CENTRALAND LIMITED




CentraLand Limited

2Q2010 Results Presentation
CENTRALAND LIMITED



                     Contents

                      Overview of Zhengzhou
                      C...
CENTRALAND LIMITED


                     A Leading Zhengzhou-Based
                     Property Developer
              ...
CENTRALAND LIMITED



                        Regional GDP Ranking

                                    GDP               ...
CENTRALAND LIMITED



                          Overview of Zhengzhou


                                                  ...
CENTRALAND LIMITED



                             Connectivity in Zhengzhou




Source: http://www.china-mor.gov.cn/     ...
CENTRALAND LIMITED



                      Zhengzhou : the Centre of Development
“Central
City Cluster” -
Zhengzhou as
th...
CENTRALAND LIMITED




                     Zhengzhou : Links East to the West




                                       ...
CENTRALAND LIMITED



                     Zhengzhou’s Specialty Trading Hubs
                                            ...
CENTRALAND LIMITED




                     Company Overview



                            10
CENTRALAND LIMITED



                       Our Portfolio (Geographical location)
                       J-Expo I & II   ...
CENTRALAND LIMITED


                                  Our Portfolio
                                                     ...
CENTRALAND LIMITED




                          Financial
                           Review




                     13
CENTRALAND LIMITED



                      Income Statement
 RMB ’mil                        1H2010   1H2009    Change

 ...
CENTRALAND LIMITED



                      Income Statement
 RMB ’mil                        2Q2010   2Q2009    Change

 ...
CENTRALAND LIMITED



                        Revenue
                                                                    ...
CENTRALAND LIMITED



                     Revenue Breakdown
                          2Q2009                         2Q20...
CENTRALAND LIMITED



                        Gross Profit, PBT & Net Profit
RMB’mil                                      ...
CENTRALAND LIMITED



                      Balance Sheet Highlights
 RMB’mil                                             ...
CENTRALAND LIMITED




                     Commercial Projects




                          20
CENTRALAND LIMITED


                     J-Expo I (金智•万博商城 I)




                                21
CENTRALAND LIMITED




                             Status of J-Expo I (金智•万博商城 I)
                                     To...
CENTRALAND LIMITED



                      J-Expo II (金智•万博商城 II )
Rate of
registration          As at 4 August 2010, rat...
CENTRALAND LIMITED



                         J-Expo II (金智•万博商城 II )
       Acquisition of J-Expo II site located in
   ...
CENTRALAND LIMITED



                          Tianrong Project (天荣时装城)
                  Strategic location
 Close prox...
CENTRALAND LIMITED



                     Tianrong Project – Acquisition Status
The Group                      Tianrong F...
CENTRALAND LIMITED



                     Jiancai Gang (建材港)




                                27
CENTRALAND LIMITED



                      Jiancai Gang (建材港)
The Group
holds 80% of                  Zhengzhou Tiandi Re...
CENTRALAND LIMITED



                     Jiancai Gang (Geographical location)




                                      ...
CENTRALAND LIMITED



                     Nongye Road (农业路)
                 Expected start of construction:
            ...
CENTRALAND LIMITED



                     Nongye Road (农业路)
       Acquisition of Nongye Road site
                  for ...
CENTRALAND LIMITED




                     Residential Projects




                              32
CENTRALAND LIMITED



                       Guoling Shanshui (果岭山水)
                                                     ...
CENTRALAND LIMITED


                            Guoling Shanshui (果岭山水)
                            Phase III & Beyond
  ...
CENTRALAND LIMITED


                     Guoling Shanshui (果岭山水)
                     Phase III & Beyond


              ...
CENTRALAND LIMITED



                     Guoling Shanshui (果岭山水) Phase III




                                         ...
CENTRALAND LIMITED




                              Guoling Shanshui (果岭山水) Phase III

                                  ...
CENTRALAND LIMITED



                     Project Pipeline
                        2009          2010          2011      ...
CENTRALAND LIMITED



                     Project Pipeline – Total GFA
                     Uses                         ...
CENTRALAND LIMITED



CentraLand Limited
Thank You

Johnson Choo
Vice President
Investor Relations and Corporate Communica...
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Centraland 2 q2010 results presentation (aug 12 '10)

