March 2017
2016Annual Results
Presentation
Results Highlights1 3
Financial Overview2 8
Business Operations3 15
Appendix4 31
Contents
2
3
1. Results Highlights
3
Pioneer(开创)
Founded in 1996, Aoyuan first introduced the "Sports+Property" development conceptand pioneered in composite real estate development with its branding philosophy of“Building a Healthy Lifestyle”
Breakthrough(破茧)
Aoyuan received approx. HKD3.2bn in cash and recorded special gains of HKD1.1bn bysuccessfully exiting 8 Chang’an Ave Beijing project in 2012. Aoyuan was ready tounleash potential and breakthrough again
Takeoff(起飞)
Aoyuan achieved contracted sales of approx. RMB25.6bn in 2016, representing afivefold increase as compared to approx. RMB5.2bn in 2012. 2017 target contractedsales of RMB33.3bn
Upgrade(跃升)
Aoyuan became the only PRC developer whose credit rating got upgraded to “Positive”by three major international rating agencies, namely Moody’s, S&P and Fitch in 2016.Its long-term corporate credit rating has been upgraded to “BB-” by Fitch, reaffirmingits excellent track record and financing capacity in domestic and overseas markets
Internationalization(国际化)
In addition to proactively optimizing landbank in Tier 1 and 2 cities of PRC, Aoyuan hasexpanded into Australia through localization strategies and is building an internationalbrand. Aoyuan will replicate success in Canada and further promote paralleldevelopment in domestic and overseas markets
Aoyuan: Breakthrough to Success
4
2016 Annual Results Highlights
5
Internationalization of Aoyuan brand
Optimized debt structure Lowered borrowing cost
Upgraded productEnhanced competitiveness
Disciplined land bank replenishment
Healthy financial profile Upgraded credit rating
Stable increase in dividend payment2
3
5
7
8
6 4
Strong contracted sales growth
1
Improving profitability突破·跨越Breakthrough to Success
2016 Results Highlights (cont.)
6
• Contracted sales in 2016 surged by 69% yoy to approx. RMB25.6bn, representing afivefold increase as compared to 2012, and exceeded the full year target by 51%
• Each of the 8 projects in Guangzhou, Zhuhai, Foshan, Chengdu, Chongqing and Jiaxingcontributed over RMB1bn
• Contracted sales in the first 2 months of 2017 increased by 72% yoy to approx.RMB3.79bn
Strong contracted
sales growth
• Revenue increased by 24% yoy to approx. RMB11.83bn• Gross profit increased by 24% to approx. RMB3.28bn; Gross profit margin maintained
at approx. 27.7%• Net profit excluding exchange loss increased by 25% to approx. RMB1.48bn; Net profit
including exchange loss increased by 11% to approx. RMB1.01bn• Recommended a final dividend of RMB9.7 cents per share with a payout ratio of 30%,
maintaining a stable dividend policy, and a special dividend of RMB5.3 cents per share.Total recommended dividend amounts to RMB15 cents per share
Improving
profitability
• Aoyuan was the only mainland developer whose credit rating outlook got upgraded to“Positive” by three major international rating agencies, namely Moody’s, S&P and FitchRatings in 2016, and Fitch Ratings further upgraded Aoyuan’s corporate credit rating toBB-
• Net gearing ratio decreased by 12p.p. to 50.7%, staying at reasonable industry level• Cash collection ratio increased by 8p.p. to 90%, staying at a high industry level• Total cash was approx. RMB10.96bn, and achieved positive operating cash flow
Healthy financial
profile
upgraded credit
rating
2016 Results Highlights (cont.)
7
• Maintained diversified onshore and offshore financing channels, including offshore
syndicated loans, issuance of senior notes and onshore corporate bonds
• Redeemed of 3 high-cost US dollar senior notes due in Nov 2017, Mar 2018 and Jan2019, respectively
• Borrowing costs decreased by 1.4p.p. to 8.1%; debt structure continued to optimize
Optimized debt structure
lowered borrowing cost
• Proactively optimizing land bank in Tier 1 and 2 cities, especially in Pearl River Deltaregion. Tier 1 and 2 cities and international cities accounted for 90% of newly acquiredland cost in 2016
• Adhered to disciplined land bank replenishment, and attributable land costs of newlyadded land bank accounted for approx. 33% of contracted sales in 2016
• Total land bank was approx. 14.65 million sqm, sufficient for the development needs forapprox. 5 years. Land bank in Tier 1 and 2 cities and international cities accounted forapprox. 80% of total landbank in terms of value
Disciplined land bank
replenishment
• Established a proven track record of well-recognized projects in Australia byimplementation of localization strategies
• Commenced demolition work of One30 Hyde Park, making Aoyuan one of the few PRCdevelopers in Australia to reach construction phase
• successfully expanded into Canadian market through acquiring a high quality projectnext to Vancouver CBD
InternationalizingAoyuan’s brand
8
2. Financial Overview
8
(Year ended 31 Dec)
(RMB '000) 2016 2015 Change
Turnover 11,827,268 9,572,424 +24%
Gross profit 3,277,084 2,646,276 +24%
Gross profit margin 27.7% 27.6% +0.1p.p.
