Corporate Presentation
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Corporate Presentation Oct 2020 Disclaimer This presentation may contain forward-looking statements. Any such forward-looking statements are based on a number of assumptions about the operations of the Kaisa Group Holdings Ltd. (the “Company”) and factors beyond the Company's control and are subject to significant risks and uncertainties, and accordingly, actual results may differ materially from these forward-looking statements. The Company undertakes no obligation to update these forward- looking statements for events or circumstances that occur subsequent to such dates. The information in this presentation should be considered in the context of the circumstances prevailing at the time of its presentation and has not been, and will not be, updated to reflect material developments which may occur after the date of this presentation. The slides forming part of this presentation have been prepared solely as a support for discussion about background information about the Company. This presentation also contains information and statistics relating to the China and property development industry. The Company has derived such information and data from unofficial sources, without independent verification. The Company cannot ensure that these sources have compiled such data and information on the same basis or with the same degree of accuracy or completeness as are found in other industries. You should not place undue reliance on statements in this presentation regarding the property development industry. No representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of any information or opinion contained herein. It should not be regarded by recipients as a substitute for the exercise of their own judgment. Information and opinion contained in this presentation may be based on or derived from the judgment and opinion of the management of the Company. Such information is not always capable of verification or validation. None of the Company or financial adviser of the Company, or any of their respective directors, officers, employees, agents or advisers shall be in any way responsible for the contents hereof, or shall be liable for any loss arising from use of the information contained in this presentation or otherwise arising in connection therewith. This presentation does not take into consideration the investment objectives, financial situation or particular needs of any particular investor. It shall not to be construed as a solicitation or an offer or invitation to buy or sell any securities or related financial instruments. No part of it shall form the basis of or be relied upon in connection with any contract or commitment whatsoever. This presentation may not be copied or otherwise reproduced. This presentation does not constitute an offer or invitation to purchase or subscribe for any securities or financial instruments or to provide any investment service or investment advice, and no part of it shall form the basis of or be relied upon in connection with any contract, commitment or investment decision in relation thereto. This presentation does not constitute an offer to sell or the solicitation of an offer to buy any securities in the United States or any other jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. This presentation shall not be reproduced or circulated. © 2020 Kaisa Group Holdings Ltd. All rights reserved. 2 Contents 1. Latest Update in 2020Q3 4 2. Appendix 13 (Interim Results Presentation 2020) 3 1. Latest Update in 2020Q3 Pilot Reforms in Shenzhen on Building Socialist Demonstration Area in Next Five Years • The document was issued by the general offices of the Communist Party of China Central Committee and the State Council on Oct 11 • Shenzhen was granted with greater autonomy in the reform at below perspectives Areas Key points Market-based Allocation of • Deepening exploration in land management system Factors of Production • Improvement of labor mobility system for mega cities • Promotion of capital market reform • Application of science and technology achievements • Information sharing and protection Business Environment • Protection of intellectual property • Improvement of administrative management system and legislation of special economic zone Science and Technology • Introduction of high quality talents Innovation and Talents • Reform of the household registration system Introduction • Adjustment and improvement of the points settlement policy High-level Open Up • Improvement on rule of laws • Open up of financial and shipping industries Public Service • Medical services • Education • Social securities • Cultural and sports operation management • Ecological protection • City management Improve the Land Investment Value in Shenzhen and its Surrounding Areas Favorable Policies Facilitate Conversion of Urban Renewal Projects 5 Shenzhen Property Market Continues to Outperform other T1 Cities Top 10 price increase of