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Yuzhou Group.Pdf 2020 Corporate PPT 大禹治水,荒漠成洲 THE GROUP'S NAME ORIGINATES FROM A RULER IN ANCIENT CHINA CALLED YU THE GREAT 禹,源自「大禹治水」 大禹治水,千古名垂。這是自強不息、堅韌不拔的奮鬥精神,是革故鼎新、勇於挑戰的創 新 精神,是「三過家門而不入」的奉獻精神,是熟知人性、順勢而為的人文精神,融入炎黃子 孫的血 脈,成為中華民族精神的源頭。 禹洲始終秉承「大禹治水,荒漠成洲」的拓荒精神,始終以開拓者和建設者的姿態站在未 來 城市座標上,用誠心和誠信奉獻誠品,詮釋城市生活的理想和價值。 3 Results Highlights Leading the industry,heading to RMB100 Bn Abundant land reserve with Tier 1&2 >90% 1H2020 Contracted sales reached 2H2020 saleable resources amount to RMB42.85bn, +50.49% yoy, achieved 42.85% RMB115.8 bn, increase 45% yoy, 89% in of annual target tier 1&2 cities Total revenue was RMB14.07 bn, +20.4% yoy As of August 2020, landbank was 21.44 GPM=27%,keep steady mn sq.m., saleable resources was over RMB414.3bn, 90% in tier 1&2 cities, new Core profit was RMB1.53 bn, +9.56% yoy landbank acquired amounts to RMB70bn Deep cultivation with diversified land bank Debt management actively Strictly comply with investment discipline, 1H2020 Total debt was RMB62.7 bn, grasping favorable market opportunities guarantee decreased to RMB7.9bn, lower Diversified land acquisition with M&A、 36% than that in 2019 bidding and auction、and City-Industry USD bonds weighted average maturity was cooperation near 3.3 years, longer than peers Fruitful results for locality development Consolidated cash collection rate was 90%, liquidity was abundant Cash/short term debt 2.49x*,leading peers High dividend with ESG rating ranking No.1 Hang Seng Index recognized MSCI ESG rating was BBB, ranking No.1 Interim dividend HK12 cents among the industry. Dividend payout ratio was 36.65%, with 11% Successfully issued the first green bond, dividend yield* with over 9 times oversubscribed worldwide, Selected as the Hang Seng Composite widely recognized by green investors LargeCap&MidCap Index Constituent Stocks 、 Green buildings coverage accounts for more Hang Seng Large-Mid Cap Value 50 Index and than 80% of land reserves, and win a high Hang Seng Large-Mid Cap Value Tilt Index , reputation in the industry high quality object is obvious to all *Onshore corporate bonds based on maturity dates *Calculated based on the closing price on June 30, 2020 4 Contents 1. Business and Financial Reviews 2. Business Operations 3. Future Outlook 4. Appendix 5 Business and Financial Reviews Leading the industry,heading to RMB100 Billion Contracted sales increased to RMB42.85 bn, strongly increased 50.49% yoy; GFA around 2.61 mn sq.m.,increased 40.83%;ASP ≈ RMB16,421/sq.m.. Accelerated sales and actively extended in the tier 1&2 cities and their satellite cities with convenient rail transportation. In-demand quality residential products launched in 2H2020, targeting to RMB100 bn contracted sales. Contracted sales Contracted GFA Contracted ASP RMB mn 1,000 RMB/sq.m. sq.m. 80,000 6,000 18,000 75,115 15,125 15,110 16,421 4,971 16,000 70,000 5,000 14,000 60,000 56,003 4,000 12,000 46,641 3,703 50,000 3,118 10,000 40,000 3,000 34,509 2,125 8,000 