Investor Presentation 2008

Transcription

1 Investor Presentation 2008

2 Contents Page Group structure Business model 2008 Final results summary Business in Hong Kong Property development business Property investment business Business in mainland China Property development business Property investment business Strategic investments Market outlook Appendix project showcase Investor contact

3 Group structure Dr. Lee Shau Kee and/or his family trust 53.41% Henderson Land Development Company Limited ( HLD ) 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 HK Ferry HKCG Miramar Effective interest in listed associates Before reorganization 21.31% 26.54% 30.04% After reorganization 31.36% 39.06% 44.21% Towngas China Company Limited 45.63% Sale & distribution of LP gas & natural gas in mainland China Company & subsidiary Associates -3 -

4 Business model Mainland China Property investment business Property development business Strategic investments Hong Kong -4 -

5 2008 Final results summary Note 2008 HK$ million 2007 HK$ million Change Property sales - Revenue 1 11,163 7,895 41% - Profit contribution 2 4,385 3,825 15% Net rental income 3 2,728 2,381 15% Profit attributable to Shareholders - Reported profit 15,472 9,818 58% - Underlying profit 4 5,707 5,883 3% - Adjusted underlying profit 5 5,707 4,945 15% HK$ HK$ Earnings per share - Based on reported profit % - Based on underlying profit % - Based on adjusted underlying profit % Dividends per share Net asset value per share % Adjusted net asset value per share % Net debt to shareholder s equity 16.5% 9.5% 7 percentage points -5 -

6 2008 Final results summary Notes: 1) Representing the Group s attributable share of the value of properties in Hong Kong and mainland China sold by subsidiaries, associates and jointly controlled entities ( JCEs ) 2) Including the Group s attributable share of profit contribution from property sales in Hong Kong and mainland China by associates and JCEs 3) Including the Group s attributable share of net rental income from investment properties in Hong Kong and mainland China held by associates and JCEs 4) Excluding the surplus on revaluation (net of deferred tax) of the investment properties held by subsidiaries, associates and JCEs 5) After excluding the non-recurrent income included in the results for the year ended 30 June 2007 totalling HK$938 million made up of the excess, amounting to HK$352 million, of the fair values of net assets comprised in the companies acquired from Henderson Investment Limited during that year over the consideration paid, and the Group s share of gain of HK$586 million arising from the disposal by an associate of ten piped city-gas joint venture projects 6) Representing amount attributable to equity shareholders of the Company 7) As there is no capital gains tax in Hong Kong, total deferred tax liabilities arising from the revaluation of the investment properties held by subsidiaries, associates and JCEs in the amount of HK$7,710 million (2007: HK$6,750 million), equivalent to HK$3.59 per share (2007: HK$3.47 per share), as provided for and included in the Group s consolidated balance sheet would not be payable if these investment properties were to be sold at the revalued amounts under the current tax regime. Accordingly, such deferred tax as provided under HKAS-INT 21 has been excluded from the above calculation in order to provide a better understanding of the net asset value attributable to equity shareholders of the Company -6 -

7 2008 Final results summary Highlights Steady increase of 15% in profit contribution from property sale - Revenue growth in Hong Kong and mainland China were 25% and 100% respectively - Major contributors (residential projects): Hong Kong Mainland China The Beverly Hills (Phase 1), King s Park Hill, Grand Waterfront, Grand Promenade, The Sherwood, Centre Stage, Centre Place and Royal Green - A non-residential project in Hong Kong, Midas Plaza, was completely sold out within 4 months after its launch in August 2007 Higher contribution from net rental income ( 15%) Hengli Bayview, Guangzhou Hong Kong Mainland China Gross rental income 10% 33% Net rental income 11% 99% Satisfactory performance in the adjusted underlying profit attributable to shareholders ( 15%) Low level of gearing at 16.5% Net asset value per share increased 19% to HK$56.5 per share while adjusted net asset value per share grew by 18% to HK$60.1 per share -7 -