secondary home YoY Price Change* of New Home and in China 70 major cities in Aug 2020 Secondary House in Aug 2020 (Aug 2019=100) (Aug 2019=100) 120 120 115 115 110 110 105 105 100 100 Shenzhen Tangshan Shenyang Xining Yinchuan Wuxi Xuzhou Luoyang Ningbo Dandong Beijing Shanghai Guangzhou Shenzhen Source: National Bureau of Statistics New Home Price Change Secondary House Price Change Source: National Bureau of Statistics Primary and secondary sales volume Primary and secondary sales volume across Tier 1 cities in Sep 2020 across Tier 1 cities in 9M2020 Transaction GFA (‘000 sq. m.) Units Transaction GFA (‘000 sq. m.) City Sep 2020 YoY Change City 9M2020 YoY Change 9M2020 YoY Change Beijing 912 76.75% Beijing 47,199 1.25% 5,162 -1.01% Shanghai 1,778 43.66% Shanghai 96,165 -7.26% 9,996 -5.84% Guangzhou 1,690 91.37% Guangzhou 68,782 6.42% 7,394 7.91% Shenzhen 476 64.86% Shenzhen 29,036 7.06% 2,891 10.09% Source: CREIS Source: CREIS 6 Residential Land Transaction in Great Bay Area in 9M2020 • Total GFA sold was up 8.9% year on year to 51mn sq. m. • Total consideration was up 3.9% year on year to RMB397 bn • Land cost was down 4.6% year on year to RMB7,719 per sq. m. Greater Bay Area Residential Land Transaction Consideration in Jan-Sep Transaction Consideration (RMB bn) 160 140 120 100 Limited land supply in Shenzhen with only two 80 pieces of residential land offered in Longhua and Pingshan in the 3rd quarter 2020 60 40 20 0 Guangzhou Foshan Dongguan Huizhou Shenzhen Zhongshan Zhuhai Jiangmen Zhaoqing 9M2019 9M2020 Source: www.keyland.com.cn, a domestic land information platform 7 Steady Growth in Contracted Sales • Contracted sales achieved RMB71.0 bn as of 8 Oct 2020 • Golden Week Sales increased by over 30% year on year to RMB5.1 bn 2020 Monthly Contracted Sales & ASP Contracted Sales Contracted ASP (RMB mn) (RMB/sq. m.) 14,000 25,000 22,653 23,986 12,000 19,531 11,001 19,240 18,200 10,831 20,000 19,281 18,904 18,182 16,988 17,807 10,000 18,898 18,691 15,051 9,052 9,535 9,360 16,900 15,005 8,971 16,653 15,000 8,000 13,193 7,278 14,321 6,880 6,691 6,509 6,000 5,512 5,348 10,000 4,419 4,800 4,262 4,137 4,000 3,901 2,563 5,000 2,000 0 0 Jan Feb Mar Apr May Jun Jul Aug Sep Monthly Contracted Sales in 2019 Monthly Contracted Sales in 2020 Monthly Contracted ASP in 2019 Monthly Contracted ASP in 2020 8 Highlight of Projects Launching in 2020Q4 Residential project at Shum Shui Po, Shenzhen Kaisa Marine Guangzhou Kaisa Baiyun City Plaza Hong Kong Mangrove Bay Guangzhou Baiyun New Town West • Yee Kuk Street, Shum Shui Po, • • Intersection of Honghua Extension District, adjacent to Kowloon, Hong Kong, near Road and Xiangzhang Guangzhou Metro Line 8 Xiaoping Kweilin Street Road, Futian District, Station and the large-scale Location • 8-min walk to Nam Cheong Shenzhen Location integrated transportation hub of Location Station on West Rail Line Baiyun Railway Station under • Adjacent to Fubao Station • 5-min walk to Shum Shui Po construction of Metro Line 3 Station on Tsuen Wan Line, • Near Baiyun Mountain, a national reaching Central Station in 20 Site Area 5A-level scenic spot 9,500 mins (sq. m.) • Site Area • 179,000 Site Area (sq. m.) 4,100 Saleable GFA (Sq. ft.) • • 20,000 Saleable GFA (sq. m.) 500,000 (sq. m.) • Saleable GFA • 27,700 Saleable Saleable Value • 2,000 (Sq. ft.) Value • 30,000 (RMB mn) (RMB mn) Saleable • The large-scale integrated project • A residential project with Value • 568 will be developed in 3 phases and complementary Planned Use (HK$ mn) will consist of high-end residential commercial facilities to be Planned Use flats, a star-rated hotel, an office developed in 1 phase building, serviced apartment and a commercial complex • Obtain high-quality land Planned A residential building with 1/F and • Kaisa’s first urban village bank through the Use 2/F for commercial use. • Significance Significance redevelopment project in acquisition of Shenzhen Guangzhou Shipping Group 9 URPs Conversion in 2020Q3 Saleable ASP of Expected Saleable No. Project Location Type Area* Nearby Projects Resources (’000 sq. m.) (RMB/sq. m.) (RMB mn) 1 Hong Kong Sai Wan Project Sai Wan, Hong Kong Residential 2¹ 340,000 820 Shenzhen Sanshun 2 Luohu, Shenzhen Industrial 30 55,000 1,650 Pharmaceutical Factory Project 3 Shenzhen Nanshan Project Nanshan, Shenzhen Commercial 53 120,000 6,360 Guangzhou Kaisa Phoenix Riverview Residential & 4 Nansha, Guangzhou 260 28,000 7,280 Residence Commercial Zengcheng, Residential & 5 Guangzhou Xiajing Village Project 360 30,000 10,800 Guangzhou Commercial URPs converted in 1H2020 705 26,910 Residential & 6 Shenzhen Nanmendun Project (P1) Longgang, Shenzhen 200 55,000 11,000 Commercial Residential & 7 Huizhou Zhongkai Project Zhongkai, Huizhou 290 12,000 3,480 Commercial 8 Shenzhen Xiaxue Village Project (P1) Longgang, Shenzhen Residential 70 53,000 3,710 9 Shum Shui Po Project Kowloon, Hong Kong Residential 3² 164,000 492 URPs converted in 2020Q3 563 18,682 Total Conversion in 2020 YTD 1,268 45,592 ¹approx.