Sino-Ocean Land (3377.HK) FY11 Annual Results March 2012
About Sino-Ocean Land (3377.HK) Key businesses A leading developer in Beijing and the Pan-Bohai Rim focusing on building midto-high end residential properties, developing and investing in commercial properties. Land bank size Total GFA: approx. 24mn sqm as of Dec 31, 2011. Attributable GFA: approx. 21mn sqm, as of Dec 31, 2011. Average land cost as of Dec 31, 2011: RMB3,029/sqm. Shareholding structure Listed in Sep 07, the total issued shares reached approx. 5.66bn as of Mar 1, 2012. Major shareholders China Life (2628.HK) holds 24.45% and Nan Fung Group, a reputable private Hong Kong developer, holds 13.86%. Human resources Management: 14 years average time in industry, highly experienced and with global vision. 10 years average time in the Company, a stable team with excellent rapport. Core staff: 35% - postgraduate level, professionals with outstanding quality. 35 years - average age, vastly experienced yet resourceful. 2
FY11 Results highlights Despite about 90% of projects facing home purchase restriction, we still achieved new high contracted sales of RMB27bn, a growth of 25% YoY. This respectable performance was the result of a flexible, speedy and steadfast sales strategy that the Company has always adopted. RMB bn CAGR of contracted sales: +45% Contracted sales YoY growth rate Sources: Company data and China Index Academy 中国指数研究院资料库 3
FY11 Results highlights Revenue and profit attributable to equity holders rose steadily RMB bn CAGR of revenue: +36% Revenue up 45% YoY to RMB19.9bn in FY11. Profit attributable to equity holders of the Company rose 5% YoY to RMB2.6bn. If excluding one off items, profit attributable to equity holders of the Company increased 14% YoY to RMB2.1bn in FY11. 4
FY11 Results highlights High earnings visibility As of end of 2011, we have locked in sales of RMB29.8bn for booking in 2012 and future. Robust financial position (as of Dec 31, 2011) Overall cash return ratio was 90%, thanks to our leading position in those market we entered for years. Cash on hand: approx. RMB12.4bn. Approved but unutilized credit facilities were RMB15.3bn Net gearing ratio: 60%. As of March 2012, total approved credit facilities reached RMB40bn. 5
FY11 Results highlights Top positions in market share Location Contracted sales Market share Tally Beijing 9.68bn 5% 3 rd Dalian 6.41bn 10% 1 st Tianjin 2.54bn 2% 5 th Zhongshan 2.15bn 5% 3 rd Sources:CREIS,CEIC Flagship projects scoring remarkable sales Project Contracted sales Tally Ocean City 2,150 mn 1 st in Zhongshan Ocean Century 560 mn 1 st in Qinhuangdao Ocean Plaza 2,350 mn 2 nd in Dalian Ocean Worldview 2,100 mn 3 rd in Dalian Ocean Times 1,300 mn 4 th in Dalian Ocean Prospect 900 mn 5 th in Qingdao Strong support by strategic partners With the strong backup from strategic partners, Sino-Ocean can enjoy more flexibility in project funding arrangements Reputable strategic partners: from Mainland China: China Life, China Construction, BOC, ABC, ICBC, Everbright Bank from Hong Kong: Nan Fung, Swire and HSBC from overseas: KKR, DLJ and CITIC Fund 6
FY11 results Ocean Great Harmony, Beijing 北京万和城 7
