中期業績發佈會webcast.live.wisdomir.com/yuzhou_18ir/ppt.pdfpremium landbank with 17.25 mn...

2018 Interim Results

中期業績發佈會

Aug 2018

Speakers

Mr. LAM Lung On,

J.P.

Deputy to the National People’s Congress,

Founder & Chairman

Mr. CAI Minghui Executive President

Mr. Jacky WONG CFO & Company Secretary

2

3

Founder & Chairman

Vice Chairman of the All-China General Chamber of

Industry and Commerce (Member of the All-China

Federation of Industry and Commerce (“ACFIC”))

Visiting Professor of the University of Science and

Technology of China

Mr. Lam Lung On, J.P.

Founder & Chairman

Deputy to the National People’s Congress

Premium landbank with 17.25 mn sq.m. +, RMB300 bn+ salable resources Avg. land cost c. RMB 4,995

Widely recognized capital markets KPI Hang Seng Composite Large Cap & Mid Cap Indexes

Southbound Trading under Hong Kong – Shanghai Stock Connect

MSCI China Index

Widely recognized across multiple financing channels

Offshore：issued in total US1bn senior notes due 2021

Onshore：no repurchase in RMB 2bn private bond puttable in June 2018

Maximize shareholders 'returns

with sound operation Gross profit margin: 31.5%

Net profit growth: 83.5%:

Net profit margin/Core profit margin: 15.0%/12.5% Interim Dividend: HK 11 cents

Payout ratio: 34.9% Net gearing: 63.0%

.

Prudent & active land acquisition through multiple

strategies

Acquired Coastal Greenland package at RMB3.8bn, including 7

premium projects

Aerospace Smart Town in Chengde

Entered 7 cities: Beijing, Chongqing, Foshan, Shenyang, Zhengzhou, Bozhou & Xuzhou

.

Abundant salable resources

1H18 achieved RMB21.5bn FY18 target: RMB60bn FY18 salable resources RMB92bn Launching schedule: 1H 35% Vs 2H65%

A 100bn Journey started with 26 cities in 6 metropolitan areas Dual Drivers: Residential +commercial development

Share options covering core mid-high level management, launched co-investment (As at the Date of Announcement)

Prioritized quality and services 3 product lines : Honor, Langham & Royale 3 service offerings: Housekeeping, circle & refined services Award-winning quality including but not limited to: Yuzhou Properties- Most Influential Property Company in Suzhou Nanjing Lakeside- Safe and Civilized Construction Demonstration Site in Jiangsu Province Suzhou Royale Aqua Mansion- 2018 Most Awaited Property Project in Suzhou

A Journey to 100 bn+

with Nationwide Cultivation

Highlights

4

Business Overview Stay well-poised to embrace vibrant growth in 2H2018

Yuzhou · Royale Aqua Mansion

Sales performance has grown dramatically over the past few years. Contracted sales in line with projected launching schedule

More projects will launch in 2H2018, as new strong growth catalysts for 2H2018 performance

Responding to market changes, launched in-demand quality residential products that cater to upgraded modern consumer tastes

Accelerated the project development cycle and actively expanded in core first- and second-tier cities and their satellite cities

Contracted Sales Contracted GFA Contracted ASP

Contracted Sales on Track with Strong Growth Outlook in 2H2018

12,689

16,929

13,623

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

FY2016 FY2017 1H2018

RMB mn ‘000 sq.m. RMB/ sq.m.

12,872

21,487 21,494

10,334

18,819

0

4,000

8,000

12,000

16,000

20,000

24,000

28,000

32,000

36,000

40,000

44,000

FY2016 FY2017 1H2018

1H 2H

21,494

40,306

23,206

1,011

1,283

1,578

818

1,098

0

500

1,000

1,500

2,000

2,500

FY2016 FY2017 1H2018

1H 2H

2,381

1,829

1,578

6

Contracted Sales in 1H2018

1H2018 FY2017 FY2016

# of Cities 17 12 9

Contracted ASP (RMB / sq.m.)

13,623 16,929 12,689

Region Project # City

Interest in Project

Contracted Sales

As of Total Contracted

GFA Contracted

ASP

（%）（RMB mn）（%）（Sq.m.）（RMB / sq.m.）

West Strait 14 5 92% 5,034 23.4% 441,421 11,401

Yangtze River Delta

21 7 47% 10,504 48.9% 676,103 15,538

Central China 2 1 100% 2,382 11.1% 150,184 15,860

GHM Bay Area 1 1 51% 64 0.3% 5,805 11,020

Bohai Rim 4 3 78% 3,510 16.3% 304,242 11,538

Total 21,494 1,577,755 13,623

1H2018 Contracted Sales by City

Xiamen 3.9%

Fuzhou 7.0%

Quanzhou 9.1%

Longyan 3.1% Zhangzhou

0.3%

Shanghai 8.6%

Hefei 7.3%

Nanjing 11.4%

Hangzhou 7.7%

Zhoushan 1.0%

Suzhou 3.8%

Bengbu 9.1%

Wuhan 11.1%

Huizhou 0.3%

Tianjin 5.3%

Tangshan 7.0%

Shenyang 4.0%

In 1H2018, Yuzhou achieved a total contracted sales of approximately RMB21,494 mn; contracted GFA was

1,577,755 sq.m.; and the contracted ASP was RMB 13,623/sq.m.

