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Newsletter July 2015



Central China Real Estate Limited is one of the leading Henan-based property developers that focus on developing of high-quality residential properties. Known for its outstanding product quality, strong brand awareness and its experienced management team, the company was ranked 26th among the "Top 500 Chinese Property Developers in 2014", according to "2014 Research Report on Top 500
Chinese Property Developers" co-published by China Real Estate Research Association, China Real Estate Association and China Real Estate Appraisal, and topped the list of "Top 10 Chinese Property Developers in Regional Operations" for the sixth year in a row and repeatedly ranked in top 5 operations performance among the listing property companies in China, being the only central China based property developer among the top 30 and the top real estate developer in Henan.

LATEST NEWS CCRE Achieved Contracted Sales of RMB 6 billion for the first six months, 34% lock-in of the annual sales target 17.5 billion

In the first six months of 2015, CCRE achieved total contracted sales of RMB5.96
billion, representing a y-o-y decrease of 10% (6M2014: RMB6.62 billion), with contracted GFA sold of 1,208,657 sq.m., representing a y-o-y increase of 24.9% (6M2014: 967,328 sq.m.). The ASP for the first six months 2015 was RMB4,929/sq.m., representing a y-o-y decrease of 28.0% (6M2014: RMB
6,843/sq.m.) due to changes in product mix and promotional activities in 1H2015.
The contracted sales for the month of June was RMB1.58 billion, representing a m-o-m increase of 50.9% and a y-o-y decrease of 38.5% (June 2014: RMB2.56 billion). Contracted sales GFA for June was 277,300 sq.m., was up 9% m-o-m and down 21.6% y-o-y (June 2014: 353,676 sq.m.). The ASP achieved in June was RMB5,683/sq.m., up 38.4% m-o-m on increased sales contribution from Zhengzhou projects, with a y-o-y decrease of 21.6% (June 2014: RMB7,250/sq.m.) due to changes in product mix.

The monthly contracted sales in June were supported by:

i. Four new projects launched in June, namely Luoyang Wisdom Port, Sanmenxia Code One City, Xuchang Code One City and Luoyang Poly Champagne International;
ii. New launched projects achieve first day sales/subscription of 70%;
iii. Zhengzhou projects accounted for approximately 15% of the sales;
iv. Lower tier 3 & 4 cities projects in Henan accounted for 74% of the sales;
v. County level cities projects in Henan contributed 11% of the sales;
vi. Contracted sales continues to be diversified, with sales coming from 54 projects located in the 2nd, 3rd, and 4th tier cities and county level cities in Henan;

The breakdown of the contracted sales in June is provided on the next page.

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Stock Data (As at 14 July 2015)

Price/share

HK$1.92

Market Cap:

Approximately HK$4,673 mn

52-Week Range

HK$1.68-HK$2.68

Shares Outstanding:

2,433.64 mn shares

Newsletter July 2015


Summary Breakdown of the Contracted Sales in June 2015:

City

Project Name

Contracted

Sales

(RMB mn)

Contracted

Volume

(Sq. m.)

ASP

(RMB/ Sq. m.)

