Country Garden : ANNUAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2018

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COUNTRY GARDEN HOLDINGS COMPANY LIMITED ၀࣭෤છٰϞࠢʮ̡

(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 2007)

ANNUAL RESULTS

FOR THE YEAR ENDED 31 DECEMBER 2018

FINANCIAL HIGHLIGHTS

• • For the year ended 31 December 2018, the Group together with its joint ventures and associates achieved contracted sales attributable to the shareholders of the Company of approximately RMB501.88 billion with contracted sales GFA attributable to the shareholders of the Company of approximately 54.16 million sq.m., representing a year-on-year increase of 31.25% and 23.06% respectively.

• • As at 31 December 2018, the Group's net gearing ratio was 49.6%, representing a year on year decrease of 7.3 percentage points.

• • For the year of 2018, the Group's total revenue rose by 67.1% year on year to approximately RMB379.08 billion.

• • The Group's gross profit increased by 74.3% year on year to approximately RMB102.48 billion.

• • The Group's net profit increased by 68.8% year on year to approximately RMB48.54 billion.

• • The profit attributable to the owners of the Company rose by 32.8% year on year to approximately RMB34.62 billion.

• • The core net profit attributable to the owners of the Company1 rose by 38.2% year on year to approximately RMB34.13 billion.

1

It represents profit attributable to owners of the Company excluding the post-tax gains arising from changes in fair value of and transfer to investment properties, net exchange gains/losses on financing activities, net losses on early redemption of senior notes and convertible bonds and changes in fair value of derivative financial instruments.

• • The Group's basic earnings per share rose by 30.9% year on year to RMB1.61 yuan for the year of 2018.

• • The Board recommended payment of a final dividend of RMB30.32 cents per share in the form of cash, up by 21.5% year on year. The total annual dividends reached RMB48.84 cents per share, up by 38.0%2 year on year.

The board (the "Board") of directors (the "Director(s)") of Country Garden Holdings Company Limited (the "Company") is pleased to announce the audited consolidated results of the Company and its subsidiaries (collectively, the "Group" or "Country Garden") for the year ended 31 December 2018.

BUSINESS REVIEW AND OUTLOOK

For the year ended 31 December 2018 ("the Year"), the Group together with its joint ventures and associate companies, achieved approximately RMB501.88 billion in contracted sales attributable to the shareholders of the Company. As of 31 December 2018, the Group's geographical market coverage extended to 269 cities and 1,156 counties/townships in 31 provinces/autonomous regions/ municipalities in Mainland China. During the Year, the Group's revenue increased by 67.1% to approximately RMB379.08 billion; gross profit grew by 74.3% to approximately RMB102.48 billion; net profit increased by 68.8% to approximately RMB48.54 billion; profit attributable to the owners of the Company rose by 32.8% to approximately RMB34.62 billion; and core net profit attributable to the owners of the Company rose by 38.2% to approximately RMB34.13 billion. Furthermore, the Company has made it to the Fortune Global 500 List again following its first-time inclusion in the list for 2017. It has also improved its ranking in the list significantly to 353rd, up by 114 places.

Country Garden has been fortunate to have been founded in the era of China's reform and opening-up and to have flourished amid the country's urbanization. Today, it has become part of a driving force for the country's new type of urbanization which fosters coordinated development of urban and rural areas. Over the past 27 years, the Group has been providing quality housing in communities to fulfil people's aspirations towards a better life. Country Garden has now introduced urban modernization and comprehensive ancillary facilities into over 1,000 cities, bringing dream homes to almost four million people. Country Garden is a vehicle not only for personal aspirations but also for the expectations from numerous home owners, staff members and investors. Therefore, the Group needs to run its business prudently to create value consistently for society as a long-lasting enterprise.

A strong financial position sustains our growth momentum. During the Year, the Group collected consolidated cash proceeds from property sales of RMB541.29 billion and achieved positive operating cash flow for the third year in a row since 2016. In 2018, contracted sales attributable to the shareholders of the Company grew by 31.25%. Net gearing ratio decreased by 7.3 percentage

2

The dividend per share for the year ended 31 December 2017 for this calculation purpose has excluded the dividend increase resulting from the one-off retained earnings adjustment on 1 January 2017 due to the early adoption of HKFRS 15.

points to 49.6%, indicating good financial health. As of 31 December 2018, the Group's available cash3 amounted to approximately RMB242.54 billion, and undrawn bank facilities totaled approximately RMB301.70 billion. The Group has such plentiful working capital that it has been recognised by credit rating agencies for its strong financial position and has thus secured support from major financial institutions.

A prudent approach to business is also extended to safety assurance. Country Garden will reflect on mistakes and correct them to make sure it stays on the right track. Attaching great importance to both safety and quality, the Group seeks to thoroughly remedy any safety problems. This is how we improve the well-being of society.

