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2013 Annual Results Presentation June 2014

2013 Annual Results Presentation - TodayIR · cash flow generation and ensure capital adequacy and flexibility Implementation of “Aoyuan standardized project development strategy”

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Page 1: 2013 Annual Results Presentation - TodayIR · cash flow generation and ensure capital adequacy and flexibility Implementation of “Aoyuan standardized project development strategy”

2013 Annual Results

Presentation

June 2014

Page 2: 2013 Annual Results Presentation - TodayIR · cash flow generation and ensure capital adequacy and flexibility Implementation of “Aoyuan standardized project development strategy”

2

Overview 1 3

Financial Highlights 2 8

Business Operations 3 14

Appendix 4 25

Contents

Page 3: 2013 Annual Results Presentation - TodayIR · cash flow generation and ensure capital adequacy and flexibility Implementation of “Aoyuan standardized project development strategy”

1. Overview

3

Page 4: 2013 Annual Results Presentation - TodayIR · cash flow generation and ensure capital adequacy and flexibility Implementation of “Aoyuan standardized project development strategy”

4

Contracted sales for 2013 hit a record high of RMB10.04bn, representing YoY growth of approximately 91%, which exceeds the revised full year contracted sales target of RMB8.5bn by approximately 118%. Contracted sales ASP was RMB9,364 per sqm, representing a YoY growth of approximately 50%

In 2013, the regional diversification strategy continued to pay off. Sales of 14 projects outperformed internal targets while 3 projects had respective contracted sales in excess of RMB1 billion

Strong growth momentum from 2013 is expected to continue into 2014, with total salable area for 2014 expected to reach 3.02m sqm

Robust sales in 2013

In 2013, revenue was RMB5,729.3m, representing YoY growth of approximately 45%; gross profit was RMB1,758.6m, representing YoY growth of approximately 48%; core net profit (excluding after tax fair value gain on investment properties and non-recurring income) was RMB672.9m, representing YoY growth of approximately 344%

Total cash and cash equivalent (including restricted cash) was RMB4,711.6m, with RMB2,750.0m of banking facilities were unutilized; net gearing was 64%

Proposed final dividend of RMB8.0 cents per share, maintaining a stable dividend policy

Outstanding financial performance

In 2013, China Aoyuan successfully acquired 8 high quality residential and commercial projects in Guangzhou, Chongqing, Foshan, Jiangmen, Yangjiang and Meizhou with total GFA of 2.13m sqm for RMB4.68 bn with an average price of RMB2,197 per sqm. The Group continued to expand and optimize the land bank to ensure a sustainable growth going forward

3 of the above projects have already commenced presales, while the other projects are expected to contribute to 2014 contracted sales

As Guangzhou Province continued to promote works on the “transformation of the three olds”, through strategic cooperation we had successfully developed 2 such new projects in 2013

Strategic land bank expansion

Key performance highlights

Page 5: 2013 Annual Results Presentation - TodayIR · cash flow generation and ensure capital adequacy and flexibility Implementation of “Aoyuan standardized project development strategy”

5

Debut issuance of 5-year, US$125m bond in November 2012 (maturing in 2017), followed by a tap of an additional US$100m in January 2013, raising US$225m in total. The successful and well received debut bond issuance set the foundation of a strong track record for Aoyuan in the capital markets

Continued to tap on the conducive capital markets by issuing a new 5-year, US$300m bond in January 2014 (maturing in 2019). The proceeds raised will further optimize the Company’s debt structure, while extending the debt maturity profile and providing additional financial flexibility

Established diversified funding sources by maintaining excellent long term cooperative relationships with both Chinese and foreign banks while keeping stable credit ratings: Moody’s (B2, stable outlook), S&P (B, stable outlook) and Fitch (B+, stable outlook)

Optimized capital structure

Continually optimizing management structure and actively recruiting leading talents in the industry, to lay a firm foundation for the new phase of rapid growth

