cr land annual result 2015

8/19/2019 CR Land Annual Result 2015

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AGENDA

Highlights

Financial Review

Business Review

Market and Strategy


3/28

Highlights – FY 2015

B U S I N E S S

R E V I E W

2


4/28

AGENDA

Highlights

Financial Review

Business Review

Market and Strategy


5/28

Income Statement

F I N A N C I A L

R E V I E W

4

Year Ended 31 Dec

(HK$ mn)

2015 2014

(Restated)Change

Turnover 103,393 89,705 15.3%

Development 93,536 81,759 14.4%

Investment Property 6,655 5,482 21.4%

Gross Profit 32,298 27,353 18.1%

Development 28,179 23,850 18.1%

Investment Property 3,967 3,398 16.7%

Gross Profit Margin 31.2% 30.5%

+0.7pt Development 30.1% 29.2% +0.9pt

Investment Property 59.6% 62.0% -2.4pt

IP (excluding hotel) 66.9% 71.5% -4.6pt

Attributable Net Profit 17,527 15,141 15.8%

Core Profit 14,206 11,915 19.2%

Core Net Profit Margin 13.7% 13.3% +0.4pt

Net Profit Margin 17.0% 16.9% +0.1pt

EPS - Basic (HK cents) 259.2 231.8 11.8%

EPS - Fully Diluted (HK cents) 259.1 231.7 11.8%

DPS (HK cents) 57.4 49.5 16.0%


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F I N A N C I A L

R E V I E W

Balance Sheet Highlights

5

Cash and cash equivalents 45,875 44,857 2.3%Total debt 76,150 90,231 -15.6%

Net debt 30,275 45,374 -33.3%

Total equity 131,824 117,123 12.6%

Total capitalization 207,974 207,354 0.3%

Total debt/ capitalization 36.6% 43.5% -6.9pt

Net debt/ equity 23.0% 38.7% -15.7pt

Change(HK$ mn)31-Dec-2014

(Restated)31-Dec-15


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Debt Profile (as at 31 Dec 2015)

F I N A N C I A L

R E V I E W

6

Avg. Tenor: 4.24 yrs

(vs 4.01 yrs a year ago)


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31-Dec-15 31-Dec-14

HK$ mn as % HK$ mn as %

Total Borrowings 76,150 100% 89,601 100%RMB Borrowings 40,647 53% 34,480 38%

Forreign Currency Borrowings 35,503 47% 55,121 62%

USD 21,553 28% 22,113 25%

HKD 13,950 19% 33,008 37%

Forreign Currency Cash Balance 1,257 100% 3,614 100%

USD 180 14% 974 27%HKD 1,077 86% 2,640 73%

Net Foreign Currency Borrowings 34,246 100% 51,507 100%

USD 21,373 62% 21,139 41%

HKD 12,873 38% 30,368 59%

F I N A N C I A L

R E V I E W

Foreign Exchange Risk Analysis

8(1) Based on financial data as of 31st Dec 2015.

(2) Based on projected cash outflows (excluding debt repayment) in FY2016.(3) Based on reserve attributable to owners of the company.

If CNY:USD fixing rate depreciates by 5% to 6.8183 from 6.4936 (@31 Dec 15)

Estimated Impact HK$ mn(1)

CF Cash inflow/(outflow)(2) (280)

P&L Exchange gain/(loss) 960

BS Change in translation reserve(3) +/(-) (7,860)

Net Gearing (Net Debt/Equity) +1.6ppt


10/28

AGENDA

Highlights

Financial Review

Business Review

Market and Strategy


11/28

10

Development Revenue in 2015

B U S I N E S S

R E V I E W

5,652 5,38412,579

24,98532,82731,301

38,522

64,818

81,759

93,536

2011 2012 2013 2014 2015

Development Revenue RMB mn)

1H FY


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11

Contracted Sales in 2015

B U S I N E S S

R E V I E W

13,220

23,314

33,787

25,564

37,00035,958

52,193

66,306 69,210

85,150

2011 2012 2013 2014 2015

Contracted Sales RMB mn)

