2016 Interim Results Presentationclub.polyhongkong.com/a_images/down.aspx?file=/files/...30/6/2015...
Transcript of 2016 Interim Results Presentationclub.polyhongkong.com/a_images/down.aspx?file=/files/...30/6/2015...
2016 Interim Results Presentation │ Media Briefing
30 August 2016
Contents
1. Financial Summary
2. Business Review
3. Outlook for 2H2016
Financial Summary
• For the first half of 2016, the Group’s turnover was approximately HK$9,992 million,
representing an increase of 33.4% as compared with the corresponding period of last
year;
• Gross profit was approximately HK$1,719 million; Overall gross profit margin was around
17.2%;
• Profit attributable to shareholders was approximately HK$59 million. Basic earnings per
share was HK1.60 cents.
3
1H2016 1H2015
Turnover (HK$ million) 9,992 7,489
Gross Profit (HK$ million) 1,719 1,273
Overall Gross Profit Margin 17.2% 17.0%
Profit Attributable to Shareholders (HK$ million) 59 103
Basic EPS (HK cents) 1.60 2.81
Consolidated Income
• For the first half of 2016, the recognized sales and the recognized area sold reached approximately RMB8.16 billion and 796,200 sq.m., respectively. The Recognized average selling price was approximately RMB10,247 per sq.m..
Note: The calculation of Recognized Average Selling Price includes the selling of parking lots.
1H2016 1H2015
Recognized Sales (RMB billion) 8.16 5.61
Recognized Area Sold (‘000 sq.m.) 796 535
Recognized Average Selling Price (RMB/sq.m.) 10,247 10,487
36%
34%
18%
12% Yangtze River Delta
Pearl River Delta
Southwestern
Others
Turnover from Property Development (By Region)
1H2016 1.9
1.1 0.8
1.8
2.9 2.7
1.5 1.0
0.0
1.0
2.0
3.0
4.0
Yangtze RiverDelta
Pearl River Delta Southwestern Others
1H2015 1H2016
Turnover from Property Development (YoY Comparison by Region)
(RMB billion)
Recognized Sales – Property Development
4
29.6
134.6
25.6
129.6
25.4
133.3
0
20
40
60
80
100
120
140
160
Shareholders' equity Total assets
30/6/2015 31/12/2015 30/6/2016
• As of 30 June 2016, total assets grew by approximately 2.9% to HK$133.3 billion, from approximately HK$129.6 billion as at the end of 2015. Cash was approximately HK$21.4 billion, increasing 16.9% compared to the beginning of the year. Shareholders’ Equity reached approximately HK$25.4 billion, and the net asset value per share was approximately HK$6.93, both remaining flat comparing as of 31 Dec 2015.
Shareholders’ Equity and Total Assets 30 Jun. 2016
31 Dec. 2015
Change (%)
Total Assets (HK$ billion) 133.3 129.6 2.9%
--- including: Cash (HK$ billion) 21.4 18.3 16.9%
Total Liabilities (HK$ billion) 104.4 100.2 4.2%
--- including: Borrowings from Financial Institutions and Bonds
(HK$ billion) 55.7 53.2 4.7%
Shareholders’ Equity (HK$ billion) 25.4 25.6 -0.8%
Net Asset Value per Share
(HK$) 6.93 6.98 -0.7%
(HK$ billion)
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Assets and Liabilities
Business Review
Business Review
8
1. Management Policy
“Improve management structure and enhance financial performance”
Through effective management supervision, clear responsibility delegation, the
Group has implemented suitable solutions to key problems and strategically
positioned the development blue print
“Control cost and prevent risk”
Real-time monitoring on the development progress of each project; Formulated
balanced investment proposal with stringent IRR threshold and focused
investment strategy
“Broaden financing channels and reduce funding cost”
Controlled the total debt level and replaced high-cost debt with lower-cost debt
• In the first half of 2016, the Group adhered to “Inventory Clearance, Investment Control, Risk Prevention, and Efficacy Enhancement in an Innovative Way to Boost Sustainable Growth“ as the core strategy in undertaking its key objectives:
Business Review
9
2. Branding & Marketing
“Focused on sales and cash collections to deliver a solid performance”
Achieved 17% and 10% yoy growth on contracted sales and contracted
area sold; sell-through rate increased by 3% yoy
“Provided differentiated guidance and focused on targeted area”
Performed region-by-region inventory analysis and established inventory
clearance action team to optimize product and propel sales
“Improved brand image and escalated brand position”
Successfully marketed properties under the annual theme of “Poly Brings
You Joyful Living” in 2016 and achieved satisfying sales performance
• In the first half of 2016, the Group adhered to “Inventory Clearance, Investment Control, Risk Prevention, and Efficacy Enhancement in an Innovative Way to Boost Sustainable Growth“ as the core strategy in undertaking its key objectives:
2.7
1.7
3.8
2.6 3.2 3.0
-1.0
1.0
3.0
5.0
Jan Feb Mar Apr May Jun
Contracted Sales
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• During the period,
contracted area sold
amounted to 1.44 million
sq.m. and the contracted
sales amounted to
approximately RMB17.0
billion, accounting for
approximately 61% of the
annual target of RMB28
billion.
