Shun Tak Holdings Limited Corporate Presentation Jun 2021 Disclaimer
This document has been prepared by Shun Tak Holdings Limited (“the Company”) solely for general information purposes and is not, and should not be construed as, an offer or solicitation of an offer to buy or sell any securities or financial instruments or to provide any investment services or advices.
This document contains statements that constitute “forward-looking statements”. While these forward-looking statements represent our judgments and future expectations concerning the development of our business, various known and unknown risks, uncertainties and other factors could lead to actual developments and results to differ from our expectations.
Information and opinions contained herein have been compiled in good faith by the Company, but no representation or warranty, expressed or implied, is made as to their accuracy, correctness or completeness. All opinions and estimates contained in this document are provided in good faith but without any responsibility and are subject to change without notice. The Company or any of its subsidiaries or affiliates, nor any of its or their officers or persons accepts any responsibilities or liability whatsoever from any actions or claims arising from any use or interpretation of information contained herein.
This document or any material herein may not be reproduced or redistributed or transmitted to any other person or incorporated in any way into another document or other material without the prior consent of the Company.
Should there be inconsistency between the English version and the Chinese version, the English version shall prevail.
2 About Shun Tak Our Businesses
Property Hospitality • Property development, • Ownership of hotels in Hong investment and Kong, China and Singapore management in Macau, • Hotel management solutions Hong Kong, Singapore by Artyzen Hospitality Group and China
Transportation Investment
• TurboJET passenger ferry • ~15.8% effective interest services in STDM • Coach services within • Kai Tak Cruise Terminal Macau and linking Macau • Toys “R” Us Macau with cities in China • Cross-boundary land transit services via HK-Zhuhai- Macau Bridge
4 Our Track Record
Revenue & Other Income (HKD’ M) Proven Execution of Premium Assets
15,055 Nova City Ph. I-III, Nova Park (Ph. IV), Nova Grand (Ph. V), Taipa, Macau 6,916 6,641 4,472 • 4,300 units, 6.4m sf GFA of residential & retail 4,107 • Completed during 2006-2018 by phases • All sold for phases I-III • Phase IV (Nova Park): 96% sold (as at 31 Dec 20) • Phase V (Nova Grand): 80% sold (as at 31 Dec 20)
One Central, Macau Peninsula, Macau Underlying Profit# (HKD’ M) • Residential, serviced apartments, flagship mall & the Mandarin Oriental Macau 3,624 • 51% shareholding (partnership with HK Land) • 796 residences, 92 serviced apartments, 2.4m 2,529 sf GFA • Completed in 2009-2010 1,242 • All sold 1,082
30 Chatham Gate, Hunghom, Hong Kong • 51% shareholding (partnership with SHK) • 334 units, 370k sf GFA # Principally adjusted for unrealised fair value changes • Completed in 2012 on investment properties • All sold
5 Our Journey
• New and carefully planned strategic directions to achieve an all-rounded Group with multi-level portfolio offering predictable and steady returns, while leveraging solid returns from traditional businesses
Pre-2010’s 2010’s Future • Transportation • Expanding • Capitalise network within presence to opportunities Pearl River Delta China and brought by the Singapore development of • Property Greater Bay Area, development and • Establishment of fully leveraging on hotel ownership hospitality connections and primarily in Macau management strategic and Hong Kong arm collaborations
Long-term planning, investment and development
6 Our Management Team
