11
2017
Annual Results
Presentation
March 2018
22
Contents
Results Highlights1 3
Financial Overview2 6
Business Operations3 12
Strategic Layout4 22
Appendix5 31
Investor Relations6 35
33
1. Results Highlights
44
• The only PRC developer with credit rating upgrades from all 3 major international rating
agencies since 2016, namely Fitch “BB-”, Moody’s “B1” and S&P “B+”; Domestic credit rating
was upgraded to “AA+” by United Credit Ratings
• As of 31 Dec 2017, net gearing ratio was 51.0% at reasonable industry level, and total
borrowing cost further decreased to 7.2%. Debt structure continued to improve
• Cash collection ratio was 80%, staying at a high industry level; Liquidity remained ample with
total cash of approx. RMB26.54bn
• Contracted sales in 2017 increased by 78% yoy to approx. RMB45.59bn (attributable: 85%),
and achieved 137% of its RMB33.3bn full-year target. CAGR from 2012 to 2017 was 54%
• Contracted sales in Dec 2017 surged by 230% yoy to approx. RMB11.20bn, setting historical
high for single-month sales
• Contracted sales in the first two months of 2018 maintained a strong growth momentum and
surged by 113% yoy to approx. RMB8.11bn
Robust and sustainable contracted
sales growth
• Revenue in 2017 increased by 62% yoy to approx. RMB19.12bn
• Gross profit in 2017 increased by 56% to approx. RMB5.11bn; Gross profit margin was26.7%
• Net profit in 2017 increased by 94% yoy to approx. RMB1.95bn; Core net profit increased by55% yoy to RMB1.89bn
• Recommend a final dividend of RMB25.0 cents per share, representing a 40% dividendpayout ratio for the year, and maintaining a stable dividend policy
Improving profitability and stable dividend
policy
Healthy financial
profile with upgraded
credit ratings
2017 Annual Results Highlights
55
• 13 redevelopment projects are located in Big Bay Area with site area of approx. 1.36mn sqm
and planned total GFA of approx. 5.55mn sqm. 2 to 3 projects are expected to be included
into land bank in 2018
• In addition, 3 redevelopment projects are located in Nanning City, Guangxi Province and
Bazhou City, Hebei Province with site area of approx. 1.21mn sqm and planned total GFA of
approx. 4.98mn sqm, further diversifying land acquisition channels
• Acquired a total of 58 new projects with newly added GFA of approx. 12.86mn sqm (81%
through M&A) and newly added saleable resources of approx. RMB166.9bn. The average
land cost was approx. RMB2,446 per sqm
• As of 31 Dec 2017, total GFA of its land bank was approx. 24.87mn sqm (attributable: 80%)
with saleable resources of approx. RMB282.3bn, sufficient to support the higher sales target
in the coming two years
Proactive land bank
replenishment
• Based in Guangdong with a full coverage in “9+2” cities, Aoyuan seizes the first-mover
advantages and leverage the rapid growth trend in Big Bay Area
• Contracted sales from Big Bay Area amounted to approx. RMB24.28bn, accounting for 53%
of total contracted sales in 2017
• Total GFA of its land bank in Big Bay Area amounted to approx. 7.53mn sqm with total
saleable resources of approx. RMB98.0bn
Key beneficiary of Big Bay Area
with a full coverage
Land bank supports from redevelopment
projects
2017 Annual Results Highlights (cont.)
66
2. Financial Overview
77
(Year ended 31 Dec)
(RMB '000) 2017 2016 Change
Turnover 19,115,255 11,827,268 +62%
Gross profit 5,111,477 3,277,084 +56%
Gross profit margin 26.7% 27.7% -1.0p.p.
Net profit 1,951,952 1,006,608 +94%
Net profit margin 10.2% 8.5% +1.7p.p.
Core net profit(1) 1,889,067 1,223,046 +55%
Core net profit margin 9.9% 10.3% -0.4p.p.
Total dividend per share
(RMB cents)25.0 15.0 +67%
Final dividend per share
(RMB cents)25.0 9.7 -
Special dividend per share
(RMB cents)- 5.3 -
Income statement highlights
Note (1): Excluding non-recurring profit and loss items and their related tax expenses, comprising fair value gain on investment
properties, net exchange gain and loss on early redemptions of senior notes, etc.
