Annual Results Presentation2019

1

（March 2020）

（Stock Code：00672.HK）

Financial Review2

Results Overview1

Business Review3

Future Prospects4

2

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Contracted Sales Revenue：RMB12,432 million，significantly increased by 113.5% as compared to year 2018.

Recognised Sales Revenue ：RMB6,205 million，increased by 20.0% as compared to year 2018.

Gross Profit & Gross Profit Margin ：RMB2,789 million and 44.9%，increased by 64.2% and 12.1 percentage points respectively.

Core Net Profit ：RMB994 million, significantly increased by 171.7% as compared to year 2018.

Cash balance at the end of the year: RMB4,059 million, increased by 89.6% as compared to year 2018.

Assets liability Ratio & Net Debt Equity Ratio ：65.1% and 30.1% respectively, both maintained good levels in the industry.

Final Dividend: HKD 2 cents， year 2018, none.

Land Bank： Acquired 5 new land parcels with total GFA of 657,322 sq.m., and the average floor price is about RMB6,097 per sq.m.

Awards: Awarded Star of 2019 Top 100 China Real Estate Developers and the Most Promising Companies of 2019.

Results Overview

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Results Highlights

4,395,117

5,169,369

6,204,683

0

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

7,000,000

2017 2018 2019

Sales Revenue（RMB ‘000）

1,009,927

1,698,095

2,788,817

23.0%

32.8%

44.9%

10%

15%

20%

25%

30%

35%

40%

45%

50%

-

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

2017 2018 2019

Gross Profit（RMB ‘000）and Gross Profit Margin

188,990

365,959

994,177

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

2017 2018 2019

Core Net Profit（RMB ‘000）

5

Land Bank

Total GFA of Land Bank：8,081,160 sq.m.

56.6%17.9%

18.4%7.1%

Greater Hangzhou

Zhejiang (except

Hangzhou)

Anhui

Others

(Xuzhou, Jiangsu, Qingdao,Shandong, Kunming,Yunnan）

As of December 31, 2019

Kunming·Yunnan

Ningbo·ZhejingHangzhou· Zhejiang

（Xiaoshan、Linping、YUhang、Qiandaohu）

Yiwu·ZhejiangLishui·Zhejiang

Wenzhou·Zhejing

Qingdao·Shandong

Hefei·Anhui

Xuzhou·JiangsuHuaibei·Anhui

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Recently Added Projects

No. AcquisitionTime

Location Acquisition Method

Project Type Site Area

(sq.m.）

Project GFA（sq.m.）

Land Cost

(RMB ,000）

Floor Price (RMB /sqm）

1 2019.04.19 Lin’an·Hangzhou

Public Auction

Residence 44,374 53,249 464,990 8,732

2 2019.05.27 Kunming·Yunnan

Public Auction

Residence 37,020 283,785 638,708 2,251

3 2019.06.04 Qingdao·Shandong

Public Auction

Residence/Commerce

51,736 111,483 334,449 3,000

4 2019.06.24 Xiaoshan∙Hangzhou

Public Auction

Residence 45,333 99,732 1,641,600 16,460

5 2019.11.21 Wenzhou∙Zhejiang

Public Auction

Residence/Commerce

43,630 109,074 928,200 8,510

Subtotal 2019

222,093 657,323 4,007,947 6,097

6 2020.01.19 Wenzhou·Zhejiang

Public Auction

Residence 30,236 84,963 1,123,000 13,218

7 2020.02.03 Fuyang·Hangzhou

Public Auction

Residence 54,493 130,783 997,500 7,627

Total 306,822 873,069 6,128,447 9,019

Financial Review2

Results Overview1

Business Review3

Future Prospects4

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Financial Review

Year 2019 Year 2018 Changes

（RMB ‘000） For the year ended 31 December

Revenue 6,204,683 5,169,369 +20.0%

Gross Profit 2,788,817 1,698,095 +64.2%

Gross Profit Margin 44.9% 32.8% +12.1pps

Earnings before Interest and Tax (EBIT)*

2,056,873 1,009,732 +103.7%

Profit for the Period 1,004,031 363,063 +176.5%

Core Net Profit ** 994,177 365,959 +171.7%

Profit Attributable to Owners of the Company

637,144 286,881 +122.1%

Basic Earnings per Share

(RMB cents)11 5 +120.0%

Final Dividend (HKD cents) 2 -

Note * EBIT = Gross Profit –Sales Expenses -Management Expenses ** Core Net profit = net profit -fair value (loss)/gain upon transfer to investment properties + tax impact

