2019 Interim Results Guorui Properties Limited (2329.HK) August 2019

CONTENTS

01 Performance Review Development Plan 02 03 Appendixes 01PART Performance Review 1H2019 Interim Results Highlights

Contracted Sales: +87% Achieved RMB12.8 bn, representing 87% growth YoY; target to accomplish 30% growth in 2019.

Real Estate Income+74% Achieved RMB3.41 bn, representing 74% growth YoY.

Rental Income: +38% Achieved RMB290 mn in rental income, representing 38% growth YoY.

Land Cost: RMB2,878sq.m As at 30 Jun 2019, land reserves reached a total GFA of 16,084,092 sq.m. and the average cost of land reserves was RMB2,878 per sq.m. for the Reporting Period. The corresponding value of the goods exceeded RMB 120 billion. In addition, the Group has been undertaking primary land development, redevelopment of shanty town and projects developed under the “Urban Redevelopment” policy in , Shenzhen and Shantou. During the Reporting Period, the development area reached 5.8 million sq.m., of which Shenzhen accounted for 51.6%.

Gross Profit: +41% Achieved RMB1.07 bn in gross profit, representing 41% growth YoY.

Leverage: Improvement As at 30 Jun 2019, net gearing ratio decreased 4 bps pts. As at 30 Jun, 2019, the balance of monetary funds was RMB3.7 billion, an increase of 89.6% from 31 Dec, 2018. The monetary funds/interest-bearing liabilities due within one year increased by 22% from 31 Dec, 2018. 4 1.1 Record High Contracted Sales

 Contracted sales: approx. RMB12.8 bn, up 87% YoY. Major contributors: 58% from the Beijing--Hebei Region and 33% from the Yangtze River Delta and the Guangdong-Macau-Hong Kong Region.

 GFA sold: approx. 0.60 mn sq.m, up 7.3% YoY;

 ASP: approx. RMB21,216 / sq.m, up 75% YoY;

 As at 30 Jun 2019, sales locked and booking in the future approx. RMB18.8 bn.

Contracted sales Contracted GFA Sold Average selling price (RMB mn) (k sq.m) (RMB/sqm)

25,000 1,400 1,322 21,216 25,000 21,913 1,200 1,064 20,000 16,580 20,000 +87% +7.3% 16,260 1,000 915 14,877 15,000 12,147 15,000 12,828 11,099 800 10,430 563 604 600 10,000 10,000 6,843 400 5,000 5,000 200 - - - FY16 FY17 FY18 1H18 1H19 FY16 FY17 FY18 1H18 1H19 FY16 FY17 FY18 1H18 1H19

5 1.2 Robust sales in T1 cities and its vicinity

 Over 30 projects in 17 cities contributed to the sales in 1H2019；

 Robust sales in T1 cities and vicinity in 1H2019.

1H19 1H18 Beijing-Tianjin-Hebei Region and 62% 34% (Beijing, Tianjin, Yongqing and Shenyang, etc.) Yangtze River Delta and OBOR Region 23% 25% (Chongming Island, Suzhou and Chongqing) Pearl River Delta 15% 41% (Shantou, Foshan and , etc.)

1H19 1H18 First-tier cities and its vicinity 60% 23% (Beijing, Yongqing, Chongming Island) Second-tier and popular cities 28% 25% (Tianjin, Shenyang, Suzhou, Chongqing, Haikou) T3 & T4 cities 12% 52%

6 1.3 -1Investment Properties – Promising prospects of quality properties

 As at 30 Jun, 2019, the Group held investment properties in 7 cities with total area of approx. 970k sq.m and total rentable GFA of approx. 490k sq.m.;

 As at 30 Jun 2019, the investment properties totaled approx. 20.3 bn;

 Beijing with totaled rental leasable GFA of approx. 270 thousand sq.m, representing 55% of the total leased GFA.

