Aoyuan Announces 2012 Annual Results

Revenue and net profit grew by 30.5% and 110.7% to RMB 3,943 million and RMB 933 million respectively

Excellent results achieved to recommend final and special dividend of RMB5.2cents and HKD 26 cents respectively

HONG KONG, March 25, 2013 /PRNewswire/ --

Financial Highlights

China Aoyuan Property Group Limited ("Aoyuan" or the "Company", together with its subsidiaries the "Group"; Stock Code: 3883), one of the leading property developers in Guangdong Province in China, is pleased to announce its annual results for the year ended 31 December 2012.

Encouraging results

During the year, the Group's revenue was RMB3,943.2 million, increased 30.5% as compared with 2011. Gross profit increased 45.1% to approximately RMB1,186.5 million while gross profit margin increased to 30.1%. Net profit was RMB932.6 million, representing year-on-year growth of 110.7%. Basic earnings per share amounted to RMB35.7 cents (2011: RMB16.58 cents). Due to the excellent results, the board of directors proposed the payment of a final dividend of RMB5.20 cents per share (2011: RMB5.15 cents) in cash and a special dividend of HKD 26.00 cents per share with an option to receive in cash or in new shares or partly in cash and partly in new shares.

Full year sales target achieved, and the strategy of developing commercial and residential properties in parallel stepped up

The Group made proactive and effective measures to adopt appropriate marketing strategies and develop products that meet current market demands. It recorded total contracted sales of RMB5.25 billion with total gross floor area ("GFA") of approximately 835,800 sq.m., representing increases of 5% and 52% respectively compared with 2011 and accounted for 105% of its RMB5 billion sales target for the full year.

To cope with the strategy of "developing commercial and residential properties in parallel", the Group launched a number of commercial projects such as Shenyang Aoyuan-Convention Plaza, Aoyuan Health Plaza and Aoyuan-Hai Jing Cheng Phase II, which achieved excellent sales results. In 2012, the contract sales of commercial properties were satisfactory.

Aoyuan Plaza, the first large-scale integrated commercial project invested and developed by Aoyuan, together with the shopping mall was unveiled and grandly opened at the end of year 2012. The excellent quality of Aoyuan Plaza is well-recognized and supported by numerous merchants. Around 200 domestic and international first-tier brands have set up stores in Aoyuan Plaza. The opening of Aoyuan Plaza signified the Group's firm step in entering the commercial property market, and it has paved the path for Aoyuan's continued strategy of developing commercial and residential properties in parallel for further development of Aoyuan's commercial property businesses.

Other projects of the Group also recorded excellent sales results, Zhongshan Aoyuan has been a leader in the market since its launch in 2010, retaining top ten rankings for three consecutive years in the Zhongshan. Shenyang Aoyuan (The Metropolis and Convention Plaza) was the best-selling project in Shenyang in the first half of 2012 in terms of sales area and number of units sold, while for the full year it ranked second in both figures.  The Chongqing Aoyuan-Jinyu project basically completed the cycle of land acquisition, development and sale completion within the same year, serving as a testimonial of the Group's development strategy of "quick development and quick sale", and further proving the unsurpassed property project development and operation management capabilities of the Group.

Stable and healthy financial position, with expanding financing channels

In 2012, the Group continued to adhere to its prudent financial management policy. It also widened its financing channels and overturned its dependence on project development loans. It has now access to a wide range of financings including offshore debt issuance, fixed asset loans, entrusted loans, financing backed by bank guarantee, trust loan and project development loans, all of which provide fund assurance for the Group's solid operation and project expansion. The Group issued two bonds consecutively in late 2012 and early 2013, including 5-year US$125 million 13.875% senior notes on Nov 14, 2012 and US$100 million senior notes due 2017 at 6.668% premium on Jan 21, 2013, both of which were well received by the international capital market, a strong testimonial of wide investor recognition of the Group's overall strength. As at 31 December 2012, the Group's cash (including restricted bank deposits) amounted to approximately RMB3,143.5 million. Net gearing ratio was at approximately 25.6%, a low level within the industry.

Active acquisition of quality land bank at low cost

In 2012, the Group leveraged on its solid financial conditions and achieved remarkable results in land acquisition. Aoyuan acquired eight parcels of premium commercial and residential lands with newly added GFA of approximately 1,874,000 sq.m. in Chongqing, Zhuzhou of Hunan, Foshan of Guangdong and Panyu of Guangzhou, with strong end-user demand and less impact by the macroeconomic control policies of the central government. The newly acquired land parcels are all located in core district areas with sophisticated municipal facilities and convenient transportation. In particular, the Group acquired four projects in Zhuzhou of Hunan in 2012 through acquisitions and auctions to mark its grand entry into central China market. The Group adopts a strategy of maintaining quality land bank at low cost. On 31 December 2012, the Group had land bank with GFA of approximately 9,955,000 sq.m. at average cost of approximately RMB900 per sq.m. The land bank are mainly located in Guangdong, Shenyang, