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CIFI Holdings (Group) Co. Ltd.
2015 Annual Results Presentation
March 2016
Innovative Breakthrough, Fast Growth
2
Disclaimer
2
This presentation may contain forward-looking statements. Any such forward-looking statements are based on a number of
assumptions about the operations of CIFI Holdings (Group) Co. 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 responsibility to update these forward-looking statements of 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 oral
discussions about background information about the Company.
This presentation also contains information and statistics relating to the China real estate 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 China real estate 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.
3
I. 2015 Annual Results Highlights
II. 2015 Operating Performance
III. 2015 Financial Performance
IV. 2016 Outlook
V. Appendix
Table of Contents
3
4
I. 2015 Annual Results Highlights
2015 Annual Results Highlights
Substantial Contracted Sales Growth,
Outperforming Industry Peers
Core profit: RMB2.21 billion (2014: RMB1.94 billion), up 14%
Recognized revenue: RMB18.23 billion (2014: RMB16.18 billion), up 13%
Final dividend of RMB0.0935 (approx. HK$0.11) per share with script option and
interim dividend bring full year dividend to approx. HK$0.14 per share (2014:
HK$0.11), up 27%
Payout ratio: 35% of core net profit
Consistent Growth in Core Profit and Dividend
Dividend
(Equiv. to HK cents per share)
4
7
11
14
2012 2013 2014 2015
2015: +27%
9,544
15,319
21,200
30,210
2012 2013 2014 2015
Contracted Sales (RMB million)
2015: +43%
5
Contracted sales: RMB30.2 billion, up 43%, exceeding full year target of RMB25
billion by 21%
ASP reached RMB14,700/sq.m. (2014: RMB12,200/sq.m.), up 20%
Contracted sales in 2H 2015 accounted for 65% of the FY total, capturing
benefits of rising property prices
6
2015 Annual Results Highlights
6
In May 2015, raised US$170 million by placement of 600 million shares
at HK$2.2 per share
Seized opportunities and repurchased 109 million shares at HK$1.34-
1.45
In Oct-Nov 2015, issued RMB4 billion onshore public bonds at 4.95%
(3+2 years maturity) and 5.96% (5 years maturity) respectively
In Jan 2016, issued RMB2 billion onshore private bonds at 4.99% (1+1
years maturity)
Repaid ahead of maturity the entire US$156 million principal value of
Offshore Syndicated Loan due 2016 and repurchased US$40.8 million
principal value of 2018 Due USD Bonds
Non-RMB denominated debts: 44% of total debt (2015.6.30: 52%)
Gross profit margin and core net profit margin: 24.1% and 12.1%
respectively, remained stable
Weighted average funding cost lowered to 7.2% (2014: 8.3%), further
decline expected in 2016
Net debt ratio: 59% (2014: 63%, assuming onshore perpetual
instruments treated as debts)
Cash-on-hand: RMB14.9 billion
Healthy
Financial Ratios
Completed
Share Placement,
Onshore Bonds;
Reduced USD Exposure
7
2015 Annual Results Highlights
7
Enhanced
Product Capabilities,
Brand Recognition
& Industry Status
Acquired 25 projects in 1st- and 2nd-tier cities in 2015; 80% of the projects
are upgraders’ products, with committed attributable land cost of RMB13.1
billion
92% in 1st-tier and robust 2nd-tier cities
Abundant saleable resources to support 2016 and 2017 sales plans
Reduce land purchase and retain cash in 2016, waiting for the next
window of opportunity for replenishing land bank
Premium “Park Mansion” products received overwhelming responses
Formed first JV with Hongkong Land, expanded partnerships with
established developers, including Henderson China, Vanke, Greenland,
Longfor, Beijing Capital Land and Beijing North Star
In 2015, CIFI was ranked amongst China’s Top 25 Developers in terms of
contracted sales*
Seized Ideal Land-banking
Window in 2015,
Abundant Saleable
Resources in Next 2 Yrs
* According to “China’s Real Estate Enterprises TOP100 Sales Ranking in 2015” published by CRIC Information Group
and China Real Estate Appraisal Center
8
II. 2015 Operating Performance
53%
43% 42% 40%
30% 28%
25% 23% 22%
13% 11%
9%
4% 2% 1% 1% 0% 0%
-1%
-5%
-9%
Evengran
de
CIFI
BC
L
Jinm
ao
Futu
re Land
CO
LI
Poly H
on
g Ko
ng
CR
Land
Van
ke
Yuexiu
Lon
gfor
Co
un
try Gard
en
SUN
AC
Wan
da C
om
m.
