china resources land limited -...
TRANSCRIPT
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2010 Interim Results Review
August 2010
CHINA RESOURCES LAND LIMITED
Agenda
Business Strategy
Completion Schedule
Land Bank
Financial Review
Highlights
2
HighlightsH
IGH
LIG
HTS
n Net profit in 1H 2010 rose 168.5% yoy to HK 3,461.8 mn on the back of 267.5% yoy increase in revenue
(HK12,412.5mn vs. HK3,377.9mn) and margin improvement in residential development;
n Overall margin stayed flat at 38.9%, (vs. 39.0% for 1H 2009). While IP gross margin remained high at
69.0%, development margin rose to 38.5% (vs. 34.7% for 1H 2009);
n On an adjusted basis, basic EPS in1H 2010 rose 156.7% yoy (HK 69.1 vs. HK 26.9 cents);
n Development operation saw a respective yoy growth of 368.6% in revenue and 419.4% in gross profit;
n IP sustained its strong underlying performance, with 24.0% and 20.9% yoy growth in revenue and gross
profit;
n We added 2.5 mn sqm GFA in new land bank this year as of August 22nd at a total cost of Rmb 6.0 bn,
thus further enhancing its strong earnings growth profile;
n As at August, 22nd, the Group had locked in a total of Rmb 29.3 bn contracted but unbooked sales
(including Rmb 19.1 bn sales contracted in 2009), of which Rmb16.6 bn is to be recognized in 2010;
n Differentiated business model, unparalleled parent supports, strong balance sheet and low funding costs put
the Group in an unrivalled position to deliver strong and sustained growth.
3
Income statementF I N
A N
C I A
L R E
V I E
W
Net Profit grew 168.5% yoy, driven by a rise in revenue and improvement in development margin
6 Months Ended 30 Jun (HK$ mn) % of % of
Sales Sales
Turnover 12,412.5 3,377.9 267.5% Development 11,061.7 89.1% 2,360.8 69.9% 368.6% Investment Property 749.2 6.0% 604.4 17.9% 24.0%
Gross Profit 4,823.9 38.9% 1,315.9 39.0% 266.6% Development 4,254.0 38.5% 819.0 34.7% 419.4% Investment Property 516.9 69.0% 427.5 70.7% 20.9%
IP Revaluation Gain 2,600.7 1,238.7Taxation -2,041.7 -628.9Minority Interest -1,115.6 -244.3
Attributable Net Profit 3,461.8 27.9% 1,289.5 38.2% 168.5% Core Profit 1,970.9 15.9% 581.8 17.2% 238.8% IP Revaluation Gain 1,513.8 688.0 One-off Items -22.9 19.7
EPS - Basic (HK$) 0.691 0.269 156.7%EPS - Fully Diluted (HK$) 0.687 0.268 156.8%DPS (HK$) 0.095 0.054 75.9%
1H 20101H
2009(Restated)YOY
Change
Agenda
Business Strategy
Completion Schedule
Land Bank
Financial Review
Highlights
5
Adjusted Net Profit and EPS Adjusted for Apple-to-Apple ComparisonF I N
A N
C I A
L R E
V I E
W
Underlying net profit growth was strong at 174.4% with core net profit growth at 238.8%
