#1奥园2 25 中国奥园 25周年 CHINA AOYUAN 1996-2021 中国奥园集团股份有限公司 China Aoyuan Group Limited 香港联交所上市编号:3883 2021 Interim Results Presentation October 2021#2Contents 1 Aoyuan: 25th Anniversary with Steady & Quality Growth 3 2 3 Results & Financial Overview Business Operations 10 18 4 A Top-notch Player of GBA Urban Redevelopment 33 5 Appendix 40 CO 6 Investor Relations 44 DA 调 2#31. Aoyuan: 25th Anniversary with Steady & Quality Growth YY.COM Guangzhou Aoyuan International Centre Aoyuan Tower (actual image)#4Aoyuan celebrates 25th anniversary with steady & quality growth DA 调 Founded in 1996, Aoyuan first introduced the "Sports + Property" development concept partnering with China Sports under General Administration of Sport of China and successfully developed the first sports-themed community in China, namely Guangzhou Olympic Garden, inheriting the Olympic spirit of "Higher, Faster, Stronger Together" Pioneer of PRC Composite Real Estate Benefiting from its nationwide layout, Aoyuan has captured shifting growth opportunities in the industry and achieved a breakthrough. Aoyuan has grown from a regional developer to a national developer, entering the hundred-billion-yuan contracted sales circle and ranking among Top 30 PRC Developers Entered RMB100 billion contracted sales circle Top-notch Player of GBA Urban Redevelopment Through a prospective layout approach, Aoyuan has achieved full coverage of "Three Olds" urban redevelopment, namely old towns, old villages and old factories, establishing the "Aoyuan Urban Redevelopment Model" with composite industry development. Aoyuan is ranked among Top 10 PRC developers in urban redevelopment and is known as a top-notch player of urban redevelopment in GBA On the back of deepening its strategy of "one core business with vertical development", Aoyuan continues to extend the application of its brand concept of "building a healthy lifestyle" through promoting two-way empowerment and synergy between Quality Living segment (core property business) and Joyful & Healthy Lifestyle segment (non- property business), giving full play to the Company's comprehensive competitiveness From Quality Living to Joyful & Healthy Lifestyle Aoyuan has been included as a constituent stock in MSCI China Index, Hang Seng Composite LargeCap & MidCap (Investable) Index, Hang Seng Stock Connect, Hang Seng Stock Connect Greater Bay Area Composite Index, Hang Seng High Dividend Yield Index and Hang Seng China High Dividend Yield Index. It ranks among "Fortune China 500" for five consecutive years (170th in 2021), "Forbes Asia's Fab 50" and "Forbes Global 2000" (849th in 2021). Aoyuan is committed to achieving sustainable and high-quality development Sustainable and high-quality development 4#5Aoyuan celebrates 25th anniversary with unwavering aspirations 中国奥园2 • Aoyuan is to satisfy customer needs beyond their self- awareness and deliver service with a strong focus on craftsmanship and fine products Aoyuan is to become a respectable enterprise that attracts capable talents with entrepreneurial spirits Aoyuan is to continue to breathe new life into the concept of "building a healthy lifestyle" and become the leader of healthy life • Aoyuan is to uphold social responsibility as well as to become one of the most civilized and sophisticated Chinese enterprises • Aoyuan is to pursue steady and sustainable development to lay a solid foundation for becoming a lasting, century-old enterprise • Aoyuan is committed to becoming one of the rising Chinese brands#6From building a house to a way of life with "dual engines" From Quality Living to Joyful & Healthy Lifestyle, Aoyuan has continuously deepened its strategy of "one core business with vertical development" and has been extending the application of its brand concept of "building a healthy lifestyle" Through synergistical development of the two segments, Aoyuan will leverage its comprehensive competitiveness to achieve high-quality development Residential Property International Presence Quality Living (幸福人居) Commercial Property Urban Redevelopment General Health & Wellness Synergy Property Management Medical Beauty Joyful & Healthy Lifestyle (悦康生活) Efficiency Commercial Operation Technology Empowerment == Aggregation Cultural Tourism Core property business has attained organizational optimization and advantages integration through resources consolidation, which strengthened the headquarters' direct control of regional subsidiaries, reinforcing high-quality development Yuekang Holdings has been established to comprehensively coordinate the non-property business segment entailing property management, commercial operation, cultural tourism, beauty & health, etc., empowering the core property business From building a house to a way of life: Aoyuan builds a coherent, full-fledged ecosystem which connects consumer groups of different product types and businesses, and provides a full range of services through a single platform#7(All are actual images) • • Cultural tourism empowers core property business Yingde Aoyuan Xinhua Town - Leveraging its composite real estate model, Aoyuan creates a comprehensive model of "cultural tourism+industry+residence" to diversify sources of revenue With total site area of 700,000 sqm, Yingde Aoyuan Xinhua Town integrates theme park, science education, vacation resort, and ecological residence Aoyuan Yingde Chocolate Kingdom, the largest exhibition on chocolate culture in Asia, is set to become a new benchmark of cultural tourism in GBA • Yingde is well recognized as "Little Guilin in Guangdong" and "Hometown of Black Tea in China", with outstanding karst geomorphology and a long history of tea culture Aoyuan Yingde Chocolate Kingdom opened at end-Dec 2020, and is a vacation resort with comprehensive business model integrating chocolate IP, Yingde black tea culture, and branded hotels Yingde Aoyuan Xinhua Town Sales Centre Directed by Mr. Mei Shuaiyuan, pioneer of open-air theatre with natural backdrop in China, "The Queen's Party" is the first on-site panoramic immersive musical in China. Premiered in Feb 2021, it is set against the entire Tea and Chocolate Town of the Kingdom, taking audience on a journey of discovery of Chinese Yingde black tea culture and Western chocolate culture while actors and audience can interact directly Yingde Aoyuan Xinhua Town Chocolate Kingdom 亲子奇幻剧 梅帅元导演团队作品 Total GFA (residential): approx. 900,000 sqm Total land cost: approx. RMB340mn Avg. land cost: approx. RMB370 per sqm Total saleable resources: approx. RMB7.2bn Cumulative sales: approx. RMB2.7bn Cumulative ASP: approx. RMB11,000 per sqm Yingde Aoyuan DoubleTree by Hilton Hotel Tea and Chocolate Town SHUAIYUAN MEI TEAM'S PRODUCTION PARENT-CHILD MAGIC SHOW “父王的盛宴! THE QUEENA 女王的是 CYLL QUEEN'S HARD Yingde Impression Shopping Street 首次成功 ร 英糯印象商业街开业仪式0 暨首届国潮文化节· Chocolate Factory Yingde Quanlin Water World 7#8Cross-industry collaboration empowers core property business - "Aoyuan Beauty Valley" & "Aoyuan Smart Valley" Amid industrial transformation and new urbanization, Aoyuan leverages cross-industry consolidation capabilities to develop industrial space and auxiliary facilities meeting urban development needs and build a quality business partners network. Aoyuan has formed the industry models of Shanghai Aoyuan Beauty Valley and Aoyuan GBA Smart Valley, expanding urban redevelopment and coverage in key tier 1&2 cities, thereby empowering its core property business Shanghai Aoyuan Beauty Valley is located in Fengxian Park of Shanghai Lingang Free Trade Zone With a total GFA of about 200,000 sqm, it features a mixed-use development model featuring R&D office, light production, commercial supporting facilities, apartments for talents, etc. Introduces international medical beauty brands to create a platform for transformation and exchange of international medical beauty scientific achievements; awarded "Chinese Cosmetics Brand Innovation Lab" • Aoyuan GBA Smart Valley is located in Guangzhou Nansha Free Trade Zone With a total GFA of over 300,000 sqm, it is positioned as "Al + Emerging Industries", integrating office, industrial properties, commercial and community facilities, etc. Introducing hi-tech companies with high-growth, establishes a system with industrial auxiliaries and value-added services and provides operational support; have signed intent agreement with over 10 high-tech companies 奥园≥ NEVAT Ala RA 奥园 奥国≥ BURA 庆七十华诞 谱美丽新篇 奧國,彌区智谷奠基仪式 暨产业招商签约仪式 R 两门创新冰酒 香港上市名企 股票代码 114 1 L 东方美谷·奧园上海盛大起航 (All are CGI) 80#92H2021 Strategies and plans DA 调 Aoyuan is committed to becoming a sustainable and lasting enterprise China maintains the long-term mechanism of “housing is for living, not for speculation" in the real estate industry. Property developers are changing their development model from scaling up to quality growth With a focus on urban agglomerations e.g. Greater Bay Area