Ms. Pansy Ho Group Executive Chairman and Managing Director • Joined the Group as an executive director in 1995 • Appointed Managing Director in 1999 & Group Executive Chairman in 2017 to oversee overall strategic development • Chairman of the Sustainability Steering Committee • Co-Chairperson and Executive Director, MGM China Holdings Limited • Standing committee member of Beijing Municipal Committee of the CPPCC • Vice-Chairman & Secretary-General, Global Tourism Economy Forum • Appointed as a tourism ambassador by the UN World Tourism Organization in Oct 2018 • Conferment of The Silver Bauhinia Star Nov 2020 Ms. Daisy Ho Ms. Maisy Ho Deputy Managing Director and CFO Executive Director • Joined the Group and appointed an executive • Joined the Group in 1996 and has been an director in 1994. Appointed the deputy managing executive director since 2001 director & CFO in 1999 • Head of the Sustainability Task Force • Responsible for the Group’s overall financial • Responsible for overseeing the strategic activities, as well as property sales and investments planning and operations of the property • Director, Shun Tak China Travel Shipping Investments management division, as well as retail and Limited merchandising division • Director and General Manager, Shun Tak Centre Ltd • Standing committee member of CPPCC of • Appointed Chairman and Executive Director of SJM Liaoning Province Holdings Ltd in 2018
Mr. David Shum Mr. Rogier Verhoeven Executive Director Executive Director • Joined the Group in 1992 and has been an • Joined the Group as a consultant since 2000 executive director since 2004 and was appointed an executive director in • Responsible for the investment activities of the Feb 2012 Group • Extensive experience in the hospitality industry • Also an executive director of SJM Holdings Limited • Responsible for overseeing the strategic development and operation of hospitality business 7 Financials FY20 Results Highlights
Heavy blow to the economy dealt by Net profit decreased by 92% to HK$262M COVID-19: mainly due to:
• Hotel industry was battered as borders • Exceptionally high base resulting from strong closed and travel came to a near halt profit bookings from Nova Grand in FY19
• Commercial properties faced • Downward fair value adjustments in recessionary pressure as retailers investment properties (-HK$659 million YoY) suffered a slump in demand • Widened loss of HK$615 million for hospitality • Residential properties only held division with sharp decline in hotel marginal growth occupancy and hotel impairment losses
• Offset by disposal gain of HK$396 million Navigating through tough environment from STCTS restructuring, and
• The Group is making every effort to • Gain of HK$563 million on disposal of Phase manage costs, conserve cash flow, as 2 of Tongzhou Integrated Development well as taking measures to protect the long term sustainability of its investments, tenants, customers and staff
• Remains financially strong and resilient in 1 Adjusted segment results = segment results + share of results of associates and JVs spite of the unprecedentedly tough operating environment 9 Income Statement Summary
For the 12 months ended 31 Dec YoY FY18 FY19 FY20 (HKD’ million) Change
Revenue and other income 6,916 15,055 4,472 -70%
Profit attributable to owners of the Company 4,647 3,456 262 -92%
Fair Value Changes on Investment Properties 2,118 (168) (827) -393% (Net of Deferred Tax and Minority Interests)
Underlying profit1 2,529 3,624 1,089 -70%
Basic earnings per share (HK cents) 153.4 114.3 8.7 -92%
Adjusted EBITDA2 3,911 6,979 2,463 -65%
1 Underlying profit attributable to the owners is principally adjusted for unrealised fair value changes on investment properties 2 Adjusted EBITDA = Operating Profit – fair value changes on investment properties + depreciation and amortisation + share of results of associates & joint ventures* * Share of results of associates and joint ventures excludes the shares of the revaluation surplus arising from those investment properties that are owned by associates and joint ventures.
10 Revenue and Other Income Breakdown
Revenue and Other Income by Division* Revenue and Other Income by Geographical Location* (HKD’ million) (HKD’ million)
2% 14,733 14,733 12% 6% 6% 2% 33% 9%
20% 6,716 2% 6,716 4% 20% 84% 83% 12% 3% 1% 4,318 4,318 33% 4% 7% 65% 17% 3%
53% 85% 62% 28% 9% 17% FY18 FY19 FY20 FY18 FY19 FY20
Hospitality Property Hong Kong China Transportation Investments Macau Others
*Excluding interest income
11 Capital Management
As at 31 Dec 2018 31 Dec 2019 31 Dec 2020 Change (HKD’ million) (restated)
Cash and bank balances 14,318 12,281 5,446 -56%
Bank borrowings / Medium Term Notes 18,488 18,485 17,940 -3%
Net debt (4,170) 6,204 12,493 +101%
