New Century Real Estate Investment Trust (1275 HK)

2018 Interim Results

1
Disclaimer

• These materials have been solely prepared by New Century Real Estate Investment Trust (the "New Century REIT") and the REIT Manager solely for
informational purposes and may not be taken away, reproduced, redistributed or passed on, directly or indirectly, to any other person (whether within or
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disclosed in this presentation. Any failure to comply with these restrictions may constitute a violation of applicable laws and securities laws.

• The information contained in this presentation has not been independently verified. No representation or warranty, expressed or implied, is made as to, and
no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained herein. It is not the intention to
provide, and you may not rely on these materials as providing, all relevant information relating to the New Century REIT

• The information contained in this presentation reflects the REIT Manager’s current beliefs and expectations about the future as of the respective dates
indicated herein and should be considered in the context of the circumstances prevailing at the time; are subject to change without notice; and has not been,
and will not be, updated to reflect material developments which may occur after the date of the presentation. The accuracy of the information contained in this
document is not guaranteed. The forward-looking statements contained in this presentation are based on a number of assumptions about the New Century
REIT’s operations and factors beyond the New Century REIT’s control including its present and future business strategy and the environment in which it will
operate in the future and are subject to significant risks and uncertainties, and, accordingly, actual results may differ materially from these forward-looking
statements. These forward-looking statements are not a guarantee of future performance and you should not place undue reliance on such forward-looking
information. The REIT Manager and New Century REIT assume no obligation to update or otherwise revise these forward-looking statements whether as a
result of new developments or otherwise.

• THE INFORMATION CONTAINED IN THIS PRESENTATION DOES NOT CONSTITUTE OR FORM PART OF ANY OFFER FOR SALE OR
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UNITED STATES IN COMPLIANCE WITH REGULATION S UNDER THE US SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”). THE
UNITS / SECURITIES OF NEW CENTURY REIT HAVE NOT BEEN AND WILL NOT BE REGISTERED UNDER THE SECURITIES ACT, AND WILL NOT
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INSTITUTION THAT IS OUTSIDE THE UNITED STATES AND IS PERMITTED UNDER THE LAWS OF EACH APPLICABLE JURISDICTION TO BE
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• THE INFORMATION CONTAINED IN THIS PRESENTATION SHALL NOT CONSTITUTE AN OFFER TO SELL OR A SOLICITATION OF AN OFFER TO
BUY UNITS / SECURITIES IN NEW CENTURY REIT NOR SHALL THERE BE ANY SALE OF SUCH UNITS / SECURITIES IN ANY STATE OR COUNTRY
IN WHICH SUCH OFFER, SOLICITATION OR SALE W OULD BE UNLAWFUL PRIOR TO REGISTRATION OR QUALIFICATION UNDER THE
SECURITIES LAWS OF ANY SUCH STATE OR COUNTRY.

• By attending this presentation you acknowledge that you will be solely responsible for your own assessment of the market and the market position of the New
Century REIT and that you will conduct your own analysis and be solely responsible for forming your own view of the potential future performance of the
business of the New Century REIT.

2
Agenda

I Key Investment Highlights Page 4

II Financial Highlights Page 8

III Portfolio Highlights Page 11

IV Sponsor and Management Page 17

V Appendices Page 22

3
 I Key Investment Highlights

 Annualized distribution yield of 5.5% for 1H 2018

 Hotel occupancy and RevPAR stay within a healthy range

 Base Rent with bank guarantee / security deposit

 downside risk protected

 Strong long-term growth engines

 Continuous M&A: Three acquisitions since IPO. First

overseas acquisition in 2016
 Continue to leverage on high yield and long term
stable income in overseas markets
 Asset enhancements

 Falling China new hotel supply in medium term

 Strong domestic travel and total tourism income

 Leverage on N.C.’s 264 hotels platform and about 6.5m

loyal Club members
 New Century Group: Top 500 private enterprises and
Top 100 private service enterprises in China in 2017
 In August 2018, most of our hotels rated within the best
1.5% hotels in respective cities by Tripadvisor.

