Interim Results Investors Presentation

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Interim Results Investors Presentation Disclaimer Potential investors and shareholders of the Group (the “Potential Investors and Shareholders”) are reminded that information contained in this Presentation comprises extracts of operational data and financial information of the Group for the half year ended 30 June 2021. The information included is solely for the use in this Presentation and certain information has not been independently verified. No representations or warranties, expressed or implied, are made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions presented or contained in this Presentation. Potential Investors and Shareholders should refer to the 2021 Interim Report for the unaudited results of the Group which are published in accordance with the Listing Rules of the Stock Exchange of Hong Kong Limited. 2 1. Results Highlights HK$ Million ▲100% ▼11% ▼45% ▼44% ▼44% 7,062 4,186 3,534 3,124 2,775 2,304 1,713 961 0.79 0.44 (HK$) Revenue1 EBIT Operating Profit Profit Attributable to Earnings per Share Shareholders 2 1H2020 1H2021 Note: 1. Exclude construction service income from toll road business 2. The Group recognized a one-off pre-tax gain of approximately HK$3,906M from Qianhai Phase 3 Project in 1H2020 while there was no such one-off gain during the 3 reporting period, resulting in lower profit attributable to shareholders compared to the same period of last year 2. Business Review In 1H2021, the Pandemic was under control effectively in China and the overall situation was stable The Group proactively responded to the dynamics in the internal and external environments. Core businesses performance basically recovered to the pre- pandemic level and showed an upward trend Logistics Business Demand for logistics infrastructure facilities continued, revenue ▲37% to HK$2,224M The first logistics park asset securitization project was successfully completed and Qianhai Phase 1 residential project was delivered during the period, profit attributable to shareholders ▲766% to HK$1,230M 30 key logistics gateway cities presence across China, with 26 projects under operation and a total operating area of 2.78 million sqm Shenzhen Expressway The growth in revenue was resulted from temporary implementation of toll-free policy due to the Pandemic last year, coupled with the commencement of Shenzhen Outer Ring Expressway Phase 1 and the expansion of environmental protection business Overall revenue ▲154% to HK$4,838M Logistics Park Transformation and Upgrading The transformation and upgrading of South China Logistics Park was proactively progressed. The project was included in one of the six key industrial land consolidation and renewal projects in Longhua District, Shenzhen Qianhai Phase 1 residential project was delivered, bringing continuous development income 4 3. Integrated Logistics Hub Total number of operating nationwide integrated logistics hubs increased to 22, with a total operating area of 2.19 million sqm Completed the first logistics park asset package acquisition with approximately RMB1,600M, including high-standard warehouse projects in 3 core gateway cities, Shanghai, Tianjin and Chongqing, adding land area of 297,000 sqm and accelerating layout of “one city, multiple presences” Nantong and Xuzhou projects commenced operation, adding an operating area of approximately 200,000 sqm Continue to expand and enlarge the scale of core logistics business Successfully issued phase 1 of the first logistics real estate private equity investment fund, demonstrating the short closed-loop “investment, construction, financing and operation” business model (“投建融管”小闭环) Injected Nanchang Project to the logistics real estate private equity investment fund and completed the first asset securitization Achieved a profit attributable to shareholders of HK$175M with an asset appreciation rate of 64% In 2H2021, the Group will actively promote the injection of Hefei and Hangzhou Phase 1 Projects to the fund The Group will continue to optimize the industrial business model of logistics park adopting the short closed-loop “investment, construction, financing and operation” business model in order to enlarge business scale and improve profitability 5 4. Logistics Park Transformation and Upgrading The Group continues to grasp the opportunities of urban development and renewal, actively promotes logistics park transformation and upgrading, and build a long closed-loop “investment, construction, operation and transformation” development model (“投建管转”大闭环), to maximize the value of assets Qianhai Project Currently under land development and operation stage, bringing continuous development income Phase 1 Project Yi Wan Fu (颐湾府) – completed residential project