Redco Properties Group

REDCO PROPERTIES GROUP

Company Presentation

Confidential

October 2020 PRELIMINARY | SUBJECT TO FURTHER REVIEW AND EVALUATION Disclaimer

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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.

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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 Delta in Philippines Macheng Jiangsu Region Wuhan ◼ Consistently achieving high growth in contracted sales with 2014-2019 Huanggang Chongqing Enshi CAGR of 53.7% and recorded historical high level of ~RMB13bn Nanchang Fengcheng contracted sales during 1H2020, representing a significant y-o-y Changsha Huaihua increase of 19.3% Ganzhou Putian Track record of Yongzhou Quanzhou ◼ Achieved high growth in land bank with 2014-2019 CAGR of 29.2% Qingyuan consistent growth and 1H2020 y-o-y growth of 22.8% Huizhou Foshan ◼ High growth in revenue and total assets with 2014-2019 CAGR of Shenzhen Jiangmen Greater Bay Area 19.7% and 45.6% respectively; 1H2020 revenue y-o-y growth of Zhongshan Zhanjiang 345.9% and total asset growth of 13.4% compared to year end 2019

Summary of land bank ◼ Continues to maintain a prudent financial policy, and abide to its healthy and reasonable capital structure and debt level Number of cities 30 ◼ In July 2020, Fitch revised Redco’s rating outlook to B/Positive Prudent financial Number of projects 101 ◼ Ample cash balance, with over RMB14bn and total cash / short-term Sydney strategy debt ratio being 1.47x as of June 30, 2020 Total GFA(1) 17.9mn sq.m. ◼ Net gearing ratio(2) at healthy level for the past 3 years. As of June 30, Company overview 2020, net gearing ratio is 37.1%.

◼ Redco Group (“Redco” or “the Company”), founded in 1992, is an integrated ◼ Diversified financing channels in equity and debt capital markets real estate developer that specializes in development of middle-to-high-end ◼ Strong relationship with onshore and offshore banks including Hang residential properties and commercial properties in China Seng Bank, Bank of East Asia, BOC (Hong Kong) and Minsheng Bank ◼ ◼ Listed in HK Stock Exchange since January 2014 (Stock code: 1622.HK) Diversified Issued USD670mn senior notes from Jan to Aug 2020 financing channels ◼ Entered into a facility agreement of USD50mn 10% bilateral loan ◼ As at 30 June 2020, the Company’s property portfolio comprised 101 property ◼ The Company has successfully raised multiple offshore syndicated development and investment projects with an aggregate GFA of 17.9 million loan facilities, which is not a commonly-seen financing channel among similarly rated companies sq.m. under various stages of in various cities in the PRC and Australia

Notes: (1) Attributable land bank as of June 30, 2020, excluding the Philippines market (2) Net gearing ratio = (Total debt –Total cash) / Total equity; Total cash includes both restricted cash as well as cash and cash equivalents 4 Company History

Inclusion in HSI Established the Composite Introduced the strategy targeting SmallCap Index and expansion strategy Expanded into Relocate mainland Listed in the “Hang 1st-tier cities with a Built strategic MSCI China in mainland, and Jiangxi, and started headquarter to Seng Stock focus on areas presence in 1st –tier SmallCap Index established building a strong Shenzhen, and built Connect Big Bay around the Bohai and leading 2nd-tier Eligible securities presence in Fujian, foothold in Jinan, presence around the Area Composite Rim; Successfully cities under the Shandong and Nanchang and Hefei Pearl River Delta Index” won the Tianjin Shenzhen-Hong Hebei Project Kong Stock Connect scheme

1990s 2001-2005 2006 2008 2009 2010 2012 2014 2015 2016 2017 2018 2019

Achieved 2019 full Accomplishment Completed IPO on Dedicated to a two- Shifted towards Established the Built presence in year contracted sales recognized by being HKEx mainboard, with wheel driven growth focused, corporate structure Australia to explore of over RMB27bn consistently named inclusion in the strategy backed by a professional and led by the Group and overseas markets, China TOP 100 Real Morgan Stanley diversified portfolio specialized supported by local achieved leapfrog Launched “New Estate Developers Capital International focusing on the real development project companies growth Oriental Healthy for years Index estate sector Building Product System 1.0”

