2019年5月

Corporate Newsletter May 2019

Stock Contracted Sales – April 2019 Performance In April 2019, the Group realized contracted sales of approximately RMB 6.69 billion, up 56.3% year on year; contracted GFA aggregated Share Price: approximately 295,367 sq. m., up 10.7% year on year; contracted ASP (10 May 2019) was approximately RMB22,653 per sq. m., up 41.2% year on year. HK$3.12 For the first four months of 2019, the Contracted Sales by Region in First Group achieved accumulated 4M 2019 52 Week Range: contracted sales of approximately Western HK$1.79 – HK$4.36 RMB20.53 billion, up 68.9% year on 4% 35% year; contracted GFA aggregated Pan Bohai Rim approximately 1,062,539 sq. m., up Central 11% Market Cap: China 38.4% year on year; contracted ASP 12% HK$189.48 bn was approximately RMB19,324 per sq. m., up 22.1% year on year. Non-Shenzhen in GBA Issued Capital 30% Yangtze (Share): River Delta 8% 6,077,313,697 Monthly Contracted Sales Monthly Contracted Sales & ASP in 2018 and 2019 Contracted Sales Contracted ASP (RMB Mn) (RMB/ sq. m.)

14,000 25,000 22,653 23,419 22,312 21,779 12,000 18,898 18,691 19,938 10,570 10,397 20,000 17,001 10,000 14,300 15,729 16,040 9,367 16,019

16,683 15,000 8,000 16,653 7,804 6,691 14,775 Contact Us 14,011 6,519 6,000 5,512 5,731 10,000 Kaisa Group 4,419 4,280 3,910 3,767 3,719 Investor relations 4,000 2,966 3,057 5,000 [email protected] 1,854 2,000

PR Consultant — 0 0 iPR Ogilvy & Mather Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Callis Lau Monthly Contracted Sales in 2018 Monthly Contrtacted Sales in 2019 [email protected] 1 Monthly Contracted ASP in 2018 Monthly Contracted ASP in 2019 1 Company News

Kaisa Group to Acquire a Million sq. m. Project in Kaisa Group announced to acquire the entire interests in the Southern part of a property project in Qingyuan, from Sunshine 100 China Holdings Ltd (2608.HK). The project acquired is located in Longtang Town, Qingcheng , Qingyuan City, Guangdong Province, which is the core area of Guang-Qing New Town. The project occupies a site area of 343,749 sq. m. and a gross floor area of 1,183,327 sq. m. with a plot ratio of 3.44. It was planned for residential purpose. It is surrounded by comprehensive ancillary facilities and convenient transportation with only 5 km away from the Yinzhan exit of the Guang Qing Express Highway. The project will be developed in five phases with the first phase scheduled to be put up for sale in November this year. The considerable saleable resource of the project will provide the Group with stable cash flow.

Kaisa Group’s Management said, “Qingyuan is a core sub-Greater Bay Area city located in North Delta, and takes only 20 minutes to travel to by high-speed rail. With continuous growth in population and stable increase in urbanization rate, Qingyuan is of great development potential for the property market. The project is poised to realize speedy development and sales. The transaction consideration was at a reasonable level. It also meets the criteria for premium project acquisition amid the Group’s deleveraging drive currently. Looking ahead, Kaisa will continue to focus on the development in the Greater Bay Area as its core strategy, seize the opportunities brought about by the regional policies, and continue to strengthen its strategic positioning as an integrated urban service provider.” Kaisa Group Acquired a Land Parcel in Jiangsu, Nanjing On 30 April 2019, Kaisa Group successfully acquired a land parcel at Lishui District in Nanjing City, Jiangsu Province, through public auction. With Qinhuaiyuan Park, RT-Mart and Wanda Plaza nearby, the project is situated in a premium location. It occupies a site area of approximately 65,697 sq. m., with a gross floor area of approximately 144,533 sq. m.. The avareage land cost is RMB6,504 per sq. m. Following the Group’s launch of Nanjing Kaisa City Plaza and Nanjing Kaisa Sky Mansion, the project is of great significance to the Group’s further expansion in Yangtze River Delta Area and would strengthen its foothold in the Nanjing market.

Launch of Kaisa Shangpin Garden Achieved Strong Sales On 27 April 2019, Zhongshan Kaisa Shangpin Garden was launched. It offered 3-bedroom and 4- bedroom residences with area of approximately 89-125 sq. m.. The average selling price of the project was over RMB14,000 per sq. m. The project is located in Town, New District, which is the sub-CBD of Zhongshan City as well as focused planning area. The project is also next to the main road of Cuiheng Expressway as well as Nanlang and Cuiheng Light Rail stations that are under construction. Kaisa Yuefeng Gearing Up for Launch The sales centre and showrooms of Zhuhai Kaisa Yuefeng opened on 1 May. The project is located at Jinhai’an Avenue, Sanzao Town, , Zhuhai City. It is expected to launch 3-bedroom and 4- bedroom residences with area of approximately 89-125 sq. m.. At present, Kaisa’s major projects for sale in Zhuhai include Zhuhai Golden World and Zhuhai Kaisa Monarch Residence.

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Kaisa Group Issued its First ABS Backed by Mortgage Balloon Payments The Group successfully issued its first ABS backed by mortgage balloon payments, namely “The first tranche of Zhongshan-Kaisa Group ABS backed by mortgage balloon payments”. The issuance size of 2-year notes was RMB685 million. Among which, the class A notes of RMB470 million was granted AAA rating at a coupon rate of 7%; the class B notes of RMB180 million was granted AA+ rating at a coupon rate of 7.5%; the remaining was subordinated notes of RMB35 million. The successful offering diversifies the Group’s funding channels, further improves its overall debt structure, lowers its financing costs, and strengthens its cash flow management.

Previously, the Group’s first ABS backed by its shipping business income from Shenzhen Oceanus Group, a subsidiary of Kaisa Group, was successfully issued. The size of issuance was RMB475 million with coupon rates ranging from 5.4% - 5.6% and tenors from 1 to 4 years. Up to now, the Group has obtained the approvals from the Shenzhen Stock Exchange to issue four ABS with quota for more than RMB9 billion. Kaisa Group Entered into Strategic Partnership Agreement with COFCO Trust On 11 April, the signing ceremony of the strategic partnership between of Kaisa Group and COFCO Trust was held in Beijing. The two parties will establish a stable and long-term strategic partnership, engaging in a more extensive, in-depth and practical collaborations that complement strengths and achieve mutual benefits. Under the agreement, Kaisa Group and COFCO Trust will carry out multi- dimensional cooperation. Given its strong shareholder’s background, COFCO Trust will capitalize on its advantage in specialized operation of financial service and industry investment, effectively consolidate financial investment resources by making use of integrated investment tools, to support the high-speed and high-quality development of Kaisa Group and provide appropriate financial service solutions to meet the Group’s funding needs for development so as to achieve mutual benefits. Southwest Securities Initiated Coverage on Kaisa Group, with “Accumulate” Rating and Target Price of HK$4.2 Southwest Securities has initiated coverage on Kaisa Group with a rating of “accumulate” and a target price of HK$4.2. According to the research report, Kaisa achieved high growth in sales with abundant amount to be delivered and the company has also seen steady growth in revenue as well as improvement in funding costs. The report also pointed out that Kaisa is experienced in urban redevelopment, and has rich land bank resources and relatively stable profitability. Kaisa Group is poised to be major beneficiary of the development of Guangdong-- Greater Bay Area in the future and will continue to consolidate its leading industry position in the region. The report named Kaisa as an enterprise with long-term investment value.

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