annual results presentation 2019 · revenue achieved rmb48.0 bn, +24% yoy gross profit achieved...

Annual Results Presentation 2019

March 2020

Disclaimer

This presentation may contain forward-looking statements. Any such forward-looking statements are based on a numberof assumptions about the operations of the Kaisa Group Holdings Limited (the “Company”) and factors beyond theCompany's control and are subject to significant risks and uncertainties, and accordingly, actual results may differmaterially from these forward-looking statements. The Company undertakes no obligation to update these forward-looking statements for events or circumstances that occur subsequent to such dates. The information in thispresentation should be considered in the context of the circumstances prevailing at the time of its presentation and hasnot been, and will not be, updated to reflect material developments which may occur after the date of this presentation.The slides forming part of this presentation have been prepared solely as a support for discussion about backgroundinformation about the Company. This presentation also contains information and statistics relating to the China andproperty development industry. The Company has derived such information and data from unofficial sources, withoutindependent verification. The Company cannot ensure that these sources have compiled such data and information onthe same basis or with the same degree of accuracy or completeness as are found in other industries. You should notplace undue reliance on statements in this presentation regarding the property development industry. No representationor warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy,completeness or correctness of any information or opinion contained herein. It should not be regarded by recipients as asubstitute for the exercise of their own judgment. Information and opinion contained in this presentation may be basedon or derived from the judgment and opinion of the management of the Company. Such information is not alwayscapable of verification or validation. None of the Company or financial adviser of the Company, or any of their respectivedirectors, officers, employees, agents or advisers shall be in any way responsible for the contents hereof, or shall beliable for any loss arising from use of the information contained in this presentation or otherwise arising in connectiontherewith. This presentation does not take into consideration the investment objectives, financial situation or particularneeds of any particular investor. It shall not to be construed as a solicitation or an offer or invitation to buy or sell anysecurities or related financial instruments. No part of it shall form the basis of or be relied upon in connection with anycontract or commitment whatsoever. This presentation may not be copied or otherwise reproduced. This presentationdoes not constitute an offer or invitation to purchase or subscribe for any securities or financial instruments or to provideany investment service or investment advice, and no part of it shall form the basis of or be relied upon in connection withany contract, commitment or investment decision in relation thereto.

This presentation does not constitute an offer to sell or the solicitation of an offer to buy any securities in the UnitedStates or any other jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration orqualification under the securities laws of any such jurisdiction.

This presentation shall not be reproduced or circulated.

© 2019 Kaisa Group Holdings Limited. All rights reserved.

2

Contents

3

1. Major Achievements in 2019 5

2. Operation Review 8

3. Development Strategies for 2020 15

4. Financial Performance 24

5. Appendix 33

1. Major Achievements in 2019

5

Operational and Competitive Advantages

✓ Contracted sales achieved RMB88.1 bn, +26% YoY, Ranked top 27th

in contracted sales, move up 10 spots¹

✓ Contracted GFA reached 4.64 mn sq. m., +21% YoY

✓ 38% contracted sales from URPs (Urban Renewal Projects)

✓ 61% contracted sales from the Greater Bay Area

✓ Land bank of 27 mn sq. m.

✓ Saleable resources of RMB530 bn, of which 66% in the Greater Bay Area,

33% in Shenzhen

✓ 80% of GFA in Tier 1 & major Tier 2 cities

✓ 51% of GFA in the Greater Bay Area

✓ Acquired first piece of residential site in Tuen Mun, Hong Kong in early

2020

¹CRIC Sales League Table-Attributable Contracted Sales Ranking

²Not yet included in the land bank, plot ratio not yet calculated

✓ Site area² of URP pipeline increased 33% YoY to 40 mn sq. m., of which

Shenzhen and Guangzhou account for approx. 27% and 36% respectively

✓ Secured 19 new projects, adding the pipeline to 147 projects

✓ Converted 8 URPs in Shenzhen, Shanghai and Huizhou, with total saleable

resources of RMB35 bn

Strong Growth

in Contracted

Sales

High Quality

Land Bank

RMB2.5

Trillion Worth

URP Pipeline

✓ Revenue achieved RMB48.0 bn, +24% YoY

✓ Gross profit achieved RMB13.8 bn, +24% YoY

✓ GP margin maintained at a healthy level of 28.8%

✓ Net profit reached RMB4.2 bn, +26% YoY

✓ Profit attributable to owners of the Company soared to RMB4.6 bn,

+67% YoY

Profitability and Dividend Payout

6

✓ Proposed final dividend of 10 HK cents per share

✓ Declared interim dividend of 3 HK cents per share

✓ The dividend for the year was 13 HK cents per share (2018: 12 HK

cents per share)

Healthy

Profitability

Dividend

7

Repayment and Refinancing

✓ Net gearing ratio -92 ppts to 144% from 2018 year end

✓ Quick ratio remained at a healthy level of 1.1×✓ Cash on hand +61% to RMB37.0 bn from 2018 year end

✓ Total equity +53% to RMB55.7 bn from 2018 year end

✓ Onshore ABS issuance: obtain quota of over RMB11 bn, issued RMB2.6

bn through 5 transactions, with coupon rates ranging 5.4%-7.5% and

tenors ranging 1-4 years

✓ Offshore senior notes issuance: First time issuance of senior notes

under 144A exercise since 2014, being awarded as “Best high-yield

bond” by The Asset

✓ Offshore bank loans: Obtained HK$1.4 bn loan for first residential

project in Hong Kong

✓ Obtained offshore issuer rating: Moody’s B1/ S&P B/Fitch B, outlook Stable

✓ Yields of senior notes maturing in 1.5-2.5 years tightened by 1,000 bps,

recording good secondary performance

✓ Repurchased senior notes of US$736 mn through 4 transactions

✓ Finance through 2024 maturity wall, issued 5-year (and above) senior

notes via 2 transactions in early 2020 to extend maturity

✓ Issued US$400 mn 6.75% senior notes due 2021 to lower financing costs

Improving

Debt Servicing

Capability

Expanding

Funding

Channels

Proactive

Liability

Management

2. Operation Review

Residential85%

Commercial11%

Industrial4%

Established Presence in T1 & T2 Cities with High Quality Land Bank

◆Nearly 27 mn sq. m. land bank by GFA with attributable portion of 76%

◆80% located in T1 & major T2 cities

◆51% located in the Greater Bay Area

◆GFA of 6.7 mn sq. m. from URPs, accounting 25% of the total land bank

◆RMB220 bn, or 42% of saleable resources from URPsCentral China

GFA: 3.57 mn sq. m.

% of total by GFA: 13.3%

Pan Bohai Rim

GFA: 3.88 mn sq. m.


Western China

GFA: 3.46 mn sq. m.


Greater Bay Area

GFA: 13.58 mn sq. m.


(Shenzhen: 3.28 mn sq. m.,

% of total by GFA: 12.3%) Yangtze River Delta

GFA: 2.18 mn sq. m.


Hainan

GFA: 0.09 mn sq. m.


