Top Spring International Announces Interim Results 2012

Contracted Sales Surges 38.1% to HK$3,590.7 million

HONG KONG, Aug. 29, 2012 /PRNewswire-Asia/ -- Top Spring International Holdings Limited ("Top Spring" or the "Company" and, together with its subsidiaries, the "Group") (Stock Code: 3688), a real estate property developer in the PRC and one of the major real estate property developers in Shenzhen and Changzhou, announced its unaudited interim results for the six months ended 30 June 2012 ("period under review").

For the six months ended 30 June 2012, the Group's turnover reached HK$2,195.1 million and recorded a gross profit of approximately HK$859.9 million. Profit attributable to equity shareholders amounted to approximately HK$258,8 million. Basic and diluted earnings per share was approximately HK25.86 cents. The Board of Directors declared the payment of an interim dividend of HK15 cents per share for the six months ended 30 June 2012 (1H2011: HK15 cents per share).

The Group recorded contracted sales of approximately HK$3,590.7 million in the period under review, representing a significant growth of approximately 38.1% over the same period of 2011 and accounted for approximately 59.8% to 71.8% respectively of its 2012 contracted sales target range of HK$5.0-HK$6.0 billion. Up to 19 August 2012, the Group achieved satisfactory result in contracted sales of approximately HK$4,670.2 million, representing an increase of approximately 18.9% over the corresponding period of 2011 and achieving approximately 77.8% to 93.4% respectively of its 2012 contracted sales target range.

For the six months ended 30 June 2012, satisfactory sales performance was achieved by the Group's new project launches in Shenzhen, Changzhou, Chengdu and Hangzhou. In particular, with its strong brand name, outstanding product quality, and innovative product design, The Spring Land Phase 5 in Shenzhen, which was launched for pre-sale on 10 June 2012, recorded robust contracted sales amounting to approximately HK$1,538.8 million up to 30 June 2012. The project was also awarded the best-selling project in Shenzhen in terms of contracted sales for the first day of launch and for a single month during the first half of 2012.

For the six months ended 30 June 2012, the Group generated steady recurring rental income of approximately HK$55.5 million, representing an increase of approximately 9.9% over the approximately HK$50.5 million recorded for the same period last year. As at 30 June 2012, with the completion of the retail assets at the Spring Land Phase 3– Fashion Walk, the leasable GFA of the Group's investment properties under operation amounted to approximately 170,018 sq.m., an increase of approximately 15.2% over approximately 147,625 sq.m. at the end of 2011. The shopping mall of Chengdu Landmark and the retail asset of Changzhou Le Leman City Phase 9 (2-B) are expected to commence operation in May 2013 and October 2013, respectively, which together will further increase the leasable GFA of the Group's investment properties under operation by approximately 35.3% to approximately 229,993 sq.m.. Despite the overall slowdown in retail sales growth, the leasing progress of the two projects has been progressing well with 93.1% of the leaseable GFA of Chengdu Landmark Shopping Mall and 100% of the leaseable GFA of the retail asset of Changzhou Le Leman City Phase 9 (2-B) pre-committed to date.

The Group replenished its land bank selectively. During the period under review, the Group acquired three parcels of land in Tianjin, Changzhou and Nanjing representing a total plot ratio GFA of approximately 375,462 sq.m. and the average land cost was approximately RMB4,686.2 per sq.m. (equivalent to approximately HK$5,754.2 per sq.m.). As at 30 June 2012, the Group's landbank comprises of a total of 15 projects over 8 cities with a total net saleable/leaseable GFA of approximately 4,142,082 sq.m..

Looking forward, the Group believes the Central Government will continue to encourage home purchases by first home buyers or first-time upgraders in order to support economic growth. On the other hand, regulatory measures will likely remain in place in the short to medium term to prevent over-speculation in the housing market. This together with the still relatively high inventory level of developers would suggest that material price growth of residential properties would be difficult to come by. In the second half of 2012, to better cope with the market changes and to enhance returns, the group will further step up its efforts on promoting property sales, with volume as opposed to selling price as the priority, enhancing its project execution capability, more stringent cost controls, introducing better incentive schemes for employees, etc.

To strengthen the brand and competitiveness in the market, the Group will strike to further improve the quality of product. The Group will continue to acquire quality and cost effective landbank with strong appreciation potential in the second half of 2012. Consistent with its strategy, the Group will maintain a balance between residential properties that meet end-user demands and urban mixed-use communities with a reasonable portion of investment properties in its future landbank acquisition. It will also diversify its landbank in terms of both geographical presence (i.e. focus mainly on the first and second tiered cities complemented by third and fourth tiered cities) and maturity profile of its projects. The Group will acquire landbank through multiples channels in order to control the risk and enhance rewards profile of the acquisitions.

Mr. Wong Chun Hong, Chairman, Chief Executive Officer and Executive Director of the Group concluded "the Group will firmly adhere to its dual modes business model of "medium to high-end residential properties + urban mixed-use communities", as we continue to see a tremendous long-term potential for good quality, well located residential properties in China given the combined effect of the consistent growth in both urban population and household incomes. We are confident to bring stable and satisfactory return to the shareholders."

About Top Spring

Top Spring is a real estate property developer in PRC specialising in the development and operation of urban mixed-use communities and the development and sale of upscale residential properties in the Pearl River Delta, the Yangtze River Delta Beijing-Tianjin and Chengdu-Chongqing regions. Based in Hong Kong and Shenzhen and under the leadership of Mr. Wong Chun Hong, our Founder, Chairman and Chief Executive Officer, as at 30 June 2012, we had a total of 15 projects over 8 cities in various stages of development in Shenzhen, Changzhou, Hangzhou, Nanjing, Chengdu, Dongguan, Tianjin and Huizhou, with a total net saleable/leasable GFA of approximately 4,142,082 sq.m.. On 23 March 2011, Top Spring listed its shares on the Main Board of The Stock Exchange of Hong Kong Limited and opened the door to the international capital market.

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