Gearing ratio 32,896 17.3% 35.6% +18.3 pts
Debt Maturing Profile (HKD’ million)
Total: 18,488 Total: 18,485 Total: 18,023* 12,071 9,328 10,466
6,418 5,171 3,989 67% 57% 2,930 50% 1.325 746 67% 2,276 28% 35% 22% 276 16% 13% 7% 1% 4% <1 yr 1-2 yrs 2-5 yrs <1 yr 1-2 yrs 2-5 yrs >5 yrs <1 yr 1-2 yrs 2-5 yrs >5 yrs Dec 2018 Dec 2019 Dec 2020
12 Property Property Division Performance and Prospects
Division Operating Profit FY20 performance (HKD’ million) • Adjusted segment results, which include results from JVs 5,921 6,752 Operating Profit and associates, declined 60% YoY mainly due to the lack 78 JV & Associates of strong property sales recognition for Nova Grand 227 5,362
YoY No. of residential units booked FY19 FY20 5,843 2,250 Change 2,189 Nova Grand, Macau 951 164 831 6,525 -68% 149 682 3,112 2,468 TripleOne Somerset, Singapore 50 1 (279) Chatham Place, Hong Kong Nil 2 FY18 FY19 FY20 Hengqin Integrated Development Nil 135*
Adjusted Segment Results* Suhe Bay Mixed-use Development, Shanghai, China Nil 18** (HKD’ million) • Furthermore, rental income contracted as the Group YoY offered concessionary relief to tenants Change 6,778 -60% Prospects 3,413 2,688 • Roll out property sales strategically • Continue to offer concessionary terms to retain tenants FY18 FY19 FY20 and help them navigate through the headwinds; rental income will remain under pressure * Adjusted segment results = segment results + share of results of associates • Major projects in Tongzhou Beijing, Qiantan Shanghai, and JV# Tianjin and Kunming completing in phases between 2021 # Share of results of associates and joint ventures excludes the shares of the revaluation surplus from those investment properties that are owned by and 2023 associates and joint ventures
14 *Profit is recognized over time per IFRS requirement with 89% of 152 units recognized in FY20 ** Profit is recognized over time per IFRS requirement with 43% of 42 units recognized in FY20 Property Portfolio
Key Completed Projects
Property Portfolio Usage Split Macau China Hong Kong • Nova Taipa Gardens • Shun Tak Tower, • The Belcher’s • Nova City Phase I, II, III Beijing • liberté • One Central • Radcliffe Hospitality • Nova Park (Nova City Phase IV) • Chung Hom Kok Commercial/ Office 35% Projects Completed with Recent Sales 52% • Nova Grand (Nova City Phase V), Macau • TripleOne Somerset, Singapore 13% • Chatham Gate, Hong Kong Residential
Projects Under Development • Hengqin Mixed-use Development, Zhuhai, China • Tongzhou Integrated Development, Beijing, China • Suhe Bay Mixed-use Development, Shanghai, China • NEW BUND 31, Qiantan, China • Park Nova, luxury residential, Singapore • Les Maisons Nassim, ultra-luxury residential, Singapore • Artyzen Hotel (No. 9 Cuscaden Road), Singapore • Tianjin South High Speed Rail Integrated Development, China
Projects under Planning • Kunming South High Speed Rail Integrated Development, China
15 Property Presence
1 Beijing • Tongzhou Integrated Development • Shun Tak Tower / Artyzen Habitat, Dongzhimen 2 Tianjin • Tianjin South HSR Integrated Development
1 2 3 Shanghai • Artyzen Habitat Hongqiao 3 • YaTi by Artyzen Hongqiao 4 • Suhe Bay Mixed-use Development • NEW BUND 31, Qiantan 6 5 4 Kunming • Kunming South HSR Integrated Development 5 Macau • Nova City Phase I-V 7 • One Central 6 Hengqin • Hengqin Integrated Development 7 Singapore • Artyzen Hotel, No. 9 Cuscaden Road • TripleOne Somerset • Park Nova 16 • Les Maisons Nassim Projects Completed with Recent Sales
Nova Grand (Nova City Phase V) TripleOne Somerset (Shareholding: Residential – 71%, Commercial – 50%) (Shareholding: 100%) Taipa, Macau 111 Somerset Road, Singapore
• Residential, commercial • GFA: 2.3M sf (residential), 655K sf (Nova Mall) • Premium commercial • ~1,700 residential units • 766,550 sf GFA • Completed in late 2018 Latest update: Latest update: • Rental performance remained strong despite • ~80% residential units sold as at FY20 the pandemic. • Nova Mall • Acquired the remaining 30% interest for Sold 50% stake to ADIA in 2018, generating disposal SGD 115M in May 2020 gain of HKD 1.3B in FY18 • Asset enhancement concluded in 1Q20 Anchor tenants: IKEA, CGV, Toys ‘R’ Us • Retail podium soft-opened in Mar 2019 60% of space has opened for business as at FY20 90% of floor area has been leased out as at FY20
