2014 Annual Results Announcement 25 March 2015 ABOUT YUZHOU - - PowerPoint PPT Presentation

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25 March 2015

2014 Annual Results Announcement

SLIDE 2

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ABOUT YUZHOU PROPERTIES (01628. HK)

KEY FOCUS CORE STRENGTH LAND BANK

 A leading property developer in West Strait Economic Zone with footprints in Xiamen, Fuzhou and Quanzhou, the Top 3 largest cities in Fujian Province  Successful expansion into Hong Kong, Shanghai, Nanjing, Hefei, Tianjin, Longyan, Bengbu and Zhangzhou  Well-established market leader in Xiamen with nearly 1.82 million sq.m. of saleable land bank as at December 2014  Defensive land cost through smart land acquisitions : weighted average unit cost of land bank is 2,232 RMB/sq.m., accounting for 22% of FY2014 contracted ASP  Sustainable high profit margin and low gearing compared to peers  Total saleable GFA * as at December 2014 : over 8.70million sq.m.  49% in West Strait Economic Zone, 46% in Yangtze River Delta and 5% in Pan-Bohai Rim  Acquired approx. 2.66m sq.m. of saleable GFA in 2013 and 1.01m sq.m. in 2014

SLIDE 3

ABOUT PRESENTERS

3

• Mr. LAM, Lung On

Founder, Chairman and Executive Director

• Mr. Steve CHIU

Vice President Chief Financial Officer and Company Secretary

• Ms. Venus Chiu

Head of Corporate Finance & Investor Relations

• Mr. CAI Minghui

Excecutive President

SLIDE 4

TABLE OF CONTENTS

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• II. BUSINESS REVIEW
• III. FUTURE PERSPECTIVES
• I. FINANCIAL HIGHLIGHTS
• IV. APPENDIX

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FINANCIAL HIGHLIGHTS

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HIGHLIGHTS OF 2014 ANNUAL RESULTS

FINANCIAL HIGHLIGHTS FOR THE 12 MONTHS ENDED 31 DECEMBER 2014

Compared with FY2013 Compared with the end of Dec 2013



Recognized revenue: RMB7,837 million



Gross profit: RMB2,845 million



Core profit attributable to owners of parent: RMB1,025 million (+RMB366 million

• r +5%)

(+RMB526 million or +23%) (-RMB65 million

• r -6%)

(+RMB1,918 million or +26%) (+RMB5,901 milliom or +152%) (-18.13 percentage points)



Total equity: RMB9,390 million



Cash on hand: RMB9,785 million



Net gearing ratio: 59.85%

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FY2014 KEY PROFIT&LOSS ITEMS

RMB million

Revenue* Gross Profit Profit attributable to shareholder Core Profit

* After 5.55% Business Taxes

RMB million RMB million RMB million

431 331 1,416

1,112 1,988 1,429 1,543 2,319 2,845 FY2012 FY2013 FY2014 2H 1H

955 1,032 3,924

2,939 6,439 3,913 3,894 7,471 7,837 FY2012 FY2013 FY2014 2H 1H

105 151 559

621 1,320 695 726 1,471 1,254 FY2012 FY2013 FY2014 2H 1H

161 95 486

649 995 539 810 1,090 1,025 FY2012 FY2013 FY2014 2H 1H

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(RMB’000) FY2014 FY2013 Change Hotel operation income 16,183 1,390 +1,064% Property management fees 88,245 71,220 +24% Rental income 51,544 49,163 +5% Sales of properties 7,680,661 7,348,835 +3% Total 7,836,633 7,470,608 +5%

FY2014 REVENUE BREAKDOWN

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98.0% 98.3% 0.7% 0.7% 1.1% 1.0% 0.2% 0.0% 90% 92% 94% 96% 98% 100% FY2014 FY2013 Sales of properties Rental income Property management fees Hotel operation income 100%=RMB 7,471 million 100%=RMB 7,837 million

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ANALYSIS ON FY2014 RECOGNIZED PROPERTY SALES

Recognized Property Sales* Recognized GFA & ASP

RMB million

Recognized GFA by City

%

* After 5.55% Business Taxes

GFA (sq.m.) ASP (RMB/sq.m.)

Recognized Sales by City

%

898 975 3,834

2,886 6,374 3,847 3,784 7,349 7,681 FY2012 FY2013 FY2014 2H 1H 70 3 6 1 18 2 Xiamen Fuzhou Quanzhou Shanghai Hefei Tianjin 55 2 11 1 29 3 Xiamen Fuzhou Quanzhou Shanghai Hefei Tianjin 501,618 794,730 735,881 7,544 9,247 10,437 3,000 6,000 9,000 12,000 200,000 400,000 600,000 800,000 1,000,000 FY2012 FY2013 FY2014

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FY2014 KEY BALANCE SHEET ITEMS

10

RMB million RMB million

Cash Position Total Debt Total Asset Total Equity

RMB million RMB million

3,729 3,884 9,785 FY2012 FY2013 FY2014 2,479 1,984 3,805 5,030 7,726 11,599 7,509 9,710 15,404 FY2012 FY2013 FY2014 Long-term Short-term 22,278 27,362 39,075 FY2012 FY2013 FY2014 6,001 7,472 9,390 FY2012 FY2013 FY2014

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49 11 40 US$ HK$ RMB

FY2014 STABLE FINANCIAL POSITION

%

Net Gearing Ratio Debt Profile by Currency Debt Profile by Maturity Debt Profile by Type

% % %

Total Debt = RMB15,404 million

17 42 64 62 78 60 20 40 60 80 100 2009 2010 2011 2012 2013 2014 25 12 62 1 Within 1 year 1 to 2 year 2 to 5 year Over 5 year 66 34 Fixed interest rate Floating interest rate 11

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BUSINESS REVIEW

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18.6 24.7 5.6 35.3 27.4 28.7 13.4 14.4 10 20 30 40 50

Xiamen Fuzhou Quanzhou Longyan Shanghai Hefei Bengbu Tianjin

10.7 15.3 17.7 11.8 16.6 17.0 17.3 22.4 0.0 10.0 20.0 30.0

FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014

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SNAPSHOT OF LAND BANK

8.70 million sq.m. as at Dec 2014*

Unit Cost of Land Bank as % FY2014 Contracted ASP

% % 22.4

Unit Cost of Land Bank as % Contracted ASP

16.1

Tianjin Hefei Shanghai Fuzhou Longyan Quanzhou Xiamen zhangzhou

West Strait Econimic Zone

City Saleable GFA (‘000 sq.m.)