Sino
-Ocean
Land
CC
RE
R&
F
Agile
2015 Contracted Sales YoY Growth of
Hong Kong Listed China Property Developers
KWG
Shim
ao
Green
tow
n
CIF
I
9 9
Ranked Among Top Developers by 2015
Contracted Sales Growth
Source: Listed company announcements
1,026
1,438
1,733
2,056
2012 2013 2014 2015
10 10
CIFI’s contracted sales in 2015 up by 43% and exceeded annual target (RMB25 billion) by 21%
Contracted GFA and ASP increased 19% and 20%, respectively
Recorded most contracted sales in 2H, capturing the rising price trend and maximized profit
Upgraders’ products accounted for over 50% of residential property sales
9,544
2012 2013 2014 2015
+43% YoY
*including joint ventures and associate companies
Contracted Sales: Up by 43%
Contracted Sales
(RMB million)
Contracted GFA
(’000 sq.m.)
+19% YoY
9,300
10,725
12,235
14,700
2012 2013 2014 2015
Contracted ASP
(RMB/sq.m.)
+20% YoY
15,319
21,200
30,210
2,210
810
2,250
1,510 1,420
1,990
1,530 1,5101,520
1,9802,160 2,180
1,510
530
1,660 1,830 2,070
2,930
1,360
2,400
3,010
4,020 4,050
Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec
2014 2015 2016
12,920 13,670 12,900
11,400 11,330
9,65010,820
12,060
11,70014,500 14,400
12,500
13,700
12,65011,300
12,500 13,16011,770
14,200 14,40015,100
14,500
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2014 2015 201611
Monthly Contracted Sales
Monthly Contracted ASP
1,1420
4,856
21,100
Contracted Sales: Record Highs in MoM
and YoY Monthly Sales Growth and ASP
(RMB million)
(RMB/sq.m.)
18,100 18,600
1,710
3,300
12
Shanghai 29%
Suzhou 18%
Hangzhou 14%
Beijing 11%
Tianjin 6%
Hefei 6%
Nanjing 5%
Changsha 4%
Wuhan 2%
Chongqing 1%
Shenyang 1%
Langfang 1%
Zhenjiang 1%
Jiaxing 1%
Shanghai 33%
Suzhou 12%
Hangzhou 11%
Beijing 11%
Tianjin 10%
Hefei 5%
Chongqing 5%
Changsha 5%
Wuhan 1%
Shenyang 1%
Langfang 2% Zhenjiang
2% Jiaxing 2%
12
Contracted Sales Breakdown
2015 2014
First-tier Cities 39%
Second-tier Cities 58%
Third-tier Cities 3%
Total 100%
Yangtze River Delta 72%
Pan Bohai 21%
Central Western Region 7%
Total 100%
RMB21.21 billion
Contracted ASP: RMB12,235/sq.m.
RMB30.21 billion
Contracted ASP: RMB14,692/sq.m.
* including joint ventures and associated companies
First-tier Cities 44%
Second-tier Cities 50%
Third-tier Cities 6%
Total 100%
Yangtze River Delta 65%
Pan Bohai 24%
Central Western Region 11%
Total 100%
Subsidiaries
58%
Joint Ventures/
Associated Companies
42%
Upgraders’ Residential
46%
First-time Purchasers’ Residential
44%
13
CIFI’s Attributable
Interest in 2015
13
Subsidiaries v.s.
Non-consolidated JVs
in 2015
Contracted Sales Breakdown (Cont’d)
Office/Commercial
10%
Product Mix in 2015
Attrib. to
CIFI
66%
Attrib. to
Joint Venture
Partners
34%
*including joint ventures and associated companies
14
Focused on 1st-tier and 2nd-tier cities in China
As of 31 December 2015,
Total GFA: 12.5M/sq.m.; Attributable GFA: 8.5M/sq.m.
Overall land cost: Approx. RMB 5,900/sq.m.