Contracted Sales by Region

West Strait 23.4%

Yangtze River Delta 48.9%

Central China 11.1%

Bay Area 0.3%

Bohai Rim

16.3%

Number of Projects by Region

West Strait

14

Yangtze River Delta

21

Central China

2

Bay Area 1

Bohai Rim 4

7

Monthly Contracted Sales & ASP in 1H2018

Monthly Contracted Sales & Contracted ASP ( Jan 2017 - Jul 2018)

2,064

2,981

5,106

3,891 3,995

3,450

2,694 2,511

2,200

3,525

4,290

3,598

2,758

3,047

4,543

4,012 4,111

3,018 3,016

13,148 14,435

16,146

17,728 18,799 20,116

16,921 17,180 16,828

20,000

17,203

15,252 13,314

11,716 13,082

14,832 13,809

15,566

12,859

0

5,000

10,000

15,000

20,000

25,000

0

1,000

2,000

3,000

4,000

5,000

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Contracted Sales in 2017 Contracted Sales in 2018 ASP in 2017 ASP in 2018

Contracted ASP (RMB/sq.m.)

Contracted Sales (RMB mn)

8

8

Win-Win of Scale & Profitability

RMB mn

10,376

13,672

21,701

7,247

9,243

3,709 4,959

7,683

2,388 2,914

35.7% 36.3%

35.4% 33.0% 31.5%

0.0%

10.0%

20.0%

30.0%

40.0%

0

4,000

8,000

12,000

16,000

20,000

FY2015 FY2016 FY2017 1H2017 1H2018

Revenue Gross profit Gross margin

Revenue, Gross profit & Gross profit margin

1,107 1,483 1,503

629 692

9,172 9,000

14,118

11,204 12,574

0

4,000

8,000

12,000

16,000

0

200

400

600

800

1,000

1,200

1,400

1,600

FY2015 FY2016 FY2017 1H2017 1H2018

Recognized GFA ASP

GFA ‘000 sq.m.

ASP RMB ‘000/sq.m.

Recognized GFA & ASP

1,620

2,047

2,924

920 1,158

0

500

1,000

1,500

2,000

2,500

3,000

3,500

FY2015 FY2016 FY2017 1H2017 1H2018

RMB mn

Core net profit (b)

RMB mn

EBITDA (a)

3,883

5,325

7,609

2,433

3,223

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

FY2015 FY2016 FY2017 1H2017 1H2018

(a) EBITDA = net income + capitalized borrowing cost under cost of sales + finance cost + income tax expense + depreciation + fair value loss on derivative financial instruments + realized loss on derivative financial instruments – interest income – fair value gain on investment properties – unrealised fair value gain arising from remeasurement of equity interests of joint ventures

(b) Core net profit is the net profit attributable to owners of the parents adjusted for mainly the after-tax fair value gain/(loss) on investment properties and fair value gain (loss) on derivative financial instruments, exchange differences and unrealized fair value gain arising from remeasurement of equity interests in joint ventures

9

Strategic Planning of Land Acquisition at Attractive Value

Beijing

Shanghai

Fuzhou

Xiamen

Tianjin

Region GFA

(million sq.m.)

Average Land Cost

(RMB)

Land Bank Proportion

(%)

Yangtze River Delta

7.21 6,917 41.8%

Region GFA

(million sq.m.)

Average Land Cost

(RMB)


(%)

West Strait

3.73 4,481 21.6%

Region GFA

(million sq.m.)

Average Land Cost

(RMB)


(%)

Central China

1.00 5,387 5.8%

Region GFA

(million sq.m.)

Average Land Cost

(RMB)


(%)

Bay Area

0.46 3,774 2.7%

Region GFA

(million sq.m.)

Average Land Cost

(RMB)


(%)

Bohai Rim

4.16 2,287 24.1%

Region GFA

(million sq.m.)

Average Land Cost

(RMB)


(%)

South- west

0.69 4,263 4.0%

As of Jun 30, 2018, cultivating 6 metropolitan areas with a footprint in 25 cities

The land bank was approximately 17.25 mn sq.m. with the average land cost of RMB4,995

West Strait Economic Zone

Yangtze River Delta Region

Bohai Rim Region

Central China Region

GHM Big Bay Area

Southwest Region Chongqing Suzhou

Hangzhou

Zhangzhou Huizhou

Zhoushan

Nanjing Hefei

Bengbu

Longyan Quanzhou

Qingdao

Yangzhou

Hong Kong

Shenyang

Tangshan

Foshan

Bozhou

Zhengzhou

Wuhan

10

11

New Land Bank since Beginning of 2018

Time City Project type Methodology %

Site area

(sq.m.)

Saleable GFA

(sq.m.) Att. GFA (sq.m.)

Total land cost

(RMB mn)

Att. land cost

(RMB mn)

Avg. land cost

(RMB/sq.m.)