5 Shareholding and corporate structure

Chairman of the Board Executive Director, President and founder of the Group and founder of the Group

Mr. Huang Ruoqing Mr. Wong Yeuk Hung (Executive Director Other shareholders (Chairman) & President) 39.1% 26.7% 34.2%

(1622.HK)

Department of Diversified Property Holdings

Business

City PropertyCity

Management Management

Companies

Investment

Committee

Healthcare

Education

Strategic Strategic

Holdings Holdings Holdings Holdings

Property

Tourism

Cultural

Center Risk Risk

Note: As of December 31, 2019

6 Global strategy “3+N+1”

Adhering to the "3+N+1" global strategy:

◼ “3”: strategically focusing on the three core regions of

Tianjin Greater Bay Area, Yangtze Shijiazhuang Bohai Rim River Delta Region, and Bohai Dezhou Yantai Rim Jinan Xianyang Luoyang Taizhou Yangtze River ◼ “N”: actively developing in a Xian Nantong Hefei Zhangjiagang Delta Region number of core cities in the Changzhou Shanghai Mid-west Region Huanggang Suzhou Chongqing Wuhan Nanchang Ningbo Shangrao ◼ “1”: supplement portfolio with Changsha Mid-west Region Fengcheng Quanzhou overseas markets Yongzhou Ganzhou Australia Philippines Putian opportunities such as Australia Foshan Qingyuan and Philippines Zhongshan Huizhou Jiangmen Shenzhen Greater Bay Area Zhanjiang Hong Kong Sidney Makati

7 Operating strategy High turnover “1622” principle

◼ Complete product planning and approval within 1 month after the project is confirmed

◼ Project presales launch (1 floor underground and 7 floors above ground) within 6 months after the project is confirmed

◼ Open the sales office and show rooms 2 weeks before the presales launch

◼ Cash flow positive within 2 quarters after the presales (sell through cycle ≥ 1 year); cash flow positive within 2 months (sell through cycle ≤ 1 year)

8 Product strategy New Oriental Healthy Building Product System

In 2019, Redco released the New Oriental Healthy Building 1.0 Product System with a forward-looking vision and a beautiful upgrade. Redco also established a healthy building research center with Shenzhen University to create a cooperative model of healthy building research conducted by China Real Estate Corporation and academic research institutions. At the same time, Redco released the white paper of “Redco New Oriental's Healthy Building" (《力高新东方的健康建筑》) and put forward a “Two 100 Scheme”—100% of the news projects will 100% meet the standards of state-level healthy building requirements within 3 years.

Redco is forward-looking in the industry and creates a New Oriental Healthy Building Product System with its three pillars based on the New Oriental Aesthetics (新东方生活美学), the New Oriental Lifestyle (新东方生活方式), and the Healthy Building (健康建筑).

9 Key product lines

“雍”系列 “君”系列 “悦”系列 “华”系列综合体 Yong Jun Yue Hua Complex Series Series Series Series Series

Nanchang Spring Shenzhen Royal Nanchang Tianjin Jiyang Breeze International Bluelake County Sunshine Coast Redco Visionary (南昌·十里春风） (深圳·君御国际） (南昌·澜湖御景） (天津·力高阳光海岸） (济阳·未来城）

◼ Located in rare and ◼ Primely located in the ◼ Located in the suburbs ◼ Located in the outskirts ◼ An integrated city unique pieces of lands, city center or sub- of the city (or the newly of the city, rich in complex with star hotel, such as scarce land center (or urban developed parts of the greenery and natural shopping mall, office parcels in the city or planning center/sub- city), with convenient landscapes, large space building, and landscapes, suitable for center), with integrated public transportation for outdoor activities, residential apartments building luxury homes facilities, convenient around the area, easily and great potential for transportation, suitable accessible and well development in the ◼ Convenient access to ◼ Product form: villa, environment for living facilitated surrounding area city main avenues and bungalow or large unit critical facilities ◼ Product form: ◼ Product form: low-rise, ◼ Product form: large including schools, bungalow, low-rise, high-rise project, high-rise, villa, hospitals and central high-rise and other forms business districts

