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2Q2011 Results Presentation CENTRALAND LIMITED 4 August 2011 A Leading Zhengzhou-Based Property Developer and Property Manager … … Focused on Wholesale Malls
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CentraLand Limited - 2Q2011 Results Presentation

May 08, 2015

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Investor Relations

CentraLand Limited - Second Quarter Financial Statements and Dividend Announcement for the Period Ended 30 June 2011
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Page 1: CentraLand Limited - 2Q2011 Results Presentation

2Q2011 Results Presentation

CENTRALAND LIMITED

4 August 2011

A Leading Zhengzhou-Based

Property Developer and

Property Manager …

… Focused on Wholesale Malls

Page 2: CentraLand Limited - 2Q2011 Results Presentation

CENTRALAND LIMITED

2

Contents

Company Overview

Financial Review

Our Portfolio

Page 3: CentraLand Limited - 2Q2011 Results Presentation

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Company Overview

Page 4: CentraLand Limited - 2Q2011 Results Presentation

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Business acquired by present management in November 2003

Focused mainly on specialty wholesale trading hubs

Listed on the SGX Mainboard on Feb 1, 2008

Completed aggregate GFA of 226,718 sq m of commercial / residential space

Planned estimated GFA of additional 862,092 sq m to be completed by 2015

Total land bank : 1.54 million sq m

A Leading Zhengzhou-Based

Property Developer and Property Manager

Listing SGX Mainboard

Issued Share Capital 1,845,000,000

Free Float 13.3%

Share Price (As at May 9, 2011) S$0.360

Market Capitalisation

(As at May 9, 2011)S$664.20 mil

Net Asset Value Per Share (June 30, 2011)

15.48 Singapore cents

Major Shareholders

Ember Vision (Mr Li Wei & Mr Wang Peng) – 48.6%

Marble Focus (Mr Yan Tao) – 20.8%

CIM X Limited – 8.7%

Page 5: CentraLand Limited - 2Q2011 Results Presentation

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Our Portfolio (Geographical location)

J-Expo 1 & 2

Small consumer goods wholesale mall

Tianrong Project

Fashion apparel wholesale mall

Jiancai Gang

Wholesale mall for automobile parts and building materials

Property management services

Nongye Road Project

Mixed use development: retail and residential

Border of old city centre and new CBD

Guoling Shanshui

High-end, integrated residential development

25 km or 20 mins drive from Zhengzhou City centre; 5 km south of Yellow River, where the Yellow River Scenic Area is located

Guoling Shanshui

Tianrong

Zhengdong New CBD

J-Expo 1 & 2

Nongye Road

Jiancai Gang

N

Page 6: CentraLand Limited - 2Q2011 Results Presentation

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Our PortfolioLand Bank/ Site Area

(sq m)

Saleable/Leasable

Estimated GFA (sq m)Remarks

Completed property

Commercial property

J-Expo 1 (金智●万博商城 1) 9,771 65,890 Sold and delivered 78.6% of

saleable GFA

(As at 30 Jun 2011)

Property under development Estimated Construction

Schedule

Residential property

Phase III of Guoling Shanshui (果岭山水)

Remaining land bank at Guoling Shanshui

174,412

1.5 mil

132,763

TBA

2Q 2009 – 4Q 2012

--

New projects

Commercial properties

J-Expo 2 (金智●万博商城 2) 9,000 93,000 4Q 2010 – 1Q 2012

Tianrong Project

- Tianrong Fashion City (天荣时装城)

-Old Residential Area, adjacent to Tianrong Fashion

City (旧住宅区)

24,026

16,792

553,0001 2012 – 2016

Mixed residential & retail property

Nongye Road Project (农业路项目) 16,123 100,092 4Q 2010 – 3Q 2012

Property Management

Jiancai Gang & Tianrong Auto-city

(建材港兼天荣汽配城)

758,574 354,568Tenure of 20 years:

11 Nov 2009 – 30 Jun 2028

1 Based on amalgamated site area of Tianrong Fashion City and Old Residential Area

Page 7: CentraLand Limited - 2Q2011 Results Presentation

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Financial

Review

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Income StatementRMB ’mil 1H2011 1H2010 Change (%)

Revenue 56.4 60.9 (7.4)

Gross Profit 38.9 40.7 (4.4)

Other Income 1.3 1.3 (4.4)

Profit Before Tax 3.4 5.2 (34.4)

Profit for the Year 2.7 4.1 (34.0)

Selling Expenses 3.7 3.9 (4.1)

Admin Expenses 25.8 26.1 (1.4)

Effective Tax Rate 21.0% 21.5% (0.5) ppt

Gross Profit Margin 69.0% 66.8% 2.2 ppt

Profit Before Tax Margin 6.1% 8.6% (2.5) ppt

Profit for the Year Margin 4.8% 6.7% (1.9) ppt

1H: For the six months ended 30 June

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Income StatementRMB ’mil 2Q2011 2Q2010 Change (%)

