43
1 1 2017 Interim Results Presentation Aug 2017
11
2017
Interim Results
PresentationAug 2017
22
Contents
Results Highlight1 3
Financial Overview2 7
Business Operations3 13
Strategic Layout4 24
Appendix5 37
33
1. Results Highlights
44
Aoyuan: Breakthrough to Success
Pioneer
(开创)
Founded in 1996, Aoyuan first introduced the "Sports+Property" development
concept and pioneered in composite real estate development with its branding
philosophy of “Building a Healthy Lifestyle”; 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
Contracted sales was growing at a CAGR of 49% from 2012 to 2016. Aoyuan
completed contracted sales of approximately RMB19.05bn for the first seven months
of 2017, or a 62% yoy growth
The only PRC developer with credit rating upgrades from all 3 major international
rating agencies, namely Fitch “BB-”, Moody’s “B1” and S&P “B+”, since 2016;
Domestic credit rating was also upgraded to “AA+” by United Credit Ratings,
reaffirming its excellent track record and financing capacity both in domestic and
overseas markets
In addition to proactively optimizing land bank in Tier 1 and 2 cities of PRC, Aoyuan
has successfully expanded into Australia and Canada through localization strategies
and is building an international brand, further promoting parallel development in
domestic and overseas markets
Breakthrough
(破茧)
Takeoff
(起飞)
Upgrade
(跃升)
Internationalization
(国际化)
55
• The only PRC developer with credit rating upgrades from all 3 major international rating
agencies, namely Fitch “BB-”, Moody’s “B1” and S&P “B+”, since 2016; Domestic credit
rating was upgraded to “AA+” by United Credit Ratings
• As of 30 Jun 2017, net gearing ratio was 63% at healthy industry level; Total borrowing cost
decreased to 7.6%
• As of 30 Jun 2017, cash collection ratio was 86%, staying at high industry level; Total cash
was approx. RMB14.81bn
• Contracted sales in 1H2017 surged by 57% yoy to approx. RMB16.52bn (attributable: 88%),
achieving 50% of full-year target of RMB33.3bn
• Contracted sales in June 2017 increased by 79% yoy to approx. RMB5.32bn and set a new
record of monthly sales
Robust contracted
sales growth
• Revenue in 1H2017 increased by 26% yoy to approx. RMB8.15bn
• Gross profit in 1H2017 increased by 35% to approx. RMB2.19bn; Gross profit margin
increased by 1.9 p.p. to approx. 26.9%
• Net profit in 1H2017 increased by 43% to approx. RMB858mn; Core net profit increased by
27% to RMB832mn
Improving profitability
Healthy financial profile
upgraded credit ratings
2017 Interim Results Highlights
66
• Successfully expanded into Australia in 2015 and then into Canada in 1H2017, promoting
parallel development in domestic and overseas markets through localization strategies
• Commenced work in One30 Hyde Park, Maison 188 Maroubra and Mirabell Turramurra
successively, which are expected to be completed in 2018, making Aoyuan one of the few
PRC developers in Australia to reach construction phase
• With a main focus on Tier 1 and 2 cities, supplemented by Tier 3 and 4 cities; Based in
Guangdong, with a strategic layout in Guangdong-Hong Kong-Macau Big Bay Area
• Acquired 20 new projects with total GFA of approx. 3.70mn sqm through land auctions and
acquisitions
• As of 30 Jun 2017, total GFA of its land bank was approx. 17.12mn sqm with a saleable
resources of RMB162.8bn, sufficient for the development needs in the next 3-4 years
Strategic land bank
replenishment
• A total of 40 projects with total GFA of 4.80mn sqm are strategically distributed in 8 of the
cities in Big Bay Area, namely Guangzhou, Shenzhen, Zhuhai, Foshan, Huizhou,
Zhongshan, Jiangmen and Dongguan
• Contracted sales from Big Bay Area amounted to RMB9.93bn and accounted for 60% of total
