2015 Annual Results Presentation
March 2016 Contents
1 Overview 3
2 Financial Highlights 6
3 Business Operations 12
4 Business Updates 24
5 Appendix 29
2 1. Overview
3 Performance highlights
Sustainable sales growth with favourable development in overseas markets
Contracted sales in 2015 increased by 24% yoy to approx. RMB15.17bn, achieving 112% of the full year target. Contracted sales in 2015 tripled that in 2012 which was approx. RMB5.25bn, maintaining a growth rate above the industry average
Revenue in 2015 increased by 37% yoy to approx. RMB9.57bn
Gross profit in 2015 increased by 28% yoy to approx. RMB2.65bn; Gross profit margin was approx. 27.6%
In 2015, net profit excluding exchange loss increased by 52% yoy to approx. RMB1.19bn, while net profit including exchange loss increased by 16% yoy to approx. RMB910mn
Proposed a final dividend of RMB8.80 cents per share, maintaining a stable dividend policy
Aoyuan has successfully established a strategic plan in overseas markets through a localization strategy:
̶ Aoyuan acquired One30 Hyde Park Sydney in Mar 2015. Since launch in Aug, the project has achieved contracted sales of approx. A$213mn (equivalent to approx. RMB1.02bn) in 2015 with an average selling price of approx. RMB126,957 per sqm, receiving favourable market response
̶ Being one of the few Chinese developers who have gained access to local bank financing when entering into overseas property markets, Aoyuan has obtained a loan from Commonwealth Bank of Australia (CBA) which amounted to 50% of land acquisition cost, with the total borrowing cost of below 5% per annum. Besides, Aoyuan has also secured a loan from CBA to fund 100% construction cost of One30 Hyde Park Sydney
4 Performance highlights (cont.)
Sound financial performance with successful funding diversification Fitch upgraded credit rating to Positive
Aoyuan maintained solid financial performance. As of 31 Dec 2015, net gearing was kept at an industry reasonable level of 62.7%, and the cash collection ratio was kept at a high level of 82%
Capitalizing on onshore and offshore capital markets, Aoyuan made ongoing success in diversifying financing channels and capital resources, further lowering borrowing cost and optimizing debt structure:
̶ In Mar 2015, Aoyuan issued a US$100mn senior notes to ABCI through private offering at coupon rate of 9.25% amid difficult market situation
̶ In May 2015, Aoyuan seized the market window of opportunity to issue a US$250mn senior notes at coupon rate of 10.875% which was oversubscribed by 6.5x
̶ In Jul 2015, Aoyuan successfully issued its inaugural public domestic corporate bonds of RMB2.4bn at coupon rate of 5.8%
̶ In Aug 2015 and Feb 2016, Aoyuan obtained a total of US$180mn syndicated loan led by Nanyang Commercial Bank. The US$100mn tranche bears an interest of LIBOR plus 6.5% per annum, while the US$80mn tranche bears an interest of LIBOR plus 5% per annum
̶ In Oct 2015 and Feb 2016, Aoyuan successively issued a RMB1.5bn and a RMB500mn domestic corporate bonds through private offering at coupon rate of 7.8% and 7.9% respectively
