CentraLand Limited FY2010 Results Presentation
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CentraLand Limited FY2010 Results Presentation

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CentraLand Limited FY2010 Results Presentation

CentraLand Limited FY2010 Results Presentation

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CentraLand Limited FY2010 Results Presentation CentraLand Limited FY2010 Results Presentation Presentation Transcript

  • A Leading Zhengzhou-Based Property Developer and Property Manager … CENTRALAND LIMITED … Focused on Wholesale MallsCorporate Presentation 25 February 2011
  • CENTRALAND LIMITED Contents  Company Overview  Financial Review  Corporate Updates  Appendix: Background on Wholesale Trading Hubs 2
  • CENTRALAND LIMITED Company Overview 3
  • CENTRALAND LIMITED A Leading Zhengzhou-Based Property Developer and Property Manager  Business acquired by present management in November 2003  Focused 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 Listing SGX Mainboard Issued Share Capital 1,845,000,000 Free Float 13.3% Share Price (As at Jan 27, 2011) S$0.360 Market Capitalisation S$664.20 mil (As at Jan 27, 2011) Net Asset Value Per Share 16.05 Singapore cents (Dec 31, 2010) Ember Vision (Mr Li Wei & Mr Wang Peng) – 48.6% Major Shareholders Marble Focus (Mr Yan Tao) – 20.8% CIM X Limited – 8.7% 4
  • CENTRALAND LIMITED Our Portfolio (Geographical location)J-Expo 1 & 2 N Small consumer goods wholesale mall Guoling ShanshuiTianrong Project Jiancai Gang Fashion apparel wholesale mall Nongye RoadJiancaigang Zhengdong New CBD Wholesale mall for automobile parts and building materials J-Expo I & II Property management services TianrongNongye Road Project Mixed use development: retail and residential Border of old city centre and new CBDGuoling 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 5
  • CENTRALAND LIMITED Our Portfolio Land Bank/ Site Area Saleable/Leasable Remarks (sq m) Estimated GFA (sq m) 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 31 Dec 2010) Property under development Estimated Construction Schedule Residential property Phase III of Guoling Shanshui (果岭山水) 174,412 132,763 2Q 2009 – 4Q 2012 Remaining land bank at Guoling Shanshui 1.5 mil TBA -- New projects Commercial properties J-Expo 2 (金智●万博商城 2) 9,000 93,000 4Q 2010 – 1Q 2012 Tianrong Project 2012 – 2016 - Tianrong Fashion City (天荣时装城) 24,026 553,0001 -Old Residential Area, adjacent to Tianrong Fashion 16,792 City (旧住宅区) Mixed residential & retail property Nongye Road Project (农业路项目) 16,123 100,092 4Q 2010 – 3Q 2012 Property Management Tenure of 20 years: Jiancai Gang (建材港) 758,574 354,568 11 Nov 2009 – 30 Jun 20281 Based on amalgamated site area of Tianrong Fashion City and Old Residential Area 6
  • CENTRALAND LIMITED Financial Review 7
  • CENTRALAND LIMITED Income Statement RMB ’mil FY2010 FY2009 Change Revenue 309.2 155.0 + 99.5% Gross Profit 155.1 94.0 + 65.0% Other Income 2.6 5.2 - 49.1% Profit Before Tax 27.5 28.8 - 4.7% Profit for the Year 17.4 12.2 + 43.4% Selling Expenses 15.5 13.2 + 17.6% Admin Expenses 104.8 51.6 + 102.9% Effective Tax Rate 36.6% 57.9% - 21.3 ppt Gross Profit Margin 50.2% 60.7% - 10.5 ppt Profit Before Tax Margin 8.9% 18.6% - 9.7 ppt Profit for the Year Margin 5.6% 7.8% - 2.2 pptFY: Financial year ended 31 December 8
  • CENTRALAND LIMITED Revenue - Growing recurring income stream FY2010 vs FY2009RMB’mil Revenue growth due to:350 309.2  Sales of properties recognised300 17.8 in FY2010  404 units in Phase III of Guoling250 82.5 Shanshui  18 retail and 15 office units in J-200 155.0 Expo 1150 6.7  RMB82.5 mil contributed from 41.9 208.9 rental income and RMB17.8 mil100 from property management fee50 106.3 Rental income increase due to:  Sub-leasing of space within 0 Jiancaigang FY2009 FY2010 Sale of Properties Rental Income Property Management Fees Property management fee increased from RMB6.7 million in FY2009 to RMB17.8 million in FY2010FY: Financial year ended 31 December 9