Net profit (excl. exchange loss) 1,478,966 1,185,002 +25%
Net profit margin (excl. exchange loss) 12.5% 12.4% +0.1p.p.
Net profit (incl. exchange loss) 1,006,608 907,493 +11%
Net profit margin (incl. exchange loss)
8.5% 9.5% -1p.p.
Total dividend per share (RMB cents) 15.0 10.6 +42%
Final dividend per share(RMB cents)
9.7 8.8 +10%
Special dividend per share(RMB cents)
5.3 1.8 +194%
Income statement highlights
9
(RMB '000) 31 Dec 2016² 30 Jun 2016 31 Dec 2015
Total cash¹ 10,956,456 10,211,354 9,035,678
Total assets 66,418,413 58,527,399 48,826,872
Total assets less current liabilities 30,275,816 30,353,907 26,057,288
Equity attributable to owners of the Company 8,918,093 8,635,738 8,242,775
Total equity 14,631,293 14,433,093 11,575,857
10
Note:1 Total cash = Cash and cash equivalents + Restricted bank deposits. Unrestricted cash accounted for 96% of total cash2 As of 31 Dec 2016, credit facilities amounted to approx. RMB27.05bn, of which approx. RMB13.25bn were unutilized
Balance sheet highlights
31 Dec 2016 30 Jun 2016 31 Dec 2015
Net debt / Total equity ¹ 50.7% 56.0% 62.7%
Net debt / Total assets 11.2% 13.8% 14.9%
Net debt / EBITDA 2 3.3x 3.8x 3.6x
Total liabilities / Total assets 78.0% 75.3% 76.3%
Liquidity ratio 3 1.7x 1.9x 1.9x
11
Key financial ratios
Note:1 Net debt = Total debt - Total cash2 EBITDA = Profit before tax + Finance costs + Depreciation + Amortization
(EBITDA for 30 Jun 2016 is based on the LTM EBITDA up to 30 Jun 2016)3 Liquidity ratio = Current assets / Current liabilities
12
39%
16%25%
18%
34%
36%
42%49%
39%
1% 1%
0%
20%
40%
60%
80%
100%
2014 2015 2016
< 1 year 1-2 years 2-5 years > 5 years
Debt maturity profile Debt breakdown by type
Improving debt structure
Onshore bank
borrowings 24%
Onshore corporate
bonds 24%
Offshore senior notes30%
Offshore bank
borrowings9%
2015
Trust loans13%
Note:2 Proportion of trust loans decreased by 9p.p. to 4%3 Proportion of unsecured loans increasing by 12p.p. yoy to 69%,
Onshore bank
borrowings23%
Trust loans4%
Onshore corporate
bonds33%
Offshore senior notes30%
Offshore bank
borrowings10%
2016
2
3
Note 1: As of 31 Dec 2016, total borrowings amounted to approx.RMB18.38bn, of which RMB4.51bn was short-term borrowings.Total cash amounted to approx. RMB10.96bn, which is 2.4x ofshort-term borrowings, sufficient to cover short-term borrowings
1
4Declining borrowing costs
11.4%
10.2%9.5%
8.1%
6%
8%
10%
12%
2013 2014 2015 2016Note:4 After the early redemption of US$300mn 11.25% senior notes due 2019 in Feb 2107, total borrowing costs were lowered to 7.6%
Hedged RMB depreciation risk
Improving debt structure (cont.)