and Yangtze River Delta, Aoyuan actively expands urban redevelopment and centres on higher-tier cities. Committed to regional cultivation, Aoyuan supports city subsidiaries to achieve RMB10bn of sales or above Comprehensive integration of the property business brings about flat management & control, while implementation and enhancement of integrated operations system facilitates delicacy management, unleashing the benefits of effective management Stable growth • Continue regional cultivation and develop the subsidiaries in core cities to achieve RMB10bn sales each •Focus on higher- tier cities, enhance urban redevelopment projects, and accelerate conversion • Strengthen risk control; ensure cash flow safety Uphold "one core business with vertical development" and vertically extend industry chain surrounding core property business Improved sales & marketing •Improve sales & marketing, enhance the sell- through rate of newly launched projects, accelerate inventory de- stocking ⚫Cash collection to be a key indicator in performance appraisal and accelerate the cash collection and recognition of profits Strengthen operating cash flow and reduce leverage in an orderly manner; fulfill "three red lines" at the earliest time Client-focused • Elevate management level of the customer service department and improve customer satisfaction Establish a full- cycle management system for customer service and strengthen service quality in sales, project delivery, property management, complaint handling, etc. • Establish brand differentiation of Aoyuan's service and enhance customer experience and satisfaction Refined products • Implement Aoyuan's A+ product strategy and promote comprehensive product upgrades • Set up a lean system of design & management, with equal emphasis on standardized design and R&D innovation, and further enhance quality control • Build a series of signature projects and improve product competitiveness and brand influence to increase product premium Enhanced operations •Implement flat management, and give full play to overall efficiency •Facilitate and strengthen the integrated operations management to enhance delicacy operations • Optimize KPIs and performance- based incentive mechanism to improve team quality and stability Comprehensively improve product and service quality and increase operating profit Cost control • Enhance project standardization and proportion of centralized procurement to optimize construction costs • Improve management delicacy and lower selling, general and administrative cost • Ensure efficient use of capital and reduce finance cost • Reduce taxation expenses with appropriate tax planning Increase efficiency Accelerate cash collection Strengthen brand Improve quality Enrich profit Lower cost Greater focus on the balance of scale and profitability to achieve sustainable, high-quality and comprehensive development 6#102. Results & Financial Overview Yangzhou Aoyuan Jinghang Bay (CGI)#111H2021 Results overview Sustained sales and delivery growth • • • DA 调 Property contracted sales in 9M2021 up 18% yoy to RMB98.5bn Revenue up 15% yoy to RMB32.5bn Net profit was RMB2.8bn, net profit margin was 8.7% Core net profit was RMB2.9bn, core net profit margin was 8.8% Prudent landbank replenishment Adhered to prudent landbank replenishment while leveraging its traditional strengths in M&A, urban redevelopment, etc. with a focus on tier 1&2 cities Over RMB17.8bn of newly added saleable resources in 1H2021, tier 1&2 accounted for 92% Stable cash collection rate Ample liquidity Cash collection rate was stable at 87% Total cash was RMB68.3bn, covering 1.3x of short-term debt Accelerating conversion of urban redevelopment Refinancing arranged in advance . • • Publicly issued US$738mn offshore senior notes and RMB1.82bn onshore corporate bond Secured offshore syndicated loans of over HK$2.1bn from 12 commercial banks Completed redemption of all public offshore senior notes due 2021 Sufficient landbank with optimizing structure • • Converted saleable resources of approx. RMB13.5bn in 1H2021, accounting for 76% of newly added saleable resources during the period Expected to convert saleable resources of RMB242bn in 2021-2024 • • • As of end-Jun 2021, total saleable resources in landbank were approx. RMB593.9bn Expected saleable resources from urban redevelopment were RMB754.3bn Total saleable resources (URP-included) amounted to RMB1,348.2bn, proportion of tier 1&2 increased to 84% 11#12Income statement highlights (6 months ended 30 Jun) (RMB '000) Revenue (1) 2021 32,509,667 Gross profit 8,129,665 Gross profit margin 25.0% Net profit 2,842,557 Net profit margin 8.7% Core net profit (2) 2,867,561 Core net profit margin 8.8% Core net profit 2,156,709 attributable to shareholders (3) Core net profit attributable to 6.6% shareholders margin Note: 2020 Change 28,243,000 +15% 8,282,103 -2% 29.3% -4.3 p.p. +0% 2,839,886 10.1% -1.4 p.p. 2,828,244 +1% 10.0% -1.2 p.p. 2,450,478 -12% 8.7% -2.1 p.p. (1) In 1H2021, property development accounted for 94.5% of revenue, while property investment, property management, sales of goods and others accounted for 5.5% Core net profit excludes non-recurring profit or loss items and their related tax expenses, comprising fair value gain on investment properties, and net exchange differences, etc. (2) (3) In 1H2021, core net profit attributable to shareholders accounted for 75%, while core net profit attributable to non-controlling shareholders accounted for 25% DA 调 12#13Balance sheet highlights (RMB '000) Total cash (1) Total assets DA As of 30 Jun 2021 As of 31 Dec 2020 As of 30 Jun 2020 68,322,791 70,025,660 68,684,174 316,154,630 325,678,456 298,587,136 Total liabilities (2) 262,863,651 271,425,810 256,493,176 Total debt (3) 111,311,138 114,872,984 103,047,755 Net debt (4) 42,988,347 44,847,324 34,363,581 Total equity Note: 53,290,979 54,252,646 42,093,960 (1) Total cash = Bank balances and cash + Restricted bank deposits, unrestricted cash accounted for 89% As of 30 Jun 2021, credit facilities amounted to approx. RMB242.6bn, of which approx. RMB128.3bn were unutilized (2) As of 30 Jun 2021, total liabilities mainly include contract liabilities of RMB63.4bn and total debt of RMB111.3bn (3) Total debt includes interest-bearing debts such as onshore & offshore bank and other borrowings, onshore corporate bonds and offshore senior notes etc. (Please refer to page 14 for more details) (4) Net debt = Total debt - Total cash 13#14Debt profile and capital management Debt structure Total debt: RMB111.3bn By type (As of 30 Jun 2021) Offshore senior notes 21% Onshore bank Short-term debt: RMB51.7bn (As of 30 Jun 2021) By type Offshore senior notes 13% Offshore bank & other borrowings 17% Offshore bank & other borrowings 12% Onshore corporate bonds & other borrowings 60% Onshore corporate bonds 8% 7% Onshore bank & other borrowings 62% • Onshore: 67% • Onshore: 70% ⚫ Offshore: 33% ⚫ Offshore: 30% •2H2021: 42% 1H2022: 58% 8% Avg. borrowing cost 7.4% 7% Debt maturity Over 5 years 4% 7.5% 7.2% 7.0% 2-5 years 29% Less than 1 year 46% 1-2 years 21% 6% 2018 2019 2020 1H2021 ✓ As of 30 Jun 2021, total cash amounted to approx. RMB68.3bn, covering 1.3 times of short-term debt of approx. RMB51.7bn ✓ As of end-Jul 2021, short-term debt of approx. RMB2.5bn were repaid and rolled over, alleviating short-term debt pressure with short-term debt ratio lowered to 44% Arranges refinancing in advance Prudent capital management DA In Jan 2021, issued US$188mn 4.2% senior notes at par through exchange offer and new issuance, further setting record-low borrowing cost among Aoyuan's issuances In Feb 2021, issued US$350mn 5.88% 6-year offshore senior notes, the longest bond maturity ever issued by Aoyuan In Jun 2021, issued US$200mn 7.95% senior notes due 2024, fully utilizing the US$550mn offshore bond quota obtained from the NDRC In Jul 2021, issued RMB1.82bn 4-year domestic corporate bond with a coupon rate of 6.8% ✓ In Mar and May 2021, secured two tranches of 3-year offshore syndicated loans of over HK$2.1bn in total, at an interest rate of HIBOR/LIBOR+4.30% per annum with 12 commercial banks namely Bank of China (Hong Kong), Bank of East Asia, Barclays Bank, China Construction Bank (Asia), China Minsheng Bank Hong Kong Branch, Chong Hing Bank, CMB Wing Lung Bank, Deutsche Bank, Hang Seng Bank, Nanyang Commercial Bank, Standard Chartered Bank (Hong Kong) and Tai Fung Bank (in alphabetical order) Secured offshore bilateral loans of approx. HK$1bn in total from Nanyang Commercial Bank, Chiyu Banking Corporation, China CITIC Bank (International), and OCBC Bank in Singapore Values corporate credibility Completes redemption of all public offshore senior notes due 2021 Redeemed US$188mn offshore senior notes due Feb 2021 on time In Mar 2021, redeemed US$500mn and S$100mn offshore senior notes due Sep 2021 in advance ✓ Redeemed