In Nov 2015 and Feb 2016, Aoyuan completed the redemption of US$225mn senior notes due 2017 in two batches, further lowering borrowing cost and optimizing debt structure
In Jan 2016, Fitch upgraded Aoyuan’s credit rating outlook to Positive with B+ corporate rating confirmed
5 2. Financial Highlights
6 Income statement highlights
(Year ended 31 Dec)
(RMB '000) 2015 2014 Change
Turnover 9,572,424 6,976,151 +37%
Gross profit 2,646,276 2,067,369 +28%
Gross profit margin 27.6% 29.6% -2pp
Net profit 1,185,002 780,095 +52% (excl. exchange loss) Net profit margin 12.4% 11.2% +1.2pp (excl. exchange loss) Net profit 907,493 782,933 +16% (incl. exchange loss) Net profit margin 9.5% 11.2% -1.7pp (incl. exchange loss) Final dividend per share 8.8 8.7 +1% (RMB cents)
7 Balance sheet highlights
(RMB '000) 31 Dec 2015² 30 Jun 2015 31 Dec 2014
Total cash¹ 9,035,678 6,731,164 5,917,308
Total assets 48,826,872 40,314,579 36,785,834
Total assets less current 26,057,288 19,858,515 16,407,799 liabilities Equity attributable to 8,242,775 8,006,049 7,719,452 owners of the Company
Total equity 11,575,857 9,739,506 9,034,088
Note: 1 Total cash = Cash and cash equivalents + Restricted bank deposits 2 As of 31 Dec 2015, banking facilities amounted to approx. RMB26.7bn, of which approx. RMB1.1bn were unutilized
8 Key financial ratios
31 Dec 2015 30 Jun 2015 31 Dec 2014
Net debt / Total equity ¹ 62.7% 72.6% 61.8%
Net debt / Total assets 14.9% 17.5% 15.2%
Net debt / EBITDA 2 4.1x 4.3x 4.2x
Total liabilities / Total assets 76.3% 75.8% 75.4%
Liquidity ratio 3 1.9x 1.7x 1.6x
Note: 1 Net debt = Total debt - Total cash 2 EBITDA = Profit before tax + Finance costs – Revaluation on investment properties – Other income, gains & loss + Depreciation + Amortization (EBITDA for 30 Jun 2015 is based on the LTM EBITDA prior to 30 Jun 2015) 3 Liquidity ratio = Current assets / Current liabilities
9 Debt profile
Debt maturity Debt breakdown by type
2014 2015 100% 3% 1% 1% Offshore Offshore bank bank borrowings borrowings 6% 9% Onshore bank 80% 33% borrowings 42% Offshore 24% 49% senior Onshore Offshore notes bank senior 28% borrowings notes 30% Trust 51% loans 13% 60% Onshore Trust loans corporate 15% bonds 24% 18% 39% 40%
34% Borrowing cost
20% 39% 12% 11.4%
25% 10.2% 16% 10% 9.5% 0% 2013 2014 2015 8% < 1 year 1-2 years 2-5 years > 5 years 2013 2014 2015
10 Cash flow and financial management
Aoyuan adheres to the principle of prudent financial management by recycling capital through rapid presales and diversifying financing channels
2015 Cash flow 2015 Cash collection
(RMB billion) (RMB billion) 35 16 15.2 0.6 5.9 -5.4 30 12.5 -5.8 25 5.8 12
-1.2 20 12.5 -0.9 -1.3 -0.3 -6.1 8 15 82% -0.8 10 9.0 5.9 4
5
New bank borrowings New from senior Proceeds Debt repayment Operating cash flow cash Operating inflow cash Other acquisition Land expenses Construction expenses Tax SG&A expenses Interest payments Dividend of Redemption balance cash Ending
0 balance cash Opening
senior notes senior
(as of 31 Dec) of 31 (as
bonds issuance bonds notes/domestic
(as of 1 Jan) of 1 (as 0
Cash collected Contracted sales
1
