cr land annual result 2015
TRANSCRIPT
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8/19/2019 CR Land Annual Result 2015
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AGENDA
Highlights
Financial Review
Business Review
Market and Strategy
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Highlights – FY 2015
B U S I N E S S
R E V I E W
2
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AGENDA
Highlights
Financial Review
Business Review
Market and Strategy
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Income Statement
F I N A N C I A L
R E V I E W
4
Year Ended 31 Dec
(HK$ mn)
2015 2014
(Restated)Change
Turnover 103,393 89,705 15.3%
Development 93,536 81,759 14.4%
Investment Property 6,655 5,482 21.4%
Gross Profit 32,298 27,353 18.1%
Development 28,179 23,850 18.1%
Investment Property 3,967 3,398 16.7%
Gross Profit Margin 31.2% 30.5%
+0.7pt Development 30.1% 29.2% +0.9pt
Investment Property 59.6% 62.0% -2.4pt
IP (excluding hotel) 66.9% 71.5% -4.6pt
Attributable Net Profit 17,527 15,141 15.8%
Core Profit 14,206 11,915 19.2%
Core Net Profit Margin 13.7% 13.3% +0.4pt
Net Profit Margin 17.0% 16.9% +0.1pt
EPS - Basic (HK cents) 259.2 231.8 11.8%
EPS - Fully Diluted (HK cents) 259.1 231.7 11.8%
DPS (HK cents) 57.4 49.5 16.0%
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F I N A N C I A L
R E V I E W
Balance Sheet Highlights
5
Cash and cash equivalents 45,875 44,857 2.3%Total debt 76,150 90,231 -15.6%
Net debt 30,275 45,374 -33.3%
Total equity 131,824 117,123 12.6%
Total capitalization 207,974 207,354 0.3%
Total debt/ capitalization 36.6% 43.5% -6.9pt
Net debt/ equity 23.0% 38.7% -15.7pt
Change(HK$ mn)31-Dec-2014
(Restated)31-Dec-15
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Debt Profile (as at 31 Dec 2015)
F I N A N C I A L
R E V I E W
6
Avg. Tenor: 4.24 yrs
(vs 4.01 yrs a year ago)
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31-Dec-15 31-Dec-14
HK$ mn as % HK$ mn as %
Total Borrowings 76,150 100% 89,601 100%RMB Borrowings 40,647 53% 34,480 38%
Forreign Currency Borrowings 35,503 47% 55,121 62%
USD 21,553 28% 22,113 25%
HKD 13,950 19% 33,008 37%
Forreign Currency Cash Balance 1,257 100% 3,614 100%
USD 180 14% 974 27%HKD 1,077 86% 2,640 73%
Net Foreign Currency Borrowings 34,246 100% 51,507 100%
USD 21,373 62% 21,139 41%
HKD 12,873 38% 30,368 59%
F I N A N C I A L
R E V I E W
Foreign Exchange Risk Analysis
8(1) Based on financial data as of 31st Dec 2015.
(2) Based on projected cash outflows (excluding debt repayment) in FY2016.(3) Based on reserve attributable to owners of the company.