Revenue 28.0 31.0 (9.6)

Gross Profit 19.4 20.1 (3.2)

Other Income 0.7 0.6 12.0

Profit Before Tax 0.8 1.9 (59.6)

Profit for the Year 0.6 1.3 (56.2)

Selling Expenses 1.5 1.6 (6.0)

Admin Expenses 14.0 13.6 2.9

Effective Tax Rate 24.5% 30.3% (5.8) ppt

Gross Profit Margin 69.3% 64.6% 4.7 ppt

Profit Before Tax Margin 2.7% 6.0% (3.3) ppt

Profit for the Year Margin 2.0% 4.2% (2.2) ppt

2Q: For the three months ended 30 June

Page 10: CentraLand Limited - 2Q2011 Results Presentation

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* Based on post-Invitation share capital of 1,845,000,000 Shares

Balance Sheet Highlights

RMB’ mil As at 30 Jun 2011 As at 31 Dec 2010

Cash & Bank Balances 942.4 190.4

Net Assets 1,529.1 1,526.4

- Properties Held for Development 965.0 965.0

- Properties Held Under Development 589.8 501.2

- Properties Held for Sale 112.3 112.3

- Deposits Paid - 300.0

Receipts in Advance (178.9) (49.5)

Interest-bearing Bank & Other Borrowings (898.0) (813.0)

Net Gearing Ratio (%) 65.1% 94.6%

NAV per Share (RMB cents) * 82.88 82.73

Page 11: CentraLand Limited - 2Q2011 Results Presentation

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Our Portfolio

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Our First Commercial Project:

J-Expo 1 (金智•万博商城 1)

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Status of J-Expo 1 (金智•万博商城 1)

As at 30 June 2011

*302 units of the unsold units on level 4 and 5 were rented out as at 30 June 2011.

LevelsCompletion

Date

Total

Saleable

GFA (sq m)

UnitsNo of Units

Sold*

No of Units

Delivered*

% of GFA

Sold &

Delivered

Average

ASP/unit

(RMB/sqm)

B1, L1-L3 2Q 2008 36,2821,792 retail

units1,691 1,679 17,132

L4-L5 2Q 2008 18,297768* retail

units482 451 11,777

L6-L12 2Q 2008 11,311192 office

units162 147 6,259

Total 65,890

2,560 retail

units/192

office units

78.6%

(51,772 sq m)14,226

21.4% GFA for

lease

78.6% GFA sold

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TianrongProject

Zhengzhou Railway Station

Zhengzhou Long

Distance Bus Station

J-Expo I

J-Expo 2

A Small Consumer Goods Wholesale Mall

Strategic location

Within walking distance to Zhengzhou Railway

station and Zhengzhou Long Distance Central

Bus Station

Located in Erqi District (二七区) within the main

wholesale centre of Zhengzhou City

In response to strong market demand

Adjacent to J-Expo 1

Soft launch: 287.4% rate of registration of

interest 7,184 downpayments to ballot for 2,500 retail units

(as at close of registration on 25 Oct 2010)

Total site area of 9,000 sq m

Acquired for RMB150 million

Planned total leasable GFA of 93,000 sq m

Retail space: 70,000 sq m

Office space: 15,000 sq m

Others: 8,000 sq m

Retail Trading Hub (Erqi District)

Commodities Trading Hub (Railway District)

Fashion Trading Hub (Guancheng District)

J-Expo 2 (金智•万博商城 2 )

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J-Expo 2 (金智•万博商城 2 )

Started construction:

4Q 2010

Expected completion:

1Q 2012

J-Expo 2

J-Expo 1

Progress of construction as at 15 March 2011

Page 16: CentraLand Limited - 2Q2011 Results Presentation

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TianrongFashion

City

Old Residential

Area

Zhengzhou Long

Distance Bus

Station

Zhengzhou Railway Station

Tianrong Project (天荣时装城)

A Fashion Apparel Wholesale Mall

Strategic location Close proximity (less than 1km) to Zhengzhou

Railway Station & Zhengzhou Long Distance Central Bus Station

Located within the fashion trading hub

Total site area of 40,818 sq m

Comprises Tianrong Fashion City and Old

Residential Area

Planned total leasable GFA of 553,000 sq m

Retail space: 428,000 sq m Office space: 69,000 sq m Others: 56,000 sq m

Landmark project in Henan Province To be developed in stages over 5 years To be fully integrated with supporting

infrastructure

Page 17: CentraLand Limited - 2Q2011 Results Presentation

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Tianrong Project – Acquisition Status

Tianrong Fashion City:

24,026 sq m

(4 land parcels)

Old Residential

Area:

16,792 sq m

Total intended

acquisition

site:

