2018 annual results presentationwebcast.live.wisdomir.com/aoyuan_18ar/ppt.pdf · 2 financial...

11

2018

Annual Results

Presentation

March 2019

22

Highlights & Outlook1 3

Financial Overview2 9

Business Operations3 16

Land Bank Layout4 27

Appendix5 38

Investor Relations6 43

Contents

33

Guangzhou Aoyuan Lianfeng State (actual image)

1. Highlights & Outlook

44

• Contracted sales in 2018 amounted to RMB91.28bn (attributable: 85%), accomplishing 125% of full-year target

RMB73.0bn with yoy growth of 100%, which is one of the fastest growing PRC property developers; 2016-2018

CAGR reached 89%

• Contracted sales in Dec 2018 increased by 55% yoy to RMB17.39bn, another record high for single-

month sales

• Contracted sales in the first two months of 2019 maintained a strong growth momentum and increased by 39%

yoy to RMB11.23bn

• As of 31 Dec 2018, unbooked revenue amounted to approx. RMB110bn, which will be gradually recognized in

the next 2 years

One of the fastest

growing PRC

developers with high

earnings sustainability

• Revenue in 2018 increased by 62% yoy to RMB31.01bn

• Gross profit increased by 88% yoy to RMB9.63bn; gross profit margin was 31.1%

• Net profit increased by 51% yoy to RMB2.94bn; earnings per share was RMB89.9 cents per share

• Core net profit increased by 63% yoy to RMB3.07bn

• Core net profit attributable to shareholders increased by 60% yoy to RMB2.57bn

• Recommend a final dividend of RMB36 cents per share (equivalent to HK$42 cents), representing a 40%

dividend payout ratio, maintaining stable and generous dividend policy to thank shareholders and investors

for their support

Robust growth &

profitability with

stable and generous

dividend policy

• Following the upgrades of corporate rating and rating outlook from all 3 major international rating agencies,

Fitch, S&P and Moody’s in 2016-2018, rating outlook was further upgraded by Moody’s to “positive” in Feb

2019

• As of 31 Dec 2018, net gearing ratio was 58.9%, at reasonable industry-wide level; average borrowing cost

maintained at 7.4%. Debt profile continued to improve

• In 2018, cash collection rate was approx. 78%, recording positive operating cash inflow; total cash amounted

to approx. RMB39.62bn with sufficient liquidity

Healthy financial profile

with continued credit

rating upgrades &

sufficient liquidity

2018 Results highlights

55

• Acquired a total of 64 new projects with newly added GFA of approx. 12.58mn sqm (89% through M&A) and

newly added saleable resources of approx. RMB164.5bn. The average land cost was approx. RMB2,418 per

sqm, which helps to maintain reasonable land cost and stable margins

• As of 31 Dec 2018, total GFA of land bank was approx. 34.10mn sqm (attributable: 80%) with saleable

resources of approx. RMB365.0bn, sufficient for development needs in the coming three years

• 9 urban redevelopment projects in Guangzhou, Zhuhai, Foshan, Dongguan and Hong Kong etc. are expected

to gradually convert in 2019 with additional estimated saleable resources of approx. RMB66.0bn, further

enhancing sales growth momentum

Well-balanced regional

layout with strategic

land bank

replenishment;

Gradual conversion of

redevelopment

• In 2018, successfully raised approx. US$1.5bn through diversified financing channels including offshore

syndicated loans, bilateral loans and USD bonds, with average borrowing cost below 7% which was lower

than comparable peers

• In 2018, fully utilized US$900mn NDRC quota and successfully issued and tapped 4 offshore senior notes,

with average borrowing costs below 8%; redeemed offshore senior notes due May 2018

• In Mar, Apr and Jul 2018, completed three tranches of 3-year syndicated loans totaling HK$3.2bn with 8

offshore commercial banks, at an interest rate of 3-month HIBOR + 3.95% per annum

• In Jul and Oct 2018, successfully issued RMB3.9bn onshore corporate bond through public and private

issuance and redeemed onshore corporate bond on time

Outstanding

financing capability with

costs lower than

comparable peers

• In 2019, opened the Asia USD bond market and subsequently launched the first fully marketed 3-year PRC

property high yield issuance since Q4 2018. Aoyuan has fully utilized its US$1bn NDRC quota

• In 2018, both equity and bonds were actively traded, Aoyuan was covered by over 50 equity and credit

research reports

• Upholding the highest standards of investor relations, Aoyuan’s reputation in the capital markets continues to

grow. 25 investment banks and brokers have covered Aoyuan’s equity and bonds with consistent “buy” rating

• In Nov 2018, Aoyuan officially changed its legal name to “China Aoyuan Group Limited”, reflecting its long-

term business strategy of “one core business with vertical development”

• Aoyuan Healthy Life (3662.HK) was successfully spun off on 18 Mar 2019, which is the first spin-off listco of

Aoyuan’s 7 sub-groups, opening up new financing channels and unlocking value

Widespread reputation

in capital markets;

Successful IPO of

Aoyuan Healthy Life

2018 Results highlights (cont.)

66

Market outlook in 2019

Policies will focus more on stability with city-specific measures

The Development Guidance for Guangdong-Hong Kong-Macao Greater Bay Area released in Feb 2019, highlights the strategic positioning of GBA as a world-class city cluster. Full cooperation among Guangdong, Hong Kong and Macao will be implemented with tremendous potential

Encourage city cluster development with central cities as the core, thus enhancing the agglomeration effect of central cities

Increase in land supply and land transactions with no premium, indicating a more rational land market

With the overall development of the industry, leaders will reinforce their leading position. Market consolidation continues and M&A opportunities increase

Financing environment has improved with increasing liquidity though market is still affected by certain domestic and international uncertainties

77

Financing (融资):

• Diversify onshore and offshore

financing channels and precisely

capture market windows

• Investment decision depends on

funding availability. Priority to be

given to projects supported by

bank financing

• Improve the efficiency of capital

deployment

• Ensure listco’s funds security

Investment (投资):

• Disciplined land bank replenishment, focus on

Tier 1&2 core cities and strong Tier 3 cities

• Increase attention to public land auction in

addition to M&A

• Accelerate the conversion of urban

redevelopment projects into land bank

• Focus on investment return;

acquire projects to be launched

within the year

Collection (收款)

• Increase sell-through rate

• Enhance inventory destocking

• Strengthen cash collection

• Accelerate the collection of

accounts receivable

Strategies and planning in 2019

In 2018, Aoyuan became one of the fastest growing PRC developers through proactive planning and responsive adaptation to market changes. Aoyuan accomplished outstanding performance with success in strategic layout and positioning

In 2019, Aoyuan will focus on cultivating major cities to enhance regional development, implement quick-turnover strategy, so as to consolidate and expand market share

Management (管理):

• Establish greater operation system,

strengthen milestone management,

effectively shorten development cycle

• Dual focus on design standardization and

R&D, ensure rapid development and provide

differentiated product lines

• Balance presales timetable, facilitate standardized

and precise marketing

• Introduce resourceful talents and improve

productivity per capita

投融

管收

投融

收管

88

Aoyuan: One core business with vertical development

Aoyuan was officially renamed to “China Aoyuan Group” in Nov 2018 to reflect long-term business strategy.

By proactive planning and layout, 7 sub-groups have covered 5 segments including

“property development, finance, cultural tourism, healthy life and cross-border e-commerce”.