1H FY


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Premium IP and Fast Growing Recurrent Income

B U S I N E S S

R E V I E W

12

1.6

1.4

2.0

1.3 1.3

2011 2012 2013 2014 2015

Rental Income/ Gross Interest Coverage


14/28

13

IP Performance in 2015 – Shopping Mall

B U S I N E S S

R E V I E W

2015 2014 %YoY 2015 2014 pt YoY

Shenzhen Mixc 1,050,494 990,698 6.0% 99.4% 99.7% -0.3

Hangzhou Mixc 488,284 486,184 0.4% 97.4% 98.5% -1.1

Shenyang Mixc 420,122 399,436 5.2% 95.1% 96.2% -1.1

Chengdu Mixc 284,011 258,170 10.0% 96.7% 98.4% -1.7

Nanning Mixc 487,060 454,216 7.2% 98.9% 99.1% -0.2

Zhengzhou Mixc 137,319 103,017 33.3% 92.9% 94.7% -1.8

Chongqing Mixc 195,230 41,249 373.3% 91.4% 87.7% 3.7

Wuxi Mixc 124,250 19,730 529.8% 77.3% 75.3% 2.0

Qingdao Mixc 224,423 N/A N/A 83.0% N/A N/A

Hefei Mixc 60,124 N/A N/A 89.8% N/A N/A

Ganzhou Mixc 50,257 N/A N/A 95.0% N/A N/A

Shanghai Times Square Commercial 115,784 134,983 -14.2% 88.0% 94.4% -6.4

Beijing Phoenix Plaza Commercial 82,637 80,176 3.1% 97.2% 97.1% 0.0

Beijing Qinghe Hi5 262,790 228,860 14.8% 100.0% 99.9% 0.1

Hefei Shushan Hi5 30,548 28,132 8.6% 96.1% 95.1% 1.0

Zhejiang Yuyao Hi5 60,249 26,255 129.5% 90.2% 90.8% -0.6

Shanghai Nanxiang Hi5 39,730 6,940 472.5% 98.1% 100.0% -1.9

Shandong Zibo Mixc One 80,182 N/A N/A 84.5% N/A N/A

Shenyang Tiexi Mixc One 28,033 N/A N/A 86.5% N/A N/A

Changsha Xingsha Mixc One 11,487 N/A N/A 100.0% N/A N/A

Total / Average 4,233,014 3,258,046 29.9% 92.1% 94.4% -2.3

Investment PropertiesRental Income (HK$’000) Average Occupancy Rate (%)


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14

IP Performance in 2015 – Office, Hotel and Others

B U S I N E S S

R E V I E W

*Average occupancy does not include Nanning and Hangzhou CR Building.

2015 2014 %YoY 2015 2014 pt YoY

Beijing CR Building 228,340 224,217 1.8% 88.7% 90.5% -1.8

Shenzhen CR Building 163,169 160,162 1.9% 98.9% 99.8% -0.9

Shenyang CR Building 107,930 120,763 -10.6% 90.4% 95.8% -5.4

Chengdu CR Building 75,704 74,010 2.3% 73.0% 69.7% 3.3

Nanning CR Building 25,701 21,083 21.9% 80.1% 96.7% -16.6

Hangzhou CR Building 4,713 N/A N/A 15.0% N/A N/A

Shanghai Times Square Office 121,460 122,679 -1.0% 96.7% 99.2% -2.5

Beijing Phoenix Plaza Office 351,595 335,491 4.8% 92.2% 95.9% -3.7

Beijing Hi5 Office 24,188 25,126 -3.7% 100.0% 100.0% 0

Others 349,616 341,463 2.4% N/A N/A N/A

Shenzhen Grand Hyatt Hotel 502,375 485,764 3.4% 74.4% 69.8% 4.6

Shimei Bay Le Meridien Hotel 66,112 81,534 -18.9% 35.9% 37.2% -1.3

Shenyang Grand Hyatt Hotel 230,719 203,232 13.5% 68.5% 66.7% 1.8

Dalian Grand Hyatt Hotel 169,928 28,908 487.8% 42.1% 28.1% 14

Total / Average for Office* 1,102,800 1,083,531 1.8% 88.9% 90.6% -1.7

Total / Average for Hotel 969,134 799,438 21.2% 57.5% 52.3% 5.2

Investment PropertiesRental Income (HK$’000) Average Occupancy Rate (%)


