2011 Annual Results Presentation

2011 Annual Results Presentation

Stock code: 1238.HK

2

Disclaimer

This presentation has been prepared by Powerlong Real Estate Holdings Limited (the

“Company”) for your reference only. The information contained in this presentation has not been

independently verified. The Company does not make any representation, warranty or

undertaking, whether express or implied, on and no reliance should be placed on, the fairness,

accuracy, suitability, completeness or correctness of the information or opinions contained

herein. Any summary does not purport to be complete and accurate. None of the Company or its

affiliates or their respective directors, employees or representatives will be liable for any loss

howsoever arising from any use of this presentation or its contents or otherwise arising in

connection with this presentation.

This presentation contains statements that constitute forward-looking statements. These

statements include descriptions regarding the intent, belief or current expectations of the

Company or its officers with respect to the Company and the relevant industry. Such forward-

looking statements are not guarantees of future performance which involves risks and

uncertainties, and actual results may differ from those in the forward-looking statements in

material respect as a result of various factors and assumptions (in particular the national

policies). The Company has no obligation and does not undertake to revise forward-looking

statements to reflect future events or circumstances.

Nothing in this presentation should form the basis of or be relied upon in connection with any

contract or commitment whatsoever.

Agenda

•Business Update

•2012 Outlook and Strategies

•Land Bank

•Financial Highlights

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4

•Business Update


•Land Bank

Agenda

> Revenue up 18.5% to approximately RMB 5.25 billion > Net profit up 11.5% to approximately RMB 3.55 billion > Malls in operation increased from 5 to 11 (6 new malls were opened in 2011) > Land bank area up 10% to approximately 8.4 million square meters > Equity attributable to owners of the Company up 29.2%, to approximately RMB 14.4 billion > Earnings per share were RMB 84.73 cents > Dividend per share RMB 0.06

2011 Annual Results - Summery

5

Revenue FY2011 (RMB Million)

FY2010 (RMB Million)

Changes (%)

Sales of Properties 4,749 4,162 14%

Rental and Management Fees 284 237 20%

Hotel, Retails & Others 221 33 564%

Total 5,254 4,433 19%

Net Profit FY2011 (RMB Million)

FY2010 (RMB Million)

Changes (%)

Earnings (excluding revaluation gain)

903 1,263 29%

Investment Property Revaluation 2,647 1,922 38%

Total 3,550 3,185 11%

Annual Results 2011 For the 12 months ended 31st December

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Property Sales and Delivered FY2011 FY2010 Changes (%)

Revenue – Property Sales (RMB Million) (RMB Million)

Residential 2,710 1,579 72%

Commercial 2,039 2,583 21%

GFA Sold and Delivered (‘000 sq.m) (‘000 sq.m)

Residential 459 267 72%

Commercial 198 249 20%

For the 12 months ended 31st December

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Annual Results 2011

Breakdown of Sales Revenue, Gross Margin and Net Margin

Property Sales FY2011 FY2010

Residential GP 35% 43%

Commercial GP 64% 61%

Blended GP 46% 54%

Net Profit FY2011 FY2010

Net Margin (Earnings excluding revaluation gain)

17% 29%

3% 5%

37% 53%

2%

FY2011 By Sales Value hotel

Rental & Mgmt

Property - Commercial Saless Property - Residential Sales others

1%

5%

58%

36%

FY2010 By Sales Value hotel

Rental & Mgmt

Property - Commercial Saless Property - Residential Sales others

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Revenue Contributions and GFA Delivered by Projects —— By Revenue

Luoyang 7% Suqian

13%

Yancheng 16%

Qingdao Licang

7%

Qingdao Chengyang

13%

Wuxi Wangzhuang

24%

Bengbu 9%

Zhengzhou 5%

Tai'an 4%

Others 2%

FY2010

9

Luoyang 13%

Suqian 15%

Yancheng 18%

Qingdao Licang 27%

Changzhou 10%

Xinxiang 4%

Quanzhou Anxi 3%

Qingdao Jimo 2%

Wuxi Yuqi 4%

Others 4%

FY2011

Luoyang 13%

Qingdao Licang 20%

Yancheng 19%

Suqian 20%

Changzhou 13%

Wuxi Yuqi 8%

Xinxiang 3%

Others 4%

FY2011

Luoyang 9%

Qingdao Licang

6%

Yancheng 18%

Suqian 14%

Wuxi Wangzhuang

19%

Bengbu 7%

Qingdao Chengyang

17%

Tai'an 5%

Zhengzhou 3%

Others 2%

FY2010

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Revenue Contributions and GFA Delivered by Projects —— By GFA Delivered

