CSI Properties : Final Results Presentation FY2024 - June 2024

Investor

Presentation

FY 2024

Jun 2024

Disclaimer

The information contained in this presentation is provided by CSI Properties Limited (the "Company") based on information available to it and does not constitute a recommendation regarding the securities of the Company and or its subsidiaries

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TABLE OF CONTENTS

Section 1	FY 2024 Financial Highlights	4
Section 2	Management Strategies Highlights	16

Section 1

FY2024

Financial Highlights

FY 2024 Sales Highlights

CSI made c.HK$3,128 million of sales and c.HK$794 million of unrecognized contracted sales commitment for FY2024 (incl. JV and Associates) to ensure good cashflow despite the challenging market

				For the period	Unrecognised
				ended		Contracted Sales committed
				31 March 2024		31 March 2024
		%		HK$'000		HK$'000
Group level
Hong Kong residential properties		100	1,140,000	0
Macau commercial properties		60	0	10,740
UK commercial properties		100	203,298	0
Sub-total			1,343,298		10,740
Joint Ventures and Associates
PRC residential properties		50-65%	389,278		175,660
Hong Kong commercial properties		30-51%	32,475	275,744
Hong Kong residential properties		8-65%		1,272,208		214,646
Singapore residential properties		49%		90,893		121,320
Sub-total			1,784,854		787,570
Total			3,128,152		798,310
Less: Non-controlling interests
			0		(4,296)
Contracted sales attributable to the Group		3,128,152		794,0	14

Strong recurrent income anchoring EBITDA

FY 2024 Key Disposals

CSI has recognized the following disposals this period to ensure profitability

	Date completed	Projects sold and booked for FY 2024	Location
	Jul 2023	Office at No. 17 St. Helen's Place, London	London
	Mar 2024	13 units at Knightsbridge residential project in Beijing(CSI-65%)	Beijing
	Apr - Sep 2023	3 ground floor triplex units with gardens at Peak Road (CSI-65%)	Peak
	May 2023	1 triplex unit at Dukes Place (CSI-60%)	Jardine's Lookout
	Mar 2024	13 units at Jervois Garden (CSI-49%)	Singapore
	Sep 2023	4 units at No.38 Wai Yip Street (CSI-30%)	Kowloon Bay
Oct 2023	Luxury House at No.45 Barker Road	Peak
Dec 2023	1 unit at High Peak at Po Shan Road (CSI-30%)	Mid Levels
Oct 2023	1 House at No. 15 Shouson Hill (CSI-8%)	Southside

Estimate completion	Projects presold for FY 2025 bookings and onwards	Location
Before Mar 2025 (est.)	7 units at Knightsbridge residential project in Beijing(CSI-65%)	Beijing
May 2024	7 floors at Nos. 92-96 Wellington Street (CSI- 51%)	Central
Before Mar 2025 (est.)	2 houses at No. 15 Shouson Hill (CSI-8%)	Southside
2H 2025 (est.)	Around 140 units at the Topside Residence at No. 350 Nathan Road (CSI - 51%)	W. Kowloon
Before Mar 2025 (est.)	1 triplex unit at Dukes Place (CSI-60%)	Jardine's
Lookout
Before Mar 2025 (est.)	21 units at Jervois Garden (CSI-49%)	Singapore
			5

Source: Company information and website

Prime Hong Kong properties focused strategy FY 2024 Results Highlights

	FY2024	FY2023	% change
(HK$m)	(A)	(B)	(A/B-1)
Gross revenue from property business	1,579	804	96%
Property sale	1,343	546
Rental income	236	258
Gross profit	786	404	95%
Profit from property JV/associates	(2)	190	-101%
Profit attributable to equity holders	(426)*	336	-227%
EPS (basic)	(4.59) HK cents	3.58 HK cents

Note* : The loss attributable to owners of the Company was mainly due to impairment loss in respect of amount due from a joint venture project situated in KwuTung North/Fanling North New Development Areas recognised in the year ended 31 March 2024

Source: Company information and website	6

FY 2024 Results Highlights (contd.)

Maintain strong balance sheet and ample liquidity to ensure financial stability

	FY 2024	1H FY 2024
(HK$m)	31st Mar 2024	31st Mar 2023
Properties & related assets	22,870	23,628
Cash & bank balances (including cash held by securities brokers)	2,524	3,162
Investments	351	488
Other assets	493	489
Total assets	26,238	27,767
Bank loans	7,883	8,856
Guaranteed notes	2,301	2,296
Other liabilities	2,318	2,215
Total liabilities	12,502	13,367
Common stock equity	13,732	14,364
Non-controlling interests	4	36
Total equity	13,736	14,400

Source: Company information and website
Notes:
(1) Properties & related assets = Properties held for sale + Property, plant and equipment + Interests in joint venture +Amounts due from joint ventures + Interests in associates + Amount due from associates + Contract costs	7

FY 2024 Key Credit Metrics

Key credit metrics	FY 2023	FY 2024
EBITDA1 / interest expenses2	1.4x	1.2x
Net debt / total assets (net gearing ratio)	28.8%	29.2%
Net debt / adjusted total assets3	24.4%	25.7%
Net debt plus commitment to JVs /adjusted total assets plus JV assets4	39.9%	41.4%

Source: Company information and website

Notes:

1. EBITDA is calculated as profit before taxation adjusted for fair value changes of financial assets at fair value through profit or loss, fair value changes of derivative financial instruments, (net reversal of) write-down of properties held for sale, gain on disposal of property, plant and equipment, gain on disposal of a subsidiary, reversal of (impairment loss) recognized on financial guarantee contracts, impairment loss recognized on amounts due from joint ventures, bank and loan interest income, finance costs, income from amortization of financial guarantee contracts and depreciation of property, plant and equipment
2. Including capitalised interest
3. Adjusted total assets equals total assets plus revaluation surplus
4. Adjusted total assets plus JV assets equals total assets plus revaluation surplus and JVs attributable assets

8

Consistent Profitability and Growth

Revenue

1,579

	1,500					236
(HKDm)	1,000			804
	420	258	1,343
	500
		250	546
	0	171
		FY2022		FY2023	FY2024
			Property Sales		Rental

Gross profit

	800
(HKDm)	600
400				786
	200			404
	0		31
			FY2022	FY2023	FY2024

Gross profit

EBITDA1

Reported net profit 2

(HKDm)

1,000

800

600

400

200

0

764	718	778

(HKDm)

FY2022

FY2023

FY2024

1,200

1,000

800

600

400

200

0

(200)

(400)

1,156

*

336

		(426)
FY20222	FY2023	FY2024

Net profit attributable to the Company

FY 22 Mainly due to one off reclassification of two Shanghai malls as long term asset

Notes:

(1) EBITDA is calculated as profit before taxation adjusted for fair value changes, impairment loss on available-for-sale investments, impairment loss (2) Attributable to owners of the Company on properties held for sale, gain on disposal of property, plant and equipment, gains on de-recognition of investments in convertible notes,

interest income, finance cost, income from amortisation of financial guaranteed contracts and depreciation of property, plant and equipment

9