Note 1: As of 31 Dec 2015, the outstanding land premium was approx. RMB310mn which will be fully paid in 2016
11 3. Business Operations
12 Contracted sales growth continues to be above industry average
Contracted sales
(RMB million) 16,000 15,171 12,223 12,000 10,038
8,000 5,251 4,000
0 2012 2013 2014 2015
Monthly contracted sales
(RMB million) 2,500 2,130 2,140 2,000 1,826 1,890 1,722 1,503 1,512 1,500 1,500 1,403 1,132 1,140 1,230 977 929 1,021 1,000 880 856 878 707 817 636 707 666 519 503 500 405
0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2014 2015 2016
13 Contracted sales and recognized sales
Contracted sales and recognized sales Contracted sales and recognized sales Contracted sales and recognized sales 合同及确认销售面积(GFA) 合同及确认销售金额(Value) 合同及确认销售均价(ASP)
(000's sqm) (RMB million) (RMB per sqm)
2,000 16,000 15,171 10,000 1,888 9,103 9,130
8,037 12,222 1,600 8,000 7,441 12,000 1,343
9,295 1,200 6,000 1,018 914 8,000 6,803 800 4,000
4,000 400 2,000
0 0 0 2014 2015 2014 2015 2014 2015
Contracted GFA sold Recognized GFA sold Contracted sales Recognized sales Contracted ASP Recognized ASP
14 Contracted sales breakdown
2014 contracted sales: RMB12.22bn 2015 contracted sales: RMB15.17bn
By region Guangxi Others By region Australia Others 2% 3% 7% 1% Shenyang 6%
Anhui Guangzhou Hunan 8% 9% 18%
Guangxi Guangzhou 11% Chongqing 50% 13% Guangdong Shenyang (ex-Guangzhou) 26% 4% Hunan Guangdong 8% (ex-Guangzhou) Chongqing 17% 17%
2014 contracted sales: RMB12.22bn 2015 contracted sales: RMB15.17bn
By product Low density By product Low density residential residential 2% 3%
Commercial apartments 13% Commercial apartments 24% Residential Retails and apartments others 48% 18% Residential apartments 66% Retails and others 26%
15 Recognized sales breakdown
2014 recognized sales: RMB6.80bn 2015 recognized sales: RMB9.30bn
Jiangxi Jiangsu Jiangsu Guangxi By region 2% By region 3% 6% 3% Guangxi 5% Hunan Anhui 2% Shenyang 9% 5%
Shenyang Guangzhou 14% 40% Guangzhou Chongqing 54% 15% Chongqing 14% Guangdong (ex-Guangzhou) 17% Guangdong (ex-Guangzhou) 11%
2014 recognized sales: RMB6.80bn 2015 recognized sales: RMB9.30bn
By product Low density By product Low density residential residential Commercial 2% 1% apartments 5%
Retails and Commercial Residential others apartments apartments 25% 38% 41% Residential apartments 68%
Retails and others 20%
16 New GFA start and GFA completion
Aoyuan proactively manages its new GFA start and GFA completion dynamic to respond to market changes, thus having flexibility in capex management and maintaining sound cash flows
(000's sqm)
2,500 2,335
2,037 2,000
1,616
1,500 1,368 1,247 1,141
1,000
500
0 2013 2014 2015
New GFA start GFA completion
17 Diversified revenue streams
To diversify income sources and reduce volatility in revenue, Aoyuan will develop investment properties and other businesses in a steady pace
Major investment properties overview
Project name Location Status Product type¹ GFA (sqm) Interest (%) 1 Guangzhou Aoyuan Plaza Panyu, Guangzhou Leased C, S 80,500 54% 2 Guangzhou Aoyuan Panyu, Guangzhou Leased C, S 8,600 100% 3 Shenyang Aoyuan The Metropolis Shenyang, Liaoning Leased H 6,900 100% 4 Guangzhou Aoyuan City Plaza Panyu, Guangzhou Leased C, CH 31,300 100% 5 Guangzhou Luogang Aoyuan Plaza Huangpu, Guangzhou Leasing C 34,400 60% 6 Guangzhou Aoyuan Kangwei Plaza Zengcheng, Guangzhou Leasing C, S 60,000 51% 7 Zhuhai Aoyuan Plaza Zhuhai, Guangdong Leasing C, S 53,700 93% 8 Chongqing Aoyuan The Metropolis Chongqing Leasing C 19,300 100% 9 Chongqing Aoyuan City Plaza Chongqing Leasing C 57,300 100% 10 Chongqing Aoyuan Panlong Yihao Chongqing Leasing C, S 51,000 60% 11 Shenyang Aoyuan Convention Plaza Shenyang, Liaoning Leasing C, S 114,200 100% 12 Liuyang Aoyuan Plaza Changsha, Hunan Leasing C, S 25,000 100% 13 Bengbu Aoyuan Hanlin Yinzuo Bengbu, Anhui Leasing C, S 35,500 55% Note 1: C = Commercial; S = Retail shop; CH = Club house; H = Hotel
广州奥园广场Guangzhou Aoyuan Plaza 沈阳奥园会展广场Guangzhou Aoyuan City Plaza Zhuhai珠海广州奥园城市天地奥园广场 Aoyuan Plaza
广州奥园康威广场Guangzhou Luogang Aoyuan Plaza 广州萝岗奥园广场Shenyang Aoyuan Convention Plaza 重庆奥园国际城Chongqing Aoyuan The Metropolis
18 18 Asset-light operating model: Guangzhou Aoyuan Plaza
Guangzhou Aoyuan Plaza
Total GFA: Approx. 250,000 sqm Development model: Shopping Mall + Themed Shopping Street + Commercial Apartments The occupancy rate remains above 95% since opening
Renowned tenants at Guangzhou Aoyuan Plaza www.aoyuanplaza.com
In Dec 2012, the high-end shopping mall of Guangzhou Aoyuan Plaza was officially opened, with a GFA of approx. 80,500 sqm. Three fast fashion tycoons, H&M, ZARA and UNIQLO, have set up their stores. Other domestically and internationally renowned brand names include Vanguard and Stellar International Cineplex, etc. In Nov 2014, Aoyuan has successfully invited Huaxia Insurance as a strategic investor of Guangzhou Aoyuan Plaza by means of capital injection, thus strengthening cash flows and further facilitating an asset- light operating model
19 Land bank overview
As of 31 Dec 2015, Aoyuan had 57 projects with a total GFA of approx. 13.33mn sqm, which are located in Guangdong, Chongqing, Jiangsu, Liaoning, Hunan, Anhui, Zhejiang, Guangxi, Jiangxi of China and Sydney of Australia. The current reserve will be sufficient to meet the development needs in approx. five years.
Region City GFA (‘000 sqm)
Guangzhou Guangzhou 1,922.1 Subtotal 1,922.1 Zhuhai, Guangdong 270.8 Foshan, Guangdong 555.3 Zhongshan, Guangdong 285.2
Liaoning Jiangmen, Guangdong 166.6 Yangjiang, Guangdong 362.1 Guangdong Meizhou, Guangdong 583.7 (ex-Guangzhou) Qingyuan, Guangdong 132.4 Jiangsu Fogang, Guangdong 494.2 Anhui Yingde, Guangdong 756.5 Zhejiang Yunfu, Guangdong 255.3 Chongqing Shaoguan, Guangdong 678.7 Hunan Liaoning Jiangxi Subtotal 4,540.8 Chongqing 1,304.7 Guangxi Core region of Changsha, Hunan 148.9 Guangdong Central and West China Zhuzhou, Hunan 873.3 Ganzhou, Jiangxi 218.7 Subtotal 2,545.6 4,000 Average land cost by region (China) Jiangsu Kunshan, Jiangsu 89.9 3,171 3,075 Yangtze River Delta Jiaxing, Zhejiang 202.3 3,000 Average land cost: Anhui Bengbu, Anhui 892.4 RMB1,556 per sq.m. 2,000 1,598 Subtotal 1,184.6 1,562 1,324 1,178 1,093 Nanning, Guangxi 284.2 1,000 603 Beibuwan 338 Yulin, Guangxi 1,117.3 111
0 Subtotal 1,401.5
Jiangxi
Liaoning
Anhui
Jiangsu Guangxi
Hunan
Zhejiang
Chongqing
(ex Guangzhou Bohai Rim Shenyang, Liaoning 1,713.0
Guangdong Guangdong Guangdong -
Guangzhou) Subtotal 1,713.0
Australia Sydney, NSW 20.8
Subtotal 20.8
20 Land bank overview (cont.)
(as of 31 Dec 2015) Land bank breakdown by region (by value) Land bank breakdown by city tier (by value)
Bohai Rim Australia 3% 3% Beibuwan 4% Yangtze River Delta 7% Tier 1/ Lower Guangzhou Int’l tier cities 29% cities 28% 32% Core region of Central and West China Tier 2 27% Guangdong cities (ex-Guangzhou) 40% 27%
Land bank breakdown by type (by GFA) Land bank breakdown by status (by GFA)
Completed and sold, Auxiliary Low density but yet to be delivered residentials facilities /Auxiliary facilities 1% 3% 6% Investment Completed properties and held for 5% sale 8%
Held for Commercial Residential future 28% apartments development 63% Under 48% development 38%
21 Land bank expansion
High-quality projects successfully acquired in 2015 Acquired Interest Total GFA Total cost Avg. land cost Name City Type¹ Approach Date % (sqm) (RMB million) (RMB per sqm) Jiaxing, 1 Jiaxing Aoyuan Gold Coast C, R Land auction Feb 2015 100% 202,300 221 1,093 Zhejiang Sydney, 2 One30 Hyde Park Sydney 2 R Land acquisition Mar 2015 70% 15,000 610 40,619 Australia Meizhou, 3 Wuhua Aoyuan Plaza C, R Land auction Mar 2015 100% 135,800 170 1,251 Guangdong Nanning, 4 Nanning Aoyuan Hanlin Shangzhu 3 C, R Equity acquisition Apr 2015 55% 74,300 225 3,033 Guangxi Nanning, 5 Nanning Aoyuan Hanlin Mingmen 3 C, R Equity acquisition Apr 2015 55% 142,900 396 2,775 Guangxi Bengbu, 6 Bengbu Aoyuan Hanlin Huafu 3 R Equity acquisition Apr 2015 55% 325,600 419 1,287 Anhui Zhuhai, Industrial 7 Zhuhai Aoyuan Plaza C, R Aug 2015 93% 270,800 740 2,740 Guangdong redevelopment Panyu, Commission 8 Lianhua Hill Aoyuan R Aug 2015 100% 280,800 600 2,137 Guangzhou development Changsha, 9 Liuyang Aoyuan Plaza C, R Land auction Sep 2015 100% 148,900 123 828 Hunan Nanning, 10 Nanning Aoyuan Hanlin Langting C, R Land auction Sep 2015 60% 67,100 133 1,992 Guangxi Bengbu, 11 Bengbu Aoyuan Hanlin Yinzuo 3 C, R Equity acquisition Oct 2015 55% 706,300 950 1,345 Anhui Foshan, 12 Foshan Aoyuan C, R Land auction Nov 2015 100% 116,200 1,087 9,358 Guangdong Sydney, 13 188 Maroubra Sydney R Land acquisition Nov 2015 100% 5,800 86 14,897 Australia Total 2,491,800 5,760 2,312
Note 1: R = Residential; C = Commercial Note 2: Aoyuan has secured an acquisition loan from Commonwealth Bank of Australia which covers 50% of the acquisition cost of RMB610mn. Aoyuan has paid 70% of the remaining acquisition cost on the basis of interest in joint venture, which amounts to RMB210mn
Note 3: Aoyuan has acquired 55% interests in Hanlin Shangzhu, Hanlin Mingmen, Hanlin Huafu and Hanlin Yinzuo at a net asset value of RMB110mn 22 Land bank expansion (cont.)
High-quality projects successfully acquired since IPO
Breakdown of land bank acquired since IPO (by value) Avg. land cost Total GFA Total cost No. (RMB per sqm) (sqm) (RMB million) Australia 3% 2 369 341,483 126 2008 Shenyang 3% Others 7% 2009 4 876 3,583,868 3,138 Guangxi 3% 2011 7 2,933 1,268,457 3,721 Anhui Guangzhou 5% 30% 2012 8 2,178 1,874,914 4,084 Hunan 6% 2013 8 2,245 2,232,579 5,013
2014 8 1,715 2,657,445 4,557 Chongqing 19% Guangdong (ex-Guangzhou） 2015 13 2,312 2,491,800 5,761 24%
Total 50 1,827 14,450,546 26,400
23 4. Business Updates
24 Upgrading composite real estate and leading beyond healthy lifestyle
Aoyuan is a pioneer in China’s composite real estate development. In 1997, it has successfully developed Guangzhou Aoyuan, the first sports-themed project in China. The motto, which is based on the Olympic spirits, became hugely popular in China. Adhering to its brand philosophy of building a healthy lifestyle, Aoyuan has launched a brand new composite real estate model since 2015 and lead beyond healthy lifestyle!
Adjust proportions of residential Upgrade composite real estate with and commercial properties in themes of cultural tourism, dynamical manner to speed up regimen, and senior care to sales and cash collection enhance asset quality and valuation
Open up Australian property market Develop Internet+ Property to achieve parallel development business and cross-border in domestic and overseas markets e-commerce O2O platform
25 Favourable development in overseas markets
Successful strategic plan in overseas markets through localization strategy Australian projects achieves outstanding performance
In Mar 2015, Aoyuan has acquired One30 Hyde Park in Sydney CBD through a joint venture with Ecove, a prominent Australian developer, to develop luxury residential apartments. Aoyuan holds 70% equity interests in the joint venture In 2015, One30 Hyde Park Sydney has achieved contracted sales of approx. A$213mn (equivalent to approx. RMB1.02bn) since launch in Aug, receiving favorable market response
Being one of the few Chinese developers who has gained access to local bank financing when developing overseas, Aoyuan has obtained a loan from CBA which amounted to 50% of land acquisition cost, with the total borrowing cost of below 5% per annum. Besides, Aoyuan has also secured a loan from CBA to fund 100% construction cost of One30 Hyde Park Sydney
Aoyuan Australia office has been set up with a professional team made up of Australian locals with rich experience in local property development and management. The team is responsible for day-to-day operations and management of Aoyuan’s Australia projects Aoyuan has acquired 188 Maroubra Sydney project for independent development and submitted the DA application on schedule. The launch of 188 Maroubra Sydney project is expected in mid 2016
26 Innovative composite real estate model (cultural tourism)
Aoyuan has invested Mr. Mei Shuaiyuan’s Shanshui Scenery Culture in 2011, laying a foundation for developing composite real estate with a cultural tourism theme. Mr. Mei is the founder of large scale scenic performance in China. In 2015 Aoyuan has collaborated with Shanshui Scenery Culture to develop Aoyuan Shaoguan Impression into the first world-class cultural tourism complex in South China.
Shaoguan sits at the conjunction of Guangdong, Hunan and Jiangxi. It boosts a number of well-known cultural heritages and natural landscapes, including Nanhua Temple (the birthplace of Southern Zen Buddhism) and Mount Danxia (a UNESCO World Natural Heritage site), and attracts over 20mn visitors every year
Aoyuan Shaoguan Impression project has a total GFA of approx. 700,000 sq.m. including 3km coastline along a river. Leveraging on the natural sceneries and Buddhism Zen culture in Shaoguan, the project strives to be the first world-class cultural tourism complex in South China consisting of Buddhism Zen culture, tourism, commercial and residential elements. Upon completion, the project will not only exemplify Aoyuan’s innovative composite real estate model, but also boast a new landmark that enhances Shaoguan’s image and overall competitive power of tourism. Aoyuan will continue to roll out such win-win model between Aoyuan and local governments in other cities in the future
In Sep 2015, Aoyuan held the opening ceremony of Shaoguan Impression where Mr. Mei Shuaiyuan and his team would give their first large scale scenic performance in South China named Platform Sutra Of Hui Neng. Shanshui Zen Theatre will also be permanently located here
27 Establishing cross-border e-commerce O2O platform
China has proposed One Belt One Road initiative to encourage innovative businesses since 2015, including cross-border e-commerce. Guangzhou is one of the first 7 pilot cities for cross-border e-commerce, and others include Shanghai, Shenzhen, Hangzhou, Ningbo, Chongqing and Zhengzhou.
As the pioneer of developing cross-border e-commerce business among its peers in Chinese real estate, Aoyuan has obtained the cross-border e-commerce O2O platform license in Jun 2015. Aoyuan has built its own brand, Aomygod!, which has completed connection with relevant authorities’ system, including customs and quarantine inspection service, etc.
Aoyuan’s cross-border e-commerce O2O platform adopts a model of “Offline experiential stores + Online purchase platform” to provide high quality bonded and duty-paid imported commodities around the world, and to integrate various services of experiencing, trading, product inspection, delivery and communication
The desktop and mobile versions of Aomygod! have been officially launched. And about ten self-owned stores, experiential stores and franchisee has opened. Therefore, customers can gain convenient access to online and offline shopping
Physical self-owned stores and experiential stores are helpful in improving customer flow and attracting more merchants, thus boosting sales, leasing and operation of projects
28 5. Appendix
29 Company structure
(as of 8 Mar 2016)
Cathay Capital Group Guo Zi Wen/Guo Zi Ning 1 Public
Approx. 10% Approx. 50% Approx. 40%
Commercial Property Property Property operations development investment management
Note 1: Deemed interests
30 Corporate milestones
Aoyuan has grown from a leading regional developer in Guangdong to a leading player with its presence in five major economic regions including Pearl River Delta, Yangtze River Delta, Bohai Rim, Central & Western China and Beibuwan; has successfully set up a strategic plan in Australia property market, a first step towards global markets
2016: Secured a totalled US$180mn syndicated loan led by Nanyang Commercial Bank
2016: Fitch upgraded credit rating outlook to positive with “B+” credit rating affirmed
2013: Raised full year contracted sales target 2015: Contracted sales achieved 112% of 2015 full from RMB7.5bn to 8.5bn, and surpassed year target with RMB15.2bn, tripling 2012 contracted RMB10bn by Dec 2013, becoming a member of sales the over-RMB1bn group 2006: Cathay Capital Group invested in Aoyuan 2015: Issued RMB2.4bn and RMB1.5bn domestic as a pre-IPO strategic investor 2012- 2013: Aoyuan issued its debut USD Bond bonds through public and private offering in late 2012 and subsequently tapped the same respectively 1999-2001: Successful sales of Guangzhou bond in early 2013, raising an aggregate of Aoyuan and Panyu Aoyuan US$225mn 2015: Issued US$250mn and US$100mn senior notes through public and private offering respectively, 1997: Zi Ye was established in PRC, which 2011: Took advantage of the growth in the reaffirming recognition from international capital marked the beginning of Aoyuan Group Yangtze River Delta Region and successfully markets and ABCI expanded into Jiangsu 2015: Announced the first overseas project, One30 Aoyuan instituted a clear strategy of “a leader in 2007: China Aoyuan Property Group Hyde Park Sydney, to open up overseas markets integrated properties and an operator of the Limited (Stock code: 3883.HK) was listed urban development in the future” on the Main Board of SEHK 2014: Contracted sales recorded RMB12.2bn, up 22% yoy, maintaining robust growth momentum Chairman Guo Zi Wen introduced the 2007: Geographical reach extended beyond "Sports+Property" development concept, and Guangdong Province by entering into Guangxi, 2014: Successfully issued a US$300mn senior notes, subsequently the “exercise starts from home" Shenyang and Chongqing, paving the way for with oversubscription of 4.2x, establishing concept which became hugely popular in China Aoyuan to become a leading regional developer recognition from international capital markets 1996-2006 2007-2013 2014 – Now Developed a sports-themed project, Listed on Main Board of SEHK, implemented a strategy Sales growth continue to be above industry average, pioneered in composite real estate development of “developing commercial and residential properties upgrading composite real estate development model, had Cathay Capital Group as a pre-IPO strategic investor in parallel” , and explored composite real estate with and leading beyond healthy lifestyle themes of cultural tourism , regimen and senior care
31 Professional management team and outstanding corporate governance
Board of Directors
4 Executive Directors, 1 Non-executive Director, and 3 Independent Non-executive Directors
Audit Committee, Remuneration Committee, and Nomination Committee
CHEUNG ZHONG Ping MA Jun GUO Zi Ning GUO Zi Wen YANG Zhong TSUI King Fai HU Jiang Kwok Keung
Executive Director, Executive Director, Vice Chairman, Chairman, Non-executive Independent Non- Independent Non- Independent Non- CFO COO CEO Group Founder Director executive Director executive Director executive Director
Senior Management
Financial Investment Capital markets, Engineering Commercial Management, HR Operations Brand and Sales Project and Fund Management, Properties Overseas project and Administration Management & Marketing Management Management development Management Design and R&D
MIAO Si Hua CHEN Yong Jacky CHAN ZHONG Ping MA Jun MAI Ze Nian XIAO Yi GAO Xiang Dong
Assistant to Vice President Vice President Vice President CFO COO Vice President Vice President President
Experienced and professional management with excellent track record in China’s real estate market, upholding stable and prudent operating principles, excellent compliance in corporate governance, as well as high corporate transparency to ensure balanced and sustainable development
32 Australia projects - One30 Hyde Park Sydney
One30 Hyde Park is well-located in the heart of Sydney CBD. It Sydney CBD faces north over Hyde Park to Royal Botanic Gardens, Sydney Opera House as well as Sydney Harbour, enjoying a stunning 280-degree view
One30 Hyde Park is in close proximity to the landmark Sydney Tower, Chinatown, the oldest Australian Museum, and the largest St Mary Cathedral, etc.
One30 Hyde Park is located above the heritage listed Museum MTR Station, enjoying convenient transportation
Sydney Harbour Royal Botanic St. Mary Australian Bridge Sydney Gardens Cathedral Museum Opera House Art Gallery of NSW Hyde Park
33 Australia projects – 188 Maroubra Sydney
Located in the heart of Maroubra, a beachside district in eastern Sydney, 188 Maroubra Sydney is adjacent to the world- class University of New South Wales (UNSW), and is only a 15-minute drive away from Sydney CBD
188 Maroubra Sydney also enjoys a 10- minute walking distance from Maroubra Beach, and a 10-minute drive away from two globally renowned beaches, Bondi Beach and Coogee Beach
34 About Shanshui Scenery Culture
1 Aoyuan has invested in Mr. Mei Shuaiyuan‘s Shanshui Scenery Culture in 2011, holding 10% interests
Shanshui Scenery Culture carries on tourism show curating, design and production, cultural tourism planning of scenic area, and operation and management of cultural tourism projects. It has produced over a 2 dozen of scenic performance and dramas, including Impression – Liu Sanjie (Guilin and Yangshuo, Guangxi), the first large scale scenic performance in China, Zen – Shaolin (Mount Song, Henan), Worship Ceremony – Mount Tai (Mount Tai, Shandong), Princess Wencheng (Lhasa, Tibet), and Fox Fairy in Mount Tianmen (Zhangjiajie, Hunan). Among 3 4 these, four shows have been designated as National Cultural Industry Demonstration Site, which have been drawing over 4 million audience each year.
1. Impression–Liu Sanjie 2. Zen Shaolin 3. Worship Ceremony – Mount Tai 4. Prosperous Era of Northern Song Dynasty
35 IR contacts
Jacky Chan Anthony Cheng Emma Qi
Group Vice President, President of Australia Office, Head of Corporate Financial Controller Senior Corporate Finance Manager Finance and Investor Relations
HK: (852) 2180 9566 HK: (852) 2180 6981 HK: (852) 2180 9566
China: (86 20) 3868 6666 China: (86 20) 3868 6666 China: (86 20) 3868 6666
Email: [email protected] Email: [email protected] Email: [email protected]
Aoyuan Mansion, No.108, Company HQ Huangpu Avenue West, Tianhe, Guangzhou Unit 1901-02, 19/F, One Peking, HK Office No.1 Peking Road, T.S.T, Hong Kong
36 Disclaimer
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.
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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.
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