10 Transformation and development since IPO and first bond issuance

Contracted sales Total assets Total equity (RMB in billions) (RMB in billions, period ended) (RMB in billions, period ended) 10.3x 33.1 7.4x 71.0 5.4x 11.0 27.4 62.6 9.6

22.0

6.7

35.1 13.2 4.6 10.1 3.4 19.9 2.9 14.8 13.2 2.0 4.1 9.6

3.2

Sep

LTM

2020

FY2019 FY2014 FY2015 FY2016 FY2017 FY2018

FY2018 FY2014 FY2015 FY2016 FY2017 FY2019

FY2014 FY2015 FY2016 FY2017 FY2018 FY2019

Jun 2020 Jun Jun 2020 Jun Consistent growth and successful scale expansion through out historical years

11 Diversified financing channels

◼ 4 syndicated loans of USD602mn since 2015 Further diversified 1 funding channels ◼ HKD490mn bank loan, interest rate at HIBOR+2.75% Continuous strong support from ◼ USD50mn bilateral loan, interest rate at 10% Offshore loan 2 existing lending facilities banks Established new relationships with 3 offshore lending

(Hong Kong Branch) (Shen Zhen Branch) banks

◼ Number of issuance since 2014: 10 Established track ◼ Total amount of issuance: USD2,335mn record of issuing USD senior notes 4 and repaying ◼ Tenor: From 364-day to 5-year offshore debt

◼ Coupon: From 6.375% to 13.75%

◼ Included as a constituent of “Hang Seng Stock Connect Big (Greater) Bay Area Composite Index” since July 2018

Constituent of HSI ◼ Included as a constituent of the “MSCI China SmallCap Index” since December 2017 More potential for & MSCI China 5 equity financing SmallCap Index ◼ Included as a constituent in Shenzhen-Hong Kong Stock Connect

◼ Included as a constituent of the “Hang Seng Composite SmallCap Index of the Hang Seng Composite Index” since September 2017

Redco is well-supported by diversified funding channels

12 2. Business Review

13 Highlights of 1H2020 results

1 Total revenue Operating profit Net profit (RMBmn) (RMBmn) (RMBmn) ◼ Total revenue grew by 345.9% y-o-y to RMB6,703 million 737 Strong growth pace 6,703 1,095 ◼ Operating profit grew by 93.6% y-o-y to RMB1,095 million 376 with profitability 1,503 565 ◼ Net profit grew by 95.7% y-o-y to RMB736.7 million

1H2019 1H2020 1H2019 1H2020 1H2019 1H2020 2 Contracted sales Total assets ◼ Strong contracted sales y-o-y growth by 34.1% from (RMBbn) (RMBbn) Continued expansion RMB16.8 billion to RMB22.5billion 22.5 71.0 of scale 16.8 ◼ Total assets increased by 13.4% from December 2019, 62.6 from RMB62.6 billion to RMB71.0 billion

3Q2019 3Q2020 Dec 2019 Jun 2020 3 ◼ Strategically increased presence in the Greater Bay Area GFA under development (i.e. Huizhou and Jiangmen) as well as other new cities (mn sq.m.) such as Putian Replenishment of 17.9 14.6 quality land bank ◼ Successfully acquired 14 high quality parcels of land

◼ GFA under various stages of development increased to ~17.9mn sq.m. at the end of June 2020 Dec 2019 Jun 2020 4 ◼ Rating outlook revised to B/Positive by Fitch in Jul 2020 Cash to short-term Borrowing cost debt coverage ratio ◼ Successful issuance of senior notes in May 2020 with (%) concurrent tender offer of notes due in 2020

Successful financial ◼ Strong liquidity position with over 1.47x cash-to-short-term 1.47x 9.27 1.25x management debt coverage, further improved from 1.25x in Dec 2019 8.78 ◼ Net gearing ratio remains at a healthy level of 37.1%

◼ Average financing cost lowered from 9.27% for 1H2019 to 8.78% for 1H2020 Dec 2019 Jun 2020 1H2019 1H2020 Redco has successfully achieved business growth and scale expansion without sacrificing profitability and healthy credit profile 14 3Q2020 Contracted sales performance

Contracted sales Contracted GFA(1) and ASP(2) (RMB in millions) (GFA: ‘000 sq.m.; ASP: RMB/sq.m.)