Positioning
Acquisition
Pace
Land
Acquisitions
in 2015
14
Pan Bohai
Rim
Tianjing Beijing
Changsha
Wuhan
Shenyang
Yangtze River
Delta
Chongqing
Central
Western
Region
Guangzhou
Pearl River
Delta
Hefei
Suzhou Nanjing Shanghai
Hangzhou
Attributable land cost: RMB13.1 billion
Average land cost: RMB 6,683/sq.m
City No. Attrib. RMB % of Total
Shanghai 4 1.7B 13%
Suzhou 3 2.4B 18%
Hangzhou 5 1.7B 13%
Nanjing 2 1.9B 14%
Hefei 1 1.1B 9%
Beijing 4 1.7B 13%
YRD Region 15 8.8B 67%
Pan Bohai 7 2.7B 21%
CW Region/Others 3 1.6B 12%
Seized ideal land-banking window in 2015
Abundant new saleable resources for next 2 years
Expanded into Southern China: Entering Guangzhou
with low land price
Nationwide, High-Quality &
Low-Risk Land-bank
15 15
Land Acquisitions in 2015
Shanghai 13%
Beijing 13%
Suzhou 18%
Hangzhou 13%
Nanjing 14%
Hefei 9%
Tianjin 6%
Wuhan 4%
Chongqing 5%
Shenyang 2%
Guangzhou 3%
By City
(% of Total Attrib.
Land Costs)
By Tier of City
(% of Total
Attrib. Land Costs)
Focus on 1st-tier and 2nd-tier Cities: YRD Region accounted for 67% of total attributable land costs
1st-tier and Robust 2nd-tier cities: Over 90%; upgraders’ residential projects: over 80%
By Project Type
(% of Total
Attrib. Land Costs)
Robust 2nd-tier
Cities: 67%
1st-tier
Cities:
26%
Other 2nd-tier
Cities: 7%
Upgraders’
Residential: 80%
Mass Market
Residential: 15%
Office/
Commercial: 5%
30.2
36.5
2015 201616 16
High Quality and Adequate
Saleable Resources in 2016
+21%
2016 Contracted
Sales Target (RMB Bil.)
Balanced supply of saleable resources in 1H & 2H 2016
New launches of at least 14 projects; actively selling over 30 projects throughout 2016
Accelerating sell-through, expediting construction, realizing saleable resources at high prices
Shanghai Songjiang Jiuting Project
Suzhou North Star CIFI No.1 Courtyard
Suzhou CIFI Park Mansion Lakeside
Nanjing North Star CIFI Park Mansion Jinling
Nanjing CIFI Park Mansion Qinhuai
Hangzhou CIFI Times City
Hangzhou Shunfa CIFI Honor Mansion (New)
New Project Launches in 2016
Hefei Luyang Project
Beijing Daxing Pangge Zhuang Project
Beijing Daxing Huangcun Project
Beijing No.26 Block
Wuhan Yulong CIFI Peninsula
Chongqing CIFI Jiangshan Yue
Shenyang CIFI Jin Court
Shanghai 25%
Suzhou 15%
Beijing 14% Hangzhou
9%
Nanjing 7%
Hefei 5%
Wuhan 5%
Tianjin 5%
Chongqing 6%
Changsha 4%
Shenyang 2%
Jiaxing 1% Zhenjiang
1%
Langfang 1%
Breakdown of 2016
Saleable Resources
by Value
Actual Target
Completed in May 2015
At HK$2.2 per share
Raised US$170M
Replaced Higher-cost Debts
Public Domestic Corporate Bonds
Financing & Liability Management:
Dual Onshore & Offshore Funding Platforms
Completed share placement in 1H 2015: Strengthened equity & improved stock liquidity
Repurchased shares at market weakness, enhancing shareholders’ value
Issued Domestic Corporate Bonds, proactively replacing higher-cost debts with low-cost funding
In Aug-Sep 2015 and Jan
2016, repurchased 109M
shares from the market at
HK$1.34-1.45 per share
Received an “AA” Onshore Rating in Oct-Nov 2015
Issued RMB 4B Domestic Public Corporate Bonds in Two Tranches
First Tranche: RMB 3.5B with a maturity of 3+2 years at 4.95%
Second Tranche: RMB 500M with a maturity of 5 years at 5.96%
Fully redeemed all higher-cost onshore
non-bank loans and onshore perpetual
capital instruments
Repaid ahead of maturity the entire
US$156M principal value of Offshore
Syndicated Loan due 2016
Repurchased US$40.8M principal
value of 2018 Due USD Bonds
In Jan 2016, received approval
for the issuance of RMB 6.0B
Domestic Private Corporate
Bonds
First Tranche: RMB 2.0B with a
maturity of 1+1 years at 4.99%
Private Domestic
Corporate Bonds
17
Share Buybacks
Share Placement
18 18
Shanghai Park Mansion Riverside Shanghai Park Mansion West Suzhou Park Mansion
Enhanced Product Capabilities,
Overwhelming Success in High-End “Park Mansion” Products
