Shui On Land (0272.HK) 2011 Investor Newsletter - Issue 1

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1 Sales update & sales target Year to April contracted sales: RMB4,40 million or 4% of our 20 sales target. RMB 3,77 million was residential sales with a total GFA of 9,700 sq.m. (up 75% year on year on sales value and 50% year on year in terms of GFA) and RMB963 million from an office en-bloc sales of Lot A5 (Corporate Centre No. 5) at Wuhan Tiandi. Major contribution from residential sales were Wuhan Tiandi (30%), Shanghai Rui Hong Xin Cheng(28%), Foshan Lingnan Tiandi(4%), Chongqing Tiandi(3%), Dalian Tiandi(8%). Total lock-in sales to be delivered in 20 and beyond: RMB 6,992 million. of which RMB2,852 million was carried forward from previous years. Total GFA available for sale in 20: 756,000 sq.m. of which 506,000 sq.m. are residential properties and 250,000 sq.m. are commercial property en-bloc sales (mainly offices towers and retail areas under construction). 20 contracted sales target: RMB0 billion including residential property sales and commercial property en-bloc sales. Our new initiative to increase asset churn of the commercial properties was largely accomplished in April In April, SOL has entered into a pre-sale contract with Ping An Life Insurance Company of China, Ltd ( Ping An ) for an en-bloc sales of Lot A5 (Corporate Centre No. 5) at Wuhan Tiandi for a total consideration of RMB 963million. The office tower is an international Grade A office building, with a total office GFA of 57,000 sq.m., retail GFA of 2,000 sq.m., and clubhouse and carparks. Ping An intends to retain a few floors for its own use and lease out the remaining areas. Having Ping An, one of the biggest renowned financial institutions in China, as the new landlord, we believe it will further attract more quality tenants to flourish and hasten the blossom of our project. The transaction not only will enhance the tenants base and the residential demand at Wuhan Tiandi, but also free up the company s capital and increase the asset churn of commercial properties. Superstructure works at Lot A5 were completed in April 20, and delivery is expected to take place later this year.

2 Latest launch: The launch schedule in 20 is expected to be more evenly distributed across four quarters Shanghai Taipingqiao The Manor: 4 more units were subscribed in April 20, at an average price of approximately RMB 50 million. So far, 0 out of 8 units were subscribed with sales totaling RMB499 million. The average selling price ( ASP ) ranged from RMB30,000 per sq.m. to RMB60,000 per sq.m.. Shanghai Rui Hong Xin Cheng: Phase 4 Towers & 2 (total 326 units) were launched in mid-april with a strong take-up rate of around 60% on the first day of launch. The ASP was RMB40,700 per sq.m., up 6% over the last market launch in December 200. Total subscribed sales were RMB870 million. Wuhan Tiandi: The second block of Phase 3 units (Lots A&A2) was launched in early March. 42% of the units were sold at an ASP of RMB33,200 per sq.m.. Total contracted sales since the first launch on 29 December 200 are RMB. billion. Chongqing Tiandi: The first block of Phase 3 (Tower 6) was launched on 25 December 200 and were substantially sold. Phase 3 (Tower 4) was launched in February, with an ASP of RMB3,000 per sq.m. Most of the units in Tower 4 are small garden view units with unit size from sq.m.. Foshan Lingnan Tiandi: Townhouses of the Legendary Phase (Lot 4) were launched in mid-february. 32 out of 38 units were subscribed with an ASP of RMB40,300 per sq.m.. Apartments and townhouses from Phase 2 are planned for launch in 4Q 20. Dalian Tiandi: The Greenville Phase has sold 22 units of townhouses and high-rise apartments from January to April. ASP were averaged at RMB,800 per sq.m.. More units are expected to be launched in May 20. Shanghai Taipingqiao - The Manor after re-positioning and upgrade 2

3 Shui On Land (0272.HK) Phase 4 (Towers and 2) of Rui Hong Xin Cheng was launched in mid-april. Despite the implementation of purchase restrictions and other austerity measures, we managed to sell approximately 60% of total 326 units on the first day of market launch. The customer profile of Towers and 2 is similar to the previous launch. Towers &2 Towers 5&6 Customer profile of Towers and 2: Shanghainese: 90% Non-Shanghainese: 0% Cash payment: 30% Mortgage: 70% First time buyers: 60% Second time buyers: 30% 3

4 Shui On Land (0272.HK) New master plan was approved in early 20 Since the city government re-positioned the Northern Bund area to be an international shipping and logistics hub by 2020, we proposed a revision on our project master development plan, in order to enhance our project value and contribute to the local community. Approved in early 20, the re-zoning plan will transform the area into a Live-Work-Play community. The development will include office, retail, hotel, entertainment, cultural and residential usage. Buyback of non-retail portion on Lot 6 from Winnington Capital Location of Shanghai Rui Hong Xin Cheng On April 20, the company bought back all of the 24.75% effective rights and interests owned by a subsidiary of Winnington Capital pertaining to the non-retail portion on Lot 6, at an aggregate consideration of RMB378.3 million. After the acquisition, SOL will own 99% of non-retail portion on Lot 6. The non-retail portion includes residential GFA of 6,000 sq.m. and clubhouse of 3,200 sq.m. and 695 residential carparks. Lot 6 is currently under construction, and is scheduled to have a market launch in 202. Rui Hong Xin Cheng is a large re-development project in downtown Shanghai. It is to the north of the Northern Bund and approximately 0 minutes driving time away from Lujiazui Financial Zone via Xinjian Road cross river tunnel. In addition, there are three metro lines within the project area that connect the project to downtown Pudong, Puxi and the Hongqiao Airport. Lot 6 Upon completion, there will be a commercial belt connecting two metro stations Faster relocation progress Under the new relocation scheme, the second round of relocation consultation on Lot 3, 2, 9, 0 has been completed as of 3 March 20, with the relocation rate of 77%, 74%, 76%, 74%, respectively. The GFA of the four lots is 569,000 sq.m.. 4

