Highlights: Yuexiu Property Monthly Update P.1 Operating Data P.2 Other News P.3 Project Introduction Issue 1 2015 P.3 Recent Research Reports P.4 Investor and Media Events I. Operating Data (Unaudited) Contracted Sales Value Grew 50% Year-on-Year to RMB22 billion in 2014 Aggregate Value of Contracted and Preliminary Sales Yuexiu Property Held a Reached RMB23.8 billion Successfully Accomplished the Sales Target of the Year Wedding Event in the Skies at the Helicopter Landing Pad of For the month of December 2014, Yuexiu Property Company Limited (“Yuexiu Guangzhou IFC Property” or the “Company”) (HKEx Stock Code: 00123) registered contracted sales (“contracted sales” include contracted sales by joint venture projects) value of approximately RMB1.795 billion with contracted sales gross floor area (“GFA”) amounted to approximately 129,600 sq.m., representing year-on-year increases of 222% and 105%, respectively. For January to December 2014, the aggregate contracted sales value amounted to approximately RMB22.014 billion, representing a year-on-year growth of 50%. The corresponding contracted sales GFA amounted to 1,886,100 sq.m., representing a year-on-year increase of 63%. The aggregate contracted sales value accounted for 100% of the 2014 sales target of RMB22 billion, successfully completing the full year target. From January to December 2014, the aggregate value of contracted sales and preliminary sales (formal sales contracts which are expected to be entered into soon) was approximately RMB23.821 billion and the GFA of contracted sales and preliminary sales totaled approximately 2,105,600 sq.m.. Contracted Sales in 2014 (RMB mn) RMB/sqm 4,000 15,700 20,000 12,900 13,900 12,700 13,900 3,000 11,700 12,200 11,200 15,000 10,600 10,900 10,000 9,800 2,000 10,000 3,133 2,614 2,471 2,407 1,000 541 1,958 2,042 1,795 5,000 1,205 1,179 1,309 1,362 0 0 Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec Value (RMB mn) ASP (RMB/sqm) Management of Yuexiu Property said, “Despite the complicated and volatile market conditions of the property market during 2014, the Company achieved satisfying sales performance through accurately capturing market trends, and flexibly adjusting its EMPLOYEE NEWSLETTER strategy with a host of diverse and innovative marketing campaigns. Both the Moody’s Latest Report on contracted sales and preliminary sales of the year once again hit a record high of the Yuexiu Property Company. Not only was the contracted sales target of the year accomplished, the contracted sales delivered 50% growth over that of 2013, which ranked amongst the top companies of the market in terms of target completion rate and year-on-year growth rate.” II. Other News Moody’s Affirms Yuexiu Property’s Investment Grade On 23 December, international rating agency Moody’s announced the results of its review of the ratings of Yuexiu Property for 2014. Moody’s affirmed Yuexiu Property’s Baa3 issuer and senior unsecured ratings. The ratings outlook remains stable. Foshan Chancheng Project Yuexiu Property Exercises Call Option on Foshan Chancheng Project Expected to be Launched in the On 29 December, Yuexiu Property acquired an 80% equity interest in a project First Half of 2015 company at a consideration of approximately RMB545 million from its joint venture partner (an investment fund). According to the valuation of the project by an independent valuer, the consideration of the call option represents a 1.5% discount to the net asset value of the investment fund’s holding in the project company. After the acquisition, the project company which holds the Foshan Chancheng land parcel would be wholly owned by Yuexiu Property’s subsidiary. The Foshan Chancheng Project is the first project on which the Company has exercised the call option. This project fully demonstrates the many advantages of cooperating with an investment fund. Firstly, through the cooperation with an investment fund, the Company has effectively accelerated the project’s asset turnover rate. Originally, the operating cycle of the Foshan Chancheng Project is approximately five years, but is now shortened to three and a half years through the call option. Secondly, exercising the call option allows the Company to quickly expand its scale and accelerate cash return, while maintaining a healthy financial position. The project is scheduled to be launched into the market soon, thus it will contribute to the Company’s contracted sales and cash flows in the short term. In addition, in the second half of 2014, the Foshan government has loosened restrictions on property purchase, and the People’s Bank of China has lowered interest rates. As a result, the demand for properties in Foshan is expected to continue to rise in the future, giving impetus to the project’s future sales. Two of Yuexiu Property’s Projects Received the Highest Honour in Civil Engineering