Aoyuan has established a business structure of “one core business with vertical development”

with a vision to become one of Global 500 companies

Cultural

Tourism

Financial

Group

Property

Development

Commercial

Property

Healthy Life

Aomygod International

Investment

99

Zhuhai Aoyuan Plaza (actual image)

2. Financial Overview

1010

(For the year ended 31 Dec)

(RMB '000) 2018 2017 Change

Revenue (1) 31,005,834 19,115,255 +62%

Gross profit 9,634,151 5,111,477 +88%

Gross profit margin 31.1% 26.7% +4.4p.p.

Net profit (2) 2,939,467 1,951,952 +51%

Net profit margin 9.5% 10.2% -0.7p.p.

Core net profit (3) 3,074,013 1,889,067 +63%

Core net profit margin 9.9% 9.9% -

Core net profit attributable to

shareholders2,573,888 1,613,280 +60%

Core net profit attributable to

shareholders margin8.3% 8.4% -0.1p.p.

Basic earnings per share

(RMB cents)89.91 61.35 +47%

Final Dividend per share(RMB cents)

36.0 25.0 +44%

Income statement highlights

Note:

(1) In 2018, property development accounted for 96% of revenue, property investment accounted for 1%, others accounted for 3%

(2) In 2018, profit attributable to shareholders accounted for 82%, and profit attributable to minority shareholders accounted for 18%

(3) Core net profit excludes non-recurring profits and loss items and their related tax expenses, comprising fair value gain on investment properties, net exchange

differences and gain on change in fair value of derivative financial instruments, etc

1111

Revenue Gross profit & gross profit margin

Net profit & net profit margin Core net profit & core net profit margin

Income statement highlights (cont.)

(RMB mn) (RMB mn)

(RMB mn) (RMB mn)

11,827

19,115

31,006

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

2016 2017 2018

3,277

5,111

9,634

27.7% 26.7%

31.1%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

0

3,000

6,000

9,000

12,000

15,000

2016 2017 2018

1,007

1,952

2,939

8.5%

10.2%9.5%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

0

1,000

2,000

3,000

4,000

5,000

2016 2017 2018

1,223

1,889

3,074

10.3% 9.9% 9.9%

-3.0%

2.0%

7.0%

12.0%

0

1,000

2,000

3,000

4,000

5,000

2016 2017 2018

1212

(RMB '000) At 31 Dec 2018 At 30 Jun 2018 At 31 Dec 2017

Total cash (1) 39,621,544 25,823,281 26,540,063

Total assets 188,858,219 153,258,405 125,805,861

Total liabilities 158,124,373 124,831,959 98,679,571

Total debt (2) 57,721,511 45,014,410 40,369,761

Net debt (3) 18,099,967 19,191,129 13,829,698

Total equity 30,733,846 28,426,446 27,126,290

Note:

(1) Total cash = Cash and cash equivalents + Restricted bank deposits + Structured deposits. Unrestricted cash accounted for 94% of total cash

As of 31 Dec 2018, credit facilities amounted to approx. RMB94.9bn, of which approx. RMB31.8bn were unutilized

(2) Total debt includes interest-bearing debts such as onshore & offshore bank and other borrowings, onshore corporate bonds and offshore senior notes

etc. Please refer to page 14 for more details

(3) Net debt = Total debt - Total cash

Balance sheet highlights

1313

50.7% 51.0%58.9%

0%

20%

40%

60%

80%

2016 2017 2018

Net debt (1) / Total equity Net debt / EBITDA (2)

Net debt / Total capitalisation (3) Total debt (4)/ Contracted sales

Key financial ratios

Note:

(1) Net debt = Total debt - Total cash

(2) EBITDA = Profit before tax + Finance costs + Depreciation + Amortization

(3) Total capitalization = Total equity + Total debt

(4) Total debt includes interest-bearing debts such as onshore & offshore bank and other borrowings, onshore corporate bonds and

offshore senior notes etc. (please refer to page 14 for more details)

3.3x 3.5x

2.4x

0

1

2

3

4

5

2016 2017 2018

22.5%20.5% 20.5%

0%

10%

20%

30%

2016 2017 2018

71.8%

88.6%

63.2%

0%

20%

40%

60%

80%

100%

2016 2017 2018

1414

2018 Debt breakdown by type

Declining average borrowing costs

• Onshore: 65%

• Offshore: 35%

Debt profile and financing

11.4%

10.2%9.5%

8.1%

7.2% 7.4%

6.0%

8.0%

10.0%

12.0%

2013 2014 2015 2016 2017 2018

Onshore bank borrowings

50%

Trust loans5%

Onshore corporate

bonds10%

Offshore senior notes20%

Offshore bank borrowings

15%

Optimizing debt structure

Value corporate credibility and redeem onshore and offshore bonds on time

✓ Successfully redeemed RMB3.9bn onshore corporate bond due Jul and

Oct 2018

✓ Successfully redeemed US$250m offshore senior notes due May 2018

Diversified onshore and offshore financing channels

✓ In Jan 2019, Aoyuan opened the Asia USD bond market and subsequently

launched the first fully marketed 3-year PRC property high yield issuance

since Q4 2018 by successfully completing an add-on issuance of

US$275mn 7.95% senior notes at par due 2021 and new issuance of

US$500mn 8.50% senior notes at par due 2022. In Feb 2019, issued

US$225mn 7.95% senior notes at par due 2023 with more than 8x

oversubscription, further extending debt maturity profile

✓ In Aug 2018, successfully issued US$225mn 7.95% senior notes and

S$100mn 7.15% senior notes due 2021. It was the first-ever dual currency

senior notes issuance in the industry

✓ In May and Jun 2018, successfully issued and tapped a total of US$425mn

7.5% senior notes due May 2021. In Jul 2018, successfully tapped

US$175mn 6.35% senior notes due Jan 2020 with 4.3x oversubscription

✓ In Mar, Apr and Jul 2018, successfully secured approx. HK$3.2bn 3-year

syndicated loan in three tranches with an interest rate of 3-month

HIBOR+3.95% per annum from 8 commercial banks

✓ In Jul 2018, successfully issued RMB2.4bn 3-year onshore private bond

with blended borrowing cost of approx. 8.25%; in Oct 2018, successfully

issued RMB1.5bn 3-year onshore corporate bond with coupon rate of 8.5%

Continued credit rating upgrades

✓ Following the upgrades of corporate rating and rating outlook from all 3 major

international rating agencies, Fitch (BB-), S&P (B+) and Moody’s (B1) in

2016-2018, Aoyuan’s rating outlook was further upgraded by Moody’s to

“positive” in Feb 2019

✓ As of 31 Dec 2018, total debt amounted to approx. RMB57.72bn.