6 Months Ended 30 Jun (HK$ mn)
Reported Attributable Net Profit 3,461.8 1,289.5 168.5%Reported EPS (HK$) - Basic 0.691 0.269 156.7% - Fully Dilluted 0.687 0.268 156.8%
Adjustments for Non-recurrent or Non-comparable Items Less: Mark-to-market gains/(loss) on IRS (22.9) 19.7
Adjusted Underlying Attributable Net Profit 3,484.6 1,269.7 174.4%of which, Core net profit 1,970.8 581.7 238.8% Revaluation gain, net of deferred taxation+ MI 1,513.8 688.0Adjusted Underlying EPS (HK$) - Basic 0.695 0.271 156.5% - Fully Dilluted 0.692 0.269 157.2%
1H 20101H
2009(Restated)YOY
Change
6
Booking of property development income
F I N
A N
C I A
L R E
V I E
W
Development revenue rose 368.5%strongly on the back of 234.4% yoy growth in GFA booked
HK$mn sqm
Eco Living 509.8 29,100
Phonenix City 3.7 262
Oak Bay 789.7 51,369
Others 16.4 168
Shanghai Oak Bay 36.7 837
Shenzhen Park Lane 540.7 12,177
Chengdu Jade City 255.4 38,046
Chengdu Phonenix City 430.6 47,612
Chengdu Twenty-Four City 2.2 126
Wuhan Phonenix City 3.8 596
Wuhan Central Park 397.6 33,709
Hefei Frech Annecy 3.4 619
Hefei Park Lane Manor 418.4 65,296
Hangzhou MIXc Residence 3,171.1 99,633
Wuxi Taihu Int'l Community 201.7 24,492
Dalian Oriental Xanadu 2,059.4 60,414
Dalian Maritime 630.8 77,631
Changsha Phoenix City 448.2 110,177 Suzhou Villa 328.4 8,390 Chongqing Twenty-Four City 813.7 153,116 1H 2010 Total 11,062 813,770
1H 2009 Total 2,361 243,358
YOY Change, % 368.5% 234.4%
GFATurnover6 Months Ended 30 Jun
7
Sales contracted in 2010 (As of 22nd August)
C O
M P
L E
T I O
N S
C H
E D
U L
E
Beijing Oak Bay 616,757 294,943 8,582 238
Eco Living 217,490 122,353 166 7
Others 240 240 1
Shanghai The Bund Side 189,776 100,061 1,492 151
Oak Bay 230,795 61,712 8,644 346
Shenzhen Park Lane Manor 110,000 96,499 1,147 46
Chengdu Jade City 1,063,542 908,256 78,760 903
Twenty-four City 1,640,000 454,456 84,752 866
Phoenix City 694,576 361,106 93,299 761
Oak Bay 523,511 5,022 5,022 38
Wuhan Central Park 346,696 144,767 53,617 603
Hefei Park Lane Manor 195,004 169,529 31,292 225
Ziyunfu Project 223,771 91,343 91,343 599
Wuxi Taihu Int'l Commu. 1,017,698 332,116 24,349 283
Ningbo Tuscany Lake 130,352 98,967 8,443 268
Central Park Phase 284,348 104,495 38,055 619
City ProjectTotal GFA
Overgroud(sqm)
Accumulated GFASold as of August
22nd (sqm)
GFA Sold in2010 (sqm)
ContractedValue (RMB
mn)
8C O
M P
L E
T I O
N S
C H
E D
U L
E
Together with Rmb19.1bn sales contracted in 2009, the Group has a total of Rmb29.3bn contracted but unbooked sales as of Aug 22nd, 2010, of which Rmb16.6bn is to be recognized in 2010.