  • CENTRALAND LIMITED Gross Profit, PBT & Profit for the Year RMB’mil Gross Profit160 155.1  GP increased 65% to RMB155.1 mil in140 FY2010120  GP margin decreased 10.5 ppt, due to higher margins commanded by100 94.0 commercial properties in FY2009 80 PBT 60  Decreased 4.5% to RMB27.5 mil in 40 28.8 27.5 FY2010 12.2 17.3 20 0 Profit for the Year FY2009 FY2010  Up 43% to RMB17.3 mil in FY2010 Gross Profit PBT Profit for the Year  Effective tax rate of 36.6% in FY2010 FY: Financial year ended 31 December 10
  • CENTRALAND LIMITED Balance Sheet Highlights RMB’ mil As at 31 Dec 2010 As at 31 Dec 2009 Cash & Bank Balances 190.4 938.9 Net Assets 1,439.2 1,383.2 - Properties Held for Development 965.0 783.6 - Properties Held Under Development 501.2 138.9 - Properties Held for Sale 112.3 70.7 - Deposits Paid 300.0 120.0 Receipts in Advance (49.5) (46.3) Interest-bearing Bank & Other Borrowings (813.0) (617.0) Net Gearing Ratio (%) 94.6% 45.6% NAV per Share (RMB cents) * 82.73 74.97* Based on post-Invitation share capital of 1,845,000,000 Shares 11
  • CENTRALAND LIMITED Corporate Updates 12
  • CENTRALAND LIMITED Expiry of Framework Agreement with Warburg Pincus Framework Agreement with Warburg Pincus on 30 September 2010  Warburg Pincus to invest RMB650 million  Explore investment opportunities within PRC’s commercial real estate sector  Potentially participate in Warburg Pincus’ existing wholesale assets portfolio in China (subject to conditions)  Option for Warburg Pincus to invest up to an additional RMB650 million (subject to conditions)  Framework Agreement between CentraLand and Warburg Pincus has since expired as not all signing conditions pertaining to the fulfilment of the agreement have been satisfied by 31 December 2010.  Continues to explore suitable opportunities with Warburg Pincus for possible future collaborations/joint venture. 13
  • CENTRALAND LIMITED Our First Commercial Project: J-Expo 1 (金智•万博商城 1) 14
  • CENTRALAND LIMITED Status of J-Expo 1 (金智•万博商城 1) Total % of GFA Average Completion No of Units No of Units Levels Saleable Units Sold & ASP/unit Date Sold* Delivered* GFA (sq m) Delivered (RMB/sqm) 1,792 retail B1, L1-L3 2Q 2008 36,282 1,691 1,679 17,132 units 768* retail L4-L5 2Q 2008 18,297 482 451 11,777 units 192 office L6-L12 2Q 2008 11,311 162 147 6,259 units 2,560 retail 78.6% Total 65,890 units/192 14,226 office units (51,772 sq m)As at 31 December 2010*302 units of the unsold units on level 4 and 5 were rented out as at 30 December 2010. 21.4% GFA for lease 78.6% GFA sold 15
  • CENTRALAND LIMITED J-Expo 2 (金智•万博商城 2 ) A Small Consumer Goods Wholesale Mall Strategic location Within walking distance to Zhengzhou Railway J-Expo 2 station and Zhengzhou Long Distance Central Bus Station Zhengzhou Long J-Expo I Located in Erqi District (二七区) within the main Distance Bus Station wholesale centre of Zhengzhou City Zhengzhou In response to strong market demand Railway Station Adjacent to J-Expo 1 – well-received Soft launch : 287.4% rate of registration of interest  7,184 downpayments to ballot for 2,500 retail units Tianrong Project Total site area of 9,000 sq m Acquired for RMB150 million Retail Trading Hub (Erqi District) Planned total leasable GFA of 93,000 sq m Commodities Trading Hub (Railway District) Retail space: 70,000 sq m Fashion Trading Hub (Guancheng District) Office space: 15,000 sq m Others: 8,000 sq m 16
  • CENTRALAND LIMITED J-Expo 2 (金智•万博商城 2 )Startedconstruction:4Q 2010 J-Expo 2Expectedcompletion:1Q 2012 J-Expo 1 17