Total cash amounted to approx. RMB39.62bn, sufficient to cover

short-term borrowings of approx. RMB23.73bn

1515

26.54

39.62

65.75

28.48

9.60 0.60 -26.78

-27.03

-4.82 -3.05-3.58 -0.67-22.84

-2.58

0

20

40

60

80

100

120

140

Openin

g c

ash b

ala

nce

(as o

f 1 J

an)

Opera

ting c

ash flo

w

New

bank b

orro

win

gs

Pro

ceeds fro

m s

enio

r note

s/

dom

estic

bonds is

suance

Capita

l inje

ctio

n fro

m n

on

-contro

lling s

hare

hold

er

Land a

cquis

ition

Constru

ctio

n e

xpenses

Tax e

xpenses

SG

&A

Inte

rest e

xpenses

Div

idend p

aym

ent

Debt re

paym

ent

Oth

er c

ash o

utflo

w

Endin

g c

ash b

ala

nce

(as o

f 31 D

ec)

71.20

91.28

0

10

20

30

40

50

60

70

80

90

100

Cash collected Contracted sales

Cash collected Contracted sales

Note (1) : Aoyuan adheres to disciplined land bank replenishment. Land premium paid in 2018 accounted for 29% of total contracted sales in 2018

Note (2) : As of 31 Dec 2018, the outstanding land premium was approx. RMB6.29bn which is expected to be fully paid within a year

2018 Cash flow 2018 Cash collection

(RMB bn) (RMB bn)

78%

Cash flow & CAPEX

Aoyuan adheres to a principle of prudent financial management by recycling capital

through rapid presales, and achieved positive operating cash inflow in 2018

(1)(2

)

1616

Xinhua Town, Yingde Aoyuan International Resort (actual image)

3. Business Operations

1717

17,000

33,300

73,000

+25% yoy

25,602

45,590

91,280

0

25,000

50,000

75,000

100,000

125,000

2016 2017 2018 2019 Target

Original target Actual completion

Yearly contracted sales

(RMB mn)

(RMB mn)

Robust and sustainable contracted sales growth

Monthly contracted sales

First half of the year Second half of the year

Sales target

completion

rate in

2016-2018:

125%-150%

1,5

03

707

1,5

46

1,7

32

2,0

73

2,9

67

1,2

25

1,4

33

3,6

31

2,5

05

2,8

86

3,3

93

1,6

88

2,1

04

2,2

66

2,5

11

2,6

30 5,3

20

2,5

31

2,6

55

4,0

81

4,2

80

4,3

22

11,1

96

4,0

50

4,0

55

5,5

05

7,2

09

7,5

01

11,9

71

6,0

21

6,8

53

7,8

76

6,4

91

6,3

56

17,3

90

5,6

00

5,6

25

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

20,000

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

2016 2017 2018 2019

1818

Contracted and recognized sales

Contracted and recognized GFA sold

2,980 4,487

8,863

1,607 2,428

3,302

0

2,000

4,000

6,000

8,000

10,000

2016 2017 2018

Contracted GFA sold Recognized GFA sold

Contracted and recognized ASP

8,59110,158 10,300

6,993 7,397

9,007

0

3,000

6,000

9,000

12,000

2016 2017 2018

Contracted ASP Recognized ASP

Attributable contracted sales accounted for 85% in 2018 at relatively high industry level.

As of 31 Dec 2018, unbooked revenue amounted to approx. RMB110bn,

which will be gradually recognized in the next 2 years, showing high earnings sustainability

Contracted and recognized sales

25,602

45,590

91,280

11,240 17,960

29,740

0

20,000

40,000

60,000

80,000

100,000

2016 2017 2018

Contracted sales Recognized sales

2019E saleable resources: approx. RMB190bn

Residential properties

70%

Commercial properties

30%

By region By product

South China41%

Core region of Central &

Western China24%

East China20%

Bohai Rim11%

Offshore4%

(RMB mn) (000's sqm)

(RMB per sqm)

1919

2017 contracted sales: RMB45.59bn 2018 contracted sales: RMB91.28bn

By region By region

2017 contracted sales: RMB45.59bn

By product

2018 contracted sales: RMB91.28bn

By product

Contracted sales breakdown

South China71%


Western China12%

East China11%

Bohai Rim3%

Offshore3%

South China49%


Western China20%

East China22%

Bohai Rim5%

Offshore4%


77%


23%


78%


22%

2020

Recognized sales breakdown

2017 recognized sales: RMB17.96bn 2018 recognized sales: RMB29.74bn

2017 recognized sales: RMB17.96bn 2018 recognized sales: RMB29.74bn

By region By region

By product By product

South China62%


Western China23%

East China12%

Bohai Rim3%

South China73%

East China

8%

Bohai Rim1%

Offshore1%


73%


27%


66%


34%

Core

region of

Central &

Western

China

17%

2121

3,060

6,650

9,620

2,212

3,605

4,580

0

2,000

4,000

6,000

8,000

10,000

2016 2017 2018

New starts GFA Completed GFA

Aoyuan maintains flexible CAPEX management and sound cash flows

via managing new starts GFA and completed GFA dynamically to adapt to market changes

(000's sqm)

New starts GFA and completed GFA

Huizhou Aoyuan Yushan Lake

Zhuhai Aoyuan Seaview Mountain

(The above are actual images)

2222

Full upgrade in product competitiveness

Dual focus on design standardization and R&D, increase the portion of decorated units and provide differentiated

product lines based on regional characteristics, resulting in overall upgrade of product quality

Chongqing Aoyuan Tianyue Bay

Chengdu Aoyuan Parkview Mansion

Xinhua Town, Yingde Aoyuan International Resort

Qingdao Aoyuan Top Level Mansion

Aoyuan Cultural Tourism City Shaoguan Lingnan Impression

Zhuhai Aoyuan Bay Area

Kunming AoyuanHuzhou Aoyuan Tianyu Changxing

Toronto Aoyuan North York M2M


2323

Asset-light commercial development model

Successful model: Guangzhou Panyu Aoyuan Plaza

• Total GFA: approx. 250,000 sqm (Commercial: 100%)

• Development model: Shopping street/ Apartments (sold) + Shopping mall (owned)

• Accumulated contracted sales: approx. RMB1.8bn

• Guangzhou Panyu Aoyuan Plaza shopping mall was opened in Dec 2012. Occupancy rate is 98%

Successful replication: Chongqing Aoyuan Panlong Yihao

• Total GFA: approx. 460,000 sqm (Residential: 70%, Commercial: 30%)

• Development model: Residential/ Shopping street/ Offices/ Commercial apartments (sold) + Shopping mall (owned)


• Chongqing Panlong Aoyuan Plaza was opened in Dec 2017. Occupancy rate is 95%

Aoyuan maintains its commercial development strategy of “primarily saleable properties and supplemented by investment properties” to diversify income streams and add values to saleable properties


• Development model: Residential/ Shopping street/ Offices (sold) + Shopping mall (owned)


• Zhuhai Aoyuan Plaza shopping mall was opened in Jul 2018. Occupancy rate is 97%

Successful replication: Zhuhai Aoyuan Plaza Successful replication: Guangzhou Luogang Aoyuan Plaza


• Development model: Residential/ Apartments/ Shopping street (sold) + Shopping mall (owned)


• Guangzhou Luogang Aoyuan Plaza shopping mall is expected to open in 1H2019


2424

Asset-light commercial development model (cont.)