• A total of 58 projects
were put for sale with 4
debut launches.
Contracted Sales and Contracted Area Sold
(million sq.m.)
1H2012 1H2013 1H2014 1H2015 1H2016
Contracted Area Sold 1.10 1.40 1.20 1.31 1.44
Contracted Sales 10.1 14.6 12.3 14.5 17.0
1.10 1.40
1.20 1.31 1.44
10.1
14.6 12.3 14.5 17.0
0
6
12
18
0.00
0.50
1.00
1.50
2.00
(RMB billion)
Contracted Sales By Month
(RMB billion)
Guangzhou Poly Jade Hills
Location :
North Jianshe Road, Huadu Area, Guangzhou
Proposed usage
: Residential & Commercial
Weihai Poly Maple Valley
Location : Huancui Area of Weihai
Proposed usage
: Mainly highrises
Shanghai Poly Greenland Plaza
Location : Dalian Road, Inner Circle of Yangpu Area
Proposed usage
: Commercial
Guangzhou Poly Gratified West Bay
Location : South of Liwan District, Guangzhou
Proposed usage
: Residential & Commercial
Debuted in February, 2016 Debuted in March, 2016
Debuted in June, 2016
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Newly Launched Projects
Yangtze River Delta
RMB26,200 / sq.m.
Pearl River Delta RMB13,300 /
sq.m.
Southwestern RMB6,500 /
sq.m.
Others RMB9,800 /
sq.m. 23%
21%
22%
34%
OtherRegions
SouthwesternRegion
Pearl RiverDelta Region
Yangtze RiverDelta Region
0% 10% 20% 30% 40%
• During the period, the Group actively launched marketing campaigns under the annual
theme of “Poly Brings You Joyful Living”. By adopting proactive sales strategy, the Group
seized the positive market sentiment, launched new projects, and at the same time
accelerated inventory cycle, successfully surpassing the sales target set for 1H2016.
• During the period, the top five cities in terms of contracted sales were Shanghai, Guiyang,
Guangzhou, Suzhou and Wuhan.
Contracted Sales in 1H2016 (By Region)
Average Selling Price in 1H2016 (By Region)
RMB5.8 billion
RMB3.8 billion
RMB3.5 billion
RMB3.9 billion
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Contracted Sales – By Region
• During the period, residential units accounted for approximately 78% of the Group’s total
contracted sales; of which residential units below 90 sq.m. were accounted for 11%,
residential units from 90 to 144 sq.m. were accounted for 62% (small-to-medium sized
residential units accounted for 73% in total); and residential units that are larger than 144
sq.m. were accounted for 27%.
78%
7%
5%
7%
3%
Residentials
Villa
Office
Commercials
Car Parks
Contracted Sales in 1H2016 (By Product Mix)
Contracted Sales in 1H2016 (By the Size of Residential Units)
11%
62%
27% <90 sq.m.
90-144 sq.m.
>144 sq.m.
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Contracted Sales – By Product
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• In the first half of 2016, 12 projects commenced construction with an total GFA of
approximately 1,879,000 sq.m..
• During the period, the completed gross floor area amounted to 682,000 sq.m..
