Company Newsletter(June 2018) Stock ( 5 July, 2018): Closing Price : HK$ 4.020 52-week High/Low : HK$ 3.200-5.000 Market Cap : 16,069 million HK$ No. of Issued Shares : 3,997 million > Contracted Sales In June, the Company recorded contracted sales (including contracted sales value by joint ventures and associated companies) of approximately RMB 4,210 million for the GFA of approximately 257,890 sq.m. The Company achieved approximately RMB 16,341 million cumulative contracted sales (including contracted sales value by joint ventures and associated companies), representing a YoY increase of 80.3%, and with the GFA of approximately 1,159,970 sq.m., representing a YoY increase of 76.2%. IR Contact: Investor Relations Department Email: IR@powerlong.com Phone:+852 2169 1955(Hong Kong) +86 21 5175 9999 x 8508(Shanghai) Wonderful Sky Financial Group Email: powerlong@wsfg.com Phone: +852 2581 1038 Company Website www.powerlong.com No. RMB: million 4,500 4,000 3,500 3,000 2,500 2,000 1,500 1,000 500 0 Type of Business Contracted Sales (RMB: million) Ratio 1 Commercial 3,142 19.2% 2 Residential 13,199 80.8% 2,068 1,952 2,621 1,505 1,036 1,770 Contracted Sales (June 2018) 1,967 3,523 1,221 1,283 4,210 2,246 1,569 1,457 1,874 2,070 2,131 2,720 - - - - - - Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Contracted Sales in 2017 Contracted Sales in 2018 1
> Company News Powerlong teamed up with CIFI Group for mutual development On 21 June, Powerlong Real Estate and CIFI Group entered into a strategic cooperation agreement at Powerlong s headquarters in Shanghai, announcing that both parties will establish a strategic partnership and become a strategic partner to each other. Hoi Kin Hong, chairman of the board of directors of Powerlong Group, Lin Zhong, chairman of CIFI Group, Hoi Wa Fong, president of Powerlong Real Estate, Yang Xin, director/ vice president/ general manager of the financial centre of CIFI Group, and other management members attended the agreement signing ceremony. Huang Yaoming, vice president of Powerlong Real Estate and general manager of the investment development centre, and Pan Daoyuan, vice president of CIFI Group and general manager of the investment development centre, signed the agreement on behalf of both parties. The signing of the strategic cooperation agreement with CIFI is based on the circumstance that both parties have engaged in good interaction with each other. Since 2016, Powerlong has cooperated with CIFI for the development of four projects in Shanghai, Hangzhou and Ningbo, constructing a number of benchmark projects that lead the local markets. With the establishment of this comprehensive strategic cooperation, looking forward, both parties will enhance cooperation and exchange in several aspects such as property investment and development, information exchange, land markets, project cooperation and development, brand promotion, customer service and research, product marketing and talent nurturing, so as to achieve a win-win situation and build a sustainable strategic partnership. Both parties indicated that they, as outstanding property developers from Fujian, were confident to take this comprehensive strategic cooperation to a new level and lead to a win-win situation in the new era. 2
> Company News Powerlong Real Estate reached a strategic cooperation with Zhongliang Holdings Group On 6 June, Powerlong Real Estate and Zhongliang Holdings Group entered into a strategic cooperation agreement at Powerlong s headquarters in Shanghai, pursuant to which, both parties will establish a strategic cooperation partnership. Hoi Wa Fong, president of Powerlong Real Estate, Zhang Jun, vice president and general manager of the Zhejiang business department, Wang Chunlei, president of Zhongliang Holdings Group, Zhou Luli, assistant to president, and Wang Xiaojing, president of the Zhejiang real estate regional group of Zhongliang, attended the agreement signing ceremony. With years of extensive experience in large-scale urban complex development and operation, Powerlong Real Estate is committed to the development and operation of mid-to-high-end urban complex. Powerlong Plaza, a proprietary brand for urban complex, has ranked among top 100 property developers in China for thirteenth consecutive years and top 10 commercial property developers in China by brand value for seventh consecutive years. Zhongliang Holdings Group has