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Profiles of New Malls Opened in 2014

Representative Tenants

B U S I N E S S

R E V I E W

15

Key Data in 2015/2014

1 2

3 4

5 6

1ZhengzhouMixc

19 4 2 14

Versace, Tod's, Monc ler, GIVENC HY, Dunhill, Xinyuwatch gallery, Ole', World Ice Arena, Apple Store

2Hefei

Shushan Hi5 1 5 2 14

Suguo Supermarket , WOMEI CINEPLEX, INLOVE

KTV

3Zhejiang

Yuyao H i5 28 6 2 14

Mjstyle, UNIQLE, Chow Tai Fook, Vanguard, CGV,INLOVE KTV, Kingsport, Cartoony World

4ChongqingMixc

19 9 2 14

OMEGA, Moncler, Coach, TOD'S , Dunhill, JIMMYCHOO, Palace C inema, World Ice Arena, Ole',

PARKSON

5Shanghai

Nanxiang Hi5 25 1 2 14 BLT, OSGH Cinemas

6 Wuxi Mixc 2 12 2 14OSGH Cinemas, Ole', Adventure Zone, SkylandFood Court, Kidswant, X'Street, Shoe Space


17/28

Profiles of New Malls Opened in 2015

Representative Tenants

B U S I N E S S

R E V I E W

16

Key Data in 2015

1 2

3 4

5 6

1 Qingdao Mixc 30 04 2015

Bally, Hugo Boss, Dunhill, Omega, Ole', World Ice

Arena, CGV, Sega Joypolis, Apple, Family Box

2 ShandongZibo Mixc One

27 05 2015 V+ supermarket, Myrules World, WOMEICINEPLEX, World Ice Arena

3Ganzhou

Mixc 19 09 2015

V+ supermarket, Myrules World, CGV, World Ice

Arena

4 Hefei Mixc 25 09 2015World Ice Arena, Emperor Motion Pictures,

SKYLAND, Meland, Ole'

5

Shenyang

Tiexi Mixc

One

30 09 2015 BLT, Meland, Lumiere Cinema

6

Changsha

Xingsha Mixc

One

28 11 2015

VANGUARD, CGV


18/28

Launch Schedule for New Malls in 2016-2018

B U S I N E S S

R E V I E W

17*Opening schedules will be adjusted based on prevailing market conditions.

27 malls

6.1mn sqm22 malls

4.7mn sqm

38* malls

8.8mn sqm

20 malls

4.3mn sqm

New Malls in 2016:1 Wenzhou Mixc

2 Shandong Rizhao Mixc One

New Malls in 2017:

1 Xian Sanqiao Mixc One

2 Shanghai Mixc

3 Beijing Miyun Mixc One

4 Shenzhen Mixc World

5 Nantong Mixc

New Malls in 2018 and beyond:

1 Taiyuan Mixc

2 Xiamen Mixc

3 Jiangsu Kunshan Mixc One

4 Jiangsu Taizhou Mixc

5 Hangzhou Xiaoshan Mixc One

6 Shijiazhuang Mixc

7 Jinan Mixc

8 Suzhou Wujiang Mixc One

9 Dalian Mixc One

10 Shenhen Qianhai City Crossing

11 Guangxi Liuzhou Mixc One


19/28

Land Bank (as of 31 Dec 2015)

