CentraLand Limited FY2010 Results Presentation
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Transcript of CentraLand Limited FY2010 Results Presentation
Corporate Presentation
CENTRALAND LIMITED
25 February 2011
A Leading Zhengzhou-Based
Property Developer and
Property Manager …
… Focused on Wholesale Malls
CENTRALAND LIMITED
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Contents
Company Overview
Financial Review
Corporate Updates
Appendix: Background on Wholesale
Trading Hubs
CENTRALAND LIMITED
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Company Overview
CENTRALAND LIMITED
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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
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 Jan 27, 2011) S$0.360
Market Capitalisation
(As at Jan 27, 2011)S$664.20 mil
Net Asset Value Per Share (Dec 31, 2010)
16.05 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%
CENTRALAND LIMITED
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Our Portfolio (Geographical location)J-Expo 1 & 2
Small consumer goods wholesale mall
Tianrong Project
Fashion apparel wholesale mall
Jiancaigang
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 I & II
Nongye Road
Jiancai Gang
N
CENTRALAND LIMITED
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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 31 Dec 2010)
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 (建材港) 758,574 354,568
Tenure of 20 years:
11 Nov 2009 – 30 Jun 2028
1 Based on amalgamated site area of Tianrong Fashion City and Old Residential Area
CENTRALAND LIMITED
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Financial
Review
CENTRALAND LIMITED
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Income StatementRMB ’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 ppt
FY: Financial year ended 31 December
CENTRALAND LIMITED
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Revenue - Growing recurring income stream
FY2010 vs FY2009
Revenue growth due to:
Sales of properties recognised in FY2010
404 units in Phase III of GuolingShanshui
18 retail and 15 office units in J-Expo 1
RMB82.5 mil contributed from rental income and RMB17.8 mil from property management fee
Rental income increase due to:
Sub-leasing of space within Jiancaigang
Property management fee increased from RMB6.7 million in FY2009 to RMB17.8 million in FY2010
FY: Financial year ended 31 December
RMB’mil
106.3
208.941.9
82.5
6.7
17.8
0
50
100
150
200
250
300
350
FY2009 FY2010
Sale of Properties Rental Income Property Management Fees
155.0
309.2
CENTRALAND LIMITED
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Gross Profit, PBT & Profit for the Year
94.0
155.1
28.8 27.5
12.2 17.3
0
20
40
60
80
100
120
140
160
FY2009 FY2010
Gross Profit PBT Profit for the Year
RMB’milGross Profit
GP increased 65% to RMB155.1 mil in
FY2010
GP margin decreased 10.5 ppt, due to
higher margins commanded by
commercial properties in FY2009
PBT
Decreased 4.5% to RMB27.5 mil in
FY2010
Profit for the Year
Up 43% to RMB17.3 mil in FY2010
Effective tax rate of 36.6% in FY2010
FY: Financial year ended 31 December
CENTRALAND LIMITED
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* Based on post-Invitation share capital of 1,845,000,000 Shares
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
CENTRALAND LIMITED
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Corporate Updates
CENTRALAND LIMITED
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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.
CENTRALAND LIMITED
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Our First Commercial Project:
J-Expo 1 (金智•万博商城 1)
CENTRALAND LIMITED
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Status of J-Expo 1 (金智•万博商城 1)
As at 31 December 2010
*302 units of the unsold units on level 4 and 5 were rented out as at 30 December 2010.
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
CENTRALAND LIMITED
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Tianrong Project
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 – well-received
Soft launch : 287.4% rate of registration of interest
7,184 downpayments to ballot for 2,500 retail units
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 )
CENTRALAND LIMITED
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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
CENTRALAND LIMITED
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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
CENTRALAND LIMITED
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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
• 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
Signed S&P
agreement to
acquire full
ownership of
Tianrong
Fashion City
CENTRALAND LIMITED
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Wholesale Mall for automobile parts and building materials
Zhengzhou Tiandi Renhe acquired the master tenancy of Jiancai Gang on 30 Nov 2009
Annual rent of RMB24 million Duration of 20 years (Expiry on 30 June 2028) Contributes approx RMB80 million per year in rental income and
management fees to the Group
Signed S&P agreement to acquire full ownership and control of Jiancai Gang on 30 Sep 2010
To acquire land use rights and buildings for RMB600 million To be funded by cash and issue of new shares 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
Jiancai Gang (建材港)
Currently holds 80% of Zhengzhou Tiandi Renhe
Two stable income streams:
Sub-leasing
Property management
CENTRALAND LIMITED
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Jiancai Gang (建材港)
CENTRALAND LIMITED
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Jiancai Gang
North Ring Business District
Jiancai Gang (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
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Nongye Road Project (农业路项目)
Started construction:
4Q 2010
Expected completion:
3Q 2012
Artist Impression
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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
Pre-sales launched in late October
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)Units
No of Units Sold*
% GFA SoldAverage ASP/unit
(RMB/sqm)
Stage 1Low-rise
apartments
4Q2012
43,763 540 40475.2%
(32,900 sq m)6,000
Stage 2Townhouses/
Duplexes/ Commercial units
89,000Under
planning- - -
*As at 31 December 2010
CENTRALAND LIMITED
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Guoling Shanshui (果岭山水)
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
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Guoling Shanshui (果岭山水) Phase III
Artist Impressions
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Guoling Shanshui (果岭山水) Phase III
Show unit interiors
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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
CENTRALAND LIMITED
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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
CentraLand Limited
CENTRALAND LIMITED
Johnson Choo
Vice President
Investor Relations and Corporate Communications
Mobile: +65 94506527 / +86 15838381086
Email: [email protected]
CENTRALAND LIMITED
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APPENDIX
Background:
Wholesale Trading Hubs in
Zhengzhou City, Henan Province
CENTRALAND LIMITED
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About Henan Province
CENTRALAND LIMITED
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Source: Google mapsSource: http://www.china-mor.gov.cn/
Connectivity in Zhengzhou
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-HorgosExpressway, 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
CENTRALAND LIMITED
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Zhengzhou : Links East to the West
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
Guangzhou
Wenzhou
Yiwu
Zhengzhou
CENTRALAND LIMITED
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North Ring
Business
District
Railway
Business
District
Jiancai Gang
J-Expo 1 & 2
Guancheng
Business
District
Erqi Business
District
Tianrong Project
Zhengzhou’s Specialty Trading Hubs
Wenhualu
Business
District
Bishagang
Business
District
CENTRALAND LIMITED
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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