FY11 Financial highlights (RMB mn) FY11 FY10 Change Revenue 19,897 13,721 45% Gross profit 6,258 4,125 52% Gross profit margin 31% 30% 1% pts Profit attributable to equity holders 2,571 2,444 5% Profit attributable to equity holders excl. one off items 2,134 1,869 14% Net profit margin 13% 18% -5% pts Net profit margin excl. one off items 11% 14% -3% pts EPS-basic (RMB) 0.352 0.398-12% Total dividend per share (HK cents) 15 13 15% Dividend payout ratio 27% 26% 1% pts Cash on hand as at end of year (RMB bn)* 12.4 15-17% Net gearing ratio as at end of year * 60% 46% 14% pts * Including the restricted bank deposits 8
Revenue breakdown by business operations Property development remained the largest contributor which accounted for about 89% of total revenue. A decent growth of 60% in investment property, as well as a substantial growth of 173% in property management and other property related businesses. 9
Property development revenue breakdown by locations Revenue from property development increased 38% thanks to the increase in both ASP and GFA delivered. Cities entered in the past three years such as Dalian, Tianjin and Shenyang are gradually yielding results. Hence, Beijing s revenue contribution declined from 53% last year to 44% this year. 10
Investment properties (completed) Investment properties contributed RMB340mn in revenue in FY11, up 60% YoY. Property investment continued to account for 2% of total revenue. The properties that began leasing in recent years maintained high occupancy rate. Projects GFA for lease (sqm) Occupancy rate as of end of FY11 end of FY10 Attributable interest Ocean Plaza 远洋大厦 Along Chang An Ave, Beijing, opposite People s Bank of China Block A of Ocean International Center 远洋国际中心 A 座 Near East 4 th Ring Road, Beijing 31,000 Over 95% Over 95% 72% 101,000 Over 90% Over 90% Ocean Office Park 远洋光华国际 CBD, Beijing (Began leasing in 2H09) INDIGO 颐堤港 Lido Business District, Beijing 52,000 Ocean Express parking lots Yansha Business District, Beijing 118,000 Over 90% Over 65% Initial launch N/A 50% 14,000 About 40% About 10% Shui On Plaza 瑞安广场 Luwan District, Shanghai Total: 319,000 3,000 Over 75% Over 75% 70% 11
颐堤港 INDIGO (JV with Swire) Office: started operation in 2011 Shopping mall: under initial launch Hotel: is still in renovation Shopping mall Leasable GFA * (sqm) Leasing start Occupancy rate as of end of Feb 12 87,000 Initial launch 69% Office 52,000 4Q11 46% Major tenants H&M, GAP, Columbia, CGV Cinema and Food Republic Swire Resources, Swire Properties and Alstom Hotel 33,000 2H12 N/A N/A Note:* this does not include underground car parks. 12
Summary of FY11 cash flow Cash return ratio of 90% (RMB bn) Cash on hand as of Dec 31, 2010 15 Cash inflow Sales proceeds 24.1 Rental income, interior fitting out services and others 3.2 New loans 16 Issued Perpetual Subordinated Capital Securities 2.5 Subtotal 45.8 Cash outflow Land premium settled - 13.3 Construction costs settled - 11.7 Repayment of loans - 12.2 Taxes - 4.3 Dividend paid - 1.1 SG&A and other expenses - 5.8 Subtotal - 48.4 Cash on hand as of Dec 31, 2011 12.4 13
Debt structure Cost of fund in FY11 was 6.67%, up 1.32% pts from FY10. Approved but unutilized credit facilities were RMB15.3bn As of March 2012, total approved credit facilities reached RMB40bn. Period As of Dec 31, 11 (RMB mn) As % of total debt as of Dec 31, 11 As of Dec 31, 10 (RMB mn) Compare to 2010 Within 1 year 14,482 43% 9,920 4,562 Between 1 and 2 years 6,779 20% 11,062-4,283 Between 2 and 5 years 10,001 30% 6,184 3,817 Over 5 years 2,325 7% 2,030 295 Total: 33,587 29,196 4,391 14
Business review Ocean Office Park, Beijing 北京远洋 光华国际