Land Bank by Development Status and Land Use

9

GFA

(’000 sq. m.)%

Expected Saleable

Resources

(RMB mn)

%

Greater Bay Area 13,582 50.8% 345,540 65.5%

Shenzhen 3,279 12.3% 173,787 32.9%

Guangzhou 1,434 5.4% 64,513 12.2%

Huizhou 5,234 19.5% 49,732 9.4%

Dongguan/Zhuhai/

Zhongshan/Foshan3,635 13.6% 57,508 10.9%

Yangtze River Delta 2,182 8.2% 43,640 8.3%

Central China 3,568 13.3% 60,659 11.5%

Western China 3,464 12.9% 34,637 6.6%

Pan Bohai Rim 3,883 14.5% 38,827 7.4%

Hainan 87 0.3% 4,172 0.8%

Total 26,766 100.0% 527,474 100.0%

Shenyang

Dalian

Qingdao

NanjingZhengzhou

Chengdu

Chongqing

Wuhan

Foshan

Changsha

Xuzhou

Shaoxing

Suzhou

Zhuhai

Sanya

Guangzhou

Huizhou

DongguanZhongshan Shenzhen

Completed and Unsold

7%

Held for FutureDevelopment

39%UnderDevelopment

52%

Completed, Sold, yet

Recognized2%

Awards Issued by

TOP1 Chinese Real Estate

Urban Renewal Brand in

2019

Enterprise Institute of Development Research

Center of the State Council, Real Estate institute of

Tsinghua University and China Index Academy

Urban Renewal Pipeline Supports Future Development

Annual Target Conversion of 800,000-1,000,000 sq. m. 10

1.Not yet included in the land bank, plot ratio not yet calculated

CitySite area1

(’000 sq. m.)%

No. of projects

in the pipelineType

Hong Kong 2 0.01% 1 old building

Shenzhen 10,600 26.58% 95old village, old factory, old residential

building, distressed assets

Guangzhou 14,511 36.39% 17 mainly old village

Zhongshan 8,612 21.60% 20 mainly old village

Huizhou 3,430 8.60% 4 mainly old village

Zhuhai, Dongguan,

Foshan, Jiangmen2,295 5.76% 9 mainly old village

Ningbo 423 1.06% 1 mainly old village

Total 39,873 100.00% 147

◆Site area¹ of URPs increased 33% to approx. 40 mn sq. m.

◆Secured 19 new projects, adding the pipeline to 147 projects

◆RMB2.5 trn worth expected saleable resources of URPs

◆99% of the UPRs in the Greater Bay Area, of which 27% in Shenzhen, 36% in Guangzhou, and 22% in Zhongshan

◆Converted the largest urban village redevelopment project in Shanghai, and eye on opportunities in the Yangtze

River Delta

◆Expanded into the urban renewal market in Hong Kong for the first time

Newly Acquired Land by Attributable Consideration

Shenzhen23%

Shanghai10%

Guangzhou 8%

T2&T3 Cities59%

Greater Bay Area53%

Yangtze River Delta13%

Central China22%

Western China

9%

Pan Bohai Rim3%

Newly Acquired Land by Attributable GFA

Land Acquisition through Diversified Channels

◆53% of the new projects acquired in the Greater Bay Area

◆41% of the new projects acquired in T1 cities

◆Land acquisition through bidding, M&A and urban renewal, of which 16% from urban renewal supply

◆Newly acquired attributable GFA of 4.12 mn sq. m. (attributable portion: 78%). The average land cost of newly acquired

land (attributable) is RMB6,609 per sq. m.

◆ Land Acquisition in 2019

11

Region CitySite Area

(sq. m.)

GFA

(sq. m.)

Attributable

GFA

(sq. m.)

Attributable

Consideration

(RMB mn)

Attributable

Land Cost

(RMB/sq. m.)

Greater Bay Area

Shenzhen, Guangzhou,

Dongguan, Zhuhai, Huizhou,

Foshan, Qingyuan

742,846 2,511,901 2,174,970 15,681 7,210

Yangtze River

Delta

Shanghai, Hangzhou, Suzhou,

Nanjing, Hefei428,990 748,273 554,839 6,381 11,501

Central ChinaChangsha, Luoyang, Wuhan,

Xiaogan669,275 1,487,082 892,980 2,718 3,044

Western China Chongqing 168,167 357,198 357,198 1,996 5,588

Pan Bohai Rim Dalian, Shenyang 37,208 188,158 137,693 439 3,188

Total 2,046,486 5,292,612 4,117,680 27,214 6,609

Bidding41%

M&A43%

Urban Renewal

16%

T1

Cities

41%

URPs Become Sales Driver

Conversion of URPs in 2019

12

No. Project Name Location TypeGFA

(‘000 sq. m.)

Saleable

area

(‘000 sq. m.)

Average price of the

surrounding projects

(RMB/sq. m.)

Estimated

saleable

resources

(RMB mn)

1 Shanghai Xuhang Town ProjectJiading District,

Shanghai

Residential &

Commercial214 210 40,000 8,400

2 Shenzhen Futian Border ProjectFutian District,

ShenzhenResidential 43 20 100,000 2,000

3 Shenzhen Futian Dongshan Project (P1¹)Futian District,


4 Shenzhen Bailingda ProjectBao’an District,


5 Shenzhen Tongda Huixuan ProjectLonghua District,

Shenzhen

Residential &

Commercial46 40 55,000 2,200

6 Shenzhen Guangming Sanjing ProjectGuangming District,

Shenzhen

Residential &

Commercial139 130 55,000 7,150

7 Shenzhen Jiayu (Antaiyuan Project)Longgang District,

Shenzhen

Residential &

Commercial67 65 53,000 3,445

8 Huizhou Kaisa Jade Garden Luobo county,

HuizhouResidential 78 77 10,000 770

Conversion of URPs in 2019 787 715 34,675

¹Phase 2 of the project with 82,000 sq. m. saleable area and RMB9.8 bn saleable resources is not yet included in land bank

4,352

10,610 11,907

15,347 26%

34% 33% 35%

0%

5%

10%

15%

20%

25%

30%

35%

40%

-

5,000

10,000

15,000

20,000

2016 2017 2018 2019

Increasing recognized sales from URPs

（RMB mn）

Recognized sales from URPs % of recognized sales from URPs

URPs Contributed over 1/3 Contracted Sales and Recognized Sales

7,574 12,124

25,853

33,486

25% 27%

37%38%

0%5%10%15%20%25%30%35%40%

05,000

10,00015,00020,00025,00030,00035,00040,000

2016 2017 2018 2019

Increasing contracted sales from URPs

（RMB mn）

Contracted sales from URPs % of contracted sales from URPs

13

Expansion of New businesses Deepens Synergy

Kaisa Culture &

Sports Group

Signed 7 new stadiums;

A total of 17 stadiums in

operation across 11 cities

Kaisa Technology

Innovation Group

Kick-off of Kaisa Airport Science

and Technology City in Xiaogan,

setting a benchmark for City-

Industry Integration in the

Greater Wuhan City

Kaisa Education

Group

Cooperate with US-based

Lawrence Woodmere Academy

to build the first LWA school in

Shenzhen

New Businesses Create Synergies with Property Business

14

Corporate Citizenship

Assist targeted poverty

alleviation

◆ Donated RMB120 mn in 2019 for targeted poverty alleviation

◆ Kaisa took root in Longmen, Huizhou for 1,000 days and nights, transforming poor villages into provincial new rural demonstration sites

◆ Awarded "Outstanding Contributor to Targeted Poverty Alleviation of China (Guangdong) Real Estate Industry" in 2019

◆ Awarded “2019 Best Corporate Social Responsibility Company”

Stand together to fight COVID-19

◆ Donated RMB10 mn to support the front lines of fighting the epidemic in Wuhan and Xiaogan

◆ Offered 15-30 days rent-free periods to shopping malls, stadium' merchants and long-term apartment tenants

