Speakers - ir.yuzhou-group.comir.yuzhou-group.com/documents/presentation/en/ar17.pdf · Contracted ASP increased by 33% YoY, due to change of product portfolio ... GHM Big Bay Area,

Speakers

Mr. LAM Lung On, J.P. Deputy to the National People’s Congress,

Founder, Chairman & Executive Director

Mr. CAI Minghui Executive President

Mr. Jacky WONG CFO & Company Secretary

3

Founder

Vice Chairman of the All-China General Chamber of

Industry and Commerce (Member of the All-China

Federation of Industry and Commerce (“ACFIC”))

Honorary President of the Hong Kong Chinese Importers’

& Exporters’ Association

Member of the Hong Kong Special Administrative Region

Election Committee

President of the Hong Kong Xiamen Friendship Union

Member of Tianjin Committee of the Chinese People’s

Political Consultative Conference

Visiting Professor of the University of Science and

Technology of China

Mr. Lam Lung On, J.P.

Founder, Chairman and Executive Director

Deputy to the National People’s Congress

4

Company Highlights

Contracted sales – record high

RMB40.3bn, +73.7% Revenue +58.7%

Gross Profit Margin 35.4%

Core Profit Margin 13.5%

Payout Ratio 36%

Moody’s Ba3

S&P BB-

Fitch BB-

6 metropolises

with 23 cities

3 product lines are popular with increasing brand recognition 2018 contracted sales

target RMB60bn

High Profitability & Payout Ratio

National Layout Healthy

Financial Position

Upgraded by Capital Market

Target RMB100bn+

Robust Contracted Sales

Ample Land Bank

Strong Brand Name

• Hang Seng Composite Large Cap & Mid Cap Indexes

• Southbound Trading under Hong Kong – Shanghai Stock Connect

*Net gearing 57.7%

Finance cost 6.02%

*including senior perpetual securities. 77%

Land Bank: 15mn+ sq.m. Saleable Resources: RMB300bn+

Avg. Land Cost: RMB4,500+ *as at Mar 27, 2018

Business Overview – A journey of RMB100bn in contracted sales begins A fruitful year in 2017: achieved the goal of RMB40bn contracted sales with quality land bank replenishment; established product lines with Yuzhou features. Other segments also delivered.

Hangzhou · Riverside Sapphire

Sales performance has grown dramatically over the past few years. Contracted sales increased to RMB40.3bn in

2017 and hit a record high

Contracted ASP increased by 33% YoY, due to change of product portfolio

Presence actively extended in the first- and second-tier cities and their satellite cities with convenient rail

transportation

In-demand quality residential products launched to cater to rising consumption standards

9,997

12,689

16,929

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

FY2015 FY2016 FY2017

RMB / sq.m. RMB mn

Contracted Sales

5,737

12,872

21,487 8,281

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

FY2015 FY2016 FY2017

1H 2H

14,018

23,206

40,306

CAGR: 70%

‘000 sq.m.

Contracted GFA

637

1,011

1,283

765

818

1,098

0

500

1,000

1,500

2,000

2,500

FY2015 FY2016 FY2017

1H 2H

1,829

1,402

2,381

CAGR: 19%

6

Strong Contracted Sales Hit a Record High

Contracted ASP

FY2017 FY2016 FY2015

# of Cities 12 9 8

Contracted ASP (RMB/sq.m.)

16,929 12,689 9,997

FY2017 Contracted Sales by City

Xiamen 20%

Fuzhou 10%

Quanzhou 4%

Longyan 1%

Shanghai 17%

Nanjing 17%

Hefei 13%

Hangzhou 8%

Suzhou 1%

Bengbu 3%

Tianjin 5%

Huizhou 1%

Contracted Sales in FY2017

# Project City

Interest in

Project Contracted Sales As of Total Contracted GFA Contracted ASP

(%) (RMB mn) (%) (sq.m.) (RMB/sq.m.)