If CNY:USD fixing rate depreciates by 5% to 6.8183 from 6.4936 (@31 Dec 15)
Estimated Impact HK$ mn(1)
CF Cash inflow/(outflow)(2) (280)
P&L Exchange gain/(loss) 960
BS Change in translation reserve(3) +/(-) (7,860)
Net Gearing (Net Debt/Equity) +1.6ppt
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AGENDA
Highlights
Financial Review
Business Review
Market and Strategy
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Development Revenue in 2015
B U S I N E S S
R E V I E W
5,652 5,38412,579
24,98532,82731,301
38,522
64,818
81,759
93,536
2011 2012 2013 2014 2015
Development Revenue RMB mn)
1H FY
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Contracted Sales in 2015
B U S I N E S S
R E V I E W
13,220
23,314
33,787
25,564
37,00035,958
52,193
66,306 69,210
85,150
2011 2012 2013 2014 2015
Contracted Sales RMB mn)
1H FY
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Premium IP and Fast Growing Recurrent Income
B U S I N E S S
R E V I E W
12
1.6
1.4
2.0
1.3 1.3
2011 2012 2013 2014 2015
Rental Income/ Gross Interest Coverage
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IP Performance in 2015 – Shopping Mall
B U S I N E S S
R E V I E W
2015 2014 %YoY 2015 2014 pt YoY
Shenzhen Mixc 1,050,494 990,698 6.0% 99.4% 99.7% -0.3
Hangzhou Mixc 488,284 486,184 0.4% 97.4% 98.5% -1.1
Shenyang Mixc 420,122 399,436 5.2% 95.1% 96.2% -1.1
Chengdu Mixc 284,011 258,170 10.0% 96.7% 98.4% -1.7
Nanning Mixc 487,060 454,216 7.2% 98.9% 99.1% -0.2
Zhengzhou Mixc 137,319 103,017 33.3% 92.9% 94.7% -1.8
Chongqing Mixc 195,230 41,249 373.3% 91.4% 87.7% 3.7
Wuxi Mixc 124,250 19,730 529.8% 77.3% 75.3% 2.0
Qingdao Mixc 224,423 N/A N/A 83.0% N/A N/A
Hefei Mixc 60,124 N/A N/A 89.8% N/A N/A
Ganzhou Mixc 50,257 N/A N/A 95.0% N/A N/A
Shanghai Times Square Commercial 115,784 134,983 -14.2% 88.0% 94.4% -6.4
Beijing Phoenix Plaza Commercial 82,637 80,176 3.1% 97.2% 97.1% 0.0
Beijing Qinghe Hi5 262,790 228,860 14.8% 100.0% 99.9% 0.1
Hefei Shushan Hi5 30,548 28,132 8.6% 96.1% 95.1% 1.0
Zhejiang Yuyao Hi5 60,249 26,255 129.5% 90.2% 90.8% -0.6
Shanghai Nanxiang Hi5 39,730 6,940 472.5% 98.1% 100.0% -1.9
Shandong Zibo Mixc One 80,182 N/A N/A 84.5% N/A N/A
Shenyang Tiexi Mixc One 28,033 N/A N/A 86.5% N/A N/A
Changsha Xingsha Mixc One 11,487 N/A N/A 100.0% N/A N/A
Total / Average 4,233,014 3,258,046 29.9% 92.1% 94.4% -2.3
Investment PropertiesRental Income (HK$’000) Average Occupancy Rate (%)
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IP Performance in 2015 – Office, Hotel and Others
B U S I N E S S
R E V I E W
*Average occupancy does not include Nanning and Hangzhou CR Building.