40,818 sq m

• Acquired 80%

stake in 2 land

parcels for

RMB440 million

• Acquired 80%

stake in 2 land

parcels for

RMB360 mil

• Adjacent site to

Tianrong

Fashion City

• Land cost

subject to

government

auction

• To develop

into an

integrated

commercial

development

over a 5-year

period

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Wholesale Mall for

building materials and automobile parts

Strategic Location

Within North Ring Trading Hub: one of Zhengzhou City’s 6 largest

trading hubs

Approx 1,300 tenants

Annual turnover of approx RMB1 billion

Aggregate gross floor area: 354,568 sq m

Site area: 758,574 sq

Sub-division of Jiancai Gang to:

Jiancai Gang: servicing wholesalers of building materials; and

Tianrong Auto-city: to serve wholesalers of automobile parts

Jiancai Gang (建材港)

Two stable income streams:

Sub-leasing

Property management

Contributes approx RMB80 million per year in rental income and management fees to the Group

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Jiancai Gang (建材港) &

Tianrong Auto-city (天荣汽配城)

Demarcation of land use

As at March 2011

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Jiancai Gang & Tianrong Auto-city

North Ring Business District

Geographical Location

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Nongye Road Project

Nongye Road Project (农业路项目)

Residential cum

retail development

Acquired Nongye Road site

for RMB70 mil

Total site area of 16,123 sq m

Strategic location

At the boundary of the old city

centre’s business district and the

new Zhengdong CBD

Planned total saleable GFA

of 100,092 sq m

Retail space: 15,407 sq m

Residential units: 84,685 sq m

Page 22: CentraLand Limited - 2Q2011 Results Presentation

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Nongye Road Project (农业路项目)

Started construction:

4Q 2010

Expected completion:

3Q 2012

Artist Impression

Progress of construction as at March 2011

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Phase I

Yongfu 雍府

Phase I

Mufu 睦府

Phase III

Guoling Shanshui (果岭山水)

Remaining site area of 1.5 mil sq m held for future development

Phase I & II (Completed and fully sold)

Phase I: GFA of approx 57,954 sq m

Phase II: GFA of approx 102,874 sq m

Phase III – Total GFA of 132,000 sq m

Stage 1: GFA of approx 43,000 sq m; construction underway

Stage 2 GFA of approx 89,000 sq m; construction underway

Phase IIXinyu Lanwan

心屿澜湾

Phase II

Huguang Shanse

湖光山色

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Remaining land bank

(1.5m sq m)

9%

76%

15%

Guoling Shanshui (果岭山水)

Phase III & Beyond

Phase III development on track

Site area of 174,412 sq m

Stage 1 construction underway

Saleable GFA of 43,763 sq m

Stage 2 construction started in 4Q2010

Saleable GFA of 89,000 sq m

Remaining land bank

Total site area of 1.5 mil sq m

Land Bank (Site Area)

Phase III (Development on track)

(174,412 sq m)Phase I & II

(Completed)

(276,735 sq m)

Phase III Type of unitTargeted

Completion Date

Total Saleable GFA (sq m)

UnitsNo of Units Sold*

% GFA SoldAverage ASP/unit

(RMB/sqm)

Stage 1Low-rise

apartments

4Q2012

43,763540

Low-rise apartments485

91.6%

(40,101 sq m)6,211

Stage 2

Low-rise apartments / Duplexes /

Townhouses / Commercial units

52,800576

Low-rise apartments- - -

14,59648

Duplexes17

70.1%

(10,236 sq m)11,854

21,604 Under planning - - -

*As at 30 June 2011

Page 25: CentraLand Limited - 2Q2011 Results Presentation

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Remaining Land Bank

1.5 million sq m

Master Plan

Approved for development in phases

Lifestyle Development

Luxury holiday homes

Part of land bank leased out to third parties for complementary facilities

Golf course

Hotel

Commercial retail units

Guoling Shanshui (果岭山水)

Phase III & Beyond

Artist Impressions

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Guoling Shanshui (果岭山水) Phase III

Show unit interiors

Construction underway

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Project Pipeline

20152009 2010 2011 2012 2013 2014

Guoling Shanshui Phase III

J-Expo 2

Tianrong Project

Nongye Road Project

Property under development

New projects

Jiancai Gang

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Project Pipeline – Total GFA

Uses Saleable/Leasable Estimated GFA (sq m)

Residential

- Guoling Shanshui Phase III

- Nongye Road Project

216,685

132,000

84,685

Retail

- J-Expo 2

- Tianrong Project

- Nongye Road Project

513,407

70,000

428,000

15,407

Office & Commercial

- J-Expo 2

- Tianrong Project

84,000

15,000

69,000

Property Management

- Jiancai Gang

354,568

354,568

Total : 1,168,660 sq m

Page 29: CentraLand Limited - 2Q2011 Results Presentation

CentraLand Limited

CENTRALAND LIMITED

Johnson Choo

Vice President

Investor Relations and Corporate Communications

Mobile: +65 94506527 / +86 15838381086

Email: [email protected]