1 Yuzhou Central Coast Xiamen 100% 132 0% 7,114 18,515

2 Yuzhou Riverside City Town Xiamen 100% 3,071 8% 158,386 19,391

3 Haicang Dream Town Xiamen 20% 1,054 3% 52,991 19,884

4 Yuzhou Lucca Town Xiamen 100% 1,377 3% 47,409 29,035

5 Chunjiang Central Xiamen 51% 1,678 4% 57,671 29,093

6 Yuzhou Gushan No.1 Fuzhou 100% 219 1% 8,929 24,517

7 Yuzhou Oriental Venice Fuzhou 100% 2,553 6% 133,042 19,198

8 Yuzhou Cambridge Town Fuzhou 100% 99 0% 8,712 11,351

9 Yuzhou Reliance Central Mansion Fuzhou 66% 1,036 3% 36,769 28,204

10 Yuzhou City Plaza Quanzhou 100% 1,671 4% 263,586 6,338

11 Yuzhou Castle above City Longyan 100% 186 0% 21,197 8,771

12 Others Xiamen 100% 859 2% 32,399 26,498

West Strait Economic Zone 13,935 34% 828,205

13 Yuzhou City Plaza Shanghai 100% 541 1% 36,197 14,947

14 Yuzhou Commercial Plaza Shanghai 100% 94 0% 6,035 15,568

15 The Bustling Center Shanghai 100% 145 0% 3,475 41,774

16 Beautiful Garden Life Shanghai 100% 1,753 4% 55,437 31,597

17 Yuzhou Noble Mansion Shanghai 40% 2,393 6% 70,555 33,917

18 Yuzhou Mansion Shanghai 40% 994 2% 21,949 45,266

19 Yuzhou Dongtan Grace Mansion Shanghai 80% 1,075 3% 30,936 34,752

20 Yuzhou Central Plaza Hefei 100% 846 2% 99,184 8,533

21 Yuzhou Town Hefei 51% 74 0% 7,340 10,111

22 Yuzhou Royal Seal Hefei 100% 2,151 5% 207,940 10,345

23 Yuzhou Central Town Hefei 100% 2,164 5% 145,830 14,838

24 Yuzhou Moon Lake Mansion Hefei 36% 51 0% 2,975 17,124

25 Yuzhou Sky Aqua Mall Hefei 100% 92 0% 6,524 14,048

26 Yuzhou The Jiqing Nanjing 100% 1,140 3% 32,169 35,423

27 Yuzhou Lakeside Nanjing 49% 1,223 3% 98,392 12,432

28 Yuzhou Moon Riverside Nanjing 100% 755 2% 30,270 24,950

29 Yuzhou King’s Garden Nanjing 40% 1,861 5% 61,454 30,286

30 Redsun Yuzhou The Times Nanjing 51% 1,708 4% 135,187 12,635

31 Redsun Yuzhou The Spring Nanjing 51% 254 1% 11,114 22,881

32 Yuzhou Riverside Sapphire Hangzhou 49% 3,153 8% 108,273 29,123

33 Yuzhou Zhaoshang The Absolute Suzhou 20% 531 1% 35,957 14,779

34 Yuzhou Prince Lakeshire Bengbu 100% 1,161 3% 189,655 6,121

Yangtze River Delta 24,159 60% 1,396,848

35 Yuzhou Wujing The Scenery Huizhou 51% 219 1% 20,637 10,632

GHM Big Bay Area 219 1% 20,637

36 Yuzhou Palace Country Tianjin 100% 306 1% 33,384 9,165

37 Yuzhou Royal Lakeshire Tianjin 100% 373 1% 38,125 9,784

38 Yuzhou Lianfa Red Shire Tianjin 40% 1,314 3% 63,744 20,611

Bohai Rim River 1,993 5% 135,253

Total 40,306 2,380,943 16,929

8

Monthly Contracted Sales & Contracted ASP (Jan 2016 – Dec 2017)

1,299 1,367

2,962

2,492 2,282

2,470

1,951 1,982 1,853

1,722

1,213

1,613

2,064

2,981

5,106

3,891 3,995

3,450

2,694 2,511

2,200

3,525

4,290

3,598

13,411

10,939 11,462

14,309

13,788

12,956 11,745

15,418

13,910

9,628

11,028

15,885 13,148

14,435 16,146

17,728 18,799 20,116

16,921 17,180

16,828

20,000

17,203

15,252

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 2016 Contracted Sales in 2017 ASP in 2016 ASP in 2017

Contracted ASP (RMB/sq.m.)

Contracted Sales (RMB mn)

Monthly Contracted Sales & ASP in 2017

RMB mn

10,376

13,672

21,701

3,709 4,959

7,683

35.7% 36.3%

35.4%

0.0%

10.0%

20.0%

30.0%

40.0%

0

4,000

8,000

12,000

16,000

20,000

FY2015 FY2016 FY2017

Revenue Gross profit Gross margin

Revenue, Gross Profit & Gross Profit Margin

1,107 1,483 1,503

9,172 9,000

14,118

0

4,000

8,000

12,000

16,000

0

400

800

1,200

1,600

FY2015 FY2016 FY2017

Recognized GFA ASP

GFA ‘000 sq.m.

ASP RMB ‘000 / sq.m.

1,620

2,047

2,924

0

1,000

2,000

3,000

4,000

FY2015 FY2016 FY2017

RMB mn

Recognized GFA & ASP

EBITDA (a) Core Net Profit (b)

3,883

5,325

7,609

0

2,000

4,000

6,000

8,000

FY2015 FY2016 FY2017

9

Win-Win of Scale & Profitability

RMB mn

(a) EBITDA = net income + capitalized borrowing cost under cost of sales + finance cost + income tax expense + amortization + depreciation + Goodwill impairment – interest income – fair value gain/ (loss) on investment properties – fair value gain/(loss) on derivative financial instruments

(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 (less) on derivative financial instruments and goodwill impairment

Tangshan

Shanghai Wuhan

Fuzhou

Xiamen

Tianjin

West Strait Economic Zone

Yangtze River Delta Region

Bohai Rim Region

Central China Region

Region GFA

(million sq.m.)