contracted sales in 1H2017
• 10 redevelopment projects with total planned GFA of 4.22mn sqm in Big Bay Area
Seizing opportunities
in Big Bay Area
International-izing Aoyuan’s
brand
2017 Interim Results Highlights (cont.)
77
2. Financial Overview
88
(6 months ended 30 Jun)
(RMB '000) 2017 2016
Turnover 8,154,290 6,479,513
Gross profit 2,191,425 1,622,329
Gross profit margin 26.9% 25.0%
Net profit 858,481 601,296
Net profit margin 10.5% 9.3%
Core net profit(1) 832,102 653,347
Core net profit margin 10.2% 10.1%
Income statement highlights
(Year ended 31 Dec)
2016
11,827,268
3,277,084
27.7%
1,006,608
8.5%
1,246,532
10.5%
Note (1): Excluding fair value gain on investment properties, loss on early redemptions of senior notes, net exchange gain and loss on
change in fair value of derivative financial instruments
99
(RMB '000) 30 Jun 2017(2) 31 Dec 2016 30 Jun 2016
Total cash(1) 14,813,986 10,956,456 10,211,354
Total assets 84,757,887 66,418,413 58,527,399
Total assets less current
liabilities37,177,923 30,275,816 30,353,907
Equity attributable to
owners of the Company9,263,975 8,918,093 8,635,738
Total equity 18,281,369 14,631,293 14,433,093
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 30 Jun 2017, credit facilities amounted to approx. RMB57.11bn, of which approx. RMB29.96bn were unutilized
1010
30 Jun 2017 31 Dec 2016 30 Jun 2016
Net debt / Total equity(1) 63.0% 50.7% 56.0%
Net debt / Total assets 13.6% 11.2% 13.8%
Net debt / EBITDA(2) 4.2x 3.3x 3.8x
Total liabilities / Total assets 78.4% 78.0% 75.3%
Liquidity ratio(3) 1.6x 1.7x 1.9x
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
1111
Onshore bank borrowings
36%
Trust loans9%
Onshore corporate
bonds23%
Offshore senior notes
19%
Offshore bank
borrowings13%
1H2017 Debt breakdown by type
Declining borrowing costs
Debt structure
Upgraded credit ratings
✓ The only PRC developer with credit rating upgrades from all 3major international rating agencies
• Fitch “BB-” (Dec 2016); Moody’s “B1” (Mar 2017);S&P “B+” (Jun 2017)
✓ Domestic credit rating was upgraded to “AA+” by United CreditRatings in Jun 2017
Cooperate closely with banks
✓ In Feb 2017, secured approx. HKD1.5bn 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, Bankof East Asia, Chong Hing Bank, Chiyu Banking Corporationand Wing Lung Bank
✓ In Jul 2017, obtained approx. HKD500mn term loan with aninterest rate of HIBOR+3.75% by Nanyang Commercial Bank
✓ Obtained a syndicated loan of approx. AU$200mn for One30Hyde Park from the Commonwealth Bank of Australia (CBA)in 2H2016; Maison 188 Maroubra and Mirabell Turramurraobtained 100% construction loan from Westpac BankingCorporation in 1H2017. Aoyuan has become one of the fewPRC developers who has gained access to local bankfinancing in Australia
Replaced high-cost debt
✓ In Jan 2017, became the first Asian issuer to completeUS$250mn 6.35% senior notes at par due 2020 which wasoversubscribed by 10x
✓ In Feb 2017, redeemed US$300mn 11.25% senior notes
11.4%
10.2%
9.5%
8.1%7.6%
6%
8%
10%
12%
2013 2014 2015 2016 1H2017
• Onshore: 68%
• Offshore: 32%
Note: As of 30 Jun 2017, total borrowings amounted to approx. RMB26.33bn, total cash amounted to approx. RMB14.81bn, which is 1.5x of short-term borrowings, sufficient to cover short-term borrowings of approx. RMB9.76bn
1212
10.96
14.81
14.21
10.10 1.89 1.69 0.10 2.05
7.67
7.88
1.32 0.65 0.73 1.66
2.18
0
10
20
30
40
50
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
Oth
er c
ash flo
w
Acquis
ition/ la
nd a
uctio
n
guara
nte
e
Land a
cquis
ition
Constru
ctio
n e
xpenses
Tax e
xpenses
SG
&A
Inte
rest e
xpenses
Debt re
paym
ent
Redem
ptio
n o
f senio
r note
s
Endin
g c
ash b
ala
nce
(as o
f 30 J
un)
14.21
16.52
0
4
8
12
16
20
Cash collected Contracted sales
Note (1) : As of 30 Jun 2017, the outstanding land premium was approx. RMB3.33bn which is expected to be fully paid within a year
1H2017 Cash flow 1H2017 Cash collection
(RMB billion) (RMB billion)
86%
Cash flow & CAPEX
Aoyuan adheres to the principle of prudent financial management by recycling capital
through rapid presales to ensure a sound financial profile and healthy cash flow
(1)
1313
3. Business Operations
1414
5,251
10,038 12,223
15,171
25,602
33,300
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
2012 2013 2014 2015 2016 2017 Target
16,520
977
405
707
519
817
1,7
22
856
503
878
1,2
30
2,1
30
1,5
00
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
,546
1,7
32
2,0
73 2
,967
1,2
25
1,4
33
3,6
31
2,5
05
2,8
86
3,3
93
1,6
88
2,1
04
2,2
66
2,5
11
2,6
30
5,3
20
2,5
31
0
1,000
2,000
3,000
4,000
5,000
6,000
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec2014 2015 2016 2017
Yearly contracted sales
(RMB million)
(RMB million)
Contracted
sales in
1H2017
completed
50% of full
year target
Robust contracted sales growth
Monthly contracted sales
First half of the year Second half of the year
1515
Contracted sales and recognized sales
1,286
1,563
822
1,114
0
300
600
900
1,200
1,500
1,800
1H2016 1H2017
Contracted GFA sold Recognized GFA sold
10,528
16,520
6,306
7,675
0
3,000
6,000
9,000
12,000
15,000
18,000
1H2016 1H2017
Contracted sales Recognized sales
8,184
10,571
7,670
6,893
0
2,000
4,000
6,000
8,000
10,000
12,000
1H2016 1H2017
Contracted ASP Recognized ASP
Contracted sales and
recognized sales
(Value)(1)
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 88% of contracted sales in 1H2017
1616
1H2016 contracted sales: RMB10.53bn 1H2017 contracted sales: RMB16.52bn
By region By region
1H2016 contracted sales: RMB10.53bn
By product
1H2017 contracted sales: RMB16.52bn
By product
Contracted sales breakdown
Guangzhou16%
South China (excl. Guangzhou)
44%
Core region of Central &
Western China24%
East China
9%
Bohai Rim3%
Australia4%
Guangzhou18%
Shenzhen22%
South China (excl. Guangzhou
& Shenzhen)32%
East China
6%
Bohai Rim3%
Australia3%
Residential properties
69%
Commercial properties
31%
Residential properties
68%
Commercial properties
32%
Core
region of
Central &
Western
China
16%
1717
Recognized sales breakdown
1H2016 recognized sales: RMB6.31bn 1H2017 recognized sales: RMB7.68bn
1H2016 recognized sales: RMB6.31bn 1H2017 recognized sales: RMB7.68bn
By region By region
By product By product
Residential properties
75%
Commercial properties
25%
Guangzhou44%
South China(excl. Guangzhou)
27%
East China14%
Bohai Rim2%
Guangzhou20%
South China(excl.