Projects with Newly Commenced Construction in 1H2016 (By Region)
Yangtze River Delta
Pearl River Delta
South-western
Others
Newly Commenced Construction
• Suzhou Poly West Bank Villa • Ningbo Poly Wonderland
• Wuhan Poly City • Harbin Poly City • Jinan Poly Center • Jinan Poly Elegant Garden • Weihai Poly Maple Valley
• Guangzhou Poly Gratified West Bay
• Guiyang Poly Phoenix Bay • Zunyi Poly Metropolis of
Future • Nanning Poly Town • Kunming Poly One Family
One World
• During the period, the Group obtained 1 land parcel which was located in Kunming, with a
total gross floor area of approximately 652,000 sq.m..
*Note: As at the end of July, 2016
Kunming Poly One Family One World
Usage : Residential, Commercial and Office
Total Planned GFA
(‘000 sq.m.) : 652
Interest Attributable to the Group
: 73%
Current Status* : Under Construction
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New Land Reserves
16%
14%
49%
21%
Yangtze River Delta
Pearl River Delta
Southwestern
Others
16%
16%
44%
24%
• As at the end of June 2016, the total land bank was approximately 20.94 million sq.m., with
approximately 9.45 million sq.m. under development and approximately 11.49 million sq.m.
reserved for future development.
As of 30 Jun 2015
Land Bank under Development And Reserved for Future Development
14.47 11.49
8.74
9.45
0.00
5.00
10.00
15.00
20.00
25.00
June 2015 June 2016
Land Under Construction Land Reserves
As of 30 Jun 2016
Land Bank Portfolio (By Region)
(million sq. m.)
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Land Bank Portfolio
Outlook for 2H2016
• As at the end of July 2016, the Group’s newly commenced construction area was 2,346,000
sq.m., representing 78% of the Group’s full-year target.
• Contracted sales reached approximately RMB 19.6 billion, and the contracted area sold
aggregated approximately 1,641,000 sq.m., representing 70% and 64% of the Group’s full-
year targets, respectively.
28.0
19.6
0
5
10
15
20
25
30
Target in 2016 Jan.-Jul. 2016
Recent and Target Contracted Sales Recent and Target Contracted GFA
2.56
1.64
0
0.5
1
1.5
2
2.5
3
Target in 2016 Jan.-Jul. 2016
3.0
2.3
0
1
2
3
4
5
Target in 2016 Jan.-Jul. 2016
Newly Commenced Construction
78%
70%
64%
18
(RMB billion) (million sq.m.) (million sq.m.)
Targets & Completion Status in 2016
• During the second half of 2016, 4 new projects and 35 continuing projects are expected to be
launched, with a total saleable GFA of approximately 1.38 million sq.m..
Sales Pipeline of New Projects in 2H2016
18%
7%
42%
33% Yangtze River Delta
Pearl River Delta
Southwestern
Others
2H2016
Saleable GFA in 2H2016 (By Region)
Southwestern
Others
• Kunming Poly One Family One World
• Nanning Poly Dream River
• Wuhan Poly Up Town
• Hong Kong Kai Tak Project
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Saleable Resources and Sales Pipeline in 2H2016
2H 2016 Key Missions
• Looking into the second half of 2016, inventory
clearance remains to be the primary objective of the
property market considering the low speed growth of
economy and severe conditions of oversupply.
• Maintaining a stable market condition will be the
Central government’s objective on the property
market. Local governments will have more flexibilities
on regulations according to their respective market
situations. In particular, top-tier cities are expected to
adapt a cautious price monitoring and credit
tightening approach.
• In the second half of 2016, the Group will continue to
adhere to “Inventory Clearance, Investment Control,
Risk Prevention, and Efficacy Enhancement in an
Innovative Way to Boost Sustainable Growth“ as the
key strategy, aiming to achieve the annual growth
target and enhance operational efficiency.
Accelerate inventory clearance and boost sales
Control investments to ensure stable operational cash flow
Endeavour to reduce gearing and reinforce risk management
Improve management system to achieve higher operational efficiency
Rejuvenate business model through innovative ways
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2
3
5
4
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Thank you!