Average Land Cost

(RMB)

Land Bank Proportion

(%)

Yangtze River Delta

6.13 6,960 51.7%

Region GFA

(million sq.m.)

Average Land Cost

(RMB)


(%)

West Strait

3.43 3,953 29.0%

Region GFA

(million sq.m.)

Average Land Cost

(RMB)


(%)

Central China

0.60 6,000 5.1%

Suzhou

Hangzhou

Zhangzhou Huizhou GHM Big Bay Area

Region GFA

(million sq.m.)

Average Land Cost

(RMB)


(%)

Big Bay Area

0.41 3,338 3.4%

Hong Kong

Zhoushan Nanjing Hefei

Bengbu

Longyan Quanzhou

Qingdao

As of Dec 31, 2017, cultivating 5 metropolitan areas with a footprint in 19 cities

As of Dec 31, 2017, the land bank was approximately 11.8 mn sq.m. with the average land cost of RMB5,697

Strategic Planning of Land Acquisition at Attractive Value

Region GFA

(million sq.m.)

Average Land Cost

(RMB)


(%)

Bohai Rim

1.28 4,937 10.8%

Yangzhou

10

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

Acquistion, 60.7%

Bidding & Auction, 39.3%

2017 Land Acquisition Strategy*

Bohai Rim Region, 27%

Yaangtze River Delta

Region, 42%

West Strait Economic Zone, 20%

GHM Big Bay Area,

11%

Saleable GFA

11

New Land Bank in FY2017

*Based on saleable GFA

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.)

Mar Tianjin Resi Bidding 42% 45,437 54,524 22,900 758 318 13,902

Apr Tianjin Resi Bidding 100% 79,346 95,215 95,215 1,325 1,325 13,916

Apr Zhangzhou Resi / Com Bidding 51% 37,774 94,434 48,161 1,020 520 10,801

Apr Zhangzhou Resi Bidding 40% 38,808 116,425 46,570 1,257 503 10,797

May Suzhou Resi Bidding 51% 63,504 66,679 34,006 863 440 12,943

May Nanjing Resi/ Com Acquisition 60% 94,667 182,307 109,384 706 424 3,873

May Xiamen Resi / Com Bidding 100% 18,830 42,800 42,800 1,349 1,349 31,519

May Hangzhou Resi Bidding 100% 53,489 149,769 149,769 3,004 3,004 20,058

Jun Suzhou Resi/ Com Bidding 51% 29,141 58,282 29,724 488 249 8,373

Jun Nanjing Resi/ Com Bidding 51% 37,798 83,157 42,410 585 298 7,035

Jun Huizhou Resi/ Com Acquisition 51% 44,950 191,159 97,491 702 358 3,672

Aug Yangzhou Resi/ Com Acquisition 40% 80,100 174,100 69,640 320 128 1,838

Aug Tianjin Resi Bidding 40% 62,024 74,429 29,772 970 388 13,033

Sep Shanghai Resi Acquisition 80% 54,052 54,593 43,674 1,050 840 19,233

Sep Suzhou Resi/ Com Bidding 33% 173,253 346,506 114,347 3,259 1,075 9,405

Sep Suzhou Resi Bidding 51% 32,339 51,742 26,388 486 248 9,393

Oct Huizhou Resi/ Com Acquisition 70% 70,583 223,748 156,624 395 277 1,765

Oct Qingdao Resi Acquisition 35% 36,386 72,772 25,470 709 248 9,743

Oct Nanjing Resi Bidding 20% 73,277 146,554 29,311 1,150 230 7,847

Oct Suzhou Resi Bidding 23% 52,932 111,157 25,566 1,019 234 9,167

Nov Zhoushan Resi Acquisition 50% 109,563 230,471 115,236 2,074 1,037 8,999

Dec Tangshan Resi/ Com Acquisition 90% 213,610 608,789 547,910 1,300 1,170 2,135

Dec Zhangzhou Resi/ Com Acquisition 25% 531,963 563,881 140,970 956 239 1,695

Total 2,033,827 3,793,493 2,043,338 25,745 14,902 6,787

Boutique「 3.5」

Residential buildings with PC system prefabricated structures

3 popular product lines

Honor Langham Royale

悅府雍賢府禹洲府

12

Establishing Three Popular Product Lines with Craftsmanship

• Arts：From techniques to arts

• Experience：From external to internal

• Openness：From customers to end users

+ Services

Product Mix

7

3 First-time Buyer andUpgrader

Upgrader

First-time Buyer and Upgrader

First-time Upgrader Upgrader Target Group :