  • CENTRALAND LIMITED 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 Zhengzhou Long Distance Total site area of 40,818 sq m Bus Station Comprises Tianrong Fashion City and Old Residential Area Zhengzhou Railway Station 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 Old Tianrong Residential Landmark project in Henan Province Fashion Area City To be developed in stages over 5 years To be fully integrated with supporting infrastructure 18
  • CENTRALAND LIMITED Tianrong Project – Acquisition StatusSigned S&P Tianrong Fashion City: Old Residential Total intended Area: acquisitionagreement to 24,026 sq m 16,792 sq m site:acquire full (4 land parcels) 40,818 sq mownership of • Acquired 80% • Acquired 80% • Adjacent site to • To developTianrong stake in 2 land stake in 2 land Tianrong into anFashion City parcels for parcels for Fashion City integrated RMB440 million RMB360 mil commercial • Land cost development subject to over a 5-year government period auction • Signed S&P agreement to acquire the balance 20% interest for RMB300 mil - To be funded by proposed issue of new shares - Subject to conditions 19
  • CENTRALAND LIMITED Jiancai Gang (建材港) Wholesale Mall for automobile parts and building materialsCurrentlyholds 80% of Zhengzhou Tiandi Renhe acquired the master tenancy ofZhengzhou Jiancai Gang on 30 Nov 2009Tiandi Renhe  Annual rent of RMB24 million  Duration of 20 years (Expiry on 30 June 2028)Two stable  Contributes approx RMB80 million per year in rental income andincome management fees to the Groupstreams: Signed S&P agreement to acquire full ownership and control of Jiancai Gang on 30 Sep 2010Sub-leasing  To acquire land use rights and buildings for RMB600 millionProperty  To be funded by cash and issue of new sharesmanagement  Subject to conditions  To derive greater revenue or returns on Jiancai Gang Strategic Location:  Within North Ring Trading Hub: one of Zhengzhou City’s 6 largest trading hubs  Approx 1,300 tenants (as at 30 September 2010)  Annual turnover of approx RMB1 billion  Aggregate gross floor area: 354,568 sq m  Site area: 758,574 sq 20
  • CENTRALAND LIMITED Jiancai Gang (建材港) 21
  • CENTRALAND LIMITED Jiancai Gang (Geographical location) Jiancai Gang North Ring Business District 22
  • CENTRALAND LIMITED Nongye Road Project (农业路项目)Residential cum retail development Acquired Nongye Road site for RMB70 mil Nongye Road Project 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 23
  • CENTRALAND LIMITED Nongye Road Project (农业路项目) Started construction: 4Q 2010 Expected completion: 3Q 2012 Artist Impression 24
  • CENTRALAND LIMITED Guoling Shanshui (果岭山水) Phase II Huguang Shanse 湖光山色 Phase I Phase I Mufu 睦府 Yongfu 雍府 Phase II Phase III Xinyu Lanwan 心屿澜湾 Phase I & II Phase III – Total GFA of 132,000 sq m (Completed and fully sold)  Stage 1: GFA of approx 43,000 sq m; construction underway Phase I: GFA of approx 57,954 sq m  Stage 2 GFA of approx 89,000 sq m; construction Phase II: GFA of approx 102,874 sq m underway Remaining site area of 1.5 mil sq m held for future development 25
  • CENTRALAND LIMITED Guoling Shanshui (果岭山水) Phase III & Beyond Phase III development on track Land Bank (Site Area)  Site area of 174,412 sq m Phase III (Development on track) (174,412 sq m)  Stage 1 construction underway Phase I & II (Completed)  Pre-sales launched in late October (276,735 sq m) 9%  Saleable GFA of 43,763 sq m 15%  Stage 2 construction started in 4Q2010  Saleable GFA of 89,000 sq m 76% Remaining land bank Remaining land bank (1.5m sq m)  Total site area of 1.5 mil sq m Targeted Total No of Units Average Phase III Type of unit Completion Saleable Units Sold* % GFA Sold ASP/unit Date GFA (sq m) (RMB/sqm) Low-rise 75.2% Stage 1 apartments 43,763 540 404 6,000 (32,900 sq m) 4Q2012 Townhouses/ Under Stage 2 Duplexes/ 89,000 planning - - - Commercial units*As at 31 December 2010 26