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I
Key Investment Highlights
Guaranteed base rent with upside potential

Favorable Hotel Lease and Management Agreements

√ √ √
Base rent guarantee by
Base rent + 3rd party Rental guarantee by
ICBC (1) or 1 year rental
rental income New Century Tourism
deposit (2)

5 Initial Hotels at IPO Kaifeng New Century Grand Hotel

Year 6 Rental Structure (3) Year 4 Rental Structure (2)

• RMB200Mn with Bank • RMB22Mn, guarantee by

Base Rent Guarantee
Base Rent 1-year rental deposit

Variable Variable
• 20% of Revenue + 34% of • 20% of Revenue + 34% of
Portion of Portion of GOP – Base Rent
GOP – Base Rent
Total Rent Total Rent

Security Security
• RMB20Mn • RMB22Mn
Deposit Deposit

Notes
1. 5 Initial Hotels at IPO; lease agreements were signed in June 2013; remaining term: 15 years
2. Kaifeng New Century Grand Hotel; lease agreement was signed in June 2015 and 1 st five years rental structure was predetermined; remaining term: 17 years
3. The 2018 (Year 6) Market Rental Package was determined by Savills in Jan 2018
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 I
Key Investment Highlights
Overseas Acquisition
Acquired Holiday Inn Eindhoven, the Netherlands on 9 August 2016
√ Continuous contribution of DPU accretion is expected
Both ADR and RevPAR rose 1% YoY in 1H 2018
√ Strategic location and promising outlook
Regional advantages
• Eindhoven is Netherlands’ industrial and technology center
• 15 minutes by car to High Tech Campus Eindhoven
• Headquarters for internationally-recognized technology companies e.g. Philips, ASML, and NXP

Within walking distance to

• Central railway station
• Bus terminal
• Philips Stadium
• Shopping area

√ Long term lease with reputable tenant

• Existing lease expiring in 2037 (19 years unexpired term) with option to renew for another two 5-
year terms at lessee’s discretion and thereafter for an indefinite period of time
• Higher of base rent (approx. €1.96 Mn for 2017) or 24% of sales turnover
• Base rent is indexed annually to Dutch CPI and is guaranteed by Hampshire Hospitality B.V.,
among of the largest hotel groups in the Benelux

√ Expansion of footprint beyond China

• Geographical diversification
• Room numbers and GFA increased by 7.3% and 2.6% respectively
Total Room Occupancy
Name of Hotel Rating ADR RevPAR
GFA (s.m.) No. Rate
2018 1H: 2018 1H : 2018 1H :
80.0% €86.5 €69.1
Holiday Inn Eindhoven 4-Star 11,675 207
2017 1H : 2017 1H : 2017 1H :
79.9% €85.6 €68.4
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I
Key Investment Highlights
Potential growth opportunities

Continue to look for growth opportunities through

√ New Century Group

√ First Right to acquire all types of hotel
• Option to acquire one more matured hotels from New Century Group: under New Century Group

Total Open Room No of

Name of Hotel Rating New Century Group
GFA since No. Hotel
New Century Grand Hotel Owned/partially-owned 17
Xuzhou, Jiangsu
Nov
5-Star 68,947 381
2005 Leased or Managed 247

Total (Ended 30 Jun 2018) 264

√ 3rd party sources from the globe

• Increasing pipeline investment opportunities coming from overseas;

• High quality and upscale hotels and commercial buildings with long-term
income stream

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 II Financial Highlights
Financial Performance 1H 2018

KEY FINANCIAL FIGURES 1H 2018

(expressed in RMB'000 unless otherwise specified)
Excl. FX loss Excl. Shanghai Hotel Excl. SH Hotel or FX loss
For the six months For the six months For the six months For the six months Percentage Percentage
ended 30 June 2018 ended 30 June 2018 ended 30 June 2017 ended 30 June 2017 Increase / Increase /
(unaudited) (unaudited) (unaudited) (unaudited) (Decrease) (Decrease)
Total Revenue (1) 135,638 157,656 135,368 (14.0%) 0.2%
Profit / (Loss) attributable to Unitholders 27,114 46,803 (42.1%)
(2)
(Adjusted loss)/Distributable income for the period (5,127) 52,176 51,768 (109.9%) 0.8%
Interim distribution 0 46,591 (100.0%)
Speical distribution 50,000 33,000 51.5%
Total distributions for the period 50,000 79,591 (37.2%)
Total distribution per Unit ("DPU") (RMB) 0.0522 0.0830 (37.1%)
(3)
Total DPU (HK$) 0.0597 0.0973 (38.6%)
Dividend Yield (Annualized) 5.5% 8.0% (2.5%)

 1H 2018 total revenue rose 0.2% YoY if Shanghai Hotel contribution is excluded.
 Only considering the contribution from operating performance, distributable income for 1H 2018 rose 0.8% YoY to
RMB52Mn (excl. FX loss).