Upgraded credit rating
• The only PRC developer whose credit rating got upgradedto “Positive” by all 3 major international rating agencies(Moody’s, S&P and Fitch Ratings) in 2016. Its long-termcorporate credit rating has been upgraded to “BB-” by FitchRatings
• Domestic credit rating as “AA” by United Ratings
Diversified onshore/offshore financing channels
Offshore
• In Aug 2015 and Feb 2016, obtained a total of US$180mnthree-year syndicated loan led by Nanyang Commercial Bankin offshore market. US$100mn tranche bears an interest ofLIBOR+6.5% per annum, US$80mn tranche bears an interestof LIBOR+5% per annum
• In Apr 2016, issued US$250mn 6.525% senior notes at pardue 2019 which was oversubscribed by 8.8x
• In Jul 2016, facilitated the first cooperation betweenCommonwealth Bank of Australia and China’s Big Four Banks,namely Bank of China, Industrial and Commercial Bank ofChina, and China Construction Bank, to provide a syndicatedloan of approx. A$200mn for One30 Hyde Park with the totalborrowing cost of below 5% per annum
• In Jan 2017, became the first Asian issuer to complete aUS$250mn 6.35% senior notes at par due 2020 which wasoversubscribed by 8x
• In Feb 2017, secured approx. HK$1.5bn three-year USdollar/HK dollar dual currency club loan with an interest rateof LIBOR/HIBOR+4.5% per annum from 6 overseas banks,namely Hang Seng Bank, Nanyang Commercial Bank, Bank ofEast Asia, Chong Hing Bank, Chiyu Banking Corporation andWing Lung Bank
Onshore
• In Feb 2016, issued four-year RMB500mn domestic corporatebonds through private offering at a 7.9% coupon rate
• In Oct 2016, issued three-year RMB1.5bn domestic corporatebonds through private offering at a 5.88% coupon rate
Redeemed high-cost debt
• Hedged 50% of offshore debt through capped forwardarrangement in 2016
• Recorded gain on change in FX fair value of approx.RMB140mn, mitigating RMB depreciation risk
• Continue to closely monitor RMB trends, choose theappropriate hedging product based on hedging costs andminimalize currency risks
• In Nov 2015 and Feb 2016, completed redemption ofUS$225mn 13.875% senior notes due 2017 in two batches
• In May 2016, redeemed US$100mn 9.25% senior notesdue 2018
• In Feb 2017, redeemed US$300mn 11.25% senior notesdue 2019
13
9.0410.96
23.04
5.54
3.58 -6.28
-9.74
-2.21-1.04 -1.53 -0.25 -7.04
-1.46-0.69
0
5
10
15
20
25
30
35
40
45
Opening cash balance
(as of 1 Jan)
Operating cash flow
New
bank borrowings
Proceeds from senior
notes/domestic
bonds issuance
Land acquisition
Construction expenses
Tax expenses
SG&
A
Interest expenses
Dividend paym
ents
Debt repaym
ent
Redemption of
senior notes
Other cash outflow
Ending cash balance(as of 31 D
ec)
14
23.04
25.60
0
4
8
12
16
20
24
28
Cash collected Contracted sales
90%
Note: 1 Achieved positive operating cash flow of RMB6.00bn2 As of 31 Dec 2016, the outstanding land premium was approx. RMB2.31bn which is expected to be fully paid in 2017
Cash collection ratio at a high industry level, and achieved positive operating cash flow1
2016 Cash flow 2016 Cash collection
Achieved positive operating cash flow
(RMB billion)(RMB billion)
2
15
3. Business Operations
15
Strong contracted sales growth
16
Monthly contracted sales
(RMB million)
977
405707 519
817
1,722
856503
878
1,230
2,130
1,5001,132
636880 666
929
1,826
1,021 1,403
1,140 1,512
1,8902,140
1,503
707
1,5461,732
2,073
2,967
1,2251,433
3,631
2,5052,886
3,393
1,6882,104
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2014 2015 2016 2017
Contracted sales
5,251 10,038 12,223
15,171
25,602
33,300
05,000
10,00015,00020,00025,00030,00035,00040,000
2012 2013 2014 2015 2016 2017 target
(RMB million)
Contracted sales in the first 2
months of 2017 completed 11%
of full year target
合同及确认销售面积 合同及确认销售金额 合同及确认销售均价
17
Contracted sales and recognized sales (GFA)
Contracted sales and recognized sales (Value)1,2
Contracted sales and recognized sales (ASP)
1,888
2,980
1,018
1,607
0
500
1,000
1,500
2,000
2,500
3,000
2015 2016
Contracted GFA sold Recognized GFA sold
15,171
25,602
9,295
11,240
0
5,000
10,000
15,000
20,000
25,000
30,000
2015 2016
Contracted sales Recognized sales
8,0378,591
9,130
6,993
0
2,000
4,000
6,000
8,000
10,000
2015 2016
Contracted ASP Recognized ASP
Contracted sales and recognized sales
(000's sqm) (RMB million) (RMB per sqm)
Note: 1 As of Dec 31 2016, contracted sales that were yet to be recognized as revenue amounted to approx. RMB29.2bn2 The attributable contracted sales accounts for 93% of contracted sales in 2016
