Yuzhou Group.Pdf

2020 Corporate PPT

大禹治水，荒漠成洲

THE GROUP'S NAME ORIGINATES FROM A RULER IN ANCIENT CHINA CALLED YU THE GREAT

禹，源自「大禹治水」

大禹治水，千古名垂。這是自強不息、堅韌不拔的奮鬥精神，是革故鼎新、勇於挑戰的創 新

精神，是「三過家門而不入」的奉獻精神，是熟知人性、順勢而為的人文精神，融入炎黃子 孫的血

脈，成為中華民族精神的源頭。

禹洲始終秉承「大禹治水，荒漠成洲」的拓荒精神，始終以開拓者和建設者的姿態站在未 來

城市座標上，用誠心和誠信奉獻誠品，詮釋城市生活的理想和價值。

3 Results Highlights

Leading the industry，heading to RMB100 Bn Abundant land reserve with Tier 1&2 ＞90%

 1H2020 Contracted sales reached  2H2020 saleable resources amount to RMB42.85bn, +50.49% yoy, achieved 42.85% RMB115.8 bn, increase 45% yoy, 89% in of annual target tier 1&2 cities  Total revenue was RMB14.07 bn, +20.4% yoy  As of August 2020, landbank was 21.44  GPM=27%，keep steady mn sq.m., saleable resources was over RMB414.3bn, 90% in tier 1&2 cities, new  Core profit was RMB1.53 bn, +9.56% yoy landbank acquired amounts to RMB70bn Deep cultivation with diversified land bank Debt management actively

 Strictly comply with investment discipline,  1H2020 Total debt was RMB62.7 bn, grasping favorable market opportunities guarantee decreased to RMB7.9bn, lower  Diversified land acquisition with M&A、 36% than that in 2019 bidding and auction、and City-Industry  USD bonds weighted average maturity was cooperation near 3.3 years, longer than peers  Fruitful results for locality development  Consolidated cash collection rate was 90%， liquidity was abundant  Cash/short term debt 2.49x*，leading peers High dividend with ESG rating ranking No.1 Hang Seng Index recognized

 MSCI ESG rating was BBB, ranking No.1  Interim dividend HK12 cents among the industry.  Dividend payout ratio was 36.65%, with 11%  Successfully issued the first green bond, dividend yield* with over 9 times oversubscribed worldwide,  Selected as the Hang Seng Composite widely recognized by green investors LargeCap&MidCap Index Constituent Stocks 、  Green buildings coverage accounts for more Hang Seng Large-Mid Cap Value 50 Index and than 80% of land reserves, and win a high Hang Seng Large-Mid Cap Value Tilt Index ， reputation in the industry high quality object is obvious to all

*Onshore corporate bonds based on maturity dates *Calculated based on the closing price on June 30, 2020 4 Contents 1. Business and Financial Reviews 2. Business Operations 3. Future Outlook 4. Appendix

5 Business and Financial Reviews Leading the industry，heading to RMB100 Billion

 Contracted sales increased to RMB42.85 bn, strongly increased 50.49% yoy； GFA around 2.61 mn sq.m.，increased 40.83%；ASP ≈ RMB16,421/sq.m..  Accelerated sales and actively extended in the tier 1&2 cities and their satellite cities with convenient rail transportation.  In-demand quality residential products launched in 2H2020, targeting to RMB100 bn contracted sales.

Contracted sales Contracted GFA Contracted ASP

RMB mn 1,000 RMB/sq.m. sq.m.

80,000 6,000 18,000 75,115 15,125 15,110 16,421 4,971 16,000 70,000 5,000 14,000 60,000 56,003 4,000 12,000 46,641 3,703 50,000 3,118 10,000 40,000 3,000 34,509 2,125 8,000 30,000 2,000 6,000

20,000 42,851 2,609 4,000 28,474 1,000 1,853 21,494 1,578 10,000 2,000

0 0 0 FY2018 FY2019 1H2020 FY2018 FY2019 1H2020 FY2018 FY2019 1H2020

1H 2H 1H 2H 7 Diversified Contracted Sales in 1H2020

Contracted Contracted 1H2020 Contracted Sales by Region As of Total Region City Sales GFA

Central （RMB mn） （%） （sq.m.） China 4.0% GHM Bay West Strait 8,129 19.0% 579,963 14,017 Area 1.4% Yangtze River Delta 26,767 62.4% 1,484,573 18,030 Central China 1,702 4.0% 151,201 11,256 Bohai Rim 11.3% The Greater Yangtze 616 1.4% 51,486 11,955 River Delta Southwest Bay Area Region 62.4% 1.9% Southwest Region 800 1.9% 69,178 11,566