Guangzhou)30%
Core region of Central &
Western China31%
East China14%
Bohai Rim5%
Residential properties
60%
Commercial properties
40%
Core
region of
Central &
Western
China
13%
1818
Aoyuan maintains flexible CAPEX management and sound cash flows
via managing its new starts GFA and completed GFA to adapt to market changes
(000's sqm)
New starts GFA and completed GFA
2,037
3,060
2,749
1,368
2,212
1,593
0
500
1,000
1,500
2,000
2,500
3,000
3,500
2015 2016 1H2017
New GFA start GFA completion
Shenzhen Aoyuan Jade Bay
1919
珠海奥园广场珠海奥园广场
Upgraded product and further enhanced competitiveness
Awarded the 54th Gold Nugget Awards for
Best International Residential Project
Enhancing value added content of products by
providing more finely decorated apartments
and paying greater attention to details
Guangzhou Aoyuan Lianfeng State Shenzhen Aoyuan Jade Bay
2020
Replicable asset-light operating model
Model case: Guangzhou Aoyuan Plaza Major investment properties overview
Note (1): C = Commercial; S = Retail shop; CH = Club house; H = Hotel
Project name Location StatusProduct type(1)
GFA (sqm)
Interest (%)
1 Guangzhou Aoyuan PlazaPanyu,
GuangzhouLeased C, S 80,500 54%
2 Guangzhou AoyuanPanyu,
GuangzhouLeased C, S 8,600 100%
3Shenyang Aoyuan The Metropolis
Shenyang, Liaoning
Leased H 5,900 100%
4Guangzhou Aoyuan City Plaza
Panyu, Guangzhou
Leased C, CH 6,300 100%
5Guangzhou LuogangAoyuan Plaza
Huangpu, Guangzhou
Leasing C 34,400 60%
6Guangzhou Aoyuan Kangwei Plaza
Zengcheng, Guangzhou
Leasing C, S 60,000 51%
7 Zhuhai Aoyuan PlazaZhuhai,
GuangdongLeasing C, S 66,700 93%
8Chongqing Aoyuan The Metropolis
Chongqing Leasing C 19,250 100%
9Chongqing Aoyuan City Plaza
Chongqing Leasing C 52,300 100%
10Chongqing AoyuanPanlong Yihao
Chongqing Leasing C, S 53,700 60%
11Shenyang Aoyuan Convention Plaza
Shenyang, Liaoning
Leasing C, S 114,200 100%
12 Liuyang Aoyuan PlazaChangsha,
HunanLeasing C, S 25,000 100%
13 Bengbu Aoyuan GinzaBengbu, Anhui
Leasing C, S 35,500 100%
14Chengdu ChenghuaAoyuan Plaza
Chengdu, Sichuan
Leasing C, S 65,000 70%
• Total GFA: approx. 250,000 sqm
• Development model: Shopping Mall (owned) + Shopping Street (sold) + Apartments (sold)
Renowned
tenants at
Guangzhou Aoyuan
Plazawww.aoyuanplaza.com
Occupancy rate
remains above 95%
since opening
2121
✓Join hands with local developers with recognizedstrength: Aoyuan partnered with an Australian developerin the development of One30 Hyde Park, a luxuryresidential apartment project in CBD of Sydney, and alsopartnered with locals to develop high-end residentialapartments next to Vancouver CBD
✓Successfully gained access to local financingchannels: Aoyuan obtained loans for land acquisitionand development from the Commonwealth Bank ofAustralia (CBA) and Westpac Banking Corporation for itsSydney projects, which enabled Aoyuan to establish itsgood credit record locally. Aoyuan has become one of thefew PRC developers who has gained access to localbank financing in Australia
✓Led by local professional management team: Aoyuanhas professional teams in Australia and Canadaconsisting of local professionals with a wealth ofexperience in property development, operations, financialmanagement and financing and investment
✓Ensure smooth execution by cooperating with localprofessional consultants and institutions: Aoyuan hascarefully selected a number of reputable and experiencedAustralia- and Canada-based professional consultants toprovide active advice and services in areas including law,tax, urban planning, architecture, construction, audit,marketing, and branding
✓Primarily target local customers to capture stronglocal housing demand: Local customers accounted forapprox. 75% of contracted sales of Aoyuan’s Australianprojects, and Aoyuan’s project in Canada will also targetlocal customer base
Successful development in overseas markets through localization strategies
Committed to establish itself as a genuine local developer by implementing localization strategies in Australia and Canada;
Thus to expand revenue streams, diversify assets portfolio and decentralize operational risks
Note: Aoyuan’s development in Australia is well-recognized by the local
government, professional institutions and market, it was widely covered by
domestic and foreign media such as China Daily, The Australia, SCMP, HKET
and Singtao Daily
2222
Strong overseas execution capabilities
Location: CBD of Sydney; Overlooks Hyde Parkand Royal Botanic Gardens, looks north over
Opera House and Sydney Harbor; Directlyconnected to Museum Station
Aoyuan’s interest: 70%
Australian developer: Ecove
Acquisition date: Mar 2015
Launch date: Aug 2015
Completion date: Q4 2018 (expected)
Accumulated contracted sales: approx.AU$360mn (approx. RMB1.89bn)
Overall sell-through rate: 96%
ASP: AU$25,320/sqm (approx. RMB131,700/sqm)
Local buyers contribution: 75%
Financing: Obtained a syndicated loan of approx.AU$200mn from CBA, including 50% acquisitionloan and 100% construction loan with a total
borrowing cost of below 5% per annum
Local architect: Bates Smart
Local builder: Built
Local lead agent: Savills
Local auditor: Deloitte
Case study 1: Aoyuan’s first overseas project, One30 Hyde Park,
once set ASP and unit price records in Australia
2323
Location: Heart of Maroubra, a beachside district ineastern Sydney of Australia; in close proximity to
University of New South Wales and 15-min ride fromCBD of Sydney
Aoyuan’s interest: 100%
Acquisition date: Nov 2015
Launch date: Aug 2016
Completion date: Q3 2018 (expected)
Accumulated contracted sales: approx.AU$49.17mn (approx. RMB260mn)
Overall sell-through rate: 86%
ASP: AU$11,500/sqm (approx. RMB59,740/sqm)
Local buyers contribution: 85%
Financing: Obtained 100% construction loan from
Westpac Banking Corporation with an interest rate of5.3% per annum
Local architect: Marchese Partners
Local builder: TQM
Local lead agent: McGrath
Local auditor: Deloitte
Strong overseas execution capabilities (cont.)