Notes:
(1) Shanghai Hotel was sold in June 2017.
(2) Realization of the loss arising from the settlement of foreign exchange contracts for hedging purpose.
(3) Based on the exchange rate of HK$1=RMB0.8431 for 1H 2018 (1H 2017: HK$1=RMB0.8359)
(4) Exchange loss for settlement the forward contracts = RMB57.30Mn

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 II Financial Highlights
Balance Sheet

As of 30 June 2018 As of 31 Dec 2017

RMB '000 RMB '000

Gearing
38.7%
Non-current assets 4,932,393 4,905,378
Current Assets 632,571 566,881

Total Assets 5,564,964 5,472,259 Portfolio Valuation

Non-Current Liabilities (exclude net assets
2,713,288 2,676,236
RMB 4,919 Mn
attributable to unitholders)
Current Liabilities 440,026 359,183
Total Liabilities (exclude net assets
3,153,314 3,035,419
attributable to unitholders) Adj. NAV per
Net Assets Attributable to Unitholders (NAV) 2,377,861 2,404,023
Unit
NAV / Unit (1-3) RMB 2.48 / HK$2.94 RMB 2.51 / HK$3.00 HK$ 4.07
Adjusted NAV / Unit (1-4) RMB 3.43 / HK$4.07 RMB 3.45 / HK$4.12

Gearing Ratio 38.7% 36.5% NAV Discount at

Notes: Share Price (1)
(1) Closing Price as of 29th June 2018 is HK$2.18
(2) Based on the exchange rate of HK$1=RMB0.8431 for 30 June 2018 (HK$1=RMB0.8359 for 31 Dec 2017 53.55%
(3) No of units in issue as at 30 June 2018 of 958,500,829 (as at 31 Dec 2017: 958,500,829)
(4) Adjusted by excluding deferred tax liabilities of RMB 868Mn related to investment properties

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II Financial Highlights – Capital Management

Debt Profile as of 30 Jun 2018 (1) Onshore Loan Offshore Loan

Total Gross Debt 1) Outstanding : RMB197 Mn  EUR 14.58 Mn (drawn) @ Euribor
 Offshore debt (i) USD 49 Mn (RMB 324 Mn) • Int: 112% of benchmark + 2.9%
(ii) EUR 14.58 Mn (RMB 111 Mn) 3 yrs. PBOC  US$290 Mn (drawn) @ Libor +
(iii) USD 230 Mn (RMB 1,522 Mn) 2.1% – 2.25%
 US$ 230 Mn (~80% of total US$
 Onshore debt RMB 197 Mn loan;) of IRS : hedged @ 3.11%
 Total Equiv. RMB 2,154 Mn fixed to maturity.
 EUR 13.1 Mn (90% of EUR loan)
38.7% of IRC : hedged @ 1.5% cap rate
Gearing Ratio (slightly increased 2.2% compared to
1H 2017 but still under 45%)  Total available loan (undrawn)(1):
USD 101Mn (Equiv. RMB 668Mn)
Debt Maturity (as of 30 Jun 2018)
Funding Combination
RMB Mn

2000 197
668 Onshore debts
2,154
1000 1,712
112 Offshore debts
0 330
Jun-19 Jun-20 Jun-21 Total Undrawn Facilities
1957
Notes
Free Cash on hand
1. Exchange rate at: US$1.0000 = RMB6.6166; EUR 1.00 = RMB 7.6515 Amount (RMB Mn) RMB 335 Mn
2. IRS : Interest rate swap; IRC : Interest rate cap

10
 III Portfolio Highlights – Well-managed with stable return

New Century Grand New Century Hotel New Century Resort New Century Grand Hotel New Century Grand New Century Grand Holliday Inn
Sub-Total Grand Total
Hotel Hangzhou Xiaoshan Zhejiang Qiandao Lake Hangzhou Ningbo Hotel Changchun Hotel Kaifeng Eindhoven