2015 2014 %YoY 2015 2014 pt YoY
Beijing CR Building 228,340 224,217 1.8% 88.7% 90.5% -1.8
Shenzhen CR Building 163,169 160,162 1.9% 98.9% 99.8% -0.9
Shenyang CR Building 107,930 120,763 -10.6% 90.4% 95.8% -5.4
Chengdu CR Building 75,704 74,010 2.3% 73.0% 69.7% 3.3
Nanning CR Building 25,701 21,083 21.9% 80.1% 96.7% -16.6
Hangzhou CR Building 4,713 N/A N/A 15.0% N/A N/A
Shanghai Times Square Office 121,460 122,679 -1.0% 96.7% 99.2% -2.5
Beijing Phoenix Plaza Office 351,595 335,491 4.8% 92.2% 95.9% -3.7
Beijing Hi5 Office 24,188 25,126 -3.7% 100.0% 100.0% 0
Others 349,616 341,463 2.4% N/A N/A N/A
Shenzhen Grand Hyatt Hotel 502,375 485,764 3.4% 74.4% 69.8% 4.6
Shimei Bay Le Meridien Hotel 66,112 81,534 -18.9% 35.9% 37.2% -1.3
Shenyang Grand Hyatt Hotel 230,719 203,232 13.5% 68.5% 66.7% 1.8
Dalian Grand Hyatt Hotel 169,928 28,908 487.8% 42.1% 28.1% 14
Total / Average for Office* 1,102,800 1,083,531 1.8% 88.9% 90.6% -1.7
Total / Average for Hotel 969,134 799,438 21.2% 57.5% 52.3% 5.2
Investment PropertiesRental Income (HK$’000) Average Occupancy Rate (%)
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Profiles of New Malls Opened in 2014
Representative Tenants
B U S I N E S S
R E V I E W
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Key Data in 2015/2014
1 2
3 4
5 6
1ZhengzhouMixc
19 4 2 14
Versace, Tod's, Monc ler, GIVENC HY, Dunhill, Xinyuwatch gallery, Ole', World Ice Arena, Apple Store
2Hefei
Shushan Hi5 1 5 2 14
Suguo Supermarket , WOMEI CINEPLEX, INLOVE
KTV
3Zhejiang
Yuyao H i5 28 6 2 14
Mjstyle, UNIQLE, Chow Tai Fook, Vanguard, CGV,INLOVE KTV, Kingsport, Cartoony World
4ChongqingMixc
19 9 2 14
OMEGA, Moncler, Coach, TOD'S , Dunhill, JIMMYCHOO, Palace C inema, World Ice Arena, Ole',
PARKSON
5Shanghai
Nanxiang Hi5 25 1 2 14 BLT, OSGH Cinemas
6 Wuxi Mixc 2 12 2 14OSGH Cinemas, Ole', Adventure Zone, SkylandFood Court, Kidswant, X'Street, Shoe Space
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Profiles of New Malls Opened in 2015
Representative Tenants
B U S I N E S S
R E V I E W
16
Key Data in 2015
1 2
3 4
5 6
1 Qingdao Mixc 30 04 2015
Bally, Hugo Boss, Dunhill, Omega, Ole', World Ice
Arena, CGV, Sega Joypolis, Apple, Family Box
2 ShandongZibo Mixc One
27 05 2015 V+ supermarket, Myrules World, WOMEICINEPLEX, World Ice Arena
3Ganzhou
Mixc 19 09 2015
V+ supermarket, Myrules World, CGV, World Ice
Arena
4 Hefei Mixc 25 09 2015World Ice Arena, Emperor Motion Pictures,
SKYLAND, Meland, Ole'
5
Shenyang
Tiexi Mixc
One
30 09 2015 BLT, Meland, Lumiere Cinema
6
Changsha
Xingsha Mixc
One
28 11 2015
VANGUARD, CGV
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Launch Schedule for New Malls in 2016-2018
B U S I N E S S
R E V I E W
17*Opening schedules will be adjusted based on prevailing market conditions.
27 malls
6.1mn sqm22 malls
4.7mn sqm
38* malls
8.8mn sqm
20 malls
4.3mn sqm
New Malls in 2016:1 Wenzhou Mixc
2 Shandong Rizhao Mixc One
New Malls in 2017:
1 Xian Sanqiao Mixc One
2 Shanghai Mixc
3 Beijing Miyun Mixc One
4 Shenzhen Mixc World
5 Nantong Mixc
New Malls in 2018 and beyond:
1 Taiyuan Mixc
2 Xiamen Mixc
3 Jiangsu Kunshan Mixc One
4 Jiangsu Taizhou Mixc
5 Hangzhou Xiaoshan Mixc One
6 Shijiazhuang Mixc
7 Jinan Mixc
8 Suzhou Wujiang Mixc One
9 Dalian Mixc One
10 Shenhen Qianhai City Crossing
11 Guangxi Liuzhou Mixc One
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Land Bank (as of 31 Dec 2015)
Development Land Bank:35.75 mn sqm
IP Land Bank:5.51 mn sqm
B U S I N E S S
R E V I E W
Total Land Bank:41.26 mn sqm
18
53 cities 39 cities
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19 A P P E N D I X
Land Bank Held by CRH – Shenzhen Bay Project
Project Overview GFA Breakdown
Launch Date of Phase 1 2015/12/26
2016 Launching Schedule 3Q, 42,000㎡
Earliest Booking Schedule 1H 2018
R:170,000
53%
C:60,00019%
H:40,00012%
SA :50,00016%
Residential (R) Commercial (C)
Hotel (H) Serviced Apart. (SA)
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AGENDA
Highlights
Financial Review
Business Review
Market and Strategy
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Property Market Outlook in 2016 - Residential
B U S I N E S S
R E V I E W
21
Destocking remains as the key theme while overall ASP likely to stay flat or rise moderately.