Nanyang

Triumph Plaza

315.67

35,396

8,918

Zhengzhou

Tihome Jianye International City

121.38

14,277

8,502

Luohe

Forest Peninsula

81.06

17,207

4,711

Sanmenxia

Code One City

73.62

16,594

4,437

Luoyang

Wisdom Port

59.15

7,899

7,489

Shangqiu

Eighteen Cities

58.67

8,227

7,131

Xinxiang

Code One City

44.60

9,735

4,581

Pingdingshan

Eighteen Cities

43.38

8,506

5,100

Xuchang

Code One City

42.33

9,337

4,534

Xinyang

Code One City

40.40

6,944

5,817

Hebi

Code One City

40.22

8,869

4,535

Zhoukou

Forest Peninsula

40.05

9,912

4,040

Zhengzhou

Gongyi Code One City

36.79

8,037

4,578

Luohe

Code One City

35.94

7,689

4,674

Pingdingshan

Sweet-Scented Osmanthus Garden

35.54

6,571

5,408

Jiyuan

U-Town

33.37

8,351

3,995

Xuchang

Changge Sweet-Scented Osmanthus Garden

32.31

7,457

4,333

Zhengzhou

Shangjie Forest Peninsula

31.85

8,513

3,741

Zhumadian

Eighteen Cities

31.46

6,501

4,840

Kaifeng

Dreamlike Glory

30.29

1,303

23,239

Zhengzhou

Spring Time

26.02

2,764

9,412

Puyang

Sweet-Scented Osmanthus Garden

24.76

5,244

4,721

Luoyang

Sweet-Scented Osmanthus Garden

23.96

4,118

5,818

Zhengzhou

Sky Mansion

23.03

1,062

21,679

Puyang

Code One City

21.73

4,859

4,473

Anyang

Sweet-Scented Osmanthus Garden

20.76

6,012

3,452

Jiaozuo

Code One City

19.89

4,107

4,843

Xinxiang

Changyuan Forest Peninsula

18.56

3,665

5,063

Zhumadian

Xiping Forest Peninsula

15.88

4,074

3,897

Anyang

Tangyin Forest Peninsula

14.97

4,295

3,486

Luoyang

Huayang Square

14.18

584

24,306

Pingdingshan

Wugang Forest Peninsula

12.22

3,549

3,442

Xinyang

Nanwan Lake No.1

12.14

1,475

8,230

Xuchang

Yanling Eco-City

11.64

2,060

5,652

Pingdingshan

Baofeng Forest Peninsula

11.13

3,348

3,323

Shangqiu

Zhecheng U-Town

11.04

3,101

3,559

Jiaozuo

Forest Peninsula

9.50

1,241

7,658

Jiaozuo

Xiuwu Forest Peninsula

8.69

2,782

3,125

Jiyuan

Code One City

6.52

946

6,894

Zhumadian

Suiping Forest Peninsula

6.08

1,762

3,452

Xinxiang

U-Town

6.06

1,431

4,232

Others

29.20

7,494

3,896

Total

1,576

277,300

5,683



Major Project Launch Newsletter July 2015

In the month of June, CCRE launched four new projects/phase in Luoyang, Sanmenxia and Xuchang cities in Henan. The aggregate saleable resource of the new project launches total RMB805.94 million. The first day of launches achieved strong sales and subscription rate on average of 70%, with sales subscription to be converted into contracted sales over the coming months.

A Summary of the Major Projects Launched in June 2015 is Provided Below:

Project Launch

Date


Luoyang Wisdom

Saleable Contracted Sum

(RMB Mn)

Amount Sold in the First Day

of Sales Launch

(RMB Mn)

Sales

/Subscripti on Ratio (%)

Saleable GFA (sq.m.)

GFA Sold in the First Day of Sales Launch (sq.m.)

GFA Sold

/Subscription

Ratio

(%)

Port 20 June 206.43 149.46 72% 27,668 19,717 71%
Sanmenxia Code
One City Phase IV 20 June 124.63 95.26 76% 26,399 20,221 77%
Xuchang Code One
City Phase I 27 June 69.80 55.84 80% 15,510 12,408 80%
Luoyang Poly
Champagne
International
27 June 405.07 266.20 66% 59,774 39,449 66%

Total 805.94 566.76 70%

Henan Property Market Remains Stable up 0.04% y-o-y, CCRE Maintains Market Share at 4.53%

In the first five months of 2015, the Henan real estate market was almost flat with contracted sales recorded RMB96.62 billion, up 0.04% y-o-y (5M2014: RMB96.58 billion), according to Henan Provincial Bureau of Statistics. CCRE's contracted sales in the first five months of 2015 reached RMB4.38 billion, representing a market share of 4.53%1 for the total Henan real estate market.
Henan transaction volume in first five months reached 20.83 million sq.m., representing a y-o-y decrease of
0.67% (5M2014: 20.97 million sq.m.). In terms of contracted GFA, as at the end of May 2015, CCRE accounted for 4.47%2 of the overall Henan real estate market. The average transacted price for property sales in Henan in the first five months of 2015 was RMB4,639/sq.m., up 0.71% y-o-y (5M2014: ASP RMB4,605/sq.m.) and a achieved a y-t-d increase of 6.23% (FY2014: ASP RMB4,366/sq.m.).