88
(RMB '000) At 31 Dec 2017(2) At 31 Dec 2016 Change
Total cash (1) 26,540,063 10,956,456 +142%
Total assets 125,805,861 66,418,413 +89%
Total assets less current
liabilities50,232,707 30,275,816 +66%
Equity attributable to
owners of the Company10,155,036 8,918,093 +14%
Total equity 27,126,290 14,631,293 +85%
Balance sheet highlights
Note:
(1) Total cash = Cash and cash equivalents + Restricted bank deposits. Unrestricted cash accounted for 93% of total cash
(2) As of 31 Dec 2017, credit facilities amounted to approx. RMB51.89bn, of which approx. RMB16.90bn were unutilized
99
At 31 Dec 2017 At 30 Jun 2017 At 31 Dec 2016
Net debt / Total equity(1) 51.0% 63.0% 50.7%
Net debt / Total assets 11.0% 13.6% 11.2%
Net debt / EBITDA(2) 3.5x 4.2x 3.3x
Total liabilities / Total assets 78.4% 78.4% 78.0%
Liquidity ratio(3) 1.5x 1.6x 1.7x
Key financial ratios
Note:
(1) Net debt = Total debt - Total cash
(2) EBITDA = Profit before tax + Finance costs + Depreciation + Amortization
(EBITDA for 30 Jun 2017 is based on the LTM EBITDA up to 30 Jun 2017)
(3) Liquidity ratio = Current assets / Current liabilities
1010
Onshore bank borrowings
47%
Trust loans8%
Onshore corporate
bonds15%
Offshore senior notes
16%
Offshore bank
borrowings14%
2017 Debt breakdown by type
Declining borrowing costs
Debt structure
11.4%
10.2%
9.5%
8.1%
7.2%
6%
8%
10%
12%
2013 2014 2015 2016 2017
• Onshore: 70%
• Offshore: 30%
Note: As of 31 Dec 2017, total debt amounted to approx. RMB40.37bn.
Total cash amounted to approx. RMB26.54bn, sufficient to cover short-
term borrowings of approx. RMB20.49bn
Upgraded credit ratings
✓ The only PRC developer with credit rating upgrades from all 3 majorinternational rating agencies since 2016:
• Fitch “BB-” (Dec 2016); Moody’s “B1” (Mar 2017);S&P “B+” (Jun 2017)
✓ Domestic credit rating was upgraded to “AA+” by United Credit Ratingsin Jun 2017
Close cooperation with banks
Historically low coupon rate
✓ In Sep 2017, successfully issued USD250mn 5.375% senior notes at pardue 2022 which was oversubscribed by 12x
✓ In Jan 2017, became the first Asian issuer to complete USD250mn6.35% senior notes at par due 2020 which was oversubscribed by 10x
✓ In Mar 2018, successfully secured approx. HKD1.6bn three-yearUS/HK dollar dual currency club loan with an interest rate ofLIBOR/HIBOR+3.95% per annum from Nanyang Commercial Bank,Hang Seng Bank and China Minsheng Bank Corporation Hong KongBranch
✓ In Jul 2017, successfully obtained approx. HKD500mn term loan withan interest rate of HIBOR+3.75% by Nanyang Commercial Bank
✓ In Feb 2017, successfully secured approx. HKD1.5bn three-yearUS/HK dollar dual currency club loan with an interest rate ofLIBOR/HIBOR+4.5% per annum from Hang Seng Bank, NanyangCommercial Bank, Bank of East Asia, Chong Hing Bank, ChiyuBanking Corporation and Wing Lung Bank
✓ As of 31 Dec 2017, credit facilities from major banks in China includingBig 4 Chinese banks, Bank of Communications, Ping An Bank, ChinaBohai Bank and China Merchants Bank amounted to approx.RMB51.89bn, of which approx. RMB16.90bn were unutilized
✓ Sydney projects obtained loans from the Big 4 Australian banksincluding Commonwealth Bank of Australia and Westpac BankingCorporation. Canadian projects obtained loans from the Big 5Canadian banks including Bank of Montreal and HSBC. Aoyuan hasbecome one of the few PRC developers who has successfully gainedaccess to local bank financing
1111
10.96
26.54
35.55
24.66
7.90 3.29
-22.16
-16.00
-3.63 -1.67 -1.99
-0.40 -5.00 -2.23 -2.74
0
10
20
30
40
50
60
70
80
90
Openin
g c
ash b
ala
nce
(as o
f 1 J
an)
Opera
ting c
ash flo
w
New
bank b
orro
win
gs
Capita
l inje
ctio
n fro
m n
on
-contro
lling s
hare
hold
er
Pro
ceeds fro
m s
enio
r note
s/
dom
estic
bonds is
suance
Land a
cquis
ition
Constru
ctio
n e
xpenses
Tax e
xpenses
SG
&A
Inte
rest e
xpenses
Div
idend p
aym
ents
Debt re
paym
ent
Redem
ptio
n o
f senio
r note
s
Oth
er c
ash o
utflo
w
Endin
g c
ash b
ala
nce
(as o
f 31 D
ec)
36.47
45.59
0
5
10
15
20
25
30
35
40
45
50
Cash collected Contracted sales
Note (1) : As of 31 Dec 2017, the outstanding land premium was approx. RMB6.25bn which is expected to be fully paid within a year
2017 Cash flow 2017 Cash collection
(RMB billion) (RMB billion)
80%
Cash flow & CAPEX
Aoyuan adheres to a principle of prudent financial management by recycling capital
through rapid presales to ensure a sound financial profile and healthy cash flow
(1)
1212
3. Business Operations
1313
5,251 10,038 12,223 15,171
25,602
45,590
73,000
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
2012 2013 2014 2015 2016 2017 2018 Target
1,1
32
636
880
666
929 1,8
26
1,0
21
1,4
03
1,1
40
1,5
12
1,8
90
2,1
40
1,5
03
707
1,5
46
1,7
32