Project Location StatusProduct

type(1)

GFA

(sqm)

Interest

(%)

1Guangzhou Panyu

Aoyuan Plaza

Panyu,

GuangzhouLeased C, S 80,500 54%

2 Guangzhou AoyuanPanyu,

GuangzhouLeased C, S 8,600 100%

3Shenyang Aoyuan

The Metropolis

Shenyang,

LiaoningLeased H 1,527 100%

4Guangzhou Aoyuan

City Plaza

Panyu,

GuangzhouLeased C, CH 13,796 100%

5Chongqing Panlong

Aoyuan PlazaChongqing Leased C, S 51,854 60%

6 Wuhua Aoyuan PlazaMeizhou,

GuangdongLeased C, S 27,217 100%

7 Jiaoling Aoyuan PlazaMeizhou,


8Chongqing Chayuan

Aoyuan PlazaChongqing Leased C 52,680 51%

9 Zhuhai Aoyuan PlazaZhuhai,


10Guangzhou Luogang

Aoyuan Plaza

Huangpu,

GuangzhouLeasing C 34,575 60%

11Guangzhou Aoyuan

Kangwei Plaza

Zengcheng,

GuangzhouLeasing C, S 60,000 51%

12Chongqing Aoyuan

The MetropolisChongqing Leasing C 19,250 100%

13Shenyang Aoyuan

Convention Plaza

Shenyang,

LiaoningLeasing C, S 124,846 100%

14 Liuyang Aoyuan PlazaChangsha,

HunanLeasing C, S 27,640 100%

15 Bengbu Aoyuan GinzaBengbu,

AnhuiLeasing C, S 35,500 100%

16Chengdu Cheunghua

Aoyuan Plaza

Chengdu,

SichuanLeasing C, S 65,000 70%

Note (1): C = Commercial; S = Retail shop; CH = Club house; H = Hotel

Major investment propertiesSuccessful model of county complex :

Wuhua Aoyuan Plaza

Wuhua Aoyuan Plaza is a key development project for PanyuDistrict in Guangzhou to help Wuhua county in Meizhou

• Location: Central Wuhua, 2km from local government HQ

• Total GFA: 140,000 sqm (Residential: 35%, Commercial: 65%)

• Development model: Residential/ Commercial/ Offices (sold) +Shopping mall (owned)

• Average land cost: RMB1,250 per sqm

• Accumulated contracted ASP: RMB7,610 per sqm

• Accumulated contracted sales: RMB1.0bn

• Gross profit margin/ Net profit margin: 30%/ 20%

In support of the national poverty alleviation initiative, while

aiming for the uptrend of economic development and

increasing demand for leisure activities and entertainment,

Aoyuan has developed county complexes to enhance local

economic development and living standards. Main strategies:

✓Targeting counties with large population and unique resources

✓Develop the only large shopping mall in core location, promote

residential sale via commercial to reach high sell-through rate

✓Target customers returning hometown to conduct precise

marketing and sales

✓Drive local taxation, create entrepreneurial and employment

opportunities, fulfilling corporate social responsibilities

Actual image

2525

Remarkable offshore development through localization strategies

Through localization strategies, Aoyuan has established itself as a genuine local developer

It helps to facilitate source of revenue, diversify asset portfolio and operational risks when developing offshore projects

Aoyuan has achieved remarkable performance and established internationalized brand recognition

Sydney Esplanade Norwest Lake

To be delivered in 1H2020

Vancouver Surrey One Central

Presales launched in Nov 2018

Toronto North York M2M

Phase 1 of presales launched in Jun 2018

Hong Kong AOffice46

To be delivered in 1H2020

As one of the few outbound PRC developers

with access to local bank financing channels,

Aoyuan’s offshore projects are all supported

by local bank financings with annual interest

rate of 3%-5.5%:

✓ Sydney projects were supported by local

banks including Commonwealth Bank of

Australia, Westpac Bank and ANZ Bank,

providing loans for land acquisition and

construction

✓ Canadian projects were supported by local

banks including Bank of Montreal and

HSBC Canada

✓ Hong Kong projects were supported by local

banks including Hang Seng Bank and

Nanyang Commercial Bank

2626

Offshore projects completed full development cycle

• Total GFA: 6,700 sqm, 80 high-

end residential apartments

• Acquisition date: Nov 2016

• Launch date: Mar 2017

• Delivery date: Nov 2018

• Accumulated contracted sales:

approx. RMB400mn

• Accumulated ASP: approx.

RMB55,200 per sqm

• Gross profit margin/ net profit

margin: 25%/12%

• Principal bank: ANZ Bank

• Total GFA: 5,800 sqm, 60 high-end

residential apartments and shops

• Acquisition date: Nov 2015

• Launch date: Aug 2016

• Delivery date: Dec 2018

• Accumulated contracted sales:

approx. RMB300mn

• Accumulated ASP: approx.

RMB56,700 per sqm

• Gross profit margin/ net profit

margin: 26%/13%

• Principal bank: Westpac Bank

Aoyuan's offshore projects have completed full development cycles and realized cash collection and reinvestment

One of the few PRC developers who have successfully entered offshore real estate markets and achieved delivery of projects

Case Study 1: Sydney One30 Hyde Park

(Aoyuan's first offshore project) (70% owned)

Case study 3: Sydney Mirabell Turramurra (100% owned)

Case study 2: Sydney Maison 188 Maroubra

(Aoyuan's first independent offshore project) (100% owned)

• Total GFA: 15,000 sqm, 140 luxury residential

apartments and shops

• Acquisition date: Mar 2015

• Launch date: Aug 2015

• Delivery date: Mar 2019

• Accumulated contracted sales: approx. RMB2bn

• Accumulated ASP: approx. RMB128,000 per sqm

• Gross profit margin/ net profit margin: 27%/13%

• Principal bank: Commonwealth Bank of Australia.

Sydney Branch of BOC, ICBC and CCB

Actual imageRendering

Actual image

Actual image

2727

4. Land Bank Layout

Meizhou Aoyuan (actual image)

2828

Operation strategy and land bank layout in 3 stages

In 2019, Aoyuan will focus on major cities to cultivate regional development, while

maintaining quick-turnover strategy, consolidating and expanding market share

15 ˣ 3

30 ˣ 3

30 ˣ 4

• Complete the strategic framework of 4 major regions and

strengthen development foundation

• Form a 15 x 3 layout (i.e., each of the 15 city-level subsidiaries

to achieve annual contracted sales of RMB3bn or above)

• Focus on core and major cities and achieve expansion from cities to

city clusters

• Achieve 30 x 3 breakthrough (i.e., each of the 30 city-level

subsidiaries to achieve annual contracted sales of RMB3bn or above)

• Cultivate core regions, Tier 1+2 major cities and strong Tier 3

cities to enhance productivity and market share

• Realize 30 x 4 (i.e., each of the 30 city-level subsidiaries to

achieve annual contracted sales of RMB4bn or above)

Stage 1

Stage 2

Stage 3

2929

15,000 14,247

8,568

3,728 3,322 3,052 2,976 2,957 2,792 2,447 2,429 2,217 2,121 2,081 1,971 1,893 1,867 1,530 1,339 863 532 372 338

0

10,000

20,000

Be

ijing

Sh

en

zh

en

Tia

njin

Hub

ei

Hain

an

Zh

ejia

ng

Sh

an

do

ng

Gu

an

gzh

ou

Sic

hu

an

Heb

ei

Hen

an

Jia

ng

su

Cho

ng

qin

g

Sh

aa

nxi

Fu

jian

Yu

nn

an

Hun

an

An

hu

i

Gu

an

gxi

Gu

izh

ou

Jia

ng

xi

Lia

on

ing

Gu

an

gd

on

g(e

xcl. G

Z &

SZ

)

RegionProvince/

City

Contribution

(by total

GFA)

Total GFA

(‘000 sqm)

Expected

Saleable

Resources

(RMB bn)