Jan Suzhou Resi Bidding 20% 42,481 76,466 15,293 1,032 206 13,500

Jan Suzhou Resi Bidding 19% 100,887 201,774 38,337 2,754 523 13,649

Feb Chongqing Resi Bidding 100% 194,489 250,970 250,970 1,290 1290 5,140

Mar Huizhou Resi / Com Bidding 51% 4,304 15,775 8,045 38 19 2,383

Mar Huizhou Resi / Com Bidding 51% 12,919 36,173 18,448 177 90 4,894

Mar Quanzhou Resi / Com Bidding 100% 17,473 52,419 52,419 161 161 3,071

Mar Hanghzou Resi Bidding 34% 61,030 122,060 41,500 922 314 7,555

Apr Quanzhou Resi M&A 100% 56,146 140,365 140,365 225 225 1,603

Apr Nanjing Resi Bidding 20% 102,787 143,901 28,780 577 115 4,010

Apr Nanjing Resi / Com Bidding 49% 188,420 266,923 130,792 972 476 3,641

Apr Chongqing Resi M&A 51% 14,785 53,816 27,446 73 37 1,347

May Bozhou Resi Bidding 50% 63,011 113,400 56,700 284 142 2,506

May Hangzhou Resi Bidding 49% 31,033 55,860 27,371 857 420 15,350

May Zhengzhou Resi / Com Bidding 51% 51,674 258,370 131,769 326 166 1,262

May Chongqing Resi / Com Bidding 49% 200,568 387,677 189,962 1,590 779 4,100

Jun Fuzhou Resi Bidding 100% 26,557 58,491 58,491 559 559 9,558

Jul Xuzhou Resi Bidding 70% 127,243 203,588 142,512 191 134 937

Sub-Total 1,295,807 2,438,028 1,359,201 12,028 5,659 4,933

Coastal Greenland’s Package Acquisition 3,106,900 1,600

Total 4,466,101 3,042

Acquistion60%

Bidding & Auction

40%

2018YTD Land Acquisition Strategy*

West Strait Economic Zone, 5%

Yangtze River Delta,

21%

Central China, 7%

GHM Big Bay Area,

1% Bohai Rim Region, 53%

Southwest, 13%

Saleable GFA*

*Based on saleable GFA

(a) Acquired the package of 7 quality projects from Coastal Greenland (located in Beijing, Tianjin, Wuhan, Foshan and Shenyang) for a total consideration of RMB 3.8bn, with the attributable saleable GFA of 3,106,900 sq.m. at average land cost of approximately RMB 1,600.

(b) The equity interest listed in the table is for reference only as a result of introduction of partners for some of these projects.

3 Popular Product Lines with priority on safety and quality

Honor Langham Royale

Establishing Three Popular Product Lines with Superior Craftsmanship

4 Dimensions

4 Aspects

Delineated the product lines from 4 dimensions based on 4 aspects and developed standardized modules

First-time Buyer and Upgrader

First-time Upgrader Upgrader Target Group :

12

Regional Commercial Business Expansion

Name Business Form City

Yuzhou World Trade Centre MALL

Xiamen Haicang Yuzhou Living Plaza Community Commercial

Yuzhou Central Coast Community Commercial

Yuzhou Plaza Office Building

Yuzhou City Plaza MALL

Quanzhou Huian Golden Street Community Commercial

Huian Plaza Office Building

Yuzhou Commercial Plaza MALL

Shanghai

Yuzhou Plaza Office Building

Research Building Office Building

Yuzhou Jingqiao International Community Commercial

Yuzhou Land Dream Community Commercial

Yuzhou Central Plaza MALL

Hefei Yuzhou Central Plaza

Commercial Street Community Commercial

Projects in Operation：14

Name Business Form City

Yuzhou Central Town (Main

Street) Commercial Street

Hefei Yuzhou Sky Aqua Mall MALL

Yuzhou Galaxy Park MALL

Riverside Sapphire

Commercial Villa Commercial Villa

Hangzhou

Riverside Sapphire Office Building

Suzhou Wangting Town

Project MALL Suzhou

Wuyan Bay Hotel Commercial Floor in

Hotel Xiamen

Yuzhou Commercial Plaza MALL Nanjing

Yuzhou Commercial Plaza MALL、Office Building

Wuhan Lingjiao River No. One Community Commercial

Coastal International

Commercial Plaza Community Commercial

Yuzhou Plaza Commercial Floor in

Office Building Shenyang

Yuzhou Commercial Plaza Community Commercial Yangzhou

Projects in Preparation：13

Adhering to the operating philosophy of “Refined system, regulated management, procedural operation and friendly service”, Yuzhou Commercial provides customers with a comfortable and premium residential experience while realizing diversified innovation and development, as well as striving to strengthen business benefits

13

14

Hotel Operations - Vigorous development & growth

Xiamen Yuzhou Camelon Hotel Apartment - In operation

Xiamen Wyndham Grand Plaza Royale Hotel and Howard Johnson Residence

- Grand opening in 2H 2018 (est.)

Xiamen Tong’an Camelon Hotel and Spa - Grand opening in 2019 (est.)

Quanzhou Huian Hotel Project - In preparation

Hefei Feidong Hotel Project - In preparation

Wuhan Taizihu Hotel Project - In preparation

Focusing on the development of serviced apartments as well as medium-to-high-end business hotels in order to

establish premium hotel brands

Developing resort hotels while improving the existing hotel portfolio to strengthen the brand’s core competitiveness

Property Management Establishing a Distinguished Service System

Upholding the philosophy of “Customer First, Service Oriented “ under the management concept of

“Refinement, Professionalism, Integrity and Harmony”

Launched the “Royal Service“ luxury service system at all high-end sales offices under the theme of “Relax

your mind with a comfortable experience, enjoy the moment with our consistent service”, aimed at offering a

memorable, comfortable, enjoyable and consistent on-site experience

As at Jun 30, 2018

Cities Covered： 10

Managed Projects： 44

Managed Area： Approx. 12 mn sq.m.

No. of Flats： Approx. 100K

1H2018 Revenue： RMB158 mn, +35.18% YoY

Royal ·

Comfortable

Royal ·

Privileged

Based on different target customers, the system is divided into two

series (Royal·Comfortable, Royal·Privileged), while Property

Management provides three kinds of services (house keeping, circle,

and refined services). This allows clients to experience warmth,

pleasure and honor in our sales offices first to convey the notion that

Yuzhou Properties is a quality service provider.

