Yuzhou Group Holdings Co., Ltd. · HKEX:1628
Yuzhou — Yuzhou Properties Company — H1 2015 Earnings Presentation
38 slides from Yuzhou's earnings presentation, Aug 27, 2015
Slide 1: 2015 Interim Result Announcement
2015 Interim Result Announcement 27 August 2015
Slide 2: About Yuzhou Properties (01628.HK)
ABOUT YUZHOU PROPERTIES (01628. HK) A leading property developer in West Strait Economic Zone with footprints in Xiamen, Fuzhou and Quanzhou, the Top 3 largest cities in Fujian Province KEY FOCUS Successful expansion into Hong Kong, Shanghai, Nanjing, Hefei, Tianjin, Longyan, Bengbu and Zhangzho
Slide 3: About Presenters
ABOUT PRESENTERS Founder, Mr. LAM, Lung On Chairman and Executive Director Mr. Hui Chun Yip Chief Financial Officer and Company Secretary Assistant President and Mr. Chen Chao General Manager of Planning & Finance Dept. 3
Slide 4: Table of Contents
TABLE OF CONTENTS I. FINANCIAL HIGHLIGHTS II. BUSINESS REVIEW III. FUTURE PERSPECTIVES IV. APPENDIX
Slide 5: Financial Highlights
C2 5, ory Th z= Ax A PRS : a] Stock Code HEIR DE YUZHOU PROPERTIES COMPANY LIMITED 01628.HK FINANCIAL HIGHLIGHTS aS
Slide 6: Highlights of 2015 Interim Results
HIGHLIGHTS OF 2015 INTERIM RESULTS FINANCIAL HIGHLIGHTS FOR THE 6 MONTHS ENDED 30 JUNE 2015 Compared with 1H2014 Contracted Sales: RMB 5,736 million (+RMB426 million or +8%) Recognized revenue: RMB3,502 million (‐ RMB422 million or ‐11%) Core Profit to owners of parent : RMB552 million (+RMB66
Slide 7: 1H2015 Key Profit & Loss Items
1H2015 KEY PROFIT&LOSS ITEMS Revenue* Gross Profit RMB million RMB million Profit Attributable to shareholder Core Profit RMB million RMB million * After 5.55% Business Taxes 7
Slide 8: 1H2015 Revenue Breakdown
1H2015 REVENUE BREAKDOWN (RMB’000) 1H2015 1H2014 Change 100%=RMB 3,502 million 100%=RMB 3,924 million Sales of properties 3,418,051 3,833,688 ‐11% Rental income 31,347 28,282 +11% Property management fee 42,068 26,892 +56% income Sales of construction 2,850 27,871 ‐90% materials Hotel operation 7,45
Slide 9: Analysis on 1H2015 Recognized Property Sales
ANALYSIS ON 1H2015 RECOGNIZED PROPERTY SALES Recognized Property Sales* Recognized GFA & ASP RMB million GFA (sq.m.) ASP (RMB/sq.m.) Recognized Sales by City Recognized GFA by City % % * After 5.55% Business Taxes 9
Slide 10: 1H2015 Key Balance Sheet Items
1H2015 KEY BALANCE SHEET ITEMS Cash Position Total Debt RMB million RMB million Total Asset Total Equity RMB million RMB million 10
Slide 11: 1H2015 Stable Financial Position
1H2015 STABLE FINANCIAL POSITION Net Gearing Ratio Debt Profile by Maturity % % Debt Profile by Currency Debt Profile by Type % % Total Debt = RMB15,475 million The weighted average funding cost was 8.17%, and the total available credit facilities was RMB10,670 million with 11 unused facilities of R
Slide 12: Business Review
Q» ON Sit FE A a BRS YUZHOU PROPERTIES COMPANY LIMITED Stock Code JBEUT RHE 01628.HK BUSINESS REVIEW * 12
Slide 13: Snapshot of Land Bank
SNAPSHOT OF LAND BANK Saleable Average Land % of 8.81 million sq.m. as at June 2015 GFA No. of Cost saleable City (‘000 sq.m.) projects （RMB/sq.m.） GFA Bohai Rim Tianjin 351 2 1,061 4 Region Shanghai 636 6 3,382 7 Yangtze Nanjing 113 1 16,657 1 River Delta Hefei 2,538 6 2,044 29 Tianjin Bengbu 668 1
Slide 14: Market Leadership in Xiamen, Fujian Province
MARKET LEADERSHIP IN XIAMEN, FUJIAN PROVINCE 6 Largest Land Bank* in Xiamen (As at June 2015) Million sq.m. 9 Fuzhou 7 5 8 Quanzhou Longyan Xiamen 3 2 4 1 Zhangzhou Completed Under development Held for development Selected projects in Xiamen Residential Market Share in Xiamen# 1 Yuzhou World Trade C