FY11 Contracted sales breakdown by locations In 2011, we had 41 projects for sale in 16 cities, among which 19 were new projects. GFA sold in new cities increased to 11% from 8% in 2010. City Sales amount FY11 (RMB mn) Increase in sales amount YoY As % of sales in FY11 Beijing 9,680 23% 36% 412-4% 23,500 28% Dalian 6,413 68% 24% 609 71% 10,500-3% Tianjin 2,538-13% 9% 263-13% 9,700 1% Zhongshan 2,153 17% 8% 223-1% 9,700 20% Shenyang 1,140-32% 4% 128-37% 8,900 9% Hangzhou 948-67% 4% 37-56% 25,800-24% Sanya 426 6% 2% 17-18% 24,600 29% Chengdu 541 191% 2% 72 158% 7,500 14% Qinhuangdao 604 750% 2% 94 759% 6,400-2% Haikou 76 N/A 0% 4 N/A 18,500 N/A Chongqing 164 N/A 1% 23 N/A 7,000 N/A Wuhan 424 N/A 2% 62 N/A 6,900 N/A Qingdao 906 N/A 3% 49 N/A 18,400 N/A Shanghai 408 N/A 1% 14 N/A 29,000 N/A Changchun 456 N/A 2% 72 N/A 6,400 N/A Huangshan 130 N/A 0% 17 N/A 7,500 N/A Total: 27,005 25% 2,096 26% 12,900-1% 16 GFA sold ( 000 sqm) Change in GFA sold YoY ASP (RMB/sqm) Change in ASP YoY
Nationwide expansion is basically complete Land bank (as at 31 Dec 2011) Total GFA: approx. 24mn sqm Entered 19 high economic growth cities Sufficient for 3 5 years of development. Changchun Beijing(11%) Fushun Shenyang Qinhuangdao Dalian Tianjin Qingdao Northeast Region (13%) Pan Bohai Rim (47%) Yangtze River Delta and along Yangtze River (19%) Chengdu Chongqing Wuhan Huangshan Zhenjiang Shanghai Hangzhou Zhongshan Shenzhen Haikou Pan Pearl River Delta (10%) Sanya 17
Shareholding structure As of Mar 1, 2012: China Life (2628.HK) Nan Fung Group Public shareholders 24.45% 13.86% 61.69% Sino-Ocean Land (3377.HK) China Life (2628.HK) Nan Fung Group COSCO Int l (517.HK) Public shareholders Total issued capital In mid-december 2010, before COSCO Intl sold all their stakes 24.07% N/A 16.85% 59.08% About 5.6bn As of March 1, 2012 24.45% 13.86% 0 61.69% About 5.66bn Assumed ONLY Nan Fung has converted their PCS Assumed ALL the PCS have been converted 22.43 % 20.97% 0 56.60% About 6.17bn 20.72% 19.37% 0 59.91% About 6.68bn Note: PCS = Perpetual subordinated convertible securities Exchange rate: www.safe.gov.cn 18
Commercial properties in development City Projects Total planned GFA 1 (sqm) Development progress Estimated completion date Attributable interest Beijing 北京 CBD Z6 Project CBD Z6 项目 CBD District 245,000 Planning Planning 80% 2 CBD Z13 Project CBD Z13 项目 CBD District 120,000 (above ground) Planning Planning 29% 3 Area C of Ocean Great Harmony 远洋万和城 C 区 North 4 th Ring Rd Ocean Landscape Eastern Area (E02,03) 北京远洋沁山水, West 4 th Ring Road, 87,000 Construction in progress 2012 103,000 Construction in progress 2013 Chengdu 成都 Tianjin 天津 Jingmian Project 京棉项目 East 4 th Ring Road Daci Project 大慈寺项目 CBD District Ocean International Center 远洋国际中心 City center Sub-total: 1,186,000 Note: 1: Will disclose GFA for investment upon completion. 2: Nan Fung 20% 3: China Life: 70%; Vantone : 1% 4: A JV with Swire Properties 88,000 Construction in progress 2013 35% 258,000 Planning 2014 50% 4 285,000 Construction in progress 2013-2016 96.99% Continue on next page 19
Commercial properties in development (Cont.) City Projects Total planned GFA *(sqm) Development progress Estimated completion date Attributable interest Beijing 北京 Ocean Crown 远洋万和公馆 North of Wangjing District 38,700 Construction in progress 2014 Tianjin 天津 Ocean City 远洋城 Center of Binhai District 92,000 Construction in progress 2013 Dalian 大连 Ocean Worldview 红星海世界观 Development Zone 143,000 Planning 2014 Wyndham Grand Plaza Royale Sino-Ocean 远洋温德姆至尊豪庭大酒店 Ganjingzi District, 110,500 Construction in progress 2014 Ocean MIDTOWN 远洋 Midtown Development Zone 92,000 Construction in progress 2013 Ocean Diamond Bay 远洋钻石湾 Ganjingzi District 550,000 Planning Planning 90% Hangzhou 杭州 Canal Business District 运河商务区 Gongshu District 630,000 Refining project design 2014-2015 51% Shenyang 沈阳 Ocean Paradise 远洋天地 South bank of Hun River 35,000 Planning 2014 Changchun 长春 Ocean Cannes Town 远洋戛纳小镇项目 Southeast of the city 249,000 Planning 2014 51% Fushun 抚顺 Ocean City 远洋城 City center 38,500 Planning 2014 65% Qinhuangdao 秦皇岛 Ocean Century 远洋海世纪 Haigang District 49,000 Planning 2014 Zhongshan 中山 Ocean City 远洋城 Eastern part of city 235,000 Construction in progress 2013 Shenzhen 深圳 Ocean Express 远洋新干线 Longgang District 101,000 Planning 2014 Sub-total: 2,363,700 Total: 3,549,700 *Note: Will disclose GFA for investment upon completion. 20
Our views Ocean City, Zhongshan 中山远洋城
Macro control measures remain unchanged in principle On the whole the control measures on real estate will not relax, nor will new policies be launched. We will see certain tweaking of local policies, such as: Reducing mortgage interest for first purchase Broadening the definition of ordinary housing Raising the loan amount to be taken from the staff s provident fund Supporting the development of ordinary housing Easing of monetary policy. The PBOC has lowered the reserve requirement ratio twice recently. Accumulating rigid demand for real estate will revive the property market. 22
Market trend forecast Third and fourth-tier cities will out-perform first and secondtier cities. Both sales volume and sales price in first-tier cities will decline, making them buyers markets rather than vendors markets Sales volume in popular second-tier cities will be similar to first-tier cities but sales price will be more stable. Performance in the average second-tier cities will vary while third and fourth-tier cities are going to stand out. 23
Industry forecast The industry will become more consolidated. As the bar is raised in the competition, major and branded developers will benefit from their perfected system and policies and continue to deliver good performance. Major branded developers market share in big and medium cities will rise to a higher level. 24
Development strategies for 2012 Our goal: operating sound and safely for development Stringent cost control to improve profitability Speedier turnover to raise effectiveness What will do: be well-prepared for market movements Strengthen our presence in existing cities Creative in business for higher returns 25
Appendices Ocean Worldview, Dalian 大連紅星海世界觀
Appendix 1: Projects booked in FY11 Project Revenue (RMB mn) GFA delivered (sqm) ASP (RMB/sqm) Project type Attributable interest Beijing 北京 Ocean Landscape Eastern Area 远洋沁山水 Ocean Express 远洋新干线 Ocean Landscape 远洋山水 Ocean Seasons 远洋自然 Poetry of River 远洋一方 Ocean Office Park 远洋光华国际 Ocean Great Harmony 远洋万和城 3,044 44 21 125 3,844 27 382 136,127 2,491 1,376 18,771 267,565 15,568 12,299 22,400 17,700 15,300 6,700 14,400 1,700 31,100 Retail, residential Retail, residential Retail, residential Retail, residential Residential Office, retail Residential 70% Tianjin 天津 Ocean Express 远洋新干线 Ocean City 远洋城 Ocean Paradise 远洋天地 Dalian 大连 Ocean Prospect 远洋风景 Xiangsong Project 香頌花城 Ocean Worldview 红星海世界观 Ocean Seasons 远洋自然 1,110 1,128 4 391 27 1,997 850 104,812 131,627 316 25,535 7,729 137,445 73,674 10,600 8,600 12,700 15,300 3,500 14,500 11,500 Office, retail,residential Residential Office, retail Residential Residential Residential Residential 97.05% 96.99% Sub-total: 12,994 935,335 13,900 Continue on next page 27
