Monthly Newsletter August 2019 (01628.HK) Stock Data I. Sales Performance as of August 2019 For the first eight months of 2019, Yuzhou Properties’ contracted Close Price HK$3.42 sales reached RMB40,648 million, increased by 48.85% y/y, (9/9/2019) contracted sales in August 2019 was RMB6,112 million, increased 52-week Range HK$2.56 – 4.84 by 118.44 % y/y. ◼ Our contacted sales in August 2019 was RMB6,112 million, increased by 17.21 Market Cap HK$ billion 118.44 % y/y. The contracted GFA was 410,533 sq.m., increased by No. of Issued 169.80 % y/y. ASP for this month was RMB14,887 /sq.m.. 5,032 million shares Shares ◼ For the first eight months of 2019, Yuzhou Properties achieved a total Listing Date 2 November 2009 contracted sales of approximately RMB40,648 million, increased by 48.85% y/y, the attributable interest of Yuzhou is around 60%. Achieved contracted GFA was 2,693,763 sq.m.. ASP for the first eight months was 2019IR Financial Highlights RMB15,090/sq.m.. In addition, approximately RMB125 million was subscribed but in the process of signing contracts. Revenue RMB11,637 million Contracted Contracted As of Total Contracted ASP Sales GFA Gross Profit RMB3,140 million # Region (RMB mn) (%) (sq.m.) (RMB/sq.m.) Profit West Strait Economic 1 5,258 12.9% 353,420 14,878 Attributable to RMB1,639 million Zone Shareholders 2 Yangtze River Delta 28,157 69.3% 1,679,882 16,762 Core Profit Attributable to RMB1,397 million 3 Central Region 3,753 9.2% 320,384 11,714 Shareholders 4 GHM Bay Area 198 0.5% 22,209 8,933 Basic Earnings per Share RMB33 cents 5 Southwest Region 841 2.1% 94,416 8,903 Core Earnings per Share RMB28 cents 6 Bohai Rim Region 2,441 6.0% 223,452 10,924 Contact Us Total 40,648 100% 2,693,763 15,090 Corporate Finance and Investor Relations Team II. Monthly Sales Chart (Jan 2018 – August 2019) Email: [email protected] Contracted Sales ASP Hong Kong Office (RMB’ mn） (RMB/sq.m.) 25,000 Tel: +852 2508 1718 10,301 Fax: +852 2510 0265 10,000 19,667 19,626 14,993 Shenzhen Office 15,952 18,390 20,000 14,694 7,184 8,000 15,553 16,611 15,857 14,832 15,566 14,091 14,887 14,020 Tel: +86 755 8321 7980 14,450 13,082 13,809 6,062 6,112 6,561 6,301 Fax: +86 755 8321 5470 13,314 15,000 6,000 5,532 5,118 5,137 5,151 Wechat ID: yuzhouproperties 12,859 11,716 4,543 4,111 4,012 10,000 4,000 3,080 2,804 3,018 2,758 3,053 3,016 2,798 2,000 5,000 0 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Contracted Sales in 2018 Contracted Sales in 2019 ASP in 2018 ASP in 2019 Monthly Newsletter August 2019 III. Monthly Press Room ◼ Yuzhou Cofco Metropolitan 09 as the most customer-favored project in Nanjing overachieved the 1H2019 sales target with a contracted sales completion rate of 109% (6 August 2019, Nanjing) Yuzhou Properties has broken through the slow property market under market control and expanded its business in Lishui, Nanjing. The “Metropolitan” series attracted a large number of clients and reached an impressive record with more than 100 units sold within 30 minutes and 4 buildings sold out within 28 days which has received an overwhelming market response. Yuzhou Metropolitan 09 overachieved the 1H2019 sales target with a contracted sales completion rate of 109%, resulting that the branch company in Nanjing won the “Battle Company” award in the second quarter. Leveraging on the strong client-oriented product competitiveness, as well as the can-do spirit of the team, the Group achieved an excellent results during the period. Furthermore, Yuzhou expanded its business in Nanjing to launch 14 projects within 5 years to demonstrate its determination and confidence in enhancing market penetration. Through regional penetration, the Company firmly believes that they will soon to achieve the sales target of a hundred billion RMB. ◼ Yuzhou Properties maintains to be ranked TOP 10 among TOP 100 companies in Xiamen (6 August 2019, Xiamen) “2019 Top 100 Xiamen Enterprises”, an awards platform jointly organized by Xiamen Enterprises and Entrepreneurs Association, Xiamen Daily and Xiamen Media Group, is the largest, most impartial and most authoritative enterprise evaluation in Xiamen. The evaluation has been successfully held for 14 consecutive years. On 6 August, the result of “2019 Top 100 Xiamen Enterprises” was officially announced, in which Yuzhou Properties maintains to be ranked in the Top 10, with an outstanding performance on operating revenue of RMB24,306 million. Leveraging on the outstanding performance of economic indicators, including operating revenue, profit and scale, Yuzhou achieved impressive result in the competition, proving that the Company’s development strategy is accurately pointed in the right direction and is recognized by the industry. On track to achieve a sales target of 100 billion dollars, the