US$425mn offshore senior notes due May 2021 on time 14#15(RMB bn) 80 60 DA 调 Adhering to prudent financial management, Aoyuan recycles capital through rapid presales, achieving significantly improved operating cash flow while ensuring healthy cash flow 1H2021 Cash flow (Consolidated) 1H2021 Cash Collection (Gross) Cash flow and cash collection (RMB bn) 32.28 -7.02 -15.88 -4.25 -2.66 -4.39 -38.67 160 140 120 41.79 100 80 60 40 882° 20 70.03 10 70 -0.47 -2.44 68.32 SG&A Tax expenses 60 60 58.79 50 T 40 40 T 30 (as of 30 Jun) Ending cash balance Other cash outflow shareholders Payment to non-controlling Debt repayment Interest payment 67.58 20 20 10 0 87% Cash collected Contracted sales Note (1): As of 30 Jun 2021, the outstanding land premium was approx. RMB6.43bn which is expected to be fully paid within a year Construction expenses Land acquisition (1) domestic bonds issuance. proceeds from senior notes/ New bank borrowings and Operating cash flow (as of 1 Jan) Opening cash balance 15#16Interim progress of credit metrics enhancement Net gearing ratio (1) Cash to short-term debt ratio (2) Debt to asset ratio (3) (excl. presales deposits) III 100% 2 85% 81.6% 82.7% 80.7% 80% 60% 80.3% 1.4x 80% 1.3x 1.3x 78.4% 78.5% 40% 20% 0% 1 75% End-Jun 2020 End-Dec 2020 End-Jun 2021 End-Jun 2020 End-Dec 2020 End-Jun 2021 End-Jun 2020 End-Dec 2020 End-Jun 2021 (RMB bn) Total debt Total sales/Total debt (4) Revenue/Total debt (4) 160% 134.5% 80% 150 64.7% 114.9 111.3 111.9% 115.8% 59.0% 103.0 120% 60% 53.5% 100 80% 40% 50 50 40% 20% 0 0% 0% End-Jun 2020 End-Dec 2020 End-Jun 2021 End-Jun 2020 End-Dec 2020 End-Jun 2021 End-Jun 2020 End-Dec 2020 End-Jun 2021 Note: (1) Net gearing ratio = Net debt / Total equity (2) Cash to short-term debt ratio = Total cash / Short-term debt (3) Debt to asset ratio = Total Liabilities / Total Assets (excl. presales deposits) (4) Annualized treatment based on data over the past 12 months 16#17Strategies for fulfilling "three red lines" (RMB bn) 120 Through accelerating cash collection, balanced investment pace, cost reduction, and faster delivery to achieve positive operating cash flow in next three years, reducing liabilities and increasing net assets Proactive debt management to reduce interest-bearing debt 114.9 No less than 5% reduction each year* Accelerate profit recognition to enhance net assets (RMB bn) 120 CAGR: 15% or more 80 40 0 2020 2021E 2022E 2023E Interest-bearing debt *By end-2021, interest-bearing debt is expected to decrease by 10% to 15% y-o-y Accelerate cash collection ✓ Actively reduce inventory and improve sell- through rate of new launches for steady increase in net operating cash inflow and net assets ✓ Accelerates cash collection and settlement of account receivables; cash collection to be a key indicator in performance appraisal Cost reduction ✓ Optimize organizational operations and lower SG&A costs, productivity per capita ✓ exhibited marked improvement Strengthen capital management and improve capital utilization to ensure continuous reduction of interest-bearing debt and finance costs 80 54.3 40 0 2020 2021E Balanced pace Faster delivery 2022E Net assets 2023E ✓ Prudent land acquisition with sales-based investment, annual budget is capped within 20% of contracted sales of the year ✓ Enhance project standardization and centralized procurement with dynamic adjustment of development pace for optimization and flexible control of construction costs III ✓ Net assets to achieve CAGR of 15% or more in 2020-2023; project delivery is to pick up pace to increase profit Steadily increase investment properties and other asset types to continuously increase diversified income and to provide stable cash flow 17#18LIFF 3.Business Operations Guangzhou Aoyuan Lianfeng State (actual image)#19"Tempo run" for high-quality development "Sprint" under scale-driven era: Seized shifting growth opportunities in the industry via rapid turnover to scale up, entering the RMB100bn sales circle and ranking among national Top 30 "Tempo run" under management-driven era: Optimizes operations across the Group and elevates delicacy management to maintain measured growth and achieve high-quality development (RMB mn) "Sprint" under scale-driven era CAGR in 2015-2019: 67% "Tempo run" under management-driven era Attributable rate 150,000 125,000 114,00011 118,060 132,000133,010 150,000 100,000 91,280 of contracted sales in 9M2021 was 71% 98,500 73,000 75,000 45,590 50,000 25,600 33,300 25,000 13,500 15,170 16,500 0 Achieved contracted sales of RMB98.5bn in 9M2021, up 18% yoy 2015 2016 2017 2018 ■Original full-year target Actual completion 2019 2020 2021 68th 65th 40th 38th 27th 29th 29th (9M2021) CRIC sales rankings (Gross) of PRC developers Monthly contracted sales (RMB mn) First half of the year Second half of the year 25,000 20,000 15,000 10,000 5,600 5,000 5,060 5,630 1,960 10,100 7,930 7,500 7,280 11,980 9,570 8,730 11,050 10,030 10,250 11,510 15,300 17,590 6,660 9,550 9,610 7,680 15,010 10,850 10,360 10,620 12,080 10,950 10,030 15,160 12.650 15.250 0 Jan Feb Mar Apr May Jun Jul 2019 2020 2021 Aug Sep Oct Nov 16,790 Dec 19,250 19#20Target accomplishment backed by ample and quality saleable resources 2021E saleable resources: approx. RMB220bn Sufficient launches support well-balanced sales pace and target accomplishment Well-balanced new launches for Q1-Q3 By region Offshore 1% Offshore 4% Bohai Rim 10% Bohai Rim 10% South China 29% East China 24% South China 38% 40% 35% 28% 30% 37% 34% 28% 25% 24% 25% 20% 13% 15% 11% East China 34% 10% 5% Core region of Central & Western China 26% 0% 2020 Contracted sales 2021 Saleable resources Q1 Q2 Q3 Q4 1H2021 Contracted sales Tier 3&4 44% Tier 1&2 56% By city tier Tier 3&4 34% Tier 1&2 66% Commercial properties 10% Residential properties 90% Core region of Central & Western China 24% 2021E Saleable resources By product Commercial properties 17% Residential properties 83% 胴 1H2021 Contracted sales 2021E Saleable resources 1H2021 Contracted sales 2021E Saleable resources 20 20#21Contracted and recognized sales Contracted sales and GFA sold (Gross, tax-inclusive) Recognized sales and GFA sold (Consolidated) (RMB mn) (000's sqm) (RMB mn) 140,000 133,010 14,000 70,000 118,060 120,000 12,882 12,000 60,000 11,685 100,000 91,280 10,000 50,000 80,000 8,863 8,000 40,000 5,212 67,576 29,740 60,000 6,000 30,000 45,590 5,963 40,000 17,960 4,487 4,000 20,000 3,302 2,428 20,000 2,000 10,000 0 0 0 2017 2018 2019 2020 1H2021 2017 2018 2019 (000's sqm) 64,417 8,000 7,000 6,890 48,091 6,000 5,000 29,674 4,000 3,679 3,000 2,000 1,000 0 2020 1H2021 Contracted sales Contracted GFA sold ■Recognized sales Recognized GFA sold 1H2021 Recognized sales: RMB29.7bn By region Bohai Rim 7% Offshore 1% East China 14% By product Commercial properties South China 40% 24% Core region of Central & Western China 38% (RMB mn) 160,000 120,000 Recognized sales (Gross) Faster property delivery CAGR: 25% or more 69,517 80,000 Residential 40,000 properties 76% 0 2020 2021E 2022E 2023E ■Subsidiaries JVs and associates III 21#22III . Enhanced integrated operations management to improve quality and efficiency Aoyuan has strengthened its integrated operations management & control, which is financial-oriented, cash flow-based, and driven by synergies among various functions. Also, Aoyuan has formed standardized product lines with development cycles accelerating year by year to a level better than benchmark companies. Aoyuan's construction quality ranks among the industry's Top 20. Aoyuan has achieved quality upgrade and product premium while customer experience & satisfaction have been steadily improving Early stage control: Strengthens three-meeting system comprising investment decision meeting, project positioning meeting, and project kick-off meeting, where competent professionals actively participate in the decision making process to ensure its accuracy and implementation Process control: implements effective control & management of "8+7" nodes (milestone nodes and key construction nodes) to ensure project quality Final stage control: ensures high-quality and on-time delivery, improves customer experience and satisfaction Effective organizational structure: develops a corporate structure connecting the group and regional subsidiaries to boost the initiative of front-line staff Dynamic adjustment of development pace to enhance cash flow (000's sqm) 20,000 Early Stage 14,495 Control 15,000 12,193 9,620 10,000 6,865 7,004 4,580 4,915 4,720 5,000 0+ 2018 Three-meeting system 2019 ■GFA with construction newly started 2020 1H2021 Completed GFA Process Control Integrated Operations Management 8+7 nodes & Control Shorter cycle between land acquisition and presales launch (Months) 10 8.2 5 ■Launch Cycle 7.5 6.8 0 2018 2019 2020 Effective Organizational Structure Connecting group level & regional subsidiaries Final Stage Control