Interim Results Presentation. 27 March 2008

Transcription

1 Interim Results Presentation 27 March 2008

2 Contents Page Group structure Results snapshot Review of operations Hong Kong China Market outlook Looking ahead Investor contact

3 Group structure Henderson Land Development Company Limited 31.36% 67.94% 39.06% 44.21% Hong Kong Ferry (Holdings) Company Limited Property development & investment Henderson Investment Limited Infrastructure The Hong Kong and China Gas Company Limited Production & distribution of gas in HK & mainland China Miramar Hotel and Investment Company, Limited Property investment, hotel operation & travel business 45.40% Effective interest in listed associates Before reorganization After reorganization Towngas China Company Limited HK Ferry HKCG Miramar 21.31% 26.54% 30.04% 31.36% 39.06% 44.21% Sale & distribution of LP gas & natural gas in mainland China Company & subsidiary Associates - 3 -

4 Results snapshot Financial summary For the six months ended 31 December Note 2007 Unaudited HK$ million 2006 Unaudited HK$ million Change Property sales - Revenue 1 8,174 4, % - Profit contribution 1 3,672 2,208 66% Net rental income 2 1,319 1,139 16% Profit attributable to Shareholders - Reported profit 9,188 3, % - Underlying profit 3 3,758 2,427 55% HK$ HK$ Earnings per share - Based on reported profit % - Based on underlying profit % Interim dividend per share Notes: 1) Representing the Group s attributable share of the value of properties in Hong Kong sold by subsidiaries, associates and jointly controlled entities ( JCE ). 2) Representing the Groups attributable share of net rental income from investment properties in Hong Kong and mainland China held by subsidiaries, associates and JCEs. 3) Excluding the surplus on revaluation (net of deferred tax) of the investment properties held by subsidiaries, associates and JCEs

5 Results snapshot Financial summary (Continued) Note At 31 December 2007 Unaudited HK$ million At 30 June 2007 Audited HK$ million Change Shareholders equity 114,872 92,219 25% Net debt 17,280 8,750 97% Net debt to shareholders equity 15.0% 9.5% 5.5pp Net asset value per share Land bank 4 HK$ HK$ % At 31 December 2007 GFA (M sq. ft.) Hong Kong Mainland China Properties held for/under development Completed investment properties Total land area (M sq. ft.) Agricultural land Notes: 4) Representing amount attributable to equity shareholders of the Company. 5) Including stock of unsold property units in Hong Kong with attributable floor area of 1.1 million square feet 6) Including hotel properties in Hong Kong with attributable floor area of 1.0 million square feet

6 Results snapshot Highlights Remarkable growth of 100% in property sales - Over 1,700 residential units at The Beverly Hills (Phase I), King s Park Hill, Grand Waterfront, Grand Promenade and The Sherwood were sold. - A non-residential project, Midas Plaza, was completely sold out units (67% out of the total) at The Sparkle were pre-sold in two months. Higher contribution from net rental income which grew by 16% % out of the total number of tenancies in Hong Kong, representing GFA of about 600,000sq. ft. was subject to renewal and resulting in higher rent during the period. - AIA Tower also performed well with nearly 100% rental growth on renewal. - The IFC Mall and other large-scale shopping centres such as Metro City Phase III, Shatin Plaza and Citimall were almost fully let at the end of the period. Satisfactory performance in the underlying profit attributable to shareholders and earnings per share based on the underlying profit, which increased by 55% and 45% respectively - 6 -

7 Highlights Results snapshot Active acquisition of agricultural land with high development potential - About 1.7M sq. ft. of agricultural land in site area was acquired during the period. - The Group also held approximately 2.6million sq. ft. and 2.3million sq. ft. of agricultural land lots in Fanling/Kwu Tung North and Hung Shui Kiu, which were designated by the Government as New Development Areas in the Chief Executive s Policy Address and the Hong Kong 2030 Study in October Satisfactory progress made in land-use conversion - Basic terms for land exchange for Wu Kai Sha and Tai Tong Road have been finalized with the Government. Project Ownership (%) Developable GFA (M sq. ft.) Attributable GFA (M sq. ft.) Wu Kai Sha, Sha Tin 53.75% Tai Tong Road, Yuen Long 79.03% After amendment of the Outline Zoning Plan by Town Planning Board, which has just completed the review on the Yau Tong Bay Comprehensive Development Area zone, the Group will proceed with the redevelopment at Yau Tong Bay. The project will provide a total developable GFA of approximately 5.35million sq. ft., of which 0.8million sq. ft. is attributable to the Group. Low level of net debt to shareholders equity ratio at 15% Net asset value per share increased 13% to HK$53.5 per share - 7 -

8 Review of operations Hong Kong Property development business Land bank Agricultural land 9.3M sq. ft. 1.1M sq. ft. 33.4M sq. ft. Completed investment properties Hotel properties 1.0M sq. ft. Stock of unsold properties Properties held for / under development 7.0M sq. ft. 18.4M sq. ft

9 Review of operations Hong Kong Property development business Residential units available for sales Major development projects offered for sale No. of units unsold & pending sale as at period end 653 Gross area of unsold units (sq. ft.) 1,107,711 Gross area attributable to the Group: 1,017,936 Projects pending sale or pre-sale ,980 Gross area attributable to the Group: 812,240 Total saleable residential units and total residential gross area from the major development projects 1,401 1,980,691 Total gross area attributable to the Group: 1,830,176 Upcoming projects to be launched Residential: Non-residential: The Beverly Hills (Phase 3), Nos Headland Road, 33 Lai Chi Kok Road, Tong Yan San Tsuen & Fanling Sheung Shui Town Lot 231 Win Plaza & 52 Hung To Road - 9 -

