OCT (Asia) Announces 2012 Interim Results

Profits Attributable to Shareholders Surge by 50.8% Overcome the Effect of Faltering Domestic and International Economies for Success

HONG KONG, Aug. 6, 2012 /PRNewswire-Asia/ --

Overseas Chinese Town (Asia) Holdings Limited ("OCT (Asia)" or the "Company", stock code: 03366.HK) and together with its subsidiaries, the "Group", is pleased to announce its unaudited interim results for the six months ended 30 June 2012 ("period under review").

During the period under review, the Company leveraging on its extensive experience and quality products, achieved the best operating results since the financial crisis in 2008 despite the macro economic control in the PRC and the faltering European and US economies. For the six months ended 30 June 2012, the Company recorded a turnover of approximately RMB914 million, representing an increase of approximately 41.7% from the same period last year; gross profit margin was approximately 27.5%, representing an increase of 7.9 percentage points from the same period of 2011; and profits attributable to shareholders were approximately RMB20.98 million, representing an increase of approximately 50.8% from the same period of 2011.

Ms. Wang Xiaowen, Chairman and Executive Director of OCT (Asia), said, "In early 2012, the Company made a clear strategic position. It strives to become an outstanding developer and operator of commercial complex by maintaining stable growth in its paper packaging business and gradually increasing its investment in commercial comprehensive development business. Such strategy started to bear fruit in 6 months and good operating results were achieved during the period under review."

During the period under review, the comprehensive development business recorded a turnover of RMB564 million, representing an increase of approximately 126.5% from the same period last year.

The equity interest of Chengdu Tianfu OCT Industry Development Company Limited ("Chengdu OCT") was held as to 51% by the Company. Chengdu OCT is a unique composite project comprising residential and commercial properties and a theme park, occupying a gross floor area of approximately 2,250,000 sq.m., among which the residential property projects have a gross saleable floor area of approximately 1,260,000 sq.m.. Despite the market conditions characterised by economic slowdown and stringent real estate policies, Chengdu OCT achieved satisfactory results in property sales during the first half of 2012, of which its low-density and high-rise residential products ranked the 1st and the 4th among the similar products of Chengdu City in terms of the sales area respectively. As of 30 June 2012, the property projects of Chengdu OCT recorded a turnover of approximately RMB464 million; the contracted sales area and revenue reached approximately 68,000 sq.m. and approximately RMB880 million respectively; and the settled area and revenue were approximately 32,000 sq.m. and approximately RMB480 million respectively. In addition, the rentable area of the commercial properties of Chengdu OCT is approximately 47,000 sq.m. at present, of which 99% have been occupied. Chengdu Happy Valley, one of the most influential theme parks in western China operated by Chengdu OCT, ranked top 20 among the theme parks in the Asia region in terms of its number of visitors in 2011 and is the only theme park in western China awarded with the rank. Chengdu Happy Valley attracted approximately 980,000 visitors throughout the period under review and recorded a turnover of approximately RMB100 million, representing an increase of approximately 14% from the same period of 2011.

The Company entered into an agreement in relation to the capital contribution to Overseas Chinese Town (Shanghai) Land Company Limited ("OCT Shanghai Land") on 5 January 2012. OCT Shanghai Land is currently engaged in the Suhewan project which is advantageously situated at the cross of Suzhou River and Huangpu River shores, Shanghai and possesses the highly scarce landscape resources. The project comprises 1 Jiefang, 41 Jiefang and 42 Jiefang with a total site area of approximately 71,000 sq.m. a gross floor area of approximately 280,000 sq.m. and a total gross floor area of approximately 430,000 sq.m.. It will be developed in phases based on the respective planning of each Jiefang. Upon completion, the project will include multi-storied riverside residential buildings, high-rise residential properties, apartment-style offices, luxury hotels, boutique business premises and studios of artists. The first pre-sale of the project is expected to be launched during the second half of 2012.

The Company currently holds 25% of the equity interest in Overseas Chinese Town (Xi'an) Industry Company Limited ("Xi'an OCT"). Xi'an OCT has a total site area of 137,000 sq.m.. Its major products are low-density residential properties such as duplex, compound and detached buildings. During the period under review, Xi'an OCT launched 44 compound buildings with a gross floor area of approximately 37,700 sq.m. available for sale. As of 30 June 2012, the settled area and revenue were approximately 1,861 sq.m. and approximately RMB52 million respectively.

During the period under review, the paper packaging business recorded a turnover of approximately RMB350 million. The paper packaging industry is facing challenges including the diminishing internal and external market demand as well as the hiking labour cost, leading to increasingly intensified competition across the industry. As such, the overall sales from the Company's paper packaging business during the first half of 2012 were lower than expected, yet the Company currently maintains generally stable average selling prices for its products.

Looking into the second half of 2012, the comprehensive development business and paper packaging business are expected to better profit from the gradually stabilised domestic economy with a slower soft-landing pace in the second half year, in view of the fine-tuned domestic macro economic policy. The Company will continue to create quality products in the future, seeking to enhance the market competitiveness of the Group through aggressive innovations.

Ms. Wang Xiaowen said, "The launch of the Suhewan project in Shanghai will provide the Company with a strong profit driver which will lead the Company through its gradual evolution into a developer and operator of commercial complex while securing sustainable stable business growths in the next years. By virtue of its unique overall planning and advantageous accurate market positioning, the Company is confident to capitalise on the 'OCT' brand and resources to adjust its sales policy timely with market changes and project operations and speed up its capital turnover. The Company is positioned to aggressively secure project reserve by developing at least one project in the economically developed cities each year to expand its business scale and growth potential. The year 2012 marks the first year for the Company to commence its implementation of a clear and new strategic position. The investment in the Suhewan project in Shanghai not only marks the first move by the Company to implement its new strategic goal, but also a milestone for its goal to forge a medium scale listed company in Hong Kong in the coming five years. "

About OCT (Asia)

Overseas Chinese Town (Asia) Holdings Limited ("OCT (Asia)") was listed on the Main Board of the Stock Exchange of Hong Kong on 2 November, 2005 (Stock Code: 03366.HK). Besides the manufacture and sales of quality paper-based packaging containers and materials, the Group has started engaging in the comprehensive development since 2007, striving to become an outstanding developer and operator of commercial complex. The Group is currently engaged in commercial complex projects such as Chengdu OCT projects and Shanghai Suhewan projects. Shenzhen Overseas Chinese Town Co., Ltd, the Group's indirect controlling shareholder, was established with the exclusive initiation by Overseas Chinese Town Enterprises Company, directly under State-owned Assets Supervision and Administration Commission of the State Council and was listed on Shenzhen Stock Exchange on 10 September, 1997. Please visit http://www.oct-asia.com for more details.

For further information, please contact:

Porda Havas International Finance Communications Group

Overseas Chinese Town (Asia) Holdings Limited
Tel: +86-755-2693-5118
Email: contact.asia@chinaoct.com