• No. of

projects Average Land Cost （RMB/sq.m.） % of saleable GFA Bohai Rim Region Tianjin 431 2 1,061 5 Yangtze River Delta Shanghai 637 6 3,378 7 Nanjing 113 1 16,657 1 Hefei 2,599 6 2,002 30 Bengbu 668 1 660 8 West Strait Econimic Zone Xiamen 1,824 23 2,972 21 Fuzhou 603 3 3,115 7 Quanzhou 1,256 3 379 14 Longyan 312 1 1,921 4 Zhangzhou 255 1 2,400 3 Offshore Hong Kong 2 1 135,140 TOTAL 8,701 48 2,232 100

Bengbu Nanjing Hong Kong

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MARKET LEADERSHIP IN XIAMEN, FUJIAN PROVINCE

Million sq.m.

Largest Land Bank* in Xiamen (As at Dec 2014)

%

Residential Market Share in Xiamen#

1 6 3 4 5 Quanzhou Fuzhou Xiamen Selected projects in Xiamen 2 Yuzhou Plaza Yuzhou Riverside City Town 5 1 Yuzhou World Trade Center Yuzhou Central Coast 8 Xiang’an New Project Under development Completed Held for development 8 2 3 Yuzhou Shoreline Yuzhou Cloud Top Int’l 4 6 7 Yuzhou Lucca Town

1.82 1.53 1.10 0.65 0.53 0.45 0.39 0.38 0.34 0.26

• 0.40

0.80 1.20 1.60 2.00

Yuzhou Vanke Shimao BCDC CR Land SCE Longfor MingfaPowerlong COLI

7.1% 9.1% 9.5% 8.0% 9.3% 10.0% 9.4% 0% 5% 10% 15% 2008 2009 2010 2011 2012 2013 2014

* Source : Database from CRIC, as at 31 Dec 2014 Xiamen Municipal Land, Resources & Housing Administrative Bureau # Note: In terms of GFA sold Longyan Zhangzhou 9 9 Jimei New Project 7

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3,799 5,699 5,310 2,730 5,260 6,691 6,529 10,959 12,001 FY2012 FY2013 FY2014 2H 1H 15

FY2014 CONTRACTED SALES

Contracted Sales

(FY2012 vs. FY2013vs. FY2014)

RMB million

# Project City Interest in Project Contracted Sales As of Total Contracted GFA Contracted ASP % (RMB mn) (%) (sq.m.) (RMB/sq.m.) 1 Yuzhou Golf Xiamen 100% 196 2% 12,744 15,400 2 Yuzhou Shoreline Xiamen 100% 1,151 10% 58,236 19,764 3 Yuzhou Central Coast Phase I (incl. car parks) Xiamen 80% 208 2% 22,300 9,334 4 Yuzhou Central Coast Phase II Xiamen 80% 201 2% 19,022 10,556 5 Yuzhou Central Coast Phase III Xiamen 80% 1,300 11% 68,211 19,063 6 Yuzhou Riverside City Town Xiamen 100% 806 7% 71,628 11,255 7 Yuzhou Cloud Top International Xiamen 100% 815 7% 22,710 35,901 8 Haicang Dream Town Xiamen 20% 1,416 12% 94,282 15,023 9 Yuzhou Gushan No.One Fuzhou 60% 207 2% 10,328 20,061 10 Yuzhou Oriental Venice Phase II Fuzhou 45% 23 0% 1,252 18,347 11 Yuzhou Oriental Venice Phase III Fuzhou 45% 301 3% 30,436 9,877 12 Yuzhou City Plaza Phase I Quanzhou 100% 587 5% 86,822 6,762 13 Yuzhou Castle above City Longyan 100% 399 3% 73,215 5,445 14 Others Xiamen 100% 92 1% 18,551 4,949 West Strait Economic Zone 7,702 64% 589,736 13,061 15 Land Dream Shanghai 100% 62 1% 7,074 8,733 16 Yuzhou City Plaza Shanghai 100% 58 0% 5,303 11,024 17 Yuzhou Commercial Plaza Shanghai 100% 87 1% 4,407 19,648 18 Yuzhou Skyline Phase I &II (incl. retail shops) Hefei 100% 72 1% 6,152 11,643 19 Yuzhou Skyline Phase III Hefei 100% 1,143 10% 155,404 7,354 20 Yuzhou Jade lakeshire Hefei 100% 854 7% 116,642 7,325 21 Yuzhou Central Plaza Hefei 65% 1,083 9% 177,009 6,116 22 Yuzhou Town Hefei 100% 206 2% 23,406 8,785 23 Yuzhou Royal Seal Hefei 49% 161 1% 25,485 6,299 24 Yuzhou Prince lakeshire Bengbu 100% 222 2% 45,078 4,932 Yangtze River Delta 3,947 33% 565,959 6,974 25 Yuzhou Palace Country Tianjin 100% 275 2% 39,083 7,027 26 Yuzhou Royal Lakeshire Tianjin 100% 77 1% 8,781 8,781 Bohai Rim Region 352 3% 47,864 7,348 Total 12,001 1,203,559 9,972

FY2012 FY2013 FY2014 # of Cities 6 7 8 # of Projects 17 20 26 ASP (RMB/sq.m.) 8,951 10,499 9,972

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MONTHLY CONTRACTED SALES IN 2013 vs. 2014