Development Land Bank:35.75 mn sqm

IP Land Bank:5.51 mn sqm

B U S I N E S S

R E V I E W

Total Land Bank:41.26 mn sqm

18

53 cities 39 cities


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19 A P P E N D I X

Land Bank Held by CRH – Shenzhen Bay Project

Project Overview GFA Breakdown

Launch Date of Phase 1 2015/12/26

2016 Launching Schedule 3Q, 42,000㎡

Earliest Booking Schedule 1H 2018

R:170,000

53%

C:60,00019%

H:40,00012%

SA :50,00016%

Residential (R) Commercial (C)

Hotel (H) Serviced Apart. (SA)


21/28

AGENDA

Highlights

Financial Review

Business Review

Market and Strategy


22/28

Property Market Outlook in 2016 - Residential

B U S I N E S S

R E V I E W

21

Destocking remains as the key theme while overall ASP likely to stay flat or rise moderately.

Divergence among cities to intensify: ASP in tier-1 and certain tier-2 cities may still have further

upside due to decline on inventory level and rise in land price.

-29% -26%

-51%

-23% -27%-23% -21% -22%

-16% -15%-11%

-15%-10%

-16%

-3% -2% -2% -1% -4% -3% -3%

6% 6% 6%

-60%

-50%

-40%

-30%

-20%

-10%

0%

10%

0

5

10

15

20

25

30mn sqm

Inventory at Dec 2015 YoY %

Decrease>20% Decrease 10%~20% Decrease 0~10% Increase

0.930.97 0.98

1.16

1.051.12

-15.0%

-10.0%

-5.0%

0.0%

5.0%

10.0%

15.0%

20.0%

0

0.2

0.4

0.6

0.8

1

1.2

1.4

2010 2011 2012 2013 2014 2015

bn sqmResidential GFA sold YoY

4,7254,993

5,4305,850 5,933

6,472

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

9.0%

10.0%

-

1,000

2,000

3,000

4,000

5,000

6,000

7,000

2010 2011 2012 2013 2014 2015

Rmb/sqm ASP YoY

Source: NBS


23/28

Property Market Outlook in 2016 - Residential

B U S I N E S S

R E V I E W

22

Sector supportive policies to continue: moderate monetary environment, the acceleration in new-

round urbanization, further Hukou reform, inventory clearance measures as well as two-child

policy.

75

95

115

135

155

175

195

215

2015-02 2015-03 2015-04 2015-05 2015-06 2015-07 2015-08 2015-09 2015-10 2015-11 2015-12

mn sqm

GFA Sold（mn sqm）

2/4RRR cut

2/28Interest rate cut

3/27Land department

to adjust landsupply structure

3/30Business tax

waived after 2years holding

perios

4/19RRR cut

5/11Interest rate

cut

Mar~JunFujian, Liaoning

and otherprovinces to allow

developers to

change theproduct mix of theexisting projects

6/28Interest rate,

RRR cut

8/25Interest rate,

RRR cut

8/29Purchase

restrictionsfor foreign

buyersrelaxed

8/302nd home down payment

for HPF reduced to 20%

9/30Down

payment forfirst homesreduced to

25%

10/23/ Interest rate,

RRR cut

11/10President Xi

emphasized onreducing property

inventorypromoting a

stable housingmarket

11/11Premier Lirestated to

furtherreformhukoupolicies

12/21Central EconomicWork Conference

mentionedtransforming migrant

workers into newurbanities to help

destocking

Demand Supply

SupplyDemand

Demand

Demand

Demand

Demand

Demand

Demand

Demand

Demand

Demand

Demand

Demand

Demand

Source：wind


24/28

Property Market Outlook in 2016 – Investment Property

23

Shopping malls, especially mid-low end ones, likely to endure greater pressure when

seeking for growth due to oversupply and e-Commerce.

Stable GDP and disposable income growth, coupled with continuous urbanization, arecreating a growing consumer class with increasing spending power & demand for

better shopping experiences.

