AGENDA

Highlights
Financial Review

Business Review
Market and Strategy

BUSINESS REVIEW

Highlights FY 2015

AGENDA

Highlights
Financial Review

Business Review
Market and Strategy

Income Statement
Year Ended 31 Dec
(HK$ mn)
Turnover

103,393

2014
(Restated)
89,705

15.3%

93,536

81,759

14.4%

6,655

5,482

21.4%

32,298

27,353

18.1%

28,179

23,850

18.1%

3,967

3,398

16.7%

31.2%

30.5%

+0.7pt

Development

30.1%

29.2%

+0.9pt

Investment Property

59.6%

62.0%

-2.4pt

IP (excluding hotel)

66.9%

71.5%

-4.6pt

Attributable Net Profit

17,527

15,141

15.8%

Core Profit

14,206

11,915

19.2%

Core Net Profit Margin

13.7%

13.3%

+0.4pt

Net Profit Margin

17.0%

16.9%

+0.1pt

EPS - Basic (HK cents)

259.2

231.8

11.8%

EPS - Fully Diluted (HK cents)

259.1

231.7

11.8%

57.4

49.5

16.0%

Development
Investment Property
Gross Profit
Development
Investment Property

FINANCIAL REVIEW

Gross Profit Margin

DPS (HK cents)

2015

Change

Balance Sheet Highlights

(HK$ mn)

FINANCIAL REVIEW

Cash and cash equivalents

Total debt
Net debt
Total equity
Total capitalization
Total debt/ capitalization
Net debt/ equity

31-Dec-15

31-Dec-2014
(Restated)

Change

45,875
76,150
30,275
131,824
207,974
36.6%
23.0%

44,857
90,231
45,374
117,123
207,354
43.5%
38.7%

2.3%
-15.6%
-33.3%
12.6%
0.3%
-6.9pt
-15.7pt

Debt Profile (as at 31 Dec 2015)

FINANCIAL REVIEW

Avg. Tenor: 4.24 yrs

(vs 4.01 yrs a year ago)

Finance Costs

FINANCIAL REVIEW

Year Ended 31 Dec (HK$ mn)

2015

2014

YoY Change

Total Interest
Less: Capitalisation

4,430.7
(3,251.3)

3,606.8
(2,832.9)

22.8%
14.8%

Exchange loss/ (gain)

(256.4)

58.0

-542.3%

Finance Costs on P/L

922.9

831.8

11.0%

Weighted Average Funding Cost

4.63%

4.51%

0.12pt

Finance cost among the lowest in the sector.

Foreign Exchange Risk Analysis

Total Borrowings
RMB Borrowings
Forreign Currency Borrowings
USD
HKD
Forreign Currency Cash Balance
USD
HKD
Net Foreign Currency Borrowings
USD
HKD

31-Dec-15
HK$ mn
76,150
40,647
35,503
21,553
13,950
1,257
180
1,077
34,246
21,373
12,873

as %
100%
53%
47%
28%
19%
100%
14%
86%
100%
62%
38%

31-Dec-14
HK$ mn
89,601
34,480
55,121
22,113
33,008
3,614
974
2,640
51,507
21,139
30,368

as %
100%
38%
62%
25%
37%
100%
27%
73%
100%
41%
59%

If CNY:USD fixing rate depreciates by 5% to 6.8183 from 6.4936 (@31 Dec 15)
FINANCIAL REVIEW

Estimated Impact

HK$ mn(1)

CF

Cash inflow/(outflow)(2)

P&L

Exchange gain/(loss)

BS

Change in translation reserve(3) +/(-)

(7,860)

Net Gearing (Net Debt/Equity)

+1.6ppt

(1) Based on financial data as of 31st Dec 2015.

(2) Based on projected cash outflows (excluding debt repayment) in FY2016.
(3) Based on reserve attributable to owners of the company.

