Annual Results SEHK Stock Code: 127

Transcription

1 SEHK Stock Code: 127

2 Results Highlights Business Review Business Outlook - Mr. Ming Wai Lau, Director Financial Review - Mr. K. W. Lam, Group Financial Controller

3 Results Highlights Business Review Business Outlook Mr. Ming Wai Lau, Director

4 Healthy Financial Status Recorded core profit of HK$4.45 billion Recognized HK$3.69 billion gain in securities investment Strong cash balance of HK$10.4 billion Spent HK$2.29 billion for share repurchase from the market Proposed final and special dividends of HK$1.0 per share Strong Rental Performance Recorded over HK$1 billion rental income Achieved 25% Year on Year rental growth Sustained 50% rental increase from rental reversion Maintained high occupancy rates for core retail and office properties

5 Share Repurchase 2008 Total Number of Shares Repurchased: 226,873,000 Amount of Consideration for Shares Repurchased: HK$2,287,860,250

6 Disposal of All Available-For-Sale Investments: The carrying amount of the cumulative gain on fair value changes of listed equity securities investments at 31 st December, 2007 Recognized net investment income for the year ended 31 st December, 2008 The carrying amount of Listed Equity Securities Investments Reserve as at 31 st December, 2008 HK$8.16 billion HK$3.65 billion Nil Strong Cash Position Cash HK$10.4 billion Gearing ratio 2.2%

7 Billion (HK$) Recorded over HK$1 Billion Rental Income in

8 Rental Reversion Increases in 2008 (Previous Rents vs New Rents) Retail 28% Office 94% Total 50%

9 Maintained high occupancy rates for core retail and office properties Average occupancy rate of core retail properties was 95.9% in 2008 Average occupancy rate of core office properties was 90.9% in 2008 Windsor House Silvercord Windsor House Laforet MassMutual Tower Causeway Place Wanchai Computer Centre Lowu Commercial Plaza Harcourt House Evergo Tower

10 Rental Income by Geographical Area

11 Property Sales in 2008 Sales Recognized in 2008 Total Sales HK$632 million Attributable Sales HK$407 million Profit HK$186 million Key Contributor of Property Sales in 2008 Property / Location MOD 595 / Reclamation Street, Mong Kok Development Launch Date April 2008 No. of units sold 62 out of 85 units

12 Hong Kong Properties Launch in 2009 Project Name / Location MOD 595 / Reclamation Street, Mong Kok YORK PLACE / Johnston Road, Wanchai i-home / Larch Street and Bedford Street / Tai Kok Tsui Hoi Ting Road and Hoi Wang Road / West Kowloon Approx. Floor Area 52,969 sq. ft. 69,973 sq. ft. 111,625 sq. ft 1,095,980 sq. ft. No. of Units 85 units 94 units 182 units 852 units Development Plan One 29-storey tower sitting on 5-storey podium One 36-storey tower sitting on 4-storey podium One 37-storey tower sitting on 3-storey podium with clubhouse / pool / car parks and shops at G/F, 1/F Six 45 to 53-storey residential towers sitting on 6-storey podium with clubhouse, car parks and shops Group s Interest 100% 100% 100% 25%

13 Property Development in Hong Kong Project Name / Location Group s Interest Development Plan* Approx. Floor Area (sq. ft.)* No. of Units* Expected Launch Date* Development Progress 12 Shiu Fai Terrace / Mid-Levels East 100% One 12-storey residential tower sitting on podium with club house and basement car parks 39, Demolition in progress Hoi Wang Road, Yan Cheung Road and Yau Cheung Road/ West Kowloon 15% Six 25 to 30-storey residential towers sitting on 3 to 7-storey podium with clubhouse, car parks and shops 650, / 2011 Foundation works completed Excavation works in progress No. 55 Conduit Road / Mid-Levels 70% One 10-storey tower sitting on 3-storey podium with car parks 87, Site formation works completed Foundation works to be commenced The Zenith- Phase 2 / Wanchai 87.5% One 36-storey tower sitting on 6-storey podium 159, / 2013 Redevelopment in progress * Subject to change