2,0
73
2,9
67
1,2
25
1,4
33
3,6
31
2,5
05
2,8
86
3,3
93
1,6
88
2,1
04
1,5
46
2,5
11
2,6
30
5,3
20
2,5
31
2,6
55 4,0
81
4,2
80
4,3
22
11,1
96
4,0
50
4,0
55
0
2,000
4,000
6,000
8,000
10,000
12,000
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2015 2016 2017 2018
Yearly contracted sales
(RMB million)
(RMB million)
2018
contracted
sales target
increased by
60% yoy
Robust and sustainable contracted sales growth
Monthly contracted sales
First half of the year Second half of the year
1414
Contracted sales and recognized sales
2,980
4,487
1,607
2,428
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
5,000
2016 2017
Contracted GFA sold Recognized GFA sold
25,602
45,590
11,240
17,960
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
45,000
50,000
2016 2017
Contracted sales Recognized sales
8,591
10,158
6,993 7,397
0
2,000
4,000
6,000
8,000
10,000
12,000
2016 2017
Contracted ASP Recognized ASP
Contracted sales and
recognized sales
(Value)(1)(2)
Contracted sales and
recognized sales
(GFA)
Contracted sales and
recognized sales
(ASP)
(000's sqm) (RMB million) (RMB per sqm)
Note(1): The attributable contracted sales accounts for 85% of contracted sales in 2017, staying at high industry level
Note(2): As of 31 Dec, 2017, contracted sales that were yet to be recognized as revenue amounted to approx. RMB51.6bn
1515
2016 contracted sales: RMB25.60bn 2017 contracted sales: RMB45.59bn
By region By region
2016 contracted sales: RMB25.60bn
By product
2017 contracted sales: RMB45.59bn
By product
Contracted sales breakdown
Guangzhou13%
South China (excl. Guangzhou)
47%
Core region of Central &
Western China24%
East China10%
Bohai Rim2%
Offshore4%
Guangzhou14%
Shenzhen12%
South China (excl. Guangzhou
& Shenzhen)45%
East China11%
Bohai Rim3%
Offshore3%
Residential properties
73%
Commercial properties
27%
Residential properties
77%
Commercial properties
23%
Core
region of
Central &
Western
China
12%
1616
Recognized sales breakdown
2016 recognized sales: RMB11.24bn 2017 recognized sales: RMB17.96bn
2016 recognized sales: RMB11.24bn 2017 recognized sales: RMB17.96bn
By region By region
By product By product
Residential properties
73%
Commercial properties
27%
Guangzhou29%
South China(excl. Guangzhou)
29%
East China13%
Bohai Rim6%
Guangzhou15%
South China(excl.
Guangzhou)47%
Core region of Central &
Western China23%
East China12%
Bohai Rim3%
Residential properties
71%
Commercial properties
29%
Core
region of
Central &
Western
China
23%
1717
Aoyuan maintains flexible CAPEX management and sound cash flows
via managing new starts GFA and completed GFA to adapt to market changes
(000's sqm)
New starts GFA and completed GFA
2,037
3,060
6,650
1,368
2,212
3,605
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
2015 2016 2017
New starts GFA Completed GFA
Shenzhen Aoyuan Jade Bay
1818
Upgraded product and further enhanced competitiveness
Aoyuan’s product quality is well recognized through enhanced value-added content
Guangzhou Aoyuan Lianfeng State was awarded the 54th Gold Nugget Awards
for Best International Residential Project in Jun 2017
珠海奥园广场
Shenzhen Aoyuan Jade Bay
Guangzhou Aoyuan Glorious Mansion Zhuhai Aoyuan Seaview Mountain
Guangzhou Aoyuan Lianfeng State
1919
Upgraded product and further enhanced competitiveness (cont.)
Ningbo Aoyuan Lake Bay
Foshan Aoyuan Peach City Huizhou Aoyuan Yushan Lake
Chengdu Chenghua Aoyuan Plaza
Product quality is well recognized through enhanced value-added content
Guangzhou Aoyuan Lianfeng State was awarded the 54th Gold Nugget Awards
for Best International Residential Project in Jun 2017
2020
Asset-light operating model of commercial development
Successful Model: Guangzhou Panyu Aoyuan Plaza
• Total GFA: approx. 250,000 sqm (Commercial: 100%)
• Development model: Shopping street/ Apartments(sold) + Shopping mall (owned)
• Guangzhou Panyu Aoyuan Plaza shopping mall was opened in Dec 2012. Occupancy
rate is 98%
Successful Replication: Chongqing Aoyuan Panlong Yihao
• Total GFA: approx. 460,000 sqm (Residential: 70%, Commercial: 30%)
• Development model: Residential/ Shopping street/ Offices/ Commercial apartments
(sold) + Shopping mall (owned)
• Chongqing Panlong Aoyuan Plaza was opened in Dec 2017. Occupancy rate is 100%
Project Location Status Product type(1) GFA (sqm) Interest (%)
1 Guangzhou Panyu 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 4,150 100%
4 Guangzhou Aoyuan City Plaza Panyu, Guangzhou Leased C, CH 6,610 100%
5 Chongqing Panlong Aoyuan Plaza Chongqing Leased C, S 53,700 60%
6 Wuhua Aoyuan Plaza Meizhou, Guangdong Leased C, S 25,400 100%
7 Jiaoling Aoyuan Plaza Meizhou, Guangdong Leased C, S 19,100 100%
8 Guangzhou Luogang Aoyuan Plaza Huangpu, Guangzhou Leasing C 34,400 60%