Established “CIFI Product Research Center” in 2014, substantially improved capabilities in fully-fitted
residential products
Jointly established “Tsinghua University CIFI Joint Research Center for Sustainable Residential
Developments” with Tsinghua University of China in 2015
Overwhelming market responses to the launches of three new high-end “Park Mansion” residential projects
in Shanghai and Suzhou in 2015
18
III. 2015 Financial Performance
19
20 20
2015 Annual Results
(RMB million) 2015 2014 YoY change
Recognized revenue 18,231 16,179 + 13%
- Property sales 17,047 15,654 + 9%
- Rental, property management and other incomes 1,184 525
Gross profit (reported) 4,144 4,187 - 1%
Gross profit (adjusted, excluding the accounting effects due to increase of equity interests in certain projects)
4,387 4,187 + 5%
Other incomes, gains and losses 542 247
Fair value changes 128 245
SG&A (980) (849)
Attributable to joint ventures and associate companies 173 (119)
Finance costs (203) (386)
Income tax (1,334) (1,325)
Non-controlling interests (337) (103)
Interests attributable to perpetual capital instruments (38) (36)
Net profit attributable to equity owners 2,095 1,861 + 13%
Core Net Profit Attributable to Equity Owners* 2,210 1,939 + 14%
21
* Core profit for 2015 excluded fair value gain in investment properties (RMB 128 m), net exchange loss (RMB 302 m), expenses
relating to share option grants (RMB 50M), loss on repurchase of senior notes (RMB21 m), and share of fair value gain (2015:
RMB465 m) and net exchange loss (RMB 176 m) at joint ventures and associate companies, with relevant deferred taxes
deducted and other adjustments (RMB 159 m).
** EBITDA consists of profit from operating activities before fair value gains on the investment properties, interest expenses (incl.
capitalized interest), income tax expenses, depreciation and amortization expenses, net exchange loss and other non-cash
items. EBITDA is not a standard measure under IFRS.
2015 Annual Results
(RMB million) 2015 2014 change
Net Profit Attributable to Equity Owners 2,095 1,861 + 13%
Core Net Profit Attributable to Equity Owners* 2,210 1,939 + 14%
Basic EPS, in RMB cents 32 31
Basic Core EPS, in RMB cents* 34 32 + 6%
EBITDA ** 5,228 4,316 + 21%
Gross profit margin (adjusted) 24.1% 25.9% - 1.8 pp
Core net profit margin * 12.1% 12.0% + 0.1 pp
EBITDA margin ** 28.7% 26.7% + 2.0 pp
22 22
Key Balance Sheet Figures
RMB million 31 Dec 2015 31 Dec 2014 YoY change
Bank balances and cash 14,905 7,124 +109.2%
Pledged bank deposits 32 30
Total assets 67,452 43,539 + 54.9%
Total equity 15,283 11,583 + 31.9%
- Non-controlling interests 2,456 792
- Perpetual capital instruments (onshore) - 586
- Equity attributable to equity owners 12,827 10,205 + 25.7%
Total indebtedness (1) 23,955 13,861 + 72.8%
Guaranteed indebtedness attributable to
associated companies by the Group (off-
balance sheet)
2,744 1,997
Unpaid land premium, attributable to the
Group (off-balance sheet) 3,226 2,854
23 23
Key Balance Sheet Figures
RMB million 31 Dec 2015 31 Dec 2014
YoY
change
Net debt-to-equity ratio (2) 59.2% 58.2% + 1 pp
Net debt-to-equity ratio (2)
(onshore perpetual instruments treated as debt)
59.2% 63.2% - 4 pp
Weighted average costs of indebtedness (p.a.) (3) 7.2% 8.3% - 1.1 pp
Onshore - Average costs of bank loans 6.6% 7.0% -0.4 pp
- Average costs of corporate bonds 5.0% - n.a
Offshore - Average costs of bank loans 4.5% 6.0% -1.5 pp
- Average cost of senior notes 9.8% 11.0% -1.2 pp
Note:
1. Total indebtedness includes bank and other loans, onshore bonds and offshore senior notes
2. Net debt-to-equity = (Total indebtedness – Cash (incl. Restricted Cash)) divided by Total Equity
3. Weighted average cost of indebtedness = Weighted average of interest costs of all indebtedness outstanding as at end of
year (p.a.)
