cifi holdings (group) co. ltdfile.irasia.com/listco/hk/cifi/cpresent/pre150819.pdf · 4 •...
TRANSCRIPT
CIFI Holdings (Group) Co. Ltd
2015 Interim Results Presentation
August 2015
1
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.
Disclaimer
2
I. 2015 Interim Results Highlights 3
II. Operating Performance 6
III. Financial Performance 18
IV. Market Outlook 29
Table of Contents
I. 2015 Interim Results Highlights
4
• Captured land-banking opportunities at reasonable cost, acquired 12 new projects in
1H 2015 in 1st-tier and robust 2nd-tier cities, attributable land cost RMB5.7 billion
• Already secured adequate saleable resources in next 2 years; More selective on land
acquisitions in 2H 2015
• Contracted sales: 1H achieved RMB10.52 billion (YoY increase 3.1%, 42% of yearly
target)
• Core net profit: RMB623 million(vs. 1H 2014: RMB646 million); core EPS per share:RMB10.1cents (vs.1H 2014: RMB 10.7 cents)
• Stable gross profit margin (adjusted) and core net profit margin: 24.9% & 12.8%
• Interim dividend: HK 3 cents per share
2015 1H Interim Results Highlights
Core Performance
• Prudent net gearing ratio: 72.5%; Cash-on-hand: RMB 10.1billion
• Weighted average costs of indebtedness reduced to 7.9%
• Healthy debt structure; early redemption of perpetual capital instruments
• Increase onshore funding: Applying for the issue of domestic RMB corporate bonds
• Onshore large-scale banks approved lending quotas over RMB 37 billion in aggregate
Land Acquisitions:
Captured Ideal Window
• 1H early phase of market recovery, stressed inventory clearance, only 5 new project
launched
• 2H expect stronger volume and price growth
• Abundant saleable resources, from Sept to Dec at least 14 new project launches
• Confident to achieve full year sales target
• Contracted but unrecognized sales: RMB 19 billion (incl. JV sales)
Poised for Growth
Prudent
Financial Positions
5
• Upgraders’ products account for over 60% of newly acquired projects by value, raising
proportion of residential by mass market products vs. upgraders to 50%:50%
• Showcase projects achieved over-whelming sales: Hefei CIFI Original Villa, Shanghai
Henderson CIFI Center
• Launches of 5 new higher-end upgraders’ projects in the upcoming 12 months
• Increase land bank proportions in 1st- and robust 2nd-tier cities
2015 1H Interim Results Highlights
Product Structure
Upgrade
Appropriate Operating
Rhythms
Sales
• 1H: Early stage of recovery, awaiting price catch-up
• 2H: Volume/price increase , proactive and aggressive sales
• Adequate saleable resources for 2015 and 2016
Land Acquisitions
• 1H Proactive land-banking at market lows, 2H More selective as land market recovered
Operations
• 2014: Slowed down new constructions, less inventory pressure
• 2015: Construction start in full speed, well-positioned for good sales window
• Adjust construction pace by sales performance
Financing
• Raised approximately USD 170 million through top‐up placement of 600 million shares
• Issued US$400 million 5-year USD bonds, lowest coupon rate of 7.75% among peers
• Plan to issue domestic corporate bonds
II. Operating Performance
7
Contracted Sales: Confident of Achieving Full Year Target 1H contracted sales: RMB10.52 billion; 7M contracted sales: RMB11.88 billion (achieved 47% of annual target)
Upgraded product positioning, enhanced brand recognition
9,544
15,319
21,200
10,200 10,520
0
5,000
10,000
15,000
20,000
25,000
2012 2013 2014 1H2014 1H2015
1,026
1,438
1,733
816 840
0
500
1,000
1,500
2,000
2012 2013 2014 1H2014 1H2015
9,300
10,725
12,235 12,504 12,519
0
5,000
10,000
15,000
2012 2013 2014 1H2014 1H2015
Contracted Sales
(RMB million)
Contracted GFA
(‘000 sqm)
Contracted ASP
(RMB/sqm)
* Including joint venture projects
8
Shanghai 23%
Beijing 19%
Suzhou 12%
Hangzhou 11%
Tianjin 9%
Hefei 9%
Changsha 7%
Wuhan 3%
Chongqing 1%
Shenyang 1%
Jiaxing 2% Zhenjiang
2%
Langfang 1%
Contracted Sales: Over 95% from 1st- and 2nd-tier Cities
RMB 10.5 billion
Contracted ASP: RMB 12,519/sq.m.
