9 July 2010
Investor Newsletter Issue 22————20102010
Shui On Land (272.HK)
Shui On Land Limited (“SOL”) has achieved RMB 1.5 billion contracted sales for a total Gross Floor Area (“GFA”) of approximately 101,000 sq.m. from January to June 2010. The two major launches were Wuhan Tiandi in January, and Chongqing Tiandi in May. Other contributors were the sales of the remaining units in
Shanghai Taipingqiao (“TPQ”) Casa Lakeville and Knowledge Innovation Centre (“KIC”). Together with
RMB2.6 billion of contracted sales brought forward from 2009, the locked-in contracted sales amounting RMB4.1 billion. In the second half of 2010, new residential launches will commence on 6 projects as scheduled, these Contracted include: Shanghai TPQ Casa Lakeville Towers 3, 5-8, Shanghai Rui Hong Xin Cheng Phase 3 (Lot 4), Sales Chongqing Tiandi Phase 2, Wuhan Tiandi Phase 3, and the maiden launch in Foshan Lingnan Tiandi and Dalian Tiandi. The estimated total available for sale GFA is approximately 300,000 sq.m..
Chongqing Tiandi Residential : The Riviera Phase 2 launched two more towers (T6 and T11) on 23 May 2010. A total of 127 units, or 56% of the Recent Property Sales & ASPs launched units, were subscribed for sale on the date of launch with ASP of Chongqing Tiandi Residential average selling price (“ASP”) reaching RMB11,900 per sq.m.. The success The Riviera Phase 2 (RMB/sq.m.) can be attributed to the opening of the restaurants and entertainment 11,900 facilities, man-made lakes and the inter-connecting road between Jie Fang 10,200 Bei, the traditional commercial area of Chongqing. With more branding and 6,700 promotional activities being organized, Chongqing Tiandi is gaining recognition as a new landmark for trendy and up-market lifestyle in
Chongqing. 2009 Jan10 May10 (Phase 1) (Phase 2 T1-5) (Phase 2 T6&T11) Wuhan Tiandi Residential : The Riverview Phase 2 (Lot A6) launched in January 2010 was well received by the market. Of the 273 units launched, ASP of Wuhan Tiandi Residential 250 units, or 92%, have been contracted for sale. ASP was RMB18,000 The Riverview Phase 2 (RMB/sq.m.) per sq.m., with the highest selling price achieving RMB30,000 per sq.m.. 18,000
13,400 14,400 Retail Stores : A portion of street front shops in Lot A6 apartments were sold at a price ranged from RMB47,000 per sq.m. to RMB69,000 per sq.m. in May 2010. 2008 2009 2010 (Phase 1 A9&A7) (Phase 2 A10&A8) (Phase 2 A6) Notes: 1) The figures quoted have not been audited. 2) Contracted sale figures and ASP are calculated before business tax. 3) The ASP of Chongning Tiandi quoted is calculated on a Net Floor Area basis, a general practice in Chongqing.
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SOL Investor Newsletter 9 July 2010
Sales update in TPQ Casa Lakeville : Recent transacted prices for a few remaining units sizes between 238 sq.m. and 426 sq.m. in Casa Lakeville Tower 1 and Tower 2, with Xintiandi & man-made lake Property facing, were sold in the range of RMB116,000 per sq.m. in the lower zone to RMB 155,000 per sq.m. in Sales & the higher zone. The last few apartments in Tower 9 of the sizes between 90 sq.m. and 138 sq.m. in ASPs higher zone facing Fuxing Zhong Road were sold with an ASP of RMB85,000 per sq.m..
New show flat for “The Manor” (Towers 3, 5 to 8) of Casa Lakeville will be opened in third quarter : A total of 7,000 sq.m., or 18 units of the size ranging from 360 sq.m. to 700 sq.m. low-rise duplex and penthouse with roof top garden are planned to be launched in the second half of the year.
Xintiandi and Corporate Avenue : Both virtually leased at
99% occupancy rate as of 31 May 2010. New ‘Xintiandi Style’ Shopping Mall ininin Lot 113 : Scheduled for completion in the fourth quarter, it is directly connected Leasing Status to the new metro station named after Xintiandi. Xintiandi & Corporate Avenue Approximately half of the space have already been pre- leased to the internationally renowned brands, as well as young and local designer brands.