Monthly Contracted Sales ( Jan 2013 – Dec 2014)

797 716 2,410 492 599 685 1,263 917 890 822 577 791 819 678 704 709 879 1,521 536 606 1,036 1,417 1,113 1,983 8,432 8,687 11,501 10,531 8,576 13,799 9,815 13,407 12,655 9,867 9,302 10,094 13,417 14,642 11,108 9,337 9,488 9,263 8,988 9,486 10,458 10,665 9,604 8,671 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 500 1,000 1,500 2,000 2,500 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Contracted Sales in 2013 Contracted Sales in 2014 ASP in 2013 ASP in 2014

ASP (RMB/sq.m.) Contracted Sales (RMB’million)

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61 73 64 73 69 36 33 52 76 50 77 76 67 65 55 51 37 63 20 40 60 80 Shoreline Central Coast Riverside City Town Cloud Top Int'l Deam Town Other Xiamen projects Fuzhou projects City Plaza Castle above City Shanghai projects Skyline Jade Lakeshire Cental Plaza Other Hefei projects Prince Lakeshire Palace Country Royal Lakeshire Average

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FY2014 SELL-THROUGH RATE REACHED 63%

The Average Sell-through Rate is 63%

%

City

Xiamen Xiamen Xiamen Xiamen Xiamen Xiamen Fuzhou Quanzhou Longyan Shanghai Hefei Hefei Hefei Hefei Bengbu Tianjin Tianjin Total

GFA Launched (sq.m.) 95,150 150,911 112,375 31,194 136,723 87,093 125,823 166,966 95,971 33,327 210,760 153,307 263,454 75,382 82,158 77,217 23,604 1,921,415 GFA Sold (sq.m.) 58,236 109,532 71,628 22,710 94,282 31,295 42,016 86,822 73,215 16,785 161,555 116,642 177,009 48,891 45,078 39,083 8,781 1,203,559

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LAND REPLENISHMENT IN 2014

Date of Acquisition City Project Type Methodology Site Area (sq.m.) Saleable GFA (sq.m.) Total Land Cost (RMB mn) Average Land Cost (RMB/sq.m.) Estimated ASP (RMB/sq.m.) 2014.01 Quanzhou Resi/Retail Public Auction 61,481 110,666 85 769 7,000+ 2014.02 Fuzhou Resi/Retail Plot Ratio Increasing 367,173 193,754 650 3,357 11,000+ 2014.05 Hefei Resi/Com Public Auction 36,387 109,160 426 3,900 12,000+ 2014.08 Hong Kong Resi/Retail M&A 278 2,214 299 135,140 300,000 2014.11 Hefei Resi/Retail Public Auction 97,467 341,135 1,462 4,286 12,000+ 2014.11 Nanjing Resi/Retail Public Auction 41,494 112,865 1,880 16,657 28,000+ 2014.12 Fuzhou Resi/Retail Public Auction 54,507 136,268 580 4,256 11,000+ Total 328,001 1,006,062 5,382 5,350 N/A

Quanzhou Yuzhou City Plaza Phase III Quanzhou City Hall

City Plaza Phase III City Plaza Phase I City Plaza Phase I

Fuzhou Oriental Venice Phase III

Yuzhou Central Plaza

Hefei City Center

Yuzhou Skyline Yuzhou Jade Lakeshire Yuzhou Royal Seal Yuzhou Shushan New Project (2014.05)

Hefei 2 New Projects

Fuzhou City Center

Yuzhou Oriental Venice Phase III (2014.02)

Hong Kong New Project

Yuzhou Hong Kong New Project (2014.08)

Nanjing New Project

Yuzhou Nanjing New Project (2014.11) Yuzhou Xinzhan New Project (2014.11)

Yuzhou Gushan

• No. One

Yuzhou Fuzhou New Project (2014.12)

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LAND REPLENISHMENT IN 2015

Date of Acquisition City Project Type Methodology Site Area(sq.m.) Saleable GFA (sq.m.) Total Land Cost (RMB mn) Average Land Cost (RMB/sq.m.) Estimated ASP (RMB/sq.m.) January 2015 Xiamen Resi/Com Bidding and Auction 70,109 305,160 2,740 8,979 20,000+ Xiamen Jimei Project

Xiamen Island

Xiamen Airport Xiamen Jimei Project(2015.01) Yuzhou Central Coast Yuzhou University City Yuzhou Golf Xiamen Metro Line 1 ( Planning)

Xiamen Jimei Project Jimei CBD Xiamen Garden Show Park Jimei School Village Residential Area Residential Area

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ABILITY TO OBTAIN SUSTAINABLE PROJECT FINANCE

The weighted average interest rate of onshore and offshore fundings is 8.34% Lending Banks City Usefull Credit Facilities Used Facilities Remaining Facilities (as of Dec,2014, RMB mn) (as of Dec,2014, RMB mn) (as of Dec,2014, RMB mn) CCB Xiamen 1,246 1,058 188 CCB Longyan 500 230 270 CCB Hefei 395 390 5 ICBC Xiamen 1,502 2 1,500 ICBC Tianjin 183 150 32 BOC Xiamen 538 538

• BOC

Shanghai 470 450 20 BOC Hefei 300 300

• BOC

Longyan 250 250

• BOC

Quanzhou 75 56 19 ABC Xiamen 937 902 35 Bank of Shanghai Shanghai 442 417 25 CMBC Hefei 700 700

• CMSB

Hefei 150 80 70 Xiamen Bank Xiamen 280 280

• Xiamen Bank

Quanzhou 48 48 1 SGB Tianjin 300 172 128 Ningbo Bank Shanghai 168 168

• CITIC Bank

Xiamen 150

• 150

Industrial Bank Shanghai 46 40 6 BEA Shanghai 28 28

• Sub-total

8,707 6,259 2,448 Club Loan Hong Kong/Macau 561 562

• OCBC

Hong Kong 372 268 104 HSBC Hong Kong 274 150 124 BOC Macau 182 182

• Fubon Bank

Hong Kong 47 47

• Sub-total

1,436 1,208 228 Total 10,143 7,467 2,676

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Cash on Hand Cash Inflow Cash Outflow