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CentraLand Limited 2Q 2010 Results Presentation

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Centraland 2 q2010 results presentation (aug 12 '10)

  1. 1. CENTRALAND LIMITED CentraLand Limited 2Q2010 Results Presentation
  2. 2. CENTRALAND LIMITED Contents  Overview of Zhengzhou  Company Portfolio  Financial Review  Commercial Projects  Residential Projects 2
  3. 3. CENTRALAND LIMITED A Leading Zhengzhou-Based Property Developer  Business acquired by present management in November 2003  Focus 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 Listing SGX Mainboard Issued Share Capital 1,845,000,000 Free Float 13.3% Share Price (As at Jul 2, 2010) S$0.435 Market Capitalisation S$802.58 mil (As at Jul 2, 2010) Net Asset Value Per Share 77.92 RMB cents (Jun 30, 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% 3
  4. 4. CENTRALAND LIMITED Regional GDP Ranking GDP Zhengzhou’s GDP Ranking Region (RMB billion)* 1 Guangdong 3,569.6 2 Shandong 3,107.2 3 Jiangsu 3,031.3 4 Zhejiang 2,148.7 5 Henan 1,840.8 6 Hebei 1,618.9 7 Shanghai 1,369.8 8 Liaoning 1,346.2 9 Sichuan 1,250.6 *As at 2008 10 Hubei 1,133.0 Sources: China Statistical Yearbook 2009, Zhengzhou Statistical Yearbook 2009 4
  5. 5. CENTRALAND LIMITED Overview of Zhengzhou Urumqi Beijing Shanghai Zhengzhou Hong Kong Source: Zhengzhou Zhengdong New District Investment Source: Zhengzhou Statistical Yearbook 2008 Environment Study 2009 (KPMG Shanghai)  Capital city of Henan Province, one of China’s eight ancient capitals  Located in the central part of the PRC and south of Yellow River  Land area : 7,446 sq km  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 5
  6. 6. CENTRALAND LIMITED Connectivity in Zhengzhou Source: http://www.china-mor.gov.cn/ Source: Google maps  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 6
  7. 7. CENTRALAND LIMITED Zhengzhou : the Centre of Development “Central City Cluster” - Zhengzhou as the centre of development Henan Provincial Government  The “Central City Cluster” includes 8 cities within one-hour drive from Zhengzhou  Luoyang, Kaifeng, Xinxiang, Jiaozuo, Xuchang, Pingdingshan, Jincheng and Jiyuan  Integration of Zhengzhou and Kaifeng as a Mega-City to enhance the development of the “Central City Cluster” 7
  8. 8. CENTRALAND LIMITED Zhengzhou : Links East to the West Zhengzhou Wenzhou Yiwu Guangzhou  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 8
  9. 9. CENTRALAND LIMITED Zhengzhou’s Specialty Trading Hubs Jiancai Gang North Ring Wenhualu Business Business District District Bishagang Business Erqi Business District District Tianrong J-Expo I and II Railway Business Guancheng District Business District 9
  10. 10. CENTRALAND LIMITED Company Overview 10
  11. 11. CENTRALAND LIMITED Our Portfolio (Geographical location) J-Expo I & II N Guoling Shanshui  Small consumer commodities wholesale trading hub Jiancai Gang Tianrong Fashion City Nongye Road  Fashion apparel wholesale trading hub Zhengdong New CBD Jiancai Gang J-Expo I & II Tianrong  Wholesale centre for building materials  Property management services Nongye Road  Border of old city centre and new CBD Guoling Shanshui  25km or 20 mins drive from Zhengzhou City centre  5km south of Yellow River, where the Yellow River Scenic Area is located 11