Name Business Form City of Location

Yuzhou World Trade Centre MALL

Xiamen Haicang Yuzhou Living Plaza Commercial Street

Yuzhou Central Coast Commercial Street

Yuzhou Plaza Office Building

Yuzhou City Plaza MALL

Quanzhou Huian Golden Street Commercial Street

Huian Plaza Office Building

Yuzhou Commercial Plaza MALL

Shanghai

Yuzhou Plaza Office Building

Research Building Office Building

Yuzhou Jinqiao International Commercial Floor in

Residential Building

Yuzhou Land Dream Commercial Floor in

Residential Building

Yuzhou Central Plaza MALL

Hefei Yuzhou Central Plaza

Commercial Street Commercial Street

Projects in Operation: 14

Commercial business geographically expanded from Xiamen, Quanzhou and Shanghai to Hefei, Hangzhou,

Suzhou, Nanjing and Wuhan.

13

Commercial Operations - Regional Expansion in Commercial Business

五緣灣酒店

Name Business Form City of Location

Yuzhou Central Town (Main Street) Commercial Street

Hefei Yuzhou Sky Aqua Mall MALL

Yuzhou Galaxy Park MALL

Riverside Sapphire Commercial Villa & Office Building

Hangzhou

Suzhou Wangting Town Project MALL Suzhou

Wuyan Bay Hotel Commercial Floor in Hotel

Xiamen

Nanjing G71 Project MALL Nanjing

Wuhan Taizihu Project MALL & Office Building Wuhan

Projects in Preparation: 8

Xiamen Yuzhou Plaza Hefei Yuzhou Central Plaza

Focus on the development of serviced apartments as well as medium-to-high-end business hotels to establish

premium hotel brands

Develop resort hotels and improve the existing hotel portfolio to strengthen the brand’s core competitiveness

14

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 2018 (est.)

Quanzhou Huian Hotel Project - In preparation

Hefei Feidong Hotel Project - In preparation

Wuhan Taizihu Hotel Project - In preparation

Hotel Operations - Vigorous development & growth

Advocated the philosophy of "Customer First, Service Oriented" to improve service and management systems

Formulated the quality approach of “Sincere Services, Passion for Excellence, Standard Management and

Rational Innovation"

“Yu Housekeeper”

model featuring

online

management

Various

community

cultural

activities

400

Customer

Hotlines

Our property management business grows rapidly along with the increase in new properties delivered by Yuzhou Properties each year. At the same time, our customers’ level of product satisfaction is gradually transforming into loyalty to our Yuzhou brand.

As at Dec 31, 2017

Cities Covered: 10

Managed Projects: 44

Managed Area: Approx. 10mn sq.m.

No. of Flats: Approx. 100K

FY2017 Revenue: RMB329 mn

15

Property Management - Rapidly Developing to Boost Brand Premium

Southbound Trading under the Shanghai-Hong Kong Stock Connect

2017 Best 50 of China Property Management Enterprises Brand Value

(Rank 33)

HS Composite Large Cap & Mid Cap Indexes

2017 Best 50 China Real Estate Listed Companies with Strongest

Comprehensive Strengths (Rank 36)

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

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

Yuzhou Noble Mansion Yuzhou Moon Lake Mansion

Expanding Branding Advantages

16

• “7th China Securities’ Golden Bauhinia Award - Most Valuable Listed Company Award” – The Group

• “Best CEO Award for Listed Company”- Mr. Lam Lung On, J.P.

• "Social Caring Pledge Scheme Award" - "Asian Social Caring Leadership Award“ – Mr. Lam Lung On, J.P.

• China Real Estate 25 Years Honor – Benchmark Project

• Three major awards of 10th Shanghai Excellent Properties Award: Planning, Green Environment and Residential Industrialization

• 12th Golden Plate Award 2017: Best Comprehensive Residential Property of the Year

• 2017 Annual livable properties in Hefei

• 2017 Anhui Real Estate Jinzun Award (Exemplary Project for Living)

• 2017 Annual China Real Estate Golden Horse Award (Exemplary Property Project for Living)

Investment Awards Social Caring Award

Yuzhou Charity Foundation Take a proactive role in spreading positive energy

17

Building Cities with Heart, Building Homes with Love

Actively engage in CSR activities

Committed to education, environment, public welfare,

culture and charitable activities

My home in Green Yuzhou Green Product Positioning: Pay attention to the harmony between people and environment

Create a Harmonious and Livable Green City Fulfill green building criteria and create benchmark projects

Practice a sustainable development business model and build cities that are human and

environmentally friendly

Create quality life, working and leisure space for people which are up to benchmark standard