Notes: 1CCRE's contracted sales as at 31 May 2015 / Total contracted sales of Henan Province as at 31 May 2015 from Henan Provincial Bureau of Statistics; 2CCRE's contracted GFA as at 31 May 2015 / Total contracted GFA of Henan Province as at 31 May 2015 from Henan Provincial Bureau of Statistics



Newsletter July 2015 Land Acquisition

In June our company withheld from acquiring new land parcels. In accordance with our strategic land acquisition this year, in the first half of 2015 approximately 78% of new land acquisition GFA was acquired in Zhengzhou city.

Land Bank Summary as at 30 June 2015

As at 30 June 2015, the estimated total land reserve GFA for new development is approximately 20.48 million sq.m., up 2.9% y-o-y, (with attributable GFA of 17.37 million sq.m.) at an average cost of RMB812/sq.m., up
22.3% y-o-y from RMB664/sq.m. in June 2014.

(Note: estimated GFA for new development may vary depending on the projects' final design)

A Summary of the Land Acquisition in 2015 (as at 30 June 2015) is Provided Below:

Acquisition

Date Project Name City Location

Project

Type

Average GFA Land Cost (RMB/sq.m.)

Total GFA (sq.m.)

Total Land Premium (RMB

Mn)

Attribut- able GFA (sq.m.)

Interest Attribut- able to CCRE (%)

19/01/2015 Yanling

Eco-City

22/01/2015 Yongcheng

Project

13/02/2015 Wulongkou

Project

Tihome

Yanling County, Xuchang

Yongcheng City, Shangqiu

Gaoxin District, Zhengzhou

North of 311

National Rd, Chenghua Dian Zhen West of Zhongyuan Rd, North of Yongsu Rd East of Huafei East Rd, North of Xiwang Rd South of the Ganqu

Residential, Commercial, Hotel

Residential, Commercial, Carpark

Residential, Commercial, Carpark

Residential,

961 95,462 91.8 57,277 60%

767 232,272 178.1 232,272 100%

996 583,558 581.0 262,601 45%

24/04/2015

Jianye

International

City

Erqi District,

Zhengzhou

South Road,

West of the

Daxue

Commercial, Carpark

1151 583,283 671.5 297,474 51%

South Road

2015 Land Acquisition Total 1,019 1,494,575 1,522 849,625

Industry Policy News

Zhengzhou Revised up HPF Contribution Cap Effective from July


According to the news of Guandian, from July onwards, Housing Provident Fund Management Center of Zhengzhou revised up the contribution cap in regard of the contribution to the city's HPF. The reference will be made to the average yearly salary of employees in 2014 (RMB49,279). Citizens with higher than average salary have to contribute at least 10% of income to HPF. Monthly HPF contribution will be capped at RMB2,956 per month while the floor standard was RMB1,400 across Zhengzhou city.

Company News Newsletter July 2015

Update on Business Strategies - Voluntary Announcement

On 6 June 2015, the Company had held a press conference in Zhengzhou city, Henan to provide an update on the upcoming business strategies of the Group. A summary of the latest business strategies of the Group is set out as follows:

1. Enterprise Platform: The Group will reshape its enterprise platform with the most forefront management concepts, expose its manufacturing process to its customers, create personalized products, open its service platform internally and externally, to create a "Big Jianye" business eco-system, and aim to promote quick and qualitative services to its customers;

2. Product Innovation: The Group will locate the site for residential housing industrialization, and co-operate with leading brands in the industry in order to solve all housing renovation problems of its customer in a once-and- for-all manner;

3. Personalized Services: With the help of the online-to-offline (O2O) social platform and the "E + home"

community service stations, the Group will provide comprehensive residential service to the customers.