Delivery & customer satisfaction Customer satisfaction 100 Source: FG Consulting 86 80 -76 70 74 60 64 420 91 90 40 65 67 69 72 73 73 75 78 20 0 Prospective owners Break-in period Stable period ■ 2020 1H2021 Property management Existing customers - Industry avg. 22 22#23Informatization of integrated operations management Aoyuan Torch System, an informatized management platform jointly developed by Aoyuan and Mingyuan Cloud in early 2020, elevates the quality of Aoyuan's products and services on all fronts Manage and improve 13 key operational metrics including plan management, product quality, customer service, and sales & marketing expenses, etc. through a data-driven model that focuses on improving of profits and cash flow Oversee the project construction process efficiently and comprehensively, facilitating safe construction, quality control through the real-time national video monitoring system of construction projects Discover and cultivate talents better through analysis of Aoyuan's talent data Improve operational efficiency, accuracy of operational data and productivity per capita through the launch of reporting center, meeting system for regional operations and the integrated operations dashboard Control cost-effectiveness of marketing, increase conversion of on-site visits, and prices products more closely to market level through the launch of the sales management system, control system of marketing expenses, and pricing management system 区域公司: 佛山区域公司 Aoyuan Torch System T 报告 日报 周报 月报 □ 本周新增 奧國云 O 集团 大区 区域 项目 I 逾期情况 认购 签约 回款 檢 里程换节点逾期未完成 关键一级节点道期未完成 关键一级节点預警 里程碑节点預覽 I 节点达成率排名 排序: 认购 签约 回款 8+7节点 里程碑节点 关键一级节点 三详情 1 郑州区域公司 组织架构 认购套数 退认购套数 认购金额 選认 2 宁波区域公司 3 南昌区域公司 4 南宁区域公司 5 武汉区域公司 6 长沙区域公司 7 江西片区公司 D 8 8 青岛区域公司 E 佛山区域公司运营大屏 2021年军令状 中国奥园项目视频监控中心////// 供货 年度供货目标截止目前完成值累计达成 供销比 奥园 工地监控 案场监控 销售合约净利润率 交楼额 ANGAL 组织架构 总可售资源(货值) 总可查(面 库存 回款额 回款率 土储 亿元 在途 项目盈亏情况 11 利率0-5% 利率8%以上 亏损项目 利率5-8%: 节点逾期/预警情况 里程碑节点逾期未完成 关键一级节点逾期未完成 里程碑节点预警 关键一级节点预警 销售 本日认购新增 本日签约新增 本年签约完成 大豆 完成率 完成率 完成率 完成率 广州大区 PONE 全部 全部 项目名称:佛山奥园阳公园一號 弘阳公园一号-7号塔吊球机 Q 弘阳公园一 2021年08月13日 星期五 22:23:09 20214 全标段-7号楼一中大民 督办事项 事项 全國 已完成 完成率 第三方评估 追灣合闖交付预 住宅土建过程 精装专项 交付评估 地下专项安全专项 序号 项目名称 设备情况 综合得分 集团排名 责任人 球机监控 28 20m 31 安全相嗑啡 VIRA 15 3m 15. 23 23#24Full upgrade of Aoyuan A+ product competitiveness IN In 2019, Aoyuan introduced a product team from a leading property developer and built Aoyuan A+ Product Universe which emphasizes both standardization and R&D innovation. Developed 3 major high-end product suites (Residence Class, Yunfeng, ONE) leading to increasing ASP. Full upgrade in product competitiveness recognized with onshore and offshore industry awards 精致生活源于细節 客戶需求不斷揣度 郭梓文 A A* A+ Fit-out + Decor Products At Matching Platform Aoyuan A+ Product Universe DA 调 Aoyuan A+ Product Universe consists of five elements: Residence, Neighborhood, Craftsmanship, Service and Amenities, upholding the product proposition of "Building a Healthy Lifestyle and Smart Communities". Aoyuan leverages its strong product capability and comprehensive service system to achieve a full coverage of scenes of customers' everyday life Through synergies between digital & standardized design management platform and physical product R&D base A+ Workshop, Aoyuan achieves continued innovation on the basis of standardization to enhance product quality and efficiency 3 major high-end product suites: Residence Class, Yunfeng, ONE Developed WELL healthy home solutions leveraging synergies with health and medical resources from Aoyuan Healthy Life (3662.HK) A* A+ Workshop A Physical Product R&D Base Located in Panyu, Guangzhou, with a site area of 4,700 sqm and commenced operation in Dec 2019 Showcases Aoyuan's standardized product suites, craftsmanship and procured materials R&D results of showflats, types of flats and new materials are 1:1 demonstrated, ensuring product quality A+ Cloudcraft Drawing Data Management Platform FAT 聘 Garnered 14 onshore and offshore awards including RTF Awards, Outstanding Property Award London, DNA (France), GPDP Award (France) in 1H2021 Onshore WELL Certification WELL MEMBER 园匠杯 PRECERTIFIED 30 CBDA Offshore OUTSTANDING PROPERTY AWARD LONDON PARIS DESIGN AWARDS 2021 gbe Global Business GRANDS PRIX DU DESIGN 14th EDITION rtf 24#25Elevate product adaptability through both standardization and innovation Focusing on customer needs and experience, a dual standardization system has been established to accommodate nationwide and regional-specific needs. Meanwhile, R&D innovation through building non-standardized projects facilitates the constant upgrade of the standardization system, thereby enhancing product competitiveness and premium High-rise apartment Modern Minimalist Contemporary Chinese Modern Elegance Low-rise apartment Facade: Based on product I positioning, break down specification of the facade to control the style and curated material of the main body, base, railing, door head and other areas of concern to customers, achieving efficient cost allocation and quality control 7 major units: Parts & components (signages), pavements & surfaces, fences, activity space, entrances and exits, water features, structures 2 major themed IPs: Stilt floor, XiaoAoJia (kids' playspace) SOCIAL Landscape Modern Elegance Contemporary Chinese Sales & exhibition centre Integrates innovative, cultural and other elements based on product positioning Optimizes cost while accentuating product traits and brand image, improving customer experience 主城芯 公园生 Jes 55 25#26Elevate product adaptability through both standardization and innovation (cont.) Focusing on customer experience and needs, the overall product specification is based on 5 majors functional areas namely architecture, landscape, interior, intelligent services, and electromechanical system, leading to integration and standardization of data on R&D, customer research, and cost, thereby achieving delicacy product management Bedroom The master bedroom suite comes with clearly designated yet variable space, meeting all needs Living & dining room Open design to maximize daylight intake and wind-induced ventilation; integrated living room & dining room to increase activity space Home entrance Separate entrance space with a cabinet to enhance storage and keep things clean Kitchen Meticulous design with material that is easy to clean Washroom Comes with windows to ensure good ventilation; drainage pipes arrangement to prevent virus transmission between upper and lower floors Ground floor lobby Ventilation openings and hollow glass windows to ensure air circulation, reducing the risk of virus transmission Underground lobby Bright lobby design guides entry and exit with face recognition for contactless access. Anti-collision bollards ensure pedestrian safety and facilitates the passage of trolleys and strollers 26#27(All are actual images) Offshore project localization and completed full development cycle Aoyuan has achieved localization of offshore projects and tapped into local bank financing channels and is one of the few PRC developers that has completed full development cycle offshore. Aoyuan has established internationalized brand recognition, garnering the honor of "10 developers to watch" in New South Wales from a leading real estate website and awards from UDIA. Aoyuan has applied the development experience of international high-end projects to domestics projects, empowering the development of domestic benchmark projects Aoyuan One30 Hyde Park, Sydney Aoyuan Gordon Altessa 888, Sydney Aoyuan Maison 188 Maroubra, Sydney Aoyuan Mirabell Turramurra, Sydney • Attributable: 70% . NPM: 14% • Attributable: 100% . NPM: 13% • Attributable: 100% NPM: 11% . Attributable: 100% NPM: 10% • Contracted sales: approx. RMB2bn Delivery date: Mar 2019 Principal bank: Commonwealth Bank of Australia, etc. ⚫ Contracted sales: approx. RMB300mn Delivery date: Dec 2018 Principal bank: Westpac Bank . Contracted sales: approx. RMB400mn • Contracted sales: approx. RMB600mn • Delivery date: Nov 2018 • Delivery date: Jun 2020 Principal bank: ANZ Bank . Principal bank: ANZ Bank Aoyuan Lennox Parramatta, Sydney • Attributable: 100% Contracted sales: approx. RMB1.1bn . Delivery date: Q32021 Aoyuan Esplanade Norwest, Sydney Attributable: 87.5% ⚫ NPM: 13% • Contracted sales: approx. RMB1.6bn Delivery date: Jun 2020 Principal bank: ANZ Bank Aoyuan Woolooware Bay, Sydney Aoyuan Adela Burwood, Sydney • Attributable: 75% NPM: 10% Attributable: 100% • Contracted sales: approx. RMB1bn ⚫ Delivery date: Jun 2020 • Contracted sales: approx. RMB500mn • Delivery date: Q32021 Principal bank: National Australia Bank Principal bank: Westpac Bank (CGI) (CGI) Principal institution: Gresham/GIC 27 27#28Increasing diversified revenue with stable cash flow Gradually increases portfolio in investment properties and other assets to increase diversified revenue and generate stable cash flow A