2013 Annual Results 28 February ROBUST PROSPERITY on SOLID FOUNDATION

Transcription

1 2013 Annual Results 28 February 2014 ROBUST PROSPERITY on SOLID FOUNDATION

2 Contents 1

3 Annual Results 2

4 2013 Key Financials Unit Change Turnover HK$ Million 15, , % Gross Profit HK$ Million 5, , % Net Profit HK$ Million 3, , % Gross Margin Percentage % ppts Net Margin Percentage % ppts EPS HK cents % 3

5 2013 Key Financials Cont d Unit 31/12/ /12/2012 Change Cash on Hand HK$ Million 9, , % Shareholder s Equity HK$ Million 11, , % Net Gearing Percentage % 47.8 Net Cash ROE Percentage % ppts ROA Percentage % ppts 4

6 2013 Segment Results Segment Turnover (HK$ Million) Profit (HK$ Million) Change Change Residential Property 15, , % 4, , % Commercial Property Leasing % % Others % Total 15, , % 5, , % 5

7 Business Review 6

8 Financial Update - Ratings Company Type Ratings Rating Date Last Credit Rating Action S&P Issuer & Bond Ratings BBB- 11-Nov-2013 Outlook STABLE Moody s Issuer & Bond Ratings Baa2 12-Nov-2013 Outlook STABLE Fitch Issuer & Bond Ratings BBB 11-Nov-2013 Outlook STABLE In Nov 2013, S&P, Moody s and Fitch Ratings initially assigned COGO Long Term Issuer Default Ratings of BBB-, Baa2 and BBB respectively with Stable Outlook. Ratings reflect COGO's standalone credit strengths and its leading market position in China's 3rd tier property sector, including its track record for business execution through the cycle and its strong cash flow. 7

9 Financial Update - Borrowing Year Total borrowing (HKD mn) Average Rate , % , % , % , % Since 2010, COGO has been making steady progress to optimize debt structure. As at 31 Dec 2013, total borrowings increased by 135% to HK$12.9 billion against last year. The average rate was 4.24%, representing a decrease of 1.42 and 0.58 percentage points from 2010 and 2012 respectively. In Jan 2014, COGO successfully issued US$400 million 5.125% Guaranteed Notes due

10 Financial Update Cont d Accounted Currency of Total Debt Total Debt Duration 100% 100% 50% 50% 0% RMB HKD/USD 0% <1 year 1-2 years 2-5 years >5 year As at 31 Dec 2013, about 31.1% and 68.9% of COGO s total borrowings were denominated in RMB and HK/US Dollar respectively. Moreover, 77.1% of total borrowings are due to be repaid after one year. Looking ahead, COGO will adhere to existing finance strategy to ensure a sound debt structure by choosing appropriate prudent financing methods, and providing financial resources in time. 9

11 Projects Sales in 2013 Contracted Amount* HK$17.22 Billion Contracted GFA* 1,638,400 sq.m. Subscription Amount HK$0.69 Billion Subscription GFA 67,700 sq.m. Sales by Value Sales by GFA 1st-Tier Cities 12.1% 3rd-Tier Cities 87.9% 1st-Tier Cities 3.6% 3rd-Tier Cities 96.4% * New statistic standard in contracted amount by GFA and value varies in 2013, thus the amount is not available to compare with 2012 s. 10

12 Property Sales from Major Projects in 2013 City Project Name Saleable GFA (sq.m.) Contracted Sales (HKD mn) Lanzhou The Arch 244,802 2,603.5 Hefei The Great Hill/Maison du Lac 239,437 2,505.1 Ganzhou International Community 241,739 2,265.4 Hohhot The Bund/Dragon Cove/The Arch 167,405 1,611.9 Yinchuan International Community 203,523 1,592.2 Guilin/Nanning The Chief Palace/The Green Peak/Royal Lakefront 137,285 1,179.6 Jilin Royal Waterfront/Royal East/ International Community 136,716 1,155.7 Beijing Lagoon Manor 32,570 1,096.3 Yangzhou Jade Garden 68, Nantong The Aqua 49,