RMB 10.2 billion
Contracted ASP: RMB 12,504/sq.m.
* Including Joint Venture
Shanghai 31%
Beijing 15%
Suzhou 13%
Tianjin 11%
Hangzhou 9%
Hefei 6%
Chongqing 6%
Changsha 4%
Langfang 3%
Jiaxing 1%
Zhenjiang 1%
Yangtze River 61%
Pan Bohai 29%
Central and
middle Region 10%
Total 100%
First-tier Cities 46%
Second-tier
Cities 49%
Third-tier Cities 5%
Total 100%
First-tier Cities 42%
Second-tier
Cities 53%
Third-tier Cities 5%
Total 100%
Yangtze River
Delta 59%
Pan Bohai 30%
Central Western
Region 11%
Total 100%
1H 2014 1H 2015
Residential 88%
Office and
Commercial 12%
Total 100%
Residential 82%
Office and
Commercial 18%
Total 100%
Contribution from 50 projects in 1H 2015
Increasing proportion of products for upgraders (over 40% of 1H total contracted sales)
Breakdown of Contracted Sales
9
Captured Best Market Opportunity: Enlarging Equity Capital and
Further Lowering Financing Costs Captured market window and completed top-up placement and new US dollar bonds issue
As of 30 June 2015, weighted average costs of indebtedness reduce to 7.9%(31 Dec 2014: 8.3%)
Early redemption of perpetual capital instruments
In the process of obtaining approval to issue domestic RMB corporate bonds
Offshore
Corporate Bond Equity Placement and
Unsecured Syndicated Loan
US$ 400M, New Issue of
US$ Bonds Due June 2020
Issued US$400M in May 2015
5-year maturity
Coupon rate 7.75%
Lowest effective issue interest rate
among privately-owned developers
with BB- credit rating
US$200M, Retap of
US$ Bonds Due Jan 2019
Re-tap US$200M in Jan 2015
Remaining 4-year maturity
Effective interest of 8.3%
US$ 170M, Placement
of 600M Shares
Completed in May 2015
HK$2.20 per share
Further strengthened equity base,
improved liquidity of shares and
broadened shareholder base
US$ 130M
Syndicated Loan
Signed in January 2015
Final Maturity of 3 Years
LIBOR / HIBOR + 4.75% p.a.
Domestic Corporate Bonds and
Bank Lending Quotas
To issue domestic RMB corporate
bonds
Onshore large-scale banks
approved lending quotas over an
aggregate of RMB 37 billion
Increase Low-Cost
Onshore Funding
10
Land-banking: Captured the Ideal Acquisition Window in 1H 2015;
More Selective in 2H 2015
Scale & Growth Ranked 27th nationally in terms of sales in 1H 2015(1)
Steady contracted sales in 1H 2015
Position Focused on 1st-and 2nd tier cities in China
End-users oriented residential and commercial
properties
Coverage
Land banking
Strategy
Strong track record in key 1st-and-2nd-tier cities
Seized ideal land-banking window and acquired decent
amount of quality land bank in 1H 2015, secured
abundant new saleable resources in the next 2 years
As land market in most cities recovered, more selective
land acquisitions in 2H 2015
Pan Bohai
Rim
Central Western
Region
Yangtze River
Delta
Chongqing
Shanghai Hefei
Suzhou
Tianjin
Beijing
Changsha
Hangzhou
Wuhan
Shenyang
Nanjing
Source:
1::“China Real Estate Enterprises Sales Ranking Top 100 in the First Half of 2015” jointly published by China Real Estate Information Corporation, China
Real Estate Appraisal Center and CRIC Research Center.
