2018 Final Result Presentation and Corporate Update
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2018 Final Result Presentation and Corporate Update October 2018 Lai Sun Group © All rights reserved Contents Contents 1. Group Overview 2. Property Operations Update 3. 2018 Final Result Highlights Appendices I. Summary of Properties in HK & London II. Summary of Properties in the PRC III. Hotel and Restaurants Operations IV. Media and Entertainment Operations V. Summary Financials L AI S UN G ROUP 麗新集團 2 Lai Sun Group © All rights reserved 1. Group Overview L AI S UN G ROUP 麗新集團 Lai Sun Group © All rights reserved Introduction to the Lai Sun Group The Group was founded by Mr. Lim Por-Yen who migrated from Guangdong in 1930’s and started business as a garment Diversified into Hong Kong manufacturer after the war property development through Lai Sun Development Company Limited since the 1980’s Expanded into PRC property development, hotel, media and entertainment businesses since the 1980’s Owns a portfolio of quality commercial, retail Actively involved in hospitality, and residential media and entertainment developments in Hong businesses Kong and the PRC L AI S UN G ROUP 麗新集團 4 Lai Sun Group © All rights reserved Chairman of Lai Sun Group Dr. Lam Kin Ngok, Peter . Standing Committee Member of the 13th CPPCC National Committee . Doctorate of the Academy honoris causa awarded by The HK Academy for Performing Arts . Chairman of Hong Kong Tourism Board . Chairman of HK Chamber of Films Limited . Member of Hong Kong Trade Development Council . Honorary Chairman of Motion Picture Industry Association Limited . Extensive experience in property development & investment, hospitality and media & entertainment businesses L AI S UN G ROUP 麗新集團 5 Lai Sun Group © All rights reserved Group Structure # The Lam Family Group Market Capitalisation : HK$18.2 billion 45.53%* (42.37%**) Lai Sun Garment (International) Limited (“LSG”) Market Capitalisation# HK$4.4 billion Investment Holding HK Stock Code: 191 Total Assets: HK$50.7 billion 56.18%* (48.04%**) Lai Sun Development Company Limited (“LSD”) # HK$8.1 billion Property Development & investment in HK & Overseas Market Capitalisation Hotel Management & Hospitality HK Stock Code: 488 Total Assets: HK$46.7 billion 77.76%* (38.38%**) eSun Holdings Limited (“eSun”) Market Capitalisation# HK$1.9 billion Media & Entertainment and Cinema Operations in HK and the PRC HK Stock Code: 571 Total Assets: HK$32.0 billion 67.56%* (51.09%**) 50.60%* (47.87%**) Media Asia Group Holdings Limited Lai Fung Holdings Limited (“LFH”) Media and Entertainment Property Development & investment in the PRC HK Stock Code: 8075 HK Stock Code: 1125 Market Capitalisation#: Total Assets: Market Capitalisation#: Total Assets: HK$0.2 billion HK$1.2 billion HK$3.6 billion HK$28.2 billion *Latest shareholding includes interests held by certain directors at LSD and eSun levels. LSG’s corporate interest in LSD is 56.10% and LSD’s corporate interest in eSun is 77.38% **Shareholding as at 31 July 2012 includes interests held by certain directors at LSD and eSun levels # As at 31 July 2018 L AI S UN G ROUP 麗新集團 6 Lai Sun Group © All rights reserved 2. Property Operations Update L AI S UN G ROUP 麗新集團 Lai Sun Group © All rights reserved Strategy Update Continue consolidation and preparing the platform . Further accretion of interest subject to the “creeper Strengthen Group consolidated provision” where applicable balance sheet Deferred tax written back in 31 July 2012 . Addition of new rental properties in the pipeline to strengthen NAV further Closed a number of fund raising/refinancing transactions Raise financing . Continue to optimise funding structure Raised a total of HK$15.4bn up to July 2014 LFH – conditional waiver approved; could JV with other Lai Sun group companies . HK – actively participating a number of tender Successful tender/auction processes - HK: Alto Residences, Hong Kong Ocean Park Marriott Hotel, 93 Pau Chung Street, . London – planning consent being granted by the City Monti and Novi Build pipeline of London’s Planning and Transportation Committee - London: 107 Leadenhall, 100 Leadenhall and 106 Leadenhall . PRC – continually reviewing opportunities in - PRC: Hengqin Novotown (80/20 between LFH and eSun), Shanghai Wuli Bridge Shanghai, Guangzhou, Zhongshan and Hengqin project Growing rental income . Attributable rental GFA to be added in the next year Guangzhou Lai Fung Tower added to the rental portfolio Rental-focused or two Bought out minorities in SHHK Plaza, GZMF Plaza, Northgate Plaza and SHMF Plaza company ‒ HK : Ocean Park