West Strait Bohai Rim 19.0% 4,837 11.3% 273,081 17,713 Total 42,851 100% 2,609,482 16,421

Monthly Contracted Sales & Contracted ASP Contracted Sales （2019.01-2020.06） Contracted ASP （RMB mn） (RMB/sq.m.) 12,110 10,751 20,000 10,000 9,627 16,836 17,193 9,201 9,156 18,000 16,242 15,455 16,003 16,974 14,993 14,887 8,220 16,000 14,482 16,611 7,890 8,000 14,694 15,952 14,000 15,553 7,184 14,493 14,696 14,450 14,091 14,483 5,717 6,062 6,112 12,000 6,000 5,118 5,137 5,151 10,000

8,000 3,443 4,000 3,080 2,804 6,000

4,000 2,000 1,202 2,000

0 0 1月 2月 3月 4月 5月 6月 7月 8月 9月 10月 11月 12月 Contracted Sales in 2019 Contracted Sales in 2020 ASP in 2019 ASP in 2020 8 Sales Performance as of September 2020

In the first nine months of 2020, Yuzhou Group’s contracted sales reached RMB77,060 million, up by 57.69% y-o-y; contracted sales in August 2020 was RMB11,654 million, up by 41.78% y- o-y.  Our contracted sales in September 2020 was RMB11,654 million. The contracted GFA was 725,760 sq.m. ASP for this month was RMB16,058/sq.m..  In the first nine months of 2020, Yuzhou Group achieved a total contracted sales of approximately RMB77,060 million; the attributable interest of Yuzhou is around 60%. Achieved contracted GFA was 4,711,825 sq.m.. ASP was RMB16,355/sq.m..

Contracted Contracted Contracted As of Total 2019-2020 Contracted Sales Sales GFA ASP # Region （By quarter） (RMB mn) (%) (sq.m.) (RMB/sq.m.) （RMB mn） West Strait 1 15,271 19.8% 1,079,581 14,147 40,000 Economic Zone 34,209 Yangtze River 35,000 2 47,857 62.1% 2,645,790 18,088 32,488 Delta 30,000 3 Central Region 2,641 3.4% 238,402 11,079 26,247 25,000 4 GHM Bay Area 1,314 1.7% 116,800 11,248 20,394 20,000 17,472 Southwest 5 1,535 2.0% 142,787 10,752 10,363 Region 15,000 11,002 Bohai Rim 10,000 6 8,442 11.0% 488,465 17,282 Region 5,000 Total 77,060 100% 4,711,825 16,355 0 Q1 Q2 Q3 Q4 2019 2020 9 In-Depth Cultivation with Sales Highlights

 By contracted sales in 1H2020, Yuzhou were Top ranked in many major cities.  Deeply cultivated in Hefei for many years, successfully deployed 18 projects. In 2020, Yuzhou Hefei ranked 1st in terms of sale amount, GFA, and units for 7 consecutive months, and is expected to become the second city with more than RMB10 billion in a single year.

Yuzhou Tangshan ranked Yuzhou Qingdao Langham Yuzhou Hefei ranked No.1 in No.2 in amount & GFA, No.3 Mansion ranked No.1 in amount, GFA & Units in Units Units, GFA and Amount

10 Win-Win of Scale & Profitability

1H2020 Recognized Property Sales Amount by Region 1H2020 Recognized Property Sales GFA by Region

Greater Bay Central Greater Bay Area China Area Central 0.2% China 0.2% 9.5% Southwest 7.5% Southwest 5.5% 4.7%

Bohai Rim Yangtze Bohai Rim 20.7% River Delta 21.8% 58.4% Yangtze River Delta 58.7% West Strait West Strait 6.5% 6.3%

Revenue, Gross profit & Gross profit margin* Core Profit

RMB mn RMB mn 30,000 80.00% 24,306 23,240 70.00% 5,000 4,409 50.00% 25,000 60.00% 4,000 3,640 40.00% 20,000 26.21% 50.00% 10.93% 14,007 3,000 30.00% 15,000 30.82% 11,637 40.00% 30.00% 10,000 27.00% 2,000 13.88% 14.68% 1,397 1,530 20.00% 7,467 27.00% 6,092 20.00% 5,000 3,140 3,276 1,000 10.00% 10.00% 12.00% - 0.00% - 0.00% FY2018 FY2019 1H2019 1H2020 FY2018 FY2019 1H2019 1H2020 Revenue Gross Profit GPM Core Profit Core Profit Margin 11 High Dividend, Continuous Return to Shareholders

 Interim dividend HK12 cents per share  Dividend payout ratio for 1H2020 was 36.65%  Accumulated dividend since listing was much higher than listing price  Be consecutively included in the Hang Seng High Dividend Yield Index Constituent Stocks, Hang Seng Large and Mid-Cap Value 50 Index, and Hang Seng Large-Mid Cap Value Tilt Index