8 Business in Hong Kong Property development business Land bank Note At 30 June 2008 Million square feet Attributable floor area At 30 June 2007 Million square feet Attributable floor area Major additions Sha Tin Town Lot 539 Properties held for/under development Completed investment properties Conduit Road Major additions Agricultural land Total land area 34.0 Total land area 31.7 Kwun Tong 223 Notes: 1) Including stock of unsold property units in Hong Kong with attributable floor area of 1.0 million sq. ft. as at 30 June 2008 (2.8 million sq.ft. as at 30 June 2007) 2) Including Hong Kong hotel properties with attributable floor area of 1.0 million sq. ft. as at 30 June 2007 and 30 June 2008 Agricultural land 9.0M sq. ft. 1.0M sq. ft. 34.0M sq. ft. Completed investment properties Hotel properties 1.0M sq. ft. Stock 18.4M sq. ft. Properties held for / under development 7.4M sq. ft. -8 -

9 Business in Hong Kong Land bank (Continued) Acquisition of development projects: Sha Tin Town Lot 539 and 39 Conduit Road Sha Tin Town Lot No. 539 No. 39 Conduit Road Ownership GFA Project description 100% Total and attributable : 358,048 sq. ft. Two blocks of 33-storey residential towers together with four blocks of low-rise residential buildings and ancillary parking spaces and other facilities 60% Total: 229,255 sq. ft. Attributable: 137,553 sq. ft. A single block of 46-storey residential building, providing 66 residential units, parking spaces and clubhouse facilities Note: There is a guarantee by the vendor which provides that, for each of the developments, upon the expiry of two years from the date that the occupation permit for the development is issued, the gross sale price of the units sold together with the value of the unsold units at such date shall be not less than a sum representing a 25% premium over the discounted development value Acquisition of agricultural land with high development potential - About 2.3 million sq. ft. of agricultural land in site area was acquired during the year - The Group also held approximately 2.6 million sq. ft. and 2.3 million 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

10 Business in Hong Kong Land bank (Continued) Encouraging progress made in land-use conversion Land site Ownership Approximate attributable GFA (sq. ft.) Proposed usage Latest progress 24 Lee Chung Street, Chai Wan 100% 173,000 Office - Land premium for land use conversion has been finalized with the Government - Demolition of the existing industrial building on the site is in progress 8 Wang Kwong Road, Kowloon Bay 100% 258,000 Office / Hotel - Pursuing land-use conversion Wong Chuk Hang Road, Aberdeen 50% 107,000 Office - Pursuing land-use conversion Wu Kai Sha, Sha Tin 53.75% 1,600,000 Residential - Basic terms for land exchange have been agreed with the Government - Conversion will be completed upon finalization of the land premium Tai Tong Road, Yuen Long 79.03% 900,000 Residential - Basic terms for land exchange have been agreed with the Government - Conversion will be completed upon finalization of the land premium Chuk Yuen Tsuen, Yuen Long (next to Fairview Park) 100% 28,000 Residential - Conversion of land has been approved by the Government - Land premium is currently under negotiation Wo Shang Wai. Yuen Long (Next to Royal Palms) 100% 890,000 Low-density residential - Environmental impact assessment has been approved and environmental permits have been obtained from the Director of Environmental Protection - Application has been made to the Town Planning Board for the necessary approval before negotiating with the Government for land exchange and land conversion premium Yau Tong Bay % 800,000 Residential - The Town Planning Board completed its review on the Yau Tong Bay Comprehensive Development Area zone and amended the Outline Zoning Plan - The Group will proceed to apply for land exchanges and finalization of the land premium - A master layout plan will also be drafted for the redevelopment of the old shipyard sites there -10 -

11 Business in Hong Kong Residential units available for sale Major development projects offered for sale No. of units unsold & pending sale as at year end 404 Gross area of unsold units (sq. ft.) 860,206 Gross area attributable to the Group: 781,024 Projects pending sale or pre-sale 1,030 1,488,085 Gross area attributable to the Group: 1,335,643 Total saleable residential units and total residential gross area from the major development projects 1,434 2,348,291 Total gross area attributable to the Group: 2,116,667 Market response on pre-sale The Sparkle Approximately 80% of the total of 400 residential units were pre-sold by the year end Upcoming projects to be launched Residential: Non-residential: The Beverly Hills (Phase 3), Nos Headland Road, No. 33 Lai Chi Kok Road, No. 39 Conduit Road, Tong Yan San Tsuen, Sha Tin Town Lot 539 and Fanling Sheung Shui Town Lot 231 Win Plaza and 52 Hung To Road -11 -