(280)
960

AGENDA

Highlights
Financial Review

Business Review
Market and Strategy

Development Revenue in 2015

Development Revenue (RMB mn)
1H

FY
93,536
81,759

64,818

31,301
5,652

32,827
24,985

5,384
2012

12,579

2013

2014

2015

BUSINESS REVIEW

2011

38,522

10

Contracted Sales in 2015

Contracted Sales (RMB mn)
1H

FY
85,150

66,306

69,210

52,193
35,958

37,000

33,787
25,564

23,314
13,220

2012

2013

2014

2015

BUSINESS REVIEW

2011

11

Premium IP and Fast Growing Recurrent Income

Rental Income/ Gross Interest Coverage
2.0
1.6
1.4

BUSINESS REVIEW

2011

2012

2013

1.3

1.3

2014

2015

12

IP Performance in 2015 Shopping Mall

Rental Income (HK$000)

Average Occupancy Rate (% )

Investment Properties
2015

2014

% YoY

2015

2014

pt YoY

Shenzhen Mixc

1,050,494

990,698

6.0%

99.4%

99.7%

-0.3

Hangzhou Mixc

488,284

486,184

0.4%

97.4%

98.5%

-1.1

Shenyang Mixc

420,122

399,436

5.2%

95.1%

96.2%

-1.1

Chengdu Mixc

284,011

258,170

10.0%

96.7%

98.4%

-1.7

Nanning Mixc

487,060

454,216

7.2%

98.9%

99.1%

-0.2

Zhengzhou Mixc

137,319

103,017

33.3%

92.9%

94.7%

-1.8

Chongqing Mixc

195,230

41,249

373.3%

91.4%

87.7%

3.7

Wuxi Mixc

124,250

19,730

529.8%

77.3%

75.3%

2.0

Qingdao Mixc

224,423

N/A

N/A

83.0%

N/A

N/A

Hefei Mixc

60,124

N/A

N/A

89.8%

N/A

N/A

Ganzhou Mixc

50,257

N/A

N/A

95.0%

N/A

N/A

115,784

134,983

-14.2%

88.0%

94.4%

-6.4

82,637

80,176

3.1%

97.2%

97.1%

0.0

Beijing Qinghe Hi5

262,790

228,860

14.8%

100.0%

99.9%

0.1

Hefei Shushan Hi5

30,548

28,132

8.6%

96.1%

95.1%

1.0

Zhejiang Yuyao Hi5

60,249

26,255

129.5%

90.2%

90.8%

-0.6

Shanghai Nanxiang Hi5

39,730

6,940

472.5%

98.1%

100.0%

-1.9

Shandong Zibo Mixc One

80,182

N/A

N/A

84.5%

N/A

N/A

Shenyang Tiexi Mixc One

28,033

N/A

N/A

86.5%

N/A

N/A

Changsha Xingsha Mixc One

11,487

N/A

N/A

100.0%

N/A

N/A

4,233,014

3,258,046

29.9%

92.1%

94.4%

-2.3

Shanghai Times Square Commercial

BUSINESS REVIEW

Beijing Phoenix Plaza Commercial

Total / Average

13

IP Performance in 2015 Office, Hotel and Others

Rental Income (HK$000)

Average Occupancy Rate (% )