CCRE Entered into the Capital Increase Agreement with Zhongyuan Trust Co, Ltd

On 9 June 2015, CCRE entered into the Capital Increase Agreement with Zhongyuan Trust, pursuant to which Zhongyuan Trust agreed to make a capital contribution of RMB330 million to Jianye Union Property Development Limited, an indirect wholly-owned subsidiary of the Company. Upon completion of the Capital Increase, the equity interest of the Company in Jianye Union will be diluted from 100% to 65.625% and Zhongyuan Trust will hold
34.375% equity interest in Jianye Union. Jianye Union will cease to be a subsidiary and become a jointly-controlled entity of the Company due to the loss of control of the board of directors of Jianye Union.
Following completion of the Capital Increase, it is proposed that the Group will enter into the Equity Pledge Agreement with Zhongyuan Trust, which the Group shall pledge its 65.625% equity interest in Jianye Union to Zhongyuan Trust as security for certain obligations of the Group under the Capital Increase Agreement and the Equity Pledge Agreement.

CCRE Entered into the Investment Agreement with Orient Minerva Asset Management Co. Ltd

On 16 June 2015, the company announced that Orient Minerva will make the capital contribution of RMB150 million (equivalent to HK$187.5 million) to our Global Food City project in Zhengzhou; and Orient Minerva, Global Food City and Huishang Bank, Luyang Branch shall enter into the Entrusted Loan Agreement that Orient Minerva shall provide Global Food City with the Entrusted Loan of RMB150 million (equivalent to HK$187.5 million). Also, CCRE shall enter into the Guarantee Agreement and the Equity Pledge Agreements and the Land Charge Agreement with Orient Minerva that the CCRE Group shall provide the Guarantee, the Equity Pledges and the Land Charge for the repayment obligations of Global Food City in respect of the Entrusted Loan.
Global Food City is an indirect wholly-owned subsidiary of the Company held as to 89.67% and 10.33% by CCRE Investments and CCRE China, and has a registered capital of RMB203.2 million (equivalent to HK$254 million). Upon completion of the Investment Agreement and the Capital Increase Agreement, Global Food City will have an enlarged registered capital of RMB353.2 million (equivalent to HK$441.5 million); and the equity interest in Global Food City will be held as to 51.58%, 42.47% and 5.95% by CCRE Investments, Orient Minerva and CCRE China, respectively.

Since CCRE will remain a significant influence over the economic activity of Global Food City based on the decision-making process of its board of directors, Global Food City will be accounted for as an associate of the Company.

Newsletter July 2015

DISCLAIMER

This document has been prepared by Central China Real Estate Limited (the "Company") and is subject to change without notice. The information contained in this newsletter has not been independently verified. No representation or warranty, express or implied, is made and no reliance should be placed on the accuracy, fairness or completeness of the information presented. The Company, its affiliates, or any of their directors, officers, employees, advisers and representatives accept no liability whatsoever for any losses arising from any information contained in this presentation or otherwise arising in connection with this document.
This newsletter does not constitute or form part of, and should not be construed as, an offer to sell or a solicitation of an offer to buy any securities in the United States or any other jurisdictions in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction, and no part of this presentation shall form the basis of or be relied upon in connection with any contract or commitment. No securities may be offered or sold in the United States absent registration or an applicable exemption from registration requirements. Any public offering of securities to be made in the United States will be made by means of a prospectus. Such prospectus will contain detailed information about the Company making the offer and its management and financial statements. No public offering of any securities is to be made by the Company in the United States. Specifically, this presentation does not constitute a "prospectus" within the meaning of the U.S. Securities Act of 1933, as amended.
This newsletter contains statements relating to the Company's financial condition, results of operations and business, the Company's strategies and future prospects and information about the real estate industry and Chinese economy and global economy which are forward-looking. Such forward-looking statements are only predictions and are not guarantees of future performance. You are cautioned that any such forward-looking statements are and will be, as the case may be, subject to both known and unknown risks, uncertainties and factors relating to the operations and business environments of the Company and the real estate industry and market and economic conditions that may cause the actual results of the Company to be materially different from any future results expressed or implied in such forward-looking statements. All forward-looking statements that are made in this newsletter speak only as of the date of such statements. The Company expressly disclaim a duty to update any of the forward-looking statements.

The information herein is given to you solely for your own use and information, and no part of this document may be copied or reproduced, or redistributed or passed on, directly or indirectly, to any other person (whether within or outside your organization/firm) in any manner or published, in whole or in part, for any purpose. The distribution of this document may be restricted by law, and persons into whose possession this document comes should inform themselves about, and observe, any such restrictions.

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