FY2011 (RMB)

FY2010 (RMB)

Changes (%)

Average Selling Price

Residential 5,898 / sq.m 5,923 / sq.m 0%

Commercial 10,291 / sq.m 10,377 / sq.m 1%

Average 7,222 / sq.m 8,073 / sq.m 11%

Land Cost per sq.m sold 758 / sq.m 741 / sq.m 2%

For the 12 months ended 31st December

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Annual Results 2011

Key Investment Properties – Occupancy Analysis

Projects Opening Date

IP (‘000 sq.m)

Area in operations (‘000 sq.m)

Occupancy

Qingdao Jimo Powerlong City Plaza Dec 2011 87 65 94%

Qingdao Licang Powerlong City Plaza Dec 2011 84 84 95%

Luoyang Powerlong City Plaza Phase II Dec 2011 60 60 88%

Quanzhou Anxi Powerlong City Plaza Dec 2011 50 50 99%

Yancheng Powerlong City Plaza Sep 2011 106 84 100%

Suqian Powerlong City Plaza Sep 2011 88 68 98%

Wuxi Powerlong City Plaza May 2011 97 97 97%

Zhengzhou Powerlong City Plaza Dec 2009 108 108 96%

Bengbu Powerlong City Plaza Dec 2009 183 183 57%

Qingdao Powerlong City Plaza Oct 2009 198 198 68%

Luoyang Powerlong City Plaza Phase I Sep 2009 63 63 100%

Fuzhou Powerlong City Plaza Apr 2007 95 95 95%

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Selected Balance Sheet Items FY2011

(RMB Million)

FY2010

(RMB Million) Changes (%)

Cash and Bank Balances 1,819 4,002 55%

Total Assets 34,004 24,466 39%

Advances from Customers 2,786 2,453 14%

Shareholders’ Equity 14,405 11,147 29%

Borrowings (long term) 6,920 4,267 62%

Borrowings (short term) 2,436 1,954 25%

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Annual Results 2011

Financial Ratios FY2011 FY2010

Current Ratio 1.5 1.8

Total Debt / Total Assets 58% 54%

Total Debt / Equity * 52% 20%

Earnings per Share (Basic) RMB 85 cents RMB 73 cents

Earnings per Share

(Earnings excluding revaluation gain) ** RMB 22 cents RMB 29 cents

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*(Borrowings – restricted cash – cash and cash equivalents) / Total Equity The ratio is 55% if restricted cash is excluded

** Earnings excluding revaluation gain and minority interests / number of shares outstanding

Annual Results 2011

Debt Maturity Profile

Debt Profile (Nature)

Debt Profile (long term vs short term)

Debt Maturity Analysis

0

500

1000

1500

2000

2500

3000

3500

4000

4500

Within 1 year 1-2 years 2-5 years Beyond 5 years

Outstanding Amount RMB ‘000

0

1000

2000

3000

4000

5000

6000

7000

8000

Short-term Long-term


0

1000

2000

3000

4000

5000

6000

Notes Bank Borrowings Other Borrowings

Outstanding Amount

Debt Profile (Currency)

0

1000

2000

3000

4000

5000

6000

7000

8000

RMB HKD USD


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•Business Update

16


•Land Bank


Agenda

Contracted Sales Contracted ASP Contracted GFA

R : Residential C: Commercial

Contracted Sales Analysis

RMB (mn) sqm Price / sqm

(RMB)

17

2,900

6,215

5,481

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

2009 2010 2011

395,358

874,560 811,959

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

900,000

1,000,000

2009 2010 2011

3,767

5,933 5,348

9,700

10,634

9,279

0

2,000

4,000

6,000

8,000

10,000

12,000

2009 2010 2011

R C R C R C

By Product Types (By Value)

FY2011

Residential 51%

Commercial 49%

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FY2010

Residential 63%

Commercial 37%

2011 Contracted Sales Analysis

By Geographical

Luoyang

18%

Suqian

13%

Yancheng

8%

Changzhou

8%

Qingdao

Jimo

9%

Wuxi Yuqi

2%

Qingdao

Licang

8%

Quanzhou

Jinjiang

7%

Xinxiang

11%

Quanzhou

Anxi

6%

Others

10%

FY2011

Luoyang

7%

Suqian

13%

Yancheng

20%

Changzhou

7%

Qingdao

Jimo

7%

Wuxi Yuqi

3%

Qingdao

Licang

19%

Qingdao

Chengyang

3%

Wuxi

Wangzhuang

9%

Bengbu

3%

Zhengzhou

3% Tai'an

3%

Others

3%

FY2010

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2011 Contracted Sales Analysis

Recent Awards

Recent Projects Awards

Yancheng Powerlong City Plaza was awarded “2011-2012 China New Urban

Landmark Architectures” by China Index Academy and China Real Estate

Index System.