22,514

16,787 ASP 10,248 10,706 7,967 7,409 7,977 11,758 9,018 5,327 2,826 1,568 719 880 1,474

3Q2016 3Q2017 3Q2018 3Q2019 3Q2020 3Q2016 3Q2017 3Q2018 3Q2019 3Q2020

Contracted sales historical growth (RMB in millions)

33,139 27,412 21,986

13,197 10,135 3,195 4,057

2014 2015 2016 2017 2018 2019 LTM Sep 2020

Notes: (1) GFA = Gross floor area (2) ASP = Average selling price 15 3Q2020 Contracted sales performance (cont’d)

Contracted sales breakdown by regions Contracted GFA(1) breakdown by regions

3.2% 1.2% 2.7% 1.2% 3.3% 4.0%

4.9% 6.3% 27.1% 29.1% 7.1% 6.2%

7.5% 3Q2020 6.8% 3Q2020 Contracted sales Contracted GFA RMB22.51bn 2,825,500 sq.m.

6.5% 9.2%

14.5% 14.8% 11.3% 9.7% 10.3% 13.2%

Nanchang Hefei Changsha Jinan Tianjin Zhejiang and Jiangsu Quanzhou Wuhan Guangdong Yantai Xi'an

Notes: (1) GFA = Gross floor area 16 Total land bank as of 30 June 2020

China Overseas Region # of # of Total GFA cities projects (‘000 sq.m.) GFA %

Nanchang 6 30 5,227 29.2% Future development in Hefei 1 13 2,114 11.8% Makati, Philippines(1)

Jinan 1 9 2,013 11.3%

Tianjin 2 5 1,826 10.2% Makati, Manila Bohai Rim Zhejiang Tianjin 2 5 1,386 7.8% and Jiangsu Shijiazhuang Yantai Jinan Yantai 1 8 1,265 7.1% Xianyang

Xi’an Wuhan 4 8 1,257 7.0% Other high-value and high-growth cities Hefei Shanghai Quanzhou 2 6 1,171 6.6% Macheng Enshi Wuhan Jiangsu Chongqing Huanggang Guangdong 7 11 1,102 6.2% Yangtze River Nanchang Delta Region Huaihua Changsha Fengcheng Xi’an 2 4 296 1.7% Ganzhou Putian Sydney, Australia Yongzhou 1 project Chongqing 1 1 202 1.1% Quanzhou 18,900 sq.m. Qingyuan Huizhou Foshan Sydney Overseas 1 1 19 0.1% Jiangmen Shenzhen Zhongshan Greater Bay Area Total 30 101 17,879 100% Zhanjiang

Notes: (1) For details please refer to the link: https://www1.hkexnews.hk/listedco/listconews/sehk/2020/0218/2020021800697.pdf 17 1H2020 Land bank overview

4.0mn sq.m. of land parcels acquired in 1H2020 (by GFA) Land metrics for historical years

(mn sq.m.) (No. of projects)

20.0 120

3.1% 18.0 8.0% 100 16.0

9.6% 14.0 37.4% 80 12.0

10.0 60 19.3% 8.0 40 6.0 22.6% 4.0 20 2.0 Nanchang Region Yantai Region - - Quanzhou Region Guangdong Region 2014 2015 2016 2017 2018 2019 Jun 2020

Jiangsu and Zhejiang Region Hefei Region Site area

GFA under various stages of development

No. of projects

18 1H2020 Land bank overview (cont’d.)