Start of Operations Jan 05 Jan 88 Apr 04 Dec 07 Dec- 08 (1) Aug 07 N/A 1973^ N/A
Rating 5-Star 4-Star 5-Star 5-Star 5-Star 5-Star N/A 4-Star N/A
Total GFA (sq.m.) 130,105 39,851 39,402 66,107 45,625 53,512 374,602 11,675 386,277
Number of Rooms 699 375 227 392 328 356 2,377 207 2,584
Available Seats (2) 4,685 2,264 1,962 2,356 1,918 1,300 14,485 60 14,545
GFA of Banquet (sq.m.) 4,492 1,337 1,961 1,890 1,892 2,083 13,655 180 13,835
Occupancy (2018 1H ) 67% 72% 63% 68% 57% 53% 64% 80% 65%
ADR RMB/ € (2018 1H) (after VAT) 536 340 608 538 475 544 RMB 502 € 86.52 RMB 518
RevPAR RMB / € (2018 1H) (After VAT) 360 243 381 363 272 290 RMB 322 € 69.14 RMB 338
Appraised Value (RMB / € Mn)
2,010 642 343 820 452 430 RMB 4,697 € 28.97 RMB 4,919
(as at 30 Jun 2018)
Valuation /room (RMB / €Mn) 2.88 1.71 1.51 2.09 1.38 1.21 RMB 1.98 € 0.14 RMB 1.90
Valuation / sqm (RMB / €) 15,449 16,110 8,705 12,404 9,907 8,036 RMB 12,539 € 2,481 RMB 12,734
Dec 2035 - tourism use July 2041- commercial use Oct 2043- hotel & catering
Expiry of land use right Dec-43 Mar-45 Oct-44 Freehold Land
Dec 2043 - commercial use July 2071- residential use Dec 2046- commercial use
-20th/2,612 hotles -25th/2,612 hotel -2nd / 182 hotels -10th / 810 hotels -6th / 643 hotels -1st / 233 hotels -6th / 26 hotels
► ranking(4)
-China Hotel Golden -top Ten Star-rated Hotel in -China Hotel Golden Star -China Excellent MICE -China Hotel Golden Star Award - China Hotel Golden
►From Chinese authorities Start Award Hangzhou Award Hotel -China Excellent MICE Hotel Star Award
-Zhejiang Famour -China Famour Restaurant -China Famour Restaurant -China Outstanding Green
Restaurant Tourism Hotel
Notes :
1. New Century Grand Hotel Changchun was constructed by a third party in 2004 and acquired by the New Century Group in December 2007. The hotel was re-opened in 2008 after renovations.
2. Including seats in food and beverage outlets and function banquet facilities.
3. The Appraised Value of Xiaoshan Hotel represents 100% interests. The value attributable to New Century REIT is 95.46%.
4. Most of the hotels were rated the top 1.5% of the best hotels in respective cities by TripAdvisor.com as of 23 August 2018.
5. FX €1 = RMB 7.6515
^ Last major renovation in 2009

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III
Portfolio Highlights
Operational Highlights-Hotel Room

1H 2018 vs 1H 2017

GFA Occupancy (%) ADR (RMB)2 RevPAR (RMB)2

sq. m. 2018 1H 2017 1H 2018 1H 2017 1H 2018 1H 2017 1H

New Century Grand Hotel Hangzhou 130,105 67.1% 69.5% 536 544 360 378
New Century Xiaoshan Hotel Zhejiang 39,851 71.6% 71.5% 340 331 243 237
New Century Resort Qiandao Lake Hangzhou 39,402 62.6% 68.1% 608 621 381 423
New Century Grand Hotel Ningbo 66,107 67.5% 67.7% 538 538 363 364
New Century Grand Hotel Changchun 45,625 57.4% 60.6% 475 483 272 292
New Century Grand Hotel Kaifeng 53,512 53.2% 54.9% 544 537 290 295
TOTAL / WEIGHTED AVERAGE
374,602 64.0% 66.1% 502 522 322 345
(6 PRC Hotels)

Netherlands Hotel 1 11,675 80.0% 79.9% 662 662 529 529

Overall / WEIGHTED AVERAGE

386,277 65.3% 67.1% 518 532 338 357
(7 Hotels)

Notes
1 : Exchange rate at €1 = RMB 7.6515 as of 30 Jun 2018 and €1 = RMB7.7369 as of 30 Jun 2017.
2. Except for Holiday Inn Eindhoven, the ADR and RevPAR include complimentary breadkfast for hotel room guests.