Notwithstanding the complex economy, Country Garden remains confident about the prospect of China's economy and its consistent, steady growth in the long term. It also believes that the 1.4 billion people's aspirations for a better life can add impetus to the development of the property sector. Having gone through the ups and downs in the industry cycle, we can say that market volatility is the norm rather than the exception. On the contrary, the irreversible trend of China's urbanization means huge potential of the country's immense property market. As a stakeholder in such a promising market, we should think how we can enhance our competitiveness to make the most of it.

We believe that only the most competitive companies can fully capitalize on China's urbanization. Today, Country Garden has evolved into a group with diverse high-tech businesses in addition to its staple property business that bring a better life to people. This, coupled with our strong financial position, a professional and efficient management team that includes over 1,300 holders of doctor's degrees, our proven business model, our well-received products and our well-established brand, undoubtedly gives us great advantage in competition. Yet we cannot afford to be complacent. We will build on our well-established property business by diversifying into other businesses that can reap bountiful rewards in the future. We will seize the day, yet we will take a prudent approach to this initiative.

Science and technology constitute a primary productive force. Intelligent manufacturing will be the key to our competitiveness as it will significantly improve the efficiency of construction. We believe that the adoption of such new technology as robots for construction will enhance our products' safety, quality, appearance, cost-effectiveness, applicability and durability. On the other hand, we can use high technology to build intelligent communities at our property projects where we will be able to provide world-class community-based services. Country Garden successfully spun off its property management business through a separate listing on 19 June 2018. We hope that the robotic business can also generate value for our shareholders.

Country Garden is also developing a business of modern agriculture as a way to participate in the revival of rural economy. Under our strategy of "real estate + agriculture", we will adopt the world's top agricultural production technology and equipment, and leverage our strength in robotic research and development to attain synergy between our two businesses of property and agriculture that span the whole value chains of the two respective industries. Through its "Phoenix Selection",

3

It represents cash and bank deposits (including restricted cash).

the Group will grow and retail safe, delicious and affordable agricultural produce as well as other basic necessities to the communities at its property projects and even to the wider domestic market. This is how we envision ourselves sharing the fruits of the development of modern agriculture with farmers. Since its establishment, the Group, together with Chairman of the board, Mr. YEUNG Kwok Keung and his family, has donated over RMB4.8 billion to charity and carried out its work in poverty alleviation and the revival of rural economy in 14 counties in nine provinces, helping 336,000 people stem poverty. We believe that the best way to create a better business environment is to contribute to both social and economic development, which will ultimately improve the well-being of society.

To fully capitalize on the promising future, we will continue to place emphasis on legal and regulatory compliance and safety and quality assurance while adopting a scientific approach to business planning and a customer-oriented approach to property development and management. This will enable us to provide quality products at reasonable costs for the market, thus enhancing our capability to surmount the ups and downs in the industry cycle. Here is our vision of Country Garden in the future: the whole staff will work as a cohesive group to contribute to society, create value and develop Country Garden into an ever-lasting enterprise. We hope that Country Garden shall be ingrained in people's mind as a company committed to improving the well-being of society.

This will also serve as our tribute to the great era!

Go above and beyond with prudence.

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

As at 31 December

2018	2017
Note	RMB million	RMB million
Non-current assets
Property, plant and equipment	23,421	21,628
Investment properties	16,435	8,338
Intangible assets	670	392
Land use rights	2,496	2,425
Properties under development	107,812	98,840
Investments in joint ventures	27,891	19,346
Investments in associates	18,768	11,585
Financial assets at fair value through other
comprehensive income	1,796	1,517
Derivative financial instruments	992	113
Trade and other receivables	3	10,962	5,372
Deferred income tax assets	18,701	12,198
229,944	181,754
Current assets
Properties under development	626,937	360,922
Completed properties held for sale	44,338	27,886
Inventories	8,822	4,252
Trade and other receivables	3	426,397	272,640
Contract assets and contract acquisition costs	17,094	15,738
Prepaid income tax	21,350	13,198
Restricted cash	14,200	11,318
Cash and cash equivalents	228,343	137,084
Financial assets at fair value through profit or loss	12,019	24,830
Derivative financial instruments	250	47
1,399,750	867,915
Current liabilities
Contract liabilities	562,800	346,748
Trade and other payables	4	498,821	330,884
Receipts under securitisation arrangements	794	1,805
Current income tax liabilities	30,783	21,607
Senior notes	5	2,238	3,795
Corporate bonds	6	23,964	16,814
Convertible bonds	7	8,051	-
Bank and other borrowings	91,844	47,672
Derivative financial instruments	111	212
1,219,406	769,537
Net current assets	180,344	98,378
Total assets less current liabilities	410,288	280,132