Hired a new vice president responsible for corporate finance and investor relations to take the lead in further diversifying financing channels, establish effective management of investor relations, ensure a high degree of corporate transparency, develop a mutually beneficial long term relationship with capital markets and consolidating Aoyuan’s shareholder base

Aoyuan Commercial Group formally established and hired a new assistant to the president and a president, while attracting the elite in the industry with extensive commercial property experience. These recruitment initiatives are target towards enhancing Commercial Group's management and operational standards

Separately established a Product Experience and Project Management department, amongst others, as part of a broader strategy to introduce industry best practices in terms of product experience and project management into Aoyuan

Outstanding management team

Key performance highlights (cont.)

Page 6: 2013 Annual Results Presentation - TodayIR · cash flow generation and ensure capital adequacy and flexibility Implementation of “Aoyuan standardized project development strategy”

6

91%

9%

68%

32%

97%

3%

87%

13%

2007 2008 2009 2010 2011 2012

Increased residential property sales Gradual expansion of commercial property development amid tightened macro policy on residential properties, mitigating impact on overall selling price

Residential properties Salable commercial properties

2013

64%

36%

63%

37%

Well-defined strategy of developing commercial and residential properties in parallel to diversify income sources in order to respond adequately to macro economic changes

Flexible adjustment of commercial and residential mix to actively respond to changing customer demands and market conditions

Precise product positioning and customer targeting

61%

39%

Market Strategy: Developing commercial and residential properties in parallel

(Recognized property sales breakdown by product types)

Characteristics

Product positioning

Target customers

Apartments: Key Tier-1, Tier-2 and Tier-3 cities with strong inelastic residential demand

Houses: Urban or suburban areas Convenient transportation with comprehensive supporting

facilities

Mostly located in the planned CBD areas in Tier-1, Tier-2 and Tier-3 cities; mainly for sale, with a small portion held for leasing purposes

Convenient transportation and high foot traffic Mixed-used properties, key products including high-rise commercial

apartments and street retail shops

Medium-income class individuals or households

Small- and medium-sized enterprises and self-employed entrepreneurs

Focusing on inelastic residential demand, which is less affected

by purchase restrictions

Robust demand not subjected to macro policies

Residential (including residential apartments and low density residential) Commercial (including commercial apartments and shops)

Page 7: 2013 Annual Results Presentation - TodayIR · cash flow generation and ensure capital adequacy and flexibility Implementation of “Aoyuan standardized project development strategy”

7

We achieve rapid development and rapid sales cycle through adopting a standardized development model. We strive to commence property development and presales within one year of land acquisition to expedite cash flow generation and ensure capital adequacy and flexibility

Implementation of “Aoyuan standardized project development strategy” which covers investment, positioning, overall planning, tendering, construction, marketing, building of display area, sales, property management, and properties delivery

Fair use of standardized products, including positioning standardization, display area standardization, property projects and garden standardization

Presale began only within six months of land acquisition for Chongqing Aoyuan The Metropolis, Guangzhou Aoyuan City Plaza, Guangzhou Aoyuan Health Plaza and Zhongshan Aoyuan Jinyu

Indicative development timetable for a single-phase project Aoyuan’s Development Strategy of “rapid development and rapid sales”

Recent examples on projects with rapid development and rapid sales cycle

Months 1 2 3 4 5 6-11 12-17 18-29 30~

Land acquisition

Planning and pre-work

Design

Construction

Pre-sale

Delivery and after-sale services

Cash flow-back within 12 months

Chongqing Aoyuan The Metropolis

Dec 2012 Mar Apr May Jun Jul Aug

Dec 2012 Land auction

Jun 2013 Pre-sale license obtained

Jun 2013 Pre-sale started

Guangzhou Aoyuan City Plaza

Jan 2013 Feb Dec 2012 Mar Apr May Jun Jul Aug

Dec 2012 Land auction

Jul 2013 Pre-sale license obtained

Jul 2013 Pre-sale started

Jan 2013 Feb

Market Strategy: Rapid development and rapid sales

Page 8: 2013 Annual Results Presentation - TodayIR · cash flow generation and ensure capital adequacy and flexibility Implementation of “Aoyuan standardized project development strategy”

