China New Town Development Co. Ltd. · HKEX:1278
China New Town Development — Investor Presentation (August 2010)
33 slides from China New Town Development's investor presentation, August 2010
Slide 1: Corporate Presentation
China New Town Development Company Limited 中国新城镇发展有限公司 Corporate Presentation Strictly Private and Confidential
Slide 2: Agenda
Agenda 1.Company Overview 2.Business Model 3.Financials 4.Q & A 1
Slide 3: Company Overview
Company Overview New Town New Life 2
Slide 4: Company Overview
Company Overview Pioneer and leading developer of large-scale new towns in suburban areas of the largest cities in China First mover advantage: One of the first privately-owned and leading new town developers in China, whose business model is driven by the country’s strong economic growth and urbani
Slide 5: Company Overview
Company Overview Strategically located projects: Existing projects are situated mainly in the economically vibrant Yangtze River Delta and Pan Bohai Rim Luodian Project in Shanghai (substantially completed) Wuxi Project (anticipated completion in 2013) Shenyang Project (anticipated completion in 201
Slide 6: Company Overview: What We Do and Don't Do
Company Overview Yes No 9 Listed on SGX 8 Not owned by any governments 9 Managed by professionals 8 Not managed by government 9 In joint ventures with municipal officials governments We Do We Don’t 9 Fund relocation/ resettlement of 8 Carry out relocation residents and enterprises 8 Operate utilitie
Slide 7: Strategically Located Portfolio
Strategically Located Portfolio ¾ Shanghai Luodian ¾ Wuxi Hongshan ¾ Shenyang Lixiang ¾ Changchun Project Name Project Project Project Automobile Project ¾ CNTD: 72.6%; ¾ CNTD: 90%; ¾ CNTD: 90%; ¾ CNTD: 80%; Ownership Structure Shanghai Local Wuxi Local Shenyang Local Changchun Local Government: 27.
Slide 8: Luodian Project, Shanghai
Proven Track Record: Luodian Project, Shanghai Location: Master Plan: Residential land sold Residential land for sale Luodian Project Hotel / Golf Club Retail Street Golf Courses School / Hospital Shanghai Nobel Park Light Railway No. 7 Exit Hongqiao Pudong Airport Airport Part of Shanghai Governmen
Slide 9: Luodian Project, Shanghai
Proven Track Record: Luodian Project, Shanghai Pre-development view: Post-development view: Apartments & Houses Retail Street Hotel & Club House Golf Courses 8
Slide 10: Luodian Project, Shanghai: Development plan
Proven Track Record: Luodian Project, Shanghai Development plan: Site Area GFA Function (sqm) % of Total (sqm) Residential 2,371,757 34.88% 1,928,673 Residential area sold 1,205,590 1,181,016 Area available for sale 1,166,167 747,657 Commercial 3,040,345 44.71% 230,762 Golf courses (2 18-hole course
Slide 11: Luodian Project, Shanghai – Land Sold
Proven Track Record: Luodian Project, Shanghai – Land Sold Until the end of 1H09, CNTD has recorded revenue from sale of 1,205,590 sqm of land (site area), or 1,181,016 sqm of GFA. The total proceeds of land sale amounts to about RMB3.9bn Site Area GFA Land Use Grant Fee Plot Ratio (sqm) (sqm) (RMB
Slide 12: Luodian land sold by developer and project
Site Area Land Use Grant Fee Current Selling Developer Property Type Project Name Plot Ratio GFA (sqm) Price (RMB sqm of (sqm) (RMB ‘000) GFA) Nov-03 Detached houses, semi- 美兰金邸 116,586 0.5 54,659 223,846 Shanghai Jinniu Real Estate detached houses and townhouses 金兰雅墅 97,443 0.5 47,636 190,009 Shang
Slide 13: Wuxi Project
Proven Track Record: Wuxi Project Location: Master Plan: Residential land for sale Hotel Wuxi Retail spaces Park Public facilities Sporting & leisure facilities Historical site Scenic green belt Current Status: Hongshan Resettlement commenced in April 2007 for this New Town 8.6 sq km project Schedul
Slide 14: Wuxi Project: Development plan and milestones
Proven Track Record: Wuxi Project Development plan: Artistic impression Artistic impression Artistic impression Milestones: 9 February 2007: entered into agreement with Wuxi JV Partner for planning & development January 2008: USD 75 million has been injected as shareholders equity December 2009: One
Slide 15: Wuxi Project Timeline
Proven Track Record: Wuxi Project Timeline: Master Plan 2007 2008 2009 2010 2011 2012 2013 and thereafter Land leveling & construction of public infrastructure Resettlement of incumbent residents and enterprises Residential land to be delivered for sale Construction of artificial lake & cultural sit
Slide 16: Wuxi Project: Development plan
Proven Track Record: Wuxi Project Development plan: Site Area GFA Function (sqm) % of Total (sqm) Residential 3,237,400 37.64% 4,893,100 Artistic impression Commercial 2,575,300 29.95% 244,700 Sporting and leisure 2,349,000 N/A 74,000 74,000 Hotel : 152,300 170,700 Retail : Public amenities 2,787,30