More than 60 projects in 13 cities,
3 major regions
As of 30 June 2015
- Total GFA: 12.0 M/sqm
- Attributable GFA: 8.1 M/sqm
11
Land Acquisition in 1H 2015
Date of
Purchase City Project
CIFI's Equity
(%)
Intended
Primary Use
Total
Planned GFA
(Excl.
Total Consideration
(RMB)
Attributable Land
Cost (RMB)
Average
Land Cost
(RMB/sqm)
Land acquisitions from January to June2015
Mar-15 Tianjin Xiqing District Jingwu Town
Dananhe North
100.00 Residential 208,500 672,100,000 672,100,000 3,224
Mar-15 Shanghai Jiading Industrial Zone 40.00 Residential 246,200 1,332,000,000 532,800,000 5,410
Mar-15 Beijing Daxing District Huangcun 26.50 Office,
commercial
94,800 763,000,000 202,195,000 8,049
Apr-15 Suzhou Hi-Tech District Luxury
Courtyard South
50.00 Residential 394,100 1,400,000,000 700,000,000 3,552
Apr-15 Shanghai Songjiang District Dongjing 50.00 Residential 61,800 780,000,000 390,000,000 12,621
Apr-15 Hangzhou Xiaoshan District North
Xingyi Cun
35.00 Residential 109,800 823,886,000 288,360,000 7,504
Apr-15 Hangzhou Xiaoshan District Zhonghui 30.00 Residential 98,300 1,084,100,000 325,230,000 11,028
Apr-15 Beijing Shunyi District Nan Fa Xin 10.00 Office,
commercial
206,700 1,380,000,000 138,000,000 6,676
12
Land Acquisition in 1H 2015 (Cont’d)
Date of
Purchase City Project
CIFI's Equity
(%)
Intended
Primary Use
Total
Planned GFA
(Excl.
carparks,
sq.m.)
Total Consideration
(RMB)
Attributable Land
Cost (RMB)
Average
Land Cost
(RMB/sqm)
(Cont'd)
Jun-15 Suzhou Hi-Tech District Huashan
Road
50.00 Residential 180,500 960,000,000 480,000,000 5,319
Jun-15 Beijing Daxing District Yinghai Town
Jiangchang Cun
59.50 * Residential 19,000 225,000,000 133,875,000 11,842
Jun-15 Beijing Daxing District Pangge
Zhuang Town
49.00 * Residential,
office,
commercial
266,200 2,410,000,000 1,180,900,000 9,053
Jun-15 Chongqing New Northern District
Dazhulin
30.00 * Residential,
commercial
635,700 2,329,000,000 698,700,000 3,664
1H 2015 Sub-Total: 2,521,600 14,159,086,000 5,742,160,000 5,615
Land acquisitions subsequent to 30 June 2015
Jul-15 Shanghai Jiading District An Ting Ying
Yi Golf Villa
38.25 Residential 60,700 897,660,000 343,355,000 14,784
Jul-15 Suzhou Industrial Park District
Moon Bay
40.00 Residential 209,700 3,100,000,000 1,240,000,000 14,783
7M 2015 Sub-Total: 2,792,000 18,156,746,000 7,325,515,000 6,503
* Joint venture in progress
13
1st-tier cities 42%
2nd-tier cities 52%
3rd-tier cities 6%
Saleable
Resources (By
Value)
High Quality and Abundant Saleable Resources
Pre-Sale in 1H 2015 Launch
Beijing MOMA CIFI Residence