Sales contracted in 2010 (As of 22nd August)
Dalian Oriental Xanadu 166,137 156,514 6,285 237
Maritime 1,309,592 197,350 98,169 830
Suzhou Suzhou Villa 67,595 15,466 2,956 125
Changsha Phoenix City 1,198,040 308,495 106,725 458
Chongqing Twenty-four City 1 1,951,620 273,240 120,124 806
Shenyang The Arch 280,000 84,434 23,895 240
Oak Bay 891,434 23,360 23,360 259
Fuzhou Oak Bay 603,108 72,183 72,183 902
Others Car Park etc. 65,838 344
Total : 1,048,738 10,155
ProjectCityTotal GFA
Overgroud(sqm)GFA Sold in2010 (sqm)
Accumulated GFASold as of August
22nd (sqm)
ContractedValue (RMB
mn)
9
Average Selling Price of Key Projects
F I N
A N
C I A
L R E
V I E
W
Weighted avg. price rose 10.3% in 1H 2010 yoy while Jul. & Aug. prices stayed at 1H levels
RMB/sqm 1H 10 1H 09 YOY %July & August
2010Recent PriceChange %
Beijing Eco Living 36,681 16,456 122.9% 42,000-50,000 14.0%
Ningbo Tuscany Lake Phase II 31,798 14,977 112.3% 33,842 6.4%
Shanghai Oak Bay 39,961 20,554 94.4% 40,800 3.7%
Chengdu Jade City Phase IV 12,244 6,700 82.7% - -
Dalian Maritime 13,810 7,113 94.2% 8,119 -
Wuxi Taihu Int'l Community 11,963 6,461 85.2% 11,000 -8.0%
Beijing Oak Bay 27,713 14,905 85.9% 33,000 19.1%
Chengdu 24 City PhaseII 10,210 6,298 62.1% 10,406 1.9%
Chengdu Jade City Phase V 11,443 6,752 69.5% 11,549 0.9%
Chongqing 24 City 6,544 4,587 42.7% 7,272 11.1%
Suzhou Villa 42,920 29,950 43.3% - -
Hefei Park Lane Manor 7,508 5,122 46.6% 7,300 -2.8%
Dalian Oriental Xanadu 40,738 30,075 35.5% - -
Ningbo Central Park 15,851 10,352 53.1% 17,055 7.6%
Chengdu Phoenix City Phase I&II 8,118 5,704 42.3% 8,166 0.6%
Wuhan Central Park Phase I&II 11,145 8,387 32.9% 11,418 2.5%
Shenyang China Resources Arch 8,409 9,310 10.7%
Hunan Phoenix Phase II 4,309 3,445 25.1% 4,235 -1.7%
Shenzhen Park Lane 40,376 - -
Chengdu Oak Bay Phase I 7,599 - -
Hefei Ziyunfu Project 6,508 7,002 7.6%
Shenyang Oak Bay 10,807 12,892 19.3%
Fuzhou Oak Bay (Townhouse) 18,917 25,052 32.4%
Fuzhou Oak Bay (Apartment) 9,187 10,856 18.2%
Shanghai The Bund Side 34,482 175.5% 100,000
Shanghai Oak Bay 38,105 31.2% 40,000-50,000
Hangzhou Mixc Residential 31,562 42.6% 45,000
Weighted average price for contracted sales 9,735 8,824 10.3%
10
Income from IP + Property ManagementF I N
A N
C I A
L R E
V I E
W
IP sustained its strong momentum with a 23.4% yoy growth in revenue
Beijing China Resources Building 80.7 78.4 3.0% 97.4% 93.9% 3.5%
Beijing Other Investment Properties 68.5 50.8 34.8% 93.0% 95.5% -2.5%
Shanghai CR Times Square 102.5 92.9 10.4% 98.2% 92.5% 5.7%
Shenzhen City Crossing 362.4 287.6 26.0% 96.7% 99.0% -2.3%
Hangzhou MIXc 15.5 N/A N/A 85.4% N/A N/A
Property Management 116.1 94.7 22.5% N/A N/A N/A
Total Rental Income: 745.8 604.4 23.4%
Turnover HK$ mn Occupancy Rate %
1H 2010 1H 2009YOY
Change1H 2010 1H 2009
YOYChange6 Months Ended 30 Jun (HK$ mn)
11
MarginsF I N
A N
C I A
L R E
V I E
W
Development margin continued to rise with underlying IP margin stayed high at >80%
* Excluding revenue portion from residential management fee, gross margin from pure IP stayed high at >80%(83.2% for 1H10 vs. 84.5% for 1H09)
6 Months Ended 30 Jun (HK$ mn)
Turnover
Development 11,061.7 2,360.8 368.6%
Investment & Others 749.2 604.4 24.0%
Gross Profit
Development 4,254.0 819.0 419.4%