15

2018 Best 50 China Real Estate Listed

Companies with Strongest Comprehensive Strengths (Rank 35th )

• By China Real Estate Research Association, China Real Estate Appraisal Center

2018 Best Chinese Real Estate Companies by Brand Value（Rank 39th）

• China Real Estate Chamber of Commerce, China Real Estate Business, China Real Estate Website, China Real Estate Think Tank

HS Composite Large Cap & Mid Cap Indexes

MSCI China Index

Expanding Branding Advantages

Named the Headquarters-level Key Bank Client by China Construction Bank

• Headquarter-level key clients serve as the core client base of China Construction Bank’s differentiated services with priority being provided to them in terms of service efficiency, credit access, credit approval, comprehensive pricing, project assessment, product innovation, resource allocation and other aspects.

• China Finance Summit

2018 Corporate Social Responsibility Exemplar Award

• The Economic Observer

The 15th China Blue Chip Real Estate Award

16

Financial Highlights A journey to 100 billion with highly-efficient operation

Yuzhou · Honor Glamour

Highlights of 1H2018

RMB bn 2018

As at 30 Jun

2017

As at 31 Dec Changes

Total equity 18.20 17.44 +4.35%

Cash on hand 25.09 17.50 +43.37%

Net gearing ratio 62.96%

（including senior perpetual securities 82.09%）

57.73%

（including senior perpetual securities 77.14%）

+5.23pp

RMB bn 1H2018 1H2017 Changes

Contracted sales 21.49 21.49 +0.03%

Recognized revenue 9.24 7.25 +27.54%

Gross profit margin 31.53% 32.95% -1.42pp

Net profit 1.39 0.76 +83.45%

Core profit 1.16 0.92 +25.90%

Interim Dividend

(HK cents/share) 11.0 8.5 +29.41%

18

97.08% 97.25%

1.71% 1.62%

1.11% 0.99%

0.09% 0.12% 0.01% 0.02%

1H2018 1H2017

OthersHotel operation incomeRental incomeProperty management fee incomeSales of property

Increasingly diversified revenue streams, with rising contributions from recurring rental income and property management

RMB mn 1H2018 1H2017 Changes

Sales of

properties 8,972.99 7,047.38 +27.32%

Property

management fee

income

158.31 117.11 +35.18%

Rental income 102.19 71.67 +42.58%

Hotel operation

income 8.64 8.87 -2.59%

Others 0.49 1.72 -70.41%

Total 9,242.62 7,246.75 +27.54%

100% = RMB 9,243 mn

100% = RMB 7,247 mn

19

Highlights of 1H2018 (Cont’d)

Xiamen 12.0%

Fuzhou 7.7%

Quanzhou 3.4%

Longyan 0.9%

Shanghai 18.6%

Hefei 36.1%

Nanjing 8.5%

Bengbu 0.4%

Tianjin 11.6%

Huizhou 0.8%

1,107

1,483 1,503

629 692

9,172 9,000

14,118

11,204 12,574

0

4,000

8,000

12,000

16,000

0

200

400

600

800

1,000

1,200

1,400

1,600

FY2015 FY2016 FY2017 1H2017 1H2018

Recognized GFA ASP

GFA ‘000 sq.m.

ASP RMB/ sq.m.

3,418 4,019 7,047 8,973

6,740 9,327

14,166

0

5,000

10,000

15,000

20,000

25,000

FY2015 FY2016 FY2017 1H2018IH 2H

RMB mn

*After tax

Recognized GFA & ASP

Recognized GFA by city

Analysis on Recognized Property Sales

Recognized property sales*

Recognized sales by city

20

Xiamen 10.0% Fuzhou

5.7%

Quanzhou 7.6%

Longyan 3.7%

Shanghai 8.8% Hefei

39.5%

Nanjing 4.8%

Bengbu 1.1%

Tianjin 17.8%

Huizhou 1.0%

20,083

25,787 27,567

36,548

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

2015 2016 2017 2018

Strong Balance Sheet

RMB mn

Total Debt

Total Equity

Cash Position

Total Assets

11,949

17,418 17,498

25,087

0

5,000

10,000

15,000

20,000

25,000

30,000

2015 2016 2017 2018

RMB mn

52,846

68,861 79,905

103,728

0

20,000

40,000

60,000

80,000

100,000

120,000

2015 2016 2017 2018

RMB mn

10,241 11,673

17,443 18,202

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

20,000

2015 2016 2017 2018

RMB mn

21

As at 31 Dec As at 30 Jun As at 31 Dec As at 30 Jun

As at 31 Dec As at 30 Jun As at 31 Dec As at 30 Jun

RMB, 63%

HK$, 3%

US$, 34%

18,845

7,703

10,000

Sustained a manageable net gearing ratio, with successful financing measures that further reduced the average funding cost

Moody’s, S&P and Fitch retained our ratings at Ba3, BB- and BB- respectively

Golden Credit Rating International and China Chengxin Securities Rating issued AA+ rating respectively

Stable Financial Position & Diversified Financing Channels

Low Weighted Average Financing Cost

7.00

6.08

6.52

5.00

6.00

7.00

8.00

FY2015 FY2016 FY2017 1H2018

%

Proportion of Foreign Currency Debt

1H2018 FY2017

Onshore 6.77% 6.41%

Offshore 6.21% 5.57%

Weighted Average

6.52% 6.02%

6.02

Optimized Financing Structure (RMB mn）

Bank and other loans Due within first year: 7,406 mn In the second year: 5,334 mn In the third to fifth year: 5,480 mn Beyond fifth year: 625 mn

Senior notes Due in 2021：3,773 mn Due in 2022：2,293 mn Due in 2023：1,637 mn

Corporate bonds Due in 2018: 2,000 mn Due in 1H2019: 2,000 mn Due in 2H2019: 3,000 mn Due in 2020: 3,000 mn

22

（RMB bn） 1H2018 FY2018E

Cash Inflow

Cash proceeds from contracted sales and other income +17.5 +37.3

Cash Outflow

Land premium paid -10.6 -21.3

Construction cost capex -4.5 -9.0

Other expenses – Interest, tax, dividends and others -4.4 -10.2

1H2018 Cash Position

23

Future Perspective Rise to the challenge and achieve good quality

Yuzhou · Honor Hill

Market Outlook

25

Tightened Industry

Policies Normalized

We expect regulation to become the norm during the second half of 2018 in order to stabilize the market with local regulation entering a fine-tuning stage.