(当代·旭辉墅) Jan
Shanghai CIFI Pure Center
(旭辉·纯真中心) May
Suzhou CIFI Xiyue
(旭辉·玺悦) Jun
Suzhou CIFI Shangli
(旭辉·香格里) Jun
Hefei CIFI Original Villa
(旭辉·湖山源着) Jun
Shanghai 32%
Suzhou 12%
Beijing 10%
Hangzhou 9%
Tianjin 6%
Chongqing 6%
Changsha 6%
Hefei 5%
Nanjing 3%
Wuhan 3%
Jiaxing 2%
Zhenjiang 2%
Langfang 2% Shenyang
2%
Note:
1. Saleable resources are estimated based on development and sales progress
2. Including joint venture projects
2015 Estimated Saleable Resources by City
(By Value)
Pre-Sale in 2H 2015 Launch
Hangzhou Xiaoshan North Xingyi
(龙湖旭辉春江悦茗) 3Q
Shanghai Songjiang Dongjing (上坤旭辉墅) 3Q
Shanghai Songjiang Chedun (安贝尔花园) 3Q
Shanghai Jiading Industrial Zone (首创旭辉城) 3Q
Nanjing Jiangning (旭辉九著) 3Q
Nanjing Pukou (旭辉银城白马澜山) 4Q
Suzhou Industrial Zone (铂悦府) 4Q
New Projects in 2H 2015 Launch
Suzhou Gaoxin Luxury Courtyard South
(恒基旭辉城) 4Q
Tianjin Xiqing Dananhe North (旭辉燕南园) 4Q
Beijing Daxing Panggezhuang (龙熙旭辉六号院) 4Q
Beijing Daxing Huangcun (万科天地) 4Q
Shanghai Yangjing (铂悦滨江•旭辉广场) 4Q
Hangzhou Xiaoshan Zhonghui (顺发旭辉国悦府) 4Q
Shanghai Jiading Anting (旭辉西郊官邸) 4Q
Suzhou Gaoxin Huashan Road (华山路项目) 4Q
• Launched 5 new projects in 1H 2015,at least 14 new project launches in 2H 2015
14
Shanghai Lujiazui CIFI Square: JV with Hongkong Land
• Superior Location: Only 7km away from the core Lujiazui District,
200 meters to Yangjing North Station, Subway Line #6
• Joint Development: Total land cost of RMB 4.175 billion (average
land cost is 18,000/sqm.), total development cost of approx. RMB
7.3 billion
• Win-Win Situation: Partnering with leading blue‐chip property
developer, to build landmark property at a prime location within the
inner ring road of Shanghai
• Timeline: Project scheduled to be completed by phases within 2017
to 2018, pre-sales of residential project will start in 2H 2015.
50% 50%
Jointly own and
develop the project
via offshore
shareholding
structure
15
Project Showcase: Hefei CIFI Original Villa
• Location and GFA:Located in Hi-tech District of Hefei. GFA: 206,500 sq.m.
• Project Category:Townhouses and apartments, covering diverse group of end-users
• Contracted Sales:Pre-sale started in May 2015; Contracted sales surpassed RMB 774M as of 30 June
2015; ASP of RMB 13,124/sq.m., top single project sales in Auhui province
16
Project Showcase: Shanghai·Henderson & CIFI Center
• Location and GFA: Located in Shanghai Hongqiao CBD, Total GFA: 170,600 sqm.
• Project Category: Office and residential
• Contracted sales: Launched on Nov. 2014, Total Accumulated Contracted sales: RMB 1.9B,
ASP of 37,000 / sq.m.