Slide 17: Shenyang Project
Proven Track Record: Shenyang Project Location: Master Plan: Residential land for sale Government & adm. Center Commercial Public facilities Sporting & leisure facilities Sightseeing Note: Rivers, pond, lakes and natural reserve park will be built by the government at their expense Current Status: 2
Slide 18: Shenyang Project: Milestones
Proven Track Record: Shenyang Project Development plan: Milestones: 9 February 2007: entered into agreement with Shenyang JV Partner for planning & development of Shenyang Project 28 February 2007: entered into Shenyang JV Agreement for formation of Shenyang JV with total investment & registered cap
Slide 19: Shenyang Project Timeline
Proven Track Record: Shenyang Project Timeline: 2007 2008 2009 2010 2011 2012 2013 2014 2015 and thereafter Resettlement of incumbent residents and enterprises Public infrastructure construction Residential land to be delivered for sale Construction of commercial & entertainment area Construction of
Slide 20: Shenyang Project: Development plan
Proven Track Record: Shenyang Project Development plan: Site Area % of GFA Function (sqm) Total (sqm) Residential 11,634,300 58.17% 10,723,180 Commercial 5,324,800 26.63% 380,000 Sporting and leisure : 4,161,600 N/A Retail : 545,400 225,000 Hotels/ convention center/ club 142,500 15,000 houses : 142
Slide 21: Changchun Automobile New Town Project
Proven Track Record: Changchun Automobile New Town Project Location: Master Plan: Industry Mixes residention Mixes core Residention extention Entertainment Extension Industry Intensive green Extensive green Current Status: Located in the core area of auto industry at the south-western part of Changc
Slide 22: Changchun Project: Development plan
Proven Track Record: Changchun Automobile New Town Project Development plan: Site Area GFA Function (sqm) % of Total (sqm) Residential 1,700,000 42.6% 3,190,000 Central District 700,000 1,190,000 West Lake District 1,000,000 2,000,000 Commercial 800,000 20.1% 1,734,400 Commercial & Financial Area 10
Slide 23: Business Model
Business Model New Town New Life 22
Slide 24: Property Market Structure
Property Market Structure Primary Market Secondary Market Activities The 1st tier market The 2nd tier market Land Land Land Real Estate Secondary Formation Reserving Auction Development Transfer Township and city Land Relevant land Real estate Property governments reserve administrative developers o
Slide 25: Business Model
Business Model Early Stage Property Land Development/ Raw Development Prepared Property Investment Land Land Assets 24
Slide 26: Business Model: Activities and Sources of Revenue
Business Model Business Activities Sources of Revenue Site Selection & Master Development of Land Infrastructure Planning Benefit from Land Price Appreciation Luodian Wuxi Relocation & Proceeds from sale Project Project Resettlement 64% 85% of land use rights by Land Administration Land Preparation
Slide 27: Business Strategy
Business Strategy Functions: Providing capital • We provide capital to township governments to effect relocation and land reserving Advising on town planning and design • We propose and modify the master plan based on which all future real estate developments are to be conducted Providing corporate
Slide 28: Business Strategy
Business Strategy Strategies: 27
Slide 29: Key Milestones
Key Milestones In a short period of five years, CNTD has established itself as one of the leading new town developers in China JVagreement signed with Shenyang Third Changchun gov’t auction: entity Approx. 185,418 sqm of land sold IPO in November on the Main Board Shanghai Eighth of SGX-ST auction:
Slide 30: Financials
Financials New Town New Life 29
Slide 31: Consolidated Income Statement
Consolidated Income Statement RMB mm 2004 2005 2006 2007 2008 1H2009 Revenue 807.8 135.0 717.2 363.2 564.1 299.1 Cost of sales (386.7) (106.1) (354.4) (203.1) (369.1) (149.5) Gross profit 421.1 28.9 362.8 160.1 195.0 149.6 Selling and distribution costs (9.2) (25.4) (36.6) (37.8) (35.9) (24.0) Admin
Slide 32: Consolidated Balance Sheet
Consolidated Balance Sheet RMB mm 2004 2005 2006 2007 2008 1H2009 Non-current assets Property, plant and equipment 980.1 1,223.0 1,221.0 1,276.0 1,255.2 1,232.0 Investment properties - 750.0 780.0 845.0 497.0 497.0 Prepaid land lease payments 259.9 331.7 334.4 326.1 320.3 315.3 Long-term trade recei
Slide 33: Q & A
Q&A New Town New Life 32
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