Residential apartments
71%
Retails and others19%
Commercial apartments
8%
2015 contracted sales: RMB15.17bn 2016 contracted sales: RMB25.60bn
By region
2015 contracted sales: RMB15.17bn
By product
2016 contracted sales: RMB25.60bnLow
density residential
3%
Low density
residential2%
By region
By product
Contracted sales breakdown
18
Guangzhou 13%
Guangdong (ex-
Guangzhou)35%
Beibuwan12%
Core region of Central and West
China24%
Australia4%
Guangzhou 18%
Guangdong (ex-
Guangzhou)26%
Beibuwan11%
Core region of Central and West
China25%
Australia7%Bohai Rim
3%
Yangtze River Delta
10%
Bohai Rim2%
Yangtze River Delta
10%
Residential apartments
66%
Retails and others18%
Commercial apartments
13%
• Guangdong: 44%
• Non-Guangdong: 49%
• Australia: 7%
• Guangdong: 48%
• Non-Guangdong: 48%
• Australia: 4%
• Residential: 69%
• Commercial: 31%
• Residential: 73%
• Commercial: 27%
Yangtze River Delta
12%
Guangzhou54%
2015 recognized sales: RMB9.30bn 2016 recognized sales: RMB11.24bn
Guangzhou29%
Core Region of Central and West China
23%
Yangtze River Delta
13%
Beibuwan3%
Bohai Rim6%
2015 recognized sales: RMB9.30bn 2016 recognized sales: RMB11.24bn
Residential apartments
70%
Retails and others17%
Commercial apartments
12%
Low density residential
1%
Recognized sales breakdown
By region By region
By product By product
Guangdong(ex-Guangzhou)
26%
19
Core region of Central and West
China15%
Guangdong(ex-Guangzhou)
11%
Bohai Rim5%Beibuwan
3%
Residential apartments
41%
Retails and others20%
Commercial apartments
38%
Low density residential
1%
• Guangdong: 65%
• Non-Guangdong: 35%
• Guangdong: 55%
• Non-Guangdong: 45%
• Residential: 42%
• Commercial: 58%
• Residential: 71%
• Commercial: 29%
New starts GFA and completed GFA
Aoyuan maintains flexible capex management and sound cash flows via managing its new starts GFA and completed GFA to adapt to market changes
20
(000's sqm)
1,616
2,037
3,060
1,247 1,368
2,212
0
500
1,000
1,500
2,000
2,500
3,000
3,500
2014 2015 2016
New GFA start GFA completion
Enhancing value added content of products by providing more finely decorated apartments and paying greater attention to details
Innovative resort series for greater customer experience Successful upgrade of Aoyuan Plaza v3.0 with robust sales
Foshan Aoyuan the Prime PalaceShenzhen Aoyuan Jade Bay
Guangzhou Aoyuan Lianfeng State Zhuhai Aoyuan Plaza
Upgraded product and further enhanced competitiveness (domestic)
21
One30 Hyde Park once broke record ASP and highest unit price in Australia,Maison 188 Maroubra set new high record ASP in the vicinity
22
Upgraded product and further enhanced competitiveness (overseas)
One30 Hyde Park Sydney Maison 188 Maroubra Sydney
Altessa 888 Gordon Sydney Mirabell Turramurra Sydney
23
Successful development in overseas markets through localization strategies
Aoyuan is committed to establishing itself as a genuine local developer by leveraging its know-how and expertise and strong local execution capabilities in Australia and Canada, with a proven track record of well-recognized projects
On-going collaboration with recognized local joint venture partner: Aoyuan partnered with an Australian developer todevelop luxury residential apartments in CBD of Sydney, One30 Hyde Park (previously known as 130 Elizabeth St.), and also partneredwith a local Canadian developer to develop high-end residential apartments in Vancouver
Successfully gained access to local financing channels: Aoyuan obtained a syndicated loan of approx. A$200mn for One30Hyde Park from the Commonwealth Bank of Australia (CBA), and Maison 188 Maroubra secured preliminary approval from WestpacBanking Corporation to fully fund the construction of the project, which enabled Aoyuan to establish its good credit record in Australia.Aoyuan has become one of the few PRC developers who has gained access to local bank financing in Australia
Led by local professional management team: Aoyuan Australia has professional teams in Australia and Canada consisting of localprofessionals with a wealth of experience in property development, project management, financing and investment
Ensure smooth execution by cooperating with local professional consultants: Aoyuan has carefully selected a number ofreputable and experienced Australia- and Canada-based professional consultants to provide active advices and services in areasincluding law, tax, architecture, urban planning, construction, audit, marketing, and branding.