Divergence among cities to intensify: ASP in tier-1 and certain tier-2 cities may still have further
upside due to decline on inventory level and rise in land price.
-29% -26%
-51%
-23% -27%-23% -21% -22%
-16% -15%-11%
-15%-10%
-16%
-3% -2% -2% -1% -4% -3% -3%
6% 6% 6%
-60%
-50%
-40%
-30%
-20%
-10%
0%
10%
0
5
10
15
20
25
30mn sqm
Inventory at Dec 2015 YoY %
Decrease>20% Decrease 10%~20% Decrease 0~10% Increase
0.930.97 0.98
1.16
1.051.12
-15.0%
-10.0%
-5.0%
0.0%
5.0%
10.0%
15.0%
20.0%
0
0.2
0.4
0.6
0.8
1
1.2
1.4
2010 2011 2012 2013 2014 2015
bn sqmResidential GFA sold YoY
4,7254,993
5,4305,850 5,933
6,472
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
8.0%
9.0%
10.0%
-
1,000
2,000
3,000
4,000
5,000
6,000
7,000
2010 2011 2012 2013 2014 2015
Rmb/sqm ASP YoY
Source: NBS
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Property Market Outlook in 2016 - Residential
B U S I N E S S
R E V I E W
22
Sector supportive policies to continue: moderate monetary environment, the acceleration in new-
round urbanization, further Hukou reform, inventory clearance measures as well as two-child
policy.
75
95
115
135
155
175
195
215
2015-02 2015-03 2015-04 2015-05 2015-06 2015-07 2015-08 2015-09 2015-10 2015-11 2015-12
mn sqm
GFA Sold(mn sqm)
2/4RRR cut
2/28Interest rate cut
3/27Land department
to adjust landsupply structure
3/30Business tax
waived after 2years holding
perios
4/19RRR cut
5/11Interest rate
cut
Mar~JunFujian, Liaoning
and otherprovinces to allow
developers to
change theproduct mix of theexisting projects
6/28Interest rate,
RRR cut
8/25Interest rate,
RRR cut
8/29Purchase
restrictionsfor foreign
buyersrelaxed
8/302nd home down payment
for HPF reduced to 20%
9/30Down
payment forfirst homesreduced to
25%
10/23/ Interest rate,
RRR cut
11/10President Xi
emphasized onreducing property
inventorypromoting a
stable housingmarket
11/11Premier Lirestated to
furtherreformhukoupolicies
12/21Central EconomicWork Conference
mentionedtransforming migrant
workers into newurbanities to help
destocking
Demand Supply
SupplyDemand
Demand
Demand
Demand
Demand
Demand
Demand
Demand
Demand
Demand
Demand
Demand
Demand
Source:wind
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Property Market Outlook in 2016 – Investment Property
23
Shopping malls, especially mid-low end ones, likely to endure greater pressure when
seeking for growth due to oversupply and e-Commerce.
Stable GDP and disposable income growth, coupled with continuous urbanization, arecreating a growing consumer class with increasing spending power & demand for
better shopping experiences.