Case study 2: Aoyuan’s first independent overseas project, Maison 188 Maroubra,
once set a new ASP record in the vicinity
2424
4. Strategic Layout
2525
41,138
14,638
3,995 3,704 3,262 3,030 2,980 2,577 1,496 1,333 1,119 830 443 338 326
0
10,000
20,000
30,000
40,000
50,000
Beijin
g
Shenzh
en
Jia
ngsu
Hubei
Guangzh
ou
Chongqin
g
Zhejia
ng
Sic
huan
Anhui
Hunan
Guangxi
Fujia
n
Lia
onin
g
Jia
ngxi
Guangd
on
g
(exc
l. Guangzh
ou &
Shenzh
en)
Region CityGFA
(‘000 sqm)Contribution
Guangzhou 1,675
Shenzhen 290
South China
Zhuhai, Guangdong 525
Foshan, Guangdong 1,217
Zhongshan, Guangdong 217
Huizhou, Guangdong 773
Jiangmen, Guangdong 98
Yangjiang, Guangdong 298
Meizhou, Guangdong 628
Qingyuan, Guangdong 461
Yingde, Guangdong 757
Yunfu, Guangdong 255
Shaoguan, Guangdong 641
Nanning, Guangxi 719
Yulin, Guangxi 1,443
Subtotal 9,996 58%
Core region of
Central &
Western China
Chongqing 714
Chengdu, Sichuan 563
Changsha, Hunan 149
Zhuzhou, Hunan 591
Xiangtan, Hunan 665
Jingzhou, Hubei 354
Ganzhou, Jiangxi 293
Subtotal 3,329 20%
East China
Kunshan, Jiangsu 77
Yangzhou, Jiangsu 337
Jiaxing, Zhejiang 219
Ningbo, Zhejiang 241
Bengbu, Anhui 603
Quanzhou, Fujian 651
Subtotal 2,128 12%
Bohai RimBeijing 16
Shenyang, Liaoning 1,485
Subtotal 1,501 9%
OverseasSydney, Australia 40
Vancouver, Canada 129
Subtotal 169 1%
Grand total 17,123 100%
Average land cost:
RMB1,897 per sq.m.
Average land cost by region (China)
Sufficient and quality land bank
Guangxi Guangdong
JiangxiChongqing
Jiangsu
Hunan
Liaoning
AnhuiZhejiangSichuan
Beijing
Hubei
Fujian
As of 30 Jun 2017, Aoyuan had 95 projects with a total GFA of 17.12mn sqm (attributable: 86%), total saleable resources of approx.
RMB162.8bn, which is sufficient for development needs in approx. 3-4 years. The projects are located in South China, core region of
Central & Western China, East China and Bohai Rim, and expanded into Sydney, Australia, and Vancouver, Canada
2626
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)
Held for future
development57%
Under development
30%
Completed and held for sale
8%
Completed and sold,
but yet to be delivered
/ Auxiliary facilities
5%
South China59%
East China13%
Bohai Rim3%
Overseas6%
Core region of
Western &
Central China
19%
Core region of
Western &
Central China
16%
South China61%
East China11%
Bohai Rim5%
Overseas7%
Residential properties
68%
Commercial properties
24%
Investment properties
5%
Auxilliary facilities
3%
2727
Guangdong-Hong Kong-Macau Big Bay Area: new economic growth engine for China
National strategy: Guangdong-Hong Kong-Macau Big Bay Area
(Big Bay Area) covers “9 cities”, i.e. Guangzhou, Shenzhen,
Foshan, Zhuhai, Huizhou, Zhongshan, Jiangmen, Dongguan,
Zhaoqing, and “2 Special Administrative Regions (SARs)”, i.e.
Hong Kong and Macau. It will be built into a top international bay
area and world-class metropolitan cluster with various advantages
in finance, science and technology, manufacturing, etc.