9 Guangzhou Aoyuan Kangwei Plaza Zengcheng, Guangzhou Leasing C, S 60,000 51%
10 Zhuhai Aoyuan Plaza Zhuhai, Guangdong Leasing C, S 66,700 93%
11 Chongqing Aoyuan The Metropolis Chongqing Leasing C 19,250 100%
12 Chongqing Chayuan Aoyuan Plaza Chongqing Leasing C 52,300 51%
13 Shenyang Aoyuan Convention Plaza Shenyang, Liaoning Leasing C, S 114,200 100%
14 Liuyang Aoyuan Plaza Changsha, Hunan Leasing C, S 25,000 100%
15 Bengbu Aoyuan Ginza Bengbu, Anhui Leasing C, S 35,500 100%
16 Chengdu Chenghua Aoyuan Plaza Chengdu, Sichuan Leasing C, S 65,000 70%
Note (1): C = Commercial; S = Retail shop; CH = Club house; H = Hotel
Aoyuan maintains its commercial development strategy of “primarily saleable properties and supplemented by investment properties” to diversify income streams and add values to residential properties
Major investment properties
2121
✓Achieved contracted sales target for three consecutive years: Since the offshore market expansion in 2015, the accumulated contractedsales has exceeded RMB3bn, achieving sales target for three consecutive years
✓Projects have successfully moved into construction phase and demonstrated strong execution : One30 Hyde Park Sydney, Maison188 Maroubra Sydney, and Mirabell Turramurra Sydney have entered into construction phase, and will deliver on time as planned. Aoyuan hasbecome one of the few developers to commence construction among PRC developers in offshore markets
✓Funds from local financing channels: Aoyuan obtained loans for land acquisition and constructions from Big 4 Australian banks includingCommonwealth Bank of Australia and Westpac Banking Corporation for Sydney projects, while loans were obtained for land acquisition fromBig 5 Canadian banks including Bank of Montreal and HSBC for Canadian projects. Aoyuan has established a good credit record locally andbecome one of the few PRC developers that has access to local financing channels in offshore markets
✓Experienced local management team and good relationship with professional consultants: Aoyuan has offshore management teamsconsisting of local professionals with a wealth of experience in property development, operations and financial management, and haveestablished long-term relationships with reputable local professional consultants, enhancing project execution to cater local needs
✓Primarily target local customers: Local buyers accounted for 75% of Aoyuan’s offshore projects, capturing the strong local housing demand
Remarkable development in offshore markets through localization strategies
Aoyuan has established itself as a genuine local developer and achieved remarkable performance
by implementing localization strategies for developing offshore projects
One30 Hyde Park Sydney and its construction progress
(Aoyuan’s first offshore project)Maison 188 Maroubra Sydney and its construction progress
(Aoyuan’s first offshore project developed independently)
2222
4. Strategic Layout
2323
15,000 14,638
5,894
4,124 3,337
2,954 2,800
2,680
2,238
2,190 1,925
1,434
1,335
1,314 919 532 338 337 438
0
5,000
10,000
15,000
20,000
Beijin
g
Shenzhen
Overs
eas
Hubei
Sic
huan
Guangzhou
Zh
ejia
ng
Shandong
Jia
ngsu
Chongqin
g
Fu
jian
Anhui
Hunan
Guangxi
Guiz
hou
Lia
onin
g
Jia
ngxi
Shaanxi
Guangdong
(excl. G
uangzhou &
S
henzhen)
RegionProvince/
City
Contribution
(by total
GFA)
Total GFA
(‘000 sqm)
Expected
Saleable
Resources
(RMB mn)
South China
Guangzhou &
Shenzhen1,890 33,723
Others,
Guangdong8,924 102,630
Guangxi 3,117 23,689
Subtotal 56% 13,931 160,042
Core region
of Central &
Western
China
Chongqing 1,042 7,297
Sichuan 795 8,746
Hunan 2,073 14,719
Hubei 333 3,499
Shaanxi 288 2,650
Jiangxi 250 1,627
Guizhou 302 1,208
Subtotal 20% 5,084 39,746
East China
Zhejiang 665 7,984
Jiangsu 1,342 14,762
Anhui 503 5,528
Fujian 614 8,283
Subtotal 13% 3,124 36,557
Bohai Rim
Liaoning 1,426 7,845
Beijing 176 5,100
Shandong 501 4,505
Subtotal 8% 2,103 17,450
Offshore
Australia 328 13,136
Canada 290 14,511
Macau 8 899
Subtotal 3% 626 28,546
Grand total 100% 24,868 282,341
Average land cost:
RMB2,131 per sq.m.
Average land cost by region
Sufficient and quality land bank
Guangxi Guangdong
JiangxiChongqing
Jiangsu
Hunan
Liaoning
ZhejiangSichuan
Beijing
Hubei
Fujian
Anhui
Based in Guangdong with a main focus on Big Bay Area, Aoyuan has a strategic layout in
South China, core region of Central & Western China, East China and Bohai Rim
As of 31 Dec 2017, Aoyuan had 135 projects with a total GFA of approx. 24.87mn sqm (attributable: 80%) and
total saleable resources of approx. RMB282.3bn, which is sufficient for development needs in approx. three years
Shandong
Shaanxi
Guizhou
Macau
2424
Sufficient and quality land bank (cont.)