Primarily target local customers to achieve strong and sustainable demand: Local customers accounted for approx. 75% ofcontracted sales of Aoyuan’s Australian projects, and Aoyuan’s project in Canada will also target local customer base
24
New milestone for parallel development in domestic and overseas markets
Since early 2015, Aoyuan has tapped into the Australia market and already owns 4 projects. In Mar 2017, Aoyuan successfully expanded into the Canadian market through acquiring a high quality project, replicating its success in
Australia, and promoting parallel development in domestic and overseas markets at a steady pace
Mar 2015: Aoyuan acquired One30 Hyde Park in Sydney CBD through a joint venture withEcove to develop luxury residential apartments (Aoyuan holds 70% equity interests)
Apr 2015: Aoyuan obtained loan from CBA which amounted to 50% of the total land cost forOne30 Hyde Park, with a total borrowing cost of below 5% per annum
Aug 2015: One30 Hyde Park successfully obtained development approval (DA) and waslaunched for presale, breaking the record ASP and highest unit price in Australia
Nov 2015: Aoyuan acquired Maison 188 Maroubra for independent development Mar 2016: The demolition work of One30 Hyde Park commenced, making Aoyuan one of the
few PRC developers in Australia to ever reach the construction phase Jun 2016: Maison 188 Maroubra successfully obtained DA Jul 2016: Aoyuan has facilitated the first cooperation between CBA and China’s Big Four Banks,
namely BOC, ICBC, and CCB to obtain a syndicated loan of approx. A$200mn for One30 HydePark with a total borrowing cost of below 5% per annum
Aug 2016: Maison 188 Maroubra was launched for presale, and set a new record ASP record inthe vicinity
Nov 2016: Aoyuan successfully acquired two high quality residential projects in Sydney, namelyAltessa 888 Gordon and Mirabell Turramurra, for a total consideration of A$55.5mn (equivalentto approx. RMB288mn)
Dec 2016: Over 90% of One30 Hyde Park has been sold, and over 80% of Maison 188Maroubra has been sold
Mar 2017: Aoyuan acquired 90% equity interest in a quality residential project next toVancouver CBD in Canada for a total consideration of CAD30.6mn (equivalent to approximatelyRMB161mn)
Mar 2017: Maison 188 Maroubra secured preliminary approval from Westpac to fully fund theconstruction of the project
Mar 2017: Altessa 888 Gordon and Mirabell Turramurra are expected to launch for presale
Project name Location Status Product type¹ GFA (sqm) Interest (%)1 Guangzhou Aoyuan Plaza Panyu, Guangzhou Leased C, S 80,500 54%2 Guangzhou Aoyuan Panyu, Guangzhou Leased C, S 8,600 100%3 Shenyang Aoyuan The Metropolis Shenyang, Liaoning Leased H 5,900 100%4 Guangzhou Aoyuan City Plaza Panyu, Guangzhou Leased C, CH 31,300 100%5 Guangzhou Luogang Aoyuan Plaza Huangpu, Guangzhou Leasing C 34,400 60%6 Guangzhou Aoyuan Kangwei Plaza Zengcheng, Guangzhou Leasing C, S 60,000 51%7 Zhuhai Aoyuan Plaza Zhuhai, Guangdong Leasing C, S 53,800 93%8 Chongqing Aoyuan The Metropolis Chongqing Leasing C 15,800 100%9 Chongqing Aoyuan City Plaza Chongqing Leasing C 52,600 100%
10 Chongqing Aoyuan Panlong Yihao Chongqing Leasing C, S 53,700 60%11 Shenyang Aoyuan Convention Plaza Shenyang, Liaoning Leasing C, S 114,200 100%12 Liuyang Aoyuan Plaza Changsha, Hunan Leasing C, S 25,000 100%13 Bengbu Aoyuan Hanlin Yinzuo Bengbu, Anhui Leasing C, S 35,500 100%14 Chengdu Chenghua Aoyuan Plaza Chengdu, Sichuan Leasing C, S 65,000 70%
Maintain its strategy primarily with saleable properties and supplemented by investment properties, commercial auxiliary facilities provide added value of residential properties and diversified income streams
Major investment properties overview
25
Diversified revenue streams
Note 1: C = Commercial; S = Retail shop; CH = Club house; H = Hotel
沈阳奥园会展广场 广州奥园城市天地
广州奥园康威广场 广州萝岗奥园广场
广州奥园广场
重庆奥园国际城
珠海奥园广场
25
Shenyang Aoyuan Convention Plaza
Guangzhou Aoyuan City Plaza
Guangzhou Luogang Aoyuan Plaza Chongqing Aoyuan The Metropolis
Guangzhou Aoyuan Plaza Zhuhai Aoyuan Plaza
Renowned tenants at Guangzhou
Aoyuan Plazawww.aoyuanplaza.com
26
Replicable asset-light operating model
• Total GFA: Approx. 250,000 sqm
• Development model:
Shopping Mall + Themed Shopping Street + Commercial Apartments
• The occupancy rate remains above 95% since opening
Model case: Guangzhou Aoyuan Plaza
• In Dec 2012, the high-end shopping mall of Guangzhou Aoyuan Plazawas officially opened, with a GFA of approx. 80,500 sqm. Three fastfashion tycoons, H&M, ZARA and UNIQLO, have set up their stores.Other domestically and internationally renowned brand names includeVanguard and Stellar International Cineplex, etc.