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 III
Portfolio Highlights
Operational Highlights-F&B

1H 2018 vs 1H 2017
Revenue per sq.m. per day of
F&B Spending per Customer1 Utilization Rate 2
banquet room

2018 1H 2017 1H 2018 1H 2017 1H 2018 1H 2017 1H

New Century Grand Hotel Hangzhou 187 185 183% 208% 71 52
New Century Xiaoshan Hotel Zhejiang 136 133 135% 137% 70 62
New Century Resort Qiandao Lake
93 101 122% 129% 10 13
Hangzhou
New Century Grand Hotel Ningbo 168 169 160% 193% 53 50

New Century Grand Hotel Changchun 127 121 96% 106% 17 18

New Century Grand Hotel Kaifeng 98 95 168% 154% 15 11
TOTAL / WEIGHTED AVERAGE 143 143 147% 156% 45 35

Notes
1. F&B Spending Per Customer excludes breakfast customers
2. After VAT.

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 III
Portfolio Highlights
Favorable locations
Xiaoshan, Hangzhou (Zhejiang Province)
Regional advantages
 Hangzhou is the capital of Zhejiang Province and a major Changchun (Jilin Province)
tourist city in China
Regional advantages
 Xiaoshan is the industrial base of Hangzhou and China’s 5th
most economically prosperous district in 2017  Automobile city of China, auto industry output grew
CAGR 20% (2007-2011), China FAW Group; China’s
Hotel location advantages
high speed railway development center
 Located in CBD of Xiaoshan
Hotel location advantages
 Proximity to Xiaoshan Economic & Technology Zone and
 Close proximity to China FAW Group Corporation and
Xiang Lake
CNR Changchun Railway Vehicles Co., Ltd
 Only 30 minutes drive from the airport
 Close to Changchun Automotive Industry Development
 Next to a new subway line connecting downtown Hangzhou Zone
Changchun
Qiandao Lake (QDL), Hangzhou (Zhejiang)  Distant from new supply of 5-star hotels in Changchun

Regional advantages
 National 5A Tourist Attraction
 The largest national forest park in China, the ‘International Kaifeng
Hangzhou
Garden City’
 Hangzhou-Mount Huang high-speed rail and highway to be Ningbo
completed by 2018 Qiandao Lake
Hotel location advantages Yinzhou, Ningbo (Zhejiang Province)
 Located on Qilin peninsula, facing the center of QDL Regional advantages
 Adjacent to major transportation routes in Chun’an  Core logistics/trading hub in southern Yangtze River Delta
 Only 40min drive to Yu Hot-spring, a new winter attraction  Yinzhou : PRC 4th most economically prosperous district in
2017
Kaifeng (Henan Province)
 Southern Business District as new growth engine
Regional advantages Hotel location advantages
 Most populous province in China and with GDP significantly  Close to Southern Business District, under rapid expansion
above average of China.
 Close proximity to airport and railway station; easily
 Integration with Zhengzhou. accessible to Shanghai via Hangzhou Bay Bridge
 Historical city, attracts increasing tourists.  Distant from new supply of 5-star hotels in city center and
Hotel location advantages Eastern New Town of Ningbo
 Located in core of Kaifeng “New Town” and former site of
famous Song Dynasty royal water garden, Jinmingchi Lake
Sources of pictures Ningbo CBD office website, Baidu and Sina pictures
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III
Portfolio Highlights
Asset Enhancement Initiatives
New Century Grand Hotel Hangzhou New Century Grand Hotel Changchun
 Conversion of the western restaurant into banquet  Conversion of several hotel rooms into suites; and
rooms  Replacement of carpets

Holiday Inn Eindhoven New Century Resort Qiandao Lake Hangzhou

 Refurbishment of the parking lot;
 Extension of CCTV installation;  Conversion of leisure areas into a children’s
 Creation of a smoking area; and playground
 Replacement of lobby carpets

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III Portfolio Highlights
Hotel Operation Initiatives – Year 2018