Land bank breakdown by region
(by land cost)
Land bank breakdown by region
(by saleable resources)
Land bank breakdown by type
(by GFA)
Land bank breakdown by status
(by GFA)
Residential properties
75%
Commercial properties
19%
Investment properties
3%
Auxilliary facilities
3%
South China55%
Core region of Central &
Western China18%
East China12%
Bohai Rim8%
Offshore7%
South China57%
Core region of Central &
Western China14%
East China13%
Bohai Rim6% Offshore
10%
Held for future
development53%
Under development
36%
Completed and held for
sale7%
Completed and sold, but yet to be
delivered/ Auxiliary facilities
4%
2525
HK-Zhuhai-Macau
Bridge
HK-Zhuhai
(Commence
operation in 2018)
3 hrs 30 mins
Shenzhen-
Zhongshan Bridge(Commence
operation in 2024)3 hrs 30 mins
Zhongshan-
Shenzhen
18 mins45 mins
2 hrs 48 mins
HK-Guangzhou
Guangzhou-Shenzhen-
Hong Kong
High Speed Rail
Inter-city railway
3,200km
(2016)
4,400km
(2020)
Expressway
~5,600km
(2016)
~8,800km
(2020)
Construction of
“1 Hour Living
Circle” through
integration
(HK section to
commence operation
in 2018)
1.5(+3.5%) 1.34
(+7.9%)1.3
(+3.6%)
0.8(+2.7%)
0
0.4
0.8
1.2
1.6
纽约湾区 东京湾区 旧金山湾区
GDP and GDP Growth in 2016
Big Bay
Area
Guangdong-Hong Kong-Macau Big Bay Area:China’s new economic growth engine
The “9+2”city cluster in Big Bay Area possesses strong economic power, high aggregation of industries, close connection to
inland areas and high openness to the world. It will grow into a top international bay area and a world-class metropolitan cluster,
serving as a key growth engine for China’s economic development
Source: China Index Institute
Up
gra
de
d fro
m re
gio
na
l co
op
era
tion
pla
n to
na
tion
al s
trate
gy
Enhanced industrial upgrade
and market integration
Eastern
region
HKGlobal financial, shipping and
trading hub
ShenzhenInternational innovative
services center
DongguanGlobal smart manufacturing
powerhouse
Huizhou World-class base for
petrochemical industry
Central
region
Guangzhou
Lingnan cultural center and
South China heavy industries
center
Foshan International manufacturing
center
ZhaoqingHub for transformation and
upgrade of traditional industries
Western
region
Macau Leisure and tourism hub
ZhuhaiNational equipment
manufacturing center
ZhongshanOne of the appliances base in
China
JiangmengNational advanced
manufacturing base
(USD tn)
NY Bay
Area
Tokyo Bay
Area
San Francisco
Bay Area
2004
• Release of the first regional ministry-province cooperation plan--Pearl
River Delta Urban Agglomeration Coordinated Development Plan
2008
• The State Council released “Reform and Development Plan of the Pearl River Delta Region (2008-2020)” to encourage Guangdong, Hong Kong and Macau to develop regional coordinated development plans
2010
• Key Action Plan for the Construction of Livable Bay Area in the Pearl River Delta Region jointly formulated by the governments of Guangdong, Hong Kong, and Macau
2014
• Concept of "Bay Area Economy“ was first mentioned in the Shenzhen
Government Work Report
2015
• Release of “Vision and Action to Promote the Construction of the Silk Road Economic Belt and the 21st Century Maritime Silk Road”, enhancing the construction of Guangdong-Hong Kong-Macau Big Bay Area into a national strategic plan
2016
• Construction of Guangdong-Hong Kong-Macau Big Bay Area was
included into the National 13th 5-Year Plan
2017
• In March, the State Council’s Government Work Report mentioned “research and formulation of development plan in Big Bay Area”
• The “Framework Agreement for Deepening the Cooperation between Guangdong, Hong Kong and Macau to Promote the Construction of the Big Bay Area” was signed in July
2018
• “Development Plan of the City Cluster in Guangdong-Hong Kong-Macau Big Bay Area” will be released soon; establishment of a world-class Bay Area will evolve from strategic planning into full-speed implementation
