Monthly Newsletter August 2019

(01628.HK) Stock Data I. Sales Performance as of August 2019 For the first eight months of 2019, Yuzhou Properties’ contracted Close Price HK$3.42 sales reached RMB40,648 million, increased by 48.85% y/y, (9/9/2019) contracted sales in August 2019 was RMB6,112 million, increased 52-week Range HK$2.56 – 4.84 by 118.44 % y/y. ◼ Our contacted sales in August 2019 was RMB6,112 million, increased by 17.21 Market Cap HK$ billion 118.44 % y/y. The contracted GFA was 410,533 sq.m., increased by No. of Issued 169.80 % y/y. ASP for this month was RMB14,887 /sq.m.. 5,032 million shares Shares ◼ For the first eight months of 2019, Yuzhou Properties achieved a total Listing Date 2 November 2009 contracted sales of approximately RMB40,648 million, increased by 48.85% y/y, the attributable interest of Yuzhou is around 60%. Achieved contracted GFA was 2,693,763 sq.m.. ASP for the first eight months was 2019IR Financial Highlights RMB15,090/sq.m.. In addition, approximately RMB125 million was subscribed but in the process of signing contracts. Revenue RMB11,637 million Contracted Contracted As of Total Contracted ASP Sales GFA Gross Profit RMB3,140 million # Region (RMB mn) (%) (sq.m.) (RMB/sq.m.) Profit West Strait Economic 1 5,258 12.9% 353,420 14,878 Attributable to RMB1,639 million Zone Shareholders 2 Yangtze River Delta 28,157 69.3% 1,679,882 16,762 Core Profit Attributable to RMB1,397 million 3 Central Region 3,753 9.2% 320,384 11,714 Shareholders 4 GHM Bay Area 198 0.5% 22,209 8,933 Basic Earnings per Share RMB33 cents 5 Southwest Region 841 2.1% 94,416 8,903 Core Earnings per Share RMB28 cents 6 Bohai Rim Region 2,441 6.0% 223,452 10,924

Corporate Finance and Investor Relations Team II. Monthly Sales Chart (Jan 2018 – August 2019)

Email: [email protected] Contracted Sales ASP Hong Kong Office (RMB’ mn） (RMB/sq.m.) 25,000 Tel: +852 2508 1718 10,301 Fax: +852 2510 0265 10,000 19,667 19,626 14,993 Shenzhen Office 15,952 18,390 20,000 14,694 7,184 8,000 15,553 16,611 15,857 14,832 15,566 14,091 14,887 14,020 Tel: +86 755 8321 7980 14,450 13,082 13,809 6,062 6,112 6,561 6,301 Fax: +86 755 8321 5470 13,314 15,000 6,000 5,532 5,118 5,137 5,151 Wechat ID: yuzhouproperties 12,859 11,716 4,543 4,111 4,012 10,000 4,000 3,080 2,804 3,018 2,758 3,053 3,016 2,798

2,000 5,000

0 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Contracted Sales in 2018 Contracted Sales in 2019 ASP in 2018 ASP in 2019 Monthly Newsletter August 2019

III. Monthly Press Room

◼ Yuzhou Cofco Metropolitan 09 as the most customer-favored project in Nanjing overachieved the 1H2019 sales target with a contracted sales completion rate of 109% (6 August 2019, Nanjing) Yuzhou Properties has broken through the slow property market under market control and expanded its business in Lishui, Nanjing. The “Metropolitan” series attracted a large number of clients and reached an impressive record with more than 100 units sold within 30 minutes and 4 buildings sold out within 28 days which has received an overwhelming market response. Yuzhou Metropolitan 09 overachieved the 1H2019 sales target with a contracted sales completion rate of 109%, resulting that the branch company in Nanjing won the “Battle Company” award in the second quarter. Leveraging on the strong client-oriented product competitiveness, as well as the can-do spirit of the team, the Group achieved an excellent results during the period. Furthermore, Yuzhou expanded its business in Nanjing to launch 14 projects within 5 years to demonstrate its determination and confidence in enhancing market penetration. Through regional penetration, the Company firmly believes that they will soon to achieve the sales target of a hundred billion RMB. ◼ Yuzhou Properties maintains to be ranked TOP 10 among TOP 100 companies in Xiamen