New Century Group and REIT hotels’ own initiatives

 Flexible rates and incentives : Adjust room rates to boost occupancy and offer incentives to guests.
 Strengthen sales channels :
 Strengthen partnerships : Airlines, Corporate clients, travel agencies, etc.
 OTAs (e.g. Ctrip, Kuxun (酷旅), and LY.com (同程旅游), etc): Front page promotions; promote self-drive packages and
work on minimum guaranteed rooms take up.
 E-commerce: Extra promotions in Group’s web-sites; Taobao; WeChat; mobile phone & e-mail marketing.
 Business development and promotion : Promotional events; reward system.
 Food & Beverages (F&B): Co-operations with wedding professionals; mass market & families dining promotions.
 Meetings, Incentives, Conventions & Exhibitions (MICE): Visit MICE prospects and provide tailor-made quotes.

Cost Savings Initiatives

 F&B : Improve raw materials sourcing efficiency through more competitive pricing mechanism and nurture local suppliers.
 Streamline organization to improve efficiency
 Reduce non-essential room materials
 Energy savings

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 Sponsor and Management
IV
Key Corporate Information

Share Market Info. Key Assets

Portfolio 7 Hotels (China : Five 5-star + One 4-star; Netherlands :

 New Century Group (approx.) ~57% One 4-star)
Major Unitholders
 Others (approx.) ~43%
Location
 China : Hangzhou / Ningbo / Qiandao Lake / Changchun / Kaifeng
 Netherlands : Eindhoven
Market Capitalization  App. HK$1965 Mn / US$250 Mn

 Valuation (as of 30 Jun 2018) : ~RMB 4,919 Mn

 (app. RMB 12,734 psm & app. RMB 1.90 Mn / room)

Professional Parties Income & Distributions

 New Century Asset Management
The REIT Manager  China : Guaranteed Base Rent + Variable
Limited
Rent & Other Rents
Rental Structure
The Trustee  DB Trustees (Hong Kong) Limited  Netherlands : Higher of Guaranteed Base
Rent or 24% of Sales turnover
Auditor  PWC
 Various Professional Fees
Key Expenses  Finance Costs
Legal Counsel  Dechert
 No hotel operational expenses

Property Valuer  Savills (starting 2016) Distribution  Since IPO to 1H 2016 : 100%
Policy  Thereafter: ≥ 90%

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IV Sponsor and Management
Committed and reputable sponsor

 Largest domestic private-sector star-rated hotel management group in China1

– A total of 264 hotels (including the 7 hotels within New Century REIT) with
over 61,000 rooms
– 134 hotels in operations (including the 7 hotels within New Century REIT)
– Big leap in World’s Hotel Group ranking by Hotels magazine :
Year Ranking2
2012 72
2013 32
2014 26
2015 25
2016 27
2017 23

 30 years of operating track-record

 New districts focus to enjoy favorable policies, first mover advantage, and new
infrastructure

New Century  Manages and operates the hotels owned, leased and managed under the New
Century brand name
Hotel Management  Master lessee of New Century REIT

Notes
1. According to the China Tourist Hotel Association, as measured by the number of hotel rooms in operation or under development
2. In terms of the number of hotel rooms; Hotel Magazine published in July/August 2018

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IV Sponsor and Management
Committed and reputable sponsor (Cont’d)

Reputable sponsor Interest alignment and interaction between New Century Group and the REIT

New Century REIT serves as the capital

recycle platform for New Century Group

 New Century Group dedicated to hotel

development and management
 Injection of hotel assets into REIT to recycle
capital
 New Century Hotel Management to become
New Century Group an asset light company

New Century New Century

Group REIT
New Century Group holds interest in and
grants long-term support to New Century REIT

 Guarantee on master lease and rent

 Granted option to the REIT for the acquisition
of two hotels
 Build and incubate new hotels for future
injections
 Major source of hotel for acquisition