13 Market Position in 2013 City Market Share(Presold Amount) Ranking Ganzhou 17.91% Hohhot 17.70% Lanzhou 13.98% Jilin 9.36% Yinchuan 8.42% Yangzhou 4.65% As of Dec 2013, out of 13 3rd tier cities, COGO achieved top 1 market share in five cities, and top 3 in one city. In the future, COGO will strive to achieve market share of top 3 in all cities entered. * Source: COGO s database. 12

14 Projects Completed for Occupation in 2013 City Project Name GFA Completion ( 000 sq.m.) Beijing Lagoon Manor Hohhot Jilin Royal East 83.1 The Arch 90.4 Dragon Cove The Bund Royal Waterfront 6.2 Royal East 10.3 International Community 4.5 Yinchuan International Community Hefei The Great Hill Maison du Lac 98.5 Guilin The Chief Palace 99.8 Nanning The Green Peak 50.5 Lanzhou The Arch Ganzhou International Community Yangzhou Jade Garden 85.3 Changzhou Dragon Bay 45.3 Total 2,005.6 A total of 17 projects were completed in Total Gross Floor Area (GFA) completed for occupation was 2,005,600sq.m.. Over 77% of the total saleable GFA sq.m. completed was sold by 31 st Dec At the end of period, properties under construction and stock of completed GFA amounted to 3,718,717 sq.m. and 698,573 sq.m. respectively, a healthy level. 13

15 New Land Acquisition in 2013 City Project Name Total Land Area Total GFA Attr. GFA Attr. Land Cost % (sq.m.) (sq.m.) (sq.m.) (RMB mn) 1 Hohhot Xing an South Road Project 100% 122, , , Yancheng Juheng Road Project 100% 146, , , Changzhou Fenghuang Road 100% 158, , , Hefei Nanning Road Project 100% 198, , , , Hohhot Hubilie Road Project 100% 96, , , Yangzhou Jiefang Road Project 100% 56, , , Changzhou Taishan Road Project 100% 81, , , Nantong Shiji Road Project 100% 65, , , Jilin Nanshan Street Project#1 85% 324, , , Jilin Nanshan Street Project#2 100% 32, , , Yangzhou Huayangdong Street Project 100% 160, , , Yancheng Kaifeng Road Project 100% 88, , , Shaoxing Changming Street Project 100% 85, , , Total 1,617, ,555, ,446, ,

16 Landbank as of 2013 Total Landbank: million sq.m. Attributable Landbank: million sq.m. City Total GFA ( 000sq.m.) Attr. GFA ( 000sq.m.) Attr. % 1 st -Tier 1 Beijing % 3 rd -Tier 2 Jilin 1, , % 3 Hohhot % 4 Yinchuan 2, , % 5 Hefei % 6 Guilin % 7 Nanning % 8 Lanzhou % 9 Ganzhou 1, , % 10 Yancheng % 11 Yangzhou % 12 Nantong % 13 Changzhou 1, , % 14 Shaoxing % Total 11, , % 15

17 Prospect & Strategy 16

18 Urbanization Benefits 80% 70% 60% 50% China Urbanization Trend 1,200 1, % 50% 40% Urbanization Rate& GDP Growth in PRC 40% % 30% 20% 10% % 10% 0% 2030E 2028E 2026E 2024E 2022E 2020E 2018E 2016E 2014E % Urbanization Rate Urban Population(million) Urbanization Rate Real GDP Growth Total GDP Contribution from Property Sector It is estimated that the urbanization rate will reach 70% with 1 billion urban population. A one percent rise in the urbanization growth rate pushes an additional 7 trillion RMB investment demand per year. Urbanization will substantially propel the property market into experiencing a growth period, along with enormous development opportunities. *source: NBS and local government report 17