Declining Gift Market
Rational Spending
Diversified Channels
Urbanization:
Supportive Policies:
Growing Retail Market:
Overall China retail market is
still growing at double digits
More favorable policiesexpected to stimulate localconsumptions
Continuous urbanization
lays down a solid
foundation for growing
retail sales
Rising competition from e-Commerce and overseasconsumptions etc
Luxury items no longer a puresymbol for social status asconsumers become moresophisticated
Declining gift market continuesto impact the luxury as well asthe high-end dining market
Opportunities:Growing
Middle Class
Challenges:Consumption
Structural Change
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Company Strategy
B U S I N E S S
R E V I E W
24
3 Main
Strategies
QualityInvestments
Change &Innovation
ExcellentOperations
Capital Engine
The Group will continue to enhance its competitive advantages to maintain earnings
growth through seeking quality investments and excellent operations, and toproactively explore business innovations to achieve long-term sustainabledevelopment.
Investment Strategy: Improve timing, city and product mixselection as well as diversify access to land bank
Professional Management: Enhancecustomer satisfaction, shareholderreturn and organization structure
Change: Construct “shopping malls +
internet” eco system and explore
overseas investment and businessinnovations
Gro p Str ct re
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Group Structure
25 A P P E N D I X
61.27%
9
Di ti i h d INED T
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Distinguished INED Team
B a c k g r o u n d I n f o
r m a t i o n
Current Positions
Chairman of China Vanke
Independent Non-
Executive Director of
SOHU.com and Modern
Media Holdings
Mr. Shi Wang Mr. Ho Hin Ngai, Bosco
Current Positions
Authorized Person
(Architect) Hong Kong,
Member of Hong KongInstitute of Architects and
of Royal Institute of
British Architects
Founder of Ho & Partners Architects Engineers and
Development Consultants
Mr. Andrew Y. Yan
Current Positions
Founding Managing
Partner of SAIF Partners
Non-Executive Director of
Digital China Holdings,
Lai Sun Group, China
Huiyuan Juice Group, and
Guodian Technology &Environment Group
Independent Non-
executive Director of
Cogobuy Group, CPMC
Holdings Limited and
China Petroleum &
Chemical Corporation
Mr. Wan Kam To, Peter
Current Positions
Independent Director of
Mindray Medical and the
Chairman of the AuditCommittee
Independent Non-
Executive Director of
Dalian Port (PDA)Company, Fairwood
Holdings, Harbin Bank,
Huaneng Renewables,
KFM Kingdom Holdings,
S. Culture International
Holdings Limited, Target
Insurance (Holdings)
Limited, Shanghai
Pharmaceuticals HoldingsCo., Ltd., and the
Chairman/member of
their Audit Committees
Prior Position
Partner of
Pricewaterhouse
Coopers
Mr. Weihua Ma
Current Positions
Chairman of Wing Lung
Bank
Independent Non-
Executive Director of
China Petroleum &
Chemical Corporation,
China Eastern AirlinesCorporation Limited, and
Winox Holdings Limited
Prior Positions
President and Chief
Executive Officer,
Executive Director of
China Merchants Bank
Chairman of CIGNA and
CMC Life Insurance
Company Ltd. and ChinaMerchants Fund
A
P
P
E
N D I
X
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Di l i
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Disclaimer
All information and data herein are intended for reference and general information
purposes only.
All opinions included constitute China Resources Land Limited (“CR Land”) or itssubsidiaries, associated or affiliated companies’ judgment as of the date hereof and
are subject to change without notice.
CR Land cannot and does not represent, warrant or guarantee the accuracy,
validity, timeliness, completeness, reliability or otherwise of any information
contained in the materials herein.
CR Land, its subsidiaries and affiliates hereby disclaim (i) all express, implied, and
statutory warranties of any kind to user and/or any third party including warranties
as to accuracy, timeliness, completeness, or fitness for any particular purpose; and
(ii) any liability whatsoever for any loss howsoever arising from or in reliance upon
the whole or any part of the information and data contained herein.
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