2. Financial Highlights

8

Page 9: 2013 Annual Results Presentation - TodayIR · cash flow generation and ensure capital adequacy and flexibility Implementation of “Aoyuan standardized project development strategy”

9

(For the year ended December 31)

(RMB '000) 2013 2012 % change

Turnover 5,729,267 3,943,205 +45%

Gross profit 1,758,550 1,186,540 +48%

Gross profit margin 30.7% 30.1% +0.6p.p.

Core net profit¹ 672,881 151,527 +344%

Core net profit margin¹ 11.7% 3.8% +7.9p.p.

Final dividend per share (RMB cents)

8.0 5.2 +54%

Note:

1 excluding after tax fair value gain on investment properties and gain on disposal of a subsidiary/ a joint venture

Key income statement highlights

Page 10: 2013 Annual Results Presentation - TodayIR · cash flow generation and ensure capital adequacy and flexibility Implementation of “Aoyuan standardized project development strategy”

10

(RMB '000) 31 Dec 2013² 30 Jun 2013 31 Dec 2012

Total cash¹ 4,711,565 3,412,990 3,143,464

Total assets 29,931,506 23,465,379 20,813,041

Total assets less current liabilities

14,968,209 12,645,101 10,708,435

Equity attributable to owners of the Company

7,219,046 6,613,733 6,951,335

Total equity 7,523,856 6,946,426 7,103,685

Key balance sheet highlights

Note:

1 Total cash = Cash and cash equivalents + restricted bank deposits

2 As at 31 Dec 2013, banking facilities amounted to approximately RMB14.29 bn, of which approximately RMB2.75 bn were unutilized

Page 11: 2013 Annual Results Presentation - TodayIR · cash flow generation and ensure capital adequacy and flexibility Implementation of “Aoyuan standardized project development strategy”

11

31 Dec 2013 30 Jun 2013 31 Dec 2012

Net debt / Total equity¹ 64.0% 44.8% 25.1%

Net debt / Total capital² 16.1% 13.3% 8.5%

Net debt / EBITDA³ 4.2 2.0 1.3

Total debt / Total assets 74.9% 70.4% 65.9%

Liquidity ratio⁴ 1.8 1.9 1.7

Key financial ratios

Note:

1 Net debt = Total debt - total cash

2 Total capital = Total debt + total equity

3 EBITDA = Profit before tax + finance costs – revaluation on investment properties – other income and gains + depreciation + amortization (EBITDA for 30 Jun 2013 is based on the LTM EBITDA prior to 30 Jun 2013)

4 Liquidity ratio = Current assets / Current liabilities

Page 12: 2013 Annual Results Presentation - TodayIR · cash flow generation and ensure capital adequacy and flexibility Implementation of “Aoyuan standardized project development strategy”

12

Onshore bank

borrowings 50% Trust loans

28%

Senior notes 14%

Offshore bank

borrowings

8%

56%

34% 25%

23%

18% 39%

11%

41%

33%

10% 7% 3%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2011 2012 2013

< 1 year 1-2 years 2-5 years > 5 years

(as at 31 Dec 2013)

Debt maturity Debt breakdown by type

Debt profile

(as at 31 Dec 2013)

2011

Page 13: 2013 Annual Results Presentation - TodayIR · cash flow generation and ensure capital adequacy and flexibility Implementation of “Aoyuan standardized project development strategy”