Relocation and Site Clearance Status
Lot 127127: 90% of the households has been relocated as of the end of June 2010, compared to 82% at the end of 2009. Lot 126126: 98% of the households has been relocated. Site clearance has commenced and the construction of Corporate Avenue Phase 2 together with the podium of shopping area is scheduled to begin immediately after the closing of Shanghai World Expo. Lot 116116: First round consultation under the new relocation scheme is scheduled to start in the fourth quarter of the year. 2
SOL Investor Newsletter 9 July 2010
Promotional Activities in Xintiandi The Mini Expo currently being held in Xintiandi from May to Mini Expo Activities October 2010 as a tribute to the current Shanghai World Expo 2010. Our marketing team has invited various nation’s culture bureaus, tourism boards, embassies, top universities and internationally renowned brands to provide refreshing experiences for our visitors. to organize events with ingenious themes to ensure refreshing experiences in Xintiandi for our visitors arriving from all over the world. With the foremost intention to stimulate cultural exchange and understanding, it also promotes Shanghai’s international image as a multi-cultural Municipality, along with Shui On Land and Xintiandi being the benchmark of this.
The mascot of Shanghai World Expo, Haibao, visiting Xintiandi.
East and West Culture Mixing Week - Chinese Kun Opera
Lamborghini Day in Taipingqiao lake side
French Culture & Music Summer Festival - ‘Bonjour Xintiandi’
Shanghai World Expo Music Festival - “Listen respectfully to the voice of future power dedicate to Expo” Youth Bands from Yale University, Harvard University, Sydney Hong Kong Tourism Festival - Mascots from Disneyland Conservatorium and Imperials College, etc performing in Xintiandi. 3
SOL Investor Newsletter 9 July 2010
Property Delivery & Under-Construction
Phase 3 (Lot 8): Two towers of residential apartments have been completed and delivered to the customers in June. Phase 3 (Lot 4): Two towers of residential apartments are currently under-construction in accordance with schedule to launch in the fourth quarter of the year.
Relocation & Site Clearance Two towers in Lot 8 Property hand-over
Phase 3 (Lot 6): 97% of households has been relocated with the demolition of the old houses commenced. It is expected that construction will commence in 2011.
New Relocation Scheme: implemented by the Shanghai Municipal Government since late 2009, Lot 6 consists of two rounds of consultation with an open and transparent compensation scheme and relocation housing selection procedures. Positive feedback were received from the residents involved. With this successful experience, the city government agreed that the remaining sites including Lots 1, 2, 7, 9 & 10, and 167A & 167B will adopt this new relocation scheme as well.
Lot 3: Being the first site adopting this new relocation scheme, Lot 3 has done the second round of consultation on 15 April 2010 with over 77% of households signed the relocation agreements.
Open and transparent relocation procedures received major support from the residents.
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SOL Investor Newsletter 9 July 2010
Property Delivery & Under– Construction KIC Village R2 (Lot 77----7)7) has been handed over to customers in the second quarter.
Site C2 (Lot 55----5,5, 55----7,7, 55----8)8) : is currently under construction for office and retail use. The underground retail will be connected to the metro station upon completion in 2011.
Leasing Status KIC Plaza Phase 1 : the office area has achieved 99% of occupancy rate. KIC Plaza Phase 2 : has a total of 43,000 sq.m. GFA for office use and 7,000 sq.m. for retail use. It is expected to be completed by the end of 2010. Leasing is underway. Our target tenants include Hi-tech companies, software and on- line game development Scenic view of KIC Village companies. 5
SOL Investor Newsletter 9 July 2010
Promotional Activities
April to June : “Talk With Master” on creativity & innovation , jointly organized by KIC & Tongji University March: Digital Media Entrepreneurs visiting KIC Hub
May: ESPN X-Game June: Bay Area Council from USA set up their Shanghai Office in KIC
Promotional Activities
June: Hangzhou Music Festival was held in Xihu Tiandi
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SOL Investor Newsletter 9 July 2010
Property May: Chongqing Tiandi Residential Riviera Phase 2 (T6 & T11) Sales launched with strong take up rate and ASP achieved to RMB 11,900 per sq.m..