(6 August 2019, Xiamen) “2019 Top 100 Xiamen Enterprises”, an awards platform jointly organized by Xiamen Enterprises and Entrepreneurs Association, Xiamen Daily and Xiamen Media Group, is the largest, most impartial and most authoritative enterprise evaluation in Xiamen. The evaluation has been successfully held for 14 consecutive years. On 6 August, the result of “2019 Top 100 Xiamen Enterprises” was officially announced, in which Yuzhou Properties maintains to be ranked in the Top 10, with an outstanding performance on operating revenue of RMB24,306 million. Leveraging on the outstanding performance of economic indicators, including operating revenue, profit and scale, Yuzhou achieved impressive result in the competition, proving that the Company’s development strategy is accurately pointed in the right direction and is recognized by the industry. On track to achieve a sales target of 100 billion dollars, the Group will continue to advocate the “Cultivating in Regions, Leading the Market” strategy in order to achieve the long-term growth of brand value and attain sustainable business development.

◼ Yuzhou Properties’ controlling shareholders continuously increase shareholding under the Scrip Dividend Scheme

(7 August 2019, Hong Kong) Yuzhou Properties announced that Mr. Lam Lung On, J.P., the Founder and Chairman of the Board of Directors, and Ms. Kwok Ying Lan, the Vice Chairman of the Board of Directors, opted to receive their 2018 final dividend in the form of “scrip dividend”, the equivalent to increasing 148,755,853 shares of the Company, accounting for 3.09% of the issued shares. According to previous announcement, the Group declares a final dividend of HKD20.5 cents per share for the year ended December 31, 2018 to the qualified shareholders. In early July, Mr. Lam Lung On, J.P., and Ms. Kwok Ying Lan, increased the Company’s shares for the second consecutive time generating total shares of 1 million. This is the third time that shares have been increased by a “Scrip Dividend Scheme”, which demonstrates the confidence of the controlling shareholders in the long-term development of Yuzhou Properties. Monthly Newsletter August 2019

III. Monthly Press Room (Cont’d)

◼ Yuzhou Properties awarded “2019 China Top 30 Real Estate Enterprises in terms of Comprehensive Strength” (8 August 2019, Shanghai) Leveraging its excellent performance, Yuzhou Properties won various industury awards at the “2019 China Top 100 China Real Estate Enterprises Summit”, which was organzied by EH Consulting. Awards included “2019 China Top 30 Real Estate Enterprises in terms of Comprehensive Strength”, “2019 China Best 10 Real Estate Enterprises in terms of Operating Capabilities”, and “2019 China Best 25 Real Estate Enterprises in terms of Brand value”. The awards aimed to recognize excellent real estate enterprises and raise the bar in the industry. In addition, Yuzhou Properties won “2019 China TOP 30 China Real Estate Enterprises in terms of Annual Influential” in Boao Real Estate Forum 2019, reflecting the strong competitive edge of the Company. These acknowledgements demonstrated the excellent achievements of Yuzhou in the past year and also demonstrated Yuzhou is supported by its consumers and industry groups in its continuous efforts on business development.

◼ Hefei Galaxy Park wins the “Oscar” award of the real estate industry (15 August 2019, Hefei) Yuzhou firmly believes that excellent architecture comes from the integration of art and history. Originating from this concept, Hefei Galaxy Park was built with the combination of modern architecture style and the idea of environmental protection. With this new approach , Hefei Galaxy Park won International Property Awards – Best Commercial Architecture in Asia – Pacific region. This award is often referred as the “Oscar” of the real estate industry. Since its establishment in 2008, the award has been highly recognized in the industry due to its rigorous judging criteria and professional judging panel that consists of 80 renowed professionals, making it becoming the largest, most prestigious and most widely recognized award in the Asia-Pacific region. The Award encourages Yuzhou to take the mission of inheriting history and traditional culture conscientiously, create more properties in a Chinese style, and express more characteristics of traditional Chinese culture. Yuzhou continuously seeks to break through design limitations create a brand new Chinese style of construction so as to satisfy the basic needs of its customers and and also create a new milestone in the world of culture and commerce.