4
7
11
14
2012 2013 2014 2015
24 24
8,144
2012 2013 2014 2015
11,909
921
1,519
1,939
2,210
2012 2013 2014 2015
Recognized Revenue
(RMB million)
Core Net Profit
(RMB million)
Full-Year Dividend
(Equiv. to HK Cents per Share)
2015: +13% YoY 2015: +14% YoY
2015: +27% YoY
Recognized Revenue,
Core Net Profit & Dividend
16,179
18,231
1st-tier Cities 45%
2nd-tier Cities 49%
3rd-tier Cities 6%
Total 100%
25
Recognized property sales in FY2015 was contributed by 35 projects in 13 cities
Recognized revenue: RMB17.05 billion; recognized ASP: RMB12,873/sq.m.
Shanghai 37%
Beijing 21%
Suzhou 17%
Tianjin 5%
Hefei 5%
Chongqing 4%
Changsha 5%
Langfang 4%
Zhenjiang 1%
Jiaxing 1%
Yangtze
River Delta 65%
Pan Bohai 27%
Central-
Western 8%
Total 100%
RMB 17.05 billion
Recognized ASP︰RMB 12,873/sqm.
RMB 15.65 billion
Recognized ASP︰RMB 11,047/sqm.
2015 2014
Residential 89%
Office &
Commercial 11%
Total 100%
Yangtze
River Delta 60%
Pan Bohai 30%
Central-
Western 10%
Total 100%
1st-tier Cities 58%
2nd-tier Cities 37%
3rd-tier Cities 5%
Total 100%
Residential 82%
Office &
Commercial 18%
Total 100%
Recognized Revenue –
Property Sales in 2015
Shanghai 29%
Beijing 16%
Suzhou 17%
Tianjin 9%
Hefei 9%
Hangzhou 5%
Wuhan 4%
Changsha 4%
Shenyang 1%
Langfang 1% Zhenjiang
1% Jiaxing
4%
26 26
Stable Profit Margins
• Gross Margin adjusted to exclude impact of re-measurement of fair
value due to acquisition of interests in project companies
** EBITDA consists of profit from operating activities before fair value
gains on the investment properties, interest expenses (incl.
capitalized interest), income tax expenses, depreciation and
amortization expenses, net exchange loss and other non-cash
items. EBITDA is not a standard measure under IFRS
23.7%
25.8% 25.9% 24.1%
2012 2013 2014 2015
11.3%
12.8% 12.0% 12.1%
2012 2013 2014 2015
23.1%
27.2% 26.7%
28.7%
2012 2013 2014 2015
EBITDA Margin ** Gross Margin *
Core Net Profit Margin
27 27
Debt structure 31 December 2015 31 December 2014
RMB
million
% of
total debt
RMB
million
% of
total debt
By loan type
Onshore bank loans 9,169 38% 7,759 56%
Onshore corporate bonds 4,021 17% - -
Onshore other loans - - 810 6%
Offshore bank loans 2,489 10% 935 7%
Offshore senior notes 8,276 35% 4,357 31%
By collateral
Unsecured 15,024 63% 5,292 38%
Secured 8,931 37% 8,569 62%
By maturity
Due within 1 year 2,794 12% 3,035 22%
Due between 1-2 years 3,569 15% 4,136 30%
Due between 2-3 years 6,890 29% 1,761 13%
Due between 3 to over 5 years 10,702 44% 4,929 35%
Debt Structure: Continued Improvements
28 28
10.0%
9.2%
8.3%
7.2%
2012.12.31 2013.12.31 2014.12.31 2015.12.31
-1.1 pp
Weighted Average Interest Cost
38%
22% 22%
12%
2012.12.31 2013.12.31 2014.12.31 2015.12.31
-10 pp
Proportion of Debts Due within 1 Year
31%
38%
51%
44%
2013.12.31 2014.12.31 2015.6.30 2015.12.31
-7 pp
Proportion of Offshore Debts Proportion of Unsecured Debts
4%
31% 38%
63%
2012.12.31 2013.12.31 2014.12.31 2015.12.31
+25 pp
Debt Structure:
Continued Improvements (Cont’d)
2.7x 3.1x
3.5x 3.2x
2012 2013 2014 2015
29 29
62.5% 67.6%
63.2% 59.2%
2012.12.31 2013.12.31 2014.12.31 2015.12.31
4.7x
4.1x
3.2x
4.6x
2012.12.31 2013.12.31 2014.12.31 2015.12.31