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FY 2014 CASH FLOW POSITION

RMB Bn FY2013 (A) FY2014 (A) FY2015 (E) Cash on Hand (at the beginning) 3.73 3.88 9.78 Cash Proceeds from Contracted Sales 8.04 9.55 12.64 Rental, Management Fee & Other Income 0.27 0.23 0.35 Net Proceeds from Cooperation

• 2.53

1.34 New Debt Drawdown 6.16 8.16 5.00 Paid Land Premium 4.51 4.56 6.30 Construction Cost Capex 3.24 3.97 4.76 Other Expenses - Interest, Tax, Dividend and Others 2.61 3.58 4.29 Debt Repayment 3.69 2.46 3.81 Cash on Hand (at the ending) 3.88 9.78 9.95 Cash on Hand 3.88 Rental, Management Fee & Other Income 0.23 Contracted Sales Cash Proceeds 9.55 New Debt Drawdown 8.16 Construction Cost Capex 3.97 Other Expenses 3.58 Debt Repayment 2.46 (Unaudited) RMB Bn Total Inflow 20.47 Total Outflow 14.57 Paid Land Premium 4.56 Net Cooperation Income 2.53

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FUTURE PERSPECTIVES

SLIDE 23

MARKET OUTLOOK

23

2014 2015 Future

 Consolidation will continue  Strategic development in diverse aspects and adopting the "Internet Thinking"  Government are establishing a “long-term mechanism” for property market adjustment  Urbanization and the growth of disposable income will drive the long-term demand  Overall downturn in the market in 1H and obvious discrepancy between different cities  Central government adopted market-oriented way to release the rigid demand

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OUR STRATEGIES TO WEATHER THE MARKET

 Diversify product mix to fulfill the user-oriented demand,

better catered to current market  Flexible pricing strategy in line with market expectations to boost sales volumes

Product and Pricing Flexibility Observe Investment Discipline Experienced Management Stable Cashflow

 Highly experienced management team with strong execution capabilities and deep industry insights  Effective marketing strategy, humanized design & excellent cost control

 Sell-through rate: stable cash flow and fast development cycle  Profit margin: sustainable development  Executive power: good corporate governance and stable

• peration

 Keep cautious in land acquisition

 Maintain the net gearing ratio at a manageable level  Strengthen cooperation with investment funds and other developers  organizes various financing channels to further optimize its financial structure

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FY2015: DETAILED LAUNCH TABLE

# Project Name City Product Type Launch Type Planned Sales GFA for 1H 2015 Planned Sales GFA for 2H 2015 Planned Sales GFA for FY2015 Percentage of Planned Sales GFA (%) (sq.m.) (sq.m.) (sq.m.) 1 Yuzhou Golf Xiamen Apartment Existing 2,023

• 2,023

0% Villa Existing 6,216

• 6,216

0% Car Parks Existing 7,608

• 7,608

0% 2 Yuzhou Shoreline Apartment Existing 1,691

• 1,691

0% Villa Existing 8,867

• 8,867

0% Retail Existing 915 915 0% Car Parks Existing 32,306

• 32,306

1% Apartment Existing 1,094

• 1,094

0% 3 Yuzhou Central Coast I&II SOHO Existing 4,804

• 4,804

0% Car Parks Existing 24,619

• 24,619

1% 4 Yuzhou Central Coast III Apartment Existing 36,944

• 36,944

1% SOHO Existing 5,499

• 5,499

0% Car Parks New Launch 8,721 12,435 21,156 1% 5 Yuzhou Riverside City Town Villa Existing 18,193 15,856 34,049 1% Apartment Existing 80,971 107,520 188,491 8% Retail Existing 7,480 33,800 41,280 2% Car Parks New Launch 13,398 13,398 26,796 1% 6 Yuzhou Cloud Top Int'l Apartment Existing 7,980

• 7,980

0% 7 Haicang Deam Town Apartment Existing 26,223 24,530 50,753 2% Retail Existing 6,968 859 7,827 0% SOHO Existing 14,768

• 14,768

1% Car Parks Existing 19,495 12,480 31,975 1% 8 Yuzhou Lucca Town Apartment New Launch

• 82,246

82,246 3% Villa New Launch

• 25,496

25,496 1% 9 Others Apartment Existing 1,882 5,497 7,379 0% Car Parks Existing 4,913 10,317 15,230 1% 10 Yuzhou Zhangzhou Project Zhangzhou Apartment New Launch

• 37,612

37,612 1% 11 Yuzhou City Plaza Quanzhou Apartment Existing 73,368 62,674 136,042 5% Retail Existing 4,421 8,243 12,664 1% Car Parks Existing 5,436 6,000 11,436 0% 12 Yuzhou Gushan No.One Fuzhou Villa Existing 20,540

• 20,540

1% 13 Yuzhou Oriental Venice Apartment Existing 53,486 66,425 119,911 5% Villa Existing 7,065 5,000 12,065 0% Car Parks Existing 2,757

• 2,757

0% 14 Yuzhou Lianjiang Project Apartment New Launch

• 51,263

51,263 2% 15 Yuzhou Castle above City Longyan Apartment Existing 52,671 50,857 103,528 4% Retail New Launch

• 8,830

8,830 0% West Strait Economic Zone 563,324 641,338 1,204,662 48%

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FY2015: DETAILED LAUNCH TABLE (Cont’d)

# Project Name City Product Type Launch Type Planned Sales GFA for 1H 2015 Planned Sales GFA for 2H 2015 Planned Sales GFA for FY2015 Percentage of Planned Sales GFA (%) (sq.m.) (sq.m.) (sq.m.) West Strait Economic Zone 563,324 641,338 1,204,662 48% 16 Yuzhou Jinqiao Int'l Shanghai Office Existing 100