◼ Yuzhou Group maintains to be named one of “China Top 500 Private Enterprises” (22 August 2019, Qinghai) On 22 August, the “China Top 500 Private Enterprises Summit 2019” held in Xining, Qinghai, organized by China Federation of Industry and Commerce and The People’s Government of Qinghai Province. Yuzhou Properties ranked 349th among the “China Top 500 Private Enterprises” for the fourth consecutive year with a revenue of RMB24,300 million. It reflected the 100 billion deployment strategy of “Cultivating in Regions, Leading the Market” has being successfully impletemened.

The judging panel of “China Top 500 Private Enterprises” consists of authoritative experts to assess each business in an objective, fair and scientific way. The ranking is one of the important brand projects of China Federation of Industry and Commerce and the result will be listed in descending order regarding the total operating revenue. Therefore, the recognition proved that Yuzhou’s business opration status, business characteristics as well as business manamgenet are in the forefront position in the industry. Monthly Newsletter August 2019

III. Monthly Press Room (Cont’d)

◼ Yuzhou Properties 2019 Interim Results Announcement was held successfully high dividends return for shareholders (27 August 2019, Hong Kong) On 27 August, Yuzhou Properties held its 2019 Interim Results Announcement at Island Shangri-La Hotel in Hong Kong, attracting over 300 investors, analysts and media. Amid complex international market conditions and tight real estate regulatory policies, in the first half of 2019, the Group’s accumulated contracted sales amounted to RMB28,473.76 million, representing an increase of 32.47% year-on-year. Total revenue was RMB11,637.43 million, representing a year-on-year increase of 25.91%. Net profit to shareholders increased by 23.22% to RMB1,639.12 million with a net profit margin at 14.1%. At the same time, the Company declared an interim dividend of HKD12 cents per share for 2019 and a special interim dividend of HKD3 cents per share to mark the 10th anniversary of listing of the Company. Dividend payout ratio reached 46.81% and increased by 62.1% year-on-year, demonstrating the sincerity of Yuzhou to provide a good return to shareholders. For the ten years since the listing of the Company, Yuzhou Properties has always shown commitment to maximizing shareholders’ interests and provid continuous, remarkable returns to its shareholders, which have always been unanimously recognized by shareholders and investors.

◼ Yuzhou’s Two Projects, “Yuzhou Langham Bay” and “Yuzhou Langyue” , officially launched in Foshan (29 August 2019, Foshan) Watched by the Foshan branch of Yuzhou Properties and 30 media, Shune Leliu and Sanshui Leping was officially announced, namely “Yuzhou Langham Bay” and “Yuzhou Langyue”. These two new products mark Yuzhou’s entry into Foshan, Yuzhou Langham Bay and Yuzhou Langyue and both demonstrate the high level of Yuzhou craftsmanship. Staying with the theme concept of “Building Cities with Heart, Building Homes with Love”, Yuzhou has integrated the “Lingnan Curve (嶺南弧)” into these two projects to inherit Foshan’s traditional culture and echo craftsmen’s spirit in Foshan. Yuzhou has always been devoted to creating high-quality living. This time, Yuzhou encountered Foshan with the expectation of products and a better life in the future. It will continue to enhance the market penetration in Foshan and strive to bring a new high-quality life experience to Foshan citizens.

◼ The project launch of Yuzhou Phoenix Mansion in Tangshan was held at Shangri-La Hotel in Tangshan

(31 August, Tangshan) Thousands of guests, including media, business partners, new and existing customers, and industry groups, gathered at the Shangri-La Hotel in Tangshan on 31 August to watch the product launch of “Yuzhou Phoenix Mansion in Tangshan ” . At the presentation, Ms. Zhang Rifang, General Manager of Yuzhou Properties Marketing Management Center, explained in detail the concept of “Yuzhou Phoenix Mansion in Tangshan ”. As the first masterpiece of Yuzhou to enter Tangshan, Yuzhou built a landmark of new Chinese project that met the highest standards of construction.

Phoenix Mansion is located in Fenghuang New City, which is also a prime area in Tangshan with strong geological advantages. In terms of landscape layout, Phoenix Mansion created a summer resort featuring a new model of future living. At the same time, the exquisite workmanship of the Phoenix Mansion that combines the whole stone + real stone painting style with rolling outline strings and the skylines, also creates an unprecedented construction in the Tangshan property market. Through the construction of space, Yuzhou explores and discovers the changes in people’s lifestyle, and shows the passion of Tangshan with the style of the Tang Dynasty. Monthly Newsletter August 2019

III. Monthly Press Room (Cont’d)

◼ Yuzhou achieves further success in Suzhou and is ranked Top 10 Contracted sales Enterprises again (31 August 2019, Suzhou) CRIC officially announced the “Suzhou (including Wujiang) Real Estate Enterprises TOP 30 Contracted Sales from January to August 2019”. The ranking comprehensively and objectively reflected the sales operation and integrated development strength among Suzhou real estate enterprises in the first eight months of 2019, from the perspectives of controlling interests and liquidity.

With reliable quality, marketing, service and execution capability, as well as strong brand appealing power, Yuzhou Properties was once again ranked one of Top 10 enterprises in the “List of Suzhou Real Estate Enterprises in Attributable Sales Amount/GFA/Unit”, claiming 6th in total sales from January to August in 2019, and ranked 5th in terms of sold GFA and sold units in less than three years after launching projects in Suzhou. The projects of Yuzhou Properties in local area, including Yuzhou Honor Hill, Blue Seasons and Honor Galaxy, continue to be popular with an overwhelming success.

IV. Awards

Date Award Organization Best Innovation Award in the “China IR Excellence Awards” Roadshow China Huanqiu.com; China Times; Charity Practice Award, Charitable Character Award January International Business Daily 2018 Golden Hong Kong Shares Most Valuable Property Zhitong Financial; Tonghuashun Company Top 40 China Real Estate Developers (Rank 36) China Real Estate Association; Top 10 China Real Estate Developers with High Potential Shanghai E-house China R&D Institute; (Rank 3) China Real Estate Evaluation Center 2019 Top 100 China Real Estate Companies (Rank 36) March 2019 Top 30 China Real Estate Companies (G30) (Rank 22) Guandian.cn 2019 Top China Real Estate Management and Team (Rank 24) New Fortune – The Best IR Hong Kong Listed Company New Fortune

2018 Top 50 China Real Estate ROE (Rank 21) Leju Finance April 2018 Top 30 Property Developer of Net Profit Margin (Rank Tospur 10) China Real Estate Association, China 2019 Best 50 China Real Estate Listed Companies with Property Management Association and Strongest Comprehensive Strengths (Rank 34) the China Real Estate Appraisal Centre 2019 Best 5 China Real Estate Listed Companies with Best of Shanghai E-House China R&D Business Performances (Rank 2) Institute 2019 Top 10 Chinese Listed Property Company in Hong Development Research Center of the May Kong – Financial Stability (Rank 8) State Council, the Hang Lung Center for 2019 Top 10 Chinese Listed Property Company in Hong Real Estate at Tsinghua University and Kong – Investment Value (Rank 7) China Index Academy 2019 Top 100 Chinese Property Service Enterprises (Rank China Index Academy 36) Top 100 Hong Kong Listed Companies Awards Ceremony - Top 100 Hong Kong Listed Companies Outstanding Property Industry Award Research Center Monthly Newsletter August 2019

IV. Awards

Date Award Organization 2019 Quality Chinese Real Estate Enterprises Award PR Asia 2019 Asia Pacific Property Awards – Award Winner of Retail May Aedas Architecture in China 2019 China Blue Chip Real Estate Award Economic Observer 2019 Listed Real Estate profitable enterprises TOP50 (Rank Sina Finance 10) June China Blue Chip Real Estate Developer Economic Observer China Real Estate Business Top 40 Real Estate Brands in China (Rank 39) China Real Estate Website China Real Estate Think Tank Commercial Housing of Suzhou Housing Enterprises in 1H2019 – Sales Amount Rank No.6 Commercial Housing of Suzhou Housing Enterprises in 1H2019 – GFA of Contracted Sales and Units of Contracted CRIC Sales No.5 Yangzhou Commercial Housing Transaction in 1H2019 Top 10 – Rank No.4 July Fortune China 500 for 2019 (Rank No.347) The Fortune China and CICC China2019 Golden Tripod Award - Annual Commercial Real Winshang Estate Excellence Award The Hong Kong Institute of Financial 2019 IFAPC Outstanding Listed Companies Award Analysts and Professional Commentators Limited Shopping Center Green Operation Demonstration Unit IFeng.com and house.ifeng.com Xiamen Enterprises and Entrepreneurs 2019 Top 100 Companies in Xiamen (Top 10) Association, Xiamen Daily, Xiamen Media Group 2019 China Top 30 Real Estate Enterprises in terms of Comprehensive Strength 2019 China Best 10 Real Estate Enterprises in terms of EH Consulting Operating Capabilities 2019 China Best 25 Real Estate Enterprises in terms of Brand value August 2019 Real Estate Fashion Awards - 2019 Top 30 Real Estate Guandian.cn Influence Company, 2019 Top 30 Real Estate Influencer China Federation of Industry and China Top 500 Private Enterprises – (Rank 349) Commerce, The People’s Government of Qinghai Province Suzhou CBD Real Estate Sales Rank (January to August 2019) - Sold GFA and units - (Rank 5), contracted sales – CRIC (Rank 6) Best Commercial Architecture in Asia – Pacific region International Property Awards Monthly Newsletter August 2019

V. Monthly Research Report

Date Institution Rating Target Price 26 August J.P.Morgan Overweight HKD$ 6.50 27 August Haitong International Buy HKD$ 8.46 27 August CGS-CIMB Add HKD$ 5.60 27 August Citi Buy HKD$ 5.05 27 August Credit Suisse Outperform HKD$ 5.50 28 August Huatai Buy HKD$ 4.90 28 August CICC Outperform HKD$ 4.20 28 August CMBI Buy HKD$ 5.28 28 August Macquarie Outperform HKD$ 5.51 28 August TF Securities Buy HKD$ 6.09 29 August Zhongtai International Buy HKD$ 5.70 31 August Essence International Buy HKD$ 5.30

VI. About Yuzhou Properties Company Limited (01628.HK)

Established in 1994, Yuzhou Properties is a property developer headquartered in Shanghai with a national foothold. Adhering to its strategy of Cultivating in Regions Leading the Market, Yuzhou Properties strives to develop residential and commercial properties which align with market trends in first-and second-tier cities. As at 30 June 2019, the Company had over 138 projects under various stages of development in Shanghai, Tianjin, Nanjing, Hefei, Hangzhou, Suzhou, Huizhou, and Hong Kong and so on. The total construction area under construction and held for future development is 1,918 million sq.m. in aggregate GFA, accounting for about 40.3%, 23.6%,19.0%, 7.6%, 5.9% and 3.6%, respectively in the Yangtze River Delta Region, Bohai Rim Region, West Strait Economic Zone, Central China Region, Guangdong-Hong Kong-Macau Greater Bay Area and Southwest Region. Renowned for its distinguished product quality, diversified product portfolio, strong brand awareness and seasoned management team, Yuzhou Properties has been named “Top 100 China Real Estate Enterprises” for twelve years in a row; and Top 50 China Real Estate Enterprises from 2011 to 2019. Yuzhou Properties was selected as the Hang Seng Composite LargeCap & MidCap Index Constituent Stocks, Shenzhen-Hong Kong Stock Connect, Shanghai-Hong Kong Stock Connect, and becomes constituent of MSCI China Index.

For more information of Yuzhou Properties, please visit the company website: http://www.yuzhou-group.com