Investment Properties
2015

2014

% YoY

2015

2014

pt YoY

Beijing CR Building

228,340

224,217

1.8%

88.7%

90.5%

-1.8

Shenzhen CR Building

163,169

160,162

1.9%

98.9%

99.8%

-0.9

Shenyang CR Building

107,930

120,763

-10.6%

90.4%

95.8%

-5.4

Chengdu CR Building

75,704

74,010

2.3%

73.0%

69.7%

3.3

Nanning CR Building

25,701

21,083

21.9%

80.1%

96.7%

-16.6

4,713

N/A

N/A

15.0%

N/A

N/A

Shanghai Times Square Office

121,460

122,679

-1.0%

96.7%

99.2%

-2.5

Beijing Phoenix Plaza Office

351,595

335,491

4.8%

92.2%

95.9%

-3.7

24,188

25,126

-3.7%

100.0%

100.0%

Others

349,616

341,463

2.4%

N/A

N/A

N/A

Shenzhen Grand Hyatt Hotel

502,375

485,764

3.4%

74.4%

69.8%

4.6

66,112

81,534

-18.9%

35.9%

37.2%

-1.3

Shenyang Grand Hyatt Hotel

230,719

203,232

13.5%

68.5%

66.7%

1.8

Dalian Grand Hyatt Hotel

169,928

28,908

487.8%

42.1%

28.1%

14

1,102,800

1,083,531

1.8%

88.9%

90.6%

-1.7

969,134

799,438

21.2%

57.5%

52.3%

5.2

Hangzhou CR Building

Beijing Hi5 Office

BUSINESS REVIEW

Shimei Bay Le Meridien Hotel

Total / Average for Office*

Total / Average for Hotel

*Average occupancy does not include Nanning and Hangzhou CR Building.

14

Profiles of New Malls Opened in 2014

Representative Tenants
1

Zhengzhou
Mixc

1 9 /4 /2 0 1 4

Versace, Tod's, Moncler, GIVENCHY, Dunhill, Xinyu

watch gallery, Ole', World Ice Arena, Apple Store

Hefei
Shushan Hi5

1 /5 /2 0 1 4

Suguo Supermarket , WOMEI CINEPLEX, INLOVE

KTV

Zhejiang
Yuyao Hi5

2 8 /6 /2 0 1 4

Mjstyle, UNIQLE, Chow Tai Fook, Vanguard, CGV,

INLOVE KTV, Kingsport, Cartoony World

Chongqing
Mixc

1 9 /9 /2 0 1 4

OMEGA, Moncler, Coach, TOD'S, Dunhill, JIMMY

CHOO, Palace Cinema, World Ice Arena, Ole',
PARKSON

Shanghai
Nanxiang Hi5

2 5 /1 0 /2 0 1 4

BLT, OSGH Cinemas

Wuxi Mixc

2 0 /1 2 /2 0 1 4

OSGH Cinemas, Ole', Adventure Zone, Skyland

Food Court, Kidswant, X'Street, Shoe Space

BUSINESS REVIEW

Key Data in 2015/2014

15

Profiles of New Malls Opened in 2015

Representative Tenants
Bally, Hugo Boss, Dunhill, Omega, Ole', World Ice
Arena, CGV, Sega Joypolis, Apple, Family Box
Shandong
V+ supermarket, Myrules World, WOMEI
2
27/05/2015
Zibo Mixc One
CINEPLEX, World Ice Arena
Ganzhou
V+ supermarket, Myrules World, CGV, World Ice
3
19/09/2015
Mixc
Arena
World Ice Arena, Emperor Motion Pictures,
4 Hefei Mixc
25/09/2015
SKYLAND, Meland, Ole'
Shenyang
5 Tiexi Mixc
30/09/2015 BLT, Meland, Lumiere Cinema
One
Changsha
6 Xingsha Mixc 28/11/2015 VANGUARD, CGV
One
1 Qingdao Mixc 30/04/2015

BUSINESS REVIEW

Key Data in 2015

16

Launch Schedule for New Malls in 2016-2018

38* malls
8.8mn sqm

27 malls
22 malls

20 malls

4.7mn sqm

4.3mn sqm
New Malls in 2016:

BUSINESS REVIEW

6.1mn sqm

Wenzhou Mixc

Shandong Rizhao Mixc One

New Malls in 2017:

New Malls in 2018 and beyond:

Xian Sanqiao Mixc One

Taiyuan Mixc

Shanghai Mixc

Xiamen Mixc

Beijing Miyun Mixc One

Jiangsu Kunshan Mixc One

Shenzhen Mixc World

Jiangsu Taizhou Mixc

Nantong Mixc

Hangzhou Xiaoshan Mixc One

Shijiazhuang Mixc

Jinan Mixc

Suzhou Wujiang Mixc One

Dalian Mixc One

10 Shenhen Qianhai City Crossing

11 Guangxi Liuzhou Mixc One

*Opening schedules will be adjusted based on prevailing market conditions.