• 100

0% Retail Existing 12,920

• 12,920

1% Car Parks Existing 15,314

• 15,314

1% 17 Yuzhou City Plaza Office Existing 12,369 17,727 30,096 1% Retail Existing 3,189

• 3,189

0% 18 Yuzhou Commercial Plaza Office Existing 28,093

• 28,093

1% Retail Existing 1,254

• 1,254

0% 19 Yuzhou Jiading Project Apartment New Launch

• 30,944

30,944 1% 20 Yuzhou Skyline Hefei Apartment Existing 63,775 71,900 135,675 5% Retail Existing 20,777 9,000 29,777 1% Car Parks Existing

• 11,278

11,278 0% 21 Yuzhou Jade Lakeshire Apartment Existing 92,870 75,882 168,752 7% 22 Yuzhou Central Plaza Apartment Existing 118,194 129,911 248,105 10% Retail New Launch 16,100 21,478 37,578 1% 23 Yuzhou Town Apartment Existing 28,666 11,335 40,002 2% Retail New Launch 11,312 3,209 14,522 1% Office New Launch

• 30,528

30,528 1% Car Parks New Launch

• 434

434 0% 24 Yuzhou Royal Seal Apartment Existing 61,389 68,328 129,717 5% Retail New Launch

• 5,652

5,652 0% 25 Yuzhou Xinzhan Project Apartment New Launch

• 59,594

59,594 2% 26 Yuzhou Prince Lakeshire Bengbu Apartment New Launch 57,620 48,109 105,729 4% 27 Yuzhou Yuhuatai Project Nanjing Apartment New Launch

• 56,400

56,400 2% Yangtze River Delta 543,942 651,711 1,195,653 48% 28 Yuzhou Palace Country Tianjin Apartment Existing 38,135 33,916 72,051 3% 29 Yuzhou Royal Lakeshire Apartment Existing 14,823 24,913 39,737 2% Villa New Launch 1,004

• 1,004

0% Bohai Rim Region 53,962 58,830 112,792 4% Total 1,161,228 1,351,878 2,513,106 100%

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Existing 76 New Launch 24 Existing New Launch Apartment 76 Retail 7 Car Parks 8 SOHO 1 Villa 4

• ffice

4 Apartment Retail Car Parks SOHO Villa

• ffice

Xiamen 27 Fuzhou 8 Quanzhou 6 Longyan 4 Zhangzhou 1 Shanghai 5 Hefei 36 Bengbu 4 Nanjing 2 Tianjin 4 Xiamen Fuzhou Quanzhou Longyan Zhangzhou Shanghai Hefei Bengbu Nanjing Tianjin

FY2015: LAUNCH BREAKDOWN

100% = 2,513,106 sq.m.

By City

%

By Launch Type By Period By Project Type

% % %

27 1H 46 2H 54 1H 2H

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MAJOR CONTRIBUTING PROJECTS IN 2015

Hefei Yuzhou Skyline (合肥禹洲．天境) Xiamen Yuzhou Riverside City Town (廈門禹洲．溪堤尚城)

• Located at the center of

Tong’an, surrouned by national wetland park

• High-rise residential

units, commercial and garden houses

• Land cost: RMB

1,696/s.qm.,

• Current ASP:RMB

11,000/sq.m

• Adjacent to the Govern-

ment Office of Hefei

• A community of 1.2

million sq.m. offers high- rises, low-rises residential units, retail and school

• Land cost: RMB

377/sq.m.,

• Current ASP: RMB

7,300/sq.m.

Quanzhou Yuzhou City Plaza (泉州禹洲城市廣場)

• Nearby the planning

new City Hall of Huian district

• High-rises low-rises

residential units, retail and Shopping mall

• Land cost: RMB

338/sq.m.,

• Current ASP:RMB

6,500/sq.m.

Hefei Yuzhou Central Plaza (合肥禹洲．中央廣場)

• Located at the East New

Town with total saleable GFA of 1 million sq.m

• High-rise residential

units with variety product type

• Land cost: RMB

1,421/s.qm.,

• Current ASP:RMB

6,500/sq.m

SLIDE 29

29

LAND BANKING STRATEGY

Guangdong Hunan Jiangxi Zhejiang Pearl River Delta (PRD) West Strait Economic Zone Yangtze River Delta (YRD) Shanghai Taiwan Fujian Fuzhou Xiamen Taipei

Fujian

Focus on the West Strait Economic Zone

A new strategic focus and growth engine in China promoted by the State Council

Penetrate further into the region

To solidify the long-time market leadership by expanding into nearby cities

Stick to our core competency

To acquire land through Public Auction and Merger & Acquisition

Xiamen 23% Fuzhou 7% Quanzhou 14% Longyan 4% Zhangzhou 3% Shanghai 7% Nanjing 1% Hefei 29% Bengbu 7% Tianjin 5%

Land bank chart as at March 2015

West Strait Economic Zone (51%)

SLIDE 30

30

APPENDIX

SLIDE 31

509 1,823 3,894 1,073 6,055 6,743 2,247 4,883 1,258 2,040 2,723 3,174 3,159 1,041 4,109 2,274 2,472 4,543 4,490 3,124 828 3,229 5,726 4,032 4,348 3,810 3,397 2,701 11,276 11,532 4,744 6,601 9,708 9,891 8,854 11,600 13,973 12,863 15,701 19,231 5,000 10,000 15,000 20,000 25,000 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Land Supply (GFA)for Residential Properties 000sq.m. Transaction Volume of Residential Properties 000sq.m. Per GFA Land Cost RMB/sq.m. ASP of Residential Properties RMB/sq.m. '000 sq.m. RMB/sq.m.