Beijing Glory City, Beijing Hademen, Beijing Fuguiyuan, Beijing Beiwu, Beijing Total

Use Multi Usage Office & Retail Retail and Commerce Office

Location City core area City core area City core area City core area

1H2019 Rental Income 127 100 21 12 260 (RMB mn) Leasable GFA (sq.m) 121,406 108,450 29,316 10,916 270,088

Leased GFA (sq.m) 101,959 69,599 23,402 10,916 205,876

Lease Term (Year) 1-6 1-8 1-5 7

Fair Value (RMB mn) 7,017 6,811 1,039 423 15,290

7 1.4 -2 Investment Properties - Continued growth in income

 In 1H2019, rental incomes achieved 290 mn, representing 38% growth YoY, mainly due to the increase of occupancy rate in Hademen；

 2H2019 will has more rental incomes comes as the increase of GFA. Glory City, Shengping Other regions Office S5, Haikou Glory City, Shantou Total Shenyang Shopping mall Use Office & Commerce Special Purpose & retail Special Purpose Retail (phase I)

City center in Location City center City center City center Chancheng

1H2019 Rental Income 7 14 4 - 25 (RMB mn)

Leasable GFA (sq.m) 17,320 62,398 109,813 34,989 224,520

Leased GFA (sq.m) 16,042 60,614 36,733 19,199 132,588

Lease Term (Year) 3-6 4-13 1-4 2-5

Fair Value (RMB mn) 388 589 889 1,847 3,713

8 1.4 – 3 Investment Properties – Building and planning of the projects

 Over 600 thousand sq.m properties are expected to be completed and delivered in the next 3-5 years.

Science & Technology Park, Ruicheng Commercial Shenzhen Building， Handan

Location: Near Tencent Building Location: Handan Use: Office Use: Commercial Building Building area: 270,000 sq.m Building area: 150,000 sq.m

Glory Shengping Shopping Center (phase II)

Location: Foshan Use: Versatility Building area: 220,000 sq.m

9 1.5 Optimized Business Layout to Ensure Future Growth

 As at 30 Jun 2019, the total planned GFA for land reserves of the Group was 16.08 million sq.m in 21 cities. The corresponding value of the goods exceeded RMB 120 billion. Beijing-Tianjin-Hebei  The average land cost is RMB2,878 per sq.m., diversifying to increase the quality of land bank in • Shenyang Greater Bay Area. • Beijing • Tianjin  In addition, the Group has been undertaking primary land development, redevelopment of shanty • Yongqing town and projects developed under the “Urban Redevelopment” policy in Beijing, Shenzhen and • Handan Shantou. During the Reporting Period, the development area reached 5.8 million sq.m., of which • Shijiazhuang Shenzhen accounted for 51.6%. Yangtze River Delta & OBOR Region • Chongming Island 45％ • Suzhou • Wuxi • Zhengzhou Major projects under PLD & renovation • Xi’an • Wuhan GFA Acc. cost • Chongqing (mn sqm) (RMB mn) 26％ • Tongren Beijing 0.5 1,137.3 Greater Bay Area and Shenzhen 3.0 468.1 • Shenzhen • Foshan 3.5 1,605.4 • Jiangmen • En’ping • Haikou • 29％ • • Shantou 10 1.6 Land Bank Analysis

 The development area for ancillary facilities such as residence and parking space accounts for 76% of the total GFA；

 Total completed yet unsold GFA was approx. 1.13 mn sq.m., with residential area accounting for 41%.

Completed yet Under Future As % of Use Total GFA unsold / unleased development development total reserves (sqm) (sqm) (sqm) (sqm) (%) Residential and ancillary 1 462,996 5,940,585 5,766,346 12,169,927 75.7 facilities such as parking space

2 Office/Commercial for sale 131,247 749,306 1,291,559 2,172,112 13.5

Commercial held or intended to 3 537,148 423,209 - 960,357 6.0 be held for investment

4 Hotel - 126,604 101.095 227,699 1.4

5 Hospital - 360,154 - 360,154 2.2

6 Special-purpose - - 150,000 150,000 0.9

7 Others - 43,843 - 43,843 0.3

Total 1,131,391 7,643,701 7,309,000 16,084,092 100 11 1.7 Summary of P&L (RMB mn) 1H2019 1H2018 Change