in China Yuexiu Property ’s two property development projects, the Guangzhou International Finance Center and the Revamp Project of the Old Guangzhou Cement Industry District (Guangzhou Lingnan Riverside and Fortune World Plaza) have won the “2014 China Zhan Tianyou Civil Engineering Prize”, which is the highest honour in civil Yuexiu Property Received the engineering in China. The award is testimony to the highest standards achieved in Zhan Tianyou Prize construction, technological innovation, quality and safety in property development in the country . As one of the 28 projects that have won the award, Guangzhou International Finance Center showcases Yuexiu Property’s capabilities to solve various problems in the construction of high buildings by using many innovative technologies, and thus marks a milestone in the history of high building construction. Guangzhou Lingnan Riverside and Fortune World Plaza, which is the Revamp Project of the Old Guangzhou Cement Industry District, was one of the two residential property projects that have won the Zhan Tianyou Prize. III. Project Introduction Nansha Southern Le Sand PAGE 3 Establishment of Nansha Free-Trade Zone Benefits Southern Le Sand On 28 December, the Standing Committee of the Twelfth National People’s Congress decided at its twelfth session to designate the extension of four free trade zones in Guangdong, Tianjin, Fujian and Shanghai. In particular, the Nansha district of the Guangzhou Free-Trade Zone will cover a total area of 60 sq. km., which will greatly favour the development of Yuexiu Property’s project Southern Le Sand. Southern Le Sand has already matured into a large-scale property development project over the last decade. It is a new seaside zone that integrates waterfront living, leisure, resort, investment and business, and offers commercial facilities such as pedestrian shopping streets, office buildings, large-scale shopping malls, and five-star hotels. The project’s latest phase contains the first world-class five-star hotel in Nansha – Yuexiu Sheraton Hotel and a waterfront street for leisure and shopping . It is also situated close to the Jinzhou Station of the subway and Wanda Plaza, and enjoys a scenic view of the Jiaomen River and Jiaomen Park. An excellent track record for the last decade and the latest national policy of Research Report on designating Nansha as a free trade zone will reinforce the project’s market Yuexiu Property Issued by leadership in Nansha. BOCOM IV. Latest Research Reports on Yuexiu Property Date of Report Broker 2014 -12-17 BOCOM 2014 -11-26 Citi 2014 -11-25 Standard Chartered 2014 -11-25 Kim Eng 2014 -11-10 DBS Vickers 2014 -09-05 BOCOM 2014-09-04 Morgan Stanley 2014-09-04 Standard Chartered 2014-09-04 Citi 2014-08-28 BOCOM 2014-08-28 BOCI 2014 -08-28 Morgan Stanley 2014 -08-28 DBS Vickers 2014 -08-28 Mizuho 2014 -08-28 Kim Eng 2014 -08-27 Citi 2014 -07-23 Kim Eng 2014 -07-21 Citi 2014 -07-08 Morgan Stanley 2014 -07-08 DBS Vickers 2014 -06-26 Citi 2014 -05-20 Deutsche Bank 2014 -03-25 Daiwa V. Recent Investor and Media Events EMPLOYEE NEWSLETTER Event Date Location Barclays 2015 China Property Day 2015-01-07 Hong Kong The Asset Corporate Awards 2014 Awarding Ceremony 2014-12-11 Hong Kong Industrial Securities Annual Strategy Conference 2014-11-28 Shenzhen Goldman Sachs Greater China CEO Summit 2014-11-17 Hong Kong Morgan Stanley Annual Asia Pacific Summit 2014-11-12 Singapore Kim Eng InvestAsia Conference 2014-11-04 U.S. Citi Investor Conference 2014 2014-11-04 Macau Standard Chartered Bond Investor Roadshow 2014-09-18 Hong Kong Yuexiu Property Rights Issue Investor Conference Call 2014-09-04 Hong Kong Hong Kong, Yuexiu Property 2014 Interim Results Roadshow 2014-08~09 Singapore Yuexiu Property 2014 Interim Results Announcement 2014-08-27 Hong Kong Economic Digest - 2014 China’s Outstanding Property Developer 2014-08-22 Hong Kong Award Ceremony Credit Suisse China Property Corporate Day 2014-06-30 Singapore Citi Asia Pacific Property Conference 2014-06-26 Hong Kong JP Morgan Global China Summit 2014-06-10 Beijing DB Access Asia Conference 2014-05-19 Singapore Barclays Asia Financial and Property Conference 2014-05-16 Hong Kong Morgan Stanley Fifth Annual HK Summit 2014-05-15 Hong Kong DBSV Pulse of Asia Conference 2014-05-13 Hong Kong Macquarie Greater China Conference 2014-05-07 Hong Kong About Yuexiu Property For enquiries, please contact: Yuexiu Property Company Limited (HKEx Stock Code: 00123) was listed in Hong Kong in December 1992. The Company’s main Yuexiu Property Company Limited business is property development with its operations mainly Swan Wan concentrated in the Guangzhou area. Its business is gradually expanding to Pearl River Delta, and branching out to selective Tel: (852)2593 2326 locations in the Yangtze River Delta, Bohai Rim Economic Zone and Fax: (852)2511 0832 Central China.