12 Business in Hong Kong Property investment business Investment properties portfolio in Hong Kong 0.8M sq. ft. 9% 3.2M sq. ft. 36% 0.6M sq. ft. 7% 4.4M sq. ft. 48% 45% 30% 25% Commercial Office I/O Residential & Apartment Hong Kong Kowloon New Territories Leasing rate remained high at 94% for the Group s core rental properties (which excluded Kwun Tong 223 as it was only just completed) Investment property Leasing rate Commercial Office IFC Mall, Central - Metro City Phases II & III, Tseung Kwan O - Sunshine City Plaza, Ma On Shan - City Landmark I & II, Tsuen Wan - Citimall, Yuen Long - Flora Plaza, Fanling - Shatin Plaza & Shatin Centre, Sha Tin One & Two IFC, Central AIA Tower, North Point Golden Centre, Sheung Wan Almost fully let 97% or above Almost fully let 95% 96% -12 -

13 Business in Hong Kong High reversionary potential resulted from new lettings and leases renewals - Particularly for IFC Complex due to its unique position and limited office supply in Central Value enhancement thru face-lift, facility upgrade and renovation of retail malls and office building Examples: - Conversion of cinema into additional retail space of Trend Plaza, Tuen Mun - Development of Metro City, Tseung Kwan O into a regional shopping and entertainment hub - A major renovation of Kowloon Building on Nathan Road More tenants were secured for Kwun Tong A big 4 accounting firm has leased an area of up to about 100,000 sq. ft. and has started moving in - An international shipping company has leased an area of over 60,000 sq. ft. - Some other multinational corporations have also signed the leasing confirmation -13 -

14 Business in mainland China Property development business Land bank A Two-pronged strategy Attributable GFA Beijing 2 Shanghai 3 Guangzhou Prime cities: 20.1 million sq. ft Changsha, Hunan 5 Chongqing 6 Nanjing, Jiangsu 7 Shenyang, Liaoning 8 Suzhou, Jiangsu nd-tier cities: 95.6 million sq. ft. 9 Xian, Shaanxi Xuzhou, Jiangsu Yixing, Jiangsu 9.7 TOTAL at June TOTAL at 31 August 2007* * As disclosed in our 2007 annual report -14 -

15 Business in mainland China Land bank (Continued) Major acquisitions since September 2007 to the year end Project Ownership Land use Accommodation value (RMB/sq. ft.) Attributable GFA (M sq. ft.) Donggui New District, Yixing 100% Residential Qixia District, Nanjing 90.1% Residential Gaoling area, Changsha 55% Residential Xiangcheng District, Suzhou 100% Commercial Xianlin New District, Nanjing 100% Residential Total 16.7 Note: Shortly after the end of the financial year, the Group entered into a joint venture agreement with Sun Hung Kai Properties and Wharf on a 30:40:30 ownership basis to jointly develop a composite development of approximately 1,860,000 sq. ft. in Dongda Avenue in Chengdu, the capital city of Sichuan Province. There is an adjoining site of approximately 350,000 sq. ft. which will be sold to the project company at the same unit price at a later stage. Upon completion, a total gross floor area of over 13,000,000 sq. ft. will be provided -15 -

16 Business in mainland China Land bank (Continued) Predominance of residential project for sale, supplemented by retail space & office for rental Breakdown of land usage 9% 11% 2% 78% Residential development for sale Commercial Office Clubhouse & other communal use Reasonable level of land premium and limited level of outstanding amount - The outstanding balance as at 30 June 2008 was RMB1,379 million -16 -