Development potential: Big Bay Area possesses key features of
the bay area economy: high aggregation of population and
industries, close connection to inland areas, high openness to the
world, and economies of mass. It holds huge potential for future
development and will be built into a new economic growth engine
for China with support from national strategies
*Source: China Index Academy
Functions and positioning of “9 cities, 2 SARs” of Big Bay Area
Eastern
region
Hong Kong Global financial, shipping and trading hub
Shenzhen International innovative services center
Dongguan Global smart manufacturing powerhouse
Huizhou World-class base for petrochemical industry
Central
region
GuangzhouLingnan 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
Zhuhai National equipment manufacturing center
Zhongshan One of the appliances base in China
Jiangmen National advanced manufacturing base
Guangzhou
Zhongshan
Jiangmen
Zhaoqing
FoshanDongguan
Shenzhen
Hong Kong
Macau
Zhuhai
Huizhou
Aoyuan’s strategic layout in the Big Bay Area
1.5(+3.5%) 1.34
(+7.9%)1.3
(+3.6%)
0.8(+2.7%)
0
0.2
0.4
0.6
0.8
1
1.2
1.4
1.6
New YorkBay Area
TokyoBay Area
San FranciscoBay Area
GDP and Growth in 2016(USD trillion)
Guangdong-
Hong Kong-
Macau
Big Bay Area
2828
Jiangmen
Zhaoqing
FoshanDongguan
Shenzhen
Hong Kong
Macau
HuizhouGuangzhou
Zhuhai
Zhongshan
Hong Kong-Zhuhai-Macau Bridge
Shenzhen Bay Bridge
Shenzhen-Zhongshan Bridge
Aoyuan already has a strategic layout in the Big Bay Area, with projects in 8 of the cities
Benefiting from national policies, Aoyuan seizes the first-mover opportunities and
leverage the trend of rapid growth in Big Bay Area
✓ Tokyo, New York and San Francisco demonstrate that
bay area is an important engine for economic growth,
and property market in the area would gain benefits:
• It will take only an hour to travel within Guangdong,
Hong Kong and Macau after the completion of
infrastructure such as Shenzhen-Zhongshan Bridge,
Hong Kong-Zhuhai-Macau Bridge, Guangzhou-
Foshan-Jiangmen-Zhuhai Railway, facilitating the
connectivity between cities and countries
✓ Benefiting from the national policies, Aoyuan seizes the
opportunities and rides the momentum of Big Bay Area:
• Headquartered in Guangzhou with a strong presence
in Guangdong, Aoyuan has abundant local resources
and experiences, such as land, talents, network and
capital
• Already has a strategic layout in the Big Bay Area with
40 projects in 8 of the cities, namely Guangzhou,
Shenzhen, Zhuhai, Foshan, Huizhou, Zhongshan,
Jiangmen and Dongguan. Total GFA of approx.
4.80mn sqm with total saleable resources of
RMB58.7bn
• Contracted sales from Big Bay Area reached
RMB9.93bn in 1H2017, accounted for 60% of total
contracted sales
Seizing the first-mover opportunities in Guangdong-Hong Kong-Macau Big Bay Area
Guangdong
Aoyuan’s strategic layout in the Big Bay Area
2929
Guangzhou Aoyuan Lianfeng StateGuangzhou Aoyuan
Glorious Mansion
Shenzhen Aoyuan Jade Bay Shenzhen Aoyuan SOHO
• Location: Panyu, Guangzhou
• Interest: 100%
• Total GFA: 280,800sqm
• Cost: RMB2,136/sqm
• Location: Zengcheng, Guangzhou
• Interest: 100%
• Total GFA: 138,300sqm
• Cost: RMB4,701/sqm
• Location: Pingshan New District,
Shenzhen
• Interest: 70%
• Total GFA: 217,800sqm
• Cost: RMB15,000/sqm
• Location: Guangming New District,
Shenzhen
• Interest: 100%
• Total GFA: 72,700sqm
• Cost: RMB13,369/sqm
Existing key projects in Guangdong-Hong Kong-Macau Big Bay Area
Guangzhou Luogang Aoyuan Plaza
• Location: Huangpu, Guangzhou
• Interest: 60%
• Total GFA: 300,000sqm
• Cost: RMB4,352/sqm
Guangzhou Aoyuan
International Center
• Location: Panyu, Guangzhou
• Interest: 65%
• Total GFA: 248,000sqm
• Cost: RMB6,698/sqm
3030
Existing key projects in Guangdong-Hong Kong-Macau Big Bay Area (cont.)
Zhuhai Aoyuan Plaza
• Location: Xiangzhou District,
Zhuhai, Guangdong
• Interest: 93%
• Total GFA: 270,800sqm
• Cost: RMB2,732/sqm
Zhuhai Aoyuan Xianghai Scenery
• Location: Doumen District, Zhuhai,
Guangdong
• Interest: 80%
• Total GFA: 48,200sqm
• Cost: RMB7,266/sqm
• Location: Zhuhai Free Trade Zone,
Guangdong
• Interest: 70%
• Total GFA: 205,500sqm
• Cost: RMB3,065/sqm
Zhuhai Aoyuan Seaview Mountain
• Location: Guangdong High Tech
Service Zone for Financial Institutions
• Interest: 100%
• Total GFA: 116,200sqm
• Cost: RMB9,358/sqm
• Location: Nanhai District,
Foshan, Guangdong
• Interest: 100%
• Total GFA: 157,900sqm
• Cost: RMB2,912/sqm
Foshan Aoyuan The Prime Palace Foshan Aoyuan Peach City
• Location: Nanhai District, Foshan,
Guangdong
• Interest: 100%
• Total GFA: 285,600sqm
• Cost: RMB3,716/sqm
Foshan Aoyuan Central Parkview
3131
• Location: Jinshanhu District,
Huizhou, Guangdong
• Interest: 100%
• Total GFA: 339,300sqm
• Cost: RMB2,423/sqm
• Location; Fengjiang District,
Jiangmen, Guangdong
• Interest: 51%
• Total GFA: 132,700sqm
• Cost: RMB614/sqm
Existing key projects in Guangdong-Hong Kong-Macau Big Bay Area (cont.)