◆ Donated 500 tons of fresh vegetables to Hubei

◆ Donated 5,000 protective suits to Wuhan

Actively Promoting Corporate Social Responsibility

3. Development Strategies for 2020

Strategies for Development in 2020

16

Steady Growth

Speed up property sales

Maintain momentum of business development

Structural Improvement

Accelerate urban redevelopment projects conversion

Optimize investment in strategically-focused regions

Deleveraging

Optimize capital structure and reduce financing cost

Accelerate cash collection

Seize New Opportunities

Capitalize on the advantages in Greater Bay Area and opportunities arisen from Shenzhen’s development into the Pilot Demonstration Area

The trinity of property, urban renewal and industries as growth drivers

Resumption of Work in Sales Centers and Construction Sites

17

Sales Centers

◆92% of sales centers resumed operations

◆Launched “Kaisa-your dream house”, a proprietary online platform for direct sales

◆Launch of innovative marketing campaign “Spring Sales 2020"

Construction Sites

◆92% of construction sites resumed work

◆Materials and plans for epidemic prevention and work resumption were put into place

Implemented Epidemic Prevention Guidelines to Ensure the Safety of

Customers and Employees

Planned Saleable Resources in 2020

Saleable Resources in 2020 by City Saleable Area in 2020 by City

Saleable Resources in 2020 by Region Saleable Area in 2020 by Region

55% Saleable Resources from the Greater Bay Area18

Saleable Resources in 2020: RMB180 bn Saleable Area in 2020: 9.7 mn sq. m.

Tier 137%

Tier 252%

Tier 311%

Greater Bay Area55%


Central China9%

Western China6%

Pan Bohai Rim5%

Hainan4%

Greater Bay Area38%

Yangtze River Delta

25%

Central China11%

Western China12%

Pan Bohai Rim11%

Hainan3%

Tier 120%

Tier 255%

Tier 320%

Expansion into Overseas Property Market

◆ Focus on land parcels and properties in prime locations and districts with development potential

◆ Diversified land acquisition channels; open to cooperation

◆ Capitalize on the advantage of urban redevelopment in the Greater Bay Area and the geographical synergy

◆ Hedge against foreign currency exposures using sales from offshore projects for asset liability management

19

Residential project at Castle Peak Bay, Tuen Mun

Location

• Castle Peak Road - Castle Peak Bay, Area 48,

Tuen Mun, New Territories, Hong Kong

• Adjacent to Hong Kong Golden Coast (within

2-min walk) and Harrow International School

• 20-min drive to the Shenzhen Bay Port; 30-

min drive to Central

• Only 15-min drive to the Hong Kong

International Airport and Hong Kong-Zhuhai-

Macao Bridge after the opening of the Tuen

Mun–Chek Lap Kok Link

Way of

Acquisition• Public bidding

Planned Use• Standard fitting out residences with sea view

for every unit

Maximum GFA

(Sq. ft.)• 583,000

Land Cost

(HK$/Sq. ft)• 6,000

ASP of Nearby

Projects

(HK$/Sq. ft.)

• 18,000

Estimated

Saleable

Resources

(HK$ mn)

• 10,500

Hong Kong Sai Wan Project

Location

• Eastern Street, Sai Ying Pun, Hong

Kong Island

• 3-min walk to Sai Ying Pun metro

station A2 Exit

• 2km away from Hong Kong IFC

building, 5-min drive only

• School Net 11 with numerous of

prestigious schools, (ie King's

College Old Boys' Association

Primary School, St. Stephen's Girls'

Primary School)

Way of

Acquisition• Urban renewal

Planned Use • 1-2 bedrooms

Maximum GFA

(Sq. ft.)• 35,000

Land Cost

(HK$/Sq. ft.)• 15,000

ASP of Nearby

Projects

(HK$/Sq. ft.)

• 32,000

Estimated

Saleable

Resources

(HK$ mn)

• 830

20

Steady Conversion of URPs into Land Bank

URPs to be converted into land bank in 2020

Project Location TypeSaleable Area*

(’000 sq. m.)

ASP of Nearby

Projects

(RMB/sq. m.)

Expected Saleable

Resources

(RMB mn)

Hong Kong Sai Wan Project Hong Kong Island, Hong Kong Residential 2¹ 320,000 760

Shenzhen Nanmendun Project Longgang, Shenzhen Residential 230 55,000 12,650

Shenzhen Xiaxue Village Project Longgang, Shenzhen Residential 230 53,000 12,190

Shenzhen Sanshun

Pharmaceutical Factory ProjectLuohu, Shenzhen Industrial 30 55,000 1,650

Shenzhen Dapeng No.2 Industrial Zone Dapeng, Shenzhen Industrial 200 45,000 9,000

Shenzhen Shangxue Project Longgang, Shenzhen Industrial 180 54,000 9,720

Expected conversion in the short term 872 45,970

URPs to be converted into land bank in the short term (1-2 years)


(’000 sq. m.)

ASP of Nearby

Projects

(RMB/sq. m.)

Expected Saleable

Resources

(RMB mn)

Shenzhen Xinli Factory Project Longgang, Shenzhen Industrial 250 48,000 12,000

Shenzhen Jianda Factory Project Longgang, Shenzhen Industrial 530 45,000 23,850

Shenzhen Pinghu Hongzhuling Project Longgang, Shenzhen Residential 300 53,000 15,900

Shenzhen Pinghu Songyuan Village Project Longgang, Shenzhen Residential 60 48,000 2,880

Shenzhen Longhua Meiqi Industrial Project Longhua, Shenzhen Industrial 80 35,000 2,800

Shenzhen Guangming Shutianpu Reserved

Land ProjectGuangming, Shenzhen Residential 29 65,000 1,885

Expected conversion in the short term 1,249 59,315

¹approx. 26,000 sq. ft.

*Subject to government’s final approval and demolition & compensation arrangement

21

Steady Conversion of URPs into Land Bank (Con’t)


(’000 sq. m.)

ASP of Nearby

Projects

(RMB/sq. m.)

Expected

Saleable

Resources

(RMB mn)

Shenzhen Xiangjiaotang Project Longgang, Shenzhen Residential 580 55,000 31,900

Shenzhen Banxuegang 08 Project Longgang, Shenzhen Residential 1,100 55,000 60,500

Shenzhen Makengshan Project Longgang, Shenzhen Residential 70 55,000 3,850

Shenzhen Henggang Anliang Project Longgang, Shenzhen Residential 1,050 50,000 52,500

Shenzhen Bantian 35 Wan Project Longgang, Shenzhen Residential 60 55,000 3,300

Shenzhen Xixiang Project Bao’an, Shenzhen Residential 600 65,000 39,000

Shenzhen Guangming Central Area Guangming, Shenzhen Residential 740 55,000 40,700

Shenzhen Guanlan Project Longhua, Shenzhen Residential 350 50,000 17,500

Shenzhen Yangmei Village Project Longgang, Shenzhen Residential 105 58,000 6,090

Shenzhen Banxuegang 04 Project Longgang, Shenzhen Residential 620 44,000 27,280

Shenzhen Bao’an Shanghe Village Project Bao’an, Shenzhen Residential 77 70,000 5,390

Shenzhen Dapeng Tuyang Project Dapeng, Shenzhen Residential 248 39,000 9,672

Shenzhen Guangming Songming Machinery

Factory ProjectBao’an, Shenzhen Industrial 176 24,000 4,224

Shenzhen Dapeng Wangmu

Zhongshanli ProjectDapeng, Shenzhen Residential 124 45000 5,580

Shenzhen Yantian Shafu Immigration Point

ProjectYantian, Shenzhen Residential 22 66,000 1,452

Guangzhou Shixi Village Project Haizhu, Guangzhou Residential 900 53,000 47,700

Guangzhou Lianbian Village Project Baiyun, Guangzhou Residential 1,000 52,000 52,000

Guangzhou Yagang Village Project Baiyun, Guangzhou Residential 680 52,000 35,360

Dongguan Qishi Town Project Qishi, Dongguan Residential 1,266 19,000 24,054

Expected conversion in the mid-term 9,768 468,052

UPRs to be converted into land bank in mid-term (3-5 years)

*Subject to government’s final approval and demolition & compensation arrangement

Steady Conversion of URPs into Land Bank (Con’t)

22

URPs to be converted into land bank in the long term (Over 5 years)

Project LocationSite Area

(’000 sq. m.)