Slide 15: 1H2015 Contracted Sales
1H2015 CONTRACTED SALES Interest in Contracted Contracted Contracted Contracted Sales # Project Project Sales As of Total GFA ASP (1H2013 vs. 1H2014vs. 1H2015) City % (RMB mn) (%) (sq.m.) (RMB/sq.m.) 1 Yuzhou Golf Xiamen 100% 6 0% 396 15,687 RMB million 2 Yuzhou Shoreline Xiamen 100% 75 1% 2,696 27,
Slide 16: Monthly Contracted Sales in 2014 vs. 2015
MONTHLY CONTRACTED SALES IN 2014 vs. 2015 Monthly Contracted Sales ( Jan 2014 – Jul 2015) 16
Slide 17: 1H2015 Sell-through Rate Reached 60%
1H2015 SELL‐THROUGH RATE REACHED 60% The Average Sell‐through Rate is 60% % City Xiamen Xiamen Xiamen Xiamen Xiamen Fuzhou Quanzhou Longyan Shanghai Hefei Hefei Hefei Hefei Hefei Bengbu Tianjin Tianjin Total GFA Launched 72,960 87,380 12,574 51,826 22,447 73,537 78,868 91,912 24,323 132,318 92,870 1
Slide 18: Land Replenishment YTD2015
LAND REPLENISHMENT YTD2015 Total Land Average Land Estimated Date of Site Saleable GFA Cost Cost ASP City Project Type Methodology Acquisition Area(sq.m.) (sq.m.) (RMB mn) (RMB/sq.m.) (RMB/sq.m.) January 2015 Xiamen Resi/Com Bidding and Auction 70,109 305,160 2,740 8,979 20,000+ July 2015 Hefei Resi
Slide 19: 1H 2015 Cash Flow Position
1H 2015 CASH FLOW POSITION (Unaudited) RMB Bn FY2014 1H2015 FY2015 RMB Bn (A) (A) (E) Cash on Cash on Hand (at the beginning) 3.88 9.78 9.78 Hand 9.78 Cash Proceeds from Contracted Sales 9.55 6.83 12.64 Rental, Management Fee & Rental, Management Share Net Cooperation Other Income 0.23 0.14 0.35 Fee
Slide 20: Community O2O Service Platform
Community O2O Service Platform I. Synergic effect with Offline Online Yuzhou’s existing business segments (i.e. shopping mall, hotel and project new launch) and new business II. Platform’s fans base can help promoting profitable new business such as P2P Yuzhou Real Estate Management Service Communit
Slide 21: O2O Platform Future Development
O2O Platform Future Development Introducing more exclusive services Shopping New business, Mall eg: P2P, Xiamen Hefei house rental Fuzhou Shanghai and sale Longyan Bengbu Xiamen Quanzhou Nanjing Zhangzhou Tianjin Hong Kong Hotel Project new Expanding to all communities launch Increasing the user b
Slide 22: Future Perspectives
C2 5, ory Th z= Ax A PRS : a] Stock Code HEIR DE YUZHOU PROPERTIES COMPANY LIMITED 01628.HK FUTURE PERSPECTIVES aS 22
Slide 23: Market Outlook
MARKET OUTLOOK Overall downturn in the market and obvious discrepancy between different cities 2014 Central government adopted market‐oriented way to release the rigid demand Credit easing and cancellation on “Housing Purchase Restriction” in several cities 1H2015 Rigid demand and upgrade de
Slide 24: Our Strategies to Weather the Market
OUR STRATEGIES TO WEATHER THE MARKET Product and Pricing Flexibility Experienced Management Diversify product mix to fulfill the user‐oriented demand, Highly experienced management team with strong better catered to current market execution capabilities and deep industry insights Flexible pric
Slide 25: 2H2015: Detailed Launch Table
2H2015: DETAILED LAUNCH TABLE Planned Sales GFA for 2H2015 As of Total # Project City Launch Type (sq.m.) (%) 1 Yuzhou Central Coast Xiamen Existing 44,670 3% 2 Yuzhou Riverside City Town Xiamen Existing 122,484 8% 3 Yuzhou Cloud Top International Xiamen Existing 3,278 0% 4 Haicang Dream Town Xiamen
Slide 26: 2H2015: Launch Breakdown
2H2015: LAUNCH BREAKDOWN By City By Launch Type % % By Project Type By Region % % 100% = 1,571,163 sq.m. 26
Slide 27: Major Contributing Projects in 2H2015