13

31.4

47.1

81.3

63.4 1.0 6.7 -42.5

-44.5

-8.1 -5.9

-8.3 -4.7

-22.7

0

20

40

60

80

100

120

140

160

180

200

Div

idend p

aym

ents

Aoyuan adheres to the principle of prudent financial management by recycling capital through rapid presales and diversification of financing channels

2013 Cash flow Cash collection ratio

81.3

100.4

0

20

40

60

80

100

120

81%

(RMB 100 million) (RMB 100 million)

Cash flow and financial management

Openin

g c

ash

bala

nce

Opera

ting c

ash

flo

w

New

debt

rais

ed

Oth

er

cash

flo

w

Pro

ceeds

from

senio

r note

s is

suance

Land a

cquis

itio

ns

Const

ruct

ion e

xpense

s

Tax e

xpense

s

Opera

ting e

xpense

s

Inte

rest

expense

s

Debt

repaym

ent

Endin

g c

ash

bala

nce

Cash received in 2013

2013 Contracted

sales

Page 14: 2013 Annual Results Presentation - TodayIR · cash flow generation and ensure capital adequacy and flexibility Implementation of “Aoyuan standardized project development strategy”

3. Business Operations

14

Page 15: 2013 Annual Results Presentation - TodayIR · cash flow generation and ensure capital adequacy and flexibility Implementation of “Aoyuan standardized project development strategy”

15

Contracted sales and recognized sales (GFA)

Contracted sales and recognized sales (Value)

Contracted sales and recognized sales (ASP)

836

1,072

487

816

0

200

400

600

800

1,000

1,200

2012 2013

5,251

10,038

3,865

5,600

0

2,000

4,000

6,000

8,000

10,000

12,000

2012 2013

6,283

9,364

7,938

6,866

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

10,000

2012 2013

Contracted sales and recognized sales

(000's sqm) (RMB m) (RMB per sqm)

Contracted sales GFA

Recognized sales GFA

Contracted sales value

Recognized sales value

Contracted sales ASP

Recognized sales ASP

Page 16: 2013 Annual Results Presentation - TodayIR · cash flow generation and ensure capital adequacy and flexibility Implementation of “Aoyuan standardized project development strategy”

16

Maintain strong growth momentum 2014

Contracted sales exceed revised full year target 2013

Contracted sales exceed full year target 2012

204

325 378

303

575 524

155 270

680

561 499

776

234 333

564

363 492

1,754

675

455

781

1,036

1,350

2,001

977

405

707

519

817

0

500

1,000

1,500

2,000

2,500

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

Co

ntr

acte

d s

ale

s (

RM

B m

illi

on

)

2012 2013 2014

Strong contracted sales performance

Page 17: 2013 Annual Results Presentation - TodayIR · cash flow generation and ensure capital adequacy and flexibility Implementation of “Aoyuan standardized project development strategy”

17

Contracted sales breakdown (by region)

2013 contracted sales GFA: 1,072,000 sqm 2013 contracted sales value: RMB10.04 bn

Guangzhou 45%

Guangdong (ex-Guangzhou)

15%

Shenyang 11%

Chongqing 10%

Jiangsu 4%

Guangxi 2% Hunan

12%

Jiangxi 1%

Guangzhou 23%

Guangdong (ex-Guangzhou)

22%

Shenyang 15%

Chongqing 8%

Jiangsu 5%

Guangxi 5%

Hunan 19%

Jiangxi 3%

Page 18: 2013 Annual Results Presentation - TodayIR · cash flow generation and ensure capital adequacy and flexibility Implementation of “Aoyuan standardized project development strategy”

18

Recognized sales breakdown (by region)

2013 recognized GFA: 815,600 sqm 2013 recognized sales: RMB5.60 bn

Guangzhou 31%

Guangdong (ex-Guangzhou)

25%

Shenyang 24%

Chongqing 12%

Jiangsu 6%

Guangxi 2%

Guangzhou 18%

Guangdong (ex-Guangzhou)