Group will continue to advocate the “Cultivating in Regions, Leading the Market” strategy in order to achieve the long-term growth of brand value and attain sustainable business development. ◼ Yuzhou Properties’ controlling shareholders continuously increase shareholding under the Scrip Dividend Scheme (7 August 2019, Hong Kong) Yuzhou Properties announced that Mr. Lam Lung On, J.P., the Founder and Chairman of the Board of Directors, and Ms. Kwok Ying Lan, the Vice Chairman of the Board of Directors, opted to receive their 2018 final dividend in the form of “scrip dividend”, the equivalent to increasing 148,755,853 shares of the Company, accounting for 3.09% of the issued shares. According to previous announcement, the Group declares a final dividend of HKD20.5 cents per share for the year ended December 31, 2018 to the qualified shareholders. In early July, Mr. Lam Lung On, J.P., and Ms. Kwok Ying Lan, increased the Company’s shares for the second consecutive time generating total shares of 1 million. This is the third time that shares have been increased by a “Scrip Dividend Scheme”, which demonstrates the confidence of the controlling shareholders in the long-term development of Yuzhou Properties. Monthly Newsletter August 2019 III. Monthly Press Room (Cont’d) ◼ Yuzhou Properties awarded “2019 China Top 30 Real Estate Enterprises in terms of Comprehensive Strength” (8 August 2019, Shanghai) Leveraging its excellent performance, Yuzhou Properties won various industury awards at the “2019 China Top 100 China Real Estate Enterprises Summit”, which was organzied by EH Consulting. Awards included “2019 China Top 30 Real Estate Enterprises in terms of Comprehensive Strength”, “2019 China Best 10 Real Estate Enterprises in terms of Operating Capabilities”, and “2019 China Best 25 Real Estate Enterprises in terms of Brand value”. The awards aimed to recognize excellent real estate enterprises and raise the bar in the industry. In addition, Yuzhou Properties won “2019 China TOP 30 China Real Estate Enterprises in terms of Annual Influential” in Boao Real Estate Forum 2019, reflecting the strong competitive edge of the Company. These acknowledgements demonstrated the excellent achievements of Yuzhou in the past year and also demonstrated Yuzhou is supported by its consumers and industry groups in its continuous efforts on business development. ◼ Hefei Galaxy Park wins the “Oscar” award of the real estate industry (15 August 2019, Hefei) Yuzhou firmly believes that excellent architecture comes from the integration of art and history. Originating from this concept, Hefei Galaxy Park was built with the combination of modern architecture style and the idea of environmental protection. With this new approach , Hefei Galaxy Park won International Property Awards – Best Commercial Architecture in Asia – Pacific region. This award is often referred as the “Oscar” of the real estate industry. Since its establishment in 2008, the award has been highly recognized in the industry due to its rigorous judging criteria and professional judging panel that consists of 80 renowed professionals, making it becoming the largest, most prestigious and most widely recognized award in the Asia-Pacific region. The Award encourages Yuzhou to take the mission of inheriting history and traditional culture conscientiously, create more properties in a Chinese style, and express more characteristics of traditional Chinese culture. Yuzhou continuously seeks to break through design limitations create a brand new Chinese style of construction so as to satisfy the basic needs of its customers and and also create a new milestone in the world of culture and commerce. ◼ Yuzhou Group maintains to be named one of “China Top 500 Private Enterprises” (22 August 2019, Qinghai) On 22 August, the “China Top 500 Private Enterprises Summit 2019” held in Xining, Qinghai, organized by China Federation of Industry and Commerce and The People’s Government of Qinghai Province. Yuzhou Properties ranked 349th among the “China Top 500 Private Enterprises” for the fourth consecutive year with a revenue of RMB24,300 million. It reflected the 100 billion deployment strategy of “Cultivating in Regions, Leading the Market” has being successfully impletemened. The judging panel of “China Top 500 Private Enterprises” consists of authoritative experts to assess each business in an objective, fair and scientific way. The ranking is one of the important brand projects of China Federation of Industry and Commerce and the result will be listed in descending order regarding the total operating revenue. Therefore, the recognition proved that Yuzhou’s business opration status, business characteristics as well as business manamgenet are in the forefront position in the industry.