2014-1H2020 2014-1H2020 Dividend Payout Dividend Payout Ratio （HK cents） 50% 45.67% 43.17% 40 40% 36.45% 36.65% 35.54% 36.24% 36.29% 30 25 30%

20 20.5 21.5 20%

10 22 18 16 15 10% 11 12 8.5 0 2014 2015 2016 2017 2018 2019 1H2020 0% 2014 2015 2016 2017 2018 2019 1H2020 Interim Dividend Final Dividend *Including special dividend in 2019 12 Diversified Financing Channels with Debt Maturity Longer than Peers

 Total borrowing* in 1H2020 was RMB62.7 bn.  The guarantee amount in 1H2020 was RMB7.9 bn, which decreased 36% from RMB12.4 bn in 2019.  Weighted average debt maturity of offshore USD bonds was near to 3.3 years, which was above the average peer level.

Debt Type Debt Structure Onshore Onshore/Offshore Corporate Bonds Bank Loan, HKD Syndicated Loans and 2% Due in 2020 : 3,000mm 9.500 bn Other Loans Due in 2021 : 3,000mm 15% Due in 2024 : 3,500mm 12.716 bn Due in 2021 : 8,833mm 20% Due in 2022 : 3,089mm Offshore RMB 5.130 bn Due in 2023 : 3,598mm Senior Notes 36% 8% Due in 2024 : 473mm USD 35.381 bn Due in 2021 : 5,417mm Due in 2025 : 241mm 62% 57% Due in 2022 : 4,154mm Beyond 5 years: 1,612mm Due in 2023 : 6,224mm Due in 2024 : 5,250mm Due in 2025 : 6,311mm Beyond 5 years: 8,025mm

Weighted Average Finance Cost Weighted Average Debt Maturity #

% Years 10.00 4.00 3.29 3.35 9.00 8.49 3.20 3.00 8.00 2.75 2.00 7.00 6.95 7.21 7.12 7.22

6.00 1.00 FY2014 FY2018 1H2019 FY2019 1H2020 2018.12.31 2019.12.31 2020.06.30 2020.08 13 * Excluding a portion of the debt with interest portion borne by cooperative partners # Offshore senior notes Strong Cash Collection, Strict Debt Control Liquidity is Abundant

Cash &Cash Collection Rate Cash to Short-term Debts X RMB mn Approx. 90% 4 50,000 42,968 Consolidated Cash Collection 3 2.85 40,000 38,926 2.67 2.49 35,511 Rate

2 1.78 30,000 29,279

20,000 1

10,000 0 FY2018 FY2019 1H2019 1H2020 FY2018 1H2019 FY2019 1H2020

Total Asset Net Debt / Total Equity# RMB mn 210,000 167,755 80% Strictly Debt 73% 160,000 146,435 143,207 Control. 115,063 70% 67% Net gearing 66% 110,000 64% always 60% 60,000 maintains a healthy level

10,000 50% FY2018 FY2019 1H2019 1H2020 FY2018 FY2019 1H2019 1H2020 * EBITDA = net income + capitalized borrowing cost under cost of sales + finance cost + income tax expense + depreciation + fair value loss on derivative financial instruments + realized loss on derivative financial instruments – interest income– unrealized fair value gain arising from re-measurement of equity interests of joint ventures 14 # Total debt amount in 2019 excluded a portion of the debt with interest portion borne by cooperative partners Financing Plans for Debts Due within 1 Year

Debt Type Debts Due by June 2021 Financing Plan

USD1.045 bn senior notes with maturities of 5 Approx. USD770 mn Senior Notes and 6 years issued in January and February of (Approx. RMB5.42 bn) 2020

Offshore Included in the refinance plan of USD1.045 bn Bank/Syndicated Approx. USD320 mn senior notes with maturities of 5 and 6 years (Approx. RMB2.27 bn) Loans issued in January and February of 2020

RMB5.19 bn corporate bond was approved by Corporate Bonds RMB3 bn, due in December 2020 Shanghai Stock Exchange, and RMB1.5 bn was issued successfully.

Can be rolled normally. Can be repaid Construction Approx. RMB4.765bn depending on sales process, and covered by Loans new projects Onshore Construction loan has been well arranged to Trust Loans Approx. RMB1.73bn roll over this part.