Major investment properties (shopping mall, office) Increasing diversified revenue (RMB mn) Project Location Occupancy Product GFA rate type(1) (sqm) CAGR in 2020-2023: approx.50% 1 Guangzhou Panyu Aoyuan Plaza Panyu, Guangzhou 99% C, R 80,500 2 Guangzhou Luogang Aoyuan Plaza Huangpu, Guangzhou 100% C, R 34,600 3 Guangzhou Aoyuan City Plaza Panyu, Guangzhou 98% C, R 13,800 325 4 Zhuhai Aoyuan Plaza Zhuhai, Guangdong 98% C, R 65,000 5 Jiangmen Aoyuan Plaza Jiangmen,Guangdong 88% C, R 62,500 2020 2021E 2022E 2023E 6 Beijing Kinghand Building Beijing 71% о 9,500 7 Chongqing Panlong Aoyuan Plaza Chongqing 98% 8 Chongqing Chayuan Aoyuan Plaza Chongqing 100% C, R 47,200 C, R 51,600 Guangzhou Aoyuan Int'l Centre Aoyuan Sheraton Guangzhou Guangzhou Panyu Aoyuan Plaza Guangzhou Luogang Aoyuan Plaza 9 Hefei Aoyuan City Plaza Hefei,Anhui 93% C, R 21,800 10 Guangzhou Aoyuan Kangwei Plaza Zengcheng, Guangzhou Leasing 11 Chongqing Aoyuan The Metropolis C, R 52,600 Chongqing Leasing C 19,300 12 Chengdu Chenghua Aoyuan Plaza Chengdu, Sichuan Leasing C, R 31,400 13 Zhuhai Aoyuan Int'l Business Centre Zhuhai, Guangdong 14 Shanghai Aoyuan Beauty Valley Leasing Shanghai Leasing C, O 51,200 91,400 Zhuhai Aoyuan Plaza Guangzhou Aoyuan City Plaza Major asset types (hotel, cultural tourism) Location Status Product type(1) 不腻家 Project 1 Aoyuan Sheraton Guangzhou 2 Yingde Aoyuan DoubleTree by Hilton Hotel Panyu, Guangzhou Qingyuan, Opened International brand hotel Opened Guangzhou 3 Panyu Aoyuan Golf Hotel 4 Aoyuan Yingde Chocolate Park 5 Aoyuan Yingde Quanlin Water World 6 Aoyuan Yingde Tea and Chocolate Town Museum+ outdoor theatre Note (1): C Commercial; R = Retail shop; O = Office building; I = Industry R&D Panyu, Guangzhou Qingyuan, Guangzhou Qingyuan, Guangzhou Qingyuan, Guangzhou Opened Opened International brand hotel Self-owned brand hotel Theme park+ Chocolate factory Aoyuan Yingde Chocolate Park Aoyuan Yingde Chocolate Kingdom Aoyuan Yingde Tea and Chocolate Town Water park+ Opened hot spring Opened (All are actual images) 28#29✓ Nationwide layout with continued cultivation in key regions Through three steps of "Layout - Focus - Cultivation", Aoyuan completed a nationwide layout and has grown from a regional property developer to a developer with a nationwide presence In 2021, Aoyuan will further optimize its geographic layout, concentrating resources to groom core city subsidiaries achieving RMB10bn sales or above, forming a "major + satellite city" layout Entering Cultivation 3.0 stage, Aoyuan streamlines its structure and establishes appropriate regional scale to enhance operational efficiency With appropriate scale for each region, Aoyuan provides a platform for capable talents to perform which helps retaining them, engendering a win-win situation for the Company and its talents. Meanwhile, Aoyuan presses on with regional cultivation, allowing it to exert greater influence and attract more peers for collaboration Hundred Billion League Quasi-hundred Billion League 2019 Cultivation (源讚) 2018 Focus (聚焦) Post-hundred Billion Era 2020 Cultivation 2.0 (深20) Post-hundred Billion Era 2021 Cultivation 3.0 (深耕30) • Streamline the structure and develop 25 regional/city-level subsidiaries • Achieve annual sales of RMB10-20bn for subsidiaries in core cities, RMB5bn or above for subsidiaries in non-core cities - - - • Continue to cultivate in relevant urban agglomerations where regional/city-level subsidiaries are based to further increase the proportion of operations in key tier 1&2 cities and achieve Top 10/Top 20 ranking in sales in more cities • Achieve annual sales of RMB5bn or above for each of the 30 regional/city-level subsidiaries - - • Cultivate key regions, key tier 1&2 cities and strong tier 3 cities, as well as enhance productivity and market share • Achieve annual sales of RMB4bn or above for each of the 30 regional/city-level subsidiaries Fifty Billion League 2017 Layout 《布局》 • Focus on core and key cities and achieve the expansion from cities to urban agglomerations Develop 30 regional/city-level subsidiaries, each with annual contracted sales of RMB3bn or above • Complete the strategic framework of four major regions, laying a solid foundation for future growth Develop 15 regional/city-level subsidiaries, each with annual contracted sales of RMB3bn or above 29#30III Optimizing landbank structure focusing on tier 1&2 cities With a niche focus on the Greater Bay Area and strategic priority over tier 1&2 cities, Aoyuan has a strategic layout in South China, core region of Central & Western China, East China and Bohai Rim As of 30 Jun 2021, Aoyuan's projects spanned 95 onshore and offshore cities with total GFA of approx. 53.58mn sqm (attributable: 67%) and total saleable resources of approx. RMB593.9bn. Total saleable resources including urban redevelopment projects amounted to RMB1,348.2bn, which is sufficient for the development needs in the next 4-5 years Hidden gem of landbank building momentum With land certificate Total saleable resources in landbank RMB593.9bn Total saleable resources in landbank RMB754.3bn Urban redevelopment Est. gross margin: 35%-40% Land bank breakdown by region By saleable resources with land certificate: RMB593.9bn By saleable resources including URP: RMB1,348.2bn Offshore 4% Bohai Rim 8% Offshore 2% East China 10% Bohai Rim 18% Core region South China 35% of Central & Western Core region China 10% South China 70% East China 22% of Central & Western China 21% Landbank breakdown by city tiers By saleable resources Urban redevelopment included 84% 16% Current Expected Urban redevelopment excluded 63% 37% 0% 20% 40% 60% 80% 100% ■Tier 1&2 and international cities Tier 3&4 cities 30#31Optimizing landbank structure focusing on tier 1&2 cities (cont.) Focus resources on tier 1&2 and core tier 3 cities, groom core city subsidiaries with RMB10bn sales or above, and form a "major+ satellite city" layout to cultivate metropolitan areas Total Saleable Region Province/ City Contribution (by total GFA) Avg. land cost (RMB/sqm) Total GFA (000's sqm) Total Saleable Resources (RMB bn) Resources Including URP Land bank breakdown by type Land bank breakdown by status By GFA By GFA (RMB bn) GBA (excl. Hong Kong, Macao) 4,097 8,451 124 872.7 Guangdong excl. GBA (Meizhou, South 1,055 6,686 53.5 53.5 Investment properties 3% Auxilliary facilities 3% Qingyuan, etc.) China Guangxi (Nanning, Yulin, etc.) 1,227 3,868 26.3 27.8 Completed and held for sale 10% Completed and sold, but yet to be delivered/ Auxiliary facilities 4% Hainan (Haikou) 3,322 96 1.6 1.6 Subtotal 36% 2,447 19,101 205.4 955.6 Commercial properties Chongqing 2,473 1,890 15.1 15.1 15% Core Sichuan (Chengdu, Guanghan, etc) Hunan (Changsha, Zhuzhou, etc.) 5,941 2,097 29.6 29.6 Held for future development 33% 1,629 2,961 Boha 23.1 27.2 region of Hubei (Wuhan, Jingzhou, etc.) 3,505 1,045 10.6 Central & Rim 10.6 Shaanxi (Xi'an) 3,446 1,495 20.1 20.1 Residential properties 79% Under development 53% Western China Henan (Zhengzhou, Kaifeng, etc.) 2,188 814 7.6 7.6 Jiangxi (Nanchang, Jiujiang, etc.) 962 2,474 16.8 16.8 Guizhou (Bijie) 532 entral 213 1.2 1.2 Yunnan (Kunming) 1,847 223 East 2.1 2.1 Subtotal 25% 2,684 13,212 126.2 130.3 Avg. land cost to expected ASP Project scale Shanghai 16,492 hina 452 16.0 16.0 East China Zhejiang (Hangzhou, Ningbo, etc.) Jiangsu (Nanjing, Suzhou, etc.) 5,670 963 14.1 14.1 (RMB/sqm) 4,694 4,455 56.2 56.2 12,000 11,100 Anhui (Hefei, Bengbu,etc.) 2,752 2,554 23.0 23.0 Fujian (Fuzhou, Quanzhou, etc.) 4,496 1,602 19.2 19.2 10,000 65% Project GFA: Subtotal 18% 4,793 10,026 128.5 128.5 Liaoning (Shenyang) 338 877 5.2 8,000 < 0.2mn sqm 5.2 1:4 Beijing 15,000 176 4.0 4.0 Bohai Rim 6,000 28% Project GFA: Tianjin 5,069 443 7.4 7.4 Hebei (Shijiazhuang, etc.) 2,244 2,491 26.6 26.6 4,000 2,826 Shandong (Qingdao, Jinan, etc.) 650 5,524 62.2 62.2 7% Subtotal 18% 1,510 9,511 105.4 105.4 2,000 0.2mn to 0.5mn sqm Project GFA: > 0.5mn sqm Offshore Sydney, Vancouver, Toronto, Hong Kong, Macao 3% 3,932 1,729 28.4 28.4 0 Total 100% 2,826 53,579 593.9 1,348.2 Avg. land cost Expected ASP 31#32Prudent landbank replenishment In 2020, Aoyuan moved ahead of the curve to enhance landbank and accelerated conversion of urban redevelopment with city tiers of landbank improved further. In 2021, Aoyuan will maintain prudent landbank replenishment while leveraging its traditional strengths in M&A, urban redevelopment, etc., ensuring reasonable land cost and underpinning sustainable development A Region Greater Bay Area Province/ City Avg. land cost (RMB/sqm) Total GFA (000's sqm) Attributable GFA (000's sqm) Attributable land cost Interest (%) (RMB mn) Landbank acquired in 1H2021 - regional distribution and acquisition channels Guangzhou, Zhuhai 8,190 674 366 3,308 54% By land cost By GFA East China Xuzhou, Jiangsu 2,054 150 80 163 53% Bohai Rim Tianjin 3,120 247 247 771 100% East China Bohai Rim 18% Grand total 6,161 1,071 693 4,242 65% 4% M&A 23% 2021 sees the official implementation of "three red lines" and launch of centralized land auction. Aoyuan will maintain prudent landbank replenishment with annual budget capped at 20% of the contracted sales of the year In 1H2021, Aoyuan replenished landbank with newly added GFA of approx. 