Pay Tribute to the New Ear, Re-Equip and Start Again --- New Year Greetings from Zhang Zhaoxing, Chairman of Yuexiu Group

When the first sunshine of the New Year illuminates the two sides of the Pearl River, we sent away the brilliant 2018, welcome the opportunities and challenges of 2019. We have many memories and feelings, and we are full of hopes and expectations. On this beautiful moment of farewell the old and welcoming the new, on behalf of Yuexiu Group, I would like to extend the new year greeting to the leaders of all levels who care for and support the development of the Group, the community, the customers and partners, and all the employees of the group and your families. I wish you all healthy, happy, and all the best!

2018 which is about to pass is a year of constant struggle. Facing the severe situation of increasing economic downward pressure, strong financial supervision, and strict control of real estate, under the careful guidance of the municipal party committee and municipal government and strong leadership from the relevant departments of the Municipal State-owned Assets Supervision and Administration Commission, Yuexiu Group closely focused on the annual work theme of “management driving quality improvement, integrating for new phase", withstood pressure, faced the difficulties, and acted positively. The Group's main business indicators achieved steady growth and earned hard-won business performance. In particular, we are heartened by the fact that the Secretary of the Guangzhou Municipal Committee, Zhang Shuofu, when visiting Yuexiu Group, encouraged us to “grab the opportunity and achieve greater and stronger”, which added great confidence and motivation to the development of the Group.

In 2018, the Group's various undertakings blossomed in an all-round way and produced fruitful results. We focused on improving quality and efficiency and creating new developments. The Group achieved annual operating income of RMB 47.5 billion, total profit of about RMB 12 billion, total assets of more than RMB 520 billion. Quality and efficiency were moved to a new level, laying a solid foundation for the realization of the "13th Five-Year Plan" objectives; resolutely implement the country, the provincial and the municipal governments' requirement of reducing debt and leverage for state-owned enterprises. We actively explored and utilized the two domestic and overseas' markets and resources, issued the first domestic perpetual bond, and its issuance interest was the best in local state-owned enterprises during the same period, it ensured safe circulation and owners' development needs. We focused on resource integration and expanded the new pattern of development.

In 2018, we also carried out a series of precise poverty alleviation, counterpart assistance and love education activities. We fulfilled social responsibilities with practical actions, spread Yuexiu love, passed Yuexiu value, and established Yuexiu brand.

The upcoming 2019 is the 70th anniversary of the founding of the People's Republic of China and is also the crucial year of the Group's 13th Five-Year Plan. Waves are rough when the ship in the middle of the wandering, and the road is steeper when people are at the middle of a mountain. Standing on the basis of the achievements, Yuexiu Group will conscientiously study and implement the new era socialism with Chinese characteristics suggested by Xi Jinping, deepen the reform without stopping, reorganize the equipment and start again. We will fully seize the opportunity of establishing the Guangdong, Hong Kong and Macao Greater Bay Area. In line with the strategic positioning of becoming an important "platform company of world class urban agglomeration construction in the Greater Bay Area, support Guangzhou to be the core city in the Greater Bay Area", continuously enhance the comprehensive development capability driven by operation, resource and innovation; and promote the further transformation of the Group's main business. To push various business and operation performance to a new level, and submit a satisfactory answer to the municipal government and the community.

History will only favor the determined, the endeavor, and the fighters; and will not wait for the hesitant, the lazy, the feared. All Yuexiu people will adhere to the core values of “continuously surpassing and being more outstanding”, work together to meet challenges, provide better products and services to all sectors of society and consumers, and create a better future!

Zhang Zhaoxing

The Party Secretary and Chairman of Yuexiu Group

December 31, 2018