17 Projects Under Development
Hengqin Integrated Development (Shareholding: 100%)
Hengqin, Zhuhai, China
Location advantages
• Macau Light Rail Transit, Guangzhou-Zhuhai Intercity-Rail, Hengqin Light Rail
• Connected to cross- border facility which opened in Aug 2020
• Macau Government to relocate its Cotai Frontier to the Hengqin Border
• Office, retail, serviced apartments and hotel Latest update: • GFA: 135,550 sm (retail: 32%, office: 31%, • 422 of 426 available units were sold in first 2 days in serviced apartments: 25%, hotel: 12%) Aug 20. • Expected completion: 2021(resi), 2022 (office, • Acquired the remaining 30% interest for RMB 928M in retail and hotel) Dec 2020
18 Projects Under Development
Beijing Tongzhou Integrated Development (Shareholding: 24%)
Tongzhou District, Beijing, China
Location advantages
• Tongzhou set to become an important business district in Beijing
• Beijing Government commenced relocation of their offices to Tongzhou in early 2019
• Directly connected to subway interchange station and bus interchange
• Located on the Grand Canal
• Office, retail and serviced apartments Latest update: • GFA: 300,000 sm (retail: 43%, office: 40%, • Disposed Phase 2 (prev. 19.35% shareholding in residential: 17%) phase 2) for RMB 978M in Dec 2020 • 3 towers • Substructure works in progress • Expected completion: 2023 • Pre-sale of apartments in 2H21
19 Projects Under Development
Shanghai Suhe Bay Mixed-use Development (Shareholding: 50%)
Suhe Bay, Jingan District, Shanghai, China
Location advantages
• Jingan is within the core business districts of Shanghai
• Iconic super high-rise 200m office tower
• Direct connection to Tian Tong Road subway station served by Metro Lines 10 and 12
• Close proximity to major tourism destinations such as the Bund and the People’s Square
• Office, commercial and residential Latest update: • GFA: 329,000 sm (office: 38%, commercial: 24%, • 221 of 224 units were sold residential: 7%, carpark & others: 31%) • Construction in progress • North side (112,000 sm) for sale, • Retail component to be managed by CR Land south side (240,000 sm) for lease under one of its brands • Expected completion: From 2021 by phases
Disclaimer: Computerized renderings of the Shanghai Suhe Bay Project and nearby area only and do not illustrate the final appearance, for reference only. 20 Projects Under Development
NEW BUND 31 (Shareholding: 50%)
Qiantan District, Pudong New Area, Shanghai, China
Location advantages
• Qiantan is positioned as Shanghai’s “2nd Lujiazui”
• Directly connected to Orient Sports Center metro station, subway lines 6, 8 and 11
• ~30 minutes to CBD
• Office, retail, hotel, art and cultural Latest update: • GFA: 140,500 sm (office: 50%, retail: 15%, • Superstructure works for the hotel and the Performing Art hotel: 14%, art & cultural: 21%) Center are in progress • Expected completion: 2023 • 5-star hotel (~200 rooms) to be managed by Artyzen • Arts and cultural centre to include a concert hall and other multi-purpose halls seating ~4,000
21 Projects Under Development
Tianjin South High Speed Rail Integrated Development (Shareholding: 30%)
Tianjin South High Speed Rail (“HSR”) Station, China
Location advantages
• By HSR: 30 mins to Beijing South Station, 4 hours to Shanghai Hongqiao Station
• Tianjin is strategically located within the “Jing-Jin-Ji” megalopolis
• One-stop regional healthcare and commercial hub Latest update: • General hospital, eldercare facilities, apartments, retail and • Superstructure works in progress hospitality • 330,000 sm GFA • Expected operation: 2023
22 Projects Under Development
Park Nova (Shareholding: 100%) Our projects in Singapore Orchard Boulevard, Singapore
• Luxury residential Les Maisons Nassim • 142,000 sf GFA • 51 simplex units & 3 penthouses • Pre-sale: 1H21 • Expected completion: 2023
Les Maisons Nassim (Shareholding: 100%) Nassim Road, Singapore
• Ultra-luxurious low-rise residential • 102,000 sf GFA • 8 simplex units, 4 duplex units & 2 penthouses • Pre-sale: 2021 • Expected completion: early 2023
23 Projects Under Planning
Kunming South High Speed Rail Integrated Development (Shareholding: 30%)
Kunming South High Speed Rail (“HSR”) Station, China
Location advantages
• By HSR: 6 hours to Guangzhou, 10 hours to Beijing, 11 hours to Shanghai