Revenue 3,775 2,238 69%

Property sales 3,412 1,956 74%

Primary land development 66 65 2%

Property leasing 285 207 38%

Property management and related services 12 11 10%

Gross profit 1,075 764 41%

Gains and losses from changes in fair values 532 540 -1%

Sales expenses -164 -87 89%

Administrative expenses -269 -207 30%

Financial charges -202 -109 86% Income tax expenses -427 -353 21% Profit for the period 570 558 2% Comprehensive income for the year 573 542 6% The owner of the Company’s comprehensive 431 396 9% income during the year 12 1.8 Summary of Cash flow Statement (RMB mn) Cash on hands as at 31 Dec 2018*: 1,972 Sales proceeds 6,558 Rental income and others 318 Land premium settled -117 Construction costs settled -2,533 SG&A expenses -410 Taxes -1,183 Subtotal: 2,632 Net borrowings added 1,597 Interest expenses -1,280 Dividends paid -501 Others -682 Subtotal: -865 Cash on hands as at 30 Jun 2019*: 3,739

*Including restricted cash deposit 13 1.9 Diversification of financing channels, Declining debt scale

 Total interest-bearing debts: RMB30.46 bn, up 6% from 31 Dec, 2018; the monetary funds / interest-bearing liabilities due within one year increased by 21% from 31 Dec, 2018.

 Total approved yet undrawn credit facilities at 30 Jun, 2019: RMB7.8 bn, The issuance of bonds has not been approved for use of RMB 3 billion and USD525 million (including the company received USD230 million bond issuance approval in July 2019);

 As at 1H2019, the Company has repaid USD520 mn due in 2019. By Channel By Maturity Offshore bonds As at 31 Dec, 15% 48% 19% 11% 22% 2018 Corporate bonds 4% As at 30 Jun, Domestic 35% 14% 25% 26% bank 2019 Trusts loans 27% 54% within 1 Yr 1-2 Yr 2-5 Yr Over 5 Yr

14 02PART Development Plan 2.1Strengthen cooperation and pursue steady development

 On the principle of light capital occupation, lock in high-quality land banking by means of cooperation or mergers and acquisitions.

 Enhance product strength, match profitable products with fast Strengthen cooperation turnover products.

 Improve the operational efficiency of investment properties and return on assets.

 Focus on key areas and consolidate resource reserves, such as: Greater Bay Area

 Explore new profit growth points, transform into better life service providers Pursue steady development  Accelerate sales, enhance proceeds collection and increase cash holdings

 Control overall debt level, reduce short-term debts level

 Broaden financing channels to avoid risks; on the other hand, reduce overall financing costs

16 2.2 Speed up turnover and expand market share

 In 2019, newly added saleable resources (excluding land value from merger) exceed RMB50 bn. As at 30 Jun 2019, the rest saleable land value reaches RMB41 bn, with Beijing taking up 50%.

 In 2019, the contracted sales is estimated to be RMB28 bn, with Beijing-Tianjin-Hebei Region accounting for 62%.

 As at 30 Jun 2019, the completion rate of contracted sales was46%.

Saleable Resources in 1H2019 Estimated Contracted Sales in 2019 (by region) (by region)

[CATEGOR Pearl Y River NAME],[V Delta 18% ALUE] YZ River [CATEGOR [CATEGOR Delta & Y BJ-TJ-HB Y OBOR 62% NAME],[V NAME],[V Region ALUE] ALUE] 20%

BJ-TJ-HB 京津冀

YZ River Delta & OBOR Region 长江及一带一路

Pearl River Delta 珠三角 17 2.3 Improve management and promote revenue growth

 2019年，The total size of the group's estimated resumption area reached 7.64 mn sq.m., representing 47.8% growth YoY. Focus on the regional layout of regional deep ploughing , adhere to the development principle of "product + service", and pay attention to quality growth.

 In 2019, there were 5 new plates projects, including Beijing Guofeng Chang'an、Shanyuhu、Shanxi Woodcutter 、Haikou Yunlong 、Xi'an office block ；Among them, the projects in Foshan and Xiqiao, the core cities of Greater Bay Area, will enter the market in August, with a total sales value of RMB2.86 bn.

