2016 Annual Results Presentation. 21 March 2017

Transcription

1 2016 Annual Results Presentation 21 March 2017

2 Contents 1. Financial Summary 2. Business Review 3. Targets and Focuses in 2017

3 Financial Summary

4 Consolidated Income Turnover Gross Profit Overall Gross Profit Margin (HK$ billion) (HK$ billion) % 20% 15% 10% 5% 19.8% 11.5% 16.3% % In 2016, the Group s turnover was approximately HK$30.6 billion, representing an increase of 22.6% as compared with last year; Gross profit was approximately HK$5.0 billion, representing an increase of 74.2% as compared with last year; Overall gross profit margin was 16.3%, representing an increase of 4.8% as compared with last year. 3

5 Consolidated Income FY2016 FY2015 Turnover (HK$billion) Gross Profit (HK$billion) Overall Gross Profit Margin (%) Profit/Loss Attributable to Shareholders (HK$billion) 0.08 (2.82) Basic Earnings/Loss per Share (HK cent) 2.21 (76.94) The Group successfully achieved a turnaround in profit attributable to shareholders for the Year ended 31 Dec 2016, thanks to the 1) significant increase in turnover; 2) remarkable improvement on gross profit and overall gross profit margin; 3) considerable decrease in impairment loss on properties under development and held for sale; 4) gain on disposal of interests in a subsidiary; and 5) efficacy in finance cost control Basic earnings per share was HK2.21 cents 4

6 Recognized Sales Property Development In 2016, recognized sales and recognized area sold reached approximately RMB26.16 billion and 2.35 million sq.m., respectively. The recognized average selling price was approximately RMB11,111 per sq.m Recognized Sales (RMB billion) Recognized Area Sold (million sq.m.) Recognized Average Selling Price (RMB/sq.m.) 11,111 8,758 Note: Including car parking Property Development Turnover (By Region) Property Development Turnover by Region (YoY Comparison) (RMB billion) 22% 20% % 27% Yangtze River Pearl River Southwestern Others Yangtze River Pearl River Southwestern Others

7 Assets and Liabilities As of 31 December 2016, the Group s total assets amounted to approximately HK$122.1 billion, down by 5.8% comparing to the beginning of Cash was approximately HK$18.4 billion, remaining broadly stable over the year. Shareholders Equity reached approximately HK$24.7 billion, down by 3.5% as compared to the beginning of the year. Net asset value per share was approximately HK$6.74, decreased by 3.4%. 31 Dec Dec Change (%) Shareholders Equity and Total Assets (HK$ billion) Total assets --- inc. cash (HK$ billion) (HK$ billion) % % Total liabilities --- inc. borrowings from financial institutions and bonds (HK$ billion) (HK$ billion) % % Shareholders equity (HK$ billion) % 0.0 Shareholders' Equity Total Assets Net asset value per share (HK$) % 31 Dec Jun Dec

8 Business Review

9 Business Review In 2016, the Group adopted the following operational strategies: Inventory Clearance, Investment Control, Risk Prevention, Innovative Development and Efficacy Improvement and has successfully achieved the annual targets. Management Policy Problem-oriented solution, improving operational performance Real-time monitoring of projects under development with a high standard of operational system; Enhancing budgetary management to improve risk control abilities; Fine-tuning debt structure in a dedicated way Obstacles-focused solution, driving to reformation and innovation Mapping out a long-term strategy with focuses on innovation, reformation and problems-solving exercises, successfully making a breakthrough and achieving turnaround performance as well as gradually executing the asset-light business model for future growth Financing channels expansion, strengthening risk management Delivering new innovative financing tools to alleviate debt burden; Reducing finance costs; Improving debt structure and risk control system; Coping with the policies on value-added tax carried out by the government 8

10 Business Review In 2016, the Group adopted the following operational strategies: Inventory Clearance, Investment Control, Risk Prevention, Innovative Development and Efficacy Improvement and has successfully achieved the annual targets. Branding & Marketing Strategy Contracted sales reached a new record high With the annual branding theme Poly Brings You Joyful Life, the pre-sales, contracted sales and cash collections have achieved a year-on-year increase Overall improvement on sell-through rate The sell-through rate of pre-sales and contracted sales have been experiencing a continuous year-on-year growth, and thus achieving a complete breakthrough in sales performance Significant enhancement on inventory clearance Setting up a cross-regional team specialized in inventory clearance, project development and sales strategy 9

11 Contracted Sales In 2016, Poly Property Group exceeded its annual sales targets by achieving approximately RMB34.9 billion and 2.79 million sq.m. of contracted sales and area sold respectively, representing a year-on-year increase of 16% and 9%, respectively. During the year, Poly Property Group had 60 projects on hand for sales, of which 6 of them were debut launches. (million sq.m.) Contracted Sales and Contracted Area Sold FY2014 FY2015 FY2016 Contracted Area Sold Contracted Sales (RMB billion) Contracted Sales by Month (RMB billion) January February March April May June July August September October November December 10

12 Newly Launched Projects in 2016 Projects Debuted In Guangzhou Poly Gratified West Bay February 2016 Weihai Poly Maple Valley March 2016 Guangzhou Poly Jade Hills June 2016 Shanghai Poly Greenland Plaza June 2016 Kunming Poly One Family One World September 2016 Wuhan Poly Up Town December 2016 Guangzhou Poly Gratified West Bay Weihai Poly Maple Valley Guangzhou Poly Jade Hills Kunming Poly One Family One World Wuhan Poly Up Town Shanghai Poly Greenland Plaza 11