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IV Sponsor and Management
Experienced board and management team with proven track record
Management Team
Freddy Chow
Internal Audit Manager
 >10 years of experiences
in internal audit and
compliance matters
 Worked in Nan Fung
Group
Non- Executive Directors
Mr. Jin Wenjie
Chairman of New Century
Group
 Over 27 years of experience
in finance and real estate
investment and
management.
Tong Jinquan
Founder & sole shareholder of
Summit Group
 Over 21 years of experience
in property investment &
development in PRC.
 Also experience in managing
REITs in Singapore.
Cheung Yat Ming
CEO, Executive Director and Responsible Officer (RO)
 > 26 years of experience in real estate and property market research and
investment, banking and financial services
 Former Head of Property Research at HSBC, Head of Research at DBS Vickers
and ED of Asia Pacific real estate investment and research at Cohen & Steers
Livia Cheung Miranda Ho Anthony Chan
Investment and Investor Relations Manager, RO COO, RO Compliance Manager
 > 20 years of experience in property  >22 years of experience in  experienced in
investment & business development property investment & auditing and
 Former senior investment manager at China accountancy compliance matters
New Town Holding Co. Ltd & senior business  Former financial controller of  Former Audit
development manager at SOCAM Asset Willie International Holdings Ltd Manager at PwC
Management (HK) Co. Ltd.
Independent Non-Executive Directors
Zhang Guanming
Angelini Giovanni Yu Hon To David
Vice President of New Century
Tourism  Over 51 years of  Extensive experience in
 One of the founders of the New
experience in travel and the fields of corporate
tourism industry finance, auditing and
Century Group
 Held executive position in corporate management
 Over 23 years of experience in
Shangri-La Hotels and
hotel operation & management
Resorts
Prof. He Jianmin
 Professor at the School of International Business Administration of
Shanghai University of Finance & Economics
 Over 26 year of experience in the fields of hospitality and tourism
20
IV
Sponsor and Management
Key Awards from reputable independent judges

 FinanceAsia award:
• New Century REIT was awarded the 7th Best Managed
Chinese Company in 2014
• Rated by investors and analysts
• Other top-10 winners include China Telecom, Tencent,
China Mobile, China State Construction & China
Overseas Land & Investment

 Other PRC awards :

• China Hotel Golden Star Award for Grand Hangzhou,
Qingdao Lake Resort & Grand Changchun
• China Excellent MICE Hotel: Grand Ningbo & Grand
Changchun
• China or local province Famous Restaurant
• China outstanding business hotel: Grand Changchun.

21
V. Appendices
 Appendix 1: Structure

Structure of New Century REIT

Full Wise Huge Harvest
Investments International Others
(BVI) 100% (BVI)
100% ~57% ~43%

Distributions
Not included in the REIT Management
Fee Trustee Fee
REIT Manager New Century REIT Trustee
Chen Chen Zhang Management
Holds Assets on Trust for
Canrong Guanming Services
Miaolin Unitholders
100%
85.21% 8.53% 6.26% 100%
Strong Tower Global Ltd
Spearhead Global Ltd (BVI)
(BVI)
Ocean 100%
Tecway Real General Others Spearhead Sky Town Investments
Estate (H.K.) Atlantic Link Full Wise Industrial Ltd (HK)
Investments Ltd (HK) Ltd (HK)
60.05% 39.95%
100% ~21% ~7% ~7% Outside the PRC

Zhejiang New Hotel Lease In the PRC

Century Real Estate and Zhejiang New
Management Century Hotel Inv
100% & Mgt Group Ltd
Agreements
(New Century
New Century Hotel Mgt. Tourism provides
Tourism Ltd Agreement guarantee)
~65%
100% 95.46% 100 % 100% 100%

Hotel Lease Xiaoshan Changchun

Kaifeng New Qiandao Lake Ningbo New
New Century Hotel Hotel Mgt. Agreement Hotel New Century
Agreement (New Century Grand Resort Century Grand
Management Ltd Century
Company Grand
Tourism 100.00%
New Century guarantees)
Grand Hotel Kaifeng
Mgt Co., Ltd
100% (Lessee) New Century New Century
New Century New Century New Century New Century
Hotel Resort
Grand Hotel Grand Hotel Grand Hotel Grand Hotel
Xiaoshan Qiandao
Kaifeng Hangzhou Ningbo Changchun
Operating Companies Zhejiang Lake
for Hotel Properties
5 Initial Hotel Properties at IPO

23
Appendix 1 : Structure (Cont’d)

Structure of New Century REIT

Full Wise Huge Harvest
Investments International Others
(BVI) 100% (BVI)
100% ~57% ~43%
Distributions
Management
Fee Trustee Fee
REIT Manager New Century REIT Trustee
Management
Holds Assets on Trust for
Services
Unitholders