Completion of Amenities
Shark bar opening.
June: The man-made lake completion & water filling ceremony in May: Opening of Grand Theatre in Chongqing Chongqing Tiandi. It is opened to the public, providing a new area for leisure to the residents in Chongqing.
Support from Government & Banks
June: Mr. Michael F Geoghegan, CEO and Asia May: Mr. Bo Xilai, Party Secretary of Chongqing and city Chairman of HSBC visited Chongqing Tiandi. government officials visited Chongqing Tiandi.
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SOL Investor Newsletter 9 July 2010
Promotional Activities
June: Joint office leasing team formed with Yuzhong June: Mrs. Loletta Lo presenting the awards to the winners of District Government to capture new companies invest- Chongqing Tiandi Photography Contest during its opening ceremony. ing in Chongqing.
Cliff ng Buildi
Main Bu ilding
Higher Village
May: Musical Operas held in the Grand Theatre of Chongqing Tiandi. Lower Village
Grand Theatre
Virtually full occupancy rate for Higher and Lower Villages and 70% of pre-leasing rate of the Cliff Building. Pre-leasing has been com- menced for the Main Building. The theatre was opened for public viewing. June: The opening of Shark Aquarium Bar.
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SOL Investor Newsletter 9 July 2010
Property Over 90% of the units in The Riverview Phase 2 (Lot A6) of the Wuhan Tiandi residential were pre-sold. Sales We target to launch The Riverview Phase 3 (Lot A11 and A12) in late 2010.
Leasing Status
Phase 1 of the Wuhan Tiandi Commercial was 98% leased, and the occupancy rate for Phase 2 and 3 were further improved to over 80% leased.
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SOL Investor Newsletter 9 July 2010
Promotional Activities
June: World Cup Beer Festival
May: Charity Fair for Children Affected by HIV/AIDS
March & April : Participated in “Earth Hour” campaign and held exhibitions promoting environmental protection. April: Family Day, Arts & Lifestyle Sharing Events
April: American Jazz Music Night April: Social Dancing Competition 10
SOL Investor Newsletter 9 July 2010
Sales Centre June: The opening ceremony for sales office of Dalian Tiandi residential Phase 1 (Greenville) and the Kohler Art Festival.
Leasing Status
Target to deliver GFA 42,000 sq.m. office building in third quarter. Major tenants signed include IBM and Union Soft, etc.
Ambow Training School (GFA 112,000 sq.m.), the largest IT and software programming training institution in Asia, is due for opening in late 2010, providing training facilities to accommodate over 5,000 students and technicians in related fields.
IT Tiandi : Pre-leasing rate was over 50% so far. It is scheduled to be completed in 2011.
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SOL Investor Newsletter 9 July 2010
Sales June: Opening of sales centre in preparation for the market launch Centre of Phase 1 residential apartments and townhouses sales in the third quarter. Showflats are to be ready for viewing in August.
Restaurants & Entertainment Area
Lingnan Tiandi is under consturction and is scheduled to open for business before the Foshan Lingnan Tiandi Tourist Asian Games 2010. Information Centre is open.
Retail of Lot 1construction in progress. Hotel & Serviced Apartments
June: Marco Polo hotel management group was appointed to be the operator for Lot D hotel and serviced apartments.
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SOL Investor Newsletter 9 July 2010
Investor Relations
2009 Annual Results Announcement and Global Road Show Shui On Land announced its 2009 annual result on 15 April 2010. The turnover rose significantly to RMB6,758 million, profit attributable to the shareholders increased by 49% to RMB2,673million and GFA delivered was 242,300 sq.m. in 2009.
Mr. Vincent Lo, the Chairman and CEO, along with our senior staff, Mr. Louis Wong, MD; Mr. Daniel Wan, MD & CFO and Mr. Freddy Lee, MD of the Company presented the 2009 results and the Three-Year Plan during the press conference and analysts briefing. The Company is accelerating the development and targeting to deliver 1 million sq.m. per annum starting 2012. Subsequently, the management and IR team conducted a two week global roadshow in Hong Kong, Singapore,
Europe and U.S. to congregate with key shareholders.