1.07mn sqm (attributable: 65%), attributable land cost was approx. RMB4.2bn with newly added saleable resources of over RMB17.8bn Aoyuan seized market window to proactively replenish landbank in 2020 with attributable land cost of RMB45bn. Newly added saleable resources amounted to RMB242.6bn, 70% of which were located in tier 1&2 cities Accelerating conversion of urban redevelopment with converted saleable resources of approx. RMB40bn in 2020 and approx. RMB13.5bn in 1H2021 respectively; whereas saleable resources to be converted in 2021-2024 are expected to reach RMB242bn, enriching its landbank Aoyuan will continue to exercise strategic landbank replenishment balancing both landbank considerations and financial metrics, and to leverage its traditional strengths in M&A, urban redevelopment, etc. South China 78% Urban redevelopment & others 63% Public land auction 14% Landbank acquired since IPO - regional distribution and acquisition channels By GFA Offshore 3% Bohai Rim 15% East China 19% By GFA Urban redevelopment & others 4% South China 38% Public land auction 27% M&A 69% Core region of Central & Western China 25% 32 32#33RE 旺村 SEREER 4. A Top-notch Player of GBA Urban Redevelopment Guangzhou Aoyuan Wangyue City Huangpu Wang Village Urban Redevelopment Project (actual image)#34(All are actual images) • • • First mover of urban redevelopment to secure high-quality development In 2009, Guangdong carried out pilot urban redevelopment projects for old cities, factories and villages ("three olds"). Cities including Guangzhou and Shenzhen have been requested to introduce industries while Guangzhou is required to include Global 500 companies in old village redevelopment projects in Zone 1&2. In 2021, "urban redevelopment" appeared in Government Work Report for the first time and was included in the 14th Five-Year Plan. In 2011, Aoyuan seized first-mover opportunities in urban redevelopment and has established multi-industry "Aoyuan Urban Redevelopment Model”, contributing to enriching landbank and profit. Planning 2011 - 2013 Incubation 2014-2016 Growth 2017-2019 Scale 2020 onwards Case Study 1: Guangzhou Aoyuan Int'l centre (old village redevelopment) Total GFA: 250,000 sqm Avg. land cost: RMB6,700 per sqm ASP: RMB19,100 per sqm Contracted sales: approx. RMB2.26bn GPM / NPM: 41% / 15% Case Study 2: Guangzhou Luogang Aoyuan Plaza (old factory + old village redevelopment) Total GFA: 330,000 sqm ASP: RMB16,500 per sqm Contracted sales: • approx. RMB4.60bn . GPM / NPM: 30% / 17% Case Study 3: Zhuhai Aoyuan Plaza (old factory redevelopment) Total GFA: 270,000 sqm . Case Study 4: Guangzhou Aoyuan Henderson The Residence Class (old factory redevelopment) Total GFA: 300,000 sqm Avg. land cost: RMB22,280 per sqm Est. ASP: RMB48,000 per sqm Est. saleable resources: approx. RMB14.3bn Est. GPM / NPM: 35% / 15% Redevelopment timetable: ✓ Apr 2018: Signed cooperation agreement with Henderson Avg. land cost: RMB4,800 per sqm Avg. land cost: RMB2,700 per sqm • ASP: RMB20,100 per sqm • • Contracted sales: approx. RMB4.38bn GPM / NPM: 38% / 18% • Redevelopment timetable: . ✓ Dec 2014: Submitted redevelopment plan ✓ ✓ Jun 2013: Listed Phase 1 village- reserved land Mar 2015: Updated plan application Jul 2015: Obtained land ownership certificate ✓ Jan 2021: Obtained land ownership certificate ✓ Oct 2015: Launched for presales ✓ ✓ Mar 2016: Launched for presales Dec 2017: Started to deliver Jun 2014: Launched for presales 3Q 2021: Launch for presales ✓ Sep 2017: Started to deliver ✓ Jun 2016: Started to deliver 2H 2023: Planned start of delivery (CGI) Redevelopment timetable: Dec 2011: Signed cooperation agreement with the government platform company Dec 2013: Completed land consolidation Jul 2015: Obtained land ownership certificate • Redevelopment timetable: Jun 2012: Signed cooperation agreement with the village ✓ Dec 2012: Redevelopment plan approved ✓ Sep 2020: Finished the procedures of bidding, auction and listing 34#35GBA urban redevelopment benchmark Known as one of "Four GBA Dragons", Aoyuan has made early foray into urban redevelopment with abundant talents, experience & resources. Aoyuan is ranked among the "Top 8 China Real Estate Developers in Urban Redevelopment in 2021" Aoyuan has over 70 urban redevelopment projects at different phases with planned total saleable resources of approx. RMB754.3bn, of which RMB748.7bn are located in GBA, accounting for 99%. Urban redevelopment projects can not only enrich landbank, but also generate profit through primary and/or secondary development, as well as disposal of interest at project level, leading to stable profit margins and promising profit visibility Estimated total saleable resources: RMB754.3bn By saleable resources Old factory & old town 3% Others 1% Central & Xi'an, Shaanxi Changsha, Hunan Western China Old village 97% GBA 99% Guangzhou Shenzhen Dongguan Greater South China Bay Area Zhuhai Foshan Qingyuan, Guangdong Meizhou, Guangdong Nanning, Guangxi Accelerating conversion of urban redevelopment Enriching landbank with quality resources Urban redevelopment layout in major cities in Greater Bay Area Chancheng Shen Village Chancheng Qingke Village Nanhai Liantang Village Nanhai Yu Village Nanhai Shinan Village Shunde Renhai Village Shunde Fuyou Est. saleable resources: RMB152.6bn Foshan A Huangpu Wang Village Huangpu Wenchong Huangpu Xintian Huangpu Jiali Pier Panyu Nitrogen Plant Panyu Nanting Village Huadu Dadong Village Huadu Guanxi Village Zengcheng Nanbo Village Zengcheng Shangshao Village Zengcheng Henglang Village Zengcheng Fengyuan Chemical Plant Liwan Donglang Village Nansha Honghu Village Baiyun Xinke Village Est. saleable resources: RMB308.3bn Guang zhou (RMB bn) 100 Converted Expected to be converted 82.0 Xiangzhou Cuiwei Village Xiangzhou Shuiwengkeng Xiangzhou Gongbei Guanzha & Gaosha Village 68.0 Xiangzhou Anlian Road 52.0 Gaoxin Xiazha 40.0 40.0 50 Pingsha Aoyuan Plaza 82.0 26.5 68.0 Doumen Royal Park 52.0 Est. saleable resources: RMB48.2bn Zhuhai 40.0 13.5 0 2020 2021E 2022E 2023E 2024E · Est. saleable Dong guan resources: RMB183.8bn Shen zhen Est. saleable resources: RMB55.8bn In 1H2021, converted saleable resources from urban redevelopment of approx. RMB13.5bn; in 2020, converted saleable resources from urban redevelopment of approx. RMB40bn Saleable resources to be converted in 2021-2024 are expected to reach RMB242bn Estimated average GPM:35%-40%; NPM: 15%-20% Qingxi Luhuba Qingxi Lychee Village Qiaotou Lingtou (Unit 1, 2) Qiaotou Dongtaihu (Unit 1-3) Nancheng Sanyuanli Nancheng Jiedao Shipai Puxin Village Hengli Shanxia Village Hengli Shenshan Wanjiang Jinlong Wanjiang Shimei Wanjiang Shimei Shangpengmiao Village Wanjiang Shimei Xiapengmiao Village Wanjiang Shimei Luciwo Village Qishizhen Tielukeng In 1H2021, Aoyuan came first in Dongguan in terms of newly added urban redevelopment site area Nanxian Zhuli Shiye Longgang Dapu Longgang Guikeng Longgang Shilongkeng Bao'an Hongqiaotou Dapeng Kuixing 35#36Accelerating conversion of urban redevelopment entering a profit-reaping period Projects Converted saleable City Туре Saleable GFA ('000 sqm) resources Status (RMB bn) DA Completed auction Primary development gain Partial/full conversion of urban redevelopment in 2020 1 Guangzhou Panyu Yixing Project 2 Zhuhai Doumen Royal Park 3 Hebei Langfang Zhongsuo Project Phase 1 4 Hebei Langfang Xihutun Project Phase 1 5 Guangzhou Zhongxin Town Fengyuan Chemical Plant 6 Guangzhou Panyu Nitrogen Fertilizer Plant 7 Guangzhou Huangpu Jiali Pier 8 Dongguan Wanjiang Jinlong 9 Nanning Nantang Land Parcel No.2 Partial/full conversion of urban redevelopment in 1H2021 10 Foshan Nanhai Luo Village 11 Zhuhai Xiangzhou Cuiwei Village Phase 1 12 Guangzhou Zengcheng Nanbo Village Guangzhou, Guangdong Zhuhai, Guangdong Langfang, Hebei Foshan, Guangdong Old factory Old town 60 1.1 Launched Old village 350 3.7 Launch in 1H2022 Langfang, Hebei Old village 40 0.6 Guangzhou, Guangdong Old factory 80 1.8 Launch in 2H2022 Launched Guangzhou, Guangdong Guangzhou, Guangdong Dongguan, Guangdong Nanning, Guangxi Old factory 300 14.3 Launch in 3Q2021 Old factory 160 14.0 Launch in 2H2022 Old factory 70 2.3 Launch in 3Q2021 Old factory 170 2.2 Launched Grand total 1,230 40.0 Old village Zhuhai, Guangdong Guangzhou, Guangdong Old village 100 3.8 Completed auction Launch in 3Q2021 Old village 570 9.7 Launch in 4Q2021 Grand total 670 13.5 Projects City Туре Status Planned total GFA ('000 sqm) Estimated Estimated saleable saleable resources GFA ('000 