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Balance Sheet Highlights

2019/12/31 2018/12/31 Changes

Total Cash# 4,058,864 2,140,781 +89.6%

Total Interest-Bearing Debt

7,220,775 4,768,085 +51.4%

Total Assets 30,172,439 25,065,934 +20.4%

Total Liabilities 19,651,753 15,515,815 +26.6%

Total Equity（Net Assets） 10,520,686 9,550,119 +10.2%

Equity attributable toowners of the parent

8,436,293 7,755,210 +8.8%

(RMB ‘000)

Note (1): #Total cash = cash and cash equivalents + restricted cash

Note (2): As of 31 December 2019, the banking facilities was approximately RMB23.99 billion, with undrawn facilities of approx. RMB17.27 billion

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Key Financial Ratios

59.9%61.9%

65.1%

50.0%

60.0%

70.0%

2017 2018 2019

Asset liability Ratio

Asset Liability Ratio

438 1,010 2,057

10.0%

19.5%

33.2%

0%5%10%15%20%25%30%35%

-

500

1,000

1,500

2,000

2,500

2017 2018 2019

EBIT (RMB '000,000) EBIT Margin

EBIT & EBIT Margin

12.4%

27.5% 30.1%

0.0%

20.0%

40.0%

2017 2018 2019

Net Debt to Equity ratio

Net Debt to Equity ratio

2,879 5,175 4,932

1.30

1.52

1.36

1.151.201.251.301.351.401.451.501.55

-

1,000

2,000

3,000

4,000

5,000

6,000

2017 2018 2019

Net Current Assets (RMB '000,000) Current Ratio

Net Curent Assets & Curent Ratio

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Debt Structure

（于2018年12月31日）1,385

2,490 488

987 2,735

2,654 160

1,090

-

2,000

4,000

6,000

8,000

2018 2019

< 1 year > 1 year and < 2 years

> 2 years and < 5 years > 5 years

(RMB ,000,000)

Total Interest-bearing Debts：RMB7,220 million

Debt Maturity Debt Maturity

(As of 31 December 2019)

3.7%

35.7%

Over 1 year & within 2 years

Within 1 year

49.9%

10.7%

Over 2 years and within 5 years

Over 5 years

Total Interest-bearing Debts：RMB7,220 million

34.4%

15.1%36.8%

13.7%

（ As of 31 December 2019 ）

Financial Review2

Results Overview1

Business Review3

Future Prospects4

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Contracted and Recognised Sales

Contracted and Recognized GFA Sold

（sq.m.）

Contracted and Recognized Sales

*

（RMB ‘000,000)

Contracted and Recognized ASP

（RMB Yuan/sq.m.)）

384,763

773,394

341,756 397,627

0

200,000

400,000

600,000

800,000

1,000,000

2018 2019Contracted sales area

Recognized sales area

5,824

12,432

4,664 5,612

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

2018 2019

Contracted sales amount

Recognized sales amount

15,135

16,075

13,647

14,113

12,000

13,000

14,000

15,000

16,000

17,000

2018 2019

Contracted average sales price

Recognized average sales price

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Contracted Sales（by region）

Contracted GFA Sold：773,394 sq.m

Greater Hangzhou

39%Zhejing (except

Hangzhou)45%

Anhui15%

Others1%

Greater Hangzhou Zhejing (except Hangzhou) Anhui Others

（As of December 31, 2019）

合同销售金额：人民币 124 亿元

（于2019年12月31日）

Contracted Sales Amount：RMB1.24 million

Greater Hangzhou

47%

Zhejiang (except Hangzhou)

46%

Anhui6%

Others1%

Greater Hangzhou Zhejiang (except Hangzhou) Anhui Others

（As of December 31, 2019）

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Contracted Sales（by products)

Contracted GFA Sold ：773,394 sq.m

Shops, offices and Car parks

5%

Low-density residence

7%

Residential apartments

88%

Shops, offices and Car parks Low-density residence Residential apartments

（As of December 31, 2019）

合同销售金额：人民币 124 亿元

（于2019年12月31日）

Contracted Sales Amount：RMB12.4 billion

Car parks4%

Shops 4%

Low-density residence

9%

Residential apartment

83%

Car parks Shops Low-density residence Residential apartment

（As of December 31, 2019）

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Recognised Sales（by region）

Recognized GFA Sold397,627 sq.m.