17
• Focusing on customers’ experience, providing quality living, elegant and cost-effective products
• Upgrading product positioning, applying environmental-friendly and energy-efficient materials
• Offering “better product, better service and better community”
Upgraders’ & Fully-fitted Products: Enhancing Customers’
Experience & Promoting CIFI’s Brand Image
III. Financial Performance
19
8,144
11,909
16,179
5,021 4,860
2012 2013 2014 1H2014 1H2015
735
1,239
1,630
500
327
2012 2013 2014 1H2014 1H2015
921
1,519
1,939
646 623
2012 2013 2014 1H2014 1H2015
YoY:-3.2% YoY:-3.6% YoY:-34.7%
Recognized Revenue, Core Net Profit & Completed GFA: Slightly
Softened as Most Projects Scheduled for Delivery in 2H 2015
Recognized Revenue
(RMB million)
GFA Delivered
(‘000 sqm)
Core Net Profit
(RMB million)
Recognized ASP
(RMB/sqm)
10,877
9,346
11,047
9,569
13,880
2012 2013 2014 1H2014 1H2015
YoY:+45.1%
20
2015 Interim Results – Profit and Loss Statement (RMB million) 1H2015 1H2014 YoY Change
Recognized Revenue 4,860 5,021 -3.3%
Breakdown
- Property sales 4,536 4,788 -5.3%
- Rental, property management and other income 324 233 +39.0%
Gross Profit (adjusted, excl. impact of
re-measurement of fair value due to acquisition of
interests in project companies) (1)
1,212 1,323 -8.4%
Gross Profit (reported) 1,047 1,323 -20.9%
Other income (1) 306 169 +81.1%
Fair value changes 328 207
SG&A (329) (360)
Share of results of JV and associates 53 (19)
Finance cost (97) (111)
Income Tax (397) (444)
Non-controlling interests (71) (16)
Attributable to perpetual capital instruments (38) -
Net Profit Attributable to Equity Owners 802 749 +7.1%
Notes: 1. In 1H 2015, the acquisition of equity interests in non-consolidating JV companies resulted in the consolidation of the relevant
project companies into the Group’s financial statements. The Group recorded gains due to business combination and re-measurement of fair value of approx. RMB 165M under other income. Accordingly, the costs of the development were re-measured at relevant fair value.
21
2015 Interim Results – Profit and Loss Statement
(RMB million) 1H2015 1H2014 YoY Change
Net Profit Attributable to Equity Owners 802 749 +7.1%
Core Net Profit Attributable to Equity Owners (2) 623 646 -3.6%
Basic EPS, in RMB cents 13.0 12.4
Basic Core EPS, in RMB cents (2) 10.1 10.7 -6.0%
EBITDA (3) 1,354 1,448 -6.5%
Gross profit margin (adjusted, excl. impact of
re-measurement of fair value due to acquisition
of interests in project companies) (1)
24.9% 26.4% -1.5 P.P
Core net profit margin (2) 12.8% 12.9% -0.1 P.P
EBITDA margin (3) 27.9% 27.8% -0.1 P.P
Notes: 2. Core net profit excludes fair value changes , share option related expenses and net exchange loss, net of deferred taxes.
3. EBITDA consists of profit from operating activities before fair value gains on the investment properties and financial derivatives,
and interest income 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.