Property RMB68 mn, due in January 1 Repaid by cash Management ABS

Total Approx. RMB17.25 bn Financing plans shown above

15 Business Operations In-depth Cultivation with Sufficient Land Reserves

 As of 2020630，Total land bank ≈ 20.24 mn sq.m., total saleable resources ≈ RMB380.5 bn， 89% in Tier 1&2 cities  As of August 2020， Total land bank ≈ 21.44 mn sq.m., total saleable resources ≈ RMB414.3 bn, 90% in Tier 1&2 cities

Average GFA Average Land Bank GFA Land Bank Region Land Cost Region (million Land Cost Proportion (million sq.m.) Proportion (%) (RMB) sq.m.) (RMB) (%) Central Bohai 1.48 3,451 7.3% 4.35 4,044 21.5% China Rim Bohai Rim GFA Average Land Bank GFA Average Land Land Bank Region (million Land Cost Proportion Region (million Cost (RMB) Proportion (%) sq.m.) (RMB) (%) sq.m.)

South Yangtze Yangtze 0.67 5,106 3.3% Central 9.14 9,225 45.2% west China River River Delta

South west

West Average Land GFA Strait Reg Land Bank GFA Average (million Land Bank ion Cost Proportio Region (million Land Cost sq.m.) Proportion (%) (RMB) n (%) sq.m.) (RMB) Greater West Bay Bay 1.30 4,922 6.4% Area Strait 3.30 5,335 16.3%

* Tier-1/tier-2 &tier-2-to-be cities ：Beijing, Shanghai, Shenzhen, Hong Kong, Nanjing, Suzhou, Xiamen, Tianjin, Hangzhou, Chongqing, Qingdao, Fuzhou, Hefei, Wuhan, Shenyang, Zhengzhou, Foshan, Huizhou, Zhongshan, Yangzhou, Xuzhou, Wuxi, Ningbo, Jinhua, Shijiazhuang, Chengdu, Shaoxing, Changzhou. Tier-3 cities ：Quanzhou, Tangshan, Bengbu, Zhoushan, Longyan, Zhangzhou, Bozhou, Xinxiang, Kaifeng. 17 New Land Bank in 2020 Land acquisition strategy  Strategy: Regional in-depth cultivation，comprehensive layout of the six metropolitan areas of Yangtze River Delta Region, Greater Bay Area, Bohai Rim Region, Southwest Region, Central China Region and West Strait Economic Zone.

 Land Acquisition：Acquired high-quality land parcels through diversified ways such as bidding and auction, mergers and acquisitions, industry cooperation, and urban renewal.

Breakdown by Region Breakdown by City Proportion of M&A and bidding （by saleable resources） （by saleable resources） and auction （by saleable resources）

Tier-1 cities

Central China Region 3% 8%

Bidding Yangtze Mergers River and Total value Southwes Total value Total value and Delta auction RMB69.7 t Region RMB69.7 RMB69.7 acquisitions Region billion 38% billion billion 49% 51% 54%

Tier-2 cities 97%

18 Diversified Land Acquisition, Regional Deep Cultivation Case(1) Overview of Chengdu Le Parc

Chengdu Le Parc Transaction highlights

 The total cost is approximately RMB8.152 billion. Yuzhou Group only needs to invest approximately RMB1.5 billion to leverage the saleable resources of RMB22.9 billion

 There will be contracted sales in 2020 immediately, which can contribute to contracted sales in the current period of the year and increase the penetration and brand effect of Yuzhou Group in the southwest region. Project Overview

Hutchison Whampoa Limited（0013.HK) acquired the land parcel with RMB2.64 billion through the public auction in 2004

Located in the Centre of Chengdu High-tech Industry Development Zone, the affiliated equipment in the area is regarded as one of the best in Southwest China. There are the Chengdu First People’s Hospital, well- known Chengdu No.7 middle school and the convenient transportation system.

The remaining GFA of the project is 695,000 sq.m.(commercial and residential) with 15,275 carparks, which is the largest project in the main urban area of Chengdu.

19 Diversified Land Acquisition, Regional Deep Cultivation Case(1) Overview of Chengdu Le Parc

 Residential Phase 1-6 were sold out and delivered, including commercial streets, club house, schools, etc.  The subject of this acquisition included the Phase 7 and 8, and some remaining commercial residentials units and carparks in Phase 6, which all have reached the pre-sale conditions.  Yuzhou Group holds 40% attributable interest, and will have the right of financial consolidation

Proportion of Business Types * Profitability Expectations

Carpark Gross profit margin > 40% RMB3.05 bn 13% Commercial Net profit > 15% RMB2.63 bn High-rise 12% residential RMB17.19 Revenue in 2021: > RMB5 billion billion 75% Revenue in 2022: > RMB8 billion

*by saleable resources 20 Diversified Land Acquisition, Regional Deep Cultivation Case(2) First City-industry Integration in Heifei

 Concept: Incorporate Industry and City together.  The total site area is about 107,100 sq.m., the total GFA is 144,200 sq.m., and the land cost is RMB1,719/sq.m..

Yuzhou Group and Zhengyang Holdings Limited signed a comprehensive strategic cooperation Mar 2019 agreement: co-construction of the Aviation Town

Yuzhou Group successfully bid for the land parcel in Feixi, Hefei [2019]01/02, the first city- Oct 2019 industrial cooperation project officially settled in Hefei

Jul 2020 The Aviation theme demonstration Area officially opened

The phase 1 of Hefei Aviation Town will be settled in August 2020, and the residential buildings will Aug 2020 open to sell

Business Types Phase 1 of Aviation Town Project Area Distribution Site area 107,100 sq.m.

Land cost RMB1,719 per sq.m.

Villa Total GFA 144,200 sq.m. 5% Total saleable value RMB1.2 billion Gross profit margin ≈ 25% Bungalows 25% Net profit margin ≈ 10% High-rise 70% expected saleable value in 2020 > RMB300 million Expected record price-High-rise roughcast ≈RMB8,079 per sq.m. Expected record price-bungalows roughcast ≈RMB9,069 per sq.m. Expected record price-folded villa roughcast ≈RMB10,000 per sq.m. 21 High Quality & Abundant Saleable Resource

 In 2H2020，saleable resources amount to RMB115.8 bn，increase 45% yoy， 89% in Tier 1 & 2.

2020 Total Saleable Resource 2H2020 Saleable Resource Amounts to RMB180 billion Breakdown by Region

3.7% 5.1% 1H New 40% 10.6% 76% 6.4%

12.4%

61.8%

2H 60% West Strait Yangtze River Delta Bohai Rim Central China Old Southwest Greater Bay 24%

22 Multi-dimensional Parallel, Resistance to Industry Cycles

Revenue from U Life Service（RMB million）

404

299 Commercial 222 200 Operational 167 Service 24% 123 90 63 Property Management Service 76% FY2017 FY2018 FY2019 1H2020 Revenue from Property Management Service Revenue from Commercial Operational Service 2,206 2,045

1,737 In 2020, our M&A and third- 1,364 1,255 1,322 1,074 party expansion of Property 959 management section had achieved a lot, we wish to have 75 54 87 53 91 57 94 83 100 million sq.m. under property

FY2017 FY2018 FY2019 1H2020 management in the next three

GFA of Property Management Contract GFA under Property Management years. GFA of Commerial Management Contract GFA under Commerical Management

23 Green Standard Pioneer Successfully Issued the Yuzhou’s First Green Bond

 Actively implement the green building standards, ensure the quality of green residential projects.  As the first half of 2020, around 16,000,000 sq.m. in 110 projects achieved green building standard, 4,000,000 sq.m. achieved two stars or above in the Assessment Standard for Green Building.  The Group performed well in the 3 cores, 10 themes and 37 key indicators of ESG assessment, MSCI ESG rating was BBB, ranking in the top among the Chinese properties companies.  The Group has developed Green Bond Framework, engaged with 「SUSTAINALYTICS」 - the world’s leading ESG and corporate governance research rating experts, to review the Framework and provide an independent Second Party Opinion.  Successfully issued its first green senior notes in August 2020 to finance eligible green building projects that aim to improve energy and resource management and reduce the environmental impacts.

Second Opinion on Green Bond Framework Yuzhou’s MSCI ESG rating was BBB 24 Future Outlook

25 Prospects for 2H2020

With more upgrade demands, product development and upgrading become the norm.

The property management industry, which is in the stage of large-scale growth, will help company to traverse the economic cycle

Financing window period is approaching with lower financing cost

Urban differentiation has intensified, pushing the investment of companies to focus more on cities with long-term demand support

“Houses are for living instead of speculation” is the core, supply-side reform will be the key point for the industry, the demand for talents needs to be focused on in the pursuit of long-term reform

26 Corresponding Strategies

Diversified land Deepen the existing acquisition, increase regional layout and M&A, Industry-land further strengthen acquisition & urban precision management 1 renewal business 3 ability

Increase the Increasing the project construction of 1st attributable ratios and the consolidate time upgrade proportion to product, continue increase shareholder 2 to improve product 4 returns

Integrate and optimize the property and commercial management business, and proceed in an orderly manner with the spin-off plan

27 Appendix Focus on Product Strength

 In terms of product design, the Group follows the “Yuzhou Residential Product System”，puts forward the 「 Six Love Community 」 and 「 101 Intimate Details 」 , to fully meet each property owner's requirements.  Hefei Yuzhou Galaxy Park 、Qingdao Yuzhou Langham Mansion、Tianjin Yuzhou Poetic Dwelling and dozens of projects have won International Property Award, REARD global design award、Kinpan Award、 IDEA-King and other well-known awards in the industry.