• In Nov 2014, Aoyuan has successfully invited Huaxia Insurance as astrategic investor of Guangzhou Aoyuan Plaza by means of capitalinjection, thus strengthening cash flows and further facilitating an asset-light operating model
Guangdong
Jiangsu
27
Liaoning
Anhui
As of 31 Dec 2016, Aoyuan had 74 projects with a total GFA of approx. 14.65mn sqm, which is sufficient for development needs in approx. 5 years. The projects are located in Pearl River Delta, core region of Central and Western China, Yangtze River Delta,
Beibuwan and Bohai Rim in China, and currently expands into Sydney, Australia, and Vancouver, Canada
Sufficient and quality Land bank
GuangxiGuangdong
JiangxiChongqing
Jiangsu
Hunan
Liaoning
ZhejiangAnhui
Region City GFA (‘000 sqm)
Guangzhou Guangzhou 1,815.5Subtotal 1,815.5
Shenzhen Shenzhen 217.8Subtotal 217.8
Guangdong(ex-Guangzhou & Shenzhen)
Zhuhai, Guangdong 270.8Foshan, Guangdong 638.6
Zhongshan, Guangdong 182.0Huizhou, Guangdong 339.3
Jiangmen, Guangdong 121.6Yangjiang, Guangdong 313.0
Meizhou, Guangdong 739.5Qingyuan, Guangdong 485.2
Yingde, Guangdong 756.5Yunfu, Guangdong 255.3
Shaoguan, Guangdong 678.7Subtotal 4,780.5
Core region of Central and West China
Chongqing 1,008.4Chengdu, Sichuan 578.1Changsha, Hunan 148.9Zhuzhou, Hunan 697.5Ganzhou, Jiangxi 342.5
Subtotal 2,775.4
Yangtze River Delta
Kunshan, Jiangsu 77.3Yangzhou, Jiangsu 36.5
Jiaxing, Zhejiang 202.3Ningbo, Zhejiang 240.5
Bengbu, Anhui 668.1Subtotal 1,224.7
BeibuwanNanning, Guangxi 773.2
Yulin, Guangxi 1,448.6Subtotal 2,221.8
Bohai Rim Shenyang, Liaoning 1,570.6Subtotal 1,570.6
Australia Sydney, NSW 40.3Subtotal 40.3
Sichuan
15,000
3,564 3,166 2,834 2,577 2,196 1,580 1,384 1,328 1,066 338 307 0
5,000
10,000
15,000
20,000
Shenzhen
Guangzhou
Chongqing
Jiangsu
Sichuan
Zhejiang
Hunan
Anhui
Guangxi
Liaoning
Jiangxi
Average land cost:RMB1,855 per sq.m.
Average land cost by region (China)
Guangdong
(ex-Guangzhou
& Shenzhen
(RMB)
Land bank breakdown by region (by value) Land bank breakdown by city tier (by value)
Tier 1/Int'l cities
38%
Tier 2 cities42%
Lower tier cities 20%Guangzhou
23%
Shenzhen12%
Core region of
Central and West China
22%
Yangtze River Delta
8%
Beibuwan7%
Bohai Rim2%
Australia3%
Guangdong(ex-Guangzhouand Shenzhen)
23%
Land bank breakdown by type (by GFA) Land bank breakdown by status (by GFA)
Residential apartments
63%
Commercial27%
Investment properties
6%
Low density residentials
1%
Auxiliary facilities
3%
Held for future
development50%
Under development
37%
Completed and held for
sale8%
Completed and sold, but yet to be delivered
/Auxiliary facilities5%
Sufficient and quality Land bank (cont.)
(as of 31 Dec 2016)
28
29
Name City Type¹ ApproachAcquired
DateInterest
%
Avg. landcost
(RMB per sqm)
Total GFA (sqm)
Total cost (RMB mn)
Attributable cost
(RMB mn)
1 Ningdu Aoyuan Plaza Ganzhou, Jiangxi C, R Land auction Jan 2016 100% 500 125,900 63 63
2 Shenzhen Aoyuan Jade Bay Shenzhen, Guangdong R Equity acquisition Apr 2016 70% 15,000 217,800 3,267 2,287
3 Chengdu Chenghua Aoyuan Plaza2 Chengdu, Sichuan C, R Equity acquisition Jun 2016 70% 2,577 643,700 1,659 1,161
4 Yulin Aoyuan Plaza Yulin, Guangxi C, R Land auction Jun 2016 100% 870 404,400 352 352
5 Zhongshan Aoyuan Garden Life Zhongshan,Guangdong R Equity acquisition Sep 2016 100% 3,800 44,800 170 170
6 Guangzhou Aoyuan Glorious mansion Zengcheng,Guangzhou R Equity acquisition Oct 2016 100% 4,701 138,300 650 650
7 Wuhua Aoyuan Park Alley Meizhou, Guangdong R Land auction Oct 2016 100% 1,149 25,200 29 29
8 Nanning Aoyuan Yonghe Mansion Nanning, Guangxi C, R Asset Acquisition Oct 2016 100% 940 127,600 120 120
9 Nanning Aoyuan Lion Rock Town Nanning, Guangxi C, R Asset Acquisition Oct 2016 100% 1,104 153,900 170 170
10 Nanning Hande Xuefu Nanning, Guangxi C, R Asset Acquisition Oct 2016 100% 2,267 207,400 470 470
11 Huizhou Aoyuan Yushan Lake3 Huizhou, Guangdong C, R Equity acquisition Nov 2016 100% 2,423 339,200 822 822
12 Altessa 888 Gordon Sydney Sydney, Australia R Land acquisition Nov 2016 100% 16,570 12,800 111 111
13 Turramurra Sydney Project Sydney, Australia R Land acquisition Nov 2016 100% 13,769 6,700 176 176
14 Meizhou Aoyuan Meijiang Tianyun Meizhou, Guangdong R Land auction Dec 2016 100% 1,300 256,000 333 333
15 Foshan Aoyuan Guanhu Shangju Foshan, Guangdong C, R Equity acquisition Dec 2016 100% 2,912 157,900 460 460
16 Ningbo Project Ningbo, Zhejiang C, R Equity acquisition Dec 2016 100% 7,522 240,500 899 899
17 Yangzhou Aoyuan Guanting Yangzhou, Jiangsu C, R Equity acquisition Dec 2016 100% 5,453 36,500 199 199