sqm) (RMB bn) Expected partial/ full conversion in 2H2021-2024 13 Shenzhen Zhuli Shiye Project 14 Shenzhen Longgang Shilongkeng Project 15 Shenzhen Longgang Dapu Project 16 Guangzhou Huangpu Wang Village 17 Guangzhou Liwan Donglang Village 18 Foshan Chancheng Shen Village 19 Zhuhai Xiangzhou Cuiwei Village Phase 2 20 Zhuhai Gongbei Guanzha & Gaosha Village 21 Dongguan Qingxi Lychee Village 22 Dongguan Shimei Project 23 Dongguan Lingtou Unit 1 Old village Shenzhen, Guangdong Old factory Shenzhen, Guangdong Old village Shenzhen, Guangdong Guangzhou, Guangdong Old village Guangzhou, Guangdong Old village Foshan, Guangdong Zhuhai, Guangdong Zhuhai, Guangdong Other projects (Shenzhen, Guangzhou, Foshan, Zhuhai, Dongguan, etc.) Expected conversion of urban redevelopment from 2025 onwards Other projects (Shenzhen, Guangzhou, Foshan, Zhuhai, Dongguan, etc.) Old village Implementation plan Implementation plan 140 130 4.6 270 270 17.2 Project proposal approved 810 380 16.9 Land use documentation approval 920 380 12.7 Zoning proposal submitted 1,820 770 40.2 Old village Primary data verification 1,210 570 18.3 Old village Partially converted (demolition and relocation stage) 1,290 440 20.3 Old village Delineating redevelopment unit 330 120 6.8 Dongguan, Guangdong Dongguan, Guangdong Dongguan, Guangdong Old factory Old village Demolition and relocation agreement signed 1+N plan approved Unit delineation plan submitted 360 330 7.4 250 150 4.7 730 430 10.2 6,500 3,750 82.7 Subtotal 14,630 7,720 242.0 Subtotal 30,860 16,350 512.3 Grand total 45,490 24,070 754.3 36#37• Accelerating conversion of urban redevelopment entering a profit-reaping period (cont.) Urban redevelopment projects enrich landbank and bring better profit, laying a solid foundation for future development and helping to stabilize margins. Aoyuan's urban redevelopment projects - Guangzhou Aoyuan Panyu Nitrogen Fertilizer Plant and Zhuhai Xiangzhou Cuiwei Village are positioned as high-end "Residence Class" series. Both are expected to launch for presales in 3Q2021 Case study 1: Guangzhou Panyu Nitrogen Fertilizer Plant — Guangzhou Aoyuan Henderson The Residence Class Signed official cooperation agreement in Jan 2017; introduced Henderson Land into joint development in Apr 2018; won the bid in public land auction together with Henderson Land in Sep 2020 and entered secondary development phase Location: in Xinzao Town, Panyu, Guangzhou; close to Guangzhou Higher Education Mega Centre 恒 基 (CGI) (actual image) (actual image) • Total GFA: 300,000 sqm • Avg. land cost: RMB22,280 per sqm Est. ASP: RMB48,000 per sqm • Est. saleable resources: approx. RMB14.3bn Д 奥园恒基・学苑壹号 THE RESIDENCE CLASS • Est. GPM / NPM: 35% / 15% • Launch date: 3Q2021 SALES CENTER ASFC (CGI) (actual image) 요 37#38Accelerating conversion of urban redevelopment entering a profit-reaping period (cont.) Located in Xiangzhou, Zhuhai, Cuiwei Village is only a 5-minute drive away from Zhuhai Aoyuan Plaza, an old factory redevelopment project. Cuiwei Village boasts 700 years of history and is one of the oldest and largest urban villages in Zhuhai. 胴 In the redevelopment plan, Aoyuan has preserved some ancient structures, which not only inherits and protects the heritage of Cuiwei village but also incorporates tourism and commercial operation within the project, aligning interests of villagers, the government and the Company. Garnered "Plan/Concept Project Award" in "2020 GBA Urban Design Award", organized by the HKIUD and GBA Urban Designers Professional Association Case study 2: Zhuhai Xiangzhou Cuiwei Village Zhuhai Aoyuan The Residence Class ― Signed official cooperation agreement in Aug 2016; started conversion in phases 1H2021 and entered secondary development phase Location: in the heart of Xiangzhou, Zhuhai; close to Mingzhu Station of inter-city railway, the largest urban village in Zhuhai Total GFA: 1,290,000 sqm Avg. land cost: RMB18,660 per sqm Est. ASP: RMB44,000 per sqm Est. saleable resources: approx. RMB24.1bn Est. GPM / NPM: 35% / 15% Launch date: 3Q2021 T 奥园学苑壹号 THE RESIDENCE CLASS Minghu South Road 商品住宅 |回迁住宅 | 商品公寓 | 回迁公寓 |商业 回迁商业 回迁办公 学 幼儿园 历史文化建筑 Minghu South Road (actual image) (CGI) (actual image) (CGI) (CGI) (CGI) 38#39• • Mega URP projects contribute quality saleable resources of over RMB10bn each DA In addition to the two major "The Residence Class" projects in Guangzhou and Zhuhai, multiple urban redevelopment projects in GBA are worth over RMB10bn of saleable resources and will be gradually converted into landbank, continuing to provide quality saleable resources and profits Guangzhou Liwan Donglong Saleable resources: RMB40.2bn Location: south of Guanggang New City, west of Zhujiang River, north of GZ Int'l Medicine Port Est. saleable GFA: approx. 770,000 sqm • Status: zoning proposal submitted Guangzhou Huangpu Wang Village Saleable resources: RMB12.7bn Location: north of Huangpu, south of Sino-Singapore Knowledge City Est. saleable GFA: approx. 380,000 sqm Status: land use documentation approval Guangzhou Huangpu Xintian Village Saleable resources: RMB26.1bn Location: in Xinlong town, Huangpu, and south of Sino- Singapore Knowledge City Est. saleable GFA: approx. 650,000 sqm . Status: contract-signing and demolition Guangzhou Huangpu Wenchong Village Saleable resources: RMB50.6bn Location: close to Wenchong and Shuanggang metro stations, south of Guangyuan Express Road • Est. saleable GFA: approx. 2,510,000 sqm Status: primary data verification . Guangzhou Zengcheng Henglang Village Saleable resources: RMB22.9bn Location: close to Zhucun Station of metro line 21, next to GZ Education City • Est. saleable GFA: . approx. 920,000 sqm Status: demolition negotiation stage Shenzhen Longgang Shilongkeng Saleable resources: RMB17.2bn Shenzhen Longgang Dapu Saleable resources: RMB16.9bn ΠΩ Dongguan Lingtou Unit 1 Saleable resources: RMB10.2bn Dongguan Dongtaihu Saleable resources: RMB17.7bn Foshan Chancheng Shen Village Saleable resources: RMB18.3bn • Location: in Longgang, Shenzhen, mere 5km from Location: in express enclosed area 500m from Longdongcun Station of metro line 16 • Luohu, Shenzhen • Est. saleable GFA: Est. saleable GFA: approx. 380,000 sqm approx. 270,000 sqm • • Status: implementation plan Status: project proposal approved approx. 430,000 sqm • . Status: unit delineation plan Location: in southern Qiaotou Town, along the Dongguan bay area axis and economic corridor Est. saleable GFA: • Location: in eastern center of Qiaotou town, GZ-SZ Science & Tech Innovation Corridor • Est. saleable GFA: approx. 870,000 sqm Status: early-stage service provider • Location: six villages in Eastern Shen Village, Chancheng, Foshan • Est. saleable GFA: approx. 570,000 sqm Status: primary data verification (All are CGls) 39#406. Appendix m 魚魚魚店 Yingde Aoyuan Xinhua Town (actual image)#41Structure of listed platforms under Aoyuan Group On the back of the flagship listed platform China Aoyuan (3883.HK), two listed platforms under Aoyuan Group, Aoyuan Healthy Life (3662.HK) and Aoyuan Beauty Valley (000615.SZ) have been established. Aoyuan Group is to synergistically leverage the competitive edges of all three listed platforms and strengthen its capital market influence (As of 30 Jun 2021) GUO Zi Wen, GUO Zi Ning *Deemed interests Approx. 55.3% Public Approx. 44.7% Shareholding Structure (China Aoyuan) SH/SZ-HK Stock Connect 5% Retail Investors 16% Institutional Investors 24% GUO Zi Wen, GUO Zi Ning 55% Aoyuan building a healthy lifestyle HKEx Stock Code: 3883 Chairman: GUO Zi Wen Approx. 54.6% Approx. 