• Link to Trans-Asian HSR network
• One-stop regional healthcare and commercial hub Latest update: • Hospitality, medical care, eldercare, MICE and retail • Construction began in 4Q20 • 550,000 sm GFA (subject to authorities’ approval) • Expected operation: 2024
24 Investment Property Portfolio
Average occupancy Location Shareholding Lettable area (sf) (FY20) Macau Nova Mall (retail) Taipa 50% 417K Nearly 90% leased One Central Shopping Mall (retail) Macau Peninsula 51% 200K 92% Shun Tak House (retail) Macau Peninsula 100% 28K 100% Hong Kong Shun Tak Centre Portfolio - Shun Tak Centre 402 (retail) - 100% - 29K - 26% - Shun Tak Centre A Shares (retail) Hong Kong - 55% - 214K - Acquired in Jun 20 - Shun Tak Centre A shares (office) - 55% - 14K (GFA) - Acquired in Jun 20
The Westwood (retail) Hong Kong 51% 158K 89% liberté place (retail) Kowloon 64.56% 42K 99% Chatham Place (retail) Kowloon 51% 47K 47% China Shun Tak Tower (office) Beijing 100% 230K 84% Shun Tak Business Centre (office & retail) Guangzhou 60% 369K 95%
Nova Mall Chatham Place
• Lifestyle mall unique to Macau • A renowned • Anchor tenants: IKEA, CGV, kindergarten group as Toys ‘R’ Us anchor tenant
25 Hospitality Hospitality Division Performance and Prospects
Division Operating Profit FY20 performance (HKD’ million) YoY • Loss in adjusted segment results widened to (35) (220) (548) Change HK$617 million from HK$251 million in FY19 as FY18 FY19 FY20 -149% 1) travel restrictions brought sharp decline in revenue, forcing operations to shift focus towards domestic markets; and 2) impairment losses of HK$319 million on certain hotel properties were recognized
• Despite pick up in hotel occupancy in May 2020 for China and Macau hotels, sporadic Adjusted Segment Results* outbreaks in subsequent months disrupted the (HKD’ million) pace of recovery: (63) (251) (617) YoY Change FY18 FY19 FY20 -146% Prospects • Border reopening is still largely uncertain • Continue to streamline pre-opening expenses in order to navigate through the exceptionally challenging environment • 5 hotels (in Shanghai, Hengqin and Singapore) are under planning and development with expected openings from 2021 to 2023
27 * Adjusted segment results = segment results + share of results of associates and joint ventures
Hotel Portfolio
HK SkyCity Marriott Hotel Mandarin Oriental Macau Grand Coloane Resort Artyzen Habitat (Shareholding: 70%) (Shareholding: 51%) (Shareholding: 34.9%) Dongzhimen Beijing (Shareholding: 100%)
Hong Kong One Central, Macau Coloane, Macau Dongzhimen, Beijing Peninsula, Macau
• 5 stars • 6 stars • 5 stars • 138 rooms
• 658 rooms • 213 rooms • 208 rooms • Opened in Sep 17
• 30% occupancy • 21% occupancy • 43% occupancy • 53% occupancy (FY20) (FY20) (FY20) (FY20)
• Non-gaming hotel • Managed by AHG • Managed by AHG
• Rebranded from Westin Resort Macau in 2014
28 Hotel Portfolio
MixC Hotel Project No. 9 Cuscaden Road - Singapore (Shareholding: 100%) (Shareholding: 100%)
MixC, Hongqiao District (Minhang), Shanghai, Orchard area, Singapore China
Artyzen Habitat YaTi by Artyzen Hongqiao Shanghai Hongqiao Shanghai
• Being developed into a 5-star hotel (~142 rooms)
• Proximity to Orchard MRT and future Orchard Boulevard MRT (2021) • 303 rooms • 188 rooms
• To be managed by AHG • Official opening in • Opened in Sep 2018 Apr 2019 • Superstructure works in progress
• 49% occupancy (FY20) • Rebranded from • Expected opening: mid-2022 citizenM with • Managed by AHG management handed
to AHG in Sep 2020
29 Hotel Management
Expected No. of Hotel Location Artyzen Hospitality Group Opening1 Rooms Branded (AHG) Artyzen Grand Lapa 416 Macau The Group’s branded hotel Artyzen Habitat* 138 Dongzhimen, Beijing management company with Opened a collection of its own luxury Artyzen Habitat* 188 Hongqiao, Shanghai hotel brands catering to YaTi by Artyzen* 303 Hongqiao, Shanghai different lifestyles Artyzen Habitat 246 Qiantan, Shanghai The Shang by Artyzen 210 Qiantan, Shanghai 2021 Artyzen Hotel 305 Lingang New City, Shanghai Artyzen Habitat 364 Lingang New City, Shanghai Serviced apartments 128 Lingang New City, Shanghai Artyzen Habitat* 230 Hengqin, Zhuhai • Hotels under AHG’s management: Artyzen Habitat 378 Yuelai, Chongqing Artyzen Habitat 212 Taopu Smart City, Shanghai