5 Showflats at Lots A&A2 of Wuhan Tiandi The superstructure works of Lots A&A2 were completed Customer profile of A&A2: Wuhan residents: 85% Non-Wuhan residents: 5% Mortgage: 44% Installment: 27% Cash payment: 29% First time buyers: 30% Second time buyers: 70% Residential Phase 4 (Lots B9&B): Construction works have been already started. Planned saleable GFA will be 26,000 sq.m.. Pre-sale is scheduled for late 20 or early 202 Lot B9&B 5

6 Phase Chongqing Tiandi Man-made Lake Office & Retail Phase 3 Phase 2 Located in the Yuzhong District of Chongqing Partial areas at Lot B2 are designated for en-bloc sales Chongqin Tiandi B2- B2-3 B2-4 Customer profile: Chongqing residents: 67% Non-Chongqing residents 23% Cash payment: 34% Mortgage: 66% First time buyers: 25% Second time buyers: 75% METRO 6

7 Customer profile of Phase : Foshan residents : 55% Non-Foshan residents: 0% Hongkonger: 32% Foreigner: 3% Cash Payment: 52% Mortgage: 48% Showflats of Townhouse Phase Foshan the Regency Phase 2 (Lot 5) and the Legendary Phase 2 (Lot 5) are expected to be launched in 4Q 20. GFA available for sale will be 39,200 sq.m. and 7,000 sq.m. respectively. Dalian Tiandi formed a strategic partnership with Mitsui Fudosan Grand opening of IT Tiandi in April 20 Customer profile of Dalian Tiandi: Dalian residents: 89% Non-Dalian residents: % Cash payment: 25% Mortgage: 75% First time buyers: 37% Second time buyers: 63% 7

8 New shops at Shanghai Xintiandi and Xintiandi Style LA FINCA 2. Fiona s Prince 3. CARAT 4. 梧桐居 5. HuangShuChi 黄淑琦 6. 王德传茶庄 8

9 New shops at Wuhan Tiandi. FINN HOME 2. 芙蓉堂 3. Mira 4. NARAYA 5. 彩云南 德巴与彩云书店 7. 黄记煌 9

10 New shops at Chongqing Tiandi ISPACE.SPA 2. STONE GRILL 3. CARAT LINA 4. 大渔 5. UNEEI 6. 维多利亚 7. 阿拉比卡咖啡 君顶 9. 香宴

11 SOL announced its 200 Annual Results on 6 March 20. Mr. Freddy Lee was appointed as CEO, while Mr. Vincent Lo assumed the role of Chairman. Following the results announcement, the senior management and the investor relations team conducted a three-week global road show in Hong Kong, Singapore, Europe and the USA Shanghai Taipingqiao Corporate Avenue Phase 2 (Lot 26) commenced construction in March Shanghai Hongqiao Tiandi ground breaking ceremony was held in March Join Shui On Club! A huge variety of gifts available for the members. More details on www. shuionclub.com Shui On Gallery is now open for public, showcasing the master development plans of all of our projects. It is located next to Shanghai 88 Xintiandi Hotel.

12 st Asian Excellence Recognition Awards 20 by Corporate Governance Asia Thanks for the strong support from the senior management and the project management teams, the investor relations team was awarded the "Best Investor Relations by Hong Kong Company" prize at the st Asian Excellence Recognition Awards 20" presented by Corporate Governance Asia. Michelle Sze, Head of Investor Relations, was also recognized as the "Best Investor Relations Officer by Hong Kong Company". Investor Relations Calendar Date Event City 7-30 March, 7-8 April 20 Post Results Roadshow HK, Singapore, UK, Amsterdam, US 8 April 20 BNP Paribas Corporate Access Day Hong Kong 9 April 20 DBS Corporate Access Day 6-7 May 20 Macquarie Property Conference 6-7 May 20 CITI Asia Pacific Property Conference Hong Kong Sydney Singapore -3 May 20 Macquarie Asia Property Conference Hong Kong 6 May 20 Morgan Stanley HK Summit Hong Kong 6 May 20 Deutsche Bank Fixed Income Corporate Access Day Hong Kong 7 May 20 The Euromoney RMB Forum Hong Kong 9 May 20 Annual General Meeting Hong Kong 9-20 May 20 Yuanta Chongqing Conference Chongqing 20,23,24 May 20 Investor Open Day Chongqing, Shanghai, Wuhan If you are interested in the coming IR events, please do not hesitate to contact your broker or us for registration. IR Contact Michelle Sze, Head of Investor Relations Tel: ext 30 michelle.sze@shuion.com.cn Doreen Chiu, Senior Manager Sally Wu, Manager Christy Zhang, Officer Tel: ext doreen.chiu@shuion.com.hk Tel: ext sally.wu@shuion.com.cn Tel: ext christy.zhang@shuion.com.cn Disclaimer The materials and information in the newsletter and other documents are un-audited & for information purposes only. They are not an offer or solicitation for the purchase or sale of any securities or financial instruments or to provide any investment service or investment advice. Company Website 2