Greater Bay Area

Shenzhen All Administrative Districts 4,750

Guangzhou Haizhu, Baiyun, Zengcheng, Panyu 10,700

Zhongshan Shaxi, Dachong, Shiqi, Henglan 8,600

Huizhou Huicheng 3,430

Zhuhai Doumen 940

Dongguan Changping 850

Foshan Lishui 250

Yangtze River Delta

Ningbo Jiangbei 423

Expected conversion in the long term 29,943

Stringent Control of Indebtedness

23

◆Operation:

✓ Reduce capex by joint development

✓ Prudent land acquisition

✓ Expedite cash collection

◆Financing:

✓ Expand financing channels, lower

funding cost

✓ Offshore dollar bond market:

swapping high cost capital for low

cost ones and extend maturity

✓ Proactive debt management

Net Gearing to Come Down Further in 2020

300%

258%236%

191%

144%

50%

100%

150%

200%

250%

300%

350%

FY2017 1H2018 FY2018 1H2019 FY2019

Decreasing Net Gearing

4. Financial Performance

31,206 36,081

43,849

FY2017 FY2018 FY2019

Strong Growth in Contracted Sales

Contracted Sales (RMB mn) Contracted GFA ('000 sq. m.)

Recognized Sales (RMB mn) Recognized GFA ('000 sq. m.)

Contracted ASP (RMB/sq. m.）

Recognized ASP (RMB/sq. m.)

Strong Growth in Contracted Sales and Recognized Sales

25

44,714

70,059

88,120

FY2017 FY2018 FY2019

2,786

3,837

4,642

FY2017 FY2018 FY2019

16,048

18,261

18,983

FY2017 FY2018 FY2019

2,241 2,097

2,548

FY2017 FY2018 FY2019

13,923

17,206 17,209

FY2017 FY2018 FY2019

Contracted Sales

Contracted Sales in 2018 by Region

~ 40% Contracted Sales from Tier 1 Cities

~ 60% Contracted Sales from the Greater Bay Area

Contracted Sales in 2018: RMB70,059 mnContracted Sales in 2019: RMB88,120 mn

26

Contracted Sales in 2019 by Region

Contracted Sales in 2018 by CityContracted Sales in 2019 by City

Greater Bay Area59%


Central China12%

Western China8%

Pan Bohai Rim10%

Greater Bay Area61%


Central China10%

Western China7%

Pan Bohai Rim13%

Tier 148%

Tier 249%

Tier 33%

Tier 143%

Tier 247%

Tier 310%

Recognized Sales

~50% Recognized Sales from Tier 1 Cities

~55% Recognized Sales from the Greater Bay Area

Recognized Sales in 2019: RMB43,849 mn Recognized Sales in 2018: RMB36,081 mn

27

Recognized Sales in 2018 by RegionRecognized Sales in 2019 by Region

Recognized Sales in 2018 by CityRecognized Sales in 2019 by City

Greater Bay Area52%


Central China3%

Western China5%

Pan Bohai Rim17%

Tier 152%Tier 2

33%

Tier 315%

Greater Bay Area54%


Central China11%

Western China8%

Pan Bohai Rim7%

Tier 149%

Tier 2 45%

Tier 36%

1,412

4,190 4,303

FY2017 FY2018 FY2019

1.2x

1.7x1.6x

FY2017 FY2018 FY2019

8,934

11,129

13,830

FY2017 FY2018 FY2019

32,779 38,705

48,022

FY2017 FY2018 FY2019

28

213229

271

FY2017 FY2018 FY2019

9.1x

5.7x4.8x

FY2017 FY2018 FY2019

Financial Highlights in 2019

Strong Growth Solid Profitability Stable Credit

Total Assets (RMB bn) Core Net Profit Attributable to Owners of the

Company(2) (RMB mn)Net Debt/EBITDA(3)

Revenue (RMB mn) Gross Profit (RMB mn) Interest Coverage Ratio(1)

(1) Interest Coverage Ratio = EBITDA / Interest Expense;

(2) Core Net Profit = Net profit excluding net gain on repurchases of senior notes, net fair value gain of financial assets at fair value through profit or loss, net exchange losses, loss on disposal of

investment properties, fair value gain of investment properties and fair value loss of financial derivatives, and net of respective deferred tax

(3) Net Debt / EBITDA = (Short-term Borrowings + Long-term borrowings – Restricted Cash – Short term Bank Deposits – Long-term Bank Deposits – Cash and Cash Equivalents ) / EBITDA

Strong Growth, Solid Profitability and Stable Credit

Financial Highlights in 2019

FY2019 FY2018 % Change

Total assets 271 229 +18%

Total equity 56 36 +53%

Total borrowings 117 109 +8%

Net borrowings 80 86 -7%

Net gearing 144% 236% -92 ppts

Interest coverage

ratio²1.6X 1.7X -0.1X

Net debt/EBITDA³ 4.8X 5.7X -0.9X

Cash and bank

deposits37 23 +61%

Quick ratio4 1.1X 1.4X -0.3X

FY2019 FY2018 % Change

Revenue 48,022 38,705 +24%

Recognized revenue from

property sales

43,849 36,081 +22%

Gross profit 13,830 11,129 +24%

Gross profit margin 28.8% 28.8% -

EBITDA¹ 16,726 15,114 +11%

Profit attributable to

owners of the company4,594 2,750 +67%

Core net profit attributable

to owners of the company4,303 4,190 +3%

29

P&L and Profitability (RMB mn) Balance Sheet and Credit Metrics (RMB bn)

◼ Strong Growth Momentum

◼ Healthy Profit Margin

◼ Scale Expansion

◼ Cash is King

1) EBITDA = Profit or loss for the period before changes in fair value of investment properties, changes in fair value of financial derivatives, net fair value change on financial assets at

FVTPL, waiver of other payables, net gain on repurchase of senior notes, net finance cost (excluding net exchange gains/losses), net exchange gains/losses, impairment loss on

interest in an associate, write-down of completed properties held for sale and properties under development, impairment loss on goodwill, written off of intangible assets, loss on

disposal of investment properties

2) Interest Coverage Ratio = EBITDA / Interest Expense

3) Net debt/EBITDA = (Short-term Borrowings + Long-term Borrowings - Restricted Cash - Short-term Bank Deposits - Long-term Bank Deposits - Cash and Cash Equivalents) / EBITDA

4) Quick Ratio = (Restricted Cash + Short-term Bank Deposits + Cash and Cash Equivalents) / Short-term Borrowings

Diversified Financing Channel

30

Credit Rating

◆ Offshore issuer credit rating: Moody’s - B1; S&P - B; Fitch - B, Outlook - Stable

