Interim Results Presentation. July

Transcription

1 Interim Results Presentation July

2 Interim Results Business Review Prospect & Strategy 1

3 Interim Results 2

4 1H 2013 Key Financials Unit 1H H 2012 Change Turnover HK$ Million 8, , % Gross Profit HK$ Million 2, , % Net Profit HK$ Million 1, , % Gross Margin Percentage % ppts Net Margin Percentage % ppts EPS HK cents % 3

5 Segment Results Segment Turnover (HK$ Million ) Profit (HK$ Million ) 1H H 2012 Change 1H H 2012 Change Residential Property 7, , % 2, , % Commercial Property Leasing % % Others % Total 8, , % 2, , % 4

6 1H 2013 Key Financials Cont d Unit 30/6/ /6/2012 Change Cash on Hand HK$ Million 9, , % Shareholder s Equity HK$ Million 9, , % Net Gearing Percentage % 12.4% Net Cash ROE* Percentage % ppts ROA* Percentage % ppts * Half year figures 5

7 Business Review 6

8 Financial Update Year Total borrowing (HKD mn) Average Rate , % , % , % H 8, % Since 2010,the Group has been making steady progress to optimize debt structure. In the first half of this year, total loans increased by HK$ 3.1 billion. As at 30 June 2013, total borrowings of the Group were HK$ 8.65 bn. The average rate was 4.7%, representing a decrease of 1 and 0.1 percentage points from 2010 and 2012 respectively. 7

9 Financial Update Cont d 100% 80% 60% 40% 20% 0% Accounted Currency of Total Debt H2013 RMB HKD/US Total Debt Duration 100% 80% 60% 40% 20% 0% H 2013 <1 year 1-2 years 2-5 years >5 year As at 30 June 2013, about 37% and 63% of the Group s total borrowings were denominated in RMB and Hong Kong Dollar respectively. Moreover, 75.5% of total borrowings are due to be repaid after one year. In the future, the Group will adhere to existing finance strategy to ensure sound debt structure by choosing appropriate prudent financing methods, and providing financial resources in time. 8

10 Projects Sales in 1H 2013 Contracted Amount HK$8.45Billion Contracted GFA 775,000sqm Subscription Amount* HK$1.36Billion Subscription GFA* 112,000sqm *Note: as at the end of June 2013 Sales by Value Sales by GFA 1st-Tier Cities 16.5% 3rd-Tier Cities 83.5% 1st Tier Cities 4.7% 3rd Tier Cities 95.3% Project Name Contracted Property Sales from Major Projects Contracted Sales (HKD mn) Project Name Contracted Sales (HKD mn) The Arch. Lanzhou 1,117.5 International Community. Ganzhou 1,066.1 The Great Hill. Hefei International Community. Yinchuan The Bund. Hohhot Lagoon Manor. Beijing

11 Market Position in 1H 2013 City Market Share(Presold Amount) Ranking Hohhot 22.7% 1 Ganzhou 17.1% 1 Lanzhou 16.3% 1 Yinchuan 10.4% 1 Jilin 6.3% 1 In 1H 2013, the Group achieved market share of top 1 in five 3 rd -tier cities. In the future, the Group will strive to achieve market share of top 3 in all cities entered. 10

12 Projects Completed for Occupation in 1H 2013 City Project Name GFA Completion ( 000 Sq.m.) Beijing Lagoon Manor 86.0 Royal East 83.1 Hohhot The Arch 90.4 Dragon Cove 42.0 Jilin Royal Waterfront 2.0 Royal East 10.3 Yinchuan China Overseas Property International Community Hefei The Great Hill Maison du Lac 98.5 Guilin The Chief Palace 39.2 Nanning The Green Peak 50.5 Lanzhou The Arch Total A total of 12 projects were completed in 1H2013. Total Gross Floor Area (GFA) completed for occupation was 940,700 m 2. Over 84% of the total saleable GFA m 2 completed was sold by 30 th June At the end of period, stock of completed GFA amounted to 418,000 sq.m., a healthy level. 11

13 New Land Acquisition in 1H 2013 City Project Name Total% 1 Hohhot 2 Yancheng Xing an South Road project Juheng Road Project Land Area Total GFA Attr. GFA Attr. Land Cost (m 2 ) (m 2 ) (m 2 ) (RMB mn) 100% 122, , , % 146, , , Changzhou Fenghuang Road 100% 158, , , Total 427,544 1,459,175 1,293,790 2,