QDII Investors Day in Shanghai On 10 May 2010, IR team with the support of Bank of China International, organized a QDII Investors Day for the PRC Qualified Domestic Institutional Investors (QDII) to familiarize with our senior management.
Over 20 investors partook in site visits to our KIC, Rui Hong Xin Cheng and TPQ projects in Shanghai to keep abreast with the current development progress, followed by a presentation on the 2009 results and the recent developments of our eight projects in six cities. Mr. Vincent Lo, Chairman & CEO and the senior management also shared our business strategies, the Three-Year Plan and views on the macro economic situation in China.
Investor Conferences participated in April to June 2010 IR team has joined ten Investor Conferences and has hosted over 100 one-on-one meetings with investors.
Nomura Chongqing Investors Forum Morgan Stanley HK Conference Credit Suisse Shanghai Forum Chongqing, 21-22 April, 2010 Hong Kong, 12 May, 2010 Shanghai, 23 June, 2010 Macquarie HK Property Conference CLSA China Forum Daiwa HKSE Conference Hong Kong, 26 April, 2010 Shanghai, 17-19 May, 2010 Tokyo, 28-29 June, 2010 Citigroup Asia Investors Conference Nomura Asia Investors Conference Singapore, 28 April 2010 Singapore, 7-8 June, 2010 UBS The Best of Asia Forum JP Morgan China Forum New York and London, 3-7 May, 2010 Beijing, 10-11 June, 2010
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SOL Investor Newsletter 9 July 2010
Better Communication with shareholders --- “Networking with Shareholders” session after AnnuaAnnuall General Meeting (‘AGM”) Since 2008, we initiated a “Networking with Shareholders” session after every Annual General Meeting. To provide an opportunity for our shareholders to share their concerns with our senior management. This year, Mr. Vincent Lo, Mr. Louis Wong, Mr. Daniel Wan and Mr. Freddy Lee, attended the session held in May 2010 in Hong Kong to discuss the business development strategies and to address our shareholders queries directly.
Appointment of Executive Director of Shui On Land Limited Mr. Freddy C.K. Lee was appointed as Executive Director of the Board and Managing Director of Shui On Land effective on 28 June 2010. Prior to the new appointment, Mr. Lee was the Managing Director of Shui On Development Limited, an executive arm of the group. Mr. Lee joined Shui On Group after his graduation and has had over 15 years of experience in construction management and 9 years in real estate project development in Hong Kong and Chinese Mainland. Mr. Lee will be responsible for the implementation of the Three-Year Plan. He is also the project director for Wuhan Tiandi and Foshan Lingnan Tiandi. Further details relating to Mr. Lee’s appointment could be found in the Company announcement.
Proactive Investor Relations Initiatives --- Implementation of Automated Email Alerts and MeetMeetinging & Site Visit Requests System Shareholders can now subscribe our automated email alert system to keep abreast of Shui On Land’s results announcement, press conference and analysts briefing webcasting, presentation material, press release, business and sales & leasing information, etc. In addition, a meeting and site visit request form is now available. For details, please visit the “IR Contact
Section” of our corporate website( http://www.shuionland.com ).
About Shui On Land Shui On Land (Stock Code: 272) is the flagship property development company of the Shui On Group in Mainland China. It has a proven track record in developing large-scale, mixed-use, city core integrated development projects. The Company has eight projects in various stages of development in prime locations of major cities, with a total land bank of gross floor area of approximately 13.0 million sq.m. The Company was listed on the Hong Kong Stock Exchange on 4 October 2006, the largest Chinese real estate company listed in that year. Shui On Land was included in the 200-Stock Hang Seng Composite Index Series and Hang Seng Freefloat Index Series in March 2007. For further information about Shui On Land, please visit our website: http://www.shuionland.com For investor relations enquiries, please send email to us at: [email protected]
Michelle Sze, Head of Investor Relations | Tel: +86 21 63861818 ext 310 | Email: [email protected]
Disclaimer The materials and information in the newsletter and other documents are for informational purposes only, and are not an offer or solicitation for the purchases or sale of any securities or financial instruments or to provide any investment service or investment advice.
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