2016 Interim Results Presentation │ Media Briefing

30 August 2016

Contents

1. Financial Summary

2. Business Review

3. Outlook for 2H2016

Financial Summary

• For the first half of 2016, the Group’s turnover was approximately HK$9,992 million,

representing an increase of 33.4% as compared with the corresponding period of last

year;

• Gross profit was approximately HK$1,719 million; Overall gross profit margin was around

17.2%;

• Profit attributable to shareholders was approximately HK$59 million. Basic earnings per

share was HK1.60 cents.

3

1H2016 1H2015

Turnover (HK$ million) 9,992 7,489

Gross Profit (HK$ million) 1,719 1,273

Overall Gross Profit Margin 17.2% 17.0%

Profit Attributable to Shareholders (HK$ million) 59 103

Basic EPS (HK cents) 1.60 2.81

Consolidated Income

• For the first half of 2016, the recognized sales and the recognized area sold reached approximately RMB8.16 billion and 796,200 sq.m., respectively. The Recognized average selling price was approximately RMB10,247 per sq.m..

Note: The calculation of Recognized Average Selling Price includes the selling of parking lots.

1H2016 1H2015

Recognized Sales (RMB billion) 8.16 5.61

Recognized Area Sold (‘000 sq.m.) 796 535

Recognized Average Selling Price (RMB/sq.m.) 10,247 10,487

36%

34%

18%

12% Yangtze River Delta

Pearl River Delta

Southwestern

Others

Turnover from Property Development (By Region)

1H2016 1.9

1.1 0.8

1.8

2.9 2.7

1.5 1.0

0.0

1.0

2.0

3.0

4.0

Yangtze RiverDelta

Pearl River Delta Southwestern Others

1H2015 1H2016

Turnover from Property Development (YoY Comparison by Region)

(RMB billion)

Recognized Sales – Property Development

4

29.6

134.6

25.6

129.6

25.4

133.3

0

20

40

60

80

100

120

140

160

Shareholders' equity Total assets

30/6/2015 31/12/2015 30/6/2016

• As of 30 June 2016, total assets grew by approximately 2.9% to HK$133.3 billion, from approximately HK$129.6 billion as at the end of 2015. Cash was approximately HK$21.4 billion, increasing 16.9% compared to the beginning of the year. Shareholders’ Equity reached approximately HK$25.4 billion, and the net asset value per share was approximately HK$6.93, both remaining flat comparing as of 31 Dec 2015.

Shareholders’ Equity and Total Assets 30 Jun. 2016

31 Dec. 2015

Change (%)

Total Assets (HK$ billion) 133.3 129.6 2.9%

--- including: Cash (HK$ billion) 21.4 18.3 16.9%

Total Liabilities (HK$ billion) 104.4 100.2 4.2%

--- including: Borrowings from Financial Institutions and Bonds

(HK$ billion) 55.7 53.2 4.7%

Shareholders’ Equity (HK$ billion) 25.4 25.6 -0.8%

Net Asset Value per Share

(HK$) 6.93 6.98 -0.7%

(HK$ billion)

5

Assets and Liabilities

Business Review

Business Review

8

1. Management Policy

“Improve management structure and enhance financial performance”

Through effective management supervision, clear responsibility delegation, the

Group has implemented suitable solutions to key problems and strategically

positioned the development blue print

“Control cost and prevent risk”

Real-time monitoring on the development progress of each project; Formulated

balanced investment proposal with stringent IRR threshold and focused

investment strategy

“Broaden financing channels and reduce funding cost”

Controlled the total debt level and replaced high-cost debt with lower-cost debt

• In the first half of 2016, the Group adhered to “Inventory Clearance, Investment Control, Risk Prevention, and Efficacy Enhancement in an Innovative Way to Boost Sustainable Growth“ as the core strategy in undertaking its key objectives:

Business Review

9

2. Branding & Marketing

“Focused on sales and cash collections to deliver a solid performance”

Achieved 17% and 10% yoy growth on contracted sales and contracted

area sold; sell-through rate increased by 3% yoy

“Provided differentiated guidance and focused on targeted area”

