Latest Project. Longfor Properties newly entered the Zhuhai market, spanning its business across 33 cities nationwide.

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1 Latest Project On 11 December, the Group acquired Gaobeidian III plot in Baoding (Longfor equity interest: 70%). The plot is located at the junction of Xiong an district and Beijing and in new town district at the outer ring of Beijing with high-speed railway, highway and public transportation connected to Beijing city area. The plot will be developed alongside with the Gaobeidian project acquired in The project covers a site area of 21,300m 2, with a planned GFA of 53,300 m 2 (planned attributable GFA 37,300 m 2 ). The land price attributable to the Group s equity holding amounted to RMB50 million and an accommodation value of RMB1,262/m 2. The plot will be developed into a passive ecological residential community targeting On 29 December, the Group acquired Gaoxin District Beiwei plot in Zhuhai. The plot is located at Technology Innovation Coastal north section in the Gaoxin District. The plot is near Zhuhai North Station and planned Metro Line 2. The plot is easy to access, while the surrounding education, living and commercial facilities are abundant. The plot covers a site area of 11,100m 2, with a planned GFA of 33,400 m 2. The total land price of RMB502 million and an accommodation value of RMB15,020/m 2. The plot will be Longfor Properties newly entered the Zhuhai market, spanning its business across 33 cities nationwide. In December, the Group acquired the Chunxiao 160 plot in Ningbo (Longfor equity interest: 50%). Located at the core of the Meishan New District, the plot is next to the Group s hot project Rose and Ginkgo Coast and the 161 plot, which was acquired in June. The plot has outstanding scenery, easy to access and has comprehensive amenities nearby. The plot covers a site area of 106,300 m 2, with a planned GFA of 223,200 m 2 (planned attributable GFA 111,600 m 2 ). The land price attributable to the Group s equity holding amounted to RMB436 million and an accommodation value of RMB3,910/ m 2. The plot will be

2 In December, the Group acquired Zishanzhuangyuan project in Xi an (Longfor equity interest: 60%). The project is located at the core of Gaoxin District and easy to access with comprehensive amenities. Well-known enterprises such as Huawei, ZTE and other engineering schools are gathered within the district and residential demands are high. The project covers a site area of 111,000 m 2, with a planned GFA of 124,100 m 2 (planned attributable GFA 74,500 m 2 ). The land price attributable to the Group s equity holding amounted to RMB742 million and an accommodation value of RMB9,960/m 2. The plot will be In December, the Group acquired two Tongxiang plots in Jiaxing (Longfor equity interest: 50%). The plots are located at Gaoqiao New District, within 1 km from Tongxiang Railway Station, which has formed an excellent transit connection between Shanghai and Hangzhou, within a 10 minute car ride from city center CBD and easy to access with comprehensive amenities. The project covers a site area of 113,500 m 2, with a planned GFA of 170,200 m 2 (planned attributable GFA 85,100 m 2 ). The land price attributable to the Group s equity holding amounted to RMB415 million and an accommodation value of RMB4,876/m 2. The plot will be In December, the Group acquired Xinhua Printing Plant project in Chengdu (Longfor equity interest: 80%). The project is located in Renming North Road of Chengdu North-South Axis, the city s core district. It is above two metro stations (Metro Line 1 and 6). The project covers a site area of 84,400 m 2, with a planned GFA of 603,000 m 2 (planned attributable GFA 482,400 m 2 ). The land price attributable to the Group s equity holding amounted to RMB1.094 billion and an accommodation value of RMB2,268/m 2. The project will be developed into a commercial complex comprising Paradise Walk shopping mall.

3 In December, the Group acquired Tangcheng project in Jinan (Longfor equity interest: 20%). The project is near the core development of Tuhe East and Feiyue Avenue plots that were acquired in August 2017 and Jinan city s eastern core development zone. The project covers a site area of 153,600m 2, with a planned GFA of 380,300m 2 (planned attributable GFA 76,100m 2 ). The land price attributable to the Group s equity holding amounted to RMB291 million and an accommodation value of RMB3,820/m 2. The project will be developed into a midto high-end residential community targeting In December, the Group acquired West Lake Jiangcun Street plot in Hangzhou (Longfor equity interest: 30%). The project is near the planned Longfor Paradise Walk (at Zijingang plot that was acquired in April 2017), within 1 km from Jiangcun Station Metro Line 5 (will be built by 2019) and within 2km from Xixi Wetland scenic area with comprehensive amenities. The project covers a site area of 56,800m 2, with a planned GFA of 136,200m 2 (planned attributable GFA 40,900m 2 ). The land price attributable to the Group s equity holding amounted to RMB1.295 billion and an accommodation value of RMB31,698/m 2. The project will be Company News In December, Moody's upgraded the senior unsecured debt ratings on the bonds issued by the Group to Baa3 from Ba1. The outlook is stable. On 5 January 2018, Fitch Ratings has upgraded the Group s Long-Term Issuer Default Rating, senior unsecured rating and the ratings on its outstanding notes to BBB from BBB-. The outlook is stable. The ratings have been further upgraded after the Group became a full investment-grade private property developer in domestic and international in March It reflects rating agencies are optimistic on Longfor Properties high-quality operational capability, prudent financial management and good credit history.

4 On 8 January 2018, the Group successfully issued US$800 million investment-grade senior notes, including US$300 million of 5.25 year senior notes with a coupon rate of 3.9%, and US$500 million of 10 year senior notes with a coupon rate of 4.5%. The issue was eight times oversubscribed, while proceeds from the bonds will be used for refinancing, including redeeming US$500 million of 6.75% senior notes due 2023, which was announced on 9 January. As the first investment-grade overseas issuance of mainland property in 2018, Longfor Properties realized issuance with longer term and lower cost, meanwhile further enhancing the Group s debt structure. On 16 December, Longfor Properties opened its second shopping center that is above station in Shanghai - Baoshan Paradise Walk. It is located at the core of New City in northern Shanghai, fulfil the emptiness of large scale commercial complexes in the area, introducing consumption experience to surrounding residents. Baoshan Paradise Walk has a total floor area of 140,000 square meters and 99% of the shops are leased while brands commence of operation has reached 99%. As of the end of 2017, the Group has opened 26 shopping centers.

5 Sales Overview In 2017, the Group recorded aggregated annual contracted sales of RMB billion, representing y-o-y growth of 77.1%, exceeds and meets the annual contracted sales target, with the contracted GFA sold amounting to million m 2. In December, the Group recorded contracted sales of RMB7.64 billion, with contracted GFA sold amounting to 431,000 m Contracted Sales Regional Breakdown: (RMB mn) Contracted Sales Western Pan Bohai Rim Yangtze River Delta Central China Southern China 36,730 50,330 49,600 2,800 16,620 (All figures above are unaudited)