Total 3,170 3,138,700 9,950 8,472
Disciplined land bank replenishment
High-quality projects successfully acquired in 2016
Note 1: R = Residential; C = Commercial
Note 3: Aoyuan has acquired 100% interests in Huizhou Aoyuan Yushan Lake at a consideration of RMB150mn
Note 2: Aoyuan has acquired 70% interests in Chengdu Chenghua Aoyuan Plaza at a consideration of RMB200mn
Guangzhou23%
Shenzhen10%Core region
of Central and West
China23%
Yangtze River Delta
8%
Beibuwan5%
Bohai Rim5%
Australia4%
Guangdong (ex-Guangzhou and Shenzhen)
22%
30
No. Avg. land cost(RMB per sqm)
Total GFA(sqm)
Total cost(RMB million)
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 3,138,700 9,950
Total 67 2,067 17,589,246 36,300
Breakdown of land bank acquired since IPO (by value)
Disciplined land bank replenishment (cont.)
High-quality projects successfully acquired since IPO
• Proactively optimizing land bank in Tier 1 and 2 cities. Tier1 and 2 cities and international cities accounted for 90% ofnewly acquired land cost in 2016
• Adhered to disciplined land bank replenishment. Theattributable land costs accounted for approx. 33% ofcontracted sales in 2016
• Building a solid foundation for Aoyuan’s strategic andsustainable development in the future
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4. Appendix
31
Company structure
32
Guo Zi Wen/Guo Zi Ning 1
Approx. 52%
Cathay Capital Group
Approx. 13%
Public
Approx. 35%
Note 1: Deemed interests
(as of 31 Dec 2016)
Commercial operations
Property management
Property investment
Property development
Cross-border ecommerce
Corporate milestones
Aoyuan has grown from a leading regional developer in Guangdong to a leading player with presence in five major economic regions including Pearl River Delta, Central & Western China, Yangtze River Delta, Beibuwan and Bohai Rim;
has successfully set up a strategic plan in Australian and Canadian property market, a further step towards global markets
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Chairman Guo Zi Wen introduced the"Sports+Property" developmentconcept, and subsequently the“exercise starts from home" conceptwhich became hugely popular inChina
2006: Cathay Capital Group investedin Aoyuan as a pre-IPO strategicinvestor
Aoyuan instituted a clear strategy of“a leader in composite real estateand an operator of the urbandevelopment in the future”
2007-2011Listed on Main Board of SEHK,
implemented a strategy of “developing commercial and
residential properties in parallel”
1996-2006Pioneered in composite real
estate developmentand had pre-IPO strategic investor
2012-2013: Aoyuan issued its debutUSD Bond in late 2012 andsubsequently tapped the same bondin early 2013, raising an aggregate ofUS$225mn
2013: Raised full year contractedsales target from RMB7.5bn toRMB8.5bn, and surpassed the targetwith RMB10bn, becoming a memberof the over-RMB10bn group
2015: Announced the first overseasproject, One30 Hyde Park Sydney, toopen up overseas markets
2015: Contracted sales amounted toRMB15.2bn, tripling contracted salesof 2012
2012: Successfully exited 8 Chang’anAve Beijing project and receivedapprox. HKD3.2bn and recorded aspecial gain of HKD1.1bn
2012-2015After successfully exited
8 Chang’an Ave Beijing project, business scale grew rapidly
2016 to now Upgrading composite real estate
development model, and promoting parallel development in domestic
and oversea markets
2016: Successfully issued US$250mnsenior notes at par with a record lowcoupon rate of 6.525%
2016: The only mainland developerwhose credit outlook got upgraded to“Positive” by all 3 major internationalrating agencies, namely Moody’s,S&P and Fitch in 2016. Its long-termcorporate credit rating has beenupgraded to “BB-” by Fitch
2016: Entered into Shenzhen,Sichuan and Chengdu successively tofurther optimize land bank in Tier 1/2cities
2016: Contracted sales achievedRMB25.6bn, a fivefold increase ascompared to 2012, exceeding fullyear target by 51%
2017: Acquired high quality project inVancouver, expanded into Canadianmarket
2014: Contracted sales maintainedgrowth momentum and increased22% yoy to RMB12.22bn
2017: The first Asian issuer tocomplete a US$250mn 6.35% seniornotes at par issuing
2017: Obtained approx. HK$1.5bnclub loan from 6 overseas banks
1997: Zi Ye was established in PRC,which marked the beginning ofAoyuan
2007: Geographical reach extendedbeyond Guangdong Province byentering into Guangxi, Shenyang andChongqing, paving the way forAoyuan to become a leading regionaldeveloper