South China

Greater Bay Area 7,400 111.0

Guangdong (excl. GBA) 4,367 30.6

Guangxi (Nanning, Yulin, etc.) 4,272 34.2

Hainan (Haikou) 163 3.6

Subtotal 48% 16,202 179.4

Core region

of Central &

Western

China

Chongqing 1,338 10.5

Sichuan (Chengdu) 1,477 22.2

Hunan (Changsha, Zhuzhou, etc) 2,970 21.0

Hubei (Wuhan, Jingzhou) 644 6.1

Shaanxi (Xi’an) 1,189 10.7

Henan (Zhengzhou) 240 4.4

Jiangxi (Ganzhou) 418 2.3

Guizhou (Bijie) 302 1.6

Yunnan (Kunming) 268 2.8

Subtotal 26% 8,846 81.6

East China

Zhejiang (Ningbo, Jiaxing, etc.) 965 12.1

Jiangsu (Nanjing, Yangzhou, etc.) 1,575 18.1

Anhui (Hefei, Bengbu,etc.) 1,035 14.0

Fujian (Fuzhou, Quanzhou, etc.) 940 7.1

Subtotal 13% 4,515 51.3

Bohai Rim

Liaoning (Shenyang) 1,345 8.7

Beijing 176 5.3

Tianjin 157 2.4

Hebei (Zhangjiakou, etc.) 303 3.8

Shandong (Qingdao) 604 9.1

Subtotal 8% 2,585 29.3

Offshore

Australia (Sydney) 1,596 7.5

Canada (Toronto, Vancouver) 329 12.0

Hong Kong 16 3.0

Macao 8 0.9

Subtotal 5% 1,949 23.4

Grand total 100% 34,097 365.0

Average land cost:

RMB2,102 per sqm

Average land cost by region (onshore)

Well-balanced regional layout with niche focus on GBA

Based in Guangdong with a niche focus on the Greater Bay Area, Aoyuan has a strategic layout in

South China, core region of Central & Western China, East China and Bohai Rim

As of 31 Dec 2018, Aoyuan had 198 projects across 70 onshore and offshore cities, with a total GFA of

approx. 34.10mn sqm (attributable: 80%) and total saleable resources of approx. RMB365.0bn,

which is sufficient for development needs in the coming three years

China

Central

&

Western

China

South

China

East

China

Bohai

Rim

(RMB)

3030

Land bank breakdown

Land bank breakdown by region

(by land cost)

Land bank breakdown by region

(by saleable resources)

Land bank breakdown by type

(by GFA)

Land bank breakdown by status

(by GFA)

South China45%


Western China24%

East China13%

Bohai Rim9%

Offshore9%

South China49%


Western China22%

East China14%

Bohai Rim8%

Offshore7%

Held for future development

46%

Under development

44%

Completed and held for

sale7%

Completed and sold, but yet to be delivered/

Auxiliary facilities3%


79%


17%

Investment properties

2%

Auxilliary facilities

2%

3131

Seize first-mover opportunities to expand in GBA

The Greater Bay Area will become an important growth engine to boost China's economic development, and Aoyuan will benefit from the policy dividend to expand its presence in the region

Guang-

zhou

Shen-

zhen

Hong

KongMacao

Hong Kong, Macao, Guangzhou and

Shenzhen as the core engines to drive

surrounding cities

Accelerate construction of an inter-city

expressway network to create a one-hour life

circle among major cities in the region

Multi-level facilitation policies to promote

smooth flow of talents, capital, information,

technology and other factors

Deepen the cooperation

among Hong Kong and

Shenzhen, Macao and

Zhuhai, Speeding up the

integration of Guangzhou

and Foshan; development

of urban agglomeration

Based on the Development Plan for the Guangdong-Hong Kong-Macao Greater Bay Area in Feb 2019

and the comprehensive collaboration among Guangdong, Hong Kong and Macao,

a world-class Bay Area and a urban agglomeration framework will be generally established by 2022

Capital

Talent

Information

Technology

i

HK-Zhuhai-Macao

Bridge

HK-Zhuhai

(Commenced

operation)

3 hrs 30 mins

Shenzhen-

Zhongshan Bridge(Commence

operation in 2024)3 hrs 30 minsZhongshan-

Shenzhen

14 mins45 mins

2 hrs 47 mins

HK-Guangzhou

Guangzhou-Shenzhen-

Hong Kong

High Speed Rail

Inter-city railway

3,200km

(2016)

4,400km

(2020)

Expressway

~5,600km

(2016)

~8,800km

(2020)

Construction of

“1 Hour Living

Circle” through

integration

(Commenced

operation)

HK-Shenzhen

3232

Aoyuan’s projects on sale in GBA at a glance

Based in the Greater Bay Area, Aoyuan has a total GFA of 7.40mn sqm with estimated saleable resources of RMB111.0bn

As a key developer in GBA, Aoyuan has been included in the Hang Seng Stock Connect Big Bay Area Composite Index

Huizhou

Guang

zhou

Dong

guan

Shen

zhen

Foshan

Jiang

men

Zhong

shan

Zhuhai

Hong

Kong

Aoyuan Lingyu

Aoyuan Tianxiang Yufeng

Aoyuan Yushan Lake

Aoyuan Deming Garden

Aoyuan Capital of Kaesong

Aoyuan Champion City

Aoyuan Oasis

Aoyuan Mansion

Aoyuan Lianfeng State

Aoyuan Glorious Mansion

Luogang Aoyuan Plaza

Aoyuan The Prime Palace

Aoyuan Central Parkview

Aoyuan Shanglin Yipin

Aoyuan Peach City

Nanhai Aoyuan Champion City

Sanhui Champion City

Aoyuan Precious Palace

Aoyuan GreenLand Golden Town

Heshan Aoyuan Huiyuan Xindu

Aoyuan Seaview Mountain

Zhuhai Aoyuan Plaza

Aoyuan Bay Area

Aoyuan Xianghai Scenery

Aoyuan Haiquan Huating

Aoyuan Lingshang

Aoyuan Lingxiu

Aoyuan Garden Life

Aoyuan Xiangshan Scenery

Aoyuan Guanlan Glorious Mansion

Aoyuan City Plaza

Aoyuan Jade Bay

Aoyuan SOHO

Aoyuan AOffice46

Zhuhai Aoyuan

Seaview Mountain

Foshan Aoyuan

The Prime Palace

Guangzhou Aoyuan

Lianfeng StateShenzhen

Aoyuan Jade Bay Hong Kong Aoyuan AOffice46

Huizhou Aoyuan Yushan LakeDongguan Aoyuan City Plaza

Zhongshan Aoyuan Lingshang

Zhuhai Aoyuan Bay Area

Dongguan Aoyuan

Guanlan Glorious MansionJiangmen Aoyuan

Precious Palace

3333

Aoyuan has 16 major urban redevelopment projects at different phases with planned total GFA of approx. 9.8mn sqm and

estimated saleable resources of approx. RMB145.2bn. Urban redevelopment projects can generate considerable profits

through primary and/or secondary development, as well as disposal of interest at project level

Project City Type StatusSite area

(‘000 sqm)

Planned total

GFA

(‘000 sqm)

Estimated

saleable GFA

(‘000 sqm)

Estimated

saleable

resources

(RMB mn)

1Guangzhou Panyu Nitrogen

Fertilizer PlantGuangzhou, Guangdong Old factory Redevelopment planning application 100 300 300 15,000

