Renhe Commercial Holdings Company Limited Announces 2011 Interim Results

Revenue and net profit increased by 119% and 358% year-on-year to RMB 2,066 million and RMB 605 million respectively in first half of 2011

Booked area and contracted sales area reached approximately 258,205 sq.m GFA from Jan-Aug 2011 and achieved 57% of its annual target

HONG KONG, Aug. 25, 2011 /PRNewswire-Asia/ --

Financial Highlights

Renhe Commercial Holdings Company Limited (HKSE stock code: 1387; "the Group"), the operator and developer of underground shopping centers in China, is pleased to announced its interim results for the six months ended 30 June 2011.

The Group's revenue and net profit increased by 119% and 358% year-on-year to RMB 2,066 million and RMB 605 million respectively, in the first half of the year. These rises during the period were attributable to an operation rights transfer of 77,205 square meters ("sq.m.") and robust lease income growth. Revenue generated from the operation rights transfer and lease income during the period under review increased by 116% and 152% year-on-year to RMB1,900 million and RMB166 million respectively. During the period under review, the lease income was not only substantially higher compared to the corresponding period of the previous year, but actually surpassed the total lease income recorded for fiscal year 2010. Meanwhile, overall gross profit margin improved to 67% from 57% in first half of 2010. As of 30 June 2011, the gearing ratio was maintained at a healthy level of 30%. In addition, the Group's booked area and contracted sales area for the period Jan-Aug 2011 reached 258,205 sq.m. GFA. This represents 57% of its annual target in 2011 (versus only 11% achieved in the corresponding period in 2010).

Mr. Dai Yongge, Renhe's Chairman and Chief Executive Officer, said, "End of 24 August 2011, the Group had several achievements in the first half year. The Group's gross floor area("GFA") under management substantially increased by 78% year-on-year to approximately 1.34 million sq.m. These included four projects put into operation in the first half year (Hebei Handan Project -- approximately 68,028 sq.m. GFA; Fujian Putian Project -- approximately 52,488 sq.m. GFA; Henan Anyan Project -- approximately 25,310 sq.m. GFA; and Jiangxi Ganzhou Project -- approximately 48,400 sq.m. GFA) and JiangsuWuxi Acquisition Project (approximately 390,626 sq.m. GFA) acquired at the beginning of the year. Both the GFA and total number of the projects under construction reached new highs; far surpassing the respective figures recorded for the corresponding period of the previous year. At the same time, the Group obtained six project approvals and the Group's portfolio size reached approximately to 6.43 million sq.m.

Regarding projects under construction, Mr. Dai said, "The Group currently has 14 projects under construction across 11 cities with a cumulative GFA under construction of approximately 1.76 million sq.m., representing a new record for the Group in terms of cumulative GFA under construction. During the period under review, the Group commenced construction on a total of five projects in five cities, which will yield a total GFA of 977,654 sq.m. upon completion and construction commenced on Humen Project Phase 2 (approximately 228,000 sq.m. GFA) in early August. Moreover, the Group has now achieved 80% of its construction target for the full fiscal year. Presently, all of the Group's projects under construction are on schedule with regard to their respective construction timetables."

Commenting on the Group's strategy for project reserves, Mr. Dai said, "The Group's strategy to future land reserves is prudently optimistic. Currently, the Group has project reserves with a total GFA of approximately 5.1 million sq.m. Six new projects have been obtained year-to-date, with an approved total GFA of approximately 1.78 million sq.m. The projects are located in Shenyang Phase 2, Liaoning Province (approximately 306,066 sq.m. approved GFA), Anshan Phase 3, Liaoning Province (approximately 18,900 sq.m. approved GFA), Dongguan Humen, Guangdong Province (approximately 727,400 sq.m. approved GFA), Zhangjiakou city, Hebei Province (approximately 150,000 sq.m. approved GFA), Yingtan City, Jiangxi Province (approximately155,000 sq.m. approved GFA) and Guiyang Phase 1, Guizhou Province (approximately 420,000 sq.m. approved GFA). The Group has various projects arcoss 33 cities. The Group's project portfolio will become more balanced in terms of geographic location. This will suit the Group's strategy of expanding other and medium-sized cities in China in the future."

The Group will continue to solidify its leading position as the most prominent operator and developer of underground commercial shopping centers in China. The Group is fully confident that it will achieve the full year target.

Company Background:

Renhe is one of the most prominent operators and developers of underground commercial shopping centers, with businesses in 33 major cities across 17 provinces and 2 municipal cities in China, including Harbin in Heilongjiang Province, Guangzhou in Guangdong Province, Wuhan in Hubei Province and Shenyang in Liaoning Province. The Company is a constituent of the Hang Seng Composite Size Index LargeCap Index and Hang Seng Mainland 100 in the Hang Seng Composite Index Series, as well as the MSCI Emerging Markets Index and MSCI China Index in the Morgan Stanley Capital International Index Series. For more information, please visit its website at www.renhebusiness.com

For further information, please contact:

Renhe Commercial Holdings Company Limited
Windy Chan
Tel: +852-3665-7722
Email: windychan@renhe.com.hk or media@renhe.com.hk

Hill & Knowlton Asia Ltd
Gary Li
Tel: +852-2894-6239
Email: renhe@hillandknowlton.com.hk