Saleable resources Relatively low cost of land acquisition

(RMB / sq.m.) 1.0%1.7% 0.9% 6.9%

6.7% 28.6%

7.1%

5.2% 2,849

2,543 8.2% 15.1%

9.6% 8.8%

Nanchang Region Jinan Region Zhejiang and Jiangsu Region Tianjin Region Hefei Region Wuhan Region Quanzhou Region Guangdong Region Yantai Region Chongqing Region Xi'an Region Oversea Region FY2019 average land 1H2020 average land acquisition cost per sq.m. acquisition cost per sq.m. Redco’s future saleable resources from its quality land bank exceeds RMB155.1bn as at June 2020

19 Total land bank as of 30 June 2020

Region City Current GFA (‘000 sq.m.) （%） No. of projects Fengcheng 1,149.6 6.4% 7 Ganzhou 668.0 3.7% 2 Nanchang 2,177.6 12.2% 18 Nanchang Region Huaihua 753.7 4.2% 1 Yongzhou 350.0 2.0% 1 Changsha 99.0 0.6% 1 Subtotal 5,227.1 29.2% 30 Hefei 2,114.2 11.8% 13 Hefei Region Subtotal 2,114.2 11.8% 13 Jinan 2,013.4 11.3% 9 Jinan Region Subtotal 2,013.4 11.3% 9 Shijiazhuang 311.0 1.7% 1 Tianjin Region Tianjin 1,515.0 8.5% 4 Subtotal 1,826.0 10.2% 5 Jiangsu 974.5 5.5% 4 Zhejiang and Jiangsu Region Shanghai 411.7 2.3% 1 Subtotal 1,386.3 7.8% 5 Yantai 1,264.6 7.1% 8 Yantai Region Subtotal 1,264.6 7.1% 8 Huanggang 189.9 1.1% 2 Macheng 305.2 1.7% 3 Wuhan Region Wuhan 206.2 1.2% 2 Enshi 556.1 3.1% 1 Subtotal 1,257.4 7.0% 8 Putian 450.1 2.5% 1 Quanzhou Region Quanzhou 721.3 4.0% 5 Subtotal 1,171.3 6.6% 6 Foshan 74.6 0.4% 1 Huizhou 406.9 2.3% 3 Qingyuan 77.7 0.4% 2 Guangdong Region Shenzhen 11.4 0.1% 1 Zhanjiang 262.5 1.5% 1 Jiangmen 231.4 1.3% 1 Zhongshan 37.6 0.2% 2 Subtotal 1,102.1 6.2% 11 Xi'an 208.1 1.2% 2 Xi'an Region Xianyang 88.1 0.5% 2 Subtotal 296.2 1.7% 4 Chongqing 201.5 1.1% 1 Chongqing Region Subtotal 201.5 1.1% 1 Sydney 18.9 0.1% 1 Oversea Region Subtotal 18.9 0.1% 1 Total 17,878.9 100.0% 101 Redco’s land bank increased 23% to ~17.9mn sq.m. with 14 newly acquired high quality parcels of land in 1H2020

20 Successful liability management

◼ In July 2020, Fitch adjusted the outlook from stable to positive, Improving credit rating mainly attributable to the following reasons: − Consistent growth in attributable contracted sales, helping Positive rating its sales scale expand to close to that of higher-rated peers action − Continued geographical diversification Lowered financing cost − Redco's leverage, measured by net debt/adjusted inventory, including adjustments to joint ventures and associates, is better than that of 'B' rated peers Extended maturity profile 2 ◼ Issuance of USD150 million 13.0% senior notes due 2023 in Successful USD May 2020 senior notes issuances of ◼ Issuance of USD220 million 11.0% senior notes due 2022 in Strengthened liquidity different July 2020 maturities at decreasing costs ◼ Issuance of USD300 million 8.5% senior notes due 2021 in August 2020 Successful liability management 3

◼ Purchased ~USD120mn of the 11.0% senior notes due 2020 Proactive liability in the tender offer exercise in May 2020 to actively manage management balance sheet liabilities and optimize its debt structure Enhanced investor base

21 3. 1H2020 Financial Overview

22 Summary of key 1H2020 financial results

(RMB in millions)

P&L key metrics 1H2020 1H2019 Change

Revenue 6,703 1,503 345.9%

Gross profit 1,401 628 123.0%

Gross profit margin 20.9% 41.8% -20.9 p.p.

Operating profit 1,095 565 93.6%

Operating profit margin 16.3% 37.6% -21.3 p.p.

Net profit 737 376 95.7%

Net profit margin 11.0% 25.0% -14.1 p.p.

