CIFI Holdings 2013 1H Attributable Core Net Profit Rises 3.85-Fold

Enhanced Synergies through Joint Ventures with Renowned Property Developers

Achievements in Improving Financing Structure and Lowering Finance Costs

HONG KONG, Aug. 21, 2013 /PRNewswire/ --

CIFI Holdings (Group) Co. Ltd.("CIFI", or the "Group", HKEX Code: 884), one of the "Top 100 Real Estate Developers in China" and a company focused on the property development, property investment and property management business in the PRC, is pleased to announce its unaudited interim results for the six months ended 30 June 2013 ("the period").

During the period, the Group achieved record highs in terms of sales and profit. Contracted sales and contracted GFA reached RMB7,156 million and 714,600 sq.m., respectively, representing rapid growth of 95.8% and 65.3% over the corresponding period of last year. Recognised revenue was RMB4,829 million, representing a significant year-on-year increase of 141.3%. Over 94% of the Group's contracted sales in the first half of 2013 were derived from first- and second-tier cities.

The Group's core net profit attributable to equity owners increased by 3.85-fold to RMB577 million for the six months ended 30 June 2013 from RMB119 million in the corresponding period in 2012. Net profit attributable to equity owners increased by 5.6% to RMB854 million. Basic earnings per share amounted to RMB14.8 cents.

Mr. Lin Zhong, Chairman and Executive Director of the Company, said, "The year 2013 was a year of rapid growth for CIFI. With our 'two high' -- high asset-turnover and high sell-through business model, the Group successfully captured the robust demand for mass market housing from end-users. Benefitting from the massive increase in saleable resources, the Group's sales and profit achieved record highs during the first half of the year."

Business Review

During the period, the Group's contracted sales were dispersed among 32 projects in 10 cities across China. Most of the Group's contracted sales were derived from 27 projects which were subsequent sales launches carried over from the previous year(s), while the remaining were derived from five new projects which started pre-sale in the first half of 2013, including Shanghai CIFI City, Shanghai CIFI Jiangwan Mansion, Suzhou CIFI Private Mansion, Beijing CIFI Private Villa Riverside and Tianjin CIFI Paradise Bay. In the first half of 2013, the GFA of the Group's properties to commence construction was approximately 1.4 million sq.m..

The Group adheres to a systematic and disciplined approach to land acquisition. The Group's land acquisitions during the period were characterised by (1) higher quality, better locations and larger sites in top notch first- and second-tier cities in China with an high emphasis on top cities in the Yangtze River Delta Region; (2) the targeting of end-user demand with primarily mass market residential properties with small-to-medium unit sizes and office properties-for-sale; (3) attractive estimated profit margins using conservative future average selling price assumptions; and (4) the utilization of joint venture strategies through partnerships with leading large-scale property developers, as well as other investment institutions and equity partners.

As at 30 June 2013, the Group's land bank amounted to a total GFA of approximately 7.65 million sq.m., of which attributable GFA amounted to approximately 6.54 million sq.m. The average unit cost of the Group's land bank was approximately RMB2,900 per sq.m.

Joint Ventures with Renowned Property Developers

As at 30 June 2013, the Group successfully executed equity joint ventures with Greenland Holding Group Company Limited ("Greenland") to jointly develop the following newly acquired projects: the Hangzhou Binjiang District Olympic & International Expo Center Project, Shanghai Minhang District Huacao 20-02 Project, Shanghai Zhabei District Project, Hefei Baohe District S1303 Project and Beijing Fangshan District Changyang Town Project. In addition, the Group successfully established a joint venture with Henderson China Properties Limited ("Henderson China") to jointly develop the Hangzhou Yuhang District Chongxian Xincheng No. 24 Project. The Group's co-operation with renowned property developers demonstrates their recognition of CIFI's strong execution abilities and governance standards. The Group's joint venture strategy diversifies its financial exposure in these particular projects, and enhances its project branding and management capabilities through the synergies with its renowned project partners. In the future, the Group will strive to reinforce its cooperation with renowned property developers.

Improved Financing Structure and Lowering of Finance Costs

While implementing its growth strategies, the Group has also strived to improve its financing structure and to lower its funding costs. Following its initial public offering, the Group has made significant progress in establishing its track record in overseas capital markets:

• In April 2013, the Company successfully issued its inaugural tranche of US dollar senior notes. Its US Dollar Bonds, with a principal amount of US$275 million, have a maturity period of five years and an annual coupon rate of 12.25%. The secondary trading prices of the US Dollar Bonds remained strong after the bond issue, reflecting market's strong acceptance of the Group's credit.
• In July 2013, the Company signed a syndicated loan facility with a consortium of international and local banks. The Syndicated Loan is a dual-currency term loan facility with an aggregate amount of approximately US$156.5 million and a final maturity period of three years and interest rate of LIBOR or HIBOR plus 5.65% per annum.

Future Development

Looking forward, we will strive to achieve sustainable, stable and high quality growth for the sake of developing our core business. The Group will concentrate on development projects characterized by fast turnaround, high sell-through and improving prospects. We will continue to emphasise and strengthen our asset turnover, return-on-equity and cash flow management.

Regarding land reserves, the Group fulfilled its target of ensuring substantial supply of saleable resources in 2014 by engaging in new acquisitions in the first half of 2013. In 2013, up to the date of this interim report, the Group entered into two new cities, Hangzhou and Wuhan, enhancing its geographical coverage in the Yangtze River Delta and the Central-Western Region. In the second half of 2013, the Group will be more selective in land acquisitions but will remain open to adding high quality property sites to its land reserve to prepare the Group's saleable resources for 2014 and beyond. Ultimately, the Group will pursue a high-growth and low-risk development strategy for the next two years but will manage its expansion in a cautious manner and will take into account the Group's sales performance, joint venture strategy and financial stability.

Mr. Lin Zhong remarked, "While the current government measures on controlling the real estate sector are expected to remain in place, the risk to have more severe government policy is alleviated by slower economic growth. This offers a stable operating environment in which the Group will grow its business by adhering to its focus on top notch first– and second-tier cities in China and catering to the strong demand from end-users for high quality residential and office properties. The Group is confident that it will achieve its sales target for 2013 and continues to emphasize and strengthen its fast turnaround and high sell-through development model. We are fully confident that we will reach our five-year strategic goals and become a Top 20 real estate developer in China, a national renowned property brand and a mainstream real estate enterprise in the cities in which we operate."

About CIFI Holdings (Group) Co. Ltd.

CIFI Holdings (Group) Co. Ltd., headquartered in Shanghai and one of China's Top 50 Real Estate Developers in terms of sales revenue, is engaged in the property development, property investment and property management businesses in the PRC. CIFI is a strategy-oriented and shareholder value-focused real estate enterprise. The Company develops its business strategies in line with government policies related to the real estate sector in the PRC. In the area of residential property development, CIFI principally focuses on developing residential properties with small-to-medium unit sizes, comfortable living environments and locations with good public transportation links. In the area of commercial property development, CIFI principally focuses on developing commercial properties for sale. From 1^st June, 2013, CIFI has been included in the MSCI Global Small Cap Indices.

To learn more about the Company, please visit CIFI's website at: http://www.cifi.com.hk