◆ Onshore issuer credit rating: China Chengxin Securities Rating (CCX) - AA+

Diversified Financing Channel

◆ Obtained ABS quota of RMB11 bn, issued RMB2.6 bn

(RMB mn) Quota Issued Size Coupon rate

Supply Chain Finance 5,000 550 6.8%

Long-term Rental Apartments 3,000 230 7.5%

Mortgage Balloon Payments 1,340 1,340 7%-7.5%

Shipping Business 480 480 5.4%-5.6%

Others 1,250 - -

Total 11,070 2,600 -

◆ Offshore dollar bond issuance: first issuance of senior notes under US securities law 144A

exercise since 2014, awarded “Best high-yield bond 2019” by The Asset

◆ Offshore project finance: first Hong Kong residential project in Tuen Mun obtained bank

financing of HK$1.4 bn

Debt Management

31

◆ Financing cost reduction: the yields of senor notes matured in 1.5-2.5 years tightened by 1,000 bps

◆ Notes buyback: repurchased 1-2 year tenor paper with aggregate principal amount of US$736 mn,

relieve the pressure of short-term debt repayment

◆ Maturity extension: issued 2 tranches of 5 year and above notes in early 2020, financing through

the maturity wall of 2024

2 Jan 2019

2 Jan 2020

Remaining Tenor (Years)

YT

M (

%)

Kaisa Dollar Bonds Secondary Performance in 2019

Deals priced in 2019 are marked blue

Source: Bloomberg

308%300%

236%

144%

100%

150%

200%

250%

300%

350%

FY2016 FY2017 FY2018 FY2019

◆ Total Borrowing RMB117.2 bn

◆ Onshore: 49%

◆ Offshore: 51%

Debt Composition and Maturity Profile

32

15.6%

31.7% 30.4%

22.3%

27.2%22.2%

48.5%

2.0%

0%

10%

20%

30%

40%

50%

60%

Within 1 year Between 1-2years

Between 2-5years

Over 5 years

FY2018 FY2019

(RMB bn) < 1 Year1 - 2

Years

2 - 5

Years> 5 Years Total

Funding

Cost

Onshore 25.8 20.0 8.9 2.4 57.1 8.0%

Offshore 6.1 6.0 48.0 - 60.1 9.6%

Total 31.9 26.0 56.9 2.4 117.2 8.8%

Debt Composition

Net Gearing

Debt Maturity Profile

Onshore bank borrowings, 33%

Onshore non-bank borrowings,

16%Offshore

senior notes, 49%

Offshore bank borrowings,

2%

5. Appendix

2019 Earnings

(RMB bn) FY2019 FY2018 %Change

Revenue 48.02 38.70 +24%

-Sales of properties 43.85 36.08 +22%

-Rental income 0.46 0.28 +64%

-Property management services 0.91 0.52 +77%

-Hotel and catering operations 0.28 0.25 +11%

-Cinema, department store and cultural center operations 0.66 0.49 +35%

-Water-way passenger and cargo transportation 0.87 0.81 +7%

-Others 0.99 0.28 +258%

Cost of sales 34.19 27.58 +24%

Gross profit 13.83 11.13 +24%

Gross profit margin 28.8% 28.8% -

Net profit 4.16 3.29 +26%

Net profit margin 8.7% 8.5% +0.2 ppts

Profit attributable to owners of the Company 4.59 2.75 +67%

Core net profit attributable to owners of the Company 4.30 4.19 +3%

34

Balance Sheet

(RMB bn) As of Dec 2019 As of Dec 2018 % Change

Total assets 270.9 229.0 +18%

Total liabilities 215.2 192.7 +12%

Net current asset 66.8 66.7 +0.2%

Total equity 55.7 36.3 +53%

Cash and bank deposits 37.0 22.9 +61%

Quick ratio(1) 1.1X 1.3X -0.2X

Leverage ratio(2) 30% 38% -8 ppts

Net gearing ratio(3) 144% 236% -92 ppts

35

(1) Quick ratio equals to cash and bank balances, short-term bank deposits and restricted cash over short-term borrowings(2) Leverage ratio equals to net debt (total borrowings net of cash and bank balances, short-term bank deposits, long-term bank deposits and restricted cash ) over total assets(3) Net gearing ratio equals to net debt (total borrowings net of cash and bank balances, short-term bank deposits, long-term bank deposits and restricted cash ) over total equity

Land Acquisition in 2019

36

Time of

AcquisitionLocation

Attributable

Interest

Site Area

(sq. m.)

GFA

(sq. m.)

Attributable

GFA

(sq. m.)

Attributable

Consideration

(RMB mn)

Land UseWay of

Acquisition

1 Feb-2019 Suzhou, Jiangsu 100% 32,006 48,008 48,008 891 Residential Bidding

2 Feb-2019 Hangzhou, Zhejiang 50% 19,175 38,350 19,175 316 Residential Bidding

3 Apr-2019 Qingyuan, Guangdong 100% 343,749 1,183,327 1,183,327 4,661 Residential M&A

4 Apr-2019 Xiaogan, Hubei 70% 218,814 262,577 183,804 47 Industrial Bidding

5 Apr-2019 Dalian, Liaoning 100% 24,334 85,169 85,169 270 Residential M&A

6 Apr-2019 Nanjing, Jiangsu 100% 65,697 144,535 144,535 940 Residential M&A

7 Apr-2019 Nanjing, Jiangsu 51% 73,686 103,160 52,612 607 Residential Bidding

8 May-2019 Dongguan, Guangdong 51% 38,096 95,239 48,572 529 Residential Bidding

9 May-2019 Chongqing 100% 41,724 104,311 104,311 1,050 Residential Bidding

10 Jun-2019 Guangzhou, Guangdong 100% 47,626 94,960 94,960 1,485 Residential Bidding

11 Jun-2019 Foshan, Guangdong 100% 31,017 93,052 93,052 1,163 Residential Bidding

12 Jun-2019 Wuhan, Hubei 100% 56,900 142,252 142,252 538 Residential Bidding

13 Jun-2019 Shenzhen, Guangdong 70% 9,467 42,600 29,820 830 Residential Urban Renewal

14 Jun-2019 Shanghai 90% 126,923 213,515 192,164 2,790 Residential Urban Renewal

15 Jul-2019 Changsha, Hunan 46% 53,486 236,337 120,532 365 Residential & Commercial Bidding

16 Jul-2019 Guangzhou, Guangdong 100% 17,746 44,364 44,364 612 Residential Bidding

17 Jul-2019 Luoyang, Henan 16% 210,884 587,534 188,011 807 Residential M&A

18 Aug-2019 Shenzhen, Guangdong 18% 9,321 46,176 46,176 790 Residential & Commercial Urban Renewal

19 Aug-2019 Huizhou, Guangdong 18% 48,179 168,627 55,647 156 Residential Bidding

20 Aug-2019 Huizhou, Guangdong 55% 17,392 78,264 78,264 175 Residential Urban Renewal

21 Aug-2019 Zhuhai, Guangdong 100% 74,729 129,260 129,260 434 Residential Bidding

22 Aug-2019 Chongqing 100% 126,443 252,887 252,887 946 Residential M&A

23 Aug-2019 Shenyang, Liaoning 51% 12,874 102,989 52,524 169 Residential Bidding

24 Oct-2019 Wuhan, Hubei 31% 129,191 258,382 258,382 961 Residential Bidding

25 Oct-2019 Shenzhen, Guangdong 40% 35,239 150,820 120,656 2,223 Residential Urban Renewal

26 Nov-2019 Huizhou, Guangdong 28% 27,820 130,918 66,768 109 Residential Bidding

27 Nov-2019 Shenzhen, Guangdong 60% 28,842 138,820 83,292 1,666 Residential & Commercial Urban Renewal

28 Nov-2019 Shenzhen, Guangdong 100% 6,033 66,600 66,600 533 Residential & Commercial Urban Renewal

29 Dec-2019 Hefei, Anhui 49% 111,503 200,705 98,344 837 Residential Bidding

30 Dec-2019 Shenzhen, Guangdong 70% 7,590 48,875 34,212 315 Residential Urban Renewal

Total 2,046,486 5,292,612 4,117,680 27,214

37

Shenzhen Yantian Kaisa City Plaza

Location

• Yantian, Shenzhen

• Adjacent to Yantian Road

Station which is under

construction on Shenzhen

Metro Line No.8 (expected

to open in Jun 2020) and

close to Yantian Port; 30-

min drive from CBD of

Luohu

Type of URP • Old village to residence

GFA (sq. m.) • 690,000

ASP (RMB/sq. m.) • 49,000 (residence)