White-label 2022 Artyzen Habitat Taopu Smart City, Shanghai 162 Hotel Location Serviced Apartment Grand Coloane Resort* Macau Artyzen Habitat 160 Suzhou Ka’anapali Beach Hotel Maui, Hawaii Artyzen Hotel* 142 Singapore The Plantation Inn Maui, Hawaii Artyzen NEW BUND 31* 202 Qiantan, Shanghai 2023 5-star, 4-star and 982 Tianjin select-service hotels2, * 5-star, 4-star and 2024 1,152 Kunming select-service hotels2, * * Owned by Shun Tak 1 Expected opening dates are subject to market conditions 30 2 To be managed by Nexus Hospitality Management Limited which is owned by Perennial Management Investment Holdings Private Limited and AHG Transportation Transportation Division Performance and Prospects
Division Operating Profit FY20 performance (HKD’ million) • Adjusted segment results turned positive to YoY 246 HK$18 million in FY20 mainly contributed by the Change disposal gain of HK$396 million on STCTS +178% restructuring 95 • Closure of sea borders since Feb 2020 brought a (122) complete standstill to TurboJET, which operated for only 34 days FY18 FY19 FY20 • Golden Bus only operated with restricted frequency Cost reduction measures Adjusted Segment Results* • Managed variable costs, reduced fixed costs, (HKD’ million) and implemented pay cuts with furlough leave YoY • Operating costs were reduced by 54% YoY 255 Change +115% Prospects • Long road to recovery (116) 18 • New programs to rationalize existing fleet and FY18 FY19 FY20 manpower structure are expected in 2021 • STCTS restructuring (completed in Jul 20) – Further integrates ferry and cross-border coach businesses, setting up the operation for recovery * Adjusted segment results = segment results + share of results of associates and joint ventures post-COVID-19
32 Connecting the Greater Bay Area
• Well-knitted land-and-sea transportation network within the Greater Bay Area (GBA) in support PRD of the Central Government’s GBA Population: 57M development plan Macau Shenzhen (Outer Harbour + International Airport • Sea – TurboJET / TurboJET Airport Pac On) Service (Cross-boundary ferry service) Shekou HZM Bridge Macau/Zhuhai • Land – Shun Tak & CITS Coach / Port Tuen Mun HZM Bridge Coach / TurboJET Cross Kowloon Border Limo / HK-MO Express / Macau HK Airport Direct Hong Kong Zhuhai Airport Hong Kong HZM Bridge International Hong Kong Airport Port
PRD Pearl River Delta TurboJET HZM Bridge Coach / TurboJET Cross Border Limo / HK-MO Express / Macau HK Airport Direct ST-CITS Coach 33 Sea – TurboJet
• JV with China Travel International Investment Hong Kong Ltd (CTII) providing passenger ferry services
• Largest service provider of high speed passenger ferries in the region providing 24-hour services
• Daily sailings between Macau, Hong Kong (including Hong Kong International airport) and GBA regions
• Operates the largest repair and maintenance shipyards in the PRD for high-speed vessels with 400 professional engineers and technicians
34 Land
Shun Tak & CITS Coach (Macau) HZM Bridge Services
• JV with China International • Participation in a consortium to operate HZM Bridge Travel Services Macau Ltd Coach (“Golden Bus”) between Hong Kong and (CITS) Macau Port on HZM Bridge
• Cross-border coach business • TurboJET Cross Border Limo: personalized door-to-door between Macau and cities in land transport between Hong Kong and Macau the PRC, and local rental business in Macau • HK-MO Express: cross-border coach services between selected destinations in Hong Kong and Macau • Operates a fleet of 141 vehicles • Macau HK Airport Direct: shuttle service between Hong Kong International Airport and Macau Port on HZM Bridge
Zhuhai
Hong Kong Hong Kong- Zhuhai-Macau Bridge Macau
35 Investment Investment Division Performance and Prospects
Division Operating Profit (HKD’ million) YoY FY20 performance Change 166 • Mainly contributed by STDM’s dividend, this +24% division recorded an adjusted segment results of 134 HK$171 million, a 18% increase YoY 97
Prospects • Shun Tak has formed an alliance with Fok Foundation in early 2019. The parties in the FY18 FY19 FY20 alliance together holds a majority stake of ~53% Adjusted Segment Results* in STDM. (HKD’ million) YoY • STDM to pay bi-annual dividend 171 Change 145 +18%
105
FY18 FY19 FY20
* Adjusted segment results = segment results + share of results of associates and joint ventures