22
Beijing 32%
Shanghai 20% Tianjin
15%
Langfang 12%
Changsha 11%
Chongqing 3%
Hefei 3%
Suzhou 2%
Zhenjiang 1%
Jiaxing 1%
Shanghai 37%
Beijing 13%
Suzhou 25%
Hefei 14%
Changsha 3%
Tianjin 5%
Langfang 1%
Zhenjiang 1%
Breakdown of Recognized Property Sales
Recognized Revenue - Property Sales in 1H 2015
Yangtze River
Delta 78%
Pan Bohai 19%
Central Western
Region 3%
Total 100%
First-tier Cities 50%
Second-tier
Cities 48%
Third-tier Cities 2%
Total 100%
Residential 99%
Office/
Commercial 1%
Total 100%
First-tier Cities 52%
Second-tier
Cities 34%
Third-tier Cities 14%
Total 100%
Residential 65%
Office/
Commercial 35%
Total 100%
Yangtze River
Delta 26%
Pan Bohai 59%
Central Western
Region 15%
Total 100%
RMB 4.54 billion(29 projects) Recognized ASP︰RMB 13,880/sqm
RMB 4.79 billion(20 projects)
Recognized ASP︰RMB 9,569/sqm
1H2015 1H2014
• Recognized Property Sales in 1H2015 was contributed by 29 projects in 10 cities
• Contribution from 1st- and 2nd-tier cities increased to 98%
• Recognized ASP increased to RMB13,880/sq.m., up YoY 45%
23
Key Balance Sheet Figures • Stable gearing level, lower finance costs, fully redeemed onshore perpetual capital instruments
• Well-managed cash flows, and stringent control on off-balance sheet commitments
RMB million 2015.06.30 2014.12.31 YoY Change
Bank balances and cash 10,144 7,124 42.4%
Including: Pledged bank deposits 30 30
Total assets 51,772 43,539 18.9%
Total equity 12,625 11,583 +9%
- Non-controlling interests 851 792
- Perpetual capital instruments (onshore) - 586
- Equity attributable to equity owners 11,773 10,205 +15.4%
Total indebtedness (1)
19,303 13,861 +39.3%
Outstanding unpaid land premium, attributable to the Group
(off-balance sheet) 3,032 2,854
Net debt-to-equity ratio (2)
72.5% 58.2% +14.3 P.P
Weighted average costs of indebtedness (p.a.) (3)
7.9% 8.3% -0.4 P.P
Onshore - Average costs of bank loans 7.0% 7.0% -
- Average costs of trust & non-bank loans 8.0% 9.4% -1.4 P.P
Offshore - Average costs of debts 5.1% 6.0% -0.9 P.P
- Average cost of senior notes 9.6% 11.0% -1.4 P.P
1. Total indebtedness includes bank and other loans, senior notes, trust and other loans related derivatives.
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
Note:
24
Debt Structure: Continued Improvements
Debt structure 2015.06.30 2014.12.31
RMB million % of total debt RMB million % of total debt
By loan type
Offshore bank loans 1,920 10% 935 7%
Offshore senior notes 8,036 41% 4,357 31%
Onshore bank loans 8,808 46% 7,759 56%
Onshore trust and other loans 539 3% 810 6%
By collateral
Offshore (unsecured) 9,956 52% 5,292 38%
Onshore 9,347 48% 8,569 62%
By maturity
Due within 1 year 2,967 15% 3,035 22%
Due between 1-2 years 4,303 22% 4,136 30%
Due between 2-3 years 6,128 32% 1,761 13%
Due between 3 to over 5 years 5,905 31% 4,929 35%
Trust and non-bank loans by maturity
Due within 1 year 399 2% 500 4%
Due within 1-2 years 140 1% - -
Exceeding 2 years - - 310 2%
25
Sustained Profit Margins
23.7%
25.8% 25.9% 26.4% 24.9% (adj)
15%
20%
25%
30%
2012 2013 2014 1H2014 1H2015
11.3%
12.8% 12.0%
12.9% 12.8%
0%
5%
10%
2012 2013 2014 1H2014 1H2015
Effects of 2014 market correction alleviated by:
• Lower financing costs
• Product premium through improving quality and more emphasis on products for upgraders
23.1%
27.2% 26.7% 27.8% 27.9%
10%
15%
20%
25%
30%
2012 2013 2014 1H2014 1H2015
EBITDA Margin Gross Margin
Core Net Profit Margin
Note: EBITDA consists of profit from operating activities before fair value gains on the investment properties and financial derivatives, and interest income 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.