2 Guangzhou Donglang Village Guangzhou, Guangdong Old village Confirmed as intended project developer 590 1,550 440 25,200

3 Zhuhai Cuiwei Village Zhuhai, Guangdong Old villageApproved as project developer

by government350 1,260 570 20,000

4 Zhuhai Shuiwengkeng Village Zhuhai, Guangdong Old village Redevelopment planning application 80 230 130 4,000

5 Zhuhai Gongbei Lian’an Village Zhuhai, Guangdong Old villageApproved as project developer

by government60 260 120 5,400

6Zhuhai Gongbei Guanzha &

Gaosha VillageZhuhai, Guangdong Old village

Government approval;

Compensation agreement120 570 260 13,400

7 Zhuhai Xiaxu Village Zhuhai, Guangdong Old village Redevelopment planning application 140 430 350 8,800

8 Zhuhai Qianshan Anlian Road Zhuhai, Guangdong Old factory Redevelopment planning application 10 80 80 1,800

9 Zhuhai Yafang Building Zhuhai, Guangdong Old factory Redevelopment planning application 5 20 15 500

10 Zhuhai Pingsha Aoyuan Plaza Zhuhai, Guangdong Old factory Redevelopment planning application 150 320 290 4,500

11 Foshan Nanhai Luo Village Foshan, Guangdong Old village Completed demolition 200 640 490 10,000

12 Dongguan Shimei Village Dongguan, Guangdong Old village Redevelopment planning application 150 640 300 6,600

13 Nanning Nantang project Nanning, Guangxi Old villageCompleted first phase of

acquisition and demolition280 720 720 7,900

14 Nanning Chendong Village Nanning, Guangxi Old village Redevelopment planning application 1,070 2,370 1,570 17,300

15 Hebei Bazhou Bazhou, Hebei Old village Redevelopment planning application 160 400 300 2,600

16 Hong Kong Robinson Road Mid-levels, Hong Kong Old building Compulsory sale for redevelopment 1 5 5 2,200

Total 3,470 9,800 5,940 145,200

Major urban redevelopment projects

Cooperation agreementConfirm

redevelopment planRedevelopment planning application

State-owned land ownership certificate

Villagers’ general assembly to decide on redevelopment

Villagers’ general assembly to decide on early-stage

developer

Redevelopment planning application

Government approval;Compensation agreement

State-owned land ownership certificate

1-3 months

Redevelopment timetable for old factories (Zhuhai)

Redevelopment timetable for old villages (Zhuhai)

1-3 months 1-3 months 1-3 months

1-3 months 1-3 months 3-6 months 1-3 months6-9 months

3434

ProjectSite area

(‘000 sqm)

Planned total

GFA

(‘000 sqm)

Estimated

saleable GFA

(‘000 sqm)

Estimated

saleable

resources

(RMB mn)

ASP of

projects nearby

(RMB/sqm)

1Guangzhou Panyu Nitrogen

Fertilizer Plant100 300 300 15,000 62,000 - 65,000

2 Zhuhai Cuiwei Village 350 1,260 570 20,000 32,000 - 35,000

3Zhuhai Gongbei

Lian’an Village60 260 120 5,400 42,000―45,000

4Zhuhai Qianshan

Anlian Road13 80 80 1,800 20,000―23,000

5 Zhuhai Yafang Building 5 20 15 500 26,000―30,000

6Zhuhai Pingsha

Aoyuan Plaza150 320 290 4,500 13,000―16,000

7 Foshan Nanhai Luo Village 200 640 490 10,000 19,000―22,000

8 Dongguan Shimei Village 150 640 300 6,600 20,000―23,000

9 Hong Kong Robinson Road 1 5 5 2,200 400,000―450,000

Total 1,029 3,525 2,170 66,000

Expected conversion of urban redevelopment in 2019

3535

• Type: Old village redevelopment

• Location: Located in Xiangzhou District of Zhuhai, surrounded

by several main roads, close to Mingzhu Station of inter-city

railway, 5min ride from Zhuhai Aoyuan Plaza

• Estimated saleable GFA and resources: approx. 570,000

sqm and RMB20bn

• Status: In Aug 2018, Aoyuan officially became the developer of

Zhuhai Cuiwei Village redevelopment project and completed

the initial planning

Zhuhai Cuiwei Village redevelopment

Expected conversion of urban redevelopment in 2019 (cont.)

• Type: Old village redevelopment

• Location: Next to Gongbei Port, Zhuhai Station of the Guangzhou-

Zhuhai Railway, and Hong Kong-Zhuhai-Macao Bridge, Lian’an Village

is a major redevelopment of the Zhuhai government

• Estimated saleable GFA and resources: approx. 120,000 sqm and

RMB5.4bn

• Status: In Mar 2019, Aoyuan officially became the developer of Zhuhai

Lian’an Village redevelopment project

Zhuhai Gongbei Lian’an Village redevelopment

Guangzhou Panyu Nitrogen Fertilizer Plant redevelopment

• Type: Old factory redevelopment

• Location: Located in the north of Xinzao Town, Panyu District of

Guangzhou, next to Xinhua Expressway, close to Guangzhou

Higher Education Mega Center

• Estimated saleable GFA and resources: approx. 300,000 sqm

and RMB15bn

• Status: Approved by government and signed compensation

agreement

Pearl River

3636

In 2018, Aoyuan acquired 64 projects with newly added GFA of approx. 12.58mn sqm (attributable: 82%) (M&A: 89%) and

newly added saleable resources of approx. RMB164.5bn, maintaining reasonable land cost and stable margins

Strategic land bank replenishment

Region Province/ City

Avg. land

cost

(RMB/sqm)

Total GFA

(‘000 sqm)

Attributable

GFA

(‘000 sqm)

Attributable

land cost

(RMB mn)

Interest (%)

South

China

Greater Bay Area 3,998 996 767 3,121 77%

Guangdong

(excl. GBA)2,743 1,822 1,338 3,713 73%

Guangxi 1,019 1,631 1,118 1,318 69%

Hainan 3,313 163 163 540 100%

Subtotal 2,425 4,612 3,386 8,692 73%

Core

region of

Central &

Western

China

Chongqing 2,292 462 462 1,059 100%

Sichuan 2,017 851 772 1,576 91%

Hubei 5,063 311 181 1,028 58%

Hunan 2,479 996 777 1,871 78%

Shaanxi 2,462 900 686 2,109 76%

Henan 2,427 240 204 495 85%

Jiangxi 399 272 272 109 100%

Yunnan 1,866 268 137 255 51%

Subtotal 2,378 4,300 3,491 8,502 81%

East

China

Zhejiang 2,856 436 436 1,245 100%

Jiangsu 1,728 415 415 717 100%

Anhui 1,332 561 561 747 100%

Fujian 2,582 365 299 648 82%

Subtotal 2,055 1,777 1,711 3,357 96%

Bohai Rim

Shandong 4,412 103 82 364 80%

Tianjin 8,564 157 157 1,344 100%

Hebei 2,533 303 179 475 59%

Subtotal 4,558 563 418 2,183 74%

Offshore

Australia 710 1,278 1,267 860 99%

Canada 5,596 38 38 213 100%

Hong Kong 105,469 16 16 1,687 100%

Subtotal 2,108 1,332 1,321 2,760 99%

Grand total 2,418 12,584 10,327 25,494 82%

Regional distribution (by GFA)

Regional distribution (by land cost)

South China37%

East China14%

Bohai Rim4% Offshore

11%

South China37%


Western China34%

East China12%

Bohai Rim8%

Offshore9%

Core region of

Central &

Western China

34%

3737

High-quality projects

successfully acquired since IPO

No.

