Redco Properties Group
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REDCO PROPERTIES GROUP Company Presentation Confidential October 2020 PRELIMINARY | SUBJECT TO FURTHER REVIEW AND EVALUATION Disclaimer NOT FOR PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, INTO THE UNITED STATES OR TO, OR FOR THE ACCOUNT OR BENEFIT OF, ANY U.S. PERSONS. This presentation has been prepared by Redco Properties Group Limited (the “Company”) and has not been independently verified. By accepting this presentation, you agree to maintain absolute confidentiality regarding the information disclosed in this presentation. No representation, warranty or undertaking, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or the opinions contained herein. Neither the Company, any of its subsidiaries or affiliates nor any of their respective directors, officers, employees, agents, advisors or representatives shall be in any way responsible for the contents of this presentation, or shall be liable for any loss arising from any information presented or contained in or derived from this presentation or otherwise arising in connection therewith. In addition, no person is authorized to give any information or to make any representation not contained in and not consistent with this material and, if given or made, such information or representation must not be relied upon as having been authorized by or on behalf of the Company. The information presented or contained in this presentation is provided as at the date of this presentation and is subject to change without notice and its accuracy is not guaranteed. This presentation is being made available by the Company to a limited number of recipients solely for information and convenient reference purposes. This presentation does not constitute or form part of, and should not be construed as, an offer to sell, subscribe or issue or the solicitation of an offer to buy or acquire securities of the Company or any of its subsidiaries or affiliates in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction or an inducement to enter into an investment activity. No part of this presentation, nor the fact of its distribution, should form the basis of, or be relied on in connection with, any contract or commitment or investment decision whatsoever. This presentation is highly confidential and being given solely for your information and for your use and may not be shared, copied, reproduced or redistributed, in whole or in part, to any other person in any manner. No consideration has been given to particular investment objectives, finances or needs of any recipient. This presentation is not intended to provide and should not be relied upon for tax, legal or accounting advice, investment recommendations or a credit or other evaluation of the Company. Prospective investors should consult their tax, legal, accounting or other advisers. The distribution of this presentation in other jurisdictions may be restricted by law, and persons into whose possession in this presentation comes should inform themselves about, and observe, any such restrictions. In particular, this presentation may not be taken or transmitted into the United States, Canada or Japan or distributed, directly or indirectly, in the United States (including its territories and possessions, any state of the United States and the District of Columbia), Canada or Japan. This presentation contains “forward-looking statements”, which include all statements other than statements of historical facts, including, without limitation, any statements preceded by, followed by or that include the words “targets”, “believes”, “expects”, “aims”, “intends”, “will”, “may”, “anticipates”, “would”, “could” or similar expressions or the negative thereof. Such forward-looking statements involve known and unknown risks, uncertainties and other important factors beyond the control of the Company that could cause the actual results, performance or achievements of the Company to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements. You are cautioned not to place undue reliance on such forward-looking statements. Neither the Company, any of its subsidiaries or affiliates nor any of their respective directors, officers, employees, agents, advisors or representatives intends or has any duty or obligation to supplement, amend, update or revise any of the forward-looking statements contained in this presentation. This presentation contains data sourced from and the views of independent third parties. In replicating such data in this presentation, the Company makes no representation, whether express or implied, as to the accuracy of such data. The replication of any views in this presentation should be not treated as an indication that the Company agrees with or concurs with such views. This presentation contains proprietary information and no part of it may be 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. Market data, industry participants data, industry forecasts and statistics in this presentation have been obtained from both public and private sources, including market research, publicly available information and industry publications. This information has not been independently verified by the Company and the Company does not make any representation as to the accuracy or completeness of that information. In addition, third-party information providers may have obtained information from market participants and such information may not have been independently verified. Due to possibly inconsistent collection methods and other problems, such statistics herein may be inaccurate. You should not unduly rely on such market data, industry participants data, industry forecasts and statistics. This presentation may include certain measures of financial performance which are not measures of financial performance under the International Financial Reporting Standards (“IFRS”), such as "EBITDA" or "EBITDA margin." These measures are presented because the Company believes they are useful measures to determine the Company's operating cash flow and historical ability to meet debt service and capital expenditure requirements. However, they should not be considered as an alternative to cash flows from operating activities, a measure of liquidity or an alternative to net profit or indicators of the Company's operating performance on any other measures of performance derived in accordance with IFRS. Because they are not IFRS measures, they are not comparable to similarly titled measures presented by other companies. References to “Contracted sales” refer to purchase price of formal purchase contracts we entered into with purchasers of our properties. We compile contracted sales information through our internal records, and such information has not been audited or reviewed by PricewaterhouseCoopers, our independent Certified Public Accountants. As these sales and purchases contracts are subject to termination or variation under certain circumstances pursuant to their contractual terms, or subject to default by the relevant purchasers, they are not a guarantee of current or future contracted sales. You should in no event treat such contracted sales information as an indication of our revenue or profitability. Our subsequent revenue recognized from such contracted sales may be materially different from such contracted sales. Accordingly, you should not unduly rely upon our disclosure on contracted sales contained in this presentation as a measure or indication of our current or future operating performance. If you have any doubt about the foregoing or any content of this presentation, you should obtain independent professional advice. BY ACCEPTING THIS PRESENTATION, THE RECIPIENT ACKNOWLEDGES AND AGREES THAT THE RECIPIENT (A) IS NON-U.S. PERSON AND OUTSIDE THE UNITED STATES, (B) IS ACCUSTOMED TO RECEIVING THE TYPE OF INFORMATION CONTAINED IN THIS PRESENTATION AND (C) IS A PERSON INTO WHOSE POSSESSION THIS PRESENTATION MAY BE LAWFULLY DELIVERED IN ACCORDANCE WITH THE LAWS OF THE JURISDICTION IN WHICH IT IS LOCATED. This presentation does not constitute an offer to sell or the solicitation of an offer to buy any securities in the United States or any other jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. 1 Table of contents 1. Company Overview 2. Business Review 3. 1H2020 Financial Overview 4. Outlook and Strategies Appendix 2 1. Company Overview 3 Overview of Redco Group ◼ Entered into 30 cities in with 101 property development projects ◼ Strategically located projects in targeted cities such as Nanchang, Jinan, Tianjin etc. Tianjin Bohai Rim ◼ ~70% land bank located in 1st and 2nd-tier cities market(1) Shijiazhuang Comprehensive Yantai ◼ Focused expansion in “3+N+1” regions, with “3” being Greater Bay coverage Area, Yangtze River Delta Region and the Bohai Rim; “N” being the Jinan Mid-west Region multiple cities in Mid-west Region; “1” being the overseas market Xi’an ◼ International presence with strategic entry into Australian market in Xianyang 2016; recently signed an investment agreement for the Makati project Hefei Shanghai Yangtze River