17

BUSINESS REVIEW

Land Bank (as of 31 Dec 2015)

Development Land Bank:
35.75 mn sqm

IP Land Bank:
5.51 mn sqm

53 cities

39 cities

Total Land Bank:

41.26 mn sqm

18

Land Bank Held by CRH Shenzhen Bay Project

Project Overview
Launch Date of Phase 1
2016 Launching Schedule
Earliest Booking Schedule

GFA Breakdown
2015/12/26
3Q, 42,000
1H 2018

SA :
50,000
16%

H:
40,000
12%

R:
170,000
53%

APPENDIX

C:
60,000
19%

Residential (R)

Commercial (C)

Hotel (H)

Serviced Apart. (SA)

19

AGENDA

Highlights
Financial Review

Business Review
Market and Strategy

Property Market Outlook in 2016 - Residential

Destocking remains as the key theme while overall ASP likely to stay flat or rise moderately.
Divergence among cities to intensify: ASP in tier-1 and certain tier-2 cities may still have further

upside due to decline on inventory level and rise in land price.

bn sqm

Residential GFA sold

YoY

Rmb/sqm

1.4

20.0%
1.16

1.2
0.97

0.93

1.05

0.98

1.12

15.0%

5,000

0.8

5.0%

4,000

0.6

0.0%

3,000

0.4

-5.0%

2,000

0.2

-10.0%

1,000

-15.0%
2011

2012

2013

2014

Decrease>20%

5,850

BUSINESS REVIEW

7.0%

4.0%
3.0%
2.0%
1.0%

0.0%
2010

Decrease 10%~20%

2011

2012

2013

2014

Decrease 0~10%

2015

Increase
6%

-23%

-26%

-27%

-23% -21% -22%

-16% -15%

-11%

-15%

-2%

-10%
-16%

-2%

-1%

-4%

-3%

-3%

6%

6%

10%
0%
-10%
-20%
-30%

10
5

8.0%

6.0%

-3%

-29%

9.0%

4,993

4,725

10.0%

5.0%

2015

25

15

5,933

5,430

mn sqm
30

20

YoY
6,472

6,000

10.0%

2010

ASP

7,000

-40%

-51%

-50%

-60%

21

Source: NBS

Inventory at Dec 2015

YoY %

Property Market Outlook in 2016 - Residential

Sector supportive policies to continue: moderate monetary environment, the acceleration in new-

round urbanization, further Hukou reform, inventory clearance measures as well as two-child
policy.

mn sqm
215
GFA Soldmn sqm
195

175

5/11
Interest rate
cut

155

Demand

135

BUSINESS REVIEW

115

95

8/29
Purchase
restrictions
for foreign
buyers
relaxed

3/27
Land department
to adjust land
supply structure

2/4
RRR cut

Supply

Demand

2/28
Interest rate cut
Demand

75
2015-02

Sourcewind

2015-03

4/19
RRR cut
Demand

3/30
Business tax
waived after 2
years holding
perios

Mar~Jun Demand
Fujian, Liaoning
and other
provinces to allow
developers to
change the
product mix of the
existing projects

8/25
Interest rate,
RRR cut
Demand

Demand

8/30
2nd home down payment
for HPF reduced to 20%

Interest rate,
RRR cut
Demand

Demand

Demand

Supply

Demand

2015-04

6/28
Interest rate,
RRR cut

12/21
Central Economic
Work Conference
mentioned
transforming migrant
11/10
workers into new
President Xi
urbanities to help
emphasized on
destocking
reducing property
inventory
Demand
promoting a
stable housing
market
9/30
Down
Demand
11/11
payment for
Premier Li
first homes
restated to
reduced to
further
25%
reform
hukou
Demand
policies
10/23/

2015-05

2015-06

2015-07

2015-08

2015-09

2015-10

2015-11

2015-12

22

Property Market Outlook in 2016 Investment Property

Shopping malls, especially mid-low end ones, likely to endure greater pressure when

seeking for growth due to oversupply and e-Commerce.