19 3rd tier Cities & Metropolitan Areas Metropolitan areas and two horizontal and three vertical urbanization strategic patterns are the important vehicles to achieve the urbanization construction. Harbin-Changchun Metropolitan Area Peripheral 3rd tier cities in metropolitan areas will benefit from prime cities population and resources spill-over so as to promote economic growth and harmonious development of each city. 14 3rd tier cities COGO entered into are distributed in metropolitan areas. The vibrant, forward-looking layout in these areas creates a solid foundation to deliver the development dividends to these 3rd tier cities. Metropolitan Area along the Yellow River in Ningxia HBE Metropolitan Area Lan-Xi Metropolitan Area Wan-Jiang Urban Belt Xia-Gan Urban Belt Yangtze River Delta In future, the continued population expansion will slow down in prime cities as a result of the limited urban scale. More importantly, urban population growth will accelerate in 3rd tier cities of metropolitan areas. The coordinated development of metropolitan areas will boost 3rd tier cities economy and property market in a healthy, sustainable way. Beibu Gulf Urban Belt Cities COGO entered Metropolitan Area on the West Coast of Strait *source: Sina & Soufun 18

20 Outlook for 2014 Macroeconomy of China Economy in 3rd tier Cities Property Market China s economic adjustment will continue, along with the proper GDP growth rate. The issue of China s excess capacity will be solved by innovation and reform so as to raise the quality and efficiency of economic development. The central bank will keep its active fiscal policy and stable monetary policy. The macro- economy, supply of money and credit, and social financing will maintain a steady growth. The money supply and credit scale are kept at a proper level to stimulate the economic growth and the rise of household income. The roll out of new polices in 3rd tier cities stimulates the development of small-medium cities. The new policies include the reform of Hukou, rural land and housing, as well as completing related facilities and services. The continuously expanding population and urban area expansion in COGO s 3rd tier cities will further boost local economic strength and comprehensive competiveness. Many 3rd tier cities start to open up their own preponderant industries with the aim of exploring new areas of growth. As a result, the sustainability of economic growth & risk resistant ability are increased significantly. 3rd tier cities are the breakthrough of urbanization construction. With the progress of the urbanization, the improvement of infrastructures and the redevelopment of shanty towns, the rigid and upgrading demand will increase significantly which brings us new opportunities to develop and grow in 3rd tier cities. In a particular historical period, when 3rd tier cities begin to expand, the housing supply would be driven at a rapid pace by urban areas enlargement and the increase in infrastructure investment. The sustainable development of population and economy will promote the formation of a stable rigid demand in the market to digest the short term s oversupply and balance the supply and demand in the long term. 19

21 Focus for Product To target the high-end market, provide small- and medium-sized commodity housing units for rigid housing demand and offer boutique products catering for local demand. 2 Investment To make prudent land investment decisions, maintain a reasonable land costs and keep a proper allocation of projects of different scale, so as to keep the leading position of profitability in the industry. 3 Financial To optimize the debt structure, choose offshore financing methods at reasonable cost, and increase the proportion of long term debt as well as to strictly control the net gearing ratio. 4 Marketing To adapt products and marketing strategy to a constantly changing market, seize market opportunities, and maintain the selling ratio at a stable level. 20

22 Target for Annual Target 2013 Completion Net Profit 20% Growth 30.6% Growth Contracted Sales (HK$ bn) New Land Acquisition (mn sq.m.) GFA Completed (mn sq.m.) New Project Commencement (mn sq.m.) Total CAPEX (HK$ bn)

23 Q&A Session Thanks 22

24 DISCLAIMER These materials have been prepared by China Overseas Grand Oceans Group Ltd. ( COGO or the Company ) solely for information use during its presentation may not be reproduced or redistributed to any other person without the permissions from COGO. By attending this presentation, you are agreeing to be bound by the foregoing restrictions. It is not the intention to provide, and you may not rely on these materials as providing, a complete or comprehensive analysis of the company s financial or trading position or prospects. The information and opinions in these materials are provided as at the date of this presentation and are subject to change without notice. None of the Company nor any of its respective affiliates, advisors or representatives shall have any liability whatsoever (in negligence or otherwise) for any loss howsoever arising from any use of these materials. The information in this material contains certain forward-looking statements. These include statements regarding outlook on future development schedules, business plans and expectations of capital expenditures. These statements are based on current expectations that involve a number of risks and uncertainties which could cause actual results to differ from those anticipated by the Company. The materials and information in the presentations and other documents are for informational purposes only, and are not an offer or solicitation for the purchases or sale of any securities or financial instruments or to provide any investment service or investment advice. 23