32%

Shenyang 29%

Chongqing 10%

Jiangsu 7%

Guangxi 4%

Page 19: 2013 Annual Results Presentation - TodayIR · cash flow generation and ensure capital adequacy and flexibility Implementation of “Aoyuan standardized project development strategy”

19

Residential apartments

49%

Commercial apartments

9%

Retail shops and others

28%

Low density residential

14%

Residential apartments

56%

Commercial apartments

12%

Retail shops and others

26%

Low density residential

6%

Recognized sales breakdown (by product)

2012 recognized sales: RMB3.87 bn 2013 recognized sales: RMB5.60 bn

Page 20: 2013 Annual Results Presentation - TodayIR · cash flow generation and ensure capital adequacy and flexibility Implementation of “Aoyuan standardized project development strategy”

20

Project commencement and completion (by GFA)

Project commencement and completion

1,691

2,335

792

1,141

0

500

1,000

1,500

2,000

2,500

2012 2013

(000's sqm)

New project commencement Projects completion

Page 21: 2013 Annual Results Presentation - TodayIR · cash flow generation and ensure capital adequacy and flexibility Implementation of “Aoyuan standardized project development strategy”

21

Project name Area Status Product

type GFA

(sqm) %

owned

1 Guangzhou Aoyuan Plaza Panyu, Guangzhou Leased C, S 80,500 100%

2 Guangzhou Aoyuan Panyu, Guangzhou Leased C, S 8,600 100%

3 Guangzhou Aoyuan Health Plaza Panyu, Guangzhou Leasing C, S 6,100 100%

4 Shenyang Aoyuan The Metropolis Shenyang, Liaoning Leased H 6,900 100%

5 Shenyang Aoyuan Convention Plaza Shenyang, Liaoning Leasing C, S 114,200 100%

6 Guangzhou Aoyuan City Plaza Panyu, Guangzhou Leasing C, CH 27,700 100%

7 Guangzhou Aoyuan Kangwei Plaza Zengcheng, Guangdong Leasing C, S 60,000 51%

8 Yangjian Aoyuan Cental Parkview Yangjiang, Guangdong Leasing C 10,000 80%

9 Guangzhou Luogang Aoyuan Plaza Luogang, Guangzhou Leasing C 30,000 60%

10 Chongqing Aoyuan The Metropolis Chongqing Leasing C 18,900 100%

Total 362,900

Rental income mainly generated from investment property operation, which provides stable cash flow to the company

Investment properties include shopping mall, clubhouse, office, hotel, etc

As of Dec 2013, major investment property portfolio amounted to 362,900 sqm

80,500 sqm high-end shopping mall in Aoyuan Plaza in Panyu opened in Dec 2012

– Attracted many international brands, including H&M, Zara, Vanguard, etc

Investment properties business

Major investment properties overview

Renowned tenants at Guangzhou

Aoyuan Plaza

Diversified revenue streams

To further diversify our income sources and reduce volatility in revenue, Aoyuan will continue to develop investment properties and other businesses

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

Page 22: 2013 Annual Results Presentation - TodayIR · cash flow generation and ensure capital adequacy and flexibility Implementation of “Aoyuan standardized project development strategy”

22 2,0

49

1,7

72

1,5

98

1,6

42

718

338

111

81

0

500

1,000

1,500

2,000

2,500

Guangzh

ou

Chongqin

g

Jiangsu

Hunan

Guangdong

Liaonin

g

Jiangxi

Guangxi

(RM

B p

er

sq

m)

Liaoning Guangzhou

Chongqing

Guangxi

Jiangxi

Guangxi

Guangdong

Jiangxi Chongqing

Jiangsu

Liaoning

Breakdown by land bank

Hunan

Jiangsu

Kunshan Aoyuan 185,000

Chongqing Aoyuan City of Health 71,100 Chongqing Aoyuan Jinyu 27,500 Chongqing Aoyuan The Metropolis 271,100 Chongqing Aoyuan Shuiyunjian 125,100 Chongqing Aoyuan City Plaza 313,500