Awards

• The largest urban

redevelopment project in

Yantian

• Ranked TOP3 in

Shenzhen city by the

number of residential units

sold in 2019

• Ranked TOP23 by

property transaction value

in China

Strong Sales Performance of URPs

Shenzhen Kaisa Future City Shenzhen Pinghu Kaisa Plaza

Location

• Longgang, Shenzhen

• Adjacent to Longcheng

West Station which is under

construction on Shenzhen

Metro Line No.16 (expected

to open by 2023)

Type of URP • Old factory to residence

GFA

(sq. m.)• 280,000

ASP (RMB/sq. m.) • 49,000 (residence)

Awards

• Ranked 1st in Longgang,

Shenzhen and 2nd in

Shenzhen city by the

number of new residential

units sold in 1H2018

• Ranked 1st by the number of

residential units sold and 2nd

by property transaction

value in Shenzhen in Oct

2018

• Ranked 1st by the number of

commercial transactions in

2019 and 2nd by commercial

transaction area

Location

• Longgang, Shenzhen

• Adjacent to Pinghu Station

which is under construction

on Shenzhen Metro Line

No.10 (expected to open in

Jun 2020) and to a hub of

high-speed rail in Pinghu


GFA (sq. m.) • 480,000

ASP (RMB/sq. m.)• 44,000 (residence)

• 35,000 (apartment)

Awards

• Ranked 1st in Longgang,

Shenzhen in Dec 2018 in

terms of sales value and

units sold

• Ranked 3rd in Shenzhen

and 1st in Longgang,

Shenzhen in Dec 2019, in

terms of sales value and

units sold

1/3 Contracted Sales from Shenzhen URPs

38

Shenzhen Dongmen New World Zhuhai Lakeview Waldorf (Phase 2)

Location

• Shangsha street,

Wanzai, Xiangzhou

District, Zhuhai, close

to Zhuhai Wanchai

Border and Macau

• Comprehensive

ancillary facilities and

educational institutions

are nearby


GFA

(sq. m.)• 134,000

ASP(RMB/sq. m.) • 31,000 (residence)

Awards

• 80% sell through rate

since debut

• Sold out in four months

Strong Sale Performance of URPs (Con’t)

Location

• Dongmen CBD, Luohu,

Shenzhen

• Adjacent to Shaibu

Station on Shenzhen

Metro Line No. 3

Type of URP • Distressed assets

GFA

(sq. m.)• 51,000

ASP(RMB/sq. m.) • 66,000 (apartment)

Awards

• 2019 China Real Estate

Champion List

“Influential Property

Project of the Year”

Dongguan Le Grand Bleu

Location

• Enjoy the bonus of

the Nansha Qianhai

Free Trade Zone with

3km beautiful

coastline

Type of URP• Old village to

residence

GFA

(sq. m.)• 717,000

ASP(RMB/sq. m.)• 22,000 (high-rise)

• 30,000-40,000 (villa)

Awards

• 2019 The best

liveable residential

property in

Dongguan

High-margin URPs Recorded Strong Sales

Recently Converted URPs

39

Shanghai Xuhang Town Project

Location• Xuhang Town, Jiading

District, Shanghai


Site area (sq. m.) • 126,923

Saleable GFA

(sq. m.)• 210,000

Saleable Value

(RMB mn)• 8,400

Planned Use

• A residential project with

complementary commercial

facilities to be developed in 4

phases

Significance

• The Largest urban village


Shanghai

• Shanghai’s first urban

redevelopment project that

involved a civilian-owned

enterprise

• Kaisa’s first urban village


Shanghai

Guangzhou Xiaoping Village Project

Location

• Western Extension of Baiyun New City

in Guangzhou; adjacent to Xiaoping

Station on Guangzhou Metro Line

No.8 and to the Baiyun Railway

Station under construction which will

serve as a transportation hub

• Baiyun Mountain, a national-level 5A-

grade landscape, is nearby


Site area (sq. m.) • 179,000

Saleable GFA

(sq. m.)• 500,000

Saleable Value

(RMB mn)• 30,000

Planned Use

• The large-scale integrated project will

be developed in 3 phases and will

consist of high-end residential flats, a

star-rated hotel, an office building,

serviced apartment and a commercial

complex

Significance• Kaisa’s first urban village

redevelopment project in Guangzhou

Shenzhen Futian Border Project

Location

• At the intersection of

Honghua Road and

Xiangzhang Road in

Futian, Shenzhen

Type of URP• Old commercial &

residential

Site area (sq. m.) • 9,500

Saleable GFA

(sq. m.)• 20,000

Saleable Value

(RMB mn)• 2,000

Planned Use

• A residential project with

complementary

commercial facilities to

be developed in 1

phase

Significance

• Obtain a high-quality

project through the

acquisition of Shenzhen

Oceanus Group

URPs Presence in T1 Cities (Shanghai, Shenzhen and Guangzhou)

40

Recently Converted URPs (Con’t)

Shenzhen Guangming Sanjing

Project

Location

• Guangming Street,

Guangming District,

Shenzhen

• Adjacent to Guangming

Street Station on

Shenzhen Metro Line No.

6 (expected to open in

Jun 2020)


Site Area

(sq. m.)• 29,000

Saleable GFA

(sq. m.)• 130,000

Saleable Value

(RMB mn)• 7,150

Planned Use

• Residential and

commercial complex to

be developed in 1 phase

Significance

• Kaisa’s first residential

project in Guangming

District

Shenzhen Kaisa Yuebanshan

(Bailingda Project)

Location

• Hangcheng Street,

Bao’an District,

Shenzhen


Site Area

(sq. m.)• 35,000

Saleable GFA

(sq. m.)• 150,000

Saleable Value

(RMB mn)• 7,950

Planned Use

• High-rise residential and

commercial complex

building to be developed

in 1 phase

Significance

• Kaisa's first residential

project in Bao’an

District

Shenzhen Tongda Huixuan Project

Location

• Intersection of Jianhui

Road and Zhicheng Road,

Longhua District,

Shenzhen

• Adjacent to Qinghu

Station on Shenzhen

Metro Line No.4

Type of URP• Old factory to residential

and commercial

Site Area

(sq. m.)• 9,300

Saleable GFA

(sq. m.)• 40,000

Saleable Value

(RMB mn)• 2,200

Planned Use

• Residential, serviced

apartment and

commercial complex to

be developed in 1 phase

Significance• Kaisa's first URP in

Longhua District

Accelerate the Conversion Cycle of URPs (Old Factory)

41

Recently Converted URPs (Con’t)