Qingdao Jimo Powerlong was awarded “2011 Top 1 Corporate” within

Qingdao Jimo .

Zhengzhou Powerlong City Plaza was awarded “The Best Recreational

Shopping Mall” among a long list of competitors

Recent Corporate Awards 2011 Top 10 China Commercial Properties Project Brand Value – No.2

2011 Top 10 China Commercial Properties Company Brand Value – No. 2

2011 Top 10 China Real Estate Developer Corporate Brand Value and Professionalism

2011 Top 10 China Real Estate Developer Corporate Brand with Growth Potentials

2010-2011 China Commercial Properties Contribution Award

2011 Top 50 China Listed Real Estate Developer Combined Strength Award

2011 Top 10 China Listed Real Estate Developer Profitability Award

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Shanghai (Headquarters)

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Tianjin North Green Area Land cost: RMB 140.5 M GFA: 70.0k sq.m

Development: Commercial – 70.0k sq.m

Tianjin Binhai Land cost: RMB 848.6 M GFA: 692.7k sq.m

Development: Commercial – 151.7k sq.m Residential – 509.5k sq.m Hotel – 31.5k sq.m

Jiangsu Zhenjiang Land cost: RMB 360.0 M GFA: 231.8k sq.m

Development: Commercial – 207.4k sq.m Residential – 17.9k sq.m Hotel – 6.5k sq.m

Shanghai Cao Lu Town Land cost: RMB 610.0 M GFA: 194.2k sq.m

Development: Commercial – 177.2k sq.m Hotel – 17.0k sq.m

Shanghai Huaxin Land cost: RMB 995.0 M GFA297.5k sq.m

Development: Commercial -182.0k sq.m Residential – 98.5k sq.m Hotel– 17.0k sq.m

Quanzhou Jinjiang Land cost: RMB 1,046.9 M GFA: 831.1k sq.m

Development: Commercial – 505.1k sq.m Residential – 294.0k sqm Hotel – 32.0k sq.m

New Land Acquisitions in 2011

New Project Highlights – Quanzhou Jinjiang

Development Total GFA (‘000 sq.m)

Furnished Apartments 221

Office 89

Retail 181

Hotel 32

Mall 117

Car Parking Spaces 192

Total 831

Hotel 4%

Commercial 61%

Residential 35%

Land cost RMB 1,046.9 million (RMB 1,260psm)

Construction Commencement

April 2011

Presales schedule 3rd Quarter 2011

Anchor Tenants Jinyi International Cinemas, KFC, McDonald’s,Pizza Hut, Ajisen Ramen

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For Lease 33%

For Sale 67%

Development Total GFA (‘000 sq.m)

Furnished Apartments 36

Retail 65

Hotel 17

Car Parking Spaces 76

Total 194

Commercial 92%

Hotel 8%

Land cost RMB 609.9 million (RMB 3,140psm)

Construction Commencement

3rd Quarter 2012

Presales schedule 3rd Quarter 2012

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New Project Highlights – Shanghai Cao Lu Town

For Lease 40%

For Sale 60%

Growing Mall Portfolio

Shanghai (Headquarters)

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Qingdao Jimo Powerlong City Plaza

Qingdao Licang Powerlong City Plaza

Qingdao Chengyang Powerlong City Plaza

Bengbu Powerlong City Plaza

Zhengzhou Powerlong City Plaza

Xinxiang Powerlong City Plaza Opening: May 2012

Luoyang Powerlong City Plaza

Suqian Powerlong City Plaza

Yancheng Powerlong City Plaza

Wuxi Powerlong City Plaza

Hangzhou Powerlong City Plaza Opening: Dec 2012

Fuzhou Powerlong City Plaza

Quanzhou Anxi Powerlong City Plaza

Malls opened in 2011

Malls to be open in 2012

Old Malls

A Glimpse at our 6 new malls opened in 2011

Suqian Powerlong City Plaza Yancheng Powerlong City Plaza Qingdao Jimo Powerlong City Plaza