 In the first half of 2020, with superb new Chinese design skills, Qingdao Yuzhou Langham Mansion won four international landmark awards: 「 OUTSTANDING PROPERTY AWARD LONDON 」 、 「A`DESIGN AWARD」、「PARIS DESIGN AWARDS2020」and「CONIC AWARDS 2020」.

29 Three Popular Product Lines with Craftsmanship

 3 Popular Product Lines with priority on safety and quality.  Elaborative management in 4 dimensions：schematic design, experience area design, construction drawing design and special design. Honor Langham Royale

First-time Buyer & Upgrader First-time Upgrader Upgrader

Yuzhou Yuzhou Yuzhou Yuzhou Yuzhou Yuzhou Honor Hill Honor Century Langham Mansion Langham Mansion Royale Aqua Mansion Royale The Bay

 Delineated the product 4 Dimensions lines from 4 dimensions based on 4 aspects and 4 Aspects developed standardized modules.

30 New Land bank in 2020

 As of August，acquired 15 new land parcels，saleable resources around RMB69.7 bn，all located in Tier 1&2 cities.

Avg. land Regional distribution* Total Att. land Saleable Project Att. GFA cost City Methodology % Site area (sq.m.) GFA (sq.m.) land cost cost Resources type (sq.m.) (RMB/ (RMB mn) (RMB mn) (RMB bn) sq.m.) 8% 38% Suzhou Resi Bidding 49% 76,552 99,518 48,764 1,380 676 13,867 2.9 54% Suzhou Resi Bidding 49% 64,416 65,060 31,879 960 471 14,763 2 Chengdu Resi/Com Bidding 100% 15,822 39,555 39,555 144 144 3,640 0.4

Wuxi Resi Bidding 100% 76,017 152,034 152,034 2,737 2,737 18,000 5.2

Yangzhou Resi/Com M&A 30% 179,920 300,466 90,140 2,692 807 8,958 5.7 Central China M&A Yangtze River Delta Wuxi Resi 50% 83,400 150,120 75,060 2,598 1,299 17,305 4.8 Southwest Suzhou Resi M&A 30% 40,173 80,346 24,104 1,140 342 14,186 2.1 Method of Acquisition* Changzhou Resi Bidding 49% 74,207 133,573 65,451 1,710 838 12,802 3.7 Hefei Resi Bidding 100% 73,848 147,696 147,696 731 731 4,950 1.8

Ningbo Resi Bidding 100% 36,435 72,870 72,870 1,003 1,003 13,770 2

Shaoxing Resi Bidding 100% 61,767 127,952 127,952 2,629 2,629 20,545 5.3 49% 782,557 1,369,190 875,505 17,724 11,677 12,945 35.9 51% Sub-total（1H2020） Wuhan Resi Bidding 100% 87,668 219,185 219,185 2,850 2,850 13,003 5.5

Chengdu Resi/Com M&A 40% 170,971 695,349 278,140 8,152 3,261 11,724 22.9

Shanghai Resi Bidding 100% 26,873 59,120 59,120 977 977 16,524 1.9

Chongqing Resi Bidding 100% 151,329 226,994 226,994 1,460 1,460 6,432 3.5 M&A Public Auction Sub-total(July to August) 436,841 1,200,648 783,439 13,439 8,548 11,193 33.8

Total（First 8 months） 1,219,398 2,569,838 1,658,944 31,163 20,225 12,126 69.7 *By saleable resources（as of August, 2020） 31 Key Projects in 2H2020

Shijiazhuang Yuzhou Honor Hill Yangzhou Yuzhou Kingdom Mansion (石家庄禹洲·嘉誉山) (扬州禹洲·江山赋)

• Located in Xinhua District, only • Located on Wenchang East about 800 meters away from Metro Road, in the core area of ​​the Line 3, there are 5 primary main axis. schools, 5 middle schools and 2 • GFA: 384,203.45 sq.m. universities within the surrounding • Unit size: 102-142 sq.m. area. The transportation is very convenient. • Land cost: RMB1,715 sq.m. • GFA: 41,572 sq.m. • ESP: about RMB13,500/sq.m. for high-rise buildings; • Unit size: 90-143 sq.m. RMB14,800/sq.m. for western- • Land cost: RMB6,566.91/㎡ style houses; RMB10,000/sqm • ESP: Undecided for talented rooms

Hefei Yuzhou Town of Sky Fuzhou Yuzhou Xiwan (合肥禹洲·林海天城) (福州禹洲.玺湾)