2007: China Aoyuan PropertyGroup Limited (3883.HK) waslisted on the Main Board of SEHK
2011: Entered into Jiangsu and tookadvantage of the growth in theYangtze River Delta Region
2010-2011: Secured HK$990msyndicate loan from 2 overseasbanks
Attracting experienced talents to strengthen professional management team, upholding excellent compliance in corporate governance and high corporate transparency to ensure balanced and sustainable development
Board of Directors
4 Executive Directors, 1 Non-executive Director, and 3 Independent Non-executive Directors
Audit Committee, Remuneration Committee, and Nomination Committee
MA Jun
Executive Director, COO
ZHONG Ping
Executive Director, CFO
GUO Zi Ning
Vice Chairman, CEO
GUO Zi Wen
Chairman, Group Founder
YANG Zhong
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 Property Group
Investment and Fund
Management
Capital markets,Overseas project
development
Financial Management, HR
and Administration Management
Operations Management
Project Management
Brand and Sales & Marketing
AomygodGroup
ZHANG Jun
Vice President
CHEN Yong
Vice President
Jacky CHAN
Vice President
ZHONG Ping
CFO
MA Jun
COO
XIAO Yi
Vice President
MAI Ze Nian
Vice President
MIAO Si Hua
Vice President
34
Professional management team and outstanding corporate governance
35
China promoted the “One Belt, One Road” strategy in 2015, encouraging the development of new businesses such as e-commerce. Currently, out of 7 approved cross-border e-commerce imports trial cities, namely Shanghai, Guangzhou, Shenzhen, Hangzhou, Ningbo, Chongqing and
Zhengzhou, only Guangdong Pilot Free Trade Zone Nansha Area is allowed to develop a public cross-border e-commerce platform
Cross-border e-commerce – Aomygod
Aomygod Cross-border E-commerce Group was founded in Guangdong Pilot Free Trade ZoneNansha Area in 2015. Established mall of Aomygod on online platforms such as official online mall,mobile phone APP, and established cross-border e-commerce offline experiential shops andparallel-imported car exhibition and trade centres in cities such as Guangzhou, Chongqing,Kunming, etc.
Products include thousands of renown brands from over 50 countries such as Australia, Europe,US, Japan and Korea, enabling customers to buy quality goods with supervision, guarantee andtransparent prices
Cross-border e-commerce offline experiential shops help attracting customers and more vendors,driving synergies with real estate business
Aomygod offlineexperiential store
Parallel-imported car exhibition and trade centre Aomygod mobile phone APPAomygod online mall
Company HQ Aoyuan 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
Jacky ChanGroup Vice President, President of Australia Office, Head of Corporate Finance and Investor Relations
HK: (852) 2180 9566
China: (86 20) 3868 6666
Email: [email protected]
IR contacts
Anthony Cheng
Financial Controller
HK: (852) 2180 6981
China: (86 20) 3868 6666
Email: [email protected]
Emma QiDeputy Head of Corporate Finance and
Investor Relations
HK: (852) 2180 9566
China: (86 20) 3868 6666
Email: [email protected]
36
Heng Tam
Assistant Investor Relations Manager
HK: (852) 2180 9566
China: (86 20) 3868 6666
Email: [email protected]
This presentation was prepared by China Aoyuan Property Group Limited (the “Group” or the “Company”) forreference only. This presentation may not be reproduced or redistributed to any persons without explicitauthorization 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 thispresentation (including all forward-looking statements). The information contained in this presentation should beconsidered in the context of the circumstances prevailing at the time of presentation and has not been, and willnot 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. Theseforward-looking statements are based on a number of assumptions about the Company’s operations and factorswhich 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 futureevents or circumstances.
The Company expressly disclaims all the liabilities (in negligence or otherwise) for any loss incurred or sustainedby the participants of this presentation, their employers, entities, agents or any of their related parties as a resultof using the information contained in this presentation.
The materials and information in this presentation are for informational purposes only and do not constitute anoffer or solicitation for the purchases or sale of any securities or financial instruments or to provide any investmentservice or investment advice.
Disclaimer
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