Appendix 1: Projects booked in FY11 (cont.) Project Revenue (RMB mn) GFA delivered (sqm) ASP (RMB/sqm) Project type Attributable interest Shenyang 沈阳 Ocean Paradise 远洋天地 1,535 174,650 8,800 Residential Zhongshan 中山 Ocean City 远洋城 1,614 169,928 9,500 Retail, residential Sanya 三亚 Ocean Mansion 远洋公馆 614 28,836 21,300 Residential 70% Qinhuangdao 秦皇岛 Wan Hai Yi Hao 湾海一号 122 17,789 6,900 Residential Wuhan 武汉 Ocean World 远洋世界 Ocean Manor 远洋庄园 179 79 34,602 9,457 5,200 8,400 Sub-total: 4,143 435,262 9,500 Total excl. car parks: 17,137 1,370,597 12,500 Parking lots in various projects 481 110,464 4,400 Total incl. car parks: 17,618 1,481,061 11,900 Residential Villa 55% 55% 28
Appendix 2:Update on Completion progress City Projects GFA completed in FY11 (sqm) Target GFA to complete in FY12 (sqm) Beijing 北京 Ocean Great Harmony 远洋万和城 Ocean Great Harmony Plot C (Investment Property) 远洋万和城 C 区 ( 商业 ) Ocean Landscape Eastern Area 远洋沁山水 Poetry of River 远洋一方 Ocean LA VIE 远洋 LA VIE Ocean Oriental Mansion 远洋东方公馆 Ocean Manor 远洋傲北 175,000 340,000 43,000 87,000 82,000 54,000 125,000 67,000 Dalian 大连 Ocean Prospect 远洋风景 Ocean Worldview 远洋紅星海世界观 Ocean Seasons 远洋自然 Ocean Plaza 远洋广场 Ocean Times 远洋时代城 Ocean Holiday Manor (Ocean Valley Lafite) 远洋假日养生庄园 30,000 246,000 116,000 223,000 22,000 293,000 94,000 111,000 Sub total: 907,000 1,201,000 Continue on next page 29
Appendix 2:Update on Completion progress (Cont.) City Projects GFA completed in FY11 (sqm) Target GFA to complete in FY12 (sqm) Tianjin 天津 Ocean Express 远洋新干线 Ocean Great Harmony 远洋万和城 Ocean City 远洋城 Ocean Prospect 远洋风景 171,000 191,000 59,000 312,000 118,000 Shenyang 沈阳 Ocean Paradise 远洋天地 217,000 66,000 Wuhan 武汉 Ocean World 远洋世界 Ocean Manor 远洋庄园 57,000 62,000 Zhongshan 中山 Ocean City 远洋城 210,000 283,000 Sanya 三亚 Ocean Mansion 远洋公馆 55,000 Changchun 长春 Ocean Cannes Town 远洋戛纳小镇 181,000 Shanghai 上海 Ocean Mansion No.7 远洋 7 号 47,000 Sub Total: 963,000 1,066,000 Total: 1,870,000 2,267,000 30
Appendix 3: FY11 Contracted sales details Project Contracted sales amount (RMB mn) GFA sold (sqm) ASP (RMB/sqm) Launch date Attributable interest Beijing 北京 Ocean Great Harmony 远洋万和城 Ocean Express 远洋新干线 Ocean Landscape 远洋山水 Ocean Landscape Eastern Area 远洋沁山水 Poetry of River 远洋一方 Ocean Manor 远洋傲北 Ocean Oriental Mansion 远洋东方公馆 Ocean LA VIE 远洋 LA VIE Ocean Palace 远洋天著 Ocean Office Park 远洋光华国际 2,688 44 14 611 3,007 1,061 467 1,374 248 27 73,350 2,491 1,033 47,849 148,808 50,824 28,684 20,350 9,787 815 36,600 17,700 13,600 12,800 20,200 20,900 16,300 67,500 25,300 33,100 2Q08 2Q07 Last batch 4Q08 4Q07 2Q11 3Q09 4Q11 3Q11 2H09 85.72% Tianjin 天津 Ocean City 远洋城 Ocean Express 远洋新干线 Ocean Paradise 远洋天地 Ocean Great Harmony 远洋万和城 Ocean Prospect 远洋风景 766 691 4 405 656 89,674 63,140 316 34,308 65,998 8,500 10,900 12,700 11,800 9,900 Sub-total: 12,065 637,427 18,928 4Q08 1Q08 Retail 4Q10 3Q11 97.05% 96.99% Continue on next page 31