been focusing primarily on property investment and development over the years. With superb product quality and outstanding customer service, Zhongliang has ranked among top 100 property developers in China. In 2018, it ranked in the 25th place and 1st place by overall strengths and growth speed respectively, and ranked among top 10 companies in terms of financing capability. In order to integrate both parties advantages and resources and foster sustainable development, they will adhere to the principle of long-term development, advantage complement, mutual benefit, so as to commence all-round, multi-front and in-depth cooperation in land acquisition, project cooperation and business operation and management across the country in the future. Strategic cooperation between China Minsheng Bank (Headquarters) and Powerlong Group On 6 June, China Minsheng Bank (Headquarters) and Powerlong Group engaged in a dialogue at Pullman Xiamen Powerlong. Xu Jian Man, director of Powerlong Group, Liao Mingxun, vice president of Powerlong Real Estate, and Shi Jie, vice chairman of China Minsheng Bank (Headquarters), participated in the conference. This has marked the commencement of a more comprehensive and in-depth cooperation of both parties by leveraging their own advantages. 3
> Company News Enhancing cooperation with banking enterprises for mutual benefits- Strategic cooperation between China Minsheng Bank (Headquarters) and Powerlong Group (Cont d) Minsheng Bank has cooperated with Powerlong Group for six years. As of the end of 2017, the bank ranked third in terms of total credit to Powerlong Group. On 16 May 2018, Powerlong Group obtained a total credit of 5 billion, becoming one of top100 key strategic clients (only 30 companies were property developers) of Minsheng Bank and the core clients of its Xiamen branch. Shi Jie, chairman of the bank, indicated, while maintaining the traditional financing foundation, Minsheng Bank has upheld the strategy of serving private enterprises. It hopes to manage and launch innovative business, capital pooling, upstream and downstream finance of the property industry, domestic and overseas issuance of bonds and online financial service for supply chain and new retail as well as cracking down all barriers to create financially value-added services and products. It will also enhance the financial support offered to Powerlong Group so as to forge a long-term cooperation, complement each other with the advantages they possess and achieve a mutually beneficial and win-win situation. Powerlong received enthusiastic response from the flat launch in June, recording contracted sales of approximately RMB3 billion for five projects In June, Powerlong Real Estate receieved enthusiastic responses from the launch of various projects, including Parkview Manor in Tianjin, New Longisland Garden and Powerlong Mansion in Ningbo, Linan Powerlong Plaza in Hangzhou and Powerlong Mansion in Shaoxing. Contracted sales of approximately RMB3 billion were recorded soon after these projects were launched. On 3 June, Ningbo s Powerlong Mansion Phase 2 were rolled out for sale, involving 214 flats with areas ranging from 94 to 98 m2 for upper-floor flats and 112 to 114 m2 for villas. The flat were sold out immediately after they were launched. As Powerlong Real Estate s first residential project in Ningbo, Powerlong Mansion is located in Aoti, Yaojiang, Ningbo, where has the lowest density and highest habitability. In addition, more flats were launched for sale for New Longisland Garden Phase 2 in Ningbo on 16 June. The products included 139 m2 four-flat apartments with panoramic view and 140-170 m2 new villas. These flats enjoy breathtaking views and have outstanding design and therefore were favoured by mid-to-high-end customers. 4
Powerlong received enthusiastic response from the flat launch in June, recording contracted sales of approximately RMB3 billion for five projects (Cont d) On 23 June, Powerlong Mansion in Shaoxing were launched to the market. 90% of flats were sold in just five minutes, recording sales of over RMB1.2 billion. Shaoxin s Powerlong Mansion launched 90-130 m2 flats through mobile Wechat online flat selection. All flats were sold out soon after they were available for subscription. Powerlong Real Estate made its first presence in Shaoxing in October 2017 by securing the land no. 22 in Yangjinghu, Paojiang. The project commenced construction in February 2018 and selling in June 2018, which demonstrated its high operating efficiency driven by 369 model. Powerlong Mansion were launched in Shaoxing On 26 June, the Linan Powerlong Plaza in Hangzhou was launched for sale. The subscription area, flat selection area and contract signing area were crowded with people. Overwhelming responses were received from prospective buyers and 90% of the flats were sold in the launch. 5