17

Financial Highlights – Healthy and Stable Revenue: RMB21,701 mn (+58.73%)； Core profit: RMB2,924 mn (+42.83%)； Net gearing ratio: 57.73% (including senior perpetual securities 77.14%)； Cash flow strong and stable

Shanghai · Noble Mansion

RMB bn 2017 2016 Changes

Total equity 17.44 11.67 +49.44%

Cash on hand 17.50 17.42 +0.46%

Net gearing ratio 57.73%

(including senior perpetual

securities 77.14%)

71.70% -13.97pp

Dividend

(HK

cents/share)

Final 21.50 22.00

Interim 8.50 --

Annual 30.00 22.00 +36.36%

RMB bn 2017 2016 Changes

Contracted sales 40.31 23.21 +73.69%

Recognized revenue 21.70 13.67 +58.73%

Gross profit margin 35.40% 36.27% -0.87pp

Profit for the year 3.13 2.09 +49.73%

Core profit 2.92 2.05 +42.83%

Highlights of FY2017 Results

19

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

RMB mn 2017 2016 Changes

Sales of

properties 21,214 13,345 +58.96%

Rental income 140 124 +13.00%

Property

management

fee income

329 182 +80.68%

Hotel operation

income 18 20 -9.36%

Total 21,701 13,672 +58.73%

97.8% 97.6%

0.6% 0.9%

1.5% 1.3%

0.1% 0.1%

2017 2016Sales of propertiesRental incomeProperty management fee incomeHotel operation income

100% = RMB 13,672 mn

100% = RMB 21,701 mn

20

Highlights of FY2017 Results (cont’d)

*After Tax

Xiamen, 35%

Fuzhou, 11%

Quanzhou, 3%

Longyan, 5%

Shanghai, 17%

Hefei, 10%

Nanjing, 16%

Bengbu, 1%

Tianjin, 2% Huizhou, 0%

Recognized Property Sales by City

Xiamen, 25%

Fuzhou, 14%

Quanzhou, 6% Longyan, 13%

Shanghai, 10%

Hefei, 19%

Nanjing, 7%

Bengbu, 2% Tianjin, 3%

Huizhou, 1%

Recognized GFA by City

Recognized GFA & ASP

1,107

1,483 1,503 9,172 9,000

14,118

0

4,000

8,000

12,000

16,000

0

400

800

1,200

1,600

FY2015 FY2016 FY2017Recognized GFA ASP

GFA ‘000 sq.m.

ASP RMB ‘000 / sq.m.

Recognized Property Sales*

3,418 4,019 7,047

6,740 9,327

14,166

-

5,000

10,000

15,000

20,000

25,000

FY2015 FY2016 FY2017

2H

IH

RMB mn

10,158

13,345

21,213

Analysis of Recognized Property Sales

21

20,083

25,787 27,567

-

5,000

10,000

15,000

20,000

25,000

30,000

FY2015 FY2016 FY2017

Strong Balance Sheet

11,949

17,418 17,498

-

5,000

10,000

15,000

20,000

FY2015 FY2016 FY2017

RMB mn

Cash Position

52,846

68,861

79,905

-

20,000

40,000

60,000

80,000

100,000

FY2015 FY2016 FY2017

RMB mn

Total Assets RMB mn

10,241 11,673

17,443

-

4,000

8,000

12,000

16,000

20,000

FY2015 FY2016 FY2017

Total Equity

Total Debt

22

RMB mn

X X

Strong Balance Sheet (cont’d)

23

(a) Net debt = Total debt–Total cash (b) Total capitalization = Total debt + Total equity

2.1

1.6

1.3

-

0.5

1.0

1.5

2.0

2.5

FY2015 FY2016 FY2017

X

X

Net Debt(a) / EBITDA Net Debt(a) / Total Equity

79%

72%

58%

77%

0%

20%

40%

60%

80%

100%

FY2015 FY2016 FY2017

Including senior perpetual securities

%

Net Debt(a) / Total Capitalization(b)

27%

22% 22%

0%

5%

10%

15%

20%

25%

30%

FY2015 FY2016 FY2017

%

137.11

38.55

100.00

RMB, 65%

HK$, 4%

US$, 31%

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 issued AA+ rating

Stable Financial Position and Diversified Financing Channels

Optimized financing structure(RMB mn)

Lowering weighted average financing cost

7.00

6.08

5.00

6.00

7.00

8.00

9.00

10.00

FY2015 FY2016 FY2017

%

Proportion of foreign currency debt

24

FY2017 FY2016

Onshore 6.41% 5.67%

Offshore 5.57% 6.31%

Weighted Average

6.02% 6.08%

6.02

Bank and other loans Due within 1 year :6,704mn In the second year :801mn In the third to fifth years :5,510mn Beyond 5 years :6,960mn