Avg. land

cost

(RMB/sqm)

Total GFA

(sqm)

Total cost

(RMB mn)

2008 2 369 341,483 126

2009 4 876 3,583,868 3,138

2011 7 2,933 1,268,457 3,721

2012 8 2,178 1,874,914 4,084

2013 8 2,245 2,232,579 5,013

2014 8 1,715 2,657,445 4,557

2015 13 2,312 2,491,800 5,761

2016 17 3,170 3,138,630 9,950

2017 58 2,446 12,861,278 31,458

2018 64 2,418 12,584,332 30,432

Total 189 2,283 43,034,786 98,240

Strategic land bank replenishment (cont.)

Breakdown of land bank acquired since IPO

(by land cost)

• As of 31 Dec 2018, Tier 1&2 plus satellite cities and international

cities accounted for 75% of land bank in terms of land costs,

while Tier 3&4 accounted for 25%

• Adhering to well-balanced city layout, Aoyuan continues to focus

on South China and enhance layout in Greater Bay Area, and to

expand into core region of Central and Western China and East

China. In terms of GFA, South China accounts for 50%, Core

Region of Central and Western China and East China account

for 20%, respectively, Bohai Rim and Offshore account for 5%,

respectively

• Continue to capitalize M&A advantage and monitor public land

auction market closely, pay attention to the integration of

industry and city, urban redevelopment and special land

acquisition channels such as cooperation with village and

corporations etc. Land bank through M&A and public land

market accounted for 67% and 33%, respectively since IPO

South China48%


Western China24%

East China12%

Bohai Rim9%

Offshore7%

3838

Jiangmen Aoyuan Tianyue Bay (actual image)

5. Appendix

3939

✓ In Jan-Oct 2018, Chairman GUO Zi Wen acquired37.90mn shares at an average price of approx. HK$4.81per share, with a total consideration of HK$180mn, andhis shareholding increased to approx. 55%

✓ In Jun 2018, Aoyuan repurchased approx. 3.69mnshares at an average price of approx. HK$5.29 pershare, with a total consideration of HK$19.51mn(approx. 0.14% of the entire issued share capital)

✓ In Mar 2017, Chairman GUO Zi Wen acquired approx.53.43mn shares at an average price of approx. HK$2.40per share, with a total consideration of HK$128mn, andhis shareholding increased to approx. 54%

✓ In Nov 2016, Aoyuan repurchased approx. 112mnshares at an average price of approx. HK$1.68 pershare, with a total consideration of HK$188mn (approx.4% of the entire issued share capital)

✓ In Aug 2015, Chairman GUO Zi Wen acquired approx.55.12mn shares at an average price of approx. HK$1.65per share, with a total consideration of HK$91.41mn,and his shareholding increased to approx. 50%

✓ In Jul 2014, Chairman GUO Zi Wen acquired approx.56.23mn shares at an average price of approx. HK$1.55per share, with a total consideration of HK$86.97mn,and his shareholding increased to approx. 48%.

While maintaining a stable and generous dividend policy, Aoyuan’s Chairman has demonstrated strong

confidence in Aoyuan’s long term development through rounds of share purchases and buybacks

Shareholding structure

GUO Zi Wen/ GUO Zi Ning*Deemed interests

Approx. 55.4%

Public

Approx. 44.6%

(As of 18 Mar 2019)

Chairman: GUO Zi Wen

Approx. 56.6%

Chairman: GUO Zi Ning

4040

-42%

-40%

-36%

-36%

-33%

-31%

-24%

-24%

-23%

-23%

-22%

-21%

-20%

-19%

-17%

-15%

-15%

-13%

-12%

-11%

-9%

-1%

2%

6%

7%

9%

13%

16%

20%

21%

23%

28%

31%

Greentown

POLY H

Country Garden

Sino-Ocean

GZ R&F

BC Land

KWG

SH Shimao

Vanke - A

Yuzhou

Agile

Sunac

SZIH

Powerlong

Poly A

China SCE

Vanke - H

Evergrande

CIFI

CMSK

Gemdale

Yuexiu

China Jinmao

Ronshine

COLI

Future Land

Times

Longfor

Logan

Shimao

Zhenro

CR Land

-30%

0%

4%

19%

22%

32%

38%

40%

45%

51%

54%

55%

55%

55%

58%

60%

65%

66%

68%

71%

76%

88%

99%

103%

108%

125%

141%

176%

200%

208%

243%

402%

458%

SH Shimao

Zhenro

SZIH

CMSK

COLI

CR Land

Yuexiu

BC Land

China SCE

Vanke - A

Yuzhou

Ronshine

Poly A

Sino-Ocean

POLY H

Greentown

China Jinmao

Powerlong

Shimao

Gemdale

Vanke - H

GZ R&F

Longfor

Times

KWG

CIFI

Logan

Agile

Future Land

Country Garden

Sunac

Evergrande

-5%

-3%

-1%

0%

4%

4%

6%

7%

10%

10%

13%

14%

17%

18%

19%

20%

21%

21%

23%

23%

23%

24%

24%

30%

31%

31%

34%

40%

40%

41%

62%

67%

73%

Shimao

Sino-Ocean

Zhenro

BC Land

CR Land

Longfor

COLI

Greentown

Evergrande

SZIH

KWG

Vanke - H

Poly A

Vanke - A

Country Garden

Logan

China Jinmao

Powerlong

SH Shimao

Yuexiu

CMSK

Agile

POLY H

China SCE

Gemdale

CIFI

Yuzhou

GZ R&F

Sunac

Ronshine

Future Land

Times

(HK cents per share)

10.1 11.0 10.5 11.0

31.042.0

2.2 6.0

30% 30% 36% 46% 40% 40%

0

10

20

30

40

50

60

2013 2014 2015 2016 2017 2018

Ordinary dividend Special dividend Payout ratio

17.010.1 11.0

12.7

31.0

(1)

Note (1): Payout ratio = Total dividend / Profit attributable to shareholders

42.0

proposed

Stock performance and dividend policy

(1)

Outperforming stock price with active turnover Stable and generous dividend policy

2017 2018 2019YTD*

Source: Bloomberg

*As of 15 Mar 2019

Aoyuan HSI

01/2017 01/2018 01/2019

Key research coverage

on Aoyuan equity and bonds(1)

✓ ABCI ✓ AMTD ✓ BAML

✓ CGS-CIMB ✓ CICC ✓ CMBI

✓ CMS Int’l ✓ Credit Suisse ✓ DBS

✓ Deutsche Bank ✓ Essence Int’l ✓ GTJA

✓ J.P. Morgan ✓ Haitong Int’l ✓ HSBC

Note (1): In alphabetical order

Note (2): For details of research coverage, please refer to company website of

Aoyuan – Investor Relations

4141

Pioneer

(开创)

Founded in 1996, Aoyuan first introduced the “Sports+Property“ development concept partnering with

China Sports under General Administration of Sport of China and successfully developed the first sports-

themed community in China, namely Guangzhou Olympic Garden, establishing itself as the pioneer in

composite real estate in China. Aoyuan (3883.HK) was listed on the Main Board of Hong Kong Stock

