Company overviewNovember 2015

About Glory (2329 HK)

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Background

Established in Guangdong Province in 1994, grown our business in Beijing in 2000 and gradually expanded into key economic fast growing cities, such as Langfang, Zhengzhou, Foshan and Shenzhen, etc.

Get listed in July 2014, the number of total issued shares was approx. 4.4bn as of 1 Nov 2015. Total asset: around RMB31bn

Key businesses

Developing and building mid-to-high end residential projects

Developing and holding high-end commercial properties with strategic value

Landbank As at 30 June 2015, total GFA: approx. 7.8 mn sqm, average land cost: about RMB1,600/sqm New land acquired in 1H15, total GFA was approx. 175,000, average land cost: about RMB4,000/sqm Location: 30% in BJ-TJ-Hebei area, 30% in Pan-Bohai River Delta, and the rest 40% in Pearl River Delta

Key strategies

Continue to enlarge our market share in existing cities, delivering what we promised Capture timely investment opportunities for a balanced business portfolio in the medium and long term Seek sustainable growth engines via diversification amid changes in the industry

Key accomplishments

1.1 Quality land bank ensures sustainable potentials

By regions:BJ-TJ-Hebei: 30%, Pan Bohai Rim: 30%, Pearl River Delta: 40%

By cities:Tier 1: 10%, Tier 2: 50%, Lower, Tier 3: 40%

By use:Development properties: 90%, investment properties: 10%

By progress:Completed yet unsold: 9%, in-development: 26%, under planning: 65%

Glory City, Shenyang

Glory City, BeijingHatamen Plaza, Beijing

Glory City, Yongqing

Glory City, Zhengzhou

Glory City, Shantou

Glory City, HaikouGlory Garden, HaikouRiverview, HaikouWest Coast, HaikouYunlong Project, Haikou

Glory City, Wanning

IFC, Xi'an

Pan Bohai Rim

Zhengzhou

Beijing

Langfang

Shenyang

Xi'an

Pearl River Delta

Haikou

FoshanShantou

Wanning

Guohua New Capital, FoshanSouth Levee Bay, Foshan

Shenzhen

As at 30 June 2015, the Company had a land bank of 7.8 mn sqm in 10 cities, of which 5.6 mn sqm are of attributable interest.Average land cost was RMB 1,600 /sqm.

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Nanshan Project, Shenzhen

3,283 5,057 6,206 3,039

7,786 13,170 13,017 10,777

FY12 FY13 FY14 1H15

220 232 268 142

FY12 FY13 FY14 1H15

1.2 Sound track record showcases solid execution

Contracted sale & ASP(RMB mn) RMB/sqm

Revenue

Outperform our peers among fierce market competition and consolidation

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CAGR +11%

CAGR +37% 69%54%

23% ~10%26% 31%

8% 8%

FY12 FY13 FY14 FY15E

国瑞 主要同业平均

Contracted sales growth rate

3,538 4,520 4,790

2,333

40% 40%48% 54%

20%30%40%50%60%70%80%

500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 5,000 5,500

FY12 FY13 FY14 1H15

CAGR +16%(RMB mn) (RMB mn) %

Revenue from property development & Gross margin

4,2766,835

5,279

2,590

491

2,087

917 507

FY12 FY13 FY14 1H15

1.3 Improved operation contributed to high profit margins Thanks to the management's execution ability, the Company enjoys higher profit margins then comparable peers

Gross profit margin Core net profit margin

Core net profit margin vs. comparable peers on averageGross profit margin vs. comparable peers on average

1,576

3,705

2,405 1,328

FY12 FY13 FY14 1H15

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CAGR +24% CAGR +37%(RMB mn) (RMB mn)

36% 32% 29% 28%

37%54% 46% 51%

FY12 FY13 FY14 1H15

comparable peers on average Glory

15% 13% 11% 10%11%

31%17% 20%

FY12 FY13 FY14 1H15

comparable peers on average Glory

2.Business review

2.1 High earning visibility of property development

Contracted sales reached RMB3bn, increased by 2% YoY. GFA sold: 280,000 sqm, rose 18% YoY. ASP (incl. car parks) was RMB11,000 per sqm, down 10% YoY due to different product mix.

Cash collection ratio: over 80%

Locked-in sales of approx. RMB2bn for booking in 2H15 and future

24% 23%

14% 13% 11% 9% 6%

Haikou Beijing Zhengzhou Shenyang Foshan Langfang Wanning

Contracted sales breakdown (By cities) GFA sold (By cities)

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22% 21% 19%14%

10% 10%4%

Zhengzhou Shenyang Haikou Foshan Langfang Wanning Beijing

2.2 Stable revenue stream generating from IPs We owned 7 investment properties in 5 cities with total GFA of about 810,000 sqm. As of 30 June 2015, about 368,000 sqm has been put in operation, among which, around 50% of that was in Beijing. In 1H15, investment properties contributed RMB142mn in revenue, 80% of them coming from Beijing. Comparing 1H14, revenue from IPs rose 8% mainly due to the 10% increse in rent and stable occupancy rate

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Glory City, Beijing Fugui Garden, Beijing Glory City, Shantou Glory City, Shenyang

Type Office, retail Shopping mall Home furnishing mall Auto spare parts market

LocationChongwenmen Station, 1 Subway

Line, 5 minutes’ drive to Tiananmen Square, Beijing

Guangqumennei Station, 7 Subway Line, 10 minutes’ drive to Tiananmen

Square, Beijing

Longhu District, Very close to Shantou Port

East 2nd Ring Road,Close to Zhongjie (pedestrian street)

Rental（RMB ‘000） 114,327 16,769 10,334 111

Total GFA（sqm） 166,964 29,316 62,398 109,813

Leasable area（sqm） 124,939 29,316 62,398 109,813

Range of lease term 2-6 years 1-5 years 4-13 years 3 years

Key tenant

Valuation(1)

（RMB mn） 6,569.2 942.0 531.8 670.3

___________________________1. Colliers valuation as of 30 June 2015

Hatamen Plaza, Beijing South Levee Bay, Foshan IFC, Xi'an Nanshan Project, Shenzhen

Use Office, Retail Office, Retail, Office Office

LocationChongwenmen Station, 1 Subway

Line, 5 minutes’ drive to Tiananmen Square, Beijing

City center CBD District, Xi'an Nanshan District, Shenzhen

Estimated completion date 2016 2018 2019 2020

Total GFA（sqm） 140,021 358,714 289,978 175,000

Valuation(1)

（RMB mn） 4,330 702 (GFA for sale will be disclosed upon completion of the project) 783

2.4 Promising future of IPs in-development

In addtion, we have about 440,000 sqm investment properties in the pipeline.

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___________________________1. Colliers valuation as of 30 June 2015

3. Financial highlights

3.1 Summary of 1H15 P&L

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(RMB mn) 1H15 FY14Revenue 2,590 5,279

Gross profit 1,328 2,405

Gross profit margin 51% 46%

Profit attributable to owners of the Company 969 1,207

Net profit margin 37% 23%

Profit attributable to owners of the Company excl. one-off items 507 917

Net profit margin excl. one-off items 20% 17%

EPS-basic (RMB cents) 17.6 23.4

Total dividend per share (HK cents) --- 6.05

Dividend payout ratio --- 30%

Cash resources as at 30 June 2015 1,328 1,723(as at 31 Dec 2014)

Net gearing ratio as at 30 June 2015 105% 107%(as at 31 Dec 2014)

3.2 Summary of 1H15 cash flow

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(RMB mn)

Cash on hand as at 31 Dec 2014 1,723Sales proceeds 2,711Rental income, property management services and others 141Loans net add 274

小计: 3,126Construction costs settled (1,504)Land premium settled (500)SG&A expenses (284)Taxes (604)Interest expenses (409)Dividend paid (210)Others (10)

小计: (3,521)Cash on hand as at 30 June 2015 1,328

78%

22% Bank loan

Trust

3.3 Optimized debt structure

By type By maturity

39%

29%

21%

20%

32%

41%

8%

10%

0% 20% 40% 60% 80% 100%

1年内到期 1-2年 2-5年 5年后

Total interest-bearing debt: approx. RMB11bn as at 30 June 2015. Weighted average interest rate: 7%.

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Sales proceeds

Investment properties

Despite the unfavorable credit environment, we continued to receive staunch support from banks.

Reputable strategic partners: ICBC, ABC, BC, CCBC and Huaxia Bank, etc. During the past three and a half years, the average interest rate for the Company was relatively low, ranging from 6.69% to 7.47%

With the strong backup from strategic partners, Glory enjoys more flexibility in project funding arrangements.

Construction costs

Repayment of Bank loans

As at 30 June 2015

As at 31 Dec 2015

Internal capital arrangement

Bank borrowings & Equity funding

4. Appendices

Total assets 30,881 29,013 22,467 18,793

Total liabilities 21,605 20,477 16,371 13,107

Total equity 9,276 8,536 6,096 5,685

4.1. Three-year financial summary

Revenue 2,590 5,279 6,835 4,276

Profit before taxation 1,566 2,059 3,856 2,034Profit attributable to owners of the Company 969 1,206 2,770 1,273

Gross profit margin 51.28% 45.56% 54.21% 36.86%

Debt to assets ratio 69.97% 70.58% 72.87% 69.75%EBITDA (GP – SG&A + D&A expenses)

1,055 1,972 3,302 1,208

EBITDA/interest 2.6 2.6 6.4 2.5

(RMB mn) FY14 FY13 FY121H15

(RMB mn) FY14 FY13 FY121H15

项目 FY14 FY13 FY121H15

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4.2. Land bank (as at 30 June 2015)

Landbank Completed Under development

Under planning

No. of projects

Total land cost

Avg. land cost

As % of total landbank

Contracted ASP in 1H15

(m2) (m2) (m2) (m2) (RMB mn) (RMB/m2) (%) (RMB/m2)

Beijing 368,449 228,428 140,021 - 4 3,226 9,028.2 4.9% 63,000

Langfang 1,899,203 25,015 449,484 1,424,704 1 675 355.4 24.3% 9,700

Haikou 1,498,908 209,106 182,900 1,106,902 5 2,330 1,554.5 20.7% 13,600

Shenzhen 175,000 - 42,763 132,237 1 700 4,000.0 N/A

Shenyang 1,460,067 123,412 340,394 996,261 1 1,606 1,099.8 19.4% 6,870

Zhengzhou 429,220 59,286 312,792 57,142 1 171 399.5 6.2% 6,800

Foshan 874,679 - 275,033 599,646 2 2,109 2,410.7 11.0% 8000

Shantou 424,726 64,797 173,487 186,442 5 694 1,633.2 5.3% 8,500

Wanning 335,923 17,616 114,250 204,057 1 118 351.2 4.4% 6,900

Xi'an 289,978 - - 289,978 1 450 1,570.2 3.8% N/A

TOTAL 7,756,153 727,660 2, 031,124 4,997,369 22 12,179 1,570.2 100%

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These materials have been prepared by Guorui (Glory) Properties Ltd. (the “Company”) solely for informational use during its presentation to prospective and existing investors for introduction of the Company and to provide an update on the business performance and development of the Company. These material may not be taken away, reproduced, redistributed or passed on, directly or indirectly, to any other person (whether within or outside your organization/firm) or published, in whole or in part, for any purpose. By attending this presentation, you are agreeing to be bound by the foregoing restrictions.

The information contained in these materials has not been independently verified. No representation or warranty express or implied is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained herein. It is not the intention to provide, and you may not rely on these materials as providing, a complete or comprehensive analysis of the Company’s financial or trading position or prospects. The information contained in these materials should be considered in the context of the circumstances prevailing at the time and is subject to change without notice and has not been, and will not be, updated to reflect material developments which may occur after the date of the presentation. None of the Company nor any of its respective directors, officers, employees, affiliates, advisors or representatives shall have any liability whatsoever (in negligence or otherwise) for any loss or damage howsoever arising from any use of these materials or their contents or otherwise arising in connection with these materials.

Certain statements contained in these materials constitute “forward-looking statements”. Such forward-looking statements involve risks, uncertainties and other factors that may cause the actual results, performance or achievements of the Company to be materially different from those expressed by, or implied by the forward-looking statements in these materials. There can be no assurance that the results and events contemplated by the forward-looking statements contained in these materials will in fact occur.

This document does not constitute an offer or invitation to purchase or subscribe for any securities of the Company or any holding company or any of its subsidiaries or an inducement to enter into any investment activity. No part of these materials, or the fact of its distribution or use, shall form the basis of or be relied upon in connection with any contract, commitment or investment decision in relation thereto.

For enquiries, please contact our IR team at zhouqiushi@glorypty.com

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