Senior notes Due in 2022: 2,249mn Due in 2023: 1,606mn

Corporate bonds Due in 2018: 2,000mn Due in 2019: 5,000mn Due in 2020: 3,000mn

FY2017 FY2018E

Cash inflow

Cash proceeds from contracted sales and other income +28.0 +42.6

Cash outflow

Land premium paid -17.9 -24.3

Construction cost capex -7.0 -9.0

Other expenses - Interest, tax, dividends and others -8.1 -9.9

（RMB bn）

FY2017 Cash Position

25

Future Perspective – Grasping the opportunities to a prospective future

Shanghai · Yuzhou Mansion

Market Outlook

27

Markets have gradually priced in the expectation of property tax being implemented

Considering the interests of society, the government will play a coordinating role in establishing a more comprehensive tax collection system, a truly open and fair tax base

An era of “deleveraging” is coming, which will be conducive for the industry to achieve continuous and healthy development

Quality real estate enterprises will have significantly better finance capability than small-scale real estate enterprises, and the difference in financing costs will be further widened

Quality real estate enterprises with high profitability and low finance costs will see larger room for development

Enterprises’ self-expanding and M&A activities will drive further industrial concentration

The era of “Five Restrictions” (restrictions on purchase, mortgage, price, sales and signing of contract) is expected to continue

Accelerated

Industry

Consolidation

Expectation of Property

Tax

Era with

“Five

Restrictions”

Financing

Environment

Division

Taking urban agglomeration as a major target of regulation and control, the scope of regulation and control will be expanded from Tier 1 & 2 cities to the surrounding Tier 3 & 4 cities

Strategies for 2018

28

Profit

Scale

Risk

Total land bank : 15mn+ sq.m.

Total saleable resources：RMB300bn+

National layout in 23 cities

A RMB100bn Journey Begins

29

Confident to achieve RMB100bn+ by 2020

CAGR targets to exceed 40% for contracted sales

2018 to date: - Seven premium projects of Coastal

Greenland Ltd (01124.HK) - Entering 4 new cities - New saleable resources of RMB60bn

120 140 232

403

600

1,000

FY2014 FY2015 FY2016 FY2017 FY2018E FY2020E

···

Contracted Sales +

*The names of regional companies are tentative and will be adjusted according to the specific circumstances.

Gradually Develop a 3-Layer Management Mode Lay a Sound Foundation for Further Strategic Targets

30

Bohai Rim

Region

East China Region

West Strait West Strait

Region South China

Region

Central China

Region Regional Company

Already set up the South China Regional Company in Shenzhen, laying a good foundation for the further development in Big Bay Area

Other Related Business

Real Estate Business

Bo

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egion

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Nan

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Yangzh

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Suzh

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Headquarters of Yuzhou

• 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: RMB13,242/sq.m.

• ASP: ≈ RMB35,000/sq.m.

• Located in Tianjin Binhai New

Area with complete supporting

facilities including education,

health care, recreation and

other living facilities and

landscape resources

• GFA: 76,296 sq.m.



• Est. ASP: RMB17,000/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)

Shanghai Yuzhou Country (上海禹洲府)

Key Projects in 2018

31

• Located in Zhijiang, Hangzhou

West Lake District, 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: 298,773 sq.m.


• Land cost: RMB13,738 /sq.m.

• ASP: ≈RMB30,000/sq.m.

• Located in Maqiao, Shanghai

Minhang District, next to the

Hi-tech Development Zone

and Zizhu hi-tech park. These

industries attract a huge

number of high-end citizens.

• GFA: 90,776 sq.m.



• ASP: ≈ RMB46,000/sq.m.

• 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.



• Est. ASP: ≈ RMB20,000/sq.m.

• Located in the central area of Jinnan District, close to the sub-campuses of Tianjin University and Nankai University

• GFA: 149,739 sq.m.

• Unit size: 113 – 142 sq.m.


• Est. ASP: ≈ RMB26,000/sq.m.

Wuhan Taizi Lake Project (武漢太子湖項目)

Suzhou Yuzhou Zhaoshang The Absolute (蘇州禹洲招商拾鯉花園)

Tianjin Graceful Mansion (天津雍和府)

Huizhou Wujing The Scenery (惠州五經山水大觀)

Key Projects in 2018 (cont’d)

32

• Located in Suzhou’s Xiangcheng district, which will include an industrial park, lake scenic park and business and commercial district. Local government is committed to building a comprehensive industrial park that focuses on the hi-tech and creative industries

• GFA: 230,963 sq.m.



• ASP: ≈ RMB15,000/sq.m.

• Located in the core area of Zhongkai Hi-tech Zone, next to the Dongguan - Huizhou high-speed rail link. Residents can enjoy convenient transportation and great growth potential

• GFA: 191,159sq.m.



• ASP: ≈ RMB11,000/sq.m.

Appendix

Nanjing · Moon Riverside

Monthly Transaction Volume and ASP of Residential Properties

'000 sq.m.

'000 sq.m.

RMB/sq.m.