Appendix 3: FY11 Contracted sales details (cont.) Project Contracted sales Amount (RMB mn) GFA sold (sqm) ASP (RMB/sqm) Launch date Attributable interest Dalian 大连 Ocean Prospect 远洋风景 Ocean Worldview 远洋红星海世界观 Xiangsong Project 香頌花城 Ocean Seasons 远洋自然 Ocean Plaza 远洋广场 Ocean Times 远洋时代城 Ocean Holiday Manor (Ocean Valley Lafite) 远洋假日养生庄园 Shenyang 沈阳 Ocean Paradise 远洋天地 Ocean Residence 远洋公馆 Hangzhou 杭州 Ocean Honored Chateau 远洋公馆 of Canal Business District ( 运河商务区 ) Ocean Canal Milestone 远洋大河宸章 Zhongshan 中山 Ocean City 远洋城 Ocean New Era 远洋启宸 ( 横栏项目 ) 46 2,034 8 199 2,359 1,282 401 999 33 781 87 1,942 109 1,946 176,138 2,287 10,992 176,302 185,756 45,383 102,703 4,224 21,173 3,222 178,376 21,618 23,600 11,500 3,300 18,100 13,400 6,900 8,800 9,700 7,800 36,900 27,000 10,900 5,100 Sanya 三亚 Ocean Mansion 远洋公馆 426 17,312 24,600 4Q10 70% Haikou 海口 Ocean Driftwood Array 远洋浮木阵 76 4,123 18,400 4Q11 70% Continue on next page Sub-total: 10,782 951,555 11,300 4Q07 4Q08 3Q08 2Q10 4Q10 4Q10 2Q11 2Q08 4Q11 2Q10 4Q11 4Q07 4Q11 75.5% 51% 70% 40% 32
Appendix 3: FY11 Contracted sales details (cont.) Project Contracted sales Amount (RMB mn) GFA sold (sqm) ASP (RMB/sqm) Launch date Attributable interest Chengdu 成都 Ocean Langjun 远洋朗郡 527 65,356 8,100 4Q10 51% Chongqing 重庆 Sino-Ocean International GOLF Resort 远洋高尔夫国际社区 150 18,449 8,100 4Q11 97.75% Qinhuangdao 秦皇岛 Wan Hai Yi Hao 湾海一号 Ocean Century 远洋海世纪 Wuhan 武汉 Ocean World 远洋世界 Ocean Manor 远洋庄园 37 550 200 224 4,951 85,399 38,598 23,061 Qingdao 青岛 Ocean Prospect 远洋风景 906 49,116 18,400 3Q11 Shanghai 上海 BOND CASTLE 远洋博堡 Ocean Mansion No.7 远洋 7 号 245 163 3,752 10,328 7,400 6,400 5,200 9,700 65,300 15,800 Changchun 长春 Ocean Cannes Town 远洋戛纳小镇 435 64,558 6,700 3Q11 51% Huangshan 黄山 An Island Paradise 远洋桃花岛 130 17,219 7,500 4Q11 Sub-total: 3,565 380,787 9,400 Total excl. car parks: 26,412 1,969,769 13,400 Parking lots in various projects 593 126,531 4,700 Total incl. car parks: 27,005 2,096,300 12,900 4Q10 4Q11 2Q11 3Q11 4Q11 4Q11 55% 55% 33
Appendix 4: Analysis of buyers backgrounds About 33% of buyers paid all cash upfront Residential (based on number of units sold) FY11 FY10 Cash Mortgage Cash Mortgage High-end 63% 37% 43% 57% Mid-range 31% 69% 31% 69% About 75% of the buyers who used mortgages were first-timers Residential (based on number of units sold) FY11 Upgraders Firsttimers Firsttimers FY10 Upgraders High-end 54% 46% 68% 32% Mid-range 76% 24% 73% 27% About 71% were local buyers Residential (based on number of units sold) With local household registration ( 户口 ) FY11 Without local household registration With local household registration ( 户口 ) FY10 Without local household registration Sino-Ocean 71% 29% 73% 27% 34
Projects Appendix 5: Contracted sale target breakdown for FY12 Time of new/subsequent launches Target GFA sold ( 000 sqm) Project type Attributable interest Beijing 北京 Ocean Oriental Mansion 远洋东方公馆 2Q12 31-34 Mid-range residential Poetry of River 远洋一方 (large-scale) 36-39 Mid-range residential Ocean Landscape 远洋沁山水 3Q12 13-14 Mid-range residential Ocean Palace (Yizhuang Sanyang Project) 远洋天著 4Q12 13-14 High-end residential Ocean Manor (Beiqijia Project) 远洋傲北 3Q12 41-44 Villas Ocean Crown 远洋万和公馆 ( 大望京项目 ) 2Q12 10-11 High-end residential Ocean LA VIE 远洋 LA VIE 3Q12 36-39 Top-end villas 86% Tianjin 天津 Ocean City 远洋城 (large-scale) 2Q12 122-131 Mid-range residential Ocean Express 远洋新干线 57-61 Office, retail 97.05% Ocean Great Harmony (Nihuangzhuang Project) 远洋万和城 23-25 Mid-range residential Ocean Prospect (Zhangguizhuang Project) 远洋风景 3Q12 48-51 Mid-range residential Dalian 大连 Ocean Worldview 远洋紅星海世界观 (large-scale) 3Q12 140-150 Mid-range residential, villas Ocean Plaza (Zhonghualu Project) 远洋广场 52-57 Mid-range residential Ocean Times (University Project) 远洋时代城 2Q12 142-153 Mid-range residential Ocean Holiday Manor (Ocean Valley Lafite) 远洋假日养生庄园 3Q12 56-60 Vacation homes Ocean Midtown (Xishan Project) 远洋 Midtown 2Q12 23-25 Mid-range residential Ocean Diamond Bay 远洋钻石湾 2Q12 61-66 Large-scale multi-purpose 90% Ocean Seasons (Nanguanling Project) 远洋自然 6-7 High-end residential, villas Shenyang 沈阳 Ocean Paradise 远洋天地 (large-scale) 2Q12 68-73 Mid-range residential Ocean Honored Chateau 远洋公馆 (Baishan Beilu Project) 2Q12 33-36 Mid-range residential Sub-total: 1,011-1,090 Continue on next page 35
Appendix 5: Contracted sale target breakdown for FY12 (Cont.) Projects Time of new/subsequent launches Target GFA sold( 000 sqm) Project type Attributable interest Hangzhou 杭州 Ocean Honored Chateau of Canal Business District High-end residential component of 3Q12 17-19 运河商务区之远洋公馆 (large-scale) large-scale multi-purpose 51% Pufu Project 普福项目 3Q12 63-68 Mid-range residential 63% Grand Canal Milestone 大河宸章 ( 杭一棉 ) 14-15 High-end residential 70% Zhongshan 中山 Ocean New Era 远洋启宸 2Q12 80-86 Mid-range residential 40% Ocean City 远洋城 (large-scale) 1Q12 174-187 High-end residential, villas Sanya 三亚 Ocean Mansion 远洋公館 3-4 High-end residential 70% Haikou 海口 Ocean Driftwood Array 远洋浮木阵 18-20 Villas 70% Chongqing 重庆 Sino-Ocean International GOLF Club Project 远洋 2Q12 59-63 Mid-to-high end residential, villas 97.75% 国际高尔夫项目 Wuhan 武汉 Ocean Manor 远洋庄园 13-14 Villas 55% Ocean World (Jinpan Project) 远洋世界 16-18 Mid-range residential and villas 55% Qinhuangdao 秦皇岛 Ocean Century (Ocean New City) (large-scale) 远洋海世纪 121-130 Mid-range residential Qingdao 青岛 Ocean Prospect 远洋风景 ( 浮山项目 ) 32-35 Mid-range residential Ocean Seasons 远洋自然 2Q12 44-48 Mid-range residential Ocean Honored Chateau 远洋公馆 3Q12 7-8 High-end residential Sub-total: 661-715 Continue on next page 36
Appendix 5: Contracted sale target breakdown for FY12 (Cont.) Projects Time of new/subsequent launches Target GFA sold( 000 sqm) Project type Attributable interest Changchun 长春 Ocean Cannes Town 远洋戛纳小镇 2Q12 44-48 Mid-range residential 51% Fushun 抚顺 Ocean City 远洋城 (large-scale) 3Q12 117-126 Mid-range residential 65% Shanghai 上海 BOND CASTLE 远洋博堡 12-13 High-end villa Ocean Mansion No.7 远洋 7 号 2Q12 43-46 Mid-range residential, retail Ocean Chanson Mansion 远洋香奈印象 2Q12 22-23 Mid-range residential Shenzhen 深圳 Ocean Express 远洋新干线 4Q12 61-65 Mid-range residential, retail Huangshan 黄山 An Island Paradise 远洋桃花岛 2Q12 16-18 Mid to high end residential, villa Zhenjiang 镇江 Ocean Beach 远洋香奈河畔 2Q12 89-96 Mid-range residential 55% Sub-total: 404-435 Total: 2,076-2,240 37
Appendix 6: Land acquisitions in FY11 City Project Property type Qingdao 青岛 Ocean Seasons 远洋自然 ( 浮山后 F 地块 ) Shanghai 上海 Ocean Mansion No. 7 远洋 7 号 ( 罗店新镇 A1-3) Ocean Chanson Masion 远洋香奈印象 ( 杨行镇项目 ) Zhenjiang 镇江 Ocean Beach 远洋香奈河畔 ( 官塘项目 ) Fushun 抚顺 Ocean City 远洋城 Attributable planned GFA * (sqm) Attributable land cost (RMB mn) Channel Avg. land cost Time of acquisition Estimated year for sale Attributable interest Residential 147,000 762 Bidding 5,200 January 1H12 Residential, retail 119,000 554 Auction 4,700 January 2H11 Residential 374,000 3,228 Auction 8,600 January 1H12 Residential 466,000 359 M&A 800 January 1H12 55% Residential 861,000 262 Bidding 300 May 2H12 65% Sub-total: 1,967,000 5,165 Note * Planned GFA subject to change during project planning. Continue on next page 38