Rational Land Market

With a price cap policy in place and a tightening of funds, the investment and land acquisition strategies for major real estate enterprises in the second half of the year will become increasingly rational.

Tightening Financing

Environment

Cornerstone monetary policies remained stable and neutral. As a result small-size real estate enterprises will encounter financing difficulties under this environment while larger firms will enjoy incomparable advantages due to diversified financing channels and sound credit ratings, which will further increase industry consolidation.

Steady Growth Period

Relying on greater civil development, demand in the real estate industry will continue to be strong. Policy normalization will lead the entire sector into an era of steady growth.

Strategies for 2H2018

26

Maintain a balance between profit,

scale and risk to ensure quality

growth and maximized corporate

value, as well as protecting

shareholders’ interests.

Operational Strategy

In line with industry trends，increase M&A opportunities to obtain land at low prices and strengthen business cooperation.

Win-win Cooperation

High Quality Products Strictly control quality with standard landscaping, building as well as mechanical and electrical fixtures. Further enhance building quality and delivery levels. High quality products have laid a solid foundation for Yuzhou’s trusted brand reputation.

Nurture new staff with a comprehensive internal training system, and retain employees with a generous incentive system and positive work atmosphere.

Talent Cultivation

Always maintain diversified financing channels. Explore and aim to adopt innovative financing tools. Company is now better poised to contribute to the Group’s overall sustained and steady development.

Financing Channels

Focus on first- and second-tier cities and their surrounding satellite cities that offer tremendous growth potential. Invest in potential projects and locations with attractive prices.

Land Acquisition

High Quality & Abundant Saleable Resource

Confident of achieving full year target of RMB60billion in contracted sales for 2018

2018 Total Saleable Resource Amounts to 92bn 2H2018 Accumulated Saleable Resource Amounts to

70.5bn and breakdown by City

Xiamen, 12.74%

Quanzhou, 3.17%

Fuzhou, 6.49%

Hefei, 10.50%

Shanghai, 8.84%

Tianjing, 5.45% Longyan, 0.02% Suzhou, 11.47%

Hangzhou, 6.77%

Bengbu, 0.69%

Nanjing, 14.54%

Yangzhou, 1.70%

Zhangzhou, 2.74%

Huizhou, 0.59%

Hubei, 6.22%

Zhengzhou, 1.97%

Shenyang, 0.46%

Chongqing, 3.35% Qingdao, 1.97%

Foshan, 0.33%

0% 20% 40% 60% 80% 100%

Old Projects

18%

1H2018 Saleable Resource

35%

New Projects 82%

2H2018 Saleable Resource

65%

27

Key Projects in 2H2018

• The center of the south area of Qiantan, gifted with the largest wild wetlands/Central Park in Shanghai, and regarded as an oriental aesthetics masterpiece

• GFA: 174,826 sq.m.

• Unit size: 85 - 145 sq.m.

• Land cost: RMB 13,242/sq.m.

• ASP: ≈RMB 35,000/sq.m.

• Located in Tianjing Binhai New Area with complete supporting facilities including education, education, health care, recreation and other living facilities and landscape resources

• GFA: 76,296 sq.m.



• ASP: ≈RMB 17,000/sq.m.

• Located in the core area of Tiexin bridge communities, Yuhuatai district, Nanjing. This project is a TOD urban complex above subway station in Nanjing main urban area with high-end residential buildings, commercial center and public facility

• GFA: 61,152 sq.m.



• ASP: ≈RMB 35,000/sq.m.

• Located in West Lake District, Hangzhou, Zhejiang, and being connected by Zhijiang Bridge and Zizhi tunnel with the main city. This project has convenient transportation and complete supporting facilities and is in the most livable urban area

• GFA: 298,733 sq.m.



• ASP: ≈RMB 30,000/sq.m.

Shanghai Yuzhou Noble Mansion (上海禹洲·雍賢府)

Hangzhou Yuzhou Riverside Sapphire (杭州禹洲·濱之江)

Tianjin Yuzhou Joy Country (天津禹洲·悅府)

Nanjing Yuzhou Honor Galaxy (南京禹洲·嘉薈星島)

28

Key Projects in 2H2018

• Located in Wuhan’s economic and technological development zone, on the Jiangcheng and Taizi North Roads. Supporting facilities include a well-developed shopping mall. Taizi Lake and golf courses.

• GFA: 598,179 sq.m.



• ASP: ≈RMB 20,000/sq.m.

• Located in the core area of Lingang harbour city , next to Jiulong Fengxi Lake and Yangzhou Zijing eco-center, north of Sports park with abundant education resources

• GFA: 174,100 sq.m.



• ASP: ≈RMB 9,000/sq.m.

• Located in the core area among Yaohai, Xinzhan and Luyang district. The location advantage and surrounding facilities are unparalleled. Yuhzou updated the high-rise product, which aim to build a high-end communities in Hefei

• GFA: 144,923 sq.m.



• ASP: ≈RMB 14,800/sq.m.

• Located in High-tech zoon, Suzhou, next to central ring express, north of Dayang hill ecopark, east of Suzhou Science & Technology Town (SSTT) . Complete surrounding facilities and shopping mall

• GFA: 221,847 sq.m.