10 Hong Kong Property investment business Review of operations The net rental income growth in Hong Kong (before any changes in fair value of investment properties and related deferred taxation) amounted to 12%. Leasing rate remained high at 94% for the Group s core rental properties. A big-4 accounting firm has recently committed to become one of the anchor tenants of Kwun Tong 223 and will occupy an area of up to about 100,000sq. ft. Metro City Phase II and Kowloon Building were undergoing a face-lift, with the entire upgrade to be completed in Renovation works for Sunshine City Plaza, Citimall and City Landmark I are also in pipeline. Investment properties portfolio in Hong Kong (%) 7% 8% 48% 37% I/O Residential Office Commercial

11 Review of operations Mainland China Property development business Land bank Beijing Shanghai Guangzhou Attributable GFA (Million sq. ft.) Prime cities: 21.8 Million sq. ft. Chongqing 6.9 Changsha, Hunan 12.7 Shenyang, Liaoning 21.2 Xian, Shaanxi Nanjing, Jiangsu nd -tier cities: 94.5 Million sq. ft. Suzhou, Jiangsu 17.0 Yixing, Jiangsu 9.7 Xuzhou, Jiangsu 5.2 TOTAL at 31 December TOTAL at 31 August 2007* Major acquisitions since September 2007 to the period end Projects Location % owned Expected completion * As disclosed in our 2007 annual report Accommodation value (RMB/sq. ft.) Attributable GFA (M sq. ft.) Donggui New District Yixing 100% Phase I in 2nd quarter of Qixia District Nanjing 90.1% 4th quarter of Gaoling area Changsha 55% TBC Xiangcheng District Suzhou 100% 1st quarter of 2010 (for 1st batch of residences with a GFA of ~1M sq. ft.) Total

12 Mainland China Review of operations Property development business Schedule of completion For the year ending 30 June 2008 Group s share of developable GFA (Million sq. ft.)* World Financial Centre, Chao Yang District, Beijing Hengli Bayview, Liwan District, Guangzhou For the year ending 30 June Tianmu Road West, Zhabei District, Shanghai For the year ending 30 June 2010 Lot 155, Nanjing Road East, Huangpu District, Shanghai Phase I, The Champion Arch, Xingsha Town, Changsha Phase 1, Xuzhou Lakeview Development Phase 1, Xian Chanhe East Development Project in Second Ring Road East, Xian Phase 1, Residential Project in Xiangcheng District, Suzhou Phase 1, Puhe New District, Shenyang Phase 1, Nan an District Riverside Development, Chongqing Phase 1, Project in Erlang Phoenix Area, Chongqing Phase 1, Project in Donggui New District, Yixing *Excluding basement areas and carparks

13 Mainland China Review of operations Property development business Schedule of pre-sale For the calendar year 2008 Project in Second Ring Road East, Xian Phase I, Xian Chanhe East Development Phase I, The Champion Arch, Xingsha Town, Changsha For the calendar year 2009 Phase I, Xuzhou Lakeview Development Phase I, Project in Erlang Phoenix Area, Chongqing Phase I, Residential Project in Xiangcheng District, Suzhou Project in an island of Yicheng, Yixing Phase I, Project in Donggui New District, Yixing Phase I, Nan an District Riverside development, Chongqing Expected time for pre-sale 2nd half of 2008 October 2008 Late st quarter nd quarter 2009 Mid-2009 Mid rd quarter rd quarter 2009 Group s share of developable residential GFA (Million sq. ft.)

14 Mainland China Property investment business Review of operations The group s attributable gross rental income grew by 43% to HK$126 million. Grand Gateway Office Tower II in Shanghai, was 97% let with close to 30% rental increase on lease renewal. Hengbao Plaza in Guangzhou recorded a 38% year-on-year growth in its rentals against a higher leasing rate of 82% at the end of the period. World Financial Centre in Beijing is earmarked to be completed in sync with the 2008 Olympic Games. Leasing interests from multinational corporations, financial services and professional groups are vigorous

15 Market outlook Uncertainties remain in the US economy. In mainland China, - austerity measures introduced to cool the overheated economy - target for GDP growth slightly reduced to 8% - overall condition of economy better than the other world economies In Hong Kong, - as forecast in the recent Government Budget, annual GDP growth of 4-5% for 2008 and an average of 4.5% for the period 2009 to 2012, all in real terms. - interest rate environment is currently low - supply-demand imbalance exists

16 Looking ahead Following the group reorganizations, the Group will directly benefit from a higher contribution from the Group s listed associates, in particular HKCG. Rising income from the expanding rental portfolio and from rental reversion, forms a solid recurrent income base for the Group. The group will continue its efforts in land-use conversion of agricultural land lots so as to provide a steady pipeline of development sites in future years. The group is also actively sourcing for development land sites to replenish its landbank. With the probable completion of the formalities for land acquisition by the end of 2008, the Group s development land bank in mainland China will increase to over 150million sq. ft.. The enlarged capital base, the sizeable proceeds from property sales and the relatively low gearing have provided the Group with a strong capacity for future expansion. The dual earnings growth drivers in Hong Kong and mainland China provide a wide and diversified market coverage to enable the Group to tackle the challenges ahead

17 THANK YOU

18 Hong Kong Head Office Address: 72-76/F Two International Finance Centre 8 Finance Street Central Hong Kong Telephone: (852) Fax: (852) Website: Investor contact: Mr. Alexander Au Miss Joanna Yan Executive Director & Investor Relations Manager Chief Financial Officer Direct line: (852) Direct line: (852) joanna.yan@hld.com alex.au@hld.com