  • CENTRALAND LIMITED Guoling Shanshui (果岭山水) Phase III & Beyond 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 27
  • CENTRALAND LIMITED Guoling Shanshui (果岭山水) Phase III Artist Impressions 28
  • CENTRALAND LIMITED Guoling Shanshui (果岭山水) Phase III Show unit interiors 29
  • CENTRALAND LIMITED Project Pipeline 2009 2010 2011 2012 2013 2014 2015 Property under development Guoling Shanshui Phase III New projects J-Expo 2 Nongye Road Project Tianrong Project Jiancai Gang 30
  • CENTRALAND LIMITED Project Pipeline – Total GFA Uses Saleable/Leasable Estimated GFA (sq m) Residential 216,685 - Guoling Shanshui Phase III 132,000 - Nongye Road Project 84,685 Retail 513,407 - J-Expo 2 70,000 - Tianrong Project 428,000 - Nongye Road Project 15,407 Office & Commercial 84,000 - J-Expo 2 15,000 - Tianrong Project 69,000 Property Management 354,568 - Jiancai Gang 354,568 Total : 1,168,660 sq m 31
  • CENTRALAND LIMITEDCentraLand LimitedJohnson ChooVice PresidentInvestor Relations and Corporate CommunicationsMobile: +65 94506527 / +86 15838381086Email: johnsonchoo@centralandltd.com
  • CENTRALAND LIMITED APPENDIX Background: Wholesale Trading Hubs in Zhengzhou City, Henan Province 33
  • CENTRALAND LIMITED About Henan Province 34
  • CENTRALAND LIMITED Connectivity in ZhengzhouSource: http://www.china-mor.gov.cn/ Source: Google maps  Key national transportation hub for the country’s rail, highway and air transportation  Intersection of two major trunk railways : North-South railroad line (Beijing-Guangzhou Railway) and East-West railroad line (Lanzhou-Lianyungang Railway)  Zhengzhou Railway Station is China’s largest odd cargo volume transit-shipment station and has the 2nd highest volume of passenger transit in the PRC  Located on the Beijing-Hong Kong-Macau Expressway which runs through China and the Lianyungang-Horgos Expressway, the longest West-East highway in China (1)  Henan’s expressway mileage : 4,841 km, highest amongst all Chinese provinces (1)  A total of 25 key trunk-line highways form a well-developed highway network linking Zhengzhou with other parts of PRC (2)Sources:(1) Zhengzhou Zhengdong New District Investment Environment Study 2009 (KPMG Shanghai)(2) www.zynews.com 35
  • CENTRALAND LIMITED Zhengzhou : Links East to the West Zhengzhou Wenzhou Yiwu Guangzhou  Zhengzhou : Capital city of Henan Province  Zhengzhou plays a crucial role in developing the Central and Western provinces  Relocation of coastal trading hubs to Zhengzhou to serve the Central and Western parts of China  Growth engine of domestic trade 36
  • CENTRALAND LIMITED Zhengzhou’s Specialty Trading Hubs Jiancai Gang North Ring Wenhualu Business Business District District Bishagang Business Erqi Business District District Tianrong Project J-Expo 1 & 2 Railway Business Guancheng District Business District 37
  • CENTRALAND LIMITED Our Growth Opportunity Trading Hubs & Wholesale Malls  Relatively young industry  Development of wholesale malls and trading hubs in the PRC started in the ’80s  Boosted by growing consumer affluence  House wholesalers in the same industry under one roof  Offers merchants from neighbouring cities/provinces a one-stop shop option for the sourcing of goods  Modern wholesale malls to offer a wide array of integrated services  Exhibition halls for trade fairs  Retail shops for the display of goods  Warehousing and storage of goods  Strong logistics infrastructural support to facilitate the flow of goods  Development of commercial properties, in particular wholesale malls, well-supported by the local government authorities  In line with drive towards urbanisation and urban renewal  Boosts local economy & employment 38