Powerlong received enthusiastic response from the flat launch in June, recording contracted sales of approximately RMB3 billion for five projects (Cont d) Linan Powerlong Plaza were launched in Hangzhou Yonghui s new retail brand Super Species was introduced to Qibao Powerlong City On 27 June, Yonghui Supermarket s new retail brand Super Species opened a store in Qibao Powerlong City. Being the fourth Super Species store opened in Shanghai, it occupies the twostorey independent building with panoramic glass windows, with a site area of 1,100 m2 and nine workshops providing over 100 kinds of seafood and professional processing services. Customers can choose and purchase seafood in the store for further processing by chefs there. Super Species is the first new retail brand for supermarket being introduced in Qibao business district. The brand focuses on high-end supermarket, ingredients and catering, Yonghui s lifestyle APP. With Yonghui s lifestyle APP, customers can order food and scan QR code to shop for products. They can also enjoy 30-minute speedy delivery service within 3 km radius. 6
Yonghui s new retail brand Super Species was introduced to Qibao Powerlong City (Cont d) 7
Powerlong won the bid for a commercial and residential land in Yinzhou, Ningbo, continuing the effort in developing the Pan Hangzhou Bay Area On 4 June, Powerlong Real Estate won the bid for a commercial and residential land in southern Yinzhou, Ningbo, Zhejiang with a floor price of RMB6,510/ square meter. The land located at Shounan Street, Yinzhou occupies a site area of 121,124 m2 and a gross floor area of approximately 361,000 m2. It is planned for the uses of residence, business and finance, catering, hotels and retail business. The success of the project marked another milestone for Powerlong in its expansion in Ningbo market and also demonstrated Powerlong s confidence in continuing its development in Zhejiang. The land, located in the business area in southern Yinzhou District, Ningbo, connects to the business area in the south. It is surrounded by business buildings with comprehensive amenities such as hospital. It is 6.5 km and approximately 6.5 km away from the Leshe International Airport and Ningbo Train Station. The planning of the district revolves around the transportation hub with an aim to build a regional centre with the TOD new development model, so as to realize the urban development plan that is designed to maximize public space in the city and achieve sustainable development. > Awards of the Month Date Awards Issued by 28 June TOP 10 Green Property Developers in China by Operation 2018 China s Green Real Estate Development Report Announcement and 2018 China s Green Smart Real Estate Forum 8
> Company Introduction Powerlong Real Estate Holdings Limited (the Company, Powerlong and Powerlong Real Estate ) is a real estate enterprise listed on the main board of The Stock Exchange of Hong Kong Ltd., specializing in the development and operation of high-quality, large-scale, multi-functional commercial complexes. Powerlong has developed a series of urban complexes named Powerlong City Plaza integrating large-scale shopping centers, supermarkets, department stores, retail stores, cinemas, food plazas, quality residential properties and other leisure facilities, which have become large-scale commercial landmarks in cities where such complexes locate. Property projects are generally located in prime positions close to the city center of fast-growing, emerging cities in Shanghai Municipality, Jiangsu Province, Zhejiang Province, Fujian Province, Shandong Province, Tianjin Municipality, Henan Province, Chongqing Municipality, Anhui Province. Powerlong has been awarded for many years China Real Estate Top50 Enterprises, China Commercial Real Estate Top5 Enterprises, China Top10 Listed Real Estate Enterprises, China Top5 Commercial Project Brand Value, China Top5 Commercial Real Estate Corporate Brand Value, etc. 9