37 STDM
15.8%
STDM, a private company in Macau, has investment interests in different parts of the STDM world, e.g., in Macau, Mainland China and Portugal Effective interest: ~8% 54.03%
100%
SJM Resorts is one of six gaming concessionaries licensed by the Macau SAR SJM Resorts Government to operate 38 casinos in Macau Appendix
Corporate Milestones
2012 & 2013 2016 2017 2018 Set foot in China Set foot Opening Launched HSR property market; in Singapore market; of the 1st healthcare mixed-used
development of acquired No. 9 Artyzen Habitat hotel developments in China; to 2011 2011 property project in Cuscaden Road hotel in Dongzhimen, develop Park Nova and Les onwards Tongzhou, Beijing project Beijing Maisons Naissim in Singapore
2000 2003 2005 2006 2008 2010
- Completed the Opening of Acquired land Included in MSCI Set foot in HK Opening of New Belcher’s, Hong SkyPier, Hong for One Central HK Index & hospitality Mandarin
Kong Kong development in Hang Seng market; opening Oriental Macau 2010 2000 Macau MidCap HK of SkyCity
Index Marriott
1984 1993 1997
90’s Opening of Opening of Set foot in Macau property
- Mandarin Grand Coloane market; completed Nova
Oriental Macau Resort, Macau Taipa Gardens
80’
1961 1972 1973 70’s
- Shun Tak Shun Tak Holdings Listed on the SEHK
0’ Shipping was Limited was Main Board
6 established established
40 Group Structure SHUN TAK HOLDINGS LIMITED
Property Development & Investment Transportation Hospitality Investments
Property Property Artyzen Property PRC Property Development Under Coach Hotel Hospitality Financial Investment & Ferry Services Development with Recent Development Services Ownership (Hotel Investment Management Sales & Planning Management)
Key Projects Key Projects Key Projects Key Properties Key Routes Key Routes Key Hotels Key Brands Key Investments i. Hengqin i. Nova Grand i. Park Nova i. Nova Mall, i. Hong Kong – i. Hong Kong - i. Hong Kong i. Artyzen Habitat i. STDM (~15.8% integrated dev. (Phase V of Singapore Macau Macau routes Zhuhai-Macau SkyCity Marriott - Dongzhimen effective ii. Beijing Tongzhou Nova City), ii. Les Maisons ii. One Central Mall, ii. Kowloon – Bridge Coach Hotel Beijing interest) - Hongqiao integrated dev. Macau Nassim, Macau Macau routes Bus ii. Mandarin ii. Management of Oriental Macau Shanghai iii. Shanghai Suhe ii. TripleOne Singapore iii. Shun Tak House, iii. Tuen Mun – ii. TurboJET Cross - Hengqin Zhuhai Kai Tak Cruise iii. Grand Coloane Bay mixed-use Somerset, Macau Macau routes Border Limo (2022) Terminal (20% Resort, Macau dev. Singapore iv. Shun Tak Centre iv. Hong Kong iii. HK-MO Express - Qiantan interest) iv.Artyzen Habitat Shanghai (2021) iv. NEW BUND 31, iii. Chatham Gate, 402, Hong Kong Airport – Macau iv.Macau HK Dongzhimen iii. Macau Matters Qiantan, Hong Kong v. The Westwood, Routes Airport Direct - Lingang Company Beijing Shanghai (2021) Shanghai iv. Suhe Bay Hong Kong v. Shenzhen v. Bus services v. Artyzen Habitat - Yuelai Limited (100% v. Tianjin South High residential units vi. liberté place, Airport – Macau within Macau Hongqiao Chongqing owned) Speed Rail v. Hengqin Hong Kong routes vi.Cross-border bus Shanghai (2022) integrated dev. Residential units vii. Chatham Place, vi. Shekou – services vi.YaTi by Artyzen - Taopu Shanghai vi. Kunming South Hong Kong Macau routes between Hongqiiao (2022) High Speed Rail viii.Shun Tak Tower, Macau and Shanghai ii. Artyzen Hotel vii.Artyzen Habitat, - Lingang integrated dev. Beijing cities in the PRC Shanghai (2021) Hengqin Zhuhai ix. Shun Tak Business - Singapore (2022) (2022) Centre, - Qiantan Guangzhou viii.Artyzen Hotel, Shanghai (2023) Singapore (2022) iii. YaTi by Artyzen ix. Artyzen NEW Hongqiao BUND 31 Shanghai Shanghai (2023) iv. Artyzen Grand x. Hotels at Tianjin Lapa Macau HSR project (2023) xi. Hotels at Kunming Non-branded HSR project i. Grand Coloane (2024) Resort, Macau ii. Ka’anapali Beach Hotel, Maui, Hawaii iii. The Plantation Inn, Maui, Hawaii
41 Share Information
Share Price and Trading Volume Trading Data (as at 29 Jun 21) Share price (HK$) $2.47 600 4.00 52-week range (HK$) $2.25 - $3.13 3.50 500 Number of shares 3.021B 3.00 400 2.50 Market cap (HK$) $7.5B 300 2.00 Dividend yield NA 1.50 200 1.00 100 (HK$) Price Share Trading Volume ('M) Volume Trading 0.50