Appendix 6: Land acquisitions in FY11 (cont.) City Project Property type Hangzhou 杭州 Pufu Project 普福项目 Attributable planned GFA * (sqm) Attributable land cost (RMB mn) Channel Avg. land Estimated Time of cost year for acquisition (RMB/sqm) sale Attributable interest Residential 108,000 677 Auction 6,300 June 1H12 63% Zhongshan 中山 Ocean New Era 远洋启宸 ( 横栏项目 ) Residential, retail 198,000 96 M&A 500 June 2H11 40% Shenzhen 深圳 Ocean Express 远洋新干线 Residential, retail 556,000 1,650 M&A 3,000 October 2H12 Sub-total: 862,000 2,423 Total (Consolidated Requirement): 2,829,000 7,588 Beijing 北京 CBD Z13 CBD Z13 地块 Office and retail 35,000 (above ground) Total: 2,864,000 8,389 801 Tender 22,900 July Under planning 29% (China Life: 70%; Vantone : 1%) Note * Planned GFA subject to change during project planning. 39
Appendix 7: Land bank analysis (as of Dec 31, 2011) By city City Attributable GFA ( 000 sqm) Avg. land cost (RMB per sqm) Beijing 2,349 7,888 Tianjin 2,946 2,051 Dalian 6,360 2,442 Shenyang 497 1,388 Changchun 593 1,417 Fushun 861 305 Qinhuangdao 1,423 689 Qingdao 431 7,446 Shanghai 717 8,003 Hangzhou 694 6,597 Sub-total: 16,871 City Attributable GFA ( 000 sqm) Avg. land cost (RMB per sqm) Zhenjiang 502 714 Huangshan 90 1,556 Wuhan 267 535 Chongqing 568 2,178 Chengdu 208 5,313 Zhongshan 1,486 983 Shenzhen 556 2,968 Haikou 76 2,726 Sanya 23 17,442 Sub-total: 3,776 Total: 20,647 3,029 Continue on next page 40
Appendix 7: Land bank analysis (cont.) By time of acquisitions Time of acquisition Before 2007 2 2007 2 2008 2009 3 2010 2011 TOTAL Attributable GFA mn sqm 1 As % of total land bank 2.18 3.99 1.29 2.90 7.39 2.90 20.65 11% 19% 6% 14% 36% 14% Avg. land cost per sqm (RMB) 1,665 2,562 1,926 2,765 4,032 2,893 3,029 Notes: 1. GFA subject to change during project planning. 2. In 2007 and before, the group acquired lots of 800 k 2 mn sqm large scale projects. 3. Included the increase in stake in Ocean Worldview and acquisition of two other projects in Dalian. The entire acquisition was completed on Jan 2, 09. 41
Appendix 8: Key terms of Perpetual Subordinated Capital Securities (PSS) and Perpetual Subordinated Convertible Securities (PCS) PSS Issued in May 2011, raised USD400mn. Accounting treatment: equity accounting. Callable in 5 years. No repayment obligation. Fixed distribution rate of 10.25% per annum for the first five years, which is discretionary and deferrable. Subordinated to claims of all indebtedness of Sino-Ocean but senior to claims of all classes of equity and the perpetual subordinated convertible securities issued last year. Provides long-term financing for revenue generating investment properties and reduces leverage. PCS Issued in July 2010, raised USD900mn. Accounting treatment: equity accounting. No repayment obligation and no covenants. Lock up period is one year. Issued at premium (HK$6.85) with 8% distribution rate per annum that is discretionary and deferrable. Subordinated to claims of all indebtedness of Sino-Ocean and PSS but senior to claims of all classes of equity. Provides growth capital to Sino-Ocean and reduces leverage. 42
Appendix 9: Beijing project locations 43
Appendix 10: Dalian project locations 44
Appendix 11: Tianjin project locations 45
Appendix 12: Shanghai project locations 46
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