HK-Shenzhen
2626
Benefiting from national policies, Aoyuan seizes the first-mover advantages and
leverage the rapid growth trend with a full coverage of “9+2” cities in Big Bay Area
First mover in Big Bay Area with a full coverage
CityTotal GFA
(‘000 sqm)
Total Saleable
Resources
(RMB bn)
Guangzhou 1,600 24.8
Shenzhen 290 9.3
Zhuhai 492 8.5
Foshan 1,037 13.5
Huizhou 1,372 15.5
Dongguan 290 3.5
Zhongshan 257 3.0
Jiangmen 1,735 15.0
Zhaoqing 453 4.0
Hong Kong & Macau 8 0.9
Total 7,534 98.0
✓ Headquartered in Guangzhou with a strong
presence in Guangdong, Aoyuan has abundant
local resources and experiences, including land,
talents, network and capital
✓ Contracted sales from Big Bay Area reached
RMB24.3bn in 2017, accounted for 53% of total
contracted sales
✓ Aoyuan has a total of 50 projects covering all “9+2”
cities in Big Bay Area. Total GFA of land bank is
approx. 7.53mn sqm with total saleable resources of
approx. RMB98.0bn
Jiangmen
Zhaoqing
Foshan
Dongguan
Shenzhen
Hong Kong
Zhuhai
Huizhou
Shenzhen –
Zhongshan Bridge
Zhongshan
Macau
Hong Kong–Zhuhai–
Macau Bridge
Guangzhou
Guangzhou
Jiangmen
Zhongshan
Shenzhen Zhuhai
Huizhou
Foshan
Dongguan
MacauZhaoqing
2727
Aoyuan has 16 redevelopment projects at different phases in Big Bay Area and other regions
with planned total GFA of approx. 10.53mn sqm
Project City Type StatusSite Area
(‘000 sqm)
Planned Total GFA
(‘000 sqm)
1 Guangzhou Panyu Nitrogen Fertilizer Plant Guangzhou, Guangdong Old factory Redevelopment planning application 150 300
2 Zhuhai Cuiwei Village Zhuhai, Guangdong Old village Redevelopment planning application 310 1,470
3 Zhuhai Shuiwengkeng Village Zhuhai, Guangdong Old village Redevelopment planning application 90 360
4 Zhuhai Gongbei Lian’an Village Zhuhai, Guangdong Old villageGovernment approval;
Compensation agreement90 390
5 Zhuhai Gongbei Guanzha Village Zhuhai, Guangdong Old villageGovernment approval;
Compensation agreement70 370
6 Zhuhai Gongbei Gaosha Village Zhuhai, Guangdong Old villageGovernment approval;
Compensation agreement60 390
7 Zhuhai Xiaxu Village Zhuhai, Guangdong Old village Redevelopment planning application 70 430
8 Zhuhai Qianshan Anlian Road Zhuhai, Guangdong Old factory Redevelopment planning application 10 80
9 Zhuhai Yafang Building Zhuhai, Guangdong Old factory Redevelopment planning application 10 70
10 Zhuhai Pingsha Aoyuan Plaza Zhuhai, Guangdong Old factory Redevelopment planning application 150 610
11 Zhuhai Jianghai Electronics Factory Zhuhai, Guangdong Old factory Cooperation agreement 50 330
12 Dongguan Pailouji Village Dongguan, Guangdong Old village Decision on early-stage partner 100 250
13 Dongguan Shimei Village Dongguan, Guangdong Old village Decision on early-stage partner 200 500
14 Nanning Nantang project Nanning, Guangxi Old village Redevelopment planning application 290 1,160
15 Nanning Chendong Village Nanning, Guangxi Old village Redevelopment planning application 760 3,420
16 Hebei Bazhou Bazhou, Hebei Old village Redevelopment planning application 160 400
Total 2,570 10,530
Redevelopment projects in Big Bay Area and other regions
Cooperation agreementConfirm
redevelopment planRedevelopment
planning application
State-owned land ownership
certificate
Villagers’ general assembly to decide on
redevelopment
Villagers’ general assembly to
decide on early-stage partner
Redevelopment planning
application
Government approval;
Compensation agreement
State-owned land ownership
certificate
1-3 months
Case study 1: Redevelopment and transformation timetable for old factories in Zhuhai
Case study 2: Redevelopment timetable for old villages in Zhuhai
1-3 months 1-3 months 1-3 months
1-3 months 1-3 months 3-6 months 1-3 months6-9 months
2828
Redevelopment projects in Big Bay Area and other regions (cont.)
