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Investor Presentaiton

2H2021 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
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