XIAMEN PROPERTY MARKET OVERVIEW

Residential Land Supply and Property Transactions in Xiamen Monthly Transaction Volume and ASP of Residential Properties

31

Source：Database from CRIC; Land Supply Data for Residential Properties Supply(excluding social housing) Source：Database from CRIC; Data Only for Commodity Housing(excluding social housing)

519 345 795 402 548 459 441 338 300 256 93 30 610 222 292 168 193 213 225 225 191 243 267 278 13,819 13,985 15,191 17,259 16,014 15,260 18,361 16,242 16,768 16,176 14,627 9,915 17,973 18,215 17,690 20,624 22,199 22,550 23,630 20,511 18,412 19,422 20,815 20,013 5,000 10,000 15,000 20,000 25,000 100 200 300 400 500 600 700 800 900 Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 RMB/sq.m. '000sq.m. Monthly Transaction Volume of Residential Properties ‘000sq.m. ASP of Residential Properties RMB/sq.m.

SLIDE 32

3,159 2,577 1,185 820 1,308 3,623 2,905 1,000 2,016 1,224 696 870 975 1,327 4,261 1,877 1,875 2,524 2,764 2,410 1,333 2,346 5,405 3,839 4,214 4,841 5,376 5,241 5,225 6,046 3,477 4,126 7,590 7,557 8,164 11,942 14,231 14,188 16,372 16,552 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 18,000 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Land Supply (GFA)for Residential Properties 000sq.m. Transaction Volume of Residential Properties 000sq.m. Per GFA Land Cost RMB/sq.m. ASP of Residential Properties RMB/sq.m. '000 sq.m. RMB/sq.m.

FUZHOU PROPERTY MARKET OVERVIEW

Residential Land Supply and Property Transactions in Fuzhou Monthly Transaction Volume and ASP of Residential Properties

Source：Database from CRIC; Land Supply Data for Residential Properties Supply(excluding social housing)

32

Source：Database from CRIC; Data Only for Commodity Housing(excluding social housing)

236 205 382 224 213 267 164 184 104 221 313 252 280 155 208 161 130 140 152 204 167 242 216 355 15,294 15,990 15,874 16,560 16,063 18,160 18,120 17,247 17,724 15,294 16,028 15,679 18,446 16,804 16,417 17,091 17,024 17,835 17,252 15,384 15,629 15,474 15,787 16,110 5,000 10,000 15,000 20,000 50 100 150 200 250 300 350 400 450 Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 RMB/sq.m. '000sq.m. Monthly Transaction Volume of Residential Properties ‘000sq.m. ASP of Residential Properties RMB/sq.m.

SLIDE 33

34,809 23,421 17,776 7,514 8,972 14,565 16,914 11,440 14,031 9,704 17,941 16,151 20,128 8,779 18,999 9,897 7,287 9,377 12,820 9,713 355 712 2,121 3,215 7,944 6,632 3,996 4,852 5,845 9,084 7,767 9,655 10,556 13,971 16,039 21,728 22,278 22,502 24,177 27,212 5,000 10,000 15,000 20,000 25,000 30,000 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Land Supply (GFA)for Residential Properties 000sq.m. Transaction Volume of Residential Properties 000sq.m. Per GFA Land Cost RMB/sq.m. ASP of Residential Properties RMB/sq.m. '000 sq.m. RMB/sq.m.

SHANGHAI PROPERTY MARKET OVERVIEW

Residential Land Supply and Property Transactions in Shanghai Monthly Transaction Volume and ASP of Residential Properties

Source: Database from CRIC; Land Supply Data for Residential Properties Supply(excluding social housing)

33

Source: Database from CRIC; Data Only for Commodity Housing(excluding social housing)

1,010 540 1,518 902 944 1,123 772 901 1,433 1,398 1,282 978 699 418 930 761 595 714 685 645 773 1,092 1,032 1,368 23,149 24,903 23,159 24,020 23,448 24,133 24,908 23,512 24,541 25,005 25,062 25,476 25,730 25,751 25,840 25,951 27,651 26,551 26,512 26,335 27,645 27,554 27,770 30,032 5,000 10,000 15,000 20,000 25,000 30,000 35,000 200 400 600 800 1,000 1,200 1,400 1,600 Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 RMB/sq.m. '000sq.m. Monthly Transaction Volume of Residential Properties ‘000sq.m. ASP of Residential Properties RMB/sq.m.

SLIDE 34

4,540 2,379 10,256 4,879 9,619 8,900 9,403 11,371 12,664 15,443 5,374 5,833 9,531 7,754 10,684 6,256 5,413 8,439 10,765 11,624 1,201 729 782 1,024 1,649 2,166 1,621 1,456 1,495 2,686 2,799 2,874 3,154 4,100 4,635 6,007 6,259 6,351 6,986 7,190 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 18,000 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Land Supply (GFA)for Residential Properties 000sq.m. Transaction Volume of Residential Properties 000sq.m. Per GFA Land Cost RMB/sq.m. ASP of Residential Properties RMB/sq.m. '000 sq.m. RMB/sq.m.

HEFEI PROPERTY MARKET OVERVIEW

Residential Land Supply and Property Transactions in Hefei Monthly Transaction Volume and ASP of Residential Properties

Source：Database from CRIC; Land Supply Data for Residential Properties Supply(excluding social housing)

34

Source：Database from CRIC; Data Only for Commodity Housing(excluding social housing)

957 628 1,756 1,170 1,077 1,019 1,213 1,225 1,084 1,152 1,309 1,483 1,196 1,010 1,257 1,061 908 848 847 948 785 808 1,032 924 6,377 6,139 6,474 6,438 6,380 6,326 6,565 6,281 6,581 6,654 6,593 6,893 6,772 6,585 7,020 7,123 7,312 7,279 7,355 7,461 7,382 7,227 7,393 7,662 2,000 4,000 6,000 8,000 10,000 500 1,000 1,500 2,000 Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 RMB/sq.m. '000sq.m. Monthly Transaction Volume of Residential Properties ‘000sq.m. ASP of Residential Properties RMB/sq.m.