B/S key metrics Jun 30, 2020 Dec 31, 2019 Change

Total assets 70,980 62,609 13.8%

Total equity(1) 11,009 9,635 14.3%

Total debt(2) 18,464 16,783 10.0%

Total cash(3) 14,381 15,060 -4.5%

Net gearing 37.1% 17.9% +19.2 p.p.

Cash(3) to short-term debt 1.5x 1.2x +0.3x

Notes: (1) Total equity includes both equity attributable to owners of the Company and non-controlling interests (2) Total debt includes both short-term and long-term borrowings (3) Total cash includes both restricted cash as well as cash and cash equivalents 23 Key income statement metrics Revenue Gross profit 1H2020 Gross Profit breakdown

(RMB in millions) (RMB in millions) (RMB/GFA delivered)

Gross profit 10,635

Capitalized interest 8,602.3 2,954 Construction 4,522 6,734.1 6,735.9 6,703.0 2,388 Land cost 1,676 1,401 3,245

1,503.4 628 21% 628 2,240

2017 2018 (1) 2019 1H2019 1H2020 2017 2018 2019 1H2019 1H2020 Gross profit ASP delivered

Operating profit Net profit (RMB in millions) (RMB in millions)

2,560 1,552 2,113 1,296 1,541 990 1,095 737 565 376

2017 2018 2019 1H2019 1H2020 2017 2018 2019 1H2019 1H2020

Note: (1) Excluding RMB 645mn of sales value from the disposal of the Shanghai building 24 Key balance sheet metrics Total assets Total equity(1)

(RMB in millions) 70,980 (RMB in millions) 11,009 62,609 9,635

6,665 35,146 4,609 19,872

2017 2018 2019 1H2020 2017 2018 2019 1H2020 Total debt Total cash(2) (RMB in millions) (RMB in millions) 18,464 15,060 14,381 16,783

11,060 7,865 7,243 4,906

2017 2018 2019 1H2020 2017 2018 2019 1H2020

Notes: (1) Total equity includes both equity attributable to owners of the Company and non-controlling interests (2) Total cash includes both restricted cash as well as cash and cash equivalents 25 Debt structure overview Debt composition as at 30 June 2020 Debt maturity profile

9.7% (RMB in millions) 14.8% 12,088 As at 31 Dec 2019 As at 30 Jun 2020 9,809 30 June 2020 Total Debt RMB18,464.4mn 29.3% 46.2% 4,889 3,550 2,559 2,136 Offshore Bank Borrowings Offshore Senior Notes - 217 Onshore Bank Loans Onshore Non-bank loans and other debts Within 1 year 1 to 2 years 2 to 5 years >5 years

Short-term debt Total cash(1) / short-term debt (RMB in millions) (x) 12,088 1.50x 1.47x 9,809 1.28x 1.25x

6,147

3,261

2017 2018 2019 1H2020 2017 2018 2019 1H2020

Notes: (1) Total cash includes both restricted cash as well as cash and cash equivalents 26 Key credit metrics Net debt / Total equity(1) Total debt / Total assets(2)

(%) (%) 50.7% 47.9%

37.1% 36.4% 31.5% 32.0% 26.0%

17.9%

2017 2018 2019 1H2020 2017 2018 2019 1H2020

Net debt(3) / EBITDA(4)

(x)

1.9 1.8 1.6

0.9

2017 2018 2019 LTM Jun 2020

Notes: (1) Total equity includes both equity attributable to owners of the Company and non-controlling interests (2) Total debt includes both short-term and long-term borrowings (3) Net debt = Total debt – total cash 27 (4) EBITDA = Gross profit – SG&A + D&A Prudent financial management while achieving solid growth

1H2020 vs 1H2019 YoY contracted sales growth (%)

19.3

Contracted sales growth rate 5.3 ahead of peers(1) 1H2020

Redco Average of peers

Net debt / total equity (%)

69.1 37.1

30 Jun 2020 (1) Credit metrics outperform peers Redco Average of peers from different dimensions Net debt / total assets Net debt / EBITDA(2) (%) (x) 4.0 12.8 1.6 5.8

30 Jun 2020 30 Jun 2020 Redco Average of peers Redco Average of peers

Redco has a consistent track record of prudent financial management and business expansion and will maintain its management philosophy