17% 18%
16%
2012.12.31 2013.12.31 2014.12.31 2015.12.31
* Only used to compare net gearing ratio, accounting onshore perpetual instruments as debt
** Interest Coverage Ratio = EBITDA over Interest Expenses
Prudent Financial Management
Net Gearing Ratio* Cash/Total Assets Ratio
Debt-to-EBITDA Ratio Interest Coverage Ratio**
22%
27.2
30.2
Cash Collection* Contracted sales*
90%
30
2015 Operating Cash Flow & 2016 Guidance
Focus on 1st- and 2nd-tier cities where end-users find it easier to obtain mortgage loans
Abundant liquidity from domestic banks
Among top property developers in terms of annual contracted sales growth & cash collection ratio
Cash Collection Ratio in 2015
(RMB billion) 2015
(Actual)
2016
(Guidance)
Operating cash outflow
Committed land acquisition (attrib. to CIFI) 12.7 4.0
Land acquisition budget ** (attrib. to CIFI) - 6.0
Construction CAPEX (attrib. to CIFI) 6.5 7.5
Taxes 2.4 2.8
Interests 1.6 1.6
SG&A 1.0 1.1
24.2 23.0
CAPEX & Cash Outflow in 2015 & 2016
(RMB billion)
* Contacted sales included those at JV and associate companies’ projects
** Expenditure on committed land acquisition in 2016 included unpaid committed land premium as at 31 December 2015 and
further commitments to land purchases before results announcement in 2016
31
IV. 2016 Outlook
32
2016 Market Outlook
Loose monetary policies and lower financing cost favour listed property developers
Facilitating inventory clearance in property sector
Overheated property markets in some cities may imply “appropriate policy action”
Policy Trends
Physical Market
Land Market
Overall transaction volume will grow steadily in 2016
Uneven market performance by city and by region will persist
Transaction volume and prices in most 1st- and 2nd-tier cities will be steady
Recovery in 3rd-tier cities remains most uncertain
Heated up land markets in most 1st- and 2nd-tier cities
Land price in certain cities have already exceeded prevailing housing prices
33 33
CIFI’s Targets and Strategies for 2016
Pursues strategy of “sustainable, balanced and quality growth”
Emphasizes growths in both scale and profitability
Favorable Policies,
Loose Monetary Environment
Aggressive Sales,
Improving Profitability
Accelerating Sell-through
& Inventory Clearance
Prudent Investments,
Preserving Cash
High asset turnover and high profitability, in parallel
Adopts operating models with appropriate asset turnover ratios according
to differences in cities and projects to achieve optimal investment return
and cash flow
Improves sell-through rate and accelerates inventory clearance
Balanced launches of projects in both 1H & 2H 2016 and realizes saleable
resources at high prices
Further enhances product capabilities
Increases the proportion of higher-end residential products
Reduces land investments to well-position for the next land-banking window
Controls risk, preserves cash and selectively acquires lands with good value
Strategies
Operating Model
Operating Rhythm
Product Capabilities
Land Acquisition
34
V. Appendix
35 35
Appendix: Land Acquisitions in 2015
Date of
AcquisitionCity Project
CIFI’s
Equity
(%)
Intended
Primary Use
Total
Planned GFA
(excl.
carparks,
sq.m.)