Qingdao Licang Powerlong City Plaza Quanzhou Anxi Powerlong City Plaza Luoyang Powerlong City Plaza

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6 shopping malls successfully opened in 4Q2011

Anchor tenants (60% of leasable area) have leasing contracts that last for 10-20 years, ensuring stability and recurring income generation

Openings are on schedule

2 new malls to come in 2012

Growing Portfolio of Investment Properties

Projects Total Mall GFA

(‘000 sq.m) Opening Date

Key Tenants

Suqian Powerlong City Plaza 121 Sep 2011

Yancheng Powerlong City Plaza 135 Sep 2011

Qingdao Licang Powerlong City Plaza 112 Dec 2011

Qingdao Jimo Powerlong City Plaza 117 Dec 2011

Luoyang Powerlong City Plaza 67 Dec 2011

Quanzhou Anxi Powerlong City Plaza 58 Dec 2011

Xinxiang Powerlong City Plaza 88 Sep 2012

Hangzhou Powerlong City Plaza 28 Dec 2012

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http://www.jycinema.com/index.php?s=Web/index

Qingdao Licang Powerlong City Plaza

Ownership: 100%

Opening Date: Dec 3, 2011

Total GFA: 366.9k sq.m

Occupancy: 96%

Key Tenants:

Vanguard Supermarket

Hengdian Cinema

Balloon Department Store

Loongmic KTV

Fly on Prairie Game Arcade

Uniqlo

GFA by Type

Powerlong City Plaza Case Study – Qingdao Licang

Hotel 2%

Commericial 48%

Residential

50%

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Suqian Powerlong City Plaza

Ownership: 100%

Opening Date: Sep 17, 2011

Total GFA: 489.0k sq.m

Occupancy: 99%

Key Tenants:

Balloon Department Store

Walmart Supermarket

Loongmic KTV

Suning Electronics

Fly on Prairie Game Arcade

GFA by Type

Residential 44%

Commercial 56%

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Powerlong City Plaza Case Study – Suqian

Diversification of Business - Hotels

Graded Hotels Budget Hotels

Four Points by Sheraton Qingdao

Four Points by Sheraton Tai’an

Four Points by Sheraton Taicang

Aloft Haiyang Days Inn Powerlong Qingdao

Opening Date: February 2011

Opening Date: December 2010

Opening Date: July 2010

Opening Date: July 2011

Opening Date: January 2012

Address: No.271 Wenyang Road , Chengyang Qingdao,Shandong, 266109, China

Address: No. 888 East Huanshan Road, Tai'an,, Shandong, 271001, China

Address: No. 288 Shanghai East Road, Taicang, Suzhou,Jiangsu, 215400, China

Address: Powerlong Town, Haibin Zhong Road, Haiyang, Shandong 265100, China

Address: No. 689 Qingshan Road, Licang, Qingdao, 266100, China

303 Rooms / 287 staffs 300 Rooms / 310 staffs 446 Rooms / 331 staffs 145 Rooms / 86 staffs 170 Rooms / 46 staffs

Powerlong continues to develop its hotel business for long term recurring income

We have also engaged an International Operators, such as Sheraton Hotels and Resorts International Group, for their management services as the hotel operator

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Qingdao Licang Balloon Department Store

Qingdao Jimo Balloon Department Store

Yancheng Balloon Department Store

Suqian Balloon Department Store

Opening: 3 December 2011 Opening: 24 December 2011 Opening: 23 September 2011 Opening: 17 September 2011

GFA: 21,414 sq.m GFA: 24,088 sq.m GFA: 19,456 sq.m GFA: 33,857 sq.m

Key Partners: Chow Tai Fook, Hengdeli, Chow Tai Seng, Shiseido

Key Partners: Chow Tai Fook, Hengdeli, Chow Tai Seng, Shiseido

Key Partners: Shiseido, Lachapelle, N&Q, ETAM

Key Partners: Peacebird, ETAM, Shiseido, Eland

Diversification of Business – Balloon Department Stores

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•Land Bank


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Agenda

•Business Update


2012 Outlook and Strategies – Corporate Strategies

Maintain focus on commercial complexes development

1st Tier Cities – Community Commercial Complexes

2nd/3rd Tier Cities – Sub-urban Centers Development

3rd/4th Tier Cities – City Centers Development

Each project to balance its cashflows

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穩健經營、精益求精 Sound Operations, Strive for Excellence