Total 808,300

Jiangxi Aoyuan 513,500

Shenyang Aoyuan The Metropolis 1,207,600

Shenyang Aoyuan Convention Plaza 776,800

Total 1,984,400

Hunan

Zhuzhou Aoyuan Edinburgh 84,200 Zhuzhou Aoyuan Shennong Health City 393,300 Zhuzhou Aoyuan Plaza 429,700

Total 907,200

Guangdong (ex-Guangzhou)

Guangzhou Nanguo Aoyuan 149,500 Guangzhou Aoyuan 22,200 Guangzhou Panyu Aoyuan 52,500 Guangzhou Guo Ao Investment Development Centre

51,500

Guangzhou Nansha Aoyuan 48,000 Guangzhou Aoyuan Hai Jing Cheng 74,200 Guangzhou Aoyuan Plaza 158,000 Guangzhou Aoyuan Health Plaza 48,300

Guangzhou Aoyuan Beyond Era 133,800 Guangzhou Aoyuan International Center 248,100 Guangzhou Aoyuan Spring Garden 124,200 Guangzhou Aoyuan City Plaza 251,800 Guangzhou Aoyuan Kangwei Plaza 379,400 Guangzhou Luogang Aoyuan Plaza 300,000

Total 2,041,500

Fogang Aoyuan 1,272,400 Qingyuan Aoyuan 149,800 Jiangmen Aoyuan 11,800 Jiangmen Aoyuan Waitan 181,500 Jiangmen Aoyuan Yicheng International Plaza 207,300 Zhongshan Aoyuan 402,000 Zhongshan Aoyuan Jinyu 162,800 Nanhai Aoyuan 182,400 Foshan Aoyuan Central Parkview 285,600

Yangjiang Aoyuan Central Parkview 362,100 Meizhou Aoyuan Peninsula View 259,500

Total 3,477,200

Yulin Aoyuan 398,400 Yulin Aoyuan City of Health 867,100

Total 1,265,500

Average land cost: RMB1,090 per sqm

Average cost of land bank by region

Land bank and project overview

As of 31 Dec 2013, we had 39 projects with a total land bank of 11.18m sqm of GFA located in Guangdong, Chongqing, Shenyang, Hunan, Jiangsu, Guangxi and Jiangxi etc. The current reserve will sufficient to meet the development needs of the Group in the next five to seven years.

Project name GFA (sqm) Project name GFA (sqm)

Guangzhou

18%

Guangdong

(ex-Guangzhou)

31% Liaoning

18%

Chongqing

7%

Jiangsu

2%

Guangxi

11%

Hunan

8%

Jiangxi

5%

Page 23: 2013 Annual Results Presentation - TodayIR · cash flow generation and ensure capital adequacy and flexibility Implementation of “Aoyuan standardized project development strategy”

23

(as at 31 Dec 2013)

Land bank and project overview (cont.)

Total land bank: 11.18m sqm

(Breakdown by type)

Total land bank: 11.18m sqm

(Breakdown by status)

(as at 31 Dec 2013)

Residential apartments

68%

Commercial 24%

Investment properties

4%

Low density residential

1%

Auxiliary facilities

3%

Held for future

development

55% Under

development 34%

Completed and held for

sale

6%

Completed and sold, to be delivered/

auxiliary facilities 5%

Page 24: 2013 Annual Results Presentation - TodayIR · cash flow generation and ensure capital adequacy and flexibility Implementation of “Aoyuan standardized project development strategy”

24

High quality projects successfully acquired in 2013

Projects and land bank Prudent land bank acquisition strategy

With a prudent and conservative land acquisition philosophy, Aoyuan has a track record of capturing the attractive expansion opportunities