• ASP: ≈RMB 20,000/sq.m.

Wuhan Taizi Lake Project (武漢太子湖項目)

Suzhou Yuzhou Honor Hill (蘇州禹洲·嘉譽山)

Yangzhou Yuzhou Honor Glamour (揚州禹洲·嘉譽風華)

Hefei Yuzhou Sky Aqua Mall (合肥禹洲·天河茂)

29

Appendix

Yuzhou · Riviere Mansion

Monthly Transaction Volume and ASP of Residential Properties

Residential Land Supply and Property Transactions – Xiamen

Source: CRIC, pure residential and commercial land obtained by bidding and auction in open market (excluding subsidized housing)

Source: CRIC, residential housing (excluding subsidized housing)

31

'000 sq.m

'000 sq.m.

RMB/sq.m.

RMB/sq.m.

2,246

1,248 1,554

1,735 2,024 1,813 1,428

968

2,622

4,777 4,490

3,144 3,516

2,731

1,505

547 3,399 3,479 11,972

11,532 5,829

28,769 25,658

21,485

13,905 13,482 15,701 19,848 20,535

26,518

34,375 35,668

0

10,000

20,000

30,000

40,000

0

1,000

2,000

3,000

4,000

5,000

2011 2012 2013 2014 2015 2016 2017 1H2018

Land Supply (GFA) for Residential Properties '000 sq.m. Transaction Volume of Residential Properties '000 sq.m.

Per GFA Land Cost RMB / sq.m. ASP of Residential Properties RMB / sq.m.

239

166 142 117

83 93 71 72

401

168

81 103 67 68

117 151

118 90

66 78 85 68 119

68

28,761 28,116

26,914

31,316

37,283

31,520 31,536

39,151

33,567

33,693

35,266

35,271

38,282 33,377

32,178

35,292

34,105

35,355

36,371

39,219

29,609 31,942

35,080 36,609

0

10,000

20,000

30,000

40,000

50,000

0

100

200

300

400

500

Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18

Monthly Transaction Volume of Residential Properties '000 sq.m. ASP of Residential Properties RMB / sq.m.

31

Xiamen Real Estate Market Overview


Residential Land Supply and Property Transactions – Fuzhou



32

'000 sq.m

'000 sq.m.

RMB/sq.m.

RMB/sq.m.

3,850

3,135

4,948

2,176 2,526

2,793

4,068

2,587 1,875

2,524 2,764 2,410

3,023 2,652

1,501

853 4,490 3,060 11,972 3,900 10,749 10,088 10,517

12,315 14,231 14,188 16,372

16,552 14,910

16,879

21,636 23,381

0

10,000

20,000

30,000

40,000

0

1,000

2,000

3,000

4,000

5,000

2011 2012 2013 2014 2015 2016 2017 1H2018



216

280

339

160

68

116 80

104 148

53 61 79 96

127 152

187 171

236

165 128 133

113 74

97

16,888

18,263 18,551

18,984 19,497

18,546

16,942

16,187

17,037

18,751

20,347

18,680

22,414 24,965

24,397

21,926 25,376

23,675 23,433

23,014

23,057

22,508

22,904 24,934

0

5,000

10,000

15,000

20,000

25,000

30,000

0

100

200

300

400



32

Fuzhou Real Estate Market Overview


Residential Land Supply and Property Transactions – Shanghai



33

'000 sq.m

'000 sq.m.

RMB/sq.m.

RMB/sq.m.

15,526

10,319

15,058

10,494 11,450

7,889

10,976

4,688

7,278 9,342

12,800

9,713

14,973 13,917

6,392

3,359 3,840 4,125 11,972 9,041 9,779

17,261 8,973

9,220

22,413 22,594

24,253 27,212

32,001 38,283

47,865 48,878

0

10,000

20,000

30,000

40,000

50,000

60,000

0

5,000

10,000

15,000

20,000

2011 2012 2013 2014 2015 2016 2017 1H2018



1,314

1,870

1,038 868

603 663

387 361

742 672 709 685 670 461 530

335 374 465 501

203

489 462 548 437

37,357

42,475

44,893 44,042

46,545

40,794

48,205

47,244

48,014

47,682

48,276

47,623

46,189 48,958

45,989

48,790

49,214

49,543 43,799

43,166

45,741

46,810

51,614 51,654

0

10,000

20,000

30,000

40,000

50,000

60,000

0

500

1,000

1,500

2,000



33

Shanghai Real Estate Market Overview


Residential Land Supply and Property Transactions – Hefei



34

'000 sq.m

'000 sq.m.

RMB/sq.m.

RMB/sq.m.

13,489

19,698 21,324 22,377

15,895 18,040

10,883 8,394

4,519 8,167

12,319 9,240 9,147 9,211

4,073 5,699

1,641 1,468 11,972 2,050 3,509

8,839

6,561 5,748 6,854 6,472 6,722

7,672 8,500 11,178

12,666 14,305

0

3,000

6,000

9,000

12,000

15,000

0

5,000

10,000

15,000

20,000

25,000

2011 2012 2013 2014 2015 2016 2017 1H2018



818 1,013 1,031

522

236 341

216 211 209 219 265 229

405 435 552

436 587

305

711

283 169

1,321 1,352

915

12,002 11,689

14,034

12,365

13,686

11,283

11,693

13,228

13,873 13,486

11,560

12,672

11,557

11,617

11,894

11,690 14,295

15,125 13,696

13,160

14,739

12,742

15,005 14,911

0

4,000

8,000

12,000

16,000

0

300

600

900

1,200

1,500



34

Hefei Real Estate Market Overview


Residential Land Supply and Property Transactions – Nanjing



35

'000 sq.m

'000 sq.m.