26
38%
22% 22%
15%
0%
10%
20%
30%
40%
50%
2012.12.31 2013.12.31 2014.12.31 2015.06.30
4%
31%
38%
52%
0%
10%
20%
30%
40%
50%
2012.12.31 2013.12.31 2014.12.31 2015.06.30
34%
19%
6% 3%
0%
10%
20%
30%
40%
2012.12.31 2013.12.31 2014.12.31 2015.06.30
Liability Management
10.0%
9.2%
8.3%
7.9%
7%
8%
9%
10%
11%
2012.12.31 2013.12.31 2014.12.31 2015.06.30
• Lowered financing cost: weighted average cost of indebtedness decreased to 7.9%
• Reasonable debt maturity: short-term debts around 15% of total debts
• Less onshore trust financing: 3% of total debts; Early redemption of onshore perpetual instruments
• Proportion of unsecured offshore debts: 52%
Weighted Average Interest Cost
Proportion of Offshore Debts
Proportion of Debts Due within 1 Year
Proportion of Onshore Non-bank Borrowings
27
62.5% 67.6%
58.2%
72.5%
20%
30%
40%
50%
60%
70%
2012.12.31 2013.12.31 2014.12.31 2015.06.30
4.7x
4.1x
3.2x
4.4x
0.0x
1.0x
2.0x
3.0x
4.0x
5.0x
2012.12.31 2013.12.31 2014.12.31 2015.06.30
Financial Metrics
17% 18%
16%
20%
0%
5%
10%
15%
20%
2012.12.31 2013.12.31 2014.12.31 2015.06.30
• Vigilant in financial management: high cash-to-asset ratio, prudent net gearing level
• Stable interest coverage ratio
2.7x 3.1x
3.5x 3.4x
0.0x
1.0x
2.0x
3.0x
4.0x
2012 2013 2014 1H 2015
Net Gearing Ratio Cash/Total Assets Ratio
Debt-to-EBITDA Ratio Interest Coverage Ratio(1)
Notes:
1. Interest Coverage Ratio = EBITDA over Interest Expenses. Ratio as at 30 June 2015 was calculated using 12-month trailing EBITDA divided by pro forma interest cost based on debt structure as at 30 June 2015
28
Cash Flow Guidance
1st- and 2nd-tier cities and end-users driven product structure facilitated better disbursement of
mortgage loans
Improved onshore liquidity for onshore construction loans and mortgage loans
High cash collection ratio: Over 90% of contracted sales
(RMB billion) 1H 2015 FY 2015
(Guidance)
Operating Cash Outflow
Land acquisition (attrib. to CIFI) 6.3 9.3**
Construction capex (attrib. to CIFI) 2.5 7.0
Tax 1.3 2.5
Interest 0.7 1.6
SG&A 0.4 1.0
11.2 21.4
Capital Expenditure and Expenses Cash Collection
9.3
10.5
0.0
5.0
10.0
2014年上半年回款 2014年上半年合同销售
90%
(RMB’ Billion)
Cash Collection
In 1H2015*
Contracted sales
In 1H2015*
* Including cash up-streamed from
joint venture projects ** Committed as at 2015.6.30
IV. Market Outlook
30
1st-tier cities ASP leading the growth,
2nd-tier cities catching up
Demand for self-use upgraders being unleashed 3
China property sales in 2015 could attain record high 1
1st- and robust 2nd-tier cities will outperform 2
2016 market possibly better than 2015, reaching cycle’s peak
4
Inventory level falling, overhang reduced 5
Outlook in 2H 2015 and 2016
Favourable policies: Expect further rounds of interest rate
and reserve ratio cuts, lower onshore funding cost 6
7
31
2015-16 CIFI’s Targets
Partnership
& Operations
Sales and
Profitability
• Achieve full year target, and position for next year’s growth
• Steady growth in sales and profitability
• Maintain prudent financial positions, reduce interest cost, increase
onshore funding proportion, issue domestic corporate bonds
Branding &
Innovations
• Further JV efforts with renowned developers, reducing risks
• Maintain balanced operating cash flow
• Develop differentiating products, strengthen upgraders’ products
• Enhance brand awareness
• Innovating business models
• Position for spin-off of property management and commercial leasing
management businesses