Investment & Others 516.0 427.5 20.7%
Gross Profit Margin 38.9% 39.0% -0.1%
Development 38.5% 34.7% 3.8%
Investment & Others 69.0%* 70.7%
1H 2010 1H 2009 YOY Change
12
Finance costsF I N
A N
C I A
L R E
V I E
W
Ready access to low cost debt funding offers CRL a unique competitive advantage
6 Months Ended 30 Jun (HK$ mn)
Interest on Bank Loans 344.7 302.2 14.1%
Less: Capitalisation -282.6 -243.2 16.2%
Finance Costs on P/L 62.1 59.0 5.3%
Average Interest Rate (p.a.) 2.23% 3.20% -30.3%
1H 2010 1H 2009 YOY Change
13
Financial positionF I N
A N
C I A
L R E
V I E
W
Balance sheet remains strong
6 Months Ended 30 Jun (HK$ mn)
Total Borrowings 34,355.8 16,648.0 106.4%
% in HK$ 70.4% 58.5%
% in RMB 29.6% 41.5%
Cash On Hand 15,471.8 9,543.4 62.1%
% in HK$ 37.9% 32.5%
% in RMB 62.1% 67.5%
Net Borrowings 18,884.0 7,104.6 165.8%
% in HK$ 97.0% 93.4%
% in RMB 3.0% 6.6%
Equity 40,984.1 37,810.0 8.4%
Net Debt to Equity Ratio 46.1% 19.7% N.A.
Book Value (HK$) 8.14 7.52 8.3%
1H 2010 1H 2009 YOY Change
Agenda
Business Strategy
Completion Schedule
Lank Bank
Financial Review
Highlights
New Land Bank Added in 2010 (as of August 22nd)
Hefei 2010-3-3 Res.+Comm. 882,000 100% 882,000 1,867 1,689
Zhengzhou 2010-2-5 MIXc 404,058 100% 404,058 586 1,452
Shanghai 2010-7-1 Comm. 335,000 50% 167,500 1,012 6,042
Tianjin 2010-7-24 Res. 708,630 100% 708,630 1,939 2,737
Yangzhou 2010-7-23 Res. 200,260 100% 200,260 554 4,700
Grand Total: 2,529,948 2,362,448 5,958
CityAcquisition
Date
Total GFAOvergroud
(sqm)
AV(RMB/sqm)
InterestAttributableGFA (sqm)
AttributableLand Cost(RMB mn)
Use
16
Land Bank: residential development
L A
N D
B A
N K
City Project Property TypeTotal GFA
Overgroud (sqm)
Beijing Eco Living High density 188,390
Oak Bay High density 389,142
Mengtougou Project Mid-low density 286,121
Daxing Plot 17 project Mixed density 227,323
Hongtong Tech.Building High density 37,344
Others 202,126
Shanghai The Bund Side High density 109,571
Oak Bay Mixed density 181,217
Jiading Nanxiang Project Mixed density 467,197
Songjiang Project Mid-low density 121,719
Shenzhen Park Lane High density 9,489
Chengdu Jade City Mixed density 286,048
Phoenix City High density 379,157
24 City High density 1,347,017
Oak Bay Mixed density 523,511
Qingyang Project High density 336,420
Wukuaishi Project High density 84,483
Donghu Project High density 71,716
Wuhan Phoenix City High density 7,998
MO+ Mixed density 41,231
Central Park Mixed density 312,987
Hefei French Annecy Mixed density 9,085
Park Lane Manor Mixed density 112,327
Ziyunfu Project High density 199,500
Zhengwu District Project High density 618,000
Hangzhou MIXc Residence Mixed density 6,156
MIXc Residence Serviced Apart. 91,622
Zhijiang Project High density 181,279
17L A
N D
B A
N K
Land bank sufficient to meet development needs in the next few years
Land Bank: residential development (continued)
City Project Property TypeTotal GFA
Overgroud (sqm)
Wuxi Taihu Int'l Commu. Mixed density 830,349
Ningbo Tuscany Lake Valley Mid-low density 80,577
Central Park High density 284,348
Dalian Maritime High density 1,231,961
Oriental Xanadu Mixed density 105,723
Changsha Phoenix City High density 992,243
Hanpu Project High density 460,296
Suzhou Suzhou Villa Mid-low density 59,205