MAJOR CONTRIBUTING PROJECTS IN 2H2015 Xiamen Yuzhou Riverside City Town Xiamen Yuzhou Lucca Town (廈門禹洲‧溪堤尚城) (廈門禹洲‧盧卡小鎮) Located at the center of At the recreational and Tong’an, surrouned by educational district of national wetland park Xiamen Xiangán High‐rise residential High‐rises low‐ri
Slide 28: Land Banking Strategy
LAND BANKING STRATEGY Focus on the West Strait Economic Zone A new strategic focus and growth engine in China promoted by the State Council Penetrate further into the region To solidify the long‐time market leadership by expanding into Tier 1 and 2 cities Stick to our core competency Fujian To acqui
Slide 29: Appendix
Q» ON Sit FE A a BRS YUZHOU PROPERTIES COMPANY LIMITED Stock Code JBEUT RHE 01628.HK APPENDIX * 29
Slide 30: Xiamen Property Market Overview
XIAMEN PROPERTY MARKET OVERVIEW Residential Land Supply and Property Transactions in Xiamen '000 sq.m. RMB/sq.m. 8,000 25,000 7,000 19,231 19,361 20,000 6,000 6,743 15,701 6,055 13,973 5,000 12,863 15,000 11,600 9,708 9,891 4,883 4,000 8,854 4,543 4,490 11,532 4,109 11,276 3,000 6,601 3,894 10,071 1
Slide 31: Fuzhou Property Market Overview
FUZHOU PROPERTY MARKET OVERVIEW Residential Land Supply and Property Transactions in Fuzhou '000 sq.m. RMB/sq.m. 4,500 16,372 16,552 18,000 15,361 4,000 4,261 14,231 14,188 16,000 3,500 11,942 14,000 3,623 3,000 12,000 3,159 2,500 8,164 2,905 2,764 10,000 7,590 7,557 2,577 2,524 8,464 8,000 2,000 2,
Slide 32: Shanghai Property Market Overview
SHANGHAI PROPERTY MARKET OVERVIEW Residential Land Supply and Property Transactions in Shanghai '000 sq.m. RMB/sq.m. 40,000 30,824 35,000 35,000 27,212 30,000 34,809 24,177 30,000 21,728 22,278 22,502 25,000 25,000 16,039 20,000 20,000 23,421 13,971 20,128 10,556 16,914 15,000 17,941 9,655 17,776 18
Slide 33: Hefei Property Market Overview
HEFEI PROPERTY MARKET OVERVIEW Residential Land Supply and Property Transactions in Hefei ‘000sq.m. RMB/sq.m. 18,000 9,000 15,443 8,119 8,000 16,000 14,000 12,664 6,986 7,190 7,000 6,259 11,371 6,351 11,624 12,000 10,256 10,684 6,007 10,765 6,000 9,531 9,619 9,403 10,000 8,900 8,439 5,000 7,754 4,63
Slide 34: Nanjing Property Market Overview
NANJING PROPERTY MARKET OVERVIEW Residential Land Supply and Property Transactions in Nanjing ‘000sq.m. RMB/sq.m. 18,000 16,000 15,570 16,000 14,000 13,116 14,258 14,000 12,109 12,075 12,791 10,929 11,391 11,651 13,521 12,000 12,305 12,000 10,232 9,912 10,775 9,417 10,000 10,000 7,927 10,688 8,305 7
Slide 35: Detailed Land Bank Table
DETAILED LAND BANK TABLE Sold and Delivered Held for Investment Project Site Area Location Unit Land Cost Total GFA Total Saleable GFA Pre‐sold Saleable GFA Held for Sale Only Land Reserve Interest in the Project Saleable GFA Only (sq.m.) (RMB/sq.m.) (sq.m.) (sq.m.) (sq.m.) (sq.m.) (sq.m.) (sq.m.) (
Slide 36: 1H2015 Key Financials
1H2015 KEY FINANCIALS For the period ended 30 Jun 1H2015 1H2014 Change (%) Revenue (RMB’000) 3,501,771 3,924,004 ‐11% Gross Profit (RMB’000) 1,188,170 1,415,512 ‐16% Gross Profit Margin (%) 33.9% 36.1% ‐2.2pp Core Profit (RMB’000) 552,038 486,053 +14% Core Profit Margin (%) 15.8% 12.4% +3.4pp EPS (R
Slide 37: 1H2015 Key Financials
1H2015 KEY FINANCIALS (RMB’000) As at 30 Jun 2015 As at 31 Dec 2014 Change (%) Total current assets 32,416,067 29,559,864 +10% Total non‐current assets 10,456,394 9,515,143 +10% Total current liabilities 19,709,254 17,278,610 +14% Total non‐current liabilities 12,934,565 12,406,598 +4% Total equity
Slide 38: 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
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