Greater Hangzhou

42%

Zhejing (except

Hangzhou)

25%

Anhui33%

Greater Hangzhou Zhejing (except Hangzhou) Anhui

（As of December 31, 2019）

合同销售金额：人民币 124 亿元

（于2019年12月31日）

Recognized Sales AmountRMB 5.6 billion

Greater Hangzhou60%

Zhejiang (except Hangzhou)

27%

Anhui13%

Greater Hangzhou Zhejiang (except Hangzhou) Anhui

（ As of December 31, 2019 ）

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Recognised Sales (by product)

Recognized GFA Sold397,627 sq.m.

Residential apartments

81%

Shops7%

Low-density residence

12%

Residential apartments Shops Low-density residence

（As of December 31, 2019）

Recognized Sales AmountRMB 5.6 billion

Residential aparments

61%

Shops10%

Car parks7%

Low-density aparments

22%

Residential aparments Shops Car parks Low-density aparments

（As of December 31, 2019）

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Key Investment Properties

（sq.m.）

1 Guomao Building· Hangzhou Xiaoshan District 12,225 Operation 1999

2 Integrated Service Center · Hangzhou Xiaoshan District 5,913 Operation 2005

3 Zhong An Highlong Plaza · Hangzhou Xiaoshan District 64,626 Operation 2007

4 Landscape Garden · Hangzhou Xiaoshan District 8,781 Operation 2005

5Shopping Arcade, Hidden Dragon Land · Hangzhou

Huxin District 17,814 Operation 2013

6 Xixi New City, · Hangzhou Xihu District 599 Completion 2019

7 La Vie · Shanghai Xiaoshan District 341 Operation 2016

8 International Office Center · HangzhouXiaoshan QianjiangCentury City

84,848On

Construction2014

9 Zhong An Yin Tai Cheng · Ningbo Yuyao City 92,489 Operation 2017

10 Zhongan Times Square I · Ningbo Yuyao City 2,160 Completion 2018

11 Zhongan Times Square · Ningbo Yuyao City 7,274 Completion 2018

12 Huaibei Wengehua City· Anhui Huaibei City 836 Completion 2004

Total 297,907

No. Project Location Construction Area Progress Opening Time

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Shopping Mall Project

Highlong Plaza is located at core district of

Xiaoshan CBD new district, a major project of Xiaoshan

District in the 11th Five-Year Plan for the commercial

service sector of Hangzhou. The total GFA of the project is

up to 70,000 sq.m., which consists of four major

operations including Holiday Inn of InterContinental Hotels

Group, commercial office buildings, budget hotels and

leisure shopping plaza (shopping malls). Its operation

covers about one hundred merchants including shopping,

catering, leisure and entertainment with over one

thousand kinds of commodities.

Yintai City is located at the northern side of the old city zone of

Yuyao, the important part of Yuci centre, and the ten key investment and

capital promotion projects in Ningbo. The project faces Xinjian North Road,

the urban trunk road, on the east, Huanxi Road on the north, connects

Jinxing Road on the south, and west to Shenggui Mountain. The total GFA

of the project is 640,000 sq.m., adopts the international advanced real

estate model of “HOPSCA”, comprises various operation including 5-star

hotels, shopping centers, boutique commercial streets, SOHO

apartments/offices, business hotels, office buildings, cultural and leisure,

and entertainment, one-stop concept integrating residence, office,

business, traveling, shopping, cultural and leisure, social communication,

entertainment, ushers in a new era of modern business of Yuxi.

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Hotel Business

Qiandaohu●Bright Hotel

It is the first luxurious five-star child-

parentage resort hotel under the Group

and is located at Qiandao Lakeside with

fabulous scenic view. It has 225 luxury

guest rooms of various kinds, of which 31

of them are high-end villas adopting the

Chinese Sui and Tang dynasties decoration

style. The guest rooms facing the lake have

exceptionally big balcony with great view,

enable everyone to enjoy the beautiful

scenery of Qiandao Lake

Project GFA: 46,691 sq.m.

Opening date: First half of 2017

Huaibei●Bright Hotel

Located at the junction of Renmin Road and

Longshan Road of Huaibei, it is positioned

as a five-star hotel focusing on providing

business and leisure services, and offers

312 guest rooms of various types with

panoramic view. The main building consists

of three groups of architectural complex in

European palace style, and complemented

with Zhong An • Vancouver City that has a

site area of approximately 2 million sq.m.