RMB/sq.m.

111 81

366

598

425

307

239

166 142

117 83 93

71 72

401

168

81 103

67 68 117

151 118

90

23,851 23,467

22,619

23,083

28,368

28,000 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

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

0

100

200

300

400

500

600

700

Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 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

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

2,246

1,248 1,474

1,373

2,131 1,655 1,586

2,622

4,777 4,490

3,144 3,516

2,731

1,505

3,399 3,479

11,972

11,532

5,829

28,769

25,658

13,905 13,482

15,701

19,848

20,535

26,518

34,375

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

0

1,000

2,000

3,000

4,000

5,000

2011 2012 2013 2014 2015 2016 2017

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.

Residential Land Supply and Property Transactions – Xiamen

Xiamen Real Estate Market Overview

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)

34

176

141

301 316

230

309

216

280

339

160

68

116

81 104

148

54 62 80

97 128

152

187 172

237

14,135

13,539

15,368

15,389

15,795 18,389

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

0

5,000

10,000

15,000

20,000

25,000

30,000

0

100

200

300

400


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

2,905

2,177

3,483

1,766

2,438 2,326

3,791

1,875

2,524 2,764

2,410

3,023

2,652

1,501

5,376 3,729 3,918 4,280 11,010 11,037 10,739

14,231 14,188 16,372 16,552

14,910 16,879

21,636

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

2011 2012 2013 2014 2015 2016 2017

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.




'000 sq.m.

'000 sq.m.

RMB/sq.m.

RMB/sq.m.

Residential Land Supply and Property Transactions – Fuzhou

Fuzhou Real Estate Market Overview

35

14,989

9,827

14,328

10,137 11,554

6,476

11,247

7,278

9,342

12,800

9,713

14,973 13,917

6,392

3,752 4,125 6,177 9,041 9,779

17,261

8,973

22,413 22,594 24,253 27,212

32,001

38,283

47,865

0

10,000

20,000

30,000

40,000

50,000

60,000

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

2011 2012 2013 2014 2015 2016 2017



1,339

713

2,296

972 989

1,249 1,314

1,870

1,038 869

604 664

388 361

742 672 709 685 670

461 530

335 374 465

35,911

36,381

33,213 32,724

36,747

36,646 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

0

10,000

20,000

30,000

40,000

50,000

60,000

-

500

1,000

1,500

2,000

2,500






'000 sq.m.

'000 sq.m.

RMB/sq.m.

RMB/sq.m.

Residential Land Supply and Property Transactions – Shanghai

Shanghai Real Estate Market Overview

36

859

619

979

845

735

1,210

819

1,013 1,032

523

236 342

216 212 210 219 265 230

405 435

553

436

587

305

9,215

9,177

9,590 9,916

11,049 11,385

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

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

-

200

400

600

800

1,000

1,200

1,400



10,805

16,620

21,566

18,732

13,837 12,682 11,800

4,519

8,167

12,319

9,240 9,147 9,211

4,074

1,641 1,468 1,641

2,050 3,509

8,839

6,581

6,854 6,472

6,722

7,672

8,500

11,178 12,666

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

0

5,000

10,000

15,000

20,000

25,000

2011 2012 2013 2014 2015 2016 2017





'000 sq.m.

'000 sq.m.

RMB/sq.m.

RMB/sq.m.

Residential Land Supply and Property Transactions – Hefei


Hefei Real Estate Market Overview

37

1,421

869

1,852 1,892

1,880 1,375

1,460

1,208

1,556

941 797

610 616

337

649 723

1,001 860 833

488

915

533 676

1,239

16,952 17,791

15,760 15,974

19,526 19,969

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

0

5,000

10,000

15,000

20,000

25,000

-

500

1,000

1,500

2,000

2,500



9,193 8,629

11,691 13,278

9,768 9,433 7,029

4,499

7,708

10,001

8,615

12,787

15,860

8,869

2,737

3,744 5,768

4,078

7,194

15,452 14,804

10,991 10,967 12,252

13,804 15,140

18,913

21,601

0

5,000

10,000

15,000

20,000

25,000

0

5,000

10,000

15,000

2011 2012 2013 2014 2015 2016 2017




'000 sq.m.

'000 sq.m.

RMB/sq.m.

RMB/sq.m.

Residential Land Supply and Property Transactions – Nanjing


Nanjing Real Estate Market Overview

38

1,015

591

2,501

1,916 1,822 1,726 1,729 1,638

2,381

1,553

807 994

716 653

1,605

1,132 1,000

1,923

1,538 1,515 1,312

980 984

1,750 16,859

16,232

16,605

16,418 16,486 16,864

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

0

5,000

10,000

15,000

20,000

25,000

30,000

-

500

1,000

1,500

2,000

2,500

3,000



6,561 7,079

14,898

7,412 7,056

10,275 11,975

3,842

8,197 8,663 8,903

12,867

18,673

15,109

4,969 6,071

6,649 7,263 8,085

13,424 15,900 16,619

14,581 16,663 15,484

15,878

17,313

22,987

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





'000 sq.m.

