenue 55.8 48.0 +16.1% -Sales of properties 51.2 43.9 +17.7% -Rental income 0.5 0.5 +19.3% -Property management services 1.3 0.9 +47.9% -Hotel and catering operations 0.3 0.3 -4.9% -Cinema, department store and cultural center operations 0.2 0.7 -76.2
Slide 33: Balance Sheet
Balance Sheet (RMB bn) As of 31 Dec 2020 As of 31 Dec 2019 % Change Total assets 309.9 270.9 +14.4% Total liabilities 231.2 215.2 +7.4% Net current asset 100.3 66.8 +50.1% Total equity 78.7 55.7 +41.3% Cash and bank deposits 47.1 37.0 +27.4% Quick ratio1 2.0x 1.1x +0.9x Liabilities to assets ratio a
Slide 34: Low Land Cost Achieved through Home Court Advantage
Low Land Cost Achieved through Home Court Advantage URP Xiaxue Project (下雪项目) Expected ASP (Residential): RMB55,000/sqm URP Land Cost: RMB7,300/sqm Guangming Nanmendun Project (南门墩项目) Expected ASP (Residential): Longgang Auction RMB55,000/sqm Bao’an Longhua Pingshan Project (坪山项目) Pingshan Land Cost
Slide 35: Land Acquisition in 2020
Land Acquisition in 2020 Attributable Acquisition Site Area Total GFA Attributable GFA No. Location Shareholding % Consideration Land Use Way of Acquisition Time （sqm） (sqm) （sqm） （RMB mn） 1 Jan 2020 Hangzhou, Zhejiang 51% 49,166 108,165 55,164 458 Residential M&A 2 Feb 2020 Changsha, Hunan 49% 126,
Slide 36: Proven Track Record of URPs Conversion
Proven Track Record of URPs Conversion ◆ Successfully converted 40 URPs with 15 mn sqm GFA since established ◆ URPs mainly located in Tier 1 cities including Shenzhen, Guangzhou, Shanghai and Hong Kong ◆ Successfully converted 23 URPs with GFA of over 4 mn sqm since 2017 GFA No. of Year Projects Typ
Slide 37: Major URPs Converted in 2020
Major URPs Converted in 2020 Shenzhen Nanmendun Project Shenzhen Xiaxue Project Guangzhou Xiajing Project • Intersection of • West of Guanghe Longgang Avenue • Bantian Street, Highway, East of and Tiexi Road, Buji Longgang District Zhonghua Road, Street, Longgang Location • Near Xuexiang Location Mi
Slide 38: Key Projects to Be Launched in Shenzhen & Guangzhou in 2021
Key Projects to Be Launched in Shenzhen & Guangzhou in 2021 Shenzhen Kaisa Shenwei Shenzhen Kaisa Lakeside Residence • North of Shahe Street, Nanshan District, • Northwest corner of the intersection of South Shenzhen Location Luyin Road and Dongzong Road, Shijing Street, Location • Near Qiaocheng No
Slide 39: Shareholding Structure (As of 31 December 2020)
Shareholding Structure (As of 31 December 2020) • Founder and chairman • Over 20 years of industry experience • Responsible for overall strategy, investment planning and human resources strategy Funde Sino Life Kwok Family Other public investors Insurance Co., Ltd. 25.07% 39.04% 35.89% Hotel and cat