SLIDE 35

7,927 11,391 3,864 5,913 11,651 12,791 9,417 13,116 15,570 12,109 10,232 4,873 12,075 5,810 4,036 7,621 9,912 8,305 1,107 2,309 2,054 3,160 4,842 2,733 3,806 5,953 4,128 4,394 5,459 6,376 7,348 10,688 10,775 10,929 12,305 13,521 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 18,000 2006 2007 2008 2009 2010 2011 2012 2013 2014 Land Supply (GFA)for Residential Properties 000sq.m. Transaction Volume of Residential Properties 000sq.m. Per GFA Land Cost RMB/sq.m. ASP of Residential Properties RMB/sq.m. '000 sq.m. RMB/sq.m.

NANJING PROPERTY MARKET OVERVIEW

Residential Land Supply and Property Transactions in Nanjing Monthly Transaction Volume and ASP of Residential Properties

Source：Database from CRIC; Land Supply Data for Residential Properties Supply(excluding social housing)

35

Source：Database from CRIC; Data Only for Commodity Housing(excluding social housing)

779 515 1,027 1,019 806 724 884 819 805 802 880 940 871 490 658 733 591 504 501 633 585 853 1,052 1,145 11,501 12,532 10,720 11,350 11,840 12,479 13,036 12,250 13,217 12,183 12,758 13,579 14,475 11,737 12,911 13,311 13,730 13,682 13,436 13,009 13,902 13,321 14,737 15,148 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 200 400 600 800 1,000 1,200 1,400 Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Monthly Transaction Volume of Residential Properties ‘000sq.m. ASP of Residential Properties RMB/sq.m. '000 sq.m. RMB/sq.m.

SLIDE 36

DETAILED LAND BANK TABLE

36

Project Site Area Location Unit Land Cost Total GFA Total Saleable GFA Sold and Delivered Saleable GFA Pre-sold Saleable GFA Held for Sale Only Held for Investment Only Land Reserve Interest in the Project (sq.m.) (RMB/sq.m.) (sq.m.) (sq.m.) (sq.m.) (sq.m.) (sq.m.) (sq.m.) (sq.m.) % Completed Projects Yuzhou Overseas City 27,703 Xiamen 830 239,627 236,745 235,644

• 1,101

1,101 100% Yuzhou Shuilian Manor 12,909 Xiamen 910 29,126 27,325 27,325

• 100%

Yuzhou Hai Tian Plaza 6,316 Xiamen 396 65,104 64,575 63,093 266 355 861 1,482 100% Yuzhou Harbour City 20,089 Xiamen 761 191,649 186,013 186,013

• 60%

Yuzhou New City 25,610 Xiamen 647 93,473 90,770 87,144

• 262

3,364 3,626 100% Yuzhou Garden 27,345 Xiamen 586 92,888 92,119 89,751 291 385 1,692 2,368 100% Yuzhou Galaxy Garden 26,367 Xiamen 1,718 93,925 91,689 91,463

• 226
• 226

100% Yuzhou New Manor 45,619 Xiamen 493 118,892 118,652 118,590

• 62
• 62

100% Yuzhou World Trade Center 19,454 Xiamen 845 204,476 182,640 131,872 1,177 491 49,100 50,768 100% Yuzhou Golden Seacoast 70,793 Xiamen 1,590 245,073 226,679 187,427 7,602

• 31,650

39,252 100% Yuzhou University City 90,750 Xiamen 932 480,252 467,112 444,818 160 15,038 7,096 22,294 100% Yuzhou Castle above City 52,715 Xiamen 1,273 235,984 231,017 166,522 51,772 9,965 2,758 64,495 100% Yuzhou Sunshine City 22,868 Xiamen 1,301 72,733 72,278 59,314

• 12,964
• 12,964

100% Yuzhou Golf 55,986 Xiamen 1,165 129,187 114,574 68,390 4,376 41,808

• 46,184

100% Yuzhou Shoreline 107,622 Xiamen 3,560 473,184 421,316 301,420 19,531 85,965 14,400 119,896 100% Yuzhou Cloud Top International 15,652 Xiamen 3,174 98,294 71,214 28,348 11,786 7,980 23,100 42,866 100% Yuzhou Plaza 3,333 Xiamen 2,417 60,130 57,861

• 57,861

57,861 100% Yuzhou Jinqiao International 49,738 Shanghai 1,242 234,484 230,955 169,369 24,997 3,874 32,715 61,586 100% Yuzhou Plaza 6,818 Shanghai 2,620 35,837 28,624

• 28,624

28,624 100% Yuzhou Gushan No. One 234,160 Fuzhou 1,831 88,287 79,923 50,501 8,963 20,459

• 29,422

60% Sub-total 921,847 1,476 3,282,605 3,092,081 2,507,004 130,921 199,834 254,322 585,077 Projects Under Development Yuzhou International Hotel 60,018 Xiamen 1,175 125,221 102,142

• 102,142

102,142 100% Yuzhou Central Coast 123,240 Xiamen 2,557 563,730 535,000 368,426 87,620 53,954 25,000 166,574 80% Yuzhou Riverside City Town 284,414 Xiamen 1,696 512,600 512,600 65,550 63,705 302,845 80,500 447,050 100% Haicang Vanke City (JV Project) 189,752 Xiamen 2,921 517,690 517,690 99,954 315,820 101,916

• 417,736

20% Yuzhou Lucca Town 54,323 Xiamen 12,059 136,000 136,000

• 136,000
• 136,000

100% Yuzhou Commercial Plaza 40,911 Shanghai 2,367 135,880 110,460

• 4,407

80,202 25,851 110,460 100% Yuzhou City Plaza 50,628 Shanghai 1,445 100,489 98,494

• 5,303

57,914 35,277 98,494 100% Yuzhou Skyline 446,757 Hefei 377 1,230,259 1,222,859 750,319 88,332 286,908 97,300 472,540 100% Yuzhou Jade Lakeshire 95,978 Hefei 1,755 352,268 287,934

• 118,157

169,777

• 287,934

100% Yuzhou Central Plaza 279,535 Hefei 1,421 918,698 918,698

• 177,009

641,689 100,000 918,698 65% Yuzhou Royal Seal 156,667 Hefei 2,825 470,000 470,000