'000 sq.m.

RMB/sq.m.

RMB/sq.m.

Residential Land Supply and Property Transactions – Hangzhou


Hangzhou Real Estate Market Overview

39

1,670

841

1,753

1,272 1,088

929 821

954

1,672

829

391 457 444 459

929 749

642

1,084

753 644

746 718 764 784

14,311

15,496

16,465 17,467

17,488 18,536

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

0

5,000

10,000

15,000

20,000

25,000

-

500

1,000

1,500

2,000



9,659 9,326 9,836 9,671 8,675

10,481

7,893

4,031

6,411

8,089 7,701

11,763 12,677

8,716

3,984

2,693 4,321

4,031 6,596

13,251 11,458

12,329

11,226 11,888

12,116 13,163

17,355

18,621

0

5,000

10,000

15,000

20,000

25,000

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

2011 2012 2013 2014 2015 2016 2017




'000 sq.m.

'000 sq.m.

RMB/sq.m.

RMB/sq.m.

Residential Land Supply and Property Transactions – Suzhou


Suzhou Real Estate Market Overview

40

2,087

1,460

3,074 3,122 2,660 2,580 2,270

2,747

1,979 2,095

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

9,294

9,346

9,409 9,278 9,306 9,399 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

0

2,000

4,000

6,000

8,000

10,000

12,000

-

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000



22,082

44,028

24,864 23,537

16,440 17,993

27,518

8,289 10,856

14,807 16,255

21,468

28,798

18,263

1,898 1,831 2,276 2,178

3,267

5,060

5,066

7,430 7,152 7,093

7,796 8,810

9,432 10,031

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

10,000

11,000

0

10,000

20,000

30,000

40,000

2011 2012 2013 2014 2015 2016 2017Land 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.

Monthly Transaction Volume and ASP of Residential Properties Source: CRIC, pure residential and commercial land obtained by bidding and auction in open market (excluding subsidized housing)

'000 sq.m.

'000 sq.m.

RMB/sq.m.

RMB/sq.m.

Residential Land Supply and Property Transactions – Wuhan


Wuhan Real Estate Market Overview

41

1,073

711

2,492

3,054

1,906 1,971 1,831

2,012 1,901

2,316 1,985

2,068

760 763

2,071

953

1,235 1,478 1,276

1,065 1,167 954 989 1,075

11,816 11,741

12,484 12,733 12,297 12,346

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

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

-

500

1,000

1,500

2,000

2,500

3,000

3,500



25,940

14,967

16,807

12,596

8,673

14,207

11,054 8,865 8,888

11,819 9,566

13,561

23,321

13,786

1,952 2,674 3,682

5,039 5,766

8,796

10,315 9,347 10,061 10,218

10,553 11,546

13,458

15,670

0

5,000

10,000

15,000

0

5,000

10,000

15,000

20,000

25,000

30,000

2011 2012 2013 2014 2015 2016 2017Land Supply (GFA) for Residential Properties '000 sq.m. Transaction Volume of Residential Properties '000 sq.m.




'000 sq.m.

'000 sq.m.

RMB/sq.m.

RMB/sq.m.

Residential Land Supply and Property Transactions – Tianjin


Tianjin Real Estate Market Overview

42

FY2017 Key Financials

FY2017 FY2016 Changes

Revenue (RMB’000) 21,700,673 13,671,828 +58.73%

Gross profit (RMB’000) 7,683,054 4,958,912 +54.93%

Gross profit margin (%) 35.40% 36.27% -0.87pp

Core profit (RMB’000) 2,923,989 2,047,126 +42.83%

Core profit margin (%) 13.47% 14.97% -1.50pp

EPS (RMB/share) 0.70 0.47 +48.94%

CEPS (RMB/share) 0.74 0.54 +37.04%

43

FY2017 Key Financials (cont’d)

44

(RMB’000) As at 31 Dec 2017 As at 31 Dec 2016 Changes

Total assets 79,904,817 68,860,512 +16.04%

Total liabilities 62,461,581 57,187,776 +9.22%

Total equity 17,443,236 11,672,736 +49.44%

Total cash 17,498,208 17,417,534 +0.46%

Total debt 27,567,486 25,786,793 +6.91%

Net debt 10,069,278 8,369,259 +20.31%

Net gearing ratio (%) 57.73%

(including senior perpetual

securities 77.14%)

71.70% -13.97pp

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.

Disclaimer

45

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Speakers - ir.yuzhou-group.comir.yuzhou-group.com/documents/presentation/en/ar17.pdf · Contracted ASP increased by 33% YoY, due to change of product portfolio ... GHM Big Bay Area,