17 Business in mainland China Schedule of completion Project name and location For the year ending 30 June 2009 World Financial Centre, Chao Yang District, Beijing For the year ending 30 June 2010 Lot 155, Nanjing Road East, Huangpu District, Shanghai Tianmu Road West, Zhabei District, Shanghai Phase 1, The Champion Arch, Xingsha Town, Changsha Part of Phase 1, Project in Erlang Phoenix Area, Chongqing Phase 1, residential project in Xiangcheng District, Suzhou Part of Phase 1, Xuzhou Lakeview Development, Xuzhou Phase 1, Project in Donggui New District, Yixing For the year ending 30 June 2011 Lot 688, Nanjing Road West, Jingan District, Shanghai 147 Tianmu Road West, Zhabei District, Shanghai Phase 2, The Champion Arch, Xingsha Town, Changsha Part of Phase 1 & Phase 2, Project in Erlang Phoenix Area, Chongqing Phase 1, Nan an District Riverside Development, Chongqing Phase 2, residential project in Xiangcheng District, Suzhou Part of Phase 1, project in Qixia District, Nanjing Part of Phase 1, project in Xianlin New District, Nanjing Part of Phase 1 & Phase 2, Xuzhou Lakeview Development, Xuzhou Phase 1, La Botanica, Chan River, Xian Project in Second Ring Road East, Xian Phase 2, Project in Donggui New District, Yixing Project in an island of Yicheng, Yixing Group s share of developable gross floor area (million square feet)* million sq. ft. 4.8 million sq. ft million sq. ft. *Excluding basement areas and carparks -17 -

18 Business in mainland China Property sale and pre-sale Planned sale - About 11% out of a total of 2,090 units of Hengli Bayview in Guangzhou remaining available for sale by the year end - These units are to be launched in 3rd quarter of 2008 Schedule of pre-sale For the calendar year 2008 Phase 1, La Botanica, Xian (Referring to Xian Chanhe East Development) For the calendar year 2009 Project in Second Ring Road East, Xian Phase 1, Xuzhou Lakeview Development, Xuzhou New Town Phase 1, Residential Project in Xiangcheng District, Suzhou Project in an island of Yicheng, Yixing Phase I, Project in Donggui New District, Yixing Expected time for pre-sale 4th quarter, st/2nd quarter, nd quarter, 2009 Mid-2009 Mid rd quarter, 2009 Group s share of developable GFA (Million sq. ft.)

19 Business in mainland China Property investment business Project name and location Commercial Podium & Car Parks Henderson Centre, Beijing Skycity, Shanghai Hengbao Plaza, Guangzhou Office Office Tower II, Grand Gateway, Shanghai Group s interest Sub-total 100 Sub-total Total Group s share of developable gross floor area (million square feet) Upcoming addition Existing portfolio 2.1million sq. ft. 40% 2.4 million sq. ft. 47% 0.7 million sq. ft. 13% Commercial Office World Financial Centre -19 -

20 Business in mainland China Satisfactory leasing performance - Grand Gateway Tower II in Shanghai was over 98% let by the year end, with close to 30% rental increase on lease renewal and new lettings - Shanghai Skycity commanded over 100% rise in rental for a new letting to an anchor tenant occupying almost the entire shopping arcade - Hengbao Plaza in Guangzhou recorded a 57% growth for its monthly rental income in June 2008 compared with June 2007 Commencement of pre-leasing for World Financial Centre - Completion is scheduled in the 4th quarter of Commitment of a renowned multinational corporation has been secured - Negotiations with a host of top-notch international financial services groups and professional firms are near the final stage -20 -

21 Strategic investments The Hong Kong and China Gas Company Limited Towngas China Company Limited Profits attributable to shareholders & dividends paid A combined total of 80 projects, spread across 17 provinces/municipalities, encompassing natural gas sectors, the water supply and wastewater treatment sector and natural gas filling stations in mainland China. Interim dividend for 2008 attributable to HLD amounted to HK$312M. HK$M 10,000 9,000 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0 Hong Kong Ferry (Holdings) Company Limited 9,270 5,281 5,863 3,287 1,967 1,936 1,928 2,121 2, H2008 Principally engaged in property development and property investment businesses. Dividend for the year of 2007 amounted to HK$128M (out of which HK$40M were attributable to HLD). Miramar Hotel and Investment Company, Limited Activities include: Hotel ownership and operation, property business, restaurants operation & travel services. Profit attributable to shareholders 14% for the year ended 31 March Dividend for the year of 2008 amounted to HK$225M (out of which HK$99M were attributable to HLD)