• 25,485

444,515

• 470,000

49% Yuzhou Town 36,387 Hefei 3,900 109,160 109,160

• 23,406

42,090 43,664 109,160 100% Yuzhou Prince Lakeshire 133,667 Bengbu 660 668,333 668,333

• 45,078

623,255

• 668,333

100% Yuzhou Oriental Venice 706,397 Fuzhou 2,846 559,266 549,185 111,631 74,464 347,357 15,733 437,554 45% Yuzhou Palace Country 135,173 Tianjin 1,060 320,374 319,748 20,052 69,087 230,609

• 299,696

100% Yuzhou Royal Lakeshire 109,090 Tianjin 1,062 130,908 130,908

• 8,781

122,127

• 130,908

100% Yuzhou Castle above City 100,878 Longyan 1,921 312,330 312,330

• 89,392

208,338 14,600 312,330 100% Yuzhou City Plaza Phase I 125,000 Quanzhou 338 491,800 491,800 170,359 38,050 283,391

• 321,441

100% Yuzhou City Plaza Phase II 241,707 Quanzhou 343 878,525 823,400

• 88,380

576,300 158,720 823,400 100% Sub-total 3,370,522 1,620 8,533,531 8,316,741 1,586,291 1,322,476 4,709,187 698,787 6,730,450 Projects Held for Future Development Yuzhou Xiang'an Com/Offi Project 8,264 Xiamen 3,013 89,300 89,300

• 89,300

89,300 100% Yuzhou Lianjiang Project 54,507 Fuzhou 4,256 136,268 136,268

• 136,268
• 136,268

100% Yuzhou City Plaza Phase III 61,481 Quanzhou 769 110,666 110,666

• 110,666
• 110,666

100% Yuzhou Caine Road Project 278 Hong Kong 135,140 2,886 2,214

• 2,214
• 2,214

100% Yuzhou Jinshan Project 174,814 Shanghai 1,324 211,418 211,418

• 211,418
• 211,418

100% Yuzhou Jiading Project 55,017 Shanghai 10,405 126,540 126,540

• 126,540
• 126,540

100% Yuzhou Xinzhan Project 97,467 Hefei 4,286 341,135 341,135

• 341,135
• 341,135

100% Yuzhou Yuhuatai Project 41,494 Nanjing 16,657 112,865 112,865

• 112,865
• 112,865

100% Yuzhou Zhangzhou Project 100,057 Zhangzhou 2,400 279,309 255,000

• 255,000
• 255,000

100% Sub-total 593,379 4,897 1,410,387 1,385,406

• 1,296,106

89,300 1,385,406 Total 4,885,748 1,940 13,226,523 12,794,228 4,093,295 1,453,397 6,205,127 1,042,409 8,700,933

SLIDE 37

2014 KEY FINANCIALS

For the year ended 31 Dec

37

FY2014 FY2013 Change (%) Revenue (RMB’000) 7,836,633 7,470,608 +5% Gross Profit (RMB’000) 2,844,773 2,319,081 +23% Gross Profit Margin (%) 36.3% 31.0% +5.3pp Core Profit (RMB’000) 1,025,336 1,089,922

• 6%

Core Profit Margin (%) 13.1% 14.6%

• 1.5pp

EPS (RMB/share) 0.36 0.43

• 16%

CEPS (RMB/share) 0.30 0.32

• 6%

SLIDE 38

38

(RMB’000) As at 31 Dec 2014 As at 31 Dec 2013 Change (%) Total current assets 29,559,864 21,847,267 +35% Total non-current assets 9,515,143 5,515,054 +73% Total current liabilities 17,278,610 11,483,173 +50% Total non-current liabilities 12,406,598 8,407,243 +48% Total equity 9,389,799 7,471,905 +26% Cash and bank balances 9,784,742 3,883,626 +152% Restricted Cash 488,765 375,686 +30% Short Term Debt 3,805,451 1,984,444 +92% Long Term Debt 11,598,959 7,725,838 +52% Net Debt 5,619,668 5,826,656

• 4%

Net Gearing Ratio(%) 59.8% 78.0%

• 18.2pp

2014 KEY FINANCIALS

SLIDE 39

These materials have been prepared by Yuzhou Properties Company Limited (the “Company”) solely for informational use during its presentation to current and/or prospective investors to provide an update on the business performance and development of the Company. No representation or warranty express or implied is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained herein. It is not the intention to provide, and you may not rely on these materials as providing, a complete or comprehensive analysis of the Company’s financial or trading position or prospects. The information contained in these materials should be considered in the context of the circumstances prevailing at the time and is subject to change without notice and has not been, and will not be, updated to reflect material developments which may occur after the date of the presentation. None of the Company nor any of its respective directors, officers, employees, affiliates, advisors or representatives shall have any liability whatsoever (in negligence or otherwise) for any loss or damage howsoever arising from any use of these materials or their contents or otherwise arising in connection with these materials. These materials and subsequent discussions may contain certain statements which would constitute "forward-looking statements”. Such forward-looking statements involve risks, uncertainties, future events, our future financial,

• perational, business or other performance and are subject to a number of uncertainties and factors that may cause

the actual results, performance or achievements of the Company to be materially different from those expressed by, or implied by the forward-looking statements in these materials. There can be no assurance that the results and events contemplated by the forward-looking statements contained in these materials will in fact occur. You should not place undue reliance on these forward-looking statements, which reflect our belief only as of the date of this presentation. These forward-looking statements are based on our own information and on information from other sources we believe to be reliable. Past performance cannot be relied on as a guide to future performance. This document does not constitute an offer or invitation to purchase or subscribe for any securities of the Company or any holding company or any of its subsidiaries or an inducement to enter into any investment activity. No part of these materials, or the fact of its distribution or use, shall form the basis of or be relied upon in connection with any contract, commitment or investment decision in relation thereto.

DISCLAIMER

39