Xiangchen Project Mixed density 337,543
Chongqing 24 City High density 1,554,551
Central Park High density 572,665
Shenyang Oak Bay Mixed density 890,476
City Corssing High density 150,083
The Arch High density 280,000
CR Plaza High density 247,040
Xiamen Oak Bay High density 307,826
Fuzhou Oak Bay Mixed density 603,108
Tianjin Xiangweidi Project Mixed density 151,541
Huaming Project Mixed density 708,630
Mianyang Central Park Mixed density 672,063
Anshan Education Bureau Project High density 360,200
Carrefour North Project High density 190,200
Nantong Nengda Commerical Zone Proj. Mixed density 415,200
Qingdao Submarine School Project High density 372,700
Zhengzhou The MIXc High density 224,000
Yangzhou Jiangwang Project Mid-low density 200,260
Total GFA: 19,110,964
Attributable GFA: 18,661,908
18
Land Bank: Up-and-running investment properties L A
N D
B A
N K
Substantial IP assets solidify future earnings while mitigating earnings risks
City Project Property Type
Total GFA
Overgroud(sqm)
City Project Property Type
Total GFA
Overgroud(sqm)
Beijing Oak Bay (west) retail 35,006 Wuxi Taihu Int'l Commu. 8,117
Oak Bay (east) retail 83,900 Taihu Int'l Commu. 41,000
Hongtong Tech.Building Project retail 10,000 Taihu Int'l Commu. hotel 74,000
Hongtong Tech.Building Project office 30,000 Taihu Int'l Commu. office 30,000
Hongtong Tech.Building Project hotel 35,000 Dalian Orintal Xanadu hotel 76,138
CR Plaza retail 23,645 Suzhou Xiangcheng Distric project supermarket+retail 25,000
CR Plaza office 44,520 Chongqing 24 City shopping mall 116,344
CR Plaza serviced apartment 20,498 24 City hotel 50,000
Shanghai The Bundside Ph.2 serviced apartment 22,859 24 City office 50,000
Wuzhong Project shopping mall 146,000 24 City retail 27,610
Wuzhong Project serviced apartment 161,500 Shengyang City Crossing shopping mall 156,396
Wuzhong Project office 27,500 City Crossing office 59,697
Chendou City Crossing Shopping mall 239,524 City Crossing hotel 57,040
City Crossing office 73,650 The Landmark shopping mall 140,000
24 City retail 196,826 The Landmark office 40,000
Donghu commercial retail 13,880 The Landmark hotel 18,000
Others retail 77,919 Mianyang Central park retail 50,794
Hefei Park lane retail 45,000 Central park 53,004
Park lane office 60,000 Anshan Education Bureau project supermarket+retail 36,000
Zhengwu District project shopping mall 200,000 Qindao City Crossing hotel 172,700
Zhengwu District project 64,000 City Crossing office 50,000
Hangzhou MIXc Residence retail 14,344 City Crossing 150,000
MIXc Residence office 75,888 Zhengzhou City Crossing shopping mall 140,000
City Crossing 36,018 City Crossing office 40,000
City Crossing 99,362
Grand Total: 3,498,679 Attributable GFA: 3,131,548
19LAN
D-B
AN
K
Remaining Land Bank held by CRH
Wuhan Apr. 2007 476,000 Residence 476,000 1,621 3,405
Wuhan Sep. 2007 433,650 Commercial 433,650 2,692 6,208
Wuxi Nov. 2007 260,000 Residence 260,000 1,278 4,915
Nanning Dec. 2007 569,000 Commercial 312,950 524 1,676
Changzhou Jun. 2009 1,345,903 Residence 1,345,903 1,811 1,345
Nanjing Sep. 2009 277,793 Residence 277,793 2,220 7,992
kunshan Nov.2009 285,987 Residence 285,987 2,160 7,545
Shenzhen Bay Dec. 2008 330,000 Re+Office 330,000 N.A. N.A.