14 Property Development in China Project Name / Location Approx. Floor Area Development Plan* Development Progress Splendid City ( 華置 西錦城 ) Yingbin Road, Jinniu District, Chengdu Metropolis Height ( 華置 都匯華庭 ) Dongda Street, Jinjiang District, Chengdu Chinese Estates Plaza ( 華置廣場 ) South Taisheng Road, Qingyang District, Chengdu Huaxin Street Development Jiangbei District, Chongqing 3,740,000 sq. ft. 1,650,000 sq. ft. 3,200,000 sq. ft. 11,080,000 sq. ft. Phase 1 - Eight 28 to 29- storey residential towers, and one 7-storey commercial building sitting on 2 levels of basement. A total of 1,261 residential units Phase 2 Nine 25 to 29- storey towers sitting on 2 levels of basement. Superstructure construction of Phase 1 in progress Six 51-storey towers sitting on 3 levels of basement A total of 1,683 residential units Superstructure construction commenced in Feb 2009 One 36-storey Grade A office building, one 31-storey 5 stars hotel & two residential towers. All four towers sit on various levels of 5- storey shopping centre, 1 basement level includes supermarket and 3 carparking levels Site formation in progress 7 phases of residential development and 1 phase of commercial development At detailed design stage Group s Interest 100% 100% 100% 25% * Subject to change

15 Property Development in Macau Avenida Wai Long Development, Macau Proposed Residential Development * Location Site Development Plan No. of Blocks Located in Taipa Adjacent to Cotai Strip Site Area 917,084 sq. ft. GFA 5,786,242 sq. ft. High-end Residential (4 5 Phases) 25 Blocks (Residential Towers) 1 Block (Serviced Apartments) No. of Units Around 3,967 Site Development Progress Proposals for site formation and basement excavation works of Phase 1 have been submitted for the government s approval * Subject to planning approval

16 Property Redevelopment in Hong Kong Redevelopment of Tung Ying Building, Tsim Sha Tsui GFA 400,000 sq. ft. Before Redevelopment After Redevelopment Acquisition Cost HK$1.1 billion Usage Shops (15%) ; Office (85%) Shops / Cinema / F & B (100%) Construction Cost HK$1.2 billion Development Progress The construction of superstructure commenced in Oct 2008 Letter of Intent has been signed by a leading cinema operator in HK Market survey has been conducted by an international research house Preparation of trade mix formulation and marketing campaign execution is in progress Redevelopment Completion 2010

17 Rental Enhancement Programme of Windsor House, Causeway Bay Repackaging of 2/F, 3/F and 4/F GFA 100,621 sq. ft. Development Progress Renovation work commenced in March 2008 Refurbishment work in progress Completion 1H2010

18 Prime investment properties continue to provide stable rental income. Profitable property sales projects provide further revenue boost. Sufficient cash on hand for land bank replenishment in Hong Kong and mainland China.

19 Financial Review Mr. K. W. Lam Group Financial Controller

20 Balance Sheet 31 st December, st December, 2007 Change Total assets (HK$bn) % Cash (HK$bn) % Listed equity investment (HK$bn) Nil 11.8 N/A Bank borrowings (HK$bn) % Net assets (HK$bn) % Net assets per share (HK$) % Gearing ratio (Net debt to equity) 2.2% 11.9% -82% Share repurchase (HK$bn) 2.29 Nil N/A

21 Income Statement Segment profit for the year ended 31 st December, 2008 HK$m 2007 HK$m Change Property leasing % Property sale 186 1,202-85% Listed equity securities 3,690 1, % Core profit 4,449 2, % Earnings per share (core profit) HK$2.00 HK$ % Fair value change on investment properties and deferred tax (5,943) 5,464 N/A Fair value change on investment properties (%) -20.5% +20% N/A Net (loss) / profit ( 1,494) 8,196 N/A Dividends - Interim dividend HK13.5 cents HK13.5 cents - Final dividend HK1.0 cent HK22.5 cents - Special dividend HK99.0 cents Nil Share repurchase HK102.7 cents Nil

22 Whilst the Company and/or its Management have taken reasonable steps to ensure that the contents contained in this presentation reflect the truth, neither the Company nor its Management shall guarantee their accuracy or completeness. This presentation, subject to changes from time to time, is for reference only and does not constitute any investment invitation, suggestion or advice based on which Investors can rely when making any investment decisions. It is the sole responsibility of the Investor to exercise its own judgment, evaluate any merits and risks of investing in the Company or any of its related companies. The Company and its related companies shall assume no liability at all in this regard. Copyright 2009 Chinese Estates Holdings Limited All rights reserved