Case study 3: Zhuhai Aoyuan Plaza
• Type: Old factory redevelopment
• Total GFA: 271,000 sqm
• Avg. land cost: RMB2,732 per sqm
• Accumulated ASP: RMB20,132 per sqm
• Accumulated contracted sales: approx. RMB4.23bn
• Redevelopment timetable:
✓ Dec 2014: Redevelopment planning applicationsubmitted
✓ Mar 2015: Redevelopment planning application toZhuhai City Planning Commission
✓ Jun 2015: Land transfer contract signed
✓ Jul 2015: Obtained land ownership certificate
✓ Oct 2015: Launched for presales
Case study 4: Guangzhou Luogang Aoyuan Plaza
• Type: Old village + old factory redevelopment
• Total GFA: 334,000 sqm
• Avg. land cost: RMB4,858 per sqm
• Accumulated ASP: RMB16,493 per sqm
• Accumulated contracted sales: approx. RMB4.31bn
• Redevelopment timetable:
✓ Jun 2012: Signed cooperation agreement withvillage
✓ Jun 2012: Redevelopment plan approved
✓ Jun 2013: Phase 1 (old village for open auction)
✓ May 2014: Phase 2 (old factory for open auction)
✓ Jun 2014: Launched for presales
Zhuhai Aoyuan Plaza and its construction progress
(Aoyuan Zhuhai redevelopment project)
Guangzhou Luogang Aoyuan Plaza and its construction progress
(Aoyuan Guangzhou redevelopment project)
2929
In 2017, Aoyuan acquired 58 projects with newly added GFA of approx. 12.86mn sqm (M&A: 81%) and newly added saleable
resources of approx. RMB166.9bn, sufficient to support higher sales targets in the coming two years at reasonable cost
Proactive land bank replenishment
Region Province/ City
Avg. land
cost
(RMB/sqm)
Total GFA
(‘000 sqm)
Attributable
GFA
(‘000 sqm)
Attributable
land cost
(RMB mn)
Interest (%)
South
China
Big Bay Area 2,640 4,574 2,755 7,000 60%
Guangdong
(excl. Big Bay Area)1,591 630 503 919 80%
Guangxi 1,229 1,129 825 1,261 73%
Subtotal 2,285 6,333 4,083 9,180 64%
Core
region of
Central &
Western
China
Chongqing 1,626 497 337 584 68%
Sichuan 5,113 238 238 1,218 100%
Hunan 1,198 1,397 958 1,021 69%
Hubei 4,124 333 333 1,375 100%
Guizhou 532 302 302 161 100%
Shaanxi 438 288 147 126 51%
Subtotal 1,755 3,055 2,315 4,485 76%
East
China
Zhejiang 3,355 315 248 1,008 79%
Jiangsu 2,216 1,246 908 2,355 73%
Fujian 1,413 650 395 603 61%
Subtotal 2,142 2,211 1,551 3,966 70%
Bohai RimBeijing 14,934 176 176 2,638 100%
Shandong 2,680 500 385 1,117 77%
Subtotal 5,866 676 561 3,755 83%
Offshore
Australia 1,328 288 288 382 100%
Canada 7,195 290 290 2,088 100%
Macau 58,065 8 4 248 55%
Subtotal 4,984 586 582 2,718 99%
Grand total 2,446 12,861 9,092 24,104 71%
Regional distribution (by GFA)
Regional distribution (by land cost)
South China49%
Core region of Central & Western
China24%
East China17%
Bohai Rim5%
Offshore5%
South China46%
Core region of Central &
Western China17%
East China15%
Bohai Rim13%
Offshore9%
3030
High-quality projects
successfully acquired since IPO
No.
Avg. land
cost
(RMB/sqm)
Total GFA
(sqm)
Total cost
(RMB mn)
2008 2 369 341,483 126
2009 4 876 3,583,868 3,138
2011 7 2,933 1,268,457 3,721
2012 8 2,178 1,874,914 4,084
2013 8 2,245 2,232,579 5,013
2014 8 1,715 2,657,445 4,557
2015 13 2,312 2,491,800 5,761
2016 17 3,170 3,138,700 9,950
2017 58 2,446 12,861,278 31,458
Total 125 2,227 30,450,524 67,808
Proactive land bank replenishment (cont.)
Breakdown of land bank acquired since IPO
(by land cost)
South China52%
Core region of Central &
Western China20%
East China12%
Bohai Rim10%
Offshore6%
• As of 31 Dec 2017, land bank in Tier 1 and 2 cities and its
surrounding city clusters accounted for 82% of total land cost
• Aoyuan implements a balanced city layout with a main focus
on Big Bay Area while further expanding in East China and
core region of Central & Western China. Aoyuan adheres to
a disciplined land bank replenishment strategy, building a
solid foundation for the strategic and sustainable
development in the future
3131
5. Appendix
3232
Shareholding structure
Guo Zi Wen/Guo Zi Ning*Deemed interests
Approx. 54%
Public
Approx. 46%
(As of 14 Mar 2018)
✓ In Jan 2018, Chairman Guo Zi Wen acquired 1mn shares at an average price of approx. HKD5.93 per share, with atotal consideration of HKD5.93mn, and his shareholding was approx. 54%
✓ In Mar 2017, Chairman Guo Zi Wen acquired approx. 53.43mn shares at an average price of approx. HKD2.40 pershare, with a total consideration of HKD128mn, and his shareholding increased to approx. 54%
✓ In Nov 2016, Aoyuan repurchased approx. 112mn shares at an average price of approx. HKD1.68 per share, with atotal consideration of HKD188mn (approx. 4% of the entire issued share capital of Aoyuan)
✓ In Aug 2015, Chairman Guo Zi Wen acquired approx. 55.12mn shares at an average price of approx. HKD1.65 pershare, with a total consideration of HKD91.41mn, and his shareholding increased to approx. 50%
✓ In Jul 2014, Chairman Guo Zi Wen acquired approx. 56.23mn shares at an average price of approx. HKD1.55 pershare, with a total consideration of HKD86.97mn, and his shareholding increased to approx. 48%.