Performed region-by-region inventory analysis and established inventory

clearance action team to optimize product and propel sales

“Improved brand image and escalated brand position”

Successfully marketed properties under the annual theme of “Poly Brings

You Joyful Living” in 2016 and achieved satisfying sales performance

• In the first half of 2016, the Group adhered to “Inventory Clearance, Investment Control, Risk Prevention, and Efficacy Enhancement in an Innovative Way to Boost Sustainable Growth“ as the core strategy in undertaking its key objectives:

2.7

1.7

3.8

2.6 3.2 3.0

-1.0

1.0

3.0

5.0

Jan Feb Mar Apr May Jun

Contracted Sales

10

• During the period,

contracted area sold

amounted to 1.44 million

sq.m. and the contracted

sales amounted to

approximately RMB17.0

billion, accounting for

approximately 61% of the

annual target of RMB28

billion.

• A total of 58 projects

were put for sale with 4

debut launches.

Contracted Sales and Contracted Area Sold

(million sq.m.)

1H2012 1H2013 1H2014 1H2015 1H2016

Contracted Area Sold 1.10 1.40 1.20 1.31 1.44

Contracted Sales 10.1 14.6 12.3 14.5 17.0

1.10 1.40

1.20 1.31 1.44

10.1

14.6 12.3 14.5 17.0

0

6

12

18

0.00

0.50

1.00

1.50

2.00

(RMB billion)

Contracted Sales By Month

(RMB billion)

Guangzhou Poly Jade Hills

Location :

North Jianshe Road, Huadu Area, Guangzhou

Proposed usage

: Residential & Commercial

Weihai Poly Maple Valley

Location : Huancui Area of Weihai

Proposed usage

: Mainly highrises

Shanghai Poly Greenland Plaza

Location : Dalian Road, Inner Circle of Yangpu Area

Proposed usage

: Commercial

Guangzhou Poly Gratified West Bay

Location : South of Liwan District, Guangzhou

Proposed usage

: Residential & Commercial

Debuted in February, 2016 Debuted in March, 2016

Debuted in June, 2016

11

Newly Launched Projects

Yangtze River Delta

RMB26,200 / sq.m.

Pearl River Delta RMB13,300 /

sq.m.

Southwestern RMB6,500 /

sq.m.

Others RMB9,800 /

sq.m. 23%

21%

22%

34%

OtherRegions

SouthwesternRegion

Pearl RiverDelta Region

Yangtze RiverDelta Region

0% 10% 20% 30% 40%

• During the period, the Group actively launched marketing campaigns under the annual

theme of “Poly Brings You Joyful Living”. By adopting proactive sales strategy, the Group

seized the positive market sentiment, launched new projects, and at the same time

accelerated inventory cycle, successfully surpassing the sales target set for 1H2016.

• During the period, the top five cities in terms of contracted sales were Shanghai, Guiyang,

Guangzhou, Suzhou and Wuhan.

Contracted Sales in 1H2016 (By Region)

Average Selling Price in 1H2016 (By Region)

RMB5.8 billion

RMB3.8 billion

RMB3.5 billion

RMB3.9 billion

12

Contracted Sales – By Region

• During the period, residential units accounted for approximately 78% of the Group’s total

contracted sales; of which residential units below 90 sq.m. were accounted for 11%,

residential units from 90 to 144 sq.m. were accounted for 62% (small-to-medium sized

residential units accounted for 73% in total); and residential units that are larger than 144

sq.m. were accounted for 27%.

78%

7%

5%

7%

3%

Residentials

Villa

Office

Commercials

Car Parks

Contracted Sales in 1H2016 (By Product Mix)

Contracted Sales in 1H2016 (By the Size of Residential Units)

11%

62%

27% <90 sq.m.

90-144 sq.m.

>144 sq.m.

13

Contracted Sales – By Product

13

• In the first half of 2016, 12 projects commenced construction with an total GFA of

approximately 1,879,000 sq.m..

• During the period, the completed gross floor area amounted to 682,000 sq.m..