Declining Gift Market

Rational Spending

Diversified Channels

Urbanization:

Supportive Policies:

Growing Retail Market:

Overall China retail market is

still growing at double digits

More favorable policiesexpected to stimulate localconsumptions

Continuous urbanization

lays down a solid

foundation for growing

retail sales

Rising competition from e-Commerce and overseasconsumptions etc

Luxury items no longer a puresymbol for social status asconsumers become moresophisticated

Declining gift market continuesto impact the luxury as well asthe high-end dining market

Opportunities:Growing

Middle Class

Challenges:Consumption

Structural Change


25/28

Company Strategy

B U S I N E S S

R E V I E W

24

3 Main

Strategies

QualityInvestments

Change &Innovation

ExcellentOperations

Capital Engine

The Group will continue to enhance its competitive advantages to maintain earnings

growth through seeking quality investments and excellent operations, and toproactively explore business innovations to achieve long-term sustainabledevelopment.

Investment Strategy: Improve timing, city and product mixselection as well as diversify access to land bank

Professional Management: Enhancecustomer satisfaction, shareholderreturn and organization structure

Change: Construct “shopping malls +

internet” eco system and explore

overseas investment and businessinnovations

Gro p Str ct re


26/28

Group Structure

25 A P P E N D I X

61.27%

9

Di ti i h d INED T


27/28

Distinguished INED Team

B a c k g r o u n d I n f o

r m a t i o n

Current Positions

Chairman of China Vanke

Independent Non-

Executive Director of

SOHU.com and Modern

Media Holdings

Mr. Shi Wang Mr. Ho Hin Ngai, Bosco

Current Positions

Authorized Person

(Architect) Hong Kong,

Member of Hong KongInstitute of Architects and

of Royal Institute of

British Architects

Founder of Ho & Partners Architects Engineers and

Development Consultants

Mr. Andrew Y. Yan

Current Positions

Founding Managing

Partner of SAIF Partners

Non-Executive Director of

Digital China Holdings,

Lai Sun Group, China

Huiyuan Juice Group, and

Guodian Technology &Environment Group

Independent Non-

executive Director of

Cogobuy Group, CPMC

Holdings Limited and

China Petroleum &

Chemical Corporation

Mr. Wan Kam To, Peter

Current Positions

Independent Director of

Mindray Medical and the

Chairman of the AuditCommittee

Independent Non-


Dalian Port (PDA)Company, Fairwood

Holdings, Harbin Bank,

Huaneng Renewables,

KFM Kingdom Holdings,

S. Culture International

Holdings Limited, Target

Insurance (Holdings)

Limited, Shanghai

Pharmaceuticals HoldingsCo., Ltd., and the

Chairman/member of

their Audit Committees

Prior Position

Partner of

Pricewaterhouse

Coopers

Mr. Weihua Ma

Current Positions

Chairman of Wing Lung

Bank

Independent Non-


China Petroleum &

Chemical Corporation,

China Eastern AirlinesCorporation Limited, and

Winox Holdings Limited

Prior Positions

President and Chief

Executive Officer,


China Merchants Bank

Chairman of CIGNA and

CMC Life Insurance

Company Ltd. and ChinaMerchants Fund

A

P

P

E

N D I

X

26

Di l i


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Disclaimer

All information and data herein are intended for reference and general information

purposes only.

All opinions included constitute China Resources Land Limited (“CR Land”) or itssubsidiaries, associated or affiliated companies’ judgment as of the date hereof and

are subject to change without notice.

CR Land cannot and does not represent, warrant or guarantee the accuracy,

validity, timeliness, completeness, reliability or otherwise of any information

contained in the materials herein.

CR Land, its subsidiaries and affiliates hereby disclaim (i) all express, implied, and

statutory warranties of any kind to user and/or any third party including warranties

as to accuracy, timeliness, completeness, or fitness for any particular purpose; and

(ii) any liability whatsoever for any loss howsoever arising from or in reliance upon

the whole or any part of the information and data contained herein.

27

cr land annual result 2015

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