100% 100%
100%
New Century Hong Kong, I Limited Strong Tower Global Ltd
Spearhead Global Ltd (BVI)
(Hong Kong) (BVI)
100%
100% Spearhead Sky Town Investments
Full Wise Industrial Ltd (HK)
Investments Ltd (HK) Ltd (HK)
New Century Europe, I SARC 60.05% 39.95%
(Luxembourg)
100% In the PRC
Zhejiang New
New Century I Netherlands Century Hotel Inv
B.V. & Mgt Group Ltd

100%

100% 95.46% 100 % 100% 100%

Holiday Inn
Eindhoven Xiaoshan Changchun
Hotel, Kaifeng New Qiandao Lake Ningbo New
Hotel New Century
Netherlands Century Grand Resort Century Grand
Company Grand
100.00%

In the Netherlands
New Century New Century
New Century New Century New Century New Century
Hotel Resort
Grand Hotel Grand Hotel Grand Hotel Grand Hotel
Xiaoshan Qiandao
Kaifeng Hangzhou Ningbo Changchun
Zhejiang Lake

5 Initial Hotel Properties at IPO

24
Appendix 2 : Distribution Adjustments

1H 2018 1H 2017
RMB '000 RMB '000

Distribution Adjustments
-Fair value change in investment properties (31,017) (12,379)
-Deferred Tax 15,949 13,712
-REIT manager's fee payable in units 6,449 -
-Amortization of transaction costs - borrowings 11,607 19,483
-Unrealized FOREX lossess / (gains) 24,124 (41,236)
-Accumulated realised foreign exchange losses 0 (46,338)
-Fair value change on derivatives 11,607 19,223
-Accumulated realised fair value gains and deferred taxations 0 52,500
Total Adjustments 38,719 4,965

25
Appendix 3 : Yield accretive acquisitions

Kaifeng Hotel Acquisition

(completed on 31 July 2015)
(Audited) Consolidated (Unaudited) Pro
Income Statement and Forma Consolidated
Distribution Statement Income Statement and
for year ended Distribution Statement
31 December 2014 after Acquisition

Total Distribution (RMB’000) 181,468 187,794

DPU before Distribution Waiver

0.1953 0.2019
(A) (RMB)

DPU after Distribution Waiver (B) 0.2363

0.2285
(RMB)

Annualized Dividend Yield

before Distribution Waiver (A) 7.78% 8.05%
Note 1

Annualized Dividend Yield after

9.11% 9.42%
Distribution Waiver (B) Note 1

Yield Accretion (A) +3.38%

Yield Accretion (B) +3.41%

Note 1: Based on closing price and RMB to HK$ exchange rate on acquisition completion date.

26
Appendix 4 : REIT Manager Fee

Management Fee:
(i) Base Fee not exceeding 0.3% p.a. of the value of the deposited property; and
(ii) Variable Fee of 4% p.a. of net property income (before deduction therefrom of the variable fee).

Acquisition Fee:
(i) Not exceeding 0.5% of acquisition price of any real estate from New Century Group;
(ii) Not exceeding 1% of the acquisition price of any real estate from third parties.

Divestment Fee:
(i) Not exceeding 0.5% of the sale price.

27
Appendix 5 : Locations of Hotel Properties

New Century Grand Hotel Hangzhou and New Century Hotel Xiaoshan Zhejiang

28
Appendix 5 : Locations of Hotel Properties (Cont’d)

New Century Resort Qiandao Lake Hangzhou

29
Appendix 5 : Locations of Hotel Properties (Cont’d)

New Century Grand Hotel Ningbo

30
Appendix 5 : Locations of Hotel Properties (cont’d)

New Century Grand Hotel Changchun

31
Appendix 5 : Locations of Hotel Properties (cont’d)

New Century Kaifeng Hotel

32
Appendix 5 : Locations of the Netherlands Hotel

Holiday Inn Eindhoven, the Netherlands

33
Appendix 4: Locations of Hotel Properties (cont’d)

New Century Real Estate Investment Trust

OFFICE
Unit 4706, 47/F, The Center,
99 Queen’s Road Central, Hong Kong

Tel: +852 2153 3588

Fax: +852 3488 6403
Email: ir@ncreit.com
Website: www.ncreit.com

34