In 2013, Aoyuan continued to acquire high quality projects at attractive costs in Guangzhou, Chongqing, Foshan, Jiangmen and Yangjiang, laying a good foundation for future growth

Maintain the strategy of “rapid development and rapid sales” to achieve the goal of rapid growth

Continue to pursue the strategy of “developing commercial and residential properties in parallel” and to develop products that meet market needs

Implement the "quick and balanced growth" model to support Aoyuan's expansion

No. of projects

17 24 32 39

7.8 8.6

10.0

11.2

0

5

10

15

2010 2011 2012 2013

(m s

qm

)

Land bank expansion with high quality projects

Note: 1 R = Residential; C = Commercial

Name City Type Approach Acquired

Date Status %

interest

GFA

(sqm)

Consideration

(RMBm)

Avg cost

(RMB/sqm)

1 Guangzhou Aoyuan Kangwei Plaza Zengcheng,

Guangzhou C Equity acquisition Jan 2013 Dec 2013 launched for sale 51% 379,409 601 1,584

2 Chongqing Aoyuan Shuiyunjian Nanan,

Chongqing C, R Land auction Feb 2013 Nov 2013 launched for sale 100% 125,186 435 3,475

3 Foshan Aoyuan Central Parkview Nanhai,

Foshan C, R Land auction Feb 2013 Mar 2014 open for sale 100% 182,705 727 3,979

4 Jiangmen Aoyuan Yicheng International Plaza

Jiangmen C, R Equity acquisition Mar 2013 Oct 2013 launched for sale 51% 207,272 198 955

5 Yangjiang Aoyuan Central Parkview Jiangcheng,

Yangjiang C, R Equity acquisition Jul 2013 Oct 2014 open for sale 80% 362,053 266 735

6 Chongqing Aoyuan City Plaza Nanan,

Chongqing C, R Land auction Aug 2013 June 2014 open for sale 100% 313,525 970 3,094

7 Guangzhou Luogang Aoyuan Plaza Luogang,

Guangzhou C, R Land auction Aug 2013 June 2014 open for sale 60% 300,019 1,306 4,353

8 Meizhou Aoyuan Peninsula View Meizhou C, R Land auction Aug 2013 July 2014 open for sale 100% 259,500 175 674

Total: 2,129,669 4,678 2,197

Page 25: 2013 Annual Results Presentation - TodayIR · cash flow generation and ensure capital adequacy and flexibility Implementation of “Aoyuan standardized project development strategy”

4. Appendix

25

Page 26: 2013 Annual Results Presentation - TodayIR · cash flow generation and ensure capital adequacy and flexibility Implementation of “Aoyuan standardized project development strategy”

26

Company structure

Commercial operations

Operations management

Property investment

Property development

Guo Zi Wen/Guo Zi Ning1

Approx. 47%

Cathay Capital Group

Approx. 11%

Public

Approx. 42%

Note:

1 Deemed interest

Page 27: 2013 Annual Results Presentation - TodayIR · cash flow generation and ensure capital adequacy and flexibility Implementation of “Aoyuan standardized project development strategy”

27

1996-2002 Inception stage

2003-2006 Growth stage

2007-2011 Expansion stage

2009: Shenyang Aoyuan The Metropolis 1 project, with GFA of over 2m sqm, was signed, which marked the beginning of large-scale integrated projects development by Aoyuan

2011: Took advantage of the growth in the Yangtze River Delta Region and successfully expanded into the Jiangsu market

2007: China Aoyuan Property Group Limited (Stock code: 3883HK) was listed on the main board of SEHK

2007: Geographical reach extended beyond Guangdong Province by entering into Guangxi, Shenyang and Chongqing, paving the way for Aoyuan to become a leading regional developer

2006: Commencement of development of Jiangxi Aoyuan

2006: Commencement of development of Nanguo Aoyuan

2010-2011: Obtained a HK$990m loan from a consortium of Nanyang Commercial Bank and Bank of China (Macao Branch) for general working capital purpose

2006: Cathay Capital Group invested in Aoyuan as a pre-IPO strategic investor

2012-Now New Growth stage

2013: Successful acquired new land parcels in Guangdong and Chongqing , and established operation in Yangjiang and Meizhou in Guangdong

2012- 2013: Aoyuan issued its debut USD Bond in late 2012 and subsequently tapped the same bond in early 2013, raising an aggregate of USD$225m

2013: Raised full year contracted sales target from RMB 7.5bn to 8.5bn, and surpassed RMB10bn by Dec 2013

2012: Surpassed full year contract sales target of RMB 5.0bn

2012: Successfully sold Beijing project for HK$3.2bn, reaping a substantial one-off gain of HK$1.1bn

2014: Successfully issued US$300m senior notes, with oversubscription of 4.2x, establishing recognition from international capital markets

Corporate milestones

Through successful replication of previous projects, Aoyuan has grown from a leading regional developer in Guangdong to a leading player with established presences in five major economic regions including Pearl River Delta, Yangtze River Delta, Bohai Rim, Beibuwan, and Central & Western China

Aoyuan instituted a clear strategy of “a leader in the real estate complex and an operator of the urban development in the future”

1997: Aoyuan’s first project Jinye Villa Garden achieved successful sales

1997: Zi Ye was established in PRC, which marked the beginning of Aoyuan Group Chairman Guo Zi Wen introduced the "Sports+Property" development concept, and subsequently the “exercise starts from home" concept which became hugely popular

1999-2001: Successful sales of Guangzhou Aoyuan and Panyu Aoyuan

Source: Company information Note: 1. The project was subsequently divided into two projects, Shenyang Aoyuan The Metropolis and Shenyang Aoyuan Convention Plaza

Page 28: 2013 Annual Results Presentation - TodayIR · cash flow generation and ensure capital adequacy and flexibility Implementation of “Aoyuan standardized project development strategy”

28

Board of Directors

Outstanding management team

Experienced management with excellent track record in the China real estate market, stable and prudent operating principles, excellent compliance in corporate governance and high transparency to ensure

sustainable development of the Company

4 Executive Directors, 1 Non-executive Director, and 3 Independent Non-executive Directors

Audit committee, Remuneration committee, and Nomination committee

Xin Zhu

Executive Director, Executive Vice

President

Yang Zhong

Executive Director, COO

Guo Zi Ning

Vice Chairman, CEO

Guo Zi Wen

Chairman, Group Founder

Paul Steven Wolansky

Non-executive Director

Cheung Kwok Keung

Independent Non-executive Director

Tsui King Fai

Independent Non-executive Director

Hu Jiang

Independent Non-executive Director

Senior Management

Commercial properties

Capital markets

and investor relations

Funds management

Financial

management and control

Operations management

Engineering, design and R&D

Investment management

Brand and sales marketing

Miao Si Hua

Assistant to President

Jacky Chan

Vice President

Xin Zhu

Executive Director, Executive Vice

President

Zhong Ping

CFO

Yang Zhong

Executive Director, COO

Lv Zhen Qiu

Assistant to President

Guo Zi Ning

Vice Chairman, CEO

Wang Shu Yu

Vice President

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Company HQ Aoyuan Mansion, No.108, Huangpu Avenue

West, Tianhe, Guangzhou

HK office Unit 1901-02, 19/F, One Peking,

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

Jacky Chan

Vice President – Head of Corporate Finance and Investor Relations

HK: (852) 2180 9599

China: (86 20) 3868 6666

Email: [email protected]

Investor Relations Contact

Joyce Ho

Company Secretary

HK: (852) 2180 6979

China: (86 20) 3868 6666

Email: [email protected]

Hanry Gao

Assistant Investor Relations Manager

HK: (852) 2180 9599

China: (86 20) 3868 6666

Email: [email protected]

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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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Thank you!

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