14 Landbank as of 1H 2013 Total Landbank: 9.64 million Sq.m Attributable Landbank: 8.38 million Sq.m City Total GFA ( 000m 2 ) Attr. GFA ( 000m 2 ) Attr. % 1 st -Tier 1 Beijing % 3 rd -Tier 2 Jilin % 3 Hohhot % 4 Yinchuan 3, , % 5 Hefei % 6 Guilin % 7 Nanning % 8 Lanzhou % 9 Ganzhou 1, , % 10 Yancheng % 11 Yangzhou % 12 Nantong % 13 Changzhou % Total 9, , % 13

15 Prospect & Strategy 14

16 Opportunities in 3-tier Cities 20% Growth Targets of GDP and Per Capital Disposal Income in % Target GDP growth rate in 2013 Per Capita Disposal Income Target in % 5% 0% Ganzhou(E) Hohhot Yinchuan Lanzhou Yangzhou Nantong Changzhou Yancheng Nanning Guilin Hefei Nationalwide,Jilin Unemployment Rate Target in % 1.0% 2.0% 3.0% 4.0% 5.0% In 2013, 3 rd -tier cities we entered are targeting a higher growth rate on GDP and disposable income, and lower unemployment rate than national average. In the near future, with significant growth in population, competitive industries will emerge in the 3 rd -tier cities so as to promote local economic momentum. The 3 rd -tier cities we entered are regional economic centers or ones with good potential due to their advantageous location in close proximity to more developed cities. *source: local government report 15

17 Opportunities in 3 rd -tier Cities Cont d 100% 80% 60% 40% 20% 0% The Urbanization Rate from The urbanization and economic growth will act as the main drivers of growth in housing demand. The continued economic growth will foster the sound development of urbanization, boost population growth and offer more employment opportunities, ensuring property market demand. The communities standard of living that used to be low and required improvement is rising - the result of increasing demand for upgraded housing in 3 rd -tier cities Urbanization rate Expected additional urbanization rate The central urban area enlargement and improvement of construction will upgrade living conditions and create a boom for local property market The Average Housing Price in Dec 2012&June 2013 Price in June 2013 Price in Dec 2012 Growth Rate 6.00% 5.00% 4.00% 3.00% 2.00% 1.00% 0.00% Central Urban Area Enlargement in 12 th 5-Year Plan Expected Additional Central Urban Area (sq.km.) Central Urban Area 2010 (sq.km.) Aggregate Growth Rate 200% 150% 100% 50% 0% *source: Sina & Soufun 16

18 Strategy Sustainable Growth To enhance business exposure in 3 rd -tier cities actively and prudently, steadily expand market share in cities that the company already entered, and look for new investment opportunities in potential cities. To adhere to the vision of products excellence and provide customers with unique and moderately advanced products to fit in with local market. To exercise detailed management in full value chain of property development through diligence and care to maintain the leading profitability in the industry. To implement appropriate risk control measures with financial indicators as core control target to maintain the sustainable growth. 17

19 Outlook for 2H 2013 Macroeconomic of China Economic in 3 rd -Tier Cities Property Market China's economic adjustment will continue, along with the improvement of the quality behind the numbers. China faces challenges from both international and domestic economic situations, however, it is believed that China's economic development engine will continue to stimulate the overall economy at a fast pace. The economic growth will further expand to 3 rd -tier cities and boost the economic strength and comprehensive competitiveness. With the implementation of Western Development Strategy, The Rise of central China Strategy and Revitalization of Northeast Strategy, the new opportunities for industry development will appear. The opportunities include the upgrade of both traditional industry clusters and emerging industry clusters. The rigid housing demand will dominate the property market in 3 rd -tier cities. With the progress of the new urbanization and reform of the household registration system, the urban population will increase, and the urban area will sprawl - attracting migrants and increasing the housing demand. 18

20 Target for Annual Target 1H 2013 Completion Net Profit 30% Growth Contracted Sales (HK$ mn) New Land Acquisition ( 000 Sqm) GFA Completed ( 000 Sqm) New Project Commencement ( 000 Sqm) Total CAPEX (HK$ mn) 17,000 8,448 4,000 1,459 1, ,000 1,430 12,000 6,500 19

21 Q&A Session Thanks 20

22 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.