 In 1H2019, 69,000 sq.m. of property in Hademen, Beijing was put into operation, contributing 100 mn rental income; in the next three years, with the operation of Glory Shopping Center and Nanshan in Shenzhen, rental income will increase substantially.

18 2.4 Strengthen execution and maintain market leadership

 Ranked 91th in the list of “Top 500 ’s Property Developers in 2019” compiled by the China Real Estate Association (“CREA”)  Ranked 69th in the list of “Top 100 China’s Property Developers in 2018” compiled by the CREA  Ranked 84th in CRIC’s list of Best Chinese Property Developers in terms of sales in the first half of 2019  Ranked 66th in CRIC’s list of Best Chinese Property Developers in terms of sales in the first 3 months of 2019  Awarded “Gold Wings 2018” by Secutiries Times in terms of best growth stock  Awarded “Top 100 Enterprises of Dongcheng District, Beijing” for 10 consecutive years 19 03PART Appendixes 3.1 Financial Reviews

(RMB mn) 1H19 1H18 2018 2017 2016

Total assets 80,166 70,703 75,680 58,544 44,718

Total liabilities 61,982 54,287 57,849 44,951 32,907 Cash and cash 3,739 2,225 1,972 2,318 1,521 equivalents Total debts 30,462 30,261 28,798 30,158 19,888

Net debts 26,723 28,036 26,826 27,840 18,367

Total equity 18,184 16,416 17,831 13,592 11,810

1H19 1H18 2018 2017 2016

Debt-to-assets ratio 77% 77% 76% 77% 74%

EBITDA(RMB mn) 680 507 1,959 2,646 2,561

EBITDA/interest 0.43 0.43 0.87 1.54 2.2

21 3 .2 Breakdown of Contracted Sales in 1H2019 ContractedSales Contracted Sales Area Contracted ASP As % of Cities Projects (RMB mn) (sq.m) (RMB/sq.m) total sales amount (%) Beijing Glory City 11 260 42,110 0.1% Beijing Glory Villa East 3 243 11,717 0.0% Beijing Glory Villa West 29 787 — 0.2% Beijing Yinghai, Daxing 7 1,067 6,056 0.1% Fengtai Xitieying 1,176 16,542 71,110 9.2% Haidian Jade Lake 1,906 35,882 53,107 14.9% Fengtai Xiaowayao 3,556 64,965 54,737 27.7% Shenyang Shenyang Glory City 423 59,403 7,118 3.3% Yongqing Glory City 341 36,774 9,269 2.7% Zhengzhou Zhengzhou Glory City 17 1,436 12,004 0.1% Suzhou Suzhou Glory Villa 1,413 46,950 30,100 11.0% New Capital 416 28,576 14,550 3.2% Foshan Glory Shengping Shopping Center 98 6,287 15,637 0.8% Foshan CangLong 194 15,351 12,633 1.5% Glory City 204 8,475 24,050 1.6% Glory‧Riverside Garden 30 1,134 26,008 0.2% Haikou Haidian Island Glory Garden 0 24 7,197 0.0% Hainan Yunlong 29 2,539 11,545 0.2% Wanning Wanning Glory City 1 105 11,545 0.0% Seaview 63 4,418 14,317 0.5% Siji Garden 126 14,046 8,977 1.0% Shantou Glory Garden (phase II) 4 274 12,803 0.0% Shantou Convention Center 22 1,687 13,062 0.2% Xi’an Xi'an Financial Center 143 7,523 18,967 1.1% Chongming Island Glory Yingtai 731 61,784 11,832 5.7% Guizhou Glory Smart Eco-City 238 42,287 5,635 1.9% Wuxi Glory Luoshe City 257 19,487 13,201 2.0% Tianjin Ruicheng Jiayuan 395 22,428 17,615 3.1% Chongqing Shuxiangxi Villa 354 43,390 8,165 2.8% Jiangmen Shanhuhai Manor 278 41,488 6,688 2.2% Sanya Hongtangwan 289 8,383 34,467 2.3% Shijiazhuang Fugui City 75 10,644 7,063 0.6% 22 Total 12,828 604,636 21,217 100% 3.3 Projects that contribute more to saleable value throughout the year