While maintaining a stable dividend policy, Chairman of Aoyuan has demonstrated strong confidence in
Aoyuan’s long term development and prospects through rounds of share purchases and buybacks
3333
Aoyuan: Breakthrough to Success
Pioneer
(开创)
Founded in 1996, Aoyuan first introduced the "Sports + Property“ development
concept with its branding philosophy of “Building a Healthy Lifestyle”. As a pioneer in
composite real estate development in China, Aoyuan has successfully developed
composite real estate projects with themes of education, regimen and healthcare,
and commercial, etc.. Aoyuan was listed on the Main Board of SEHK in 2007
Aoyuan received approx. HKD3.2bn in cash and recorded special gains of HKD1.1bn
by successfully exiting 8 Chang’an Ave Beijing project in 2012. Aoyuan was ready to
unleash its potential, and persist with further breakthroughs. In the same year,
Aoyuan successfully issued its first USD senior notes in the international capital
markets. In 2013, contracted sales exceeded RMB10bn and more professional
managers were attracted to join Aoyuan
In 2017, Aoyuan achieved contracted sales of RMB45.6bn with a growth rate of 78%
yoy, representing a CAGR of 54% from 2012 to 2017. Monthly contracted sales in
December 2017 amounted to RMB11.2bn, setting a historical high for single-month
sales. The 2018 full-year contracted sales target is set to be RMB73bn
The only PRC developer with credit rating upgrades from all 3 major international
rating agencies since 2016, namely Fitch, Moody’s and S&P; Domestic credit ratings
was also upgraded by United Credit Ratings. With financing cost optimization and
soaring share price, following the recent inclusion in the Shenzhen-Hong Kong Stock
Connect, Aoyuan is regarded as one of the best performing PRC property developer,
reaffirming its outstanding track records and financing capabilities in capital markets
Breakthrough
(破茧)
Take-off
(起飞)
Upgrade
(跃升)
3434
Board of Directors
4 Executive Directors and 3 Independent Non-executive Directors
Audit Committee, Remuneration Committee, and Nomination Committee
Senior Management
Financial
and Fund
Management
Investment
and Fund
Management
Capital Markets,
International
Investment Group
Financial Management, HR& Administration
Management
Operations
Management
Project
Management
Commercial
Group
Design
and R&D
CHEN Zhi Bin
Vice President
CHEN Yong
Vice President
Jacky CHAN
Vice President
ZHONG Ping
CFO
MA Jun
COO
XIAO Yi
Vice President
ZHANG Jun
Vice President
GAO Xiang Dong
Assistant to
President
ZHONG Ping
Executive Director,
CFO
MA Jun
Executive Director,
COO
GUO Zi Ning
Vice Chairman,
CEO
GUO Zi Wen
Chairman,
Group Founder
CHEUNG
Kwok Keung
Independent Non-
executive Director
TSUI King Fai
Independent Non-
executive Director
HU Jiang
Independent Non-
executive Director
Attracting experienced talents to strengthen professional management team,
upholding excellent compliance in corporate governance and maintaining high corporate transparency
to enhance the core competitiveness and ensure balanced and sustainable development
Professional management team and outstanding corporate governance
3535
6. Investor Relations
3636
Mainland China & Hong
Kong 71%
Asia Pacific (excl.
Mainland China & Hong
Kong )15%
Europe7%
America7%
IR management
Committed to professional and effective investor relations management, Aoyuan strives to maintain a long-
term interactive relationship with investors. Aoyuan upholds an open and candid attitude to listen to
the capital markets and maintain a high level corporate transparency and corporate governance
Close and two-way communication with investors 2017 Investor relations activities in 2017
Investment institutions by region Investment institutions by investor type
Management meeting
212 times
Telephone/ video
conference23 times
Investor roadshow17 times
Investor conference
11 times
Project site visit10 times
Investor briefing and press conference
4 times
Equity 52%
Bond48%
✓ Organized and participated in a total of 277 investor relations
activities in 2017, including 212 management meetings, 23
telephone/ video conferences, 4 investor briefings and press
conferences, 10 site visits, 11 investor conferences and 17
investor roadshows held in Hong Kong, Singapore, Europe,
Shenzhen, Shanghai and Beijing, etc
✓ Met and communicated with 967 institutional investors from 654
investment institutions in 2017 to enhance investor’s awareness
of latest development in business performance, operating
conditions and development strategies, to understand capital
market views and provide timely feedback to top management
3737
IR management (cont.)
Results Briefing
Results Briefing
Annual General Meeting
Annual General Meeting
Investor Conference
Reverse Roadshow
Investor Roadshow
Investor RoadshowInvestor Site Visit
Committed to professional and effective investor relations management, Aoyuan strives to maintain a long-
term interactive relationship with investors. Aoyuan upholds an open and candid attitude to listen to
the capital markets and maintain a high level corporate transparency and corporate governance
3838
Company HQAoyuan Mansion, No.108,
Huangpu Avenue West, Tianhe, Guangzhou
HK OfficeUnit 1901-02, 19/F, One Peking,
No.1 Peking Road, T.S.T, Hong Kong
E-mail [email protected]
Jacky Chan
Group Vice President
President of International Investment Group
HK: (852) 2180 9566
China: (86 20) 3868 6666
Email: [email protected]
Anthony Cheng
Financial Controller
HK: (852) 2180 6981
China: (86 20) 3868 6666
Email: [email protected]
Emma Qi
Deputy Head of Corporate Finance and
Investor Relations
HK: (852) 2180 9566
China: (86 20) 3868 6666
Email: [email protected]
Heng Tam
Assistant Investor Relations Manager
HK: (852) 2180 9556
China: (86 20) 3868 6666
Email: [email protected]
IR contacts
Aoyuan WeChat
Official Account
Aoyuan Club WeChat
Subscription Account
Follow us on:
3939
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