2012 Outlook and Strategies - Management Principles

Sound Operations 穩健經營

Improve property sales and asset turnover

Improve debt structure

Stringent cost control

Strive for Excellence 精益求精

Improve quality of investment properties

Improve quality of properties for sale

Enhance product standardization

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2012 Outlook and Strategies – Commercial Management

Improve operations of existing shopping malls

To open 2 new shopping malls in 2012

Increase rental income, yield on costs and occupancy rates

Aim for decent increase in rental revenue and occupancy rates in 2012

Next major rental revisions expected in 2014

To archive year-on-year rental revenue growth

Build strong strategic alliances with retailers

Strengthen professional management team

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•Land Bank

35

Agenda

•Business Update



Land bank Analysis by Provinces

Provinces GFA (‘000 sq.m)

Number of Projects

Fujian 1,124 3 PUD

Jiangsu 1,430 5 PUD, 1 PHD

Shandong 981 3 PUD

Henan 1,873 2 PUD

Tianjin 1,139 1 PUD, 2 PHD

Shanghai 541 2 PHD, 1 PHD

Zhejiang 363 1 PUD

Chongqing 658 1 PUD

Jilin 312 1 PHD

Total 8,420 23 PUD/ PHD

Average Land Cost

RMB 999 / sq.m

PUD: Projects Under Development

PHD: Project Held for further Development

Purchase 6 projects in 2011 (Total GFA: 2,317k sq.m)

Fujian 13%

Jiangsu 17%

Shandong 12% Henan

22%

Tianjin 14%

Shanghai 6%

Zhejiang 4%

Chongqing 8%

Jilin 4%

Remain Focused in

36

Shanghai GDP: 8.2%

(Headquarter)

Source: Company data, as of October 2011

Land bank of 8.4 million sq.m in selected fast-growing and emerging cities in China

Tianjin Since 2010

1 PUD 2 PHD

Total GFA: 1,139k sq.m

Our Projects Locations

Projects completed: 5.3 million sq.m Projects under development: 3.8 million sq.m

Projects for future development: 4.6 million sq.m 31 projects with 13.7 million sq.m

Shandong Province Since 2006

2 Completed

3 PUD


Henan Province Since 2005

1 Completed

2 PUD


Anhui Province Since 2005

1 Completed

Total GFA: 496k sq.m

Chongqing Since 2010

1 PUD


Changchun Since 2010

1 PHD


Jiangsu Province Since 2004

1 Completed

5 PUD, 1 PHD


Shanghai Since 2010

2 PUD, 1PHD


Zhejiang Province Since 2010

1PUD


Fujian Province Since 2003

3 Completed

3 PUD


37

Land bank by nature Land bank by components and usage (‘000 sq.m)

Hotel

（4%） Commercial

(for hold)

（10%）

Commercial(for sale)

（31%）

Car park

（16%）

Residential

（39%）

Total:8,420 K sq.m

A Sustainable Quality Commercial Investment Portfolio

615 875

3,150 3,443

57 281

Properties Under Development Properties Held for Future Development

For Lease For Sale Hotel

38

Summary of Major Projects and Land Bank

Classification Projects Total

Projects/GFA

Completed

Projects and

Properties in

Operations

8 projects:

5.3 million sq.m

Projects

Under

Development

/

Held for

Future

Development

23 projects:

8.4 million sq.m

Under

Construction:

3.8 million sq.m

Held for Future

Development:

4.6 million sq.m

Established developer with proven operating track record

Fuzhou

Powerlong

City Plaza

Jinjiang

Powerlong

Golden Jiayuan

Quanzhou Anhai

Powerlong Haoyuan

Wuxi

Powerlong

City Plaza

Zhengzhou

Powerlong

City Plaza

Bengbu

Powerlong

City Plaza

Tai An

Powerlong

City Plaza

Qingdao

Chengyang

Powerlong

City Plaza

Yancheng

Powerlong City Plaza

Suqian


Taicang

Powerlong City Plaza Changzhou


Wuxi Yuqi

Powerlong Riverside Garden

Quanzhou Anxi


Xinxiang

Powerlong City Plaza Yantai Haiyang

Powerlong City Plaza Qingdao Licang


Qingdao Jimo


Xiamen

Project

Chongqing Hechuan


Changchun

Powerlong Center

Hangzhou

Powerlong City Plaza Shanghai

Powerlong World

Shanghai Huaxin

Project

Zhenjiang

Project

Tianjin Yujiapu


Luoyang


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Documents

2011 Annual Results Presentation