30,000 2,000 6,000 20,000 42,851 2,609 4,000 28,474 1,000 1,853 21,494 1,578 10,000 2,000 0 0 0 FY2018 FY2019 1H2020 FY2018 FY2019 1H2020 FY2018 FY2019 1H2020 1H 2H 1H 2H 7 Diversified Contracted Sales in 1H2020 Contracted Contracted 1H2020 Contracted Sales by Region As of Total Region City Sales GFA Central (RMB mn) (%) (sq.m.) China 4.0% GHM Bay West Strait 8,129 19.0% 579,963 14,017 Area 1.4% Yangtze River Delta 26,767 62.4% 1,484,573 18,030 Central China 1,702 4.0% 151,201 11,256 Bohai Rim 11.3% The Greater Yangtze 616 1.4% 51,486 11,955 River Delta Southwest Bay Area Region 62.4% 1.9% Southwest Region 800 1.9% 69,178 11,566 West Strait Bohai Rim 19.0% 4,837 11.3% 273,081 17,713 Total 42,851 100% 2,609,482 16,421 Monthly Contracted Sales & Contracted ASP Contracted Sales (2019.01-2020.06) Contracted ASP (RMB mn) (RMB/sq.m.) 12,110 10,751 20,000 10,000 9,627 16,836 17,193 9,201 9,156 18,000 16,242 15,455 16,003 16,974 14,993 14,887 8,220 16,000 14,482 16,611 7,890 8,000 14,694 15,952 14,000 15,553 7,184 14,493 14,696 14,450 14,091 14,483 5,717 6,062 6,112 12,000 6,000 5,118 5,137 5,151 10,000 8,000 3,443 4,000 3,080 2,804 6,000 4,000 2,000 1,202 2,000 0 0 1月 2月 3月 4月 5月 6月 7月 8月 9月 10月 11月 12月 Contracted Sales in 2019 Contracted Sales in 2020 ASP in 2019 ASP in 2020 8 Sales Performance as of September 2020 In the first nine months of 2020, Yuzhou Group’s contracted sales reached RMB77,060 million, up by 57.69% y-o-y; contracted sales in August 2020 was RMB11,654 million, up by 41.78% y- o-y. Our contracted sales in September 2020 was RMB11,654 million. The contracted GFA was 725,760 sq.m. ASP for this month was RMB16,058/sq.m.. In the first nine months of 2020, Yuzhou Group achieved a total contracted sales of approximately RMB77,060 million; the attributable interest of Yuzhou is around 60%. Achieved contracted GFA was 4,711,825 sq.m.. ASP was RMB16,355/sq.m.. Contracted Contracted Contracted As of Total 2019-2020 Contracted Sales Sales GFA ASP # Region (By quarter) (RMB mn) (%) (sq.m.) (RMB/sq.m.) (RMB mn) West Strait 1 15,271 19.8% 1,079,581 14,147 40,000 Economic Zone 34,209 Yangtze River 35,000 2 47,857 62.1% 2,645,790 18,088 32,488 Delta 30,000 3 Central Region 2,641 3.4% 238,402 11,079 26,247 25,000 4 GHM Bay Area 1,314 1.7% 116,800 11,248 20,394 20,000 17,472 Southwest 5 1,535 2.0% 142,787 10,752 10,363 Region 15,000 11,002 Bohai Rim 10,000 6 8,442 11.0% 488,465 17,282 Region 5,000 Total 77,060 100% 4,711,825 16,355 0 Q1 Q2 Q3 Q4 2019 2020 9 In-Depth Cultivation with Sales Highlights By contracted sales in 1H2020, Yuzhou were Top ranked in many major cities. Deeply cultivated in Hefei for many years, successfully deployed 18 projects. In 2020, Yuzhou Hefei ranked 1st in terms of sale amount, GFA, and units for 7 consecutive months, and is expected to become the second city with more than RMB10 billion in a single year. Yuzhou Tangshan ranked Yuzhou Qingdao Langham Yuzhou Hefei ranked No.1 in No.2 in amount & GFA, No.3 Mansion ranked No.1 in amount, GFA & Units in Units Units, GFA and Amount 10 Win-Win of Scale & Profitability 1H2020 Recognized Property Sales Amount by Region 1H2020 Recognized Property Sales GFA by Region Greater Bay Central Greater Bay Area China Area Central 0.2% China 0.2% 9.5% Southwest 7.5% Southwest 5.5% 4.7% Bohai Rim Yangtze Bohai Rim 20.7% River Delta 21.8% 58.4% Yangtze River Delta 58.7% West Strait West Strait 6.5% 6.3% Revenue, Gross profit & Gross profit margin* Core Profit RMB mn RMB mn 30,000 80.00% 24,306 23,240 70.00% 5,000 4,409 50.00% 25,000 60.00% 4,000 3,640 40.00% 20,000 26.21% 50.00% 10.93% 14,007 3,000 30.00% 15,000 30.82% 11,637 40.00% 30.00% 10,000 27.00% 2,000 13.88% 14.68% 1,397 1,530 20.00% 7,467 27.00% 6,092 20.00% 5,000 3,140 3,276 1,000 10.00% 10.00% 12.00% - 0.00% - 0.00% FY2018 FY2019 1H2019 1H2020 FY2018 FY2019 1H2019 1H2020 Revenue Gross Profit GPM Core Profit Core Profit Margin 11 High Dividend, Continuous Return to Shareholders Interim dividend HK12 cents per share Dividend payout ratio for 1H2020 was 36.65% Accumulated dividend since listing was much higher than listing price Be consecutively included in the Hang Seng High Dividend Yield Index Constituent Stocks, Hang Seng Large and Mid-Cap Value 50 Index, and Hang Seng Large-Mid Cap Value Tilt Index 2014-1H2020 2014-1H2020 Dividend Payout Dividend Payout Ratio (HK cents) 50% 45.67% 43.17% 40 40% 36.45% 36.65% 35.54% 36.24% 36.29% 30 25 30% 20 20.5 21.5 20% 10 22 18 16 15 10% 11 12 8.5 0 2014 2015 2016 2017 2018 2019 1H2020 0% 2014 2015 2016 2017 2018 2019 1H2020 Interim Dividend Final Dividend *Including special dividend in 2019 12 Diversified Financing Channels with Debt Maturity Longer than Peers Total borrowing* in 1H2020 was RMB62.7 bn. The guarantee amount in 1H2020 was RMB7.9 bn, which decreased 36% from RMB12.4 bn in 2019. Weighted average debt maturity of offshore USD bonds was near to 3.3 years, which was above the average peer level. Debt Type Debt Structure Onshore Onshore/Offshore Corporate Bonds Bank Loan, HKD Syndicated Loans and 2% Due in 2020 : 3,000mm 9.500 bn Other Loans Due in 2021 : 3,000mm 15% Due in 2024 : 3,500mm 12.716 bn Due in 2021 : 8,833mm 20% Due in 2022 : 3,089mm Offshore RMB 5.130 bn Due in 2023 : 3,598mm Senior Notes 36% 8% Due in 2024 : 473mm USD 35.381 bn Due in 2021 : 5,417mm Due in 2025 : 241mm 62% 57% Due in 2022 : 4,154mm Beyond 5 years: 1,612mm Due in 2023 : 6,224mm Due in 2024 : 5,250mm Due in 2025 : 6,311mm Beyond 5 years: 8,025mm Weighted Average Finance Cost Weighted Average Debt Maturity # % Years 10.00 4.00 3.29 3.35 9.00 8.49 3.20 3.00 8.00 2.75 2.00 7.00 6.95 7.21 7.12 7.22 6.00 1.00 FY2014 FY2018 1H2019 FY2019 1H2020 2018.12.31 2019.12.31 2020.06.30 2020.08 13 * Excluding a portion of the debt with interest portion borne by cooperative partners # Offshore senior notes Strong Cash Collection, Strict Debt Control Liquidity is Abundant Cash &Cash Collection Rate Cash to Short-term Debts X RMB mn Approx.
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