Marriott Hotel (c.366,000 sq.ft.) Soft-opening of Hong Kong Ocean Park Marriott Hotel on 29 Oct 2018 ‒ PRC : c.2.5 million sq.ft. Redevelopment of Northgate Plaza I, Northgate Plaza II and Hui Gong Building L AI S UN G ROUP 麗新集團 8 Lai Sun Group © All rights reserved Strengthen Balance Sheet Net Asset Value (in HK$’million) LSD LSG 31,159 26,600 24,358 Financial consolidation 22,663 20,775 19,128 19,837 completed 18,037 16,358 16,453 Concentrate asset base 13,796 12,576 11,959* 11,035 Stake accretion at steep 9,027 discount to book value 6,739** creating gains to strengthen balance sheet further 31 Jul 31 Jul 31 Jul 31 Jul 31 Jul 31 Jul 31 Jul 31 July 31 July 31 July 31 July 31 July 31 July 31 Jul 31 Jul 31 July 2011 2012 2013 2014 2015 2016 2017 2018 2011 2012 2013 2014 2015 2016 2017 2018 Deferred tax on property revaluation gains written back for LSG and LSD for the year ended 31 July 2012 Steady rental income growth strengthened NAV further Further accretion of interests at a discount may or may not occur and subject to the “creeper provision” under the Takeovers Code where applicable *As reported. The restated amount reflecting the adoption of certain accounting policies in 2012 was HK$13,464 million ** As reported. The restated amount reflecting the adoption of certain accounting policies in 2012 was HK$7,590 million L AI S UN G ROUP 麗新集團 9 Lai Sun Group © All rights reserved Fund Raising Secured resources for growth and removed refinancing risks Cumulative Fund Raising (in HK$’million) Oversubscription 2,200 3,000 6,550 9,280 11,400 13,649 13,729 13,939 14,568 15,377 (times) 809 LSG – CNY guaranteed notes**** 4.8 # # 1,940 1,940 LSD loan for TKO site 2.0 Total funds raised amounted 2,120 2,120 2,120 eSun – CNY guaranteed notes**** 1.7 Closed 809 809 to over HK$15.4 billion* 210 210 LSG – rights issue 80 210 across the Group 80 80 80 MAGHL – share placement 2,120 2,249 2,249 2,249 2,249 2,249 LFH – CNY senior notes** 3.6 3,550 3,550 3,550 3,550 3,550 3,550 3,550 Announced LFH – syndicated loan 1.5 3,550 Announced 2,730 2,730 2,730 2,730 2,730 2,730 2,730 LSD – US$ guaranteed notes*** 10.0 2,200 2,200 2,200 2,200 2,200 2,200 2,200 2,200 2,200 LSD – syndicated loan 2.8 2,200 LSG – club loan 800 800 800 800 800 800 800 800 800 Oct 2012 Nov 2012 Dec 2012 Jan 2013 Mar 2013 Apr2013 Jan 2014 Feb 2014 Jun 2014 July 2014 * Excluding proceeds of HK$5,809.1 million from over-subscription of rights issues, which was refunded to subscribers in February 2014 # Due to a smaller potion of land cost being refinanced ** CNY1,800 million (HK$2,249m equivalent) *** US$350m (HK$2,730m equivalent) **** CNY650 million (HK$809m equivalent) L AI S UN G ROUP 麗新集團 10 Lai Sun Group © All rights reserved Build Pipeline - Alto Residences (LSD-50%, HK) – Nov 2012 Site area: 229,300 sq.ft. Development GFA: 573,300 sq.ft. - 458,900 sq. ft. for residential use - 114,400 sq.ft. for commercial use Usage : residential and commercial 605 residential units Occupation Permit being issued in May 2018 Certificate of Compliance being issued in September 2018 Handover of pre-sold units in progress Up to 14 October 2018, the Group has pre-sold 541 units with saleable area of approximately 304,700 square feet at an average selling price of approximately HK$15,700 per square foot. L AI S UN G ROUP 麗新集團 11 Lai Sun Group © All rights reserved Build Pipeline - Hong Kong Ocean Park Marriott Hotel (100%-LSD, HK) – May 2014 LSD being selected as the most preferred proponent in Oct 2013 and being awarded by Ocean Park for the Ocean Hotel project in May 2014 6 storeys, 471 guest rooms Total GFA: 365,974 sq.ft. Marriot as hotel operator and manager Construction completed Hotel license being issued in October 2018 Soft opening being scheduled on 29 October 2018 L AI S UN G ROUP 麗新集團 12 Lai Sun Group © All rights reserved Build Pipeline - 93 Pau Chung Street (100%-LSD, HK) – April 2014 On 29 April 2014, LSD won the contract for Urban Renewal Authority’s residential-cum- commercial development of San Shan Road/Pau Chung Street project in Ma Tau Kok by tender Site area: approx. 12,600 sq. ft. Gross floor area: approx. 111,400 sq.ft. - 94,500 sq. ft. for residential use - 16,900 sq.ft. for commercial use 209 residential units Expected total development cost: HK$1.0 billion Occupation Permit being issued in July 2018 Application for the Certificate of Compliance in progress Pre-sale of 209 residential units completed Up to 14 October 2018, the Group has 5 out of 7 commercial units with saleable area of approximately 14,000 square feet at an average selling price of approximately HK$23,000 per square foot.