RMB/sq.m.

RMB/sq.m.

13,108

9,442

12,232 12,819 11,086 9,871

8,566 6,117

4,499

7,708 10,001

8,615

12,787 15,860

8,869

4,760

2,711 3,376

11,972 4,070

7,180 14,630

12,675

7,907

10,991

10,967

12,252 13,804

15,140

18,913

21,601 22,856

0

5,000

10,000

15,000

20,000

25,000

0

5,000

10,000

15,000

20,000

2011 2012 2013 2014 2015 2016 2017 1H2018



1,460 1,208

1,556

941 797

610 616

337

649 723 1,001 860 833

488

915

533 676

1,239 994

394 451 657 635 565

20,782 20,019

21,573

20,664 21,009

20,607

20,764

21,107

20,187

20,878

20,955

21,151

22,063

21,519

24,899 20,931

23,417

20,734 23,506

21,732

22,324

20,167

20,634 22,450

0

5,000

10,000

15,000

20,000

25,000

30,000

0

500

1,000

1,500

2,000



35

Nanjing Real Estate Market Overview


Residential Land Supply and Property Transactions – Hangzhou



36

'000 sq.m

'000 sq.m.

RMB/sq.m.

RMB/sq.m.

6,561 7,079

14,898

7,412 7,056

10,275 11,871 10,429

3,842

8,197 8,663 8,903

12,867

18,673

15,109

7,903

4,969 6,071 11,972 7,263 8,085 13,388

16,086 17,223 16,619 14,581 16,663 15,484 15,878 17,313

22,987 26,102

0

5,000

10,000

15,000

20,000

25,000

30,000

0

5,000

10,000

15,000

20,000

2011 2012 2013 2014 2015 2016 2017 1H2018



1,728

1,637

2,380

1,552

807 994

716 652

1,604

1,131 1,000

1,923 1,538 1,515

1,312 979 984

1,749 1,605

690

1,127 945 821

1,436 16,382

18,143

18,604

18,983 17,208

18,857

19,143 19,441 19,823

20,063

20,028

22,618 24,635

25,330

25,110 28,106

26,561

22,831

25,296

26,530

25,239

26,255

26,819 27,447

0

5,000

10,000

15,000

20,000

25,000

30,000

0

500

1,000

1,500

2,000

2,500

3,000



36

Hangzhou Real Estate Market Overview


Residential Land Supply and Property Transactions – Suzhou



37

'000 sq.m

'000 sq.m.

RMB/sq.m.

RMB/sq.m.

7,197

11,849 10,570 9,523 9,112

12,333

10,608

3,403 4,031

6,410 8,089

7,701

11,763 12,677

8,716

4,438

3,993 2,693 11,972 3,905 6,596

13,251 11,448

10,581 12,329 11,226 11,888 12,116

13,163

17,355 18,621 19,460

0

5,000

10,000

15,000

20,000

25,000

0

3,000

6,000

9,000

12,000

15,000

2011 2012 2013 2014 2015 2016 2017 1H2018



821

954

1,672

829

391 457 444 459

929 749 642

1,084 753 644 746 718 764 784 639

374 508

637 617 828

18,065

17,130 18,238 20,654 20,682

19,404 17,516

18,540 19,096

18,877

19,852

18,174

18,254

19,355

17,923

18,338

18,485

18,897

19,040

19,201

18,684

19,491

19,700 19,488

0

5,000

10,000

15,000

20,000

25,000

0

500

1,000

1,500

2,000

2,500



37

Suzhou Real Estate Market Overview


Residential Land Supply and Property Transactions – Wuhan



38

'000 sq.m

'000 sq.m.

RMB/sq.m.

RMB/sq.m.

34,506

45,231

22,762 26,290 23,212 23,237

28,463

12,199 8,289 10,856

14,807 16,255 21,468

28,798

18,263

8,358 1,898 1,831 2,276 2,178 3,267 5,060 5,076

4,051

7,430 7,152 7,093 7,796

8,810 9,432

10,031 9,631

0

3,000

6,000

9,000

12,000

0

10,000

20,000

30,000

40,000

50,000

2011 2012 2013 2014 2015 2016 2017 1H2018



2,270 2,747

1,979 2,094

2,448 2,276

1,292 990

1,845 1,662 1,511 1,493 1,494

1,249 1,496 1,651 1,533

2,048 1,735

585 1,008 1,090 1,161

1,633

9,414

9,295 9,678 9,427

9,804

9,616 9,876

9,602 9,763

10,059

10,227

10,382

10,291

10,690

9,824

10,396

9,728

9,648

9,611

9,518

9,552

9,667

9,721 9,593

0

2,000

4,000

6,000

8,000

10,000

12,000

0

1,000

2,000

3,000

4,000



38

Wuhan Real Estate Market Overview


Residential Land Supply and Property Transactions – Tianjin



39

'000 sq.m

'000 sq.m.

RMB/sq.m.

RMB/sq.m.

25,895

17,040 18,205 13,218

9,017

17,588

12,490 10,096 8,865 8,888

11,819 9,566

13,561

23,321

13,786

3,590 1,974 2,674 2,276 5,039 5,766 8,796

10,315 7,782

9,347 10,061 10,218

10,553 11,546 13,458

15,670 15,921

0

5,000

10,000

15,000

20,000

0

5,000

10,000

15,000

20,000

25,000

30,000

2011 2012 2013 2014 2015 2016 2017 1H2018



1,821 2,012 1,901 2,316

1,984 2,068

760 763

2,071

953 1,235 1,478 1,276

1,065 1,167 954 989 1,074

582 370

756 634

1,248

12,596 12,602

14,464 14,787 15,647

16,350 14,934

16,799 17,117

14,770

15,091

15,811

15,396

15,563

14,623

15,285

15,691

15,762

15,291 16,607

15,927

16,077

15,929

0

5,000

10,000

15,000

20,000

0

1,000

2,000

3,000

4,000

Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18


39

Tianjin Real Estate Market Overview


Residential Land Supply and Property Transactions – Huizhou



'000 sq.m

'000 sq.m.