22 Market outlook Hong Kong HK property market has shown a moderate consolidation after experiencing a price rally in the run-up from the 4th quarter to early However, the prevailing low mortgage rate, reasonable affordability and the low completion volumes for private residential units in the coming few years should lend support to the local residential property market. Sources: Transport and Housing Bureau, Rating and Valuation Department, The Land Registry The local property leasing market is expected to perform steadily in the year ahead. The recent announcement by a multinational retail giant to set up its regional headquarters in Hong Kong is testimony to the territory as the preferred venue from which leading global companies manage their businesses in mainland China and elsewhere in Asia

23 Market outlook Mainland China The macroeconomic policies announced by the Central Government in late 2007 are to curb speculation in mainland and stabilize housing prices. The Group s residential property development projects in mainland China are all located in the 2nd- tier cities. Due to a much moderate rise in property price in the past, 2nd-tier cities are found relatively less affected by the austerity policies. For 2nd-tier cities that are located in the high-growth and populous provincial capitals and municipalities with strong purchasing power, demand for quality housing is still intact, particularly given the trend of growing urbanization. Rentals from office and commercial properties, which largely increase in line with economic growth, will have relatively low exposure to austerity risk

24 Appendix -24 -

25 Project showcase - Hong Kong The Beverly Hills, Tai Po (Ownership: 90.1%) Location Attributable GFA Residential units Expected completion Tai Po, New Territories 1,049,881 sq. ft. 535 Oct 2008 (Phase 3) Features Luxury sea view villa with 5-level grand clubhouse & >1.8Msq. ft. greenery & recreation area -25 -

26 Project showcase - Hong Kong International Finance Centre Complex (Ownership: 40.38%) Location Attributable GFA Features Central, Hong Kong Office: 764,308sq. ft. Commercial: 258,443sq. ft. Serviced suite: 214,035sq. ft. International grade A offices located at the heart of Central Shopping malls fully let Four Seasons Hotel/Suite hotel Four Seasons Place most sought after of their kind -26 -

27 Project showcase - Hong Kong Kwun Tong 223, Kwun Tong (88.5%) Location Transportation Attributable GFA Date of completion Features Floor size Target tenants Kwun Tong, Kowloon Road infrastructure: Kwun Tong bypass & Tseung Kwan O Road MTR 966,864sq. ft. (Office: 95%, Commercial: 5%) End of 2007 Two grade-a office towers with advanced intelligent automation, a retail podium, 130,000sq. ft. club & conference facilities Typical floor: ~30,000sq. ft. Link floor: ~62,000sq. ft. Back office of banks, logistics companies & mid cap companies -27 -

28 Project showcase - mainland China World Financial Centre, Beijing (Ownership: 100%) Location Attributable GFA Features Floor size Target tenants Expected completion Located at the intersection of East 3rd Ring Road and Chaoyang Road, bordering south of Chaoyang Road and west of East 3rd Ring Road 2,100,000sq. ft. (excluding an area of basement of 600,000sq. ft. - 1, 278 car parking spaces) Two identical 22-storey international grade A office complex with trading floors designed by Cesar Pelli Approximately 48,000sq. ft. (the largest in Beijing) MNCs, Investment banks & large CPA & law firms 4th quarter,

29 Project showcase - mainland China World Financial Centre, Beijing (Ownership: 100%) CCTV Building 中國中央電視台 China World Hotel 中國大飯店 CHAOYANG ROAD 朝陽路 EAST 3RD RING ROAD 東三環路 Jing Guang Centre 京港中心 -29 -