Total Consideration
(RMB)
Attributable
Consideration
(RMB)
Average Land
Cost (RMB/sqm) JV Partners
2015-3 Tianjin CIFI Yannan Garden 100.00 Residential 208,500 672,100,000 672,100,000 3,224 N/A
2015-3 Shanghai BCL CIFI The Great City 40.00 Residential 246,200 1,332,000,000 532,800,000 5,410 首创
2015-3 Beijing Vanke World 26.50 Office /
Commercial 94,800 763,000,000 202,195,000 8,049 万科/首开 等
2015-4 Suzhou Henderson CIFI City 50.00 Residential 394,100 1,400,000,000 700,000,000 3,552 恒基
2015-4 Shanghai Shangkun CIFI Villa 50.00 Residential 61,800 780,000,000 390,000,000 12,621 上坤
2015-4 Hangzhou Longfor CIFI Chunjiang City 35.00 Residential 109,800 823,886,000 288,360,100 7,504 龙湖/顺发
2015-4 Hangzhou Shunfa CIFI Honor Mansion 30.00 Residential 98,300 1,084,100,000 325,230,000 11,028 顺发/北辰
2015-4 Beijing CIFI No.26 Block 10.00 Office /
Commercial 206,700 1,380,000,000 138,000,000 6,676 龙湖/金地/远洋/首创 等
2015-6 Suzhou North Star CIFI No.1 Courtyard 50.00 Residential 180,500 960,000,000 480,000,000 5,319 北辰
2015-6 BeijingDaxing District Yinghai Town
Jiangchang Cun Project 59.50 Residential 19,000 225,000,000 133,875,000 11,842 汇璟/鑫起达/中金广大
2015-6 BeijingDaxing District Pangge Zhuang
Town Project 49.00
Residential /
Office /
Commercial
266,200 2,410,000,000 1,180,900,000 9,053 天恒
36 36
Appendix: Land Acquisitions in 2015 (Cont’d)
Date of
AcquisitionCity Project
CIFI’s
Equity
(%)
Intended
Primary Use
Total
Planned GFA
(excl.
carparks,
sq.m.)
Total Consideration
(RMB)
Attributable
Consideration
(RMB)
Average Land
Cost (RMB/sqm) JV Partners
2015-6 Chongqing CIFI Jiangshan Yue 30.00 * Residential 635,700 2,329,000,000 698,700,000 3,664 平安不动产/东原
2015-6 Shanghai CIFI Park Mansion West 38.30 Residential 60,700 897,660,000 343,354,950 14,788 新安亭国际汽车城/
颖奕集团
2015-6 Suzhou CIFI Park Mansion Lakeside 40.00 Residential 209,700 3,100,000,000 1,240,000,000 14,783 平安不动产
2015-8 Nanjing CIFI Park Mansion Qianhuai 100.00 Residential 80,400 1,150,000,000 1,150,000,000 14,303 N/A
2015-8 Shenyang CIFI Jin Court 100.00 Residential 70,100 294,590,000 294,590,000 4,203 N/A
2015-9 Tianjin Jinnan District No.2013-26 Project 20.00 Residential 147,900 431,550,000 86,310,000 2,918 首创/华远/金地 等
2015-9 Wuhan Yulong CIFI Peninsula 55.00 Residential 289,000 909,090,909 500,000,000 3,146 钰龙
2015-9 Hangzhou CIFI Times City 100.00 Residential 129,800 337,430,000 337,430,000 2,600 N/A
2015-9 Hangzhou Xiaoshan District Baolong Project 33.00 Residential 143,900 735,515,151 242,720,000 5,111 万科/润和
2015-9 NanjingNorth Star CIFI Park Mansion
Jinling 49.00 Residential 70,700 1,500,000,000 735,000,000 21,216 北辰
2015-10 Shanghai
Songjiang District, Jiuting Town,
Unit A, No. 11A-01A/15A-01A
Project
34.00 Office /
Commercial 227,100 1,236,000,000 420,240,000 5,443 金地/宝龙
2015-12 Heifei Luyang District, 212 acres Project 50.00 Residential 239,000 2,253,030,000 1,126,515,000 9,427 北辰
2015-12 HangzhouXiao Shan District, Olympic Park
FG16-04 Project 100.00 Residential 86,400 522,000,000 522,000,000 6,042 N/A
2015-12 Guangzhou
Liwan District No.111, Baihua
Road, Bai Hua Xiang Liao Chang
Project
19.00 * Residential 143,600 2,011,030,000 382,095,700 14,004 保利/中铁建 等
2015 In Total 4,419,900 29,536,982,060 13,122,415,750 6,683