Exchange in 2007 with branding philosophy of “Building a Healthy Lifestyle” and keeps promoting

composite real estate upgrades

Aoyuan received approx. HK$3.2bn in cash and recorded special gains of HK$1.1bn by successfully

exiting 8 Chang’an Ave Beijing project in 2012. Aoyuan started to unleash its potential and persist with

further breakthroughs. In the same year, Aoyuan successfully issued its first USD senior notes in the

international capital markets. In 2013, contracted sales exceeded RMB10bn and more professional

managers joined Aoyuan. 2016-2018 CAGR for contracted sales reached 89%

In 2018, Aoyuan achieved contracted sales of RMB91.3bn with a yoy growth rate of 100%, which is one

of the fastest growing PRC developers. Contracted sales in Dec 2018 amounted to RMB17.4bn, setting a

new record high for single-month sales. Aoyuan has received upgrades of corporate rating and rating

outlook from all 3 major international rating agencies, Fitch, Moody’s and S&P during 2016 - 2019

Aoyuan is a member of Hang Seng Stock Connect Hong Kong Index and Hang Seng Stock Connect Big

Bay Area Composite Index. One of its sub-groups, namely Aoyuan Healthy Life (3662.HK), has been

successfully spun off and listed on the Main Board on the Hong Kong Stock Exchange in Mar 2019. In

2018, Aoyuan was named among “Forbes Asia’s Fab 50” and “Fortune China Top 100 Board of Directors”

Breakthrough

(破茧)

Take-off

(起飞)

Upgrade

(跃飞)

Upholding the corporate values of “efficiency, integrity and responsibility”, Aoyuan keeps enhancing

the business structure of “one core business with vertical development”, strengthening its

internationalized position in the RMB100bn sales club, aiming to become one of Global 500 companies in

the world

Vision

(愿景)

Aoyuan: Breakthrough to Success as Top 30 PRC Developer

4242

Professional Management Team and Outstanding Corporate Governance

Board of Directors

Audit Committee, Remuneration Committee, and Nomination Committee

Senior Management

ZHONG Ping

Executive Director,

CFO

MA Jun

Executive Director,

COO

GUO Zi Ning

Vice Chairman,

CEO

GUO Zi Wen

Chairman,

Group Founder

CHEUNG

Kwok Keung

Independent Non-

executive Director

TSUI King Fai

Independent Non-

executive Director

HU Jiang

Independent Non-

executive Director

Attracting outstanding and experienced talents to strengthen professional management team,

upholding excellent compliance in corporate governance and maintaining high corporate transparency

to enhance core competitiveness and ensure balanced and sustainable development

Financial

and Fund

Management

CHEN Zhi Bin

Vice President

Investment

and Fund

Management

CHEN Yong

Vice President

Financial

Group

HUANG Bang Hua

Vice President

Capital Markets,

International

Investment Group

Jacky CHAN

Vice President

Commercial

Group

ZHANG Jun

Vice President

HR & Admin,

Brand

management

GUO Shi Guo

Vice President

Project

Management

XIAO Yi

Vice President

Land Expansion,

Legal Risk

Management

ZHOU Xian Jun

Assistant to

President

Strategic

Investment

RUAN Yong Xi

Assistant to

President

Design

and R&D

GAO Xiang Dong

Assistant to

President

Aoyuan was named among “Fortune China Top 100 Board of Directors” and

“The Asset Corporate Gold Awards in Corporate Governance and Investor Relations” in 2018

4343

View from Sydney Aoyuan One30 Hyde Park

6. Investor Relations

4444

Committed to professional investor relations management, Aoyuan strives to maintain a long-term interactive

relationship with investors. Aoyuan upholds an open and candid attitude to listen to the capital markets and

maintain a high-level corporate transparency and corporate governance

Close and two-way communication with investors Investor relations activities in 2018

Investment institutions by region Investment institutions by investor type

✓ Organized and participated in a total of 430 investor relations

activities in 2018, including 318 management meetings, 52

telephone/ video conferences, 4 investor briefings and press

conferences, 18 site visits, 27 investor conferences and 11

investor roadshows held in Beijing, Shanghai, Shenzhen, Hong

Kong, Singapore, New York and London, etc.

✓ Met and communicated with 671 institutional investors from 982

investment institutions in 2018 to enhance investor’s awareness

of latest development in business performance, operating

conditions and development strategies, to understand capital

market views and provide timely feedback to top management

Professional IR management

Management meeting

318 times

Telephone conf erence

52 times

Inv estor conf erence

27 times

Project site v isit

18 times

Inv estor roadshow

11 times

Inv estor brief ing and press

conf erence

4 times

Bond53%

Equity47%

Mainland China & Hong Kong

64%

America12%

Europe11%

Middle East1%

Asia Pacific (excl.

Mainland China &

Hong Kong )

12%

4545

Professional IR management (cont.)

Upholding highest standard of investor relations management, Aoyuan’s reputation and influence in capital markets are increasing

Awarded “The Asset Corporate Gold Awards in Corporate Governance and Investor Relations”

Annual General Meeting

Annual General Meeting Investor Roadshow

Investor Site Visit

Results Briefing

Results Briefing

Investor Conference

Reverse Roadshow

Corporate Finance

4646

Jacky Chan

Group Vice President

President of International Investment Group

HK: (852) 2180 9566

China: (86 20) 3868 6666

Email: [email protected]

Anthony Cheng

Financial Controller

HK: (852) 2180 6981

China: (86 20) 3868 6666


Emma Qi

Deputy Head of Corporate Finance and

Investor Relations

HK: (852) 2180 9566

China: (86 20) 3868 6666


Heng Tam

Investor Relations Manager

HK: (852) 2180 9556

China: (86 20) 3868 6666


IR key contacts

Aoyuan WeChat

Official Account

Aoyuan Club WeChat

Subscription Account

Follow us on:

Company HQAoyuan Mansion, No.108,

Huangpu Avenue West, Tianhe, Guangzhou

HK OfficeUnit 1901-02, 19/F, One Peking,

No.1 Peking Road, T.S.T, Hong Kong

E-mail [email protected]

4747

This presentation was prepared by China Aoyuan Property Group Limited (the “Group” or the “Company”) for reference only.

This presentation may not be reproduced or redistributed to any persons without explicit authorization from the Company.

Neither the Company nor any of its respective subsidiaries, directors, employees or advisors, directly or indirectly, gives any

representation or warranty as to the completeness and accuracy of all the information contained in this presentation (including

all forward-looking statements). The information contained in this presentation should be considered in the context of the

circumstances prevailing at the time of presentation and has not been, and will not be, updated to reflect material

developments which may occur after the date of the presentation.

This presentation contains statements that reflect the Company’s beliefs and expectations about the future. These forward-

looking statements are based on a number of assumptions about the Company’s operations and factors which are beyond the

Company’s control, and accordingly, actual results may differ materially from these forward-looking statements. The Company

does not undertake to revise forward-looking statements to reflect future events or circumstances.

The Company expressly disclaims all the liabilities (in negligence or otherwise) for any loss incurred or sustained by the

participants of this presentation, their employers, entities, agents or any of their related parties as a result of using the

information contained in this presentation.

The materials and information in this presentation are for informational purposes only and do not constitute an offer or

solicitation for the purchases or sale of any securities or financial instruments or to provide any investment service or

investment advice.

Disclaimer

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