Project GFA: 67,061 sq.m.

Opening date: Second half of 2017

Ningbo●Bright Hotel

With a GFA of approximately 70,000 sq.m.

and 26 floors high, it offers a total of 365

guest rooms/suites of various kinds and can

take up approximately 2,000 people for food

and beverages. It has over 30 luxurious

private dining rooms offering various

specialty restaurant cuisines, an over 1,300

sq.m. spacious multi-function hall, a 1,000

sq.m. banquet hall and various kinds of small

and medium-size conference rooms

Land Cost: RMB 1,154 per sq.m.

Opening date: 2018

Hangzhou●Holiday Inn

Holiday Inn Hangzhou Xiaoshan

Zhongan is the only international brand

business hotel in Xiaoshan，and is also

the largest business hotel in the region

to serve foreign guest. It is operated

and managed by Intercontinental Hotel,

the world's largest hotel management

group. The hotel has 394 rooms, 320

seats, meetign rooms and 6 ball

rooms。

Project GFA ：36000 sq.m

Opening date ：12/20016

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Other Business

Health Care- Specialty Hospital

- Rehabilitation

- Health Management

Culture- Cinema Operation

- Movie + Mall

- Production Investment

Management Services

- Platinum housekeeping scvs

- Comprehensive management

- Smart Life

Culture- Cinema Operation

- Movie + Mall

- Production Investment

Financial Review2

Results Overview1

Business Review3

Future Prospects4

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Projects Available for Sale in 2020

College SquareXiaoshan, Hangzhou

High-rise apartments

Chaoyang YinzuoXiaoshan, Hangzhou

Service apartments

Jiarun MansionXiaoshan, Hangzhou

High-rise apartments

Xixi New City Xihu, Hangzhou Service apartments

Xixi ManhattanYuhang,

HangzhouService apartments

Times Sauare Yuyao, NingboHigh-rise apartments,

SOHO, offices, shops

Jade Mansion Yuyao, NingboHigh-rise apartments,

low-density residence

Dragon Bay Yuyao, Ningbo Low-density residence

Landscape Garden

Cixi, NingboHigh-rise apartments,

Shops

Vancouver City Huaibei, Anhui Service apartments

White Horse Manor

Yuhang, Hangzhou

Residence

Comphor Tree Bay

Lishui, Zhejiang Residence

Xixi Future Square

Yuhang, Hangzhou

Residence

Typha LotusGarden

Yiwu, Zhejiang Residence

Nanhu MingyueYuhang,

HangzhouResidence

Total area completed and available for sale is about 1.927 million sq.m

Project Region Products Project Region Products

Yunxing Imperial Palace

Kunming, Yunnan

Residence/

Commerce

Qingdao New CityQingdao, Shandong

Residence/

Commerce

Zhongan PalaceXiaoshan, Hangzhou

Residence

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Future Prospects

The impact of the new coronavirus epidemic on the economy is short-term, and the long-term positive fundamentals of China’s economy remains unchanged. Keep real estate market stable is important to the future economy development.

Will continue to keep prudent and stable operation policies, further deepen the competitive Yantze River Delta region. Will continue to actively invest in land parcels through public auction to consolidate land banks, and gradually expand to key cities such as Kunming of Yunnan province, Qingdao of Shandong province and so on。

Other businesses are useful supplements to the Group’s main business, and will be in line with the core concept “ enjoy better life” and with the development plan of diversified business layout. The group will maintain a sound development trend and work out a way of sustainable business development.

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Disclaim

This presentation contains forward-looking statements that involve risks and uncertainties. All

statements other than statements of historical fact are forward-looking statements. These

statements involve known and unknown risks, uncertainties and other factors, some of which are

beyond the Company’s control, that may cause our actual results, performance or achievements to

be materially different from those expressed or implied by the forward-looking statements. No

representation or warranty, express or implied, is made and no reliance should be placed on the

accuracy, fairness or completeness of the information presented. The Company, its affiliates, or

any of their directors, officers, employees, advisers and representatives accept no liability

whatsoever for any losses arising from any information contained in this presentation or

otherwise arising in connection with this document.

By accepting this document, you agree to maintain absolute confidentiality regarding the

information contained herein. The information herein is given to you solely for your own use

and information, and no part of this document may be copied or reproduced, or redistributed or

passed on, directly or indirectly, to any other person in any manner or published, in whole or in

part, for any purpose.

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