Shenzhen Dachong - 1,760,000 Re+Comm.+Office 1,760,000 N.A. N.A.
Hainan Shimei Bay Jun. 2000 700,000 Residence 700,000 2,467 3,446
Grand Total: 6,438,333
Attributable GFA: 6,182,283
CityAcquisition
Date
Total GFAOvergroud
(sqm)Use
AV(RMB/sqm)
AttributableGFA (sqm)
AttributableLand Cost(RMB mn)
Agenda
Business Strategy
Completion Schedule
Land Bank
Financial Review
Highlights
21
Schedule for bookable areas for 2009- post 2012
C O
M P
L E
T I O
N S
C H
E D
U L
E
2010E 2011E 2012E
Beijing Phoenix City 3,458 -
Oak Bay 46,512 71,689 48,676
Eco Living 28,456 160,006 29,028
Mentougou Project - - 174,790
Daxing Project #17 - - 45,124
Hongtong Tech. Building - - -
Others - - -
Shanghai The Bund Side 156 102,099 -
Oak Bay 54,800 56,760 59,475
Jiading Project - - 179,400
Songjiang Project - - 71,549
Nantong Project - 19,226 96,131
Shenzhen Park Lane Manor 2,000 - -
Chengdu Jade City 168,000 50,528 -
Twenty-four City 78,406 300,100 159,186
Phoenix City 170,766 - 195,020
Oak Bay 60,304 - 202,804
Central Park - 115,180 117,447
Wukuaishi Project - - 84,483
Qingyang Project - - 112,140
Wuhan Phoenix City 4,470 - -
Central Park 122,668 117,644 106,383
Mo+ (Mingzhu Road) - 41,231 -
Oak Bay (Incubated) - 113,042 115,817
Hefei French Annecy 4,736 - -
Park Lane Manor 174,564 - -
Ziyun Manor - 199,500 -
Projected Schedule For Bookable Area (sqm)City Project
22
Schedule for bookable areas for 2009- post 2012(continued)
C O
M P
L E
T I O
N S
C H
E D
U L
E
2010E 2011E 2012EHangzhou MIXc Residence 105,285 - -
Zhijiang Project - - -
Wuxi Taihu Int'l Community 158,802 320,103 237,213
Industry School Proj. - - 55,459
Changzhou Int'l Comm. - 227,436 241,782
Nanjing Suojie Project - - -
Ningbo Tuscany Lake 46,460 - 33,640
Central Park - 125,623 -
Dalian Maritime 214,453 - 192,783
Oriental Xanadu 69,457 - 22,760
Changsha Phoenix City 95,574 223,481 167,893
Hanpu Project - - 152,400
Suzhou Suzhou Villa 17,175 23,652 13,655
Xiangcheng project - - 104,368
Kunshan Projcect - - 56,150
Chongqing Twenty-four City 158,085 204,385 155,682
Jiangbei Project - - 407,701
Shenyang China Resources Arch - 88,048 191,953
The Landmark - - 89,154
Oak Bay - 131,086 124,740
City Crossing - - 150,083
Anshan Education Bureau project - - 97,400
Anshan North Carryfour project - - 92,400
Fuzhou Oak Bay - 50,655 129,489
Xiamen Oak Bay - - 199,052
Qingdao Shandong Rd.#10 Project - - -
Tianjin Xinjiayuan Project - 14,934 -
Nanning Park Lane Manor - - -
Total bookable : 1,784,587 2,756,408 4,713,210
City Project Projected Schedule For Bookable Area (sqm)
23
Schedule for IP for 2009- post 2012
C O
M P
L E
T I O
N S
C H
E D
U L
E
Project Use Completion Data Operation Data Rentable Area
Rentable area in operation at the end-Jun 10 550,000
Beijing Landmark Square A# Office Dec-09 Apr-10 30,863