Huizhou Aoyuan Yushan Lake
Jiangmen Aoyuan
• Location: Zhongshan, Guangdong
• Interest: 100%
• Total GFA: 44,500sqm
• Cost: RMB2,698/sqm
Zhongshan Aoyuan
Xiangshan Scenery
• Location: Zhongshan, Guangdong
• Interest: 100%
• Total GFA: 44,800sqm
• Cost: RMB3,800/sqm
Zhongshan Aoyuan Garden Life
• Location: Changping, Dongguan,
Guangdong
• Interest: 100%
• Total GFA: 65,500
• Cost: RMB3,817/sqm
Dongguan Project
• Location: Huiyang District,
Huizhou, Guangdong
• Interest: 100%
• Total GFA: 90,000sqm
• Cost: RMB4,088/sqm
Huizhou Aoyuan Mansion
3232
Aoyuan currently has 10 redevelopment projects at different phases,
total planned GFA is expected to be approx. 4.22mn sqm
Redevelopment projects in Guangdong-Hong Kong-Macau Big Bay Area
Case study 3: Zhuhai Aoyuan Plaza
• Type: Redevelopment of old factory
• Total GFA: 271,000sqm
• Avg. land cost: RMB2,732/sqm
• Accumulated ASP: RMB20,658/sqm
• Accumulated contracted sales: approx.RMB3.79bn
• Redevelopment timetable:
➢ Dec 2014: Redevelopment planningapplication submitted
➢ Mar 2015: Redevelopment planningapplication to Zhuhai City PlanningCommission
➢ Jun 2015: Land transfer contract signed
➢ Jul 2015: Obtained state-owned landownership certificate
➢ Oct 2015: Launch for presales
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
Major Project City StatusSite Area
(sqm)
Planned GFA
(sqm)
1Guangzhou Panyu Nitrogen
Fertilizer Plant
Panyu,
GuangzhouConfirm redevelopment plan 100,000 310,000
2Guangzhou Caihe Village
Industrial Park
Panyu,
GuangzhouCooperation agreement 220,000 360,000
3 Zhuhai Yafang BuildingXiangzhou,
Zhuhai
Redevelopment planning
application10,000 90,000
4Zhuhai Yuexiang and Dahua
Factory
Pingsha,
Zhuhai
Redevelopment planning
application150,000 460,000
5 Zhuhai Cuiwei VillageXiangzhou,
Zhuhai
Redevelopment planning
application310,000 1,000,000
6 Zhuhai Xiaxu VillageZhuhai High
Tech Zone
Redevelopment planning
application70,000 230,000
7Zhuhai Gongbei Guanzha
Village
Xiangzhou,
Zhuhai
Redevelopment planning
application200,000 780,000
8 Zhuhai Shuiwengkeng VillageXiangzhou,
Zhuhai
Redevelopment planning
application80,000 240,000
9 Dongguan Pailouji VillageWanjiang,
DongguanDecision on early-stage partner 100,000 250,000
10 Dongguan Jiangshimei VillageWanjiang,
DongguanDecision on early-stage partner 220,000 500,000
Total 1,460,000 4,220,000
3333
Sydney
Mirabell Turramurra Sydney• Location: High-end residential area in northern shore area
of Sydney, surrounded by renowned schools such asPymble Ladies College, Knox Grammar School andMacquarie University
• Interest: 100%• Launch date: Mar 2017• Total GFA: 6,700sqm; 79 units of residential apartments
Altessa 888 Gordon Sydney• Location: High-end residential area in northern shore area
of Sydney, surrounded by renowned schools such asPymble Ladies College, Knox Grammar School andMacquarie University
• Interest: 100%• Launch date: Mar 2017• Total GFA: 13,000sqm; 144 units of residential apartments
Quality overseas land bank locations - Australia
Australia
Mirabell Turramurra Sydney
Altessa 888 Gordon Sydney
One30 Hyde Park
Sydney
Maison 188
Maroubra Sydney
Maison 188 Maroubra Sydney• Location: Heart of Maroubra, a beachside district in
eastern Sydney of Australia; in close proximity to Universityof New South Wales and 15-min ride from CBD of Sydney
• Interest: 100%• Launch date: Aug 2016• Total GFA: 5,800sqm; 60 units of residential apartments
and retail shops
One30 Hyde Park Sydney
• Location: CBD of Sydney; Overlooks Hyde Park and Royal
Botanic Gardens, looks north over Opera House and
Sydney Harbor; Directly connected to Museum Station
• Interest: 70%
• Launch date: Aug 2015
• Total GFA: 15,000sqm; 140 high-end residential
apartments
Sydney
CBD
3434
Canada
Vancouver Granville Project
• Interest: 90%
• Total GFA: approx. 5,600sqm
• Location: In Vancouver West,
only a bridge away from CBD of
Vancouver; In a traditional high-
end residential area, with a
well-developed community and
a prosperous commercial
environment; Only a 10-min
walk from Granville Island
Vancouver Burnaby Project
• Interest: 100%
• Total GFA: 120,000sqm
• Location: CBD of Burnaby in
Vancouver, with numerous
high-tech corporations and
media corporations; 3-min walk
from Brentwood Town Centre
Station; 20-min train ride from
Vancouver CBD; 9-min car ride
from Simon Fraser University
Quality overseas land bank locations - Canada
Vancouver
View from Vancouver Granville Project
Vancouver
Burnaby Project
Vancouver
Granville Project
Vancouver
CBD
Richmond
Vancouver
International Airport
3535
Name City Type ApproachAcquired
date
Interest
(%)
Avg. land
cost
(RMB/sqm)
Total GFA
(sqm)
Total cost
(RMB mn)
Attributable
(RMB mn)
1 Zhuhai Aoyuan Seaview MountainZhuhai,
GuangdongC Equity acquisition Jan 2017 70% 4,039 205,500 830 581
2Zhongshan Aoyuan Xiangshan
Scenary
Zhongshan,
GuangdongC, R Equity acquisition Jan 2017 100% 2,698 37,900 120 120
3Yangzhou Aoyaun The Lake Shine
House
Yangzhou,
JiangsuC, R Equity acquisition Jan 2017 100% 4,434 300,700 1,333 1,333
4 Vancouver Granville ProjectVancouver,