Shenzhen Jiayu

Location

• Buji Street, Longgang, Shenzhen

• Adjacent to Buji Station on

Shenzhen Metro Line No.3 & 5 and

Shenzhen East Railway Station

Type of URP • Distressed assets

Site Area

(sq. m.)• 6,000

Saleable GFA

(sq. m.)• 65,000

Saleable Value

(RMB mn)• 3,445

Planned Use

• Residential, commercial and office

complex to be developed in 1

phase

Significance • Buji CBD Project

Shenzhen Dongshan Project (Phase I)

Location

• Binhe Avenue, Futian District, Shenzhen,

in proximity of Xinghe COCO Park

• Adjacent to COCO Park Station on

Shenzhen Metro Line No. 1 & 3

Type of URP • Old residence

Site Area

(sq. m.)• 7,600

Saleable GFA

(sq. m.)• 23,230

Saleable Value

(RMB mn)• 2,760

Planned Use

• High-end residence

• Saleable GFA of 82,000 sq. m. in phase 2

of the project to be included in the land

bank, with a Saleable Resources of

RMB9.8 bn

Significance• Kaisa’s first old residential project in

Futian Central District

Abundant and Diversified URPs

Low-cost URPs Ensure Healthy Profit Margins

42

Data source：Shenzhen Government website

3,700 5,600

56,000

67,000

42,000 42,800

15,230

URPs Shenzhen URPs Bao'an Longhua Guangming small plot Guangming big plot Pingshan

Average selling price of residential property in Shenzhen: ~ RMB50,000 per sq. m.

Shenzhen Residential Land Auction in June 2019

Land cost per saleable GFA (RMB/sq. m.)

4,5004,500

Construction cost of resettlement housing

Average land price of URPs

10,1008,200

(RMB/sq. m.)

ASP of Current URPs

Land Prices of URPs in Land Bank

(RMB/sq. m.)

GFA：6.7 mn sq. m.

Land Cost of Shenzhen URPs 10,100

Average Price of Shenzhen URPs

Bantian Kaisa City Plaza Residence： 53,000

Bantian Kaisa City Plaza Apartment： 40,000

Kaisa Future City Residence： 49,000

Kaisa Future City Apartment： 40,000

Yantian Kaisa City Plaza Residence： 49,000

Pinghu Kaisa City Plaza Residence： 44,000

Pinghu Kaisa City Plaza Apartment ： 35,000

Improving Transport Infrastructure in the Greater Bay Area

43

Greater Bay Area Centre

Greater Bay Area Subcentre

Major industries and

residential clusters

Industrial cluster

Zhaoqing

Dongguan

Shenzhen

Hong Kong

Macao

Zhuhai

Jiangmen Zhongshan

Western Shore of Pearl River

Delta: High-end equipment

manufacturing industry cluster

Eastern Shore of Pearl

River Delta: Electronic

Information Industry

Cluster

Guangzhou

Guangzhou: International Business

Center, Transportation and Logistics

Distribution Center in South China,

International Metropolis

Shenzhen: Science and

Technology Innovation

Center with International

Influence

Guangzhou-Shenzhen-Hong Kong High Speed Rail (in

operation / a 48-min journey / 14-min drive between Hong

Kong and Shenzhen)

Hong Kong-Zhuhai-Macao Bridge(in operation / a 30-min

journey)

Guangzhou–Shenzhen intercity railway (in operation / a

48-min journey

Humen Bridge (in operation)

Shenzhen–Zhongshan Bridge (expected to operate

in 2024 / a 30-min journey)

Nansha Bridge (In operation / Shorten distance between

Dongguan and Panyu by 10km, saving 30 mins)

◆A total track length of 273km is under construction and the total mileage of Shenzhen Metro will reach 580km by 2022

◆By 2035, Shenzhen is expected to have 33 metro lines with a total mileage of 1,335km, which is 4.7 times of the current

mileage. By then, the spatial density of Shenzhen metro will exceed that of Hong Kong, becoming one of the cities with the highest subway density in the world

Foshan Huizhou

Benefiting from Positive Housing Policies

44

Issued Time Documents Core Content Issued by

Mar 2020 “Measures on the response to COVID-19 to

support property developer to speed up

resumption of work and operation”

Propose to increase the supply of residential land;

Adopting the “report and sign” approach to shorten the online registry time

for commodity housing;

Introduce 9 measures for presale applications for commodity housing, such

as waiving the requirement to submit proof of the capital balance

Housing and Construction Bureau

of Shenzhen Municipality

Feb 2020 “Measures to Support Enterprises to Overcome

Difficulties in Response to the Epidemic”

Enterprises which are affected by the epidemic can apply for a reduction of

housing provident fund ratio to a minimum of 3% for a period of not more

than 12 months, or apply for deferred payment of the housing provident fund

for a period of not more than 12 months

Shenzhen Municipal People's

Government

Feb 2020 "Land Use Policies to Support the Development

of Enterprises in Response to the Epidemic"

Adjust the payment method and payment period of land price; extend the

fulfillment time of commencement and completion of construction and

commencement of operation; reduce the industrial land cost

Shanghai Planning and Natural

Resources Bureau

Feb 2020 “Measures of Shenzhen to Support Enterprises

to Overcome Difficulties amid COVID-19

Outbreak”

For industries that have been affected by the epidemic and companies that

have development prospects but have been temporarily affected by the

epidemic, financial institutions shall not demand early repayment or cut off or

delay in loans

Shenzhen Municipal People's

Government

Jan 2020 “Notice on Further Strengthening Financial

Support to Prevent and Control COVID-19

Infection”

Continue to increase support for SMEs and private enterprises and maintain

the growth rate of loans and effectively implement the requirements for the

reduction of comprehensive financing costs.

PBoC，MoF，CBRC，CSRC，SAFE

Dec 2019 National Housing and Urban-Rural Construction

Work Conference

Stabilizing land prices, home prices and expectations Ministry of Housing and Urban-

Rural Development

Sep 2019 “Guiding Opinions on Deepening the Reform and

Accelerating the Urban Renewal of "Three Olds"

to Promote High-quality Development”

With consents of 2/3 house owners of URP, government rulings and judicial

judgement can be in force

People’s Government of

Guangdong Province

Aug 2019 “Opinions on Supporting Shenzhen’s

Development into the Pilot Demonstration Area

of Socialism with Chinese Characteristics”

Grant Shenzhen a higher political and development status Central Committee of CPC, State

Council

Jul 2019 “Three-year Action Plan for Guangdong-Hong

Kong-Macao Greater Bay Area from 2018 to

2020”

Guangdong Province's three-year key tasks and division of responsibilities

for the development of Guangdong-Hong Kong-Macao Greater Bay Area

Guangdong Provincial Work Group

for Promoting the Development of

the Guangdong-Hong Kong-Macau

Greater Bay Area

Jul 2019 “Opinions on how to implement the “Outline

Development Plan for the Guangdong-Hong

Kong-Macao Greater Bay Area””

Benchmarking the construction goals of the Greater Bay Area by 2035, and

deploying key tasks of Guangdong Province in the next ten years

Central Committee of Guangdong

Province, State Council

Feb 2019 “Outline Development Plan for the Guangdong-

Hong Kong-Macao Greater Bay Area”

Build the Bay Area into an international first-class bay area Central Committee of CPC, State

Council

Growth in Property Sector Remains Steady

As of 31 December 2019Land Bank – GFA

(‘000 sq. m.)

URP Pipeline Site Area¹

(‘000 sq. m.)