delivery, contributing profit of HK$860M Office building project (35,000 sqm) – jointly construct and develop the information port for the “Belt and Road Initiative” in Qianhai with China Electronics Information Industry Development Research Institute(中国电子信息产业发展研究院), with 8,000 sqm of lease agreement signed Commercial project (25,000 sqm) – jointly build the boutique commercial project in Mawan area, Qianhai with SCPG(印力集团), with estimated commencement time in 2022 Phase 2 Project: Total GFA of 110,000 sqm (including 91,000 sqm of residential area), of which the construction started in March Phase 3 Project: Total GFA of 172,000 sqm, currently under in-depth cooperation with Qianhai Administration to promote the comprehensive development Meilin Checkpoint Project Phase 1 residential project He Feng Xuan (和风轩) was delivered to owners Phase 2 residential project He Ya Xuan (和雅轩) was completed, validated and under interior decoration Phase 3 residential project He Song Xuan (和颂轩) is a complex of residential projects, offices and business apartments, of which the construction started and all of the residential projects (63,000 sqm) were sold out South China Logistics Park South China Logistics Park is 580,000 sqm and located in the core area of Shenzhen, with great potential for asset appreciation and development It has been included in many government planning schemes such as “Longhua District’s Work Plan for Promoting the Renewal and Consolidation of Key Industrial Areas”(《龙华区关于推进重点产业片区更新整备工作方案》), and is one of the six major renewal, consolidation and preparation projects in Longhua District 6 To gradually realize its value in the coming years and bring considerable economic benefits 5. Revenue Contribution* Revenue HK$7,062M 1H2021 (2020) Revenue Contribution HK$ Million ▲100% ▲37% ▲154% 7,062 4,838 Shenzhen Expressway 3,534 Logistics 69% Business (54%) 31% 2,224 (46%) 1,905 1,629 Revenue * Logistics Business Shenzhen Expressway 1H2020 1H2021 7 *Exclude construction service income from toll road business 6. Profit Attributable to Shareholders Profit Attributable to Shareholders HK$961M ▼44% HK$ Million ▼44% ▲766% ▲1,167% Net Loss Reduced 34% N/A* 2,929 1,713 1,230 961 749 142 59 -1,223 -811 - the Group’s Profit Attributable to Shareholders Logistics Business Shenzhen Expressway SZ Airlines Qianhai Land Consolidation 1H2020 1H2021 8 * The Group recognized a one-off pre-tax gain from Qianhai Phase 3 Project in the same period last year while there was no such gain in this reporting period 7. Asset Contribution – Total Asset 1H2021 (2020) Total Asset Contribution 1H2021 (2020) NAV Attributable to Shareholders Contribution HK$ Million HK$ Million Logistics Shenzhen Logistics Shenzhen Business Expressway Business Expressway 32,100 67,300 12,800 13,400 26% 56% 37% 38% (24%) (56%) (27%) (38%) Other Projects Other Projects 21,500 8,700 18% 25% (20%) (35%) Total Asset HK$120,900M NAV Attributable to Shareholders HK$34,900M 9 7. Asset Contribution – Logistics Segment 1H2021 (2020) Total Asset Contribution 1H2021 (2020) NAV Attributable to Shareholders Contribution HK$ Million HK$ Million Port and Related Port and Related Service Business Service Business 1,200 600 4% 5% (6%) (3%) Logistics Service Logistics Service Business Business 1,500 1,000 5% 8% (7%) (11%) Logistics Park Logistics Park Business Business 29,400 11,200 91% 87% (87%) (86%) Total Asset of Logistics Segment NAV Attributable to Shareholders of HK$32,100M Logistics Segment HK$12,800M 10 8. Logistics Business (1) Logistics Park Business Logistics Park Business Profit Attributable to Shareholders▲296% HK$ Million HK$ Million ▲57% ▲132% ▲266% ▲533% ▲119% 611 579 215.9 389 399 250 100.3 45.8 109 34.1 Revenue EBITDA EBIT Integrated Logistics Hubs Shenzhen Logistics Parks 1H2020 1H2021 1H2020 1H2021 Logistics Park Business: As demand for logistics infrastructure facilities is recovering, and with the temporary rent-free policy implemented during the same period of last year, revenue ▲57% Integrated logistics hubs: Profit attributable to shareholders ▲533% YoY Injected Nanchang Integrated Logistics hub to logistics real estate private equity investment fund, recognizing profit attributable to shareholders of HK$175M Shenzhen Logistics Parks: Profit attributable to shareholders ▲119% YoY South China Logistics Park: Expanded the high value-added customs bonded business and conducted intelligent upgrade to existing warehouses, rental rate further increased Kanghuai E-commerce Center: The operation of the asset-light project with operating area of 138,000 sqm has been stable, with an occupancy rate of 96% 11 8. Logistics Business (2) Port and Related Service Business Logistics Service Business Logistics Park Transformation and Upgrading HK$ Million HK$ Million
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