  12. 12. CENTRALAND LIMITED Our Portfolio Land Bank/ Site Area Saleable/Planned Remarks (sq m) Estimated GFA (sq m) Completed property Commercial property J-Expo I (金智 万博商城 I) 9,771 65,890 Sold and delivered 76.3% of saleable GFA (As at 31 Mar 2010) Property under development Estimated Construction Schedule Residential property Phase III of Guoling Shanshui (果岭山水) 174,412 132,000 2Q 2009 – 4Q 2012 Remaining land bank at Guoling Shanshui 1.5 mil TBA -- New projects Commercial properties J-Expo II (金智 万博商城 II) 8,139 82,000 3Q 2010 – 1Q 2012 Tianrong Fashion City (天荣时装城) 27,1901 550,0003 1Q 2011 – 4Q 2015 Old Residential Area, adjacent to Tianrong Fashion City 20,0012 (旧住宅区) Mixed residential & commercial property Nongye Road Project (农业路项目) 16,123 100,092 3Q 2010 – 3Q 2012 Property Management Tenure of 20 years: Jiancai Gang (建材港) 758,574 354,568 11 Nov 2009 – 30 Jun 2028 1 3 Based on amalgamated site area of Tianrong Fashion Entered into a sale and purchase agreement to acquire land occupying 15,081 sq m; acquired the balance 12,109 sq m in 2Q 2010 City and Old Residential Area 2 Acquisition expected to take place in 4Q 2010 12
  13. 13. CENTRALAND LIMITED Financial Review 13
  14. 14. CENTRALAND LIMITED Income Statement RMB ’mil 1H2010 1H2009 Change Revenue 60.9 84.4 - 27.8% Gross Profit 40.7 49.1 - 17.2% Other Income 1.3 1.2 + 12.7% Profit Before Tax 5.2 27.6 - 81.0% Net Profit 4.1 10.0 - 59.1% Selling Expenses 3.9 4.2 - 6.3% Admin Expenses 26.1 16.3 + 60.0% Effective Tax Rate 21.5% 63.6% - 42.1 ppt Gross Profit Margin 66.8% 58.2% - 8.6 ppt Profit Before Tax Margin 8.6% 32.7% - 21.2 ppt Net Profit Margin 6.7% 11.9% - 5.2 ppt 1H: Six months ended 30 June 14
  15. 15. CENTRALAND LIMITED Income Statement RMB ’mil 2Q2010 2Q2009 Change Revenue 31.0 20.6 + 50.8% Gross Profit 20.0 12.7 + 57.8% Other Income 0.6 0.7 - 17.1% Profit Before Tax 1.9 5.6 - 66.6% Net Profit 1.3 2.0 - 33.7% Selling Expenses 1.6 1.6 + 3.5% Admin Expenses 13.6 5.0 + 170.4% Effective Tax Rate 30.3% 64.8% - 34.5 ppt Gross Profit Margin 64.6% 61.8% + 2.8 ppt Profit Before Tax Margin 6.0% 27.2% - 21.2 ppt Net Profit Margin 4.2% 9.6% - 5.4 ppt 2Q: Three months ended 30 June 15
  16. 16. CENTRALAND LIMITED Revenue 2Q2010 vs 2Q2009 Revenue increased from RMB20.6 mil in RMB’mil 2Q2009 to RMB31.0 mil in 2Q2010 50.0  RMB2.0 mil recognised from delivery of 3 retail and 3 office units in J-Expo 40.0 31.0  RMB29.0 mil contributed from rental income and property management 30.0 fees 20.6 20.0 Rental income increased from RMB5.0 mil in 10.0 2Q2009 to RMB22.5 mil in 2Q2010  Leasing out of commercial retail units 0.0 in Guoling Shanshui to third-party* 2Q2009 2Q2010 Revenue  Sub-leasing of space within Jiancai Gang * Group re-purchased some commercial retail units in 2H2009: leased to third-party operator for an annual Property management fee contribution of rent of RMB6 m RMB6.5 million 2Q: Three months ended 30 June 16
  17. 17. CENTRALAND LIMITED Revenue Breakdown 2Q2009 2Q2010 Rental Income Property 24.4% Management Fee 21.1% J-Expo I Retail Units 6.4% J-Expo I Rental Income Retail Units 72.5% 75.6% 17
  18. 18. CENTRALAND LIMITED Gross Profit, PBT & Net Profit RMB’mil Gross Profit 25  Increased from RMB12.7 million in 2Q2009 to RMB20.0 mil in 2Q2010 20.0 20  GP margin increased 2.8 ppt to 64.6%  Higher gross margins from rental income and property management 15 fees compared to sales of 12.7 properties 10 5.6 PBT 5  Decreased to RMB1.9 mil in 2Q2010 2.0 1.9 1.3 0 Net Profit 2Q2009 2Q2010  Decreased to RMB1.3 mil in 2Q2010 Gross Profit PBT Net Profit  Effective tax rate of 30.3% in 2Q2010 18