Estimated in 2019 Total saleable Estimated ASP Projects Location resources (RMB/sq.m.) (RMB mn) 79,000 (purchase Royal Palace South 4,500 restriction) 54,000 (purchase Beijing Jade Lake North 6,800 restriction) 59,000 (price Xiaowayao West 6,000 restriction)

Beijing Glory Villa South 6,500 48,000 - 50,000 Yinghai Town, Daxing Yinghai, Daxing 2,800 47,000 - 50,000 District Shenyang Glory Shenyang 2,500 8,000 City New Capital and Foshan 4,300 15,000 Xiqiao, Foshan Exit YQ, Beijing-Taipei Yongqing Glory City 4,900 10,000 Express Way

Suzhou Glory Villa WuzhongDistrict 3,600 30,000-45,000 41,900 23 3.4 Best sell projects

Beijing, Royal Palace(Xitieying)

 Location: South 2nd Ring Road

 Total GFA: 335k sq.m.

 Attributable interest: 20%

 Estimated Highest Selling Price: RMB 79,000 / sq.m.

Beijing, Xiaowayao

 Location: West 4th Ring Road

 Total GFA: 110k sq.m.

 Attributable interest: 51%

 Estimated Highest Selling Price: RMB 59,000 / sq.m.

24 3.4 Best sell projects

Beijing, Shanyuhu (Lake Jade)

 Location: Science Park in Lake Jade

 Total GFA: 335k sq.m.

 Attributable interest: 35%

 Estimated Highest Selling Price: RMB 54,000 / sq.m.

Suzhou, Glory Villa (Mudu)

 Location: Mudu, Wuzhong District

 Total GFA: 260k sq.m.

 Attributable interest: 100%

 Estimated ASP: RMB 33,000 / sq.m.

25 3.5 Major Projects in 2H2019

Beijing Daxing Yinghai

 Location: South 5th Ring Road  Total GFA: 206k sq.m.  Attributable interest: 100%  Estimated Highest Selling Price: RMB 23,000/sq.m.

Beijing Glory Villa (Beiqijia)

 Location: Changping Future high- tech City

 Total GFA: 550k sq.m.

 Attributable interest: 100%

 Estimated Highest Selling Price: RMB 55,000/sq.m.

26 3.5 Major Projects in 2H2019

Foshan New Capital

 Location:Foshan

 Total GFA: 512 sq.m.

 Attributable interest: 100%

 Estimated Highest Selling Price: RMB 14,000 sq.m.

Foshan Xiqiao

 Location: Foshan

 Total GFA: 270 sq.m.

 Attributable interest: 100%

 Estimated Highest Selling Price: RMB 17,000 sq.m.

27

3.5 Major Projects in 2H2019

Shenyang, Glory City

 Location: Shenyang

 Total GFA: 1.64 mn sq.m.

 Attributable interest: 100%

 Estimated Highest Selling Price: RMB 7,500 sq.m.

Yongqing Glory City  Location: Yongqing,Langfang

 Total GFA: 2,440k sq.m.

 Attributable interest: 100%

 Estimated Highest Selling Price: RMB 15,000 sq.m.

28 3.5 Major Projects in 2H2019

Glory Xi'an Financial Center

 Location: Xi'an High-tech Zone

 Total GFA: 290k sq.m.

 Attributable interest: 100%

 Estimated Highest Selling Price: RMB 20,000 / sq.m.

Glory Smart Eco-City

 Location: Tongren Core Area

 Total GFA: 1.67 mn sq.m.

 Attributable interest: 100%

 Estimated Highest Selling Price: RMB7,000 / sq.m.

29 3.6 Projects under PLD and Re-development

 Location: North Gate of Tiantan Park in Beijing

 Total planned GFA: 470k sq.m.

 Progress: Part of relocation work completed

 Location: Longgang District in Shenzhen

 Total planned GFA: approx. 3 mn sq.m.

 Progress: In the first special declaration, demolition conditions are expected to be met next year.

30 Disclaimer

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