Shenzhen 3,279 10,600

Futian Dongshan Project

福田东山项目

Kaisa Financial

Technology Center

佳兆业金融科技中心

Bantian Kaisa City Plaza

坂田佳兆业城市广场

Yantian Kaisa City Plaza

盐田佳兆业城市广场

Pinghu Kaisa Plaza

平湖佳兆业广场

Kaisa E Cube

佳兆业E立方

Kaisa Golden Bay International Park

佳兆业金沙湾国际乐园

Kaisa Future City

佳兆业未来城

Nan’ao Project

南澳项目

Kaisa Dongmen New World

佳兆业东门新世界

Nam TaI Inno Park

南太云创谷

Nam Tai Inno City

南太创之谷

Nanmendun Project

南门墩项目

Shangxue Project

上雪项目

Kaisa Yuebanshan

佳兆业樾伴山

North Station

深圳北站

沙头角口岸Shatoujiao

Checkpoint

盐田港Yantian Port

福田口岸Futian

Checkpoint

皇岗口岸Huanggang

Checkpoint

罗湖口岸Luohu Checkpoint

深圳湾Shenzhen Bay

Checkpoint

蛇口港Shekou Port

宝安机场Bao’an Airport

香港Hong Kong

前海Qianhai

坂田Bantian

Pinghu

平湖

Henggang

横岗

盐田区Yantian

District

坪山区Pingshan District

龙岗区Longgang District

光明区Guangming

District

宝安区Bao’an

District

龙华区Longhua

District

南山区Nanshan

District

福田区Futian District

罗湖区Luohu District

大鹏新区Dapeng New District

45

Futian Border Project

福田口岸项目

Xiaxue Project

下雪项目

Dapeng No.2 Industrial Zone

大鹏第二工业区

Nam Tai Technology Center

南太科技中心

Tongda Huixuan

通达汇轩Jiayu

佳寓

Sanjing Project

三井项目

URPs in pipeline (95)

Shenzhen projects in land bank (26)

Major transportation hubs in Shenzhen

1.not in land bank; plot ratio is not yet calculated

Abundant Premium Projects in Shenzhen

◆ 13 metro-accessible projects in Shenzhen, occupying prime locations

◆ Strategic locations imply great potential for value appreciation

Kaisa E Cube

(For Sale)

Kaisa Dongmen New

World

（For Sale）

Yantian Kaisa City

Plaza

(For Sale)

Bantian Kaisa City

Plaza

(For Sale)

Kaisa Future City

(For Sale)

Pinghu Kaisa Plaza

(For Sale)Niuhu

(expected to open in

end-2020)

Pinghu

(expected to open in June 2020) &

Pinghu Railway Station

Shai Bu

Dayun (existing) &

Longcheng Park

(expected to open in 2023)

Xuexiang & Gangtou


June 2020)

Science

Museum

Kaisa Financial

Technology Center

(Under Construction)

Yantian Road


May 2020)

Nam Tai Inno Park


Changzhen (expected to open in 2020) &

Guangmingcheng Railway (existing)

Planning of railway transit in Shenzhen

Metro-accessible Projects in Shenzhen

46

Coco Park

Futian Dongshan

Project


Tongda Huixuan

Project (Under

Construction)

Qing Hu

Guangming Sanjing

Project (To be built)

Guangming Street

(expected to open in May

2020)

Buji & Shenzhen East

Station

Futian Border Project


Fubao

(expected to open in Oct 2020)

Jiayu

(To be built)

Proven Track Record of URPs Conversion◆ Since 2008, the company has converted GFA of over 1 mn sq. m. on average

◆ Successfully converted approx. 13 mn sq. m. urban renewal projects since established

Year Projects Locations Type

GFA

converted

(‘000 sq. m.)

No. of URPs

converted

1999 Shenzhen Woodland Height Longgang, Shenzhen Residential 580 1

2001 Shenzhen Mocha Town Longgang, Shenzhen Residential 735 1

2004 Shenzhen Kaisa Center Futian, Shenzhen Residential 98 1

2005 Guangzhou Kaisa Plaza Tianhe, Guangzhou Commercial 233 1

2006 Shenzhen Jincui Garden Luohu, Shenzhen Residential 106 1

2007Zhuhai Lake view Waldorf Garden (Phase 1-2) Xiangzhou, Zhuhai Residential

655 2Shenzhen Kaisa Financial Center Futian, Shenzhen Commercial

2008 Huizhou Kaisa Riverbank New Town Boluo county, Huizhou Residential 4,326 1

2010Shenzhen Metro City Longgang, Shenzhen Residential

1,209 2Shenzhen Kaisa City Plaza Longgang, Shenzhen Residential

2011 Dongguan Le Grand Bleu Shatian town, Dongguan Residential 717 1

2012 Shenzhen Marriott Hotel Golden Bay Dapeng, Shenzhen Commercial 78 1

2013 Shenzhen Dapeng Kaisa Peninsula Resort Dapeng, Shenzhen Commercial 186 1

2014 Shenzhen Yantian Kaisa City Plaza Yantian, Shenzhen Residential 694 1

2015Dongguan Riverside Woods Palace Fenggang town, Dongguan Residential

358 2Dongguan Riverside Hillview Palace Fenggang town, Dongguan Residential

2016Shenzhen Pinghu Kaisa Plaza Longgang, Shenzhen Residential

754 2Shenzhen Kaisa Future City Longgang, Shenzhen Residential

2017

Shenzhen Inno Park Guangming, Shenzhen Industrial

697 3Shenzhen Nam Tai Inno City Bao'an, Shenzhen Industrial

Shenzhen Nam Tai Inno Park Bao'an, Shenzhen Industrial

2018

Guangzhou Xiaoping Village Baiyun, Guangzhou Residential

595 3Shenzhen Dongmendao Project Luohu, Shenzhen Residential & Commercial

Zhuhai Lake View Waldorf Garden (Phase 3) Xiangzhou, Zhuhai Residential

2019

Shanghai Xuhang Town Project Jiading, Shanghai Residential

787 8

Shenzhen Futian Border Project Futian, Shenzhen Residential

Shenzhen Tongda Huixuan Project Longhua, Shenzhen Residential & Commercial

Shenzhen Guangming Sanjing Project Guangming, Shenzhen Residential & Commercial

Shenzhen Kaisa Yuebanshan Bao’an, Shenzhen Residential

Shenzhen Jiayu Longgang, Shenzhen Residential & Commercial

Shenzhen Futian Dongshan Project (Phase I) Futian, Shenzhen Residential

Huizhou Kaisa Jade Garden Boluo County, Huizhou Residential

12,808 32

47

Shareholding Structure (As of 31 December 2019)

• Founder and chairman

• Over 20 years of industry experience

• Responsible for overall strategy, investment

planning and human resources strategy

Kwok FamilyFunde Sino Life

Insurance Co., Ltd.Other public investors

39.33%25.26% 35.41%

Sales of properties Rental income Property managementHotel and catering

operationsOthers

◼ Generate revenue from

sale of residential

properties, villas,

service apartments,

commercial and

integrated commercial

buildings etc,

◼ Accounting for 91.3%

of revenue in 2019

◼ Management and

operation of

commercial properties

to generate income

◼ Accounting for 1.0% of

revenue in 2019

◼ Provide property

management services


revenue in 2019

◼ Operation of five-star

hotels, boutique

business hotel chains,

and serviced

apartments


revenue in 2019

◼ Cultural & leisure,

shipping business,

health care and

technology to bring

synergy for future

property development


revenue in 2019

Property Related Businesses Contribute 94.8% of Total Revenue in 2019

48