30 Project showcase - mainland China Nanjing Road, Shanghai (Ownership: 100%) Lot 688, Nanjing Rd W. Lot 155, Nanjing Rd E. Location Downtown of Jingan District In Huangpu District Right on the pedestrian shopping avenue Interchange point of two subways at its basement Attributable GFA 700,000sq. ft. (excluding an area of basement of 200,000sq. ft.) 700,000sq. ft. (excluding an area of basement of ~300,000sq. ft.) Usage Office & retail space held for rental purpose Features A 22-storey office tower plus a 2-level retail podium A Grade A office building and shopping arcade with a 17-storey tower over five levels of podium Designer Kenzo Tange Associates Expected completion 2011 Late

31 Project showcase - mainland China Development Nanjing Road,project Shanghai showcase (Ownership: Nanjing 100%) Road, Shanghai Nanjing Road West Lot 688, Nanjing Rd W. Lot 155, Nanjing Rd E. Location Downtown of Jingan District In Huangpu District Right on the pedestrian shopping avenue Interchange point of two subways at its basement Total GFA 700,000 sq ft (excluding an area of basement of 200,000 sq ft) 700,000 sq ft (excluding an area of basement of ~300,000 sq Road ft) Nanjing East Usage Office & retail space held for rental purpose Designer Kenzo Tange Associates Expected completion Late 2009 Current price for comparable units (Note) Office: US$36+/sq m Office: US$28+/sq m

32 Project showcase - mainland China Tianmu Road, Shanghai (Ownership: 100%) Location Attributable GFA Usage Expected completion At the junction of two main roads Zhabei District 400,000sq. ft. (excluding an area of basement of ~100,000sq. ft.) Office & retail space Mid-2009 to early Tianmu Rd W. 147 Tianmu Rd W. Right next to railway & subway stations Zhabei District 400,000sq. ft. (excluding a 2-storey basement) -32 -

33 Project showcase - mainland China Hengli Bayview, Guangzhou (Ownership: 80%) Location GFA Features Target buyers Completion Residential units pre-sold Average price of its latest phase of development Li Wan District Total: 2,100,000sq. ft. Attributable: 1,700,000sq. ft. 9 residential towers of storeys, a 2-level commercial podium, 2-level car park basement & a kindergarten Middle to high income families February 2008 About 89% RMB11,000 per sq. m

34 Project showcase - mainland China Shenyang International Finance Centre (Ownership: 100%) Location Downtown of Shenyang Finance & Trade Development Zone with direct connections at basement to Metro & North Railway Station Shenyang is the economic, industrial and commercial hub of North East China with a number of manufacturing facilities set up by international corporations (such as BMW, Cessna, Boeing & Yuanda) Attributable GFA 5,700,000sq. ft. Features The landmark tower is the first international grade A office building in North East China It is the tallest in North East China & one of the Top 10 tallest in the world A totally integrated development with: - 89-storey landmark office tower (~3,000,000sq. ft.) - 40-storey hotel (~1,000,000sq. ft.) - 40-storey services apartments (~1,000,000sq. ft.) - 4-storey retail entertainment mall (~600,000sq. ft.) World class design team - Design architect: Pei Partnership - Project architect: Adeas Land cost Ground breaking Expected completion RMB616M (RMB108 per sq. ft. or RMB1,176 per sq. m.) May

35 The Golden Corridor Project showcase - mainland China Shenyang International Finance Centre (Ownership: 100%) PROVINCIAL GOVERNMENT 省政府 CITY GOVERNMENT 市政府 -35 -

36 Project showcase - mainland China A comparison between Hong Kong IFC & Shenyang IFC Project Hong Kong IFC Shenyang IFC Retail GFA Office GFA Hotel & serviced apartment GFA Total GFA Height of landmark tower No. of floors of landmark tower Approximate floor area per floor Approximate lettable area per floor No. of trading floor Floor-to-floor height Clear ceiling height Raised floor Executive facilities provided Security provisions Air-conditioning ~600,000sq. ft. ~2,800,000sq. ft. ~1,100,000sq. tt. ~4,500,000sq. ft. 420m 88 ~31,000sq. ft. ~23,000sq. ft. 22 Typical: 4.17m; Trading: 4.85m Typical: 2.7m; Trading: 3.3m Typical: 0.19m; Trading: 0.34m Executive toilet with shower, VIP lifts & etc Octopus Card access system, 24 hours back up central control room, Digital CCTV System VAV system ~600,000sq. ft. ~3,000,000sq. ft. ~2,100,000sq. ft. ~5,700,000sq. ft. 427m 89 ~33,000sq. ft. ~27,000sq. ft. 18 Typical: 4.2m; Trading: 5.6m Typical: 2.8m; Trading: 4m Typical: 0.2m; Trading: 0.3m Card access system, Digital CCTV System Power supply Very reliable dual source power supply, back up generators No. of rooms No. of car parks Connections to Metro Hotel: 399; Serviced apartment: 519 1,800 Direct connection at basement level Hotel: 909; Serviced apartment: 600 3,