• Located on the east side of • Located in the Jiangnan CBD Guanting Government on 312 section of Cangshan District, National Highway in Hefei, it is Fuzhou, and is converged by on the transportation axis. two subways. The • The town uses 3000 acres of transportation is convenient; land for construction, with a the surrounding has supporting planned total investment of over resources such as waterfront RMB10 billion landscape, Park, High School and large-scale commerce. • Unit size：89-115 sq.m. or 140 sq.m. • GFA: 85,257 sq.m. • Land cost：RMB1,719/ sq.m. • Unit size: about 89-125 sq.m. Land cost: RMB14,497/ sq.m. • ESP：≈RMB10,000/ sq.m. • ESP : about RMB26,500/ sq.m. 32 Key Projects in 2H2020

Suzhou Yuzhou Genius Leading Nanjing Yuzhou Mountain Faiaryland （蘇州禹洲.山雲庭) （南京禹洲·樾山林語）

• Located in the west of High-tech Park, Jiangning District, • Near the core CBD of the Nanjing, and is connected to the High-tech Zone, the entrance of Nanjing Ring surrounding living facilities are Expressway, with convenient complete. transportation and strong • GFA: 164,578 sq.m. accessibility. • Unit size: 125-220 sq.m. • GFA: 81,254 sq.m. • Land cost: RMB13,867/ sq.m. • Unit size: 125-140 sq.m. / RMB14,763/ sq.m. • Land cost: RMB15,000 / sq.m • ESP: approximately RMB31,700/sq.m. for residential; approximately RMB35,946 / sq.m for commercial. Hangzhou Yuzhou Wanglin Mansion Shanghai Yuzhou Luxury Mansion (杭州禹洲·望林府） (上海禹洲·雍錦府)

• Located in the Xiangfu section • of Gongshu District, • 位於上海奉賢金匯版塊，奉賢區Located in the Jinhui section of 150 Hangzhou, at the intersection 大葉公路與金建路交匯處西Fengxian, Shanghai, 150 of Xingqiao Street and 米；享自貿新片區、前灘南、濱meters west of the intersection Xiangxing Road. 江南三重價值紅利，板塊熱度直of Daye Road and Jinjian 線上升 • It is only 600 meters away Road in Fengxian District; from Metro Line 10 and enjoys • 總建築面積：enjoying the triple123,306 value平方米 bonus the natural landscape • 戶型：of the 89Free-123 Trade平方米 Zone. • GFA: 187,670 sq.m. •• 土地成本：人民幣GFA: 123,306 sq.m15,003. 元/平方 • Unit size: 95-110 sq.m. for • 米Unit size: 89-123 sq.m. high-rise buildings, 128-180 •• 目前售價：Land cost: 均價約RMB15,003/31,000sq.m元/平方. sq.m. for houses • 米ESP: about RMB31,000/sq.m. • Land cost: RMB24,815/sq.m. • ESP: RMB40,000-43,000 /sq.m 33 Development Milestone

Cultivating in Regions Heading to 100 Leading the Market Billion Target 2015 2020 2013 2017 Yuzhou was selected as Ranked among the Hang Seng China High The national land Top 36 of real Based in West Yuzhou was introduced to Dividend Yield Index. The 2011 bank amounted to estate enterprises “Hang Seng SCHK High proportion of ingredients Strait Zone, over 9.2 million in China, Yuzhou Ranked among Dividend Low Volatility was ranked top among the sq.m., the first “Boutique Building expanding nationwide the Top 50 of Index”, acquired high- Chinese properties hotel, Xiamen 3.5” product Chinese real quality land in Huizhou, companies. Set up another 2008 Yuzhou Camelon concept first came estate officially entered Bay area, headquarter in Shenzhen; Broke through Hotel opened out enterprises launched the strategy of Issued the 1st Green Bond the impact of the Cultivating Xiamen, “Cultivating in Regions in Yuzhou history. 2006 financial crisis, Leading the Market”, famous in West sales rose Fully launched the targeting to 100 bn sharply, Strait Zone national expansion contracted sales in 3 years strengthened strategy, successfully 2003 the leading enter Hefei market, position in West 1998 Yuzhou and strengthened the 2019 Strait Zone 1994 Locked the Overseas City regional layout of the First entered into Zhengzhou, eastern led the high- Yangtze River Delta 2018 Kaifeng, Ningbo, Wuxi, Yuzhou was development zone end residential Yuzhou was Foshan and Beijing; our founded, of Xiamen 10 market in 2016 incorporated into the highest grade hotel, Xiamen pioneering in years ahead, Xiamen Wyndham Grand Plaza Ranked among the constituent stocks of West Strait Zone, Yuzhou Garden Royale Hotel opened; MSCI Top 500 Chinese the “Hang Seng built Yuzhou New became the ESG rating was upgraded to 2014 companies and was Composite LargeCap Manor benchmark for the BBB, ranking in the top among incorporated into and MidCap Index”, market Awarded the first- the Chinese properties “Shenzhen-Hong “Shanghai-Hong Kong class qualification companies. Kong Stock Stock Connect” and of the National real 2012 Connect”. Relocated “MSCI China Index”； estate its headquarters from introduced OCT Asia Awarded the “2012 development Xiamen to Shanghai. as the second largest China Mainland enterprise and the 2009 Adhering to overall shareholder. Ranked Listed Real Estate first-class strategy of “Based in 37th among the Top Successfully Company qualification of the Yangtze River 50 real estate 2007 listed on the Hong Investment Value National property Region, Lead West development Entered into Kong Stock TOP10” service enterprise, Strait and Expand companies in China in Five Cities, Yuzhou Commercial Exchange (stock and was elected as 2004 Nationwide 2018 was founded code: 01628.HK) the vice president Top MSCI Coverage” Developed unit of the National ESG Rating Yuzhou Real Estate 2002 Harbour City, Association The first urban built Xiamen's Layout Expansion, 1997 complex, first large-scale Yuzhou World garden health Newly entered in Yuzhou Property Trade Center community, Services Co., Ltd. Nine Cities opened successfully was founded entered in Fuzhou and Based in Yangtze River Region, Shanghai Lead West Strait Expand Nationwide Coverage 34 Highlights of 1H2020