CanadaR Land acquisition Jan 2017 90% 29,204 5,500 161 145
5 Shenzhen Aoyuan SOHOShenzhen,
GuangdongC, R Equity acquisition Feb 2017 100% 13,369 72,700 985 985
6 Foshan Aoyuan Champion CityFoshan,
GuangdongC, R Equity acquisition Feb 2017 10% 486 621,000 302 30
7 Huizhou Aoyuan MansionHuizhou,
GuangdongC, R Equity acquisition Mar 2017 100% 4,089 90,000 368 368
8 Zhongshan XiaolanZhongshan,
GuangdongC, R Equity acquisition Mar 2017 77% 2,330 57,400 224 103
9 Beijing Aoyuan Second Ring Plaza Fengtai, Beijing C, R Equity acquisition Mar 2017 100% 41,138 16,000 658 658
10 Huizhou Daya Bay ProjectHuizhou,
GuangdongC, R Equity acquisition Apr 2017 70% 3,384 64,500 322 225
11 Quanzhou Nan’an ProjectQuanzhou,
FujianC, R Equity acquisition Apr 2017 55% 725 497,500 289 159
12 Xiangtan ProjectXiangtan,
HunanC, R Equity acquisition Apr 2017 100% 483 665,100 420 407
13 Zhuhai Aoyuan Xianghai SceneryZhuhai,
GuangdongR Equity acquisition Apr 2017 80% 7,266 48,200 350 280
14 Jingzhou Project Jingzhou, Hubei C, R Land auction May 2017 100% 3,701 353,700 1,310 1,310
15 Jiaxing Xiuzhou ProjectJiaxing,
ZhejiangC, R Land auction May 2017 100% 6,211 71,000 441 441
16 Huizhou Danshui ProjectHuizhou,
GuangdongC, R Equity acquisition May 2017 51% 2,107 38,000 81 41
17 Quanzhou Shishi ProjectQuanzhou,
FujianC, R Land auction Jun 2017 100% 1,982 153,900 305 305
18 Huizhou Ganghong Project Huizhou,
GuangdongC, R Equity acquisition Jun 2017 51% 334 241,100 80 41
19 Jiaxing Guangyi ProjectJiaxing,
ZhejiangC Equity acquisition Jun 2017 51% 1,496 34,800 52 27
20 Vancouver Burnaby ProjectVancouver,
CanadaR Land acquisition Jun 2017 100% 6,591 123,800 816 816
Total 2,553 3,700,000 9,447 8,375
High-quality projects successfully acquired in 1H2017
Note(1): R = Residential properties ; C = Commercial properties
(1)
Strategic land bank replenishment
3636
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
1H2017 20 2,553 3,700,000 9,447
Total 87 2,151 21,289,246 45,797
Strategic land bank replenishment (cont.)
Breakdown of land bank acquired since IPO (by value)
South China56%Core region
of Central & Western
China22%
East China12%
Bohai Rim6%
Overseas4%
• As of 30 Jun 2017, land bank in Tier 1 and 2 cities and
international cities accounted for 81% of total newly acquired
land cost, Tier 3 and 4 cities accounted for 19%
• With a main focus on Tier 1 and 2 cities, supplemented by
Tier 3 and 4 cities, Aoyuan adhered to disciplined land bank
replenishment, building a solid foundation for Aoyuan’s
strategic and sustainable development in the future
3737
5. Appendix
3838
Commercial
Group
Note:
(1): In Mar 2017, Chairmen Guo Zi Wen acquired approx. 53mn shares at HKD2.4/share, with a total consideration of approx. HKD128mn, and his shareholding increased to
approx. 54%
(2): During May to Nov 2016, Aoyuan repurchased approx. 112mn shares at an average cost of HKD1.68/share, with a total consideration of HKD188mn (approx. 4% of the entire
issued share capital of Aoyuan)
(3): In Aug 2015, Chairman Guo Zi Wen acquired approx. 55mn shares at an average cost of HKD1.65/share, with a total consideration of HKD91.41mn, and his shareholding
increased to approx. 50%
(4): In Jul 2014, Chairman Guo Zi Wen acquired approx. 56mn shares at HKD at an average cost of HKD1.55/share, with a total consideration of HKD86.97mn, and his
shareholding increased to approx. 48%
Company structure
Aomygod
Group
Property
Group
International
Investment
Group
Cultural Tourism
Group
Guo Zi Wen/Guo Zi Ning*Deemed interests
Approx. 54%
Public
Approx. 46%
(As of 16 Aug 2017)
3939
2007-2011
Listed on Main Board of SEHK,
implemented a strategy
of “developing commercial and
residential properties in parallel”
2007: China Aoyuan Property Group
Limited (3883.HK) was successfully
listed on the Main Board of SEHK
2007: Geographical reach extended
beyond Guangdong Province by entering
into Guangxi, Shenyang and Chongqing,
paving the way for Aoyuan to become a
leading regional developer
1996-2006
Pioneered in composite real
estate development
Introduced pre-IPO strategic investor
1997: Zi Ye was established in PRC,
which marked the beginning of Aoyuan
Chairman Guo Zi Wen introduced the
"Sports+Property" development concept,
and subsequently the “exercise starts
from home" concept which became
hugely popular in China
2006: Cathay Capital Group invested in
Aoyuan as a pre-IPO strategic investor
Aoyuan instituted a clear strategy of “a
leader in composite real estate and an
operator of the urban development in the
future”
2012-2013: Aoyuan issued its debut USD
senior notes in late 2012 and
subsequently tapped the same bond in
early 2013, raising an aggregate of
US$225mn
2013: Raised full year contracted sales
target from RMB7.5bn to RMB8.5bn, and
surpassed the target with RMB10bn,
becoming a member of the over-
RMB10bn group
2015: Announced the first overseas
project, One30 Hyde Park Sydney, to
open up overseas markets
2015: Contracted sales amounted to
RMB15.2bn, tripling contracted sales of
2012
2012: Successfully exited 8 Chang’an
Ave Beijing project and received approx.