Notes: (1) Based on the latest available financials of 5 selected B and B+ rated companies： Ronshine, China SCE, CCRE, Zhenro, Powerlong (2) EBITDA = Gross profit – SG&A + D&A 28 4. Outlook and Strategies

29 New Oriental Aesthetics

◼ Redco is forward-looking in the industry and creates a New Oriental Healthy Building Product System with its three pillars based on the New Oriental Aesthetics, the New Oriental Lifestyle, and the Healthy Building. Organization Humanity ◼ Oriental architectural beauty is not only a symbol of beauty in architectural forms and materials, but also carries the life philosophy of the Chinese people. In the end, the Oriental Aesthetics is a kind of “beauty of life“. Relationship ◼ Redco's New Oriental Healthy Buildings are here for the Family current times. Regain the essence of oriental culture and aesthetics in modern living areas, and integrate it into modern Nature architectural techniques to meet the cultural admiration demands of people. Neighborhood ◼ Starting from the bottom of the oriental society’s logics, Redco constructs a five-tier healthy relationship network of family, neighborhood, humanity, organization, and nature, and convey the aesthetic through the practice of leading a healthy lifestyle.

30 New Oriental Lifestyle

A harmonious cohabitant relationship is the inner logic behind the functioning of the Chinese society. Redco tries to approach from the roots and fundamental logic of the Chinese people’s way of living, absorbing traditional Chinese culture and the inner health-consciousness within their lifestyles, generating a wellness-focused connectivity network from the basis of family, neighbors, organizations, humanity and nature, creating a healthy lifestyle adopted for Chinese people in its architectural products.

In accordance with the health-focused lifestyle community network in Chinese people’s living spaces, Redco attempts to convey such message through scenarios of nature, customs, traditions, atmospheres, wellness, harmony and legacy.

1. 2. 3. 4. 5. 6. 7. To be close to To revert to To abide with To engage in To care for To co-live and To persist nature customs traditions atmospheres wellness drive with legacy harmony

31 New Oriental Healthy Building

Healthy space

◼ The product system of Redco’s New Oriental Health Building has multiple meanings. It not only inherits the orientalist living spirit, but also focuses on improving the living quality, and fulfilling the real needs for healthy living.

◼ From the three dimensions of healthy Redco space, healthy facilities, and healthy Healthy community operation, Redco’s Health Building explores the value of healthy Building human residents, innovates and develops the characteristics of Redco’s Health Building, and applies it to daily life, creating a superior living environment.

Health Healthy community facilities operation

32 Creative Shared Lifestyle Diversified industry portfolio, producing a complete closed cycle

◼ Concurrently with property development, Redco has been generating a diversified industry portfolio based Travel on industry development trends, creating new growth Commercial points based on the corporate mission of being a Tourism ‘diversified community lifestyle operator’. From the perspective of a whole-life cycle, to construct community habitats, enhance diversified industries, recreate output structures for cities and to create desirable lifestyle for residents. A Group With ◼ In recent years, in accordance with Redco’s long term Technology Diversified Property development strategies, and to realize the dual- Investments development of the property development segment and diversified investment group, synergistically co- develop strategic targets, Redco Group has created and incubated diversified segments such as ‘Elderly Care, Commercial, Technology, Property, Travel and Tourism, Education’, allowing the Group to holistically Education Elderly develop.

33 Redco Elderly – Yearning Integrated community service platform for the elderly

Yearning is an innovative elderly brand with the community as its basis; it is a landmark project that forms part of Redco’s New Oriental health-related architectural product line

◼ To use the community as a point of entrance, the family as a unit, to provide to customers integrated elderly care services that span across the entire lifespan

◼ Covers multiple segments such as medical healthcare, elderly care, food and nutrition, smart sports, socialization etc.

To face all age groups To care for the whole family To wholly satisfy needs in life

Healthiness is irrelevant with age Adults, children and elderlies Health is more than treatments

Continuously providing health-related Personalized health plans, taking Diversified health infrastructure to services for all stages of growth good care of each member of the satisfy all health-related needs in life family

34 Redco’s Property Management – UG With you whenever your needs arise

◼ UG Property Management, Redco’s subsidiary property management company holds a national 1st-tier level qualification for property management, and is also a Top 100 Property Management Company in China; a member of the Chinese Property Management Association; the vice-chair of Jiangxi Province and Nanchang City Property Management Associations.