30.0% *Issued shares with voting rights Top 50 Institutional Investors Profile (China Aoyuan) Index Fund 9% Insurance Fund & Pension Fund 2% Aoyuan Healthy HKEx Stock Code: 3662 Provides property management services, commercial operational services and value-added services including general health and wellness in Mainland China Chairman: GUO Zi Ning Aoyuan Beauty Stock Code: 000615.SZ All-in-one solutions provider of the technology, materials and services of beauty & health industry Chairman: MA Jun Sovereign Fund 13% Hedge Fund 17% Long-only Fund 38% SH/SZ-HK Stock Connect (Incl. Public & Private Fund) 21% DA Source: HKEX, Computershare, Nasdaq 41#42Effective Board of Directors with high standards of corporate governance The Board of Directors is committed to upholding high standards of corporate governance and transparency, so as to ensure that Aoyuan can maintain resilience and outperform in complex environments while achieving sustainable and high-quality development A GUO Zi Wen Executive Director, Chairman, Group Founder Board of Directors GUO Zi Ning Executive Director, Vice Chairman, CEO CHEN Zhi Bin Executive Director, MA Jun Executive Director, Jacky CHAN Co-President Co-President Executive Director, Senior Vice President CHEUNG Kwok Keung Independent Non- executive Director ZHANG Jun Non-executive Director TSUI King Fai Independent Non- executive Director LEE Kang Bor Independent Non- executive Director Audit Committee, Remuneration Committee, Nomination Committee Fortune China 500 2021-170th place* *(2017: 485th; 2018: 382nd; 2019: 279th; 2020: 204th) Fortune China Top 50 Board of Directors 2019 财富 FORTUNE.com 2019年 *500* 中国最佳董事会50强 The Asset Corporate Awards 2020 - Gold (ESG) CORPORAT TE AWARDS ESG THE Asset S2020* MSCI upgraded Aoyuan's ESG rating to "BBB" CHINA AOYUAN GROUP LIMITED (3883) MSCI ESG RATINGS BBB Forbes 2021 Global 2000 849th place** Forbes Asia 2018 Fab 50 ForbesAsia2018 Forbes 2021 GLOBAL 2000 WORLD'S LARGEST PUBLIC COMPANIES FAB 50 From Forbes. ©2021 Forbes. All rights reserved. Used under license. ** The list selects the world's largest, most powerful and valuable listed companies based on a composite score of revenue, profit, total assets and market capitalization. A total of 395 enterprises from China (the Mainland, Hong Kong, Taiwan inclusive) are selected. In 2020, Aoyuan ranked 1152nd 42#43Stable and generous dividend payout Forging ahead with investors towards shared success Aoyuan maintains a stable and generous dividend policy with timely shareholding increase by Chairman and management and share buybacks by the Company, forging ahead with investors towards shared success. Since IPO in 2007, the Company has given out an accumulated dividend payment of HK$8.87bn (accumulated dividend per share of HK$3.3) while share purchases by major shareholders and management and share buybacks by the Company have totalled HK$1.03bn. Stable and generous dividend policy (RMB cent per share) 110 100 Continued share purchases by management and share buybacks by Aoyuan 2013 46% 41% 40% 2014 90 60 90 36% 35% 35% 30% 30% 80 70 60 60 55.0 Share purchases by Chairman + management Share purchases by Chairman + management 77.0 2015 Share purchases by Chairman 11.0 2016 Share buybacks by Company 50 60 2017 Share purchases by Chairman 40 40 36.0 66.0 30 30 2018 25.0 55.0 Share purchases by Chairman + Share buybacks by Company 20 20 15.0 10.6 36.0 2019 8.0 8.7 5.3 25.0 10 10 1.8 8.0 8.7 8.8 9.7 0 2020 2013 2014 2015 2016 2017 2018 2019 2020 (1) Ordinary dividend Special dividend Payout ratio 2021 Note: (1) Payout ratio = Total dividend / Net profit attributable to shareholders (2) No. of issued shares as of 30 Jun 2021: 2,695,883,354 shares Total amount Share purchases by Chairman Share purchases by Chairman + management Share purchases by Chairman + Share buybacks by Company Approx. HK$1.03bn 43#447. Investor Relations 奥园2 构筑健康生活 香港联交所上市编号:3883 Yu AOYUAN 中国奥园 25周年 25 WILCHINA AOYUAN 1296-202110 FOR LOVE رعان سالب 25th anniversary of Aoyuan - Run For Love (Guangzhou)#45Date Jan Barclays China Credit Virtual Corporate Day Jan CGS-CIMB Property Day Jan UBS Greater China Conference 2021 Mar Professional IR management Committed to the highest standard of investor relations management, Aoyuan strives to maintain a long-term interactive relationship with investors as well as a high-level corporate transparency and corporate governance Garnered prestigious IR awards and recognition from Institutional Investors, The Asset, IR Magazine etc. Frequent and two-way communication with investors Organized and participated in a total of 208 investor relations activities in 1H2021, including 96 telephone & video conferences, 87 management meetings, 2 investor briefings and press conferences, 23 investor conferences, investor roadshows and site visits Global Fixed Income Executive Team Investor relations calendar 1H2021 Institutional Investor Conference/ Presentation City/Format Virtual Virtual Virtual ✓ Met and communicated with 782 China Aoyuan 2020 Annual Results Investor Presentation Mar China Aoyuan AR2020 Post Results Non-deal Roadshow Apr China Aoyuan AR2020 Post Results Non-deal Roadshow May BofA Securities APAC Financial & RE Equity & Credit Conference GZ, HK BEST INVESTOR RELATIONS-HIGH YIELD Virtual Virtual tt Place Real Estate & Constructio Ching Gr Virtual institutional investors from 473 investment institutions to raise investor's awareness of latest development in business Jun Haitong International Property Management & Property Corporate Day Virtual Jun Jun performance, operating conditions and development strategies, to learn capital Jun Deutsche Bank 25th Annual European Leveraged Finance Conference CGS-CIMB HK/China Property & Property Management Conference HSBC 5th Annual Asia Credit Conference Virtual Virtual Virtual RESEARCH BENCHMARK 20 Asset CORPOR ESG AWAR Virtual market views and provide timely feedback to top management Jun Citi Asia Pacific Property Conference 2021 Jun Jefferies China Finance & Property Corporate Access Days 2021 Virtual CHINA AOYUAN GROUP BEST INVESTOR RELATIONS TEAM THE ASSET ESG CORPORATE AWARDS 2020 Investor relations activities in 1H2021 Investor briefing & press conference 2 times Investment institutions Investment institutions by region by investor type Dy APAC (excl. Others 1% Investor conference roadshow & site visit 23 times Management Meeting 87 times Tele/video conference 96 times Mainland China & HK), 11% Europe 16% Mainland China & Hong Kong America 17% 55% Equity 39% Bond 61% IR magazine IR Magazine Awards Greater China 2020 IR Certificate for excellence in investor relations Awarded to China Aoyuan Group IR 45#46Key IR contacts Ben Chen Executive Director, Co-president and CFO Jacky Chan Executive Director & Senior Vice President David Leung Senior Finance Manager Guangzhou HQ HK Office E-mail Sam Leng Assistant to President & GM of Finance Centre Emma Qi GM of Corporate Finance & Investor Relations (86 20) 3868 6666 Aoyuan Tower, No.48, Wanhui Yi Road, Panyu, Guangzhou (852) 3622 2122 Unit 1901-02, 19/F, One Peking, No.1 Peking Road, T.S.T, Hong Kong [email protected] Heng Tam Senior Manager of Corporate Finance & Investor Relations Follow us on: Listco Key Updates: Aoyuan 3883.HK WeChat Official Account Daily Updates: HE Aoyuan Group WeChat Subscription Account DA 调 46#47Disclaimer This presentation was prepared by China Aoyuan Group Limited (the "Company") for reference only. This presentation may not be reproduced or redistributed to any persons without explicit authorization from the Company. The market information, market participant information, market prospect and the statistics contained in this presentation are generated from publicly available and private sources, the Company has not conducted independent verification on these information and will not give any representation or warranty (whether express or implied) as to the completeness or accuracy of all the information contained in this presentation and no reliance should be placed on, the fairness, accuracy, suitability or completeness on the information contained herein. The information contained in this presentation is provided on an "as is" and "as available" basis and has not been, and will not be, updated to reflect material developments which may occur after the date of the presentation. This presentation contains statements that reflect the Company's beliefs and expectations about the future. These forward- looking statements are based on current expectations, estimates and assumptions about the Company's operations and other factors and are subject to a number of significant risks, and uncertainties, including material adverse events, and other unforeseeable circumstances which are beyond the Company's control, and accordingly, actual results may be affected and differ materially from these forward-looking statements, no reliance should be placed on the forward-looking statements. The Company is under no obligation to update orrevise forward-looking statements and this presentation at any time after its release or to provide you with further information about the Company. None of the Company, its directors, senior management, employees, consultants or representatives or any other person shall have any liabilities (including but not limited to, arising from any fault, negligence, fraudulent misrepresentation, tort, or contract) or responsibilities for any loss or damage, directly or indirectly, arising from the use of or reliance upon any information contained in this presentation. The information contained in this presentation is for general information only and does not constitute an offer, solicitation, invitation or recommendation to subscribe for the purchases or sale of any securities, financial instruments or other products and does not constitute an inducement of any investment activities and nothing contained herein shall form the basis of any contract or commitment or to provide any investment service or investment advice. It is not a substitute for professional advice which takes account of your specific circumstances and nothing in this document constitutes legal, financial or tax advice DA 调 47