Stable GDP and disposable income growth, coupled with continuous urbanization, are

creating a growing consumer class with increasing spending power & demand for
better shopping experiences.
Diversified Channels

Growing Retail Market:

Rising competition from eCommerce and overseas

consumptions etc

Overall China retail market is

still growing at double digits

Opportunities:
Growing
Middle Class
Supportive Policies:
More favorable policies
expected to stimulate local
consumptions

Urbanization:
Continuous urbanization
lays down a solid
foundation for growing
retail sales

Rational Spending

Challenges:
Consumption
Structural Change

Luxury items no longer a pure

symbol for social status as
consumers become more
sophisticated

Declining Gift Market

Declining gift market continues
to impact the luxury as well as
the high-end dining market
23

Company Strategy
The Group will continue to enhance its competitive advantages to maintain earnings

growth through seeking quality investments and excellent operations, and to

proactively explore business innovations to achieve long-term sustainable
development.
Investment Strategy: Improve timing, city and product mix
selection as well as diversify access to land bank
Capital Engine
Quality
Investments

BUSINESS REVIEW

Excellent
Operations

Professional Management: Enhance

customer satisfaction, shareholder
return and organization structure

3 Main
Strategies

Change &
Innovation

Change: Construct shopping malls +

internet eco system and explore
overseas investment and business
innovations
24

Group Structure

61.27%

APPENDIX

25

Distinguished INED Team

APPENDIX

Background Information

Mr. Shi Wang

Mr. Ho Hin Ngai, Bosco

Mr. Andrew Y. Yan

Mr. Wan Kam To, Peter

Mr. Weihua Ma

Current Positions

Current Positions

Current Positions

Current Positions

Current Positions

Chairman of China Vanke

Authorized Person
(Architect) Hong Kong,
Member of Hong Kong
Institute of Architects and
of Royal Institute of
British Architects

Founding Managing
Partner of SAIF Partners

Independent Director of
Mindray Medical and the
Chairman of the Audit
Committee

Chairman of Wing Lung

Bank

Independent NonExecutive Director of

SOHU.com and Modern
Media Holdings

Founder of Ho & Partners

Architects Engineers and
Development Consultants

Non-Executive Director of
Digital China Holdings,
Lai Sun Group, China
Huiyuan Juice Group, and
Guodian Technology &
Environment Group
Independent Nonexecutive Director of
Cogobuy Group, CPMC
Holdings Limited and
China Petroleum &
Chemical Corporation

Independent NonExecutive Director of

Dalian Port (PDA)
Company, Fairwood
Holdings, Harbin Bank,
Huaneng Renewables,
KFM Kingdom Holdings,
S. Culture International
Holdings Limited, Target
Insurance (Holdings)
Limited, Shanghai
Pharmaceuticals Holdings
Co., Ltd., and the
Chairman/member of
their Audit Committees

Independent NonExecutive Director of

China Petroleum &
Chemical Corporation,
China Eastern Airlines
Corporation Limited, and
Winox Holdings Limited

Prior Positions
President and Chief
Executive Officer,
Executive Director of
China Merchants Bank
Chairman of CIGNA and
CMC Life Insurance
Company Ltd. and China
Merchants Fund

Prior Position
Partner of
Pricewaterhouse
Coopers
26

Disclaimer

All information and data herein are intended for reference and general information
purposes only.
All opinions included constitute China Resources Land Limited (CR Land) or its
subsidiaries, associated or affiliated companies judgment as of the date hereof and
are subject to change without notice.
CR Land cannot and does not represent, warrant or guarantee the accuracy,
validity, timeliness, completeness, reliability or otherwise of any information
contained in the materials herein.
CR Land, its subsidiaries and affiliates hereby disclaim (i) all express, implied, and
statutory warranties of any kind to user and/or any third party including warranties
as to accuracy, timeliness, completeness, or fitness for any particular purpose; and
(ii) any liability whatsoever for any loss howsoever arising from or in reliance upon
the whole or any part of the information and data contained herein.

27