HKD3.2bn and recorded a special gain of
HKD1.1bn
2012-2015
After 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$250mn
senior notes at par with a record low
coupon rate of 6.525%
The only PRC developer with credit rating
upgrades from all 3 major international
rating agencies, namely Fitch “BB-”,
Moody’s “B1” and S&P “B+”, since 2016
2016: Contracted sales achieved
RMB25.6bn, with a yoy growth of 52%,
exceeding full year target by 51%
2017: Acquired high quality project in
Vancouver, expanded into Canadian
market
2011: Entered into Jiangsu and took
advantage of the growth in the Yangtze
River Delta Region
2010-2011: Secured HKD990m
syndicate loan from 2 overseas banks
2014: Contracted sales maintained
growth momentum and increased 22%
yoy to RMB12.22bn
2017: The first Asian issuer to complete
US$250mn 6.35% senior notes at par
2017: Obtained approx. HK200mn club
loan from 6 overseas banks
2016-2017: Entered into Shenzhen,
Chengdu, Bejing and Ningbo,
successively to further optimize land bank
in Tier 1/2 cities
Corporate milestones
Based in Guangdong, Aoyuan has strategic footprints across South China, East China, core region of
Central & Western China and Bohai Rim with a focus on Guangdong-HK-Macau Big Bay Area
Aoyuan successfully set foot in Australian and Canadian property market and
promotes parallel development in domestic and overseas market
4040
Board of Directors
4 Executive Directors and 3 Independent Non-executive Directors
Audit Committee, Remuneration Committee, and Nomination Committee
Senior Management
Brand and Sales
& Marketing
Investment
and Fund
Management
Capital Markets,
International
Investment Group
Financial Management, HR& Administration
Management
Operations
Management
Aomygod
Group
Commercial
Group
Cultural
Tourism Group
MAI Ze Nian
Vice President
CHEN Yong
Vice President
Jacky CHAN
Vice President
ZHONG Ping
CFO
MA Jun
COO
MIAO Si Hua
Vice President
ZHANG Jun
Vice President
CHENG Yao
Vice 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
4141
Since early 2015, Aoyuan has tapped into the Australian market and owns 4 projects that have launched for presales
In 2017, Aoyuan successfully expanded into the Canadian market through the acquisition of 2 high quality residential projects,
promoting parallel development in domestic and overseas markets at a steady pace
New milestone for parallel development in domestic and overseas markets
14
13
11
8
6
5
3
1
12
10
9
7
4
2
2017
2016
2015
15
Jun 2017: Successfully acquired its second project in Canada, Burnaby Project
May 2017: The demolition work of Mirabell Turramurra commenced
Mar 2017: Altessa 888 Gordon and Mirabell Turramurra launched for presale, and were well-received by the market
Mar 2017: Maison 188 Maroubra and Mirabell Turramurra secured approval from Westpac Banking Corporation to fully fund the
project construction
Mar 2017: Aoyuan acquired 90% equity interest sin Granville Project, a quality residential project next to Vancouver CBD in Canada,
successfully expanded into the Canadian market
Feb 2017: The demolition work of Maison 188 Maroubra commenced
Dec 2016: Over 90% of One30 Hyde Park and over 80% of Maison 188 Maroubra have been sold
Nov 2016: Aoyuan successfully acquired two high quality residential projects in Sydney, namely Altessa 888 Gordon and Mirabell
Turramurra
Aug 2016: Maison 188 Maroubra was launched for presale, and set a new ASP record in the vicinity
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. AU$200mn for One30 Hyde Park
Jun 2016: Maison 188 Maroubra successfully obtained DA
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
Nov 2015: Aoyuan acquired Maison 188 Maroubra for independent development
Aug 2015: One30 Hyde Park successfully obtained development approval (DA) and was launched for presale, setting a new ASP
and unit price record in Australia
Apr 2015: Aoyuan obtained loan from CBA which amounted to 50% of the total land cost for One30 Hyde Park, with a total
borrowing cost of below 5% per annum
Mar 2015: Aoyuan acquired One30 Hyde Park in Sydney CBD through a joint venture with Ecove to develop luxury residential
apartments (Aoyuan holds 70% equity interests)
16
4242
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
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
4343
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