Projects with Newly Commenced Construction in 1H2016 (By Region)

Yangtze River Delta

Pearl River Delta

South-western

Others

Newly Commenced Construction

• Suzhou Poly West Bank Villa • Ningbo Poly Wonderland

• Wuhan Poly City • Harbin Poly City • Jinan Poly Center • Jinan Poly Elegant Garden • Weihai Poly Maple Valley

• Guangzhou Poly Gratified West Bay

• Guiyang Poly Phoenix Bay • Zunyi Poly Metropolis of

Future • Nanning Poly Town • Kunming Poly One Family

One World

• During the period, the Group obtained 1 land parcel which was located in Kunming, with a

total gross floor area of approximately 652,000 sq.m..

*Note: As at the end of July, 2016

Kunming Poly One Family One World

Usage : Residential, Commercial and Office

Total Planned GFA

(‘000 sq.m.) : 652

Interest Attributable to the Group

: 73%

Current Status* : Under Construction

15

New Land Reserves

16%

14%

49%

21%

Yangtze River Delta

Pearl River Delta

Southwestern

Others

16%

16%

44%

24%

• As at the end of June 2016, the total land bank was approximately 20.94 million sq.m., with

approximately 9.45 million sq.m. under development and approximately 11.49 million sq.m.

reserved for future development.

As of 30 Jun 2015

Land Bank under Development And Reserved for Future Development

14.47 11.49

8.74

9.45

0.00

5.00

10.00

15.00

20.00

25.00

June 2015 June 2016

Land Under Construction Land Reserves

As of 30 Jun 2016

Land Bank Portfolio (By Region)

(million sq. m.)

16

Land Bank Portfolio

Outlook for 2H2016

• As at the end of July 2016, the Group’s newly commenced construction area was 2,346,000

sq.m., representing 78% of the Group’s full-year target.

• Contracted sales reached approximately RMB 19.6 billion, and the contracted area sold

aggregated approximately 1,641,000 sq.m., representing 70% and 64% of the Group’s full-

year targets, respectively.

28.0

19.6

0

5

10

15

20

25

30

Target in 2016 Jan.-Jul. 2016

Recent and Target Contracted Sales Recent and Target Contracted GFA

2.56

1.64

0

0.5

1

1.5

2

2.5

3

Target in 2016 Jan.-Jul. 2016

3.0

2.3

0

1

2

3

4

5

Target in 2016 Jan.-Jul. 2016

Newly Commenced Construction

78%

70%

64%

18

（RMB billion） （million sq.m.） （million sq.m.）

Targets & Completion Status in 2016

• During the second half of 2016, 4 new projects and 35 continuing projects are expected to be

launched, with a total saleable GFA of approximately 1.38 million sq.m..

Sales Pipeline of New Projects in 2H2016

18%

7%

42%

33% Yangtze River Delta

Pearl River Delta

Southwestern

Others

2H2016

Saleable GFA in 2H2016 (By Region)

Southwestern

Others

• Kunming Poly One Family One World

• Nanning Poly Dream River

• Wuhan Poly Up Town

• Hong Kong Kai Tak Project

19

Saleable Resources and Sales Pipeline in 2H2016

2H 2016 Key Missions

• Looking into the second half of 2016, inventory

clearance remains to be the primary objective of the

property market considering the low speed growth of

economy and severe conditions of oversupply.

• Maintaining a stable market condition will be the

Central government’s objective on the property

market. Local governments will have more flexibilities

on regulations according to their respective market

situations. In particular, top-tier cities are expected to

adapt a cautious price monitoring and credit

tightening approach.

• In the second half of 2016, the Group will continue to

adhere to “Inventory Clearance, Investment Control,

Risk Prevention, and Efficacy Enhancement in an

Innovative Way to Boost Sustainable Growth“ as the

key strategy, aiming to achieve the annual growth

target and enhance operational efficiency.

Accelerate inventory clearance and boost sales

Control investments to ensure stable operational cash flow

Endeavour to reduce gearing and reinforce risk management

Improve management system to achieve higher operational efficiency

Rejuvenate business model through innovative ways

1

2

3

5

4

20

Thank you!