Changes (RMB’000) 1H2020 1H2019

Contracted sales 42,851,152 28,473,760 +50.49%

Recognized revenue 14,006,915 11,637,425 +20.36%

Gross profit 3,276,277 3,140,422 4.33%

Profit for the year 1,550,662 1,907,126 -18.69%

Core profit 1,530,496 1,396,993 9.56%

Core earning per share 29 29 - RMB cent/share

Dividend Interim 12 12 - (HK Interim cents/ share) special - 3 -

35 1H2020 Core Profit

1H2020 1H2019 Changes (RMB’000)

Profit for the year 1,550,662 1,907,126 -18.69%

-：Investment property 7,061 436,642 -98.38% excluding deferred tax

+：Income from fair - (899) - value of derivatives +：Share purchase expenses settled by 8,687 6,298 37.93% shares +：Impairment of - 187,321 - goodwill +：Fair value gain on properties included in 509,502 - - cost of sales

Core profit 1,530,496 1,396,993 9.56%

36 1H2020 Key Financials

(RMB’000) As at 30 June 2020 As at 31 Dec 2019 Changes

Total assets 167,754,741 146,435,130 14.56%

Total liabilities 136,746,753 117,707,501 16.18%

Total equity 31,007,988 28,727,629 7.94%

Total cash 42,968,267 35,511,269 21.00%

Total debt 62,727,258 54,367,506 15.38%

Net debt 19,758,991 18,856,237 4.79%

Net gearing ratio (%) 63.72% 65.64% -1.92pp

37 1H2020 Cash Flow

（RMB bn） 1H2020 FY2020E

Cash inflow

Cash proceeds from contracted sales and other income +30.2 +54.9

Cash outflow

Land premium paid -16.6 -25

Construction cost capex -9 -19

Interest -2.2 -4.4

Tax -2.6 -4.9

Dividends - -0.5

Others -0.7 -2.0

(a)The figures are all attributable 38 DISCLAIMER

These materials have been prepared by Yuzhou Properties Company Limited (the “Company”) solely for informational use during its presentation to current and/or prospective investors to provide an update on the business performance and development of the Company.

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

These materials and subsequent discussions may contain certain statements which would constitute "forward‐looking statements”. Such forward‐looking statements involve risks, uncertainties, future events, our future financial, operational, business or other performance and are subject to a number of uncertainties and factors that may cause the actual results, performance or achievements of the Company to be materially different from those expressed by, or implied by the forward‐looking statements in these materials. There can be no assurance that the results and events contemplated by the forward‐looking statements contained in these materials will in fact occur. You should not place undue reliance on these forward‐looking statements, which reflect our belief only as of the date of this presentation. These forward‐looking statements are based on our own information and on information from other sources we believe to be reliable. Past performance cannot be relied on as a guide to future performance.

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

39 凡大成者，必取於勢，優於術，精於道。

禹洲集團順勢而為，洞悉時代發展脈搏，以新型城鎮發展

為契機，秉承「千億征程，全國深耕」的發展願景，聚焦六大

城市群，做大做強地產主業的同時，進行多元探索，力爭在

2020年完成千億目標。

禹洲集團，鵬程正舉。

官方微信公眾號 yuzhouproperties