0 0.00 Index Constituent
Jan-17 Apr-17 Jul-17 Oct-17 Jan-18 Apr-18 Jul-18 Oct-18 Jan-19 Apr-19 Jul-19 Oct-19 Jan-20 Apr-20 Jul-20 Oct-20 Jan-21 • Hang Seng SmallCap Index
• Hang Seng Sustainability Index Trading Volume Share Price • Hang Seng Stock Connect HK Index
• MSCI Hong Kong (Small Cap) Index
42 Other Ancilliary Businesses
Property Management Hospitality Kai Tak Cruise Terminal Management • Professional property • Management of Macau • 20% interest; partnership management services Tower Convention & with Worldwide Flight in Hong Kong and Entertainment Centre Services Holdings and Macau Royal Caribbean Cruises • Travel & MICE (ticket Limited • Property cleaning reservation, baggage service logistics, local • Responsible primarily for transportation, meet & commercial leasing of • Institutional laundry greet) the commercial area of services the Terminal
• Awarded contract comprising of a 10-year tenancy agreement since 2013
43 Macau Property Statistics
Macau Hong Kong Singapore Macau 2019 2018 Difference GDP per capita No. of Transacted US$80,378 US$48,980 US$62,673 8,277 10,822 -23.5% (2019) Units Wage Growth Value of Transactions 6.3% 2.8% 2.8% 51,049 69,426 -26.5% (2019) (MOP Million) Source : DSEC, HKIHRM, HKTDC, HK Census and Statistics Department, Singapore Department of Statistics, Ministry of Manpower Singapore
Max mortgage level Hong Kong Macau Zhuhai Hong Kong Macau Zhuhai
Foreigner 40 - 50% ~40 - 50% P-2.9% - P-2.75% - Mortgage Rate 4.9% - 5.39% 50% - 70% P-2.5% P-2.25% Local 50 - 60% ~50 - 70%
Macau residential supply has in the recent past been limited HK and Macau residential property prices MOP psm Units in Construction Completed Units Centa City Leading Index (HK) 200 150,000 25,000 Transacted units Average transacted price (Macau) 20,000 150 100,000 15,000 100 10,000 50,000 50 5,000 - 0 0 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2004 2006 2008 2010 2012 2014 2016 2018 Notes: 1) In Hong Kong, prime rate ranges from 5% to 5.5% as of 17 Feb 20. 2) In Macau, prime rate of CCB(Macau) is 5.25%, and that of BCM Bank is 5.375 as of 17 Mar 2019. Local maximum mortgage level for property value over MOP 8.0m is 50%, and 60% for property value between MOP 6.0-8.0m subject to a ceiling of MOP 4.0m, 70% for property value less than MOP 6.0m subject to ceiling of MOP 3.6m. 3) In Zhuhai, mortgage level and rate are subject to certain limitations as of 12 Mar 2018.
44 Anti-speculative Measures
Hong Kong
Max LTV (loan to value) ratio* for those who have not borrowed or guaranteed Stamp Duty for First-time buyers (enacted on 1 Special Stamp Duty (SSD) (enacted on 27 Oct 12) other outstanding property mortgage Apr 10) loans (enacted on 19 May 17)
Property Consideration Stamp Duty Rates Holding period of the Property Stamp Duty Rates (HKD) HK Resident Non-HK Resident Below $2M $100 < 6 months 20% >$2M - ≤$3M 1.50% >$3M - ≤$4M 2.25% > 6 months ≤12 months 15% >$4M - ≤$6M 3.00% 50% - 60% 40% - 50% >$6M - ≤$20M 3.75% > 12 months ≤36 months 10% >$20M and above 4.25% * Effective 16 Oct 19, first-time buyers with Buyer's Stamp Duty (BSD) for Non-HK permanent Stamp Duty for Non-first-time buyers completed properties of value ≤HK$8M residents (enacted on 5 Nov 16) eligible for Mortgage Insurance Programme (enacted on 27 Oct 12) is subject to max LTV of 80-90%. Stamp Duty Rate Stamp Duty Rate 15% 15% Macau Max LTV (loan to value) ratio Stamp Duty Special Stamp Duty (SSD) Additional Stamp Duty (ASD) (enacted on 5 May 17) (enacted on 1 Jan 09) (enacted on 14 Jun 11) Property Stamp Special Stamp Holding Period Enacted on Consideration Duty Duty Enacted on 7 Feb 18 Macau Resident of the Property 30 Oct 12 Non- (MOP) Rates (SSD) rates Macau Non-first- First-time Resident time Below $2M 1% 10% on top of • 5% for 2nd property on top of buyers < 12 months 20% buyers existing stamp existing taxes Completed residential units duty for non- • 10% for 3rd property and >$2M - ≤$4M 2% 50%-90% 40%-70% 30%-60% Macanese and thereafter on top of existing >12 months Unfinished housing units 10% corporate buyers taxes >$4M and above 3% ≤ 24 months 50%-70% 40%-60% 30%-40%
45 IR Contact
[email protected] www.shuntakgroup.com
Penthouse 39/F, West Tower, Shun Tak Centre, 200 Connaught Road Central, Hong Kong