◼ With the service philosophy of “Delicate Services, Creative Shared Lifestyle” UG Property Management introduces the “Golden Key” service standards, providing “satisfying + surprising” personalized services; creates premium services of ‘full-heartedness, whole- heartedness, patience, skillfulness and warmth; through healthy living environments, healthy architectural facilities, healthy operations of society, to create three-dimensional healthy property service body for UG Property Management, establishing it as a national leading integrated service brand, and a pioneer in health and wellness-focused properties.

35 Growth strategy

1 Strategic geographical footprint 2 Diversified portfolio

◼ Build presence in cities with high population growth and conduct ◼ Work with local social, residential and commercial partners, build a acquisitions at competitive cost diversified portfolio driven by the “full lifecycle” concept, and grow − In 2016, acquired 10 plots of land for construction across key target core business through dynamic development markets in Nanchang, Jinan, Yantai, and Hefei ◼ Build presence in cities and areas with tourist attractions, medical In July 2016, made strategic entry into Sydney Australia to tap the − facilities and educational institutions, create synergies and reduce profitable overseas markets land acquisition costs through resource integration − In December 2016, entered Zhongshan to further build the Group’s presence in the Pearl River Delta city cluster − Jan-Aug 2017, acquired another 16 lots of construction land in Nanchang, Ganzhou, Hefei, Jinan, Yantai and Zhanjiang − During year 2018, successfully extended our operation into four developing cities, namely Wuhan, Hubei, Ningbo, Zhejiang, Suzhou, Jiangsu and Nantong, Jiangsu − During year 2019, successfully extended our operation into eight developing cities, namely Foshan, Huizhou, Qingyuan, Changsha, Huanggang, Macheng, Enshi, Chongqing − During 1H2020, successfully extended our operation into Zhanjiang, Jiangmen and Quanzhou. Will continue to expand in markets with strong growth potentials… ◼ Seek win-win cooperation with local government/professional organizations Property Culture & by combining strengths of different stakeholders Management Tourism

Real Estate Development

Health & Education Wellbeing

Source: the Company 36 Corporate strategies

Property development serving the full lifecycle of community

◼ Higher ASP and better profit margin

Redco Properties ◼ Enhanced competitiveness in land acquisitions ◼ One-stop education eco- system ◼ Further strengthening of “Redco” brand ◼ All-age education services from Kindergarten to ◼ Synergies across the University value chain Property ◼ Community- Development based healthcare management and healthcare centres

◼ Comprehensive ◼ Integration of tourist attraction and commercial property medical care services ◼ Multiple sources of revenue

37 Appendix

38 Key corporate awards

◼ Rated as a “real estate company worthy of the capital market’s attention in 2020”, a “leading company in product strength of China’s listed real 2020 estate companies in 2020-healthy housing”, an “outstanding enterprise in China’s real estate products in 2020”, and named “Annual Innovative Real Estate Enterprise” in the Boao 2020 China Real Estate Fashion Awards

◼ Awarded title of “2019 TOP10 Hong Kong-listed Mainland China Real Estate Company in terms of Wealth Creation Capability (2019中国大陆 2019 在港上市房地产公司财富创造能力TOP10)” and “2019 Real Estate Enterprises Worth Paying Attention to in the Capital Market (2019值得资本市场关注的地产企业)” jointly organized by the Enterprise Development Research Center of the State Council, Real Estate Research Institute of Tsinghua University and China Index Academy

◼ Recognised as “2018 PRC Investment Value Real Estate ◼ Awarded the “2019 Most Valuable Investment Award” by 2019 2018 Enterprise” (2018中國年度投資價值地產企業) by China Finance (中国融资) in Hong Kong Guandian.cn (觀點地產新媒體)

◼ Recognised as “Top 100 Comprehensive Strength Listed ◼ Recognised as “Listed Companies with the Most Growth Real Estate Enterprise of China for 2017” (2017年中国房 2017 2017 Potential” (最具潜力上市公司大奖) by China Financial 地产上市公司综合实力100強) by China Real Estate Market Association