13 Contracted Sales by Region By leveraging on the brand equity of Poly Brings You Joyful Living and grasping opportunity from market window, Poly Property Group has sustained the awareness of its brand image and built regional sales platforms to proactively accelerate its sales and innovatively implement marketing campaigns, thus successfully exceeding the annual sales target. During the year, the top five cities by the value of contracted sales were Shanghai, Guiyang, Guangzhou, Nanning and Ningbo Contracted Sales- by Region 2016 ASP of Contracted Sales- by Region Yangtze River Delta 38% Yangtze River Delta Pearl River Delta Pearl River Delta 18% RMB28,300/ sq.m. RMB13,000/ sq.m. Southwestern 23% Others 21% 0% 10% 20% 30% 40% Southwestern RMB7,200/ sq.m. Others RMB10,400/ sq.m. 12

14 Contracted Sales by Product During the year, residential units accounted for approximately 74% of Poly Property Group s total contracted sales; of which residential units below 90 sq.m. were accounted for 13%, residential units from 90 to 144 sq.m. were accounted for 64% (small-to-medium sized residential units accounted for 77% in total); and residential units that were larger than 144 sq.m. were accounted for 23%. Contracted Sales in 2016 (By Product Mix) Contracted Sales in 2016 (By the Size of Residential Units) 7% Apartments 74% 9% 6% 4% Villas Office Buildings Commercials Car Parking Spaces 64% 23% 13% <90 sq.m sq.m sq.m. 13

15 Newly Commenced Construction In 2016, 21 projects commenced construction with a total GFA of approximately 3,714,000 sq.m.. 2 of them commenced construction for the first time. During the year, the gross floor area of the completed construction projects amounted to 3,007,000 sq.m.. Newly Commenced Construction Projects in 2016 (By Region) Yangtze River Delta Suzhou Poly West Bank Villa Suzhou Poly Lake Mansion Ningbo Poly Wonderland Pearl River Delta Guangzhou Poly Gratified West Bay Foshan Poly Central Park Southwestern Guiyang Poly Park 2010 Guiyang Poly The Place of A Lake Guiyang Poly Phoenix Bay Zunyi Poly Metropolis of Future Nanning Poly Crescendo Nanning Poly Hearty Nanning Poly Town Kunming Poly One Family One World Others Wuhan Poly City Wuhan Yangyuan Project Wuhan Poly Up Town Harbin Poly City Jinan Poly Center Jinan Poly Elegant Garden Weihai Poly Maple Valley Hong Kong Tuen Mun Project 14

16 New Land Reserves During the year, Poly Property Group acquired 4 pieces of land in Kunming, Nanning, Yantai and Shanghai, with an aggregated planned gross floor area of approximately 1,230,000 sq.m.. New Project Kunming Poly One Family One World Nanning Poly Hearty, Phase II * 注 : 更新截至 2017 年 2 月底 Site Area ( 000 sq.m.) Total Planned GFA ( 000 sq.m.) Interest Attributable to the Group % Project type Current Status * Commercial, Residential & Offices % Residential Under Construction Under Construction Yantai Poly Ocean Luxe % Residential Under Planning Shanghai Jiading Project % Residential Under Planning Total 280 1, *As of 28 February 2017 Kunming Poly One Family One World Nanning Poly Hearty 15

17 Land Bank Portfolio As at the end of 2016, the total land bank for projects under development and land reserved for future development were approximately 8.96 million sq.m. and million sq.m. respectively. The total land bank was million sq.m.. Land Bank Under Development and Land Reserved for Future Development Land Bank (By Region) (million sq.m.) % 16% As of 31 Dec % End of 2015 End of 2016 Land Under Development Land Reserves 47% Yangtze River Delta Pearl River Delta Southwestern Others 23% 49% 15% As of 31 Dec % 16

18 Targets and Focuses in 2017

19 Contracted Sales Targets in 2017 Coping with the continuous stagnant economy and the differentiated real estate market, the Group will proactively diversify its product types and devise effective sales and marketing plans by focusing on genuine demands and analyzing various needs from different regions. Poly Property Group is endeavored to realize its annual sales targets by achieving the contracted sales of RMB35 billion and a contracted area of 2.8 million sq.m.. Contracted Sales and Target Contracted Area Sold and Target (RMB billion) (million sq.m.) A 2016T 2016A 2017T A 2016T 2016A 2017T 18

20 2017 Saleable Resources and Sales Pipeline Poly Property Group is expected to launch 4 debut projects and 45 continuing projects in 2017, with a total saleable GFA of approximately 2.98 million sq.m Saleable GFA: by Region 2017 Sales Pipeline: Debut Launches Debut Project Planned Debut Date 22% FY % 11% Hong Kong Kai Tak Vibe Centro Shanghai Jiading Project March 2017 October 2017 Deqing Fuxi Project November % Yangtze River Delta Pearl River Delta Southwestern Others Yantai Poly Ocean Luxe December

21 2017 Key Missions Goal-oriented, leading to a sustainable development Adopt budgetary strategy Study the surrounding situation Broaden the sources of income and economize on expenditures Implement risk control measures Structure-adjusted, leading to a balanced development Adjust the inventory structure Adjust the debt structure Adjust the development structure Efficacy-enhanced, leading to a healthy development Optimize the finance management system Enhance product standardization Strengthen cost control and real-time monitoring system Emphasize on safety and corporate social responsibility Reform-deepened, leading to an innovative development Business transformation and upgrade Exploration in finance realm Strategic investment opportunity 20

22 Thank you!