  19. 19. CENTRALAND LIMITED Balance Sheet Highlights RMB’mil As at 30 Jun 2010 As at 31 Dec 2009 Cash & Bank Balances 429.1 938.9 Net Assets 1,437.7 1,383.2 - Properties Held for Development 1,469.0 783.6 - Properties Held Under Development 182.6 138.9 - Properties Held for Sale 69.1 70.7 - Deposits Paid 150.0 120.0 Receipts in Advance (140.3) (46.3) Interest-bearing Bank & Other Borrowings (523.0) (617.0) Net Gearing Ratio (times) 0.07 Net cash NAV per Share (RMB cents) * 77.92 74.97 * Based on post-Invitation share capital of 1,845,000,000 Shares 19
  20. 20. CENTRALAND LIMITED Commercial Projects 20
  21. 21. CENTRALAND LIMITED J-Expo I (金智•万博商城 I) 21
  22. 22. CENTRALAND LIMITED Status of J-Expo I (金智•万博商城 I) 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 18,297 464 451 11,379 units 192 office L6-L12 2Q 2008 11,311 147 147 6,113 units 2,560 retail 76.7% Total 65,890 units/192 14,226 office units (50,555 sq m) As at 30 June 2010 *302 units of the unsold units on level 4 and 5 were rented out as at 30 June 2010. 23.3% GFA for lease 76.7% GFA sold 22
  23. 23. CENTRALAND LIMITED J-Expo II (金智•万博商城 II ) Rate of registration As at 4 August 2010, rate of registration of interest at soft launch for J-Expo II was 263.1% of interest: • The Group received 6,578 down-payments to ballot for J-Expo II’s 2,500 263.1% retail units • Pre-sales expected to start in second quarter of 2011 Expected start of construction: 3Q 2010 Expected completion: J-Expo II 1Q 2012 J-Expo I 23
  24. 24. CENTRALAND LIMITED J-Expo II (金智•万博商城 II ) Acquisition of J-Expo II site located in Erqi District (二七区) for RMB150 mil  In response to strong market demand following success of J-Expo I J-Expo II  Total site area of 8,139 sq m Zhengzhou Long J-Expo I  Adjacent to existing J-Expo I Distance Bus Station Strategic location Zhengzhou  Within walking distance to Zhengzhou Railway Railway Station station and Zhengzhou Long Distance Central Bus Station  Located within the main wholesale centre of Tianrong Project Zhengzhou City Total saleable GFA of 82,000 sq m Retail Trading Hub (Erqi District)  Retail space: 67,000 sq m Commodities Trading Hub (Railway District)  Office space: 15,000 sq m Fashion Trading Hub (Guancheng District) 24
  25. 25. CENTRALAND LIMITED Tianrong Project (天荣时装城) 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 Zhengzhou Long Distance 27,190 + 20,001 = 47,191 sq m Bus Station  Comprises of Tianrong Fashion City and Old Residential Area Zhengzhou Railway Station Planned saleable GFA of 550,000 sq m  Retail space: 140,000 sq m  Office space: 180,000 sq m Old  For lease to generate rental income: 230,000 sq m Tianrong Residential Fashion Area To be developed in stages over 5 yrs City  Construction expected to commence in 1Q 2011 Landmark project in Henan Province  To be fully integrated with supporting infrastructure  Bus station in basement  Ample carpark facilities 25
  26. 26. CENTRALAND LIMITED Tianrong Project – Acquisition Status The Group Tianrong Fashion City: Old Residential Total intended Area: acquisition site: holds 80% 27,190 sq m 20,001 sq m 47,191 sq m stake in the JV Total land cost: RMB1 billion Stage 1: Stage 2: 15,081 sq m 12,109 sq m (2 land parcels) (2 land parcels) • Acquired Henan • Acquired • Adjacent site to • To develop into Hezhi Co., Ltd. for Zhengzhou Tianrong Fashion an integrated RMB440 mil Longma City commercial - Holds 80% Enterprise Co., development stake in 2 land Ltd for RMB360 • Land cost subject over a 5-year parcels mil in 2Q2010 to government period - Holds 80% auction • Funded by IPO stake in 2 land proceeds and parcels • Expected to take internal funds place in 4Q2010 • Funded by IPO proceeds and internal funds 26