RMB/sq.m.

RMB/sq.m.

15,004

8,561 7,994 6,847

4,695

2,495 1,693 2,780

6,401 7,328 6,409

9,093

653 753 2,276 1,019 2,050

1,868

6,712 6,808 6,350 7,573

11,183

10,599

0

3,000

6,000

9,000

12,000

0

3,000

6,000

9,000

12,000

15,000

18,000

2013 2014 2015 2016 2017 1H2018



506 641 595 820

385 368 381 355

792 609 574

410 241 330 437 501

823 956 999

711

1,049 1,189

2,216

1,414

7,482

7,737 7,934 8,286 8,409

10,032

9,798

12,087 11,966

11,819

11,978

11,487

10,671

11,201

12,054

10,899

10,585

10,133

9,355 10,519

10,025 10,086 10,791 11,555

0

3,000

6,000

9,000

12,000

15,000

0

500

1,000

1,500

2,000

2,500



40

Huizhou Real Estate Market Overview


Residential Land Supply and Property Transactions – Shenyang



'000 sq.m

'000 sq.m.

RMB/sq.m.

RMB/sq.m.

44,567 40,377

32,758

11,825

4,784 6,128 4,916 5,104

13,739 11,068

14,233 11,128

13,712 14,879 15,879 8,686

1,508 1,518 2,276 2,160 1,866 2,727

4,971 4,680

6,383 7,112 7,189 7,003

6,450 7,022

7,909 8,833

0

3,000

6,000

9,000

0

10,000

20,000

30,000

40,000

50,000

2011 2012 2013 2014 2015 2016 2017 1H2018



1,020 1,232

1,642 1,557 1,624 1,462

590 804

1,438

1,848 1,762

1,563 1,553

1,028

1,468 1,202 1,268 1,354

920

444

1,039

1,522 1,333 1,446

7,163

7,058 7,477 7,393

6,866 6,917

7,347

7,353 7,543 7,565 7,792

7,561

8,566

7,304

8,165

8,387

8,372

8,472

8,258

8,050

8,472 8,894

8,794

0

3,000

6,000

9,000

0

500

1,000

1,500

2,000

2,500

3,000



41

Shenyang Real Estate Market Overview

1H2018 Key Financials

1H2018 1H2017 Changes

Revenue (RMB’000) 9,242,624 7,246,747 +27.54%

Gross profit (RMB’000) 2,914,092 2,387,975 +22.03%

Gross profit margin (%) 31.53% 32.95% -1.42pp

Core profit (RMB’000) 1,158,064 919,831 +25.90%

Core profit margin (%) 12.53% 12.69% -0.16pp

EPS (RMB fen/share) 30.55 20.57 +48.52%

CEPS (RMB fen/share) 27.67 24.09 +14.86%

42

1H2018 Key Financials (Cont’d)

(RMB’000) As at 30 Jun 2018 As at 31 Dec 2017 Changes

Total assets 103,728,142 79,904,817 +29.81%

Total liabilities 85,525,838 62,461,581 +36.93%

Total equity 18,202,304 17,443,236 +4.35%

Total cash 25,087,294 17,498,208 +43.37%

Total debt 36,547,535 27,567,486 +32.57%

Net debt 11,460,241 10,069,278 +13.81%

Net gearing ratio (%) 62.96%

(including senior perpetual securities 82.09%)

57.73% (including senior perpetual

securities 77.14%)

+5.23pp

43

These materials have been prepared by Yuzhou Properties Company Limited (the “Company”) solely for informational use during its presentation to current and/or prospective investors to provide an update on the business performance and development of the Company.

No representation or warranty expressed or implied is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained herein. It is not the intention to provide, and you may not rely on these materials as providing, a complete or comprehensive analysis of the Company’s financial or trading position or prospects. The information contained in these materials should be considered in the context of the circumstances prevailing at the time and is subject to change without notice and has not been, and will not be, updated to reflect material developments which may occur after the date of the presentation. None of the Company nor any of its respective directors, officers, employees, affiliates, advisors or representatives shall have any liability whatsoever (in negligence or otherwise) for any loss or damage howsoever arising from any use of these materials or their contents or otherwise arising in connection with these materials.

These materials and subsequent discussions may contain certain statements which would constitute "forward-looking statements”. Such forward-looking statements involve risks, uncertainties, future events and our future financial, operational, business or other performance, and are subject to a number of uncertainties and factors that may cause the actual results, performance or achievements of the Company to be materially different from those expressed by, or implied by, the forward-looking statements in these materials. There can be no assurance that the results and events contemplated by the forward-looking statements contained in these materials will in fact occur. You should not place undue reliance on these forward-looking statements, which reflect our belief only as of the date of this presentation. These forward-looking statements are based on our own information and on information from other sources we believe to be reliable. Past performance cannot be relied on as a guide to future performance.

This document does not constitute an offer or invitation to purchase or subscribe for any securities of the Company or any holding company or any of its subsidiaries or an inducement to enter into any investment activity. No part of these materials, or the fact of its distribution or use, shall form the basis of or be relied upon in connection with any contract, commitment or investment decision in relation thereto.

44

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