37 Project showcase - mainland China La Botanica, Chan River, Xian (Ownership: 50%) Location GFA Land cost Features Expected completion Chan Ba Ecological District, eastside riverbank of Chan River, Xian Total: 33,000,000sq. ft. Attributable: 16,800,000sq. ft. RMB1,720M (Accommodation value: RMB52 per sq. ft. or RMB560 per sq. m.) 50/50 JV with Temasek, Singapore Homes for 30,000 families plus a cultural centre integrated with full facilities like school, hospital & retail precinct 2016 (Phase 1: of 1.2M sq. ft. in 2010) -37 -

38 Project showcase - mainland China The Champion Arch, Changsha (Ownership: 91%) Location GFA Land cost Features Expected completion Xingsha Town, Changsha Total: 7,800,000sq. ft. (excluding a basement area of 1,400,000sq. ft.) Attributable: 7,100,000sq. ft. RMB198M (Accommodation value: RMB28 per sq. ft. or RMB305 per sq. m.) Homes for >4,000 families in low-rise, multi-storey and high-rise apartments complemented by a clubhouse, a shopping arcade and a kindergarten Late 2009 (Phase 1 of residential GFA amounted to 1.4M sq. ft.) -38 -

39 Project showcase - mainland China The Xiangcheng District, Suzhou (Onwership: 100%) Location Attributable GFA Land cost Features Expected completion Xiangcheng, Suzhou Along the city s main thoroughfare of Renmin Road North Extension, which upon its due completion by the end of The City s planned subway line also runs along Renmin Road and is expected to be operational by Residential: ~7,500,000sq. ft. Retail : ~6,000,000sq. ft. Office : ~3,400,000sq. ft. Others* : 50,000sq. ft. RMB1,687M (Accommodation value: RMB99 per sq. ft. or RMB1,082 per sq. m.) A large-scale self-contained community Water-themed design with a mixture of villas, resorts and apartment towers Landmark in the region easily accessible by trunk roads and railway systems In four phases from the 2nd quarter of 2010 onwards (Phase 1: about 0.7M sq. ft.) * Including clubhouse, schools and community facilities -39 -

40 Project showcase - mainland China More (A) (B) (C) (D) (A) (B) (C) (D) Nan an District Chongqing Erlang Phoenix Area, Chongqing Xuzhou, Jiangsu Island of Yicheng Ownership 100% 100% 100% 100% Location One of the six districts at city centre Just off Chengdu-Chongqing Expressway New administration centre of Xuzhou Central Yixing, Jiangsu Attributable GFA 3,750,000sq. ft. 2,800,000sq. ft. Residential: 4,700,000sq. ft. Commercial: 600,000sq. ft. 700,000sq. ft. Features Luxury riverside/lakeside residential development with shopping centre, kindergarten & clubhouse Land cost RMB310M (RMB78per sq. ft. or RMB830per sq. m.) RMB157M (RMB56per sq. ft. or RMB600per sq. m.) RMB541M (RMB102per sq. ft. or RMB1,100per sq. m.) RMB158M (RMB226per sq. ft. or RMB2,430per sq. m.) Expected completion 4th quarter, 2010 (Phase 1) 1st quarter, 2010 (Phase 1) 2nd quarter, 2010 (Phase 1) August

41 THANK YOU -41 -

42 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 Mr Terence Kwok Executive Director & Finance Manager Chief Financial Officer Direct line: (852) Direct line: (852) terence.kwok@hld.com alex.au@hld.com -42 -