  27. 27. CENTRALAND LIMITED Jiancai Gang (建材港) 27
  28. 28. CENTRALAND LIMITED Jiancai Gang (建材港) The Group holds 80% of Zhengzhou Tiandi Renhe acquired the master tenancy of Zhengzhou Jiancai Gang on 30 Nov 2009 Tiandi Renhe  Annual rent of RMB24 million  Duration of 20 years (Expiry on 30 June 2028) Two new  First right of refusal to renew tenancy stable income streams: Jiancai Gang : Wholesale Centre for building materials Sub-leasing  Within North Ring Trading Hub: one of Zhengzhou City’s 6 largest trading hubs Property  Focuses mainly on the wholesale of automobile parts and building management materials  Has approx 1,300 tenants and approx annual turnover of approx RMB1 billion  Aggregate gross floor area : 354,568 sq m  Site area : approx 758,574 sq m Reinforces capabilities in management of commercial properties, esp specialty wholesale trading hubs 28
  29. 29. CENTRALAND LIMITED Jiancai Gang (Geographical location) Jiancai Gang North Ring Business District 29
  30. 30. CENTRALAND LIMITED Nongye Road (农业路) Expected start of construction: 3Q 2010 Expected completion: 3Q 2012 Artist Impression Site cleared for construction 30
  31. 31. CENTRALAND LIMITED Nongye Road (农业路) Acquisition of Nongye Road site for RMB70 mil  Total site area of 16,123 sq m Nongye Road Project 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 31
  32. 32. CENTRALAND LIMITED Residential Projects 32
  33. 33. 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 expected to start in FY2010 Remaining site area of 1.5 mil sq m held for future development 33
  34. 34. 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)  Stage 1 construction underway (174,412 sq m) Phase I & II • Pre-sales launched in late October (Completed) (276,735 sq m) • Saleable GFA of 43,763 sq m 9% 15%  Stage 2 construction expected to commence in FY2010 76%  Saleable GFA of 89,000 sq m 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 54.6% Stage 1 apartments 43,763 540 295 6,145 (24,977 sq m) 4Q2012 Townhouses/ Under Stage 2 Duplexes/ 89,000 planning - - - Commercial units *As at 4 August 2010 34
  35. 35. 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 35
  36. 36. CENTRALAND LIMITED Guoling Shanshui (果岭山水) Phase III Artist Impressions 36
  37. 37. CENTRALAND LIMITED Guoling Shanshui (果岭山水) Phase III Show unit interiors Construction underway As at Mar 2010 37
  38. 38. CENTRALAND LIMITED Project Pipeline 2009 2010 2011 2012 2013 2014 2015 Property under development Guoling Shanshui Phase III New projects J-Expo II Nongye Road Project Tianrong Project Jiancai Gang Project 38
  39. 39. CENTRALAND LIMITED Project Pipeline – Total GFA Uses Saleable/Planned Estimated GFA (sq m) Residential 216,685 - Guoling Shanshui Phase III 132,000 - Nongye Road 84,685 Retail 211,407 - J-Expo II 67,000 - Tianrong Project 140,000 - Nongye Road 15,407 Office & Commercial 204,000 - J-Expo II 15,000 - Tianrong Project 180,000 For Lease (Rental Income) 230,000 - Tianrong Project 230,000 Property Management 354,568 - Jiancai Gang 354,568 Total : 1,218,660 sq m 39
  40. 40. CENTRALAND LIMITED CentraLand Limited Thank You Johnson Choo Vice President Investor Relations and Corporate Communications Mobile: +65 94506527 / +8615838381086 Email: johnsonchoo@centralandltd.com

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