Hangzhou Mixc Shopping Mall Dec-09 Apr-10 94,541
Chengdu 24 City Retail Aug-10 1,440
Chongqing 24 City Retail Dec-09 Jun-10 438
Chengdu Jade City Retail Oct-10 20,590
Total rentable area to be added in 2010 147,872
Chengdu Oak Bay Ph.1 Retail Jan-11 6,375
Wuhan Central Park Retail Jan-11 6,941
Shengyang Mixc Shopping Mall Nov-10 Apr-11 114,584
Beijing Shangdi Commerc
Property(Oak Bay)(West)Retail Jun-11 25,086
Wuhan MO+ Retail Jun-11 4,163
Beijing Oak Bay (West) Shopping Mall Mar-11 Jul-11 25,467
Beijing Landmark Square FH# Office Jun-11 Jul-11 42,739
Beijing Landmark Square G# Serviced Apart. Jun-11 Sep-11 19,678
Beijing Landmark Square Others Jun-11 Dec-11 23,188
Shengyang City Crossing Ph.1 Office Jul-11 Oct-11 54,325
Total rentable area to be added in 2011 309,230
Shanghai Bundside #EF Serviced Apart. Oct-11 Jan-12 17,391
Chongqing 24 City Ph.1B Retail Sep-11 Jan-12 5,557
Chengdou Mixc Shopping Mall Jan-12 Mar-12 82,963
Chengdou Mixc Office Jan-12 Mar-12 73,650
Nanning Mixc Shopping Mall Sep-12 Oct-12 111,234
Nanning Mixc Office Jul-12 Oct-12 107,940
Total rentable area to be added in 2012 398,735
Agenda
Business Strategy
Completion Schedule
Land Bank
Financial Review
Highlights
Hefei
25
Major corporate developments in 2010:
n The MIXcⅠ& Ⅱ(万象城一期、二期)
n China Resources Building(华润大厦)
n Grand Hyatt
(君悦酒店)
China Resources
Time Square(华润
时代广场)
Shanghai Chengdu
100%
Construction operation
Decoration operation
CRH
100%
100% 60%
China Resources (Beijing) Building
(北京华润大厦)
Beijing
Hangzhou MIXc
(杭州万象城)
100%
Dalian
96% 100%/55%100% 100% 100%
The Company
63%
Furniture operation
Beijing China
Resources Hotel Site
(北京华润店饭)
100%
100%
100%
100%
100%
Commercial in Shenyang,
Chengdu, Zhengzhou, Qingdao …
(商业在沈阳
、成都、郑州、青岛…)
Shenzhen Hefei
Xiamen
Nantong
100%
Anshan
60%100% 100% 100%
Chongqing
Ningbo
Changsha Wuhan
100%
Tianjin Suzhou
98% 100%100% 100% 60%
Shenyang Wuxi
Qingdao
Mianyang
100%
YangzhouFuzhou
100% 100%98% 100%
HangzhouZhengzhou
100%
※We have accessed into 23 cities’ real estate markets.
ResidentialDevelopment
Value-added Services
• Vertical integration to better cater for rising demand for one-stop/value-added solution
• Improved cost/quality control
• Enhance EPS and improve corporate governanceü The pilot projects of Storage
Space Total Solution have been successful, now being popularized nationwide.
Investment Property Holding
• Recurrent & stable earning but slow growth
• Effectiveness to withstand risks
• Potential long term gains in asset value
+ +
Business model refined to strengthen CRL’s“differentiation” competitive strength
• High earning growth• But earning subject to high
volatility and regulatory changes
uTo balance long-term and short-term return
uTo balance the cash flow
uTo reduce the development risk
uTo guarantee the growth and stability of long-term gains
27