March 2019 Disclaimer
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March 2019 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 Limited (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. © 2019 Kaisa Group Holdings Limited. All rights reserved. 2 Contents 3 Major Achievements in 2018 Strong Contracted High Quality Land Abundant URP Sales Bank Pipeline Contracted sales (attributable) Land bank over 24 mn sq. of RMB70.06 bn Site area of 30 mn sq. m. m. (87% attributable) 57% YoY URPs are not included in the land bank, 25% YoY 80% located in tier-1 and Contracted ASP of major tier-2 cities located in Greater Bay RMB18,261 per sq. m. 99% Area, Shenzhen and 14% YoY 54% located in the Guangzhou account for 60% Greater Bay Area, totaled Contracted GFA of 13 mn sq. m. 3.84 mn sq. m. 38% YoY 5 Major Achievements in 2018 Revenue Gross Profit GP Margin RMB38.7 bn RMB11.1 bn Gross Profit Margin: 29.0% 18% YoY 25% YoY 1.5 ppts YoY Net Profit Core Net Profit Margin Net Gearing Quick Ratio RMB3.3 bn 12.2% Deleverage Up to 1.3X 8% YoY 8.6 ppts YoY 236% 1X as Dec 2017 Onshore Financing Channels Capital Market Activities Proposed Dividend AA+ credit rating, stable outlook by Spin-off IPO of property management China Chengxin business on HKEX Main Board An interim dividend of HK3 Obtained ABS Quota over RMB9 bn: (2168.hk) cents per share (RMB mn) Proposed a final dividend of Supplier Payables 5,000 Included in Hang Seng Composite HK9 cents per share Large & Mid Cap Index and Hang Long-term Rental Apartments 3,000 Total dividend of HK12 cents Seng Stock Connect Big Bay Area per share for FY2018 Mortgage Balloon Payment 685 Composite Index Shipping Business 475 Major shareholder continuously increased stakes 6 Major Achievements in 2018 Returned to the Chinese Super League Corporate Social Responsibility In November 2018, Shenzhen Kaisa Kaisa won the title of “The Most Influential Football Team successfully made it back Pioneer Enterprise in Precision Poverty into the Chinese Super League Alleviation” In December 2018, Municipal Government The case of “Kaisa donated RMB220 million of Shenzhen presented a special in support of Guangdong’s Precise Poverty contribution award of RMB20 mn to Alleviation” was included in “2018 Poverty Shenzhen Kaisa Football Team in order to Alleviation Achievements Report”, making support its further development Kaisa Group the only developer to receive such an honor Kaisa’s Brand Value Has Been Further Strengthened 7 Abundant Premium Land Bank in Tier 1 & Tier 2 Cities Sizable and valuable land bank Western China Pan-Bohai Bay Rim 24.0 mn sq. m. of land bank by GFA with GFA: 2.8 mn sq. m. GFA: 4.2 mn sq. m. Percentage of total by GFA: Percentage of total by GFA: 17.3% attributable portion of 87% 11.8% 80% located in tier 1 and major tier 2 cities Central China 54% land bank in the Greater Bay Area GFA: 2.0 mn sq. m. GFA of over 7 mn sq. m. contributed from URPs, Percentage of total by GFA: 8.2% accounting 30% of total land bank Land Bank by Development Status Shenyang Completed, sold yet Completed and recognized Dalian unsold 2% Qingdao 6% Nanjing Zhengzhou Xuzhou Shanghai Under development Chongqing Suzhou Held for future 44% Wuhan Chengdu Shaoxing development Changsha 48% Foshan Guangzhou Huizhou Zhongshan Shenzhen Greater Bay Area Dongguan Zhuhai Land Bank by Land Use GFA: 13.0 mn sq. m. Sanya Percentage of total by GFA: 54.3% Commercial (Shenzhen: 3.2 mn sq. m. Yangze River Delta 12% Industrial Percentage of total by GFA: 13.1%) 2% GFA: 1.9 mn sq. m. Percentage of total by GFA: 8.0% Hainan Residential GFA: 0.1 mn sq. m. 86% Percentage of total by GFA: 0.4% 9 Abundant Premium Land Bank in Tier 1 & Tier 2 Cities GFA Saleable Resources % % (’000 sq. m.) (RMB mn) Greater Bay Area 13,045 54% 336,867 73% Shenzhen 3,158 13% 161,034 35% Guangzhou 1,806 7% 81,272 17% Huizhou 5,714 24% 54,286 12% Others (Dongguan, Zhuhai, 2,367 10% 40,275 9% Zhongshan, Foshan) Yangtze River Delta 1,915 8% 36,390 8% Central China 1,975 8% 31,592 7% Western China 2,836 12% 25,524 5% Pan Bohai Rim 4,169 17% 29,180 6% Hainan 87 1% 4,172 1% Total 24,027 100% 463,725 100% 24 mn sq. m. Land Bank by Region RMB464 bn Saleable Resources by Region Pan Bohai Hainan, 1% Pan Bohai Rim, 17% Western Hainan, 1% Over 13 mn sq. China, 5% Rim, 6% RMB337 bn m. land bank in saleable resources Central China, GBA, of which 7% in GBA, of which Western URPs account for URPs account for China, 12% Yangtze River 7.3 mn sq. m. Delta, 8% RMB192 bn Central China, Greater Bay Area, 54% 8% Greater Bay Yangtze River Area, 73% Delta, 8% 10 Land Acquisition in 2018 Newly Acquired Land by Attributable Consideration Land acquisition through merger and acquisition, Hainan Pan Bohai Rim 4% bidding and urban renewal 6% Further penetration into the Greater Bay Area with Western China 56% of the new projects in the Greater Bay Area 8% Attributable GFA of 3.32 mn sq. m. with an average Central China Greater Bay Area land cost of RMB4,750 per sq. m. in 2018 15% 56% Yangtze River Delta 11% Land Acquisition in 2018 Attributable Attributable Attributable Site Area GFA Region Cities GFA Consideration Land Cost (sq. m.) (sq. m.) (sq. m.) (RMB mn) (RMB/sq. m.) Shenzhen, Guangzhou, Greater Bay Area Huizhou, Zhuhai, Foshan, 406,911 1,206,720 928,168 8,775 9,455 Zhongshan Shanghai, Suzhou, Ningbo, Yangtze River Delta 284,972 375,774 212,532 1,673 7,872 Xuzhou, Shaoxing Changsha, Hengyang, Central China 240,880 1,028,812 653,481 2,351 3,598 Ezhou, Xinxiang Chengdu, Chongqing, Western China 219,860 599,583 566,177 1,223 2,161 Pengzhou Bazhou, Gu’an, Dalian, Pan Bohai Rim 417,503 942,967 891,233 984 1,104 Suizhong Hainan Sanya 79,528 86,917 69,883 771 11,034 Total 1,649,654 4,240,773 3,321,474 15,778 4,750 11 Urban Renewal Projects Pipeline Site area of 30.0 mn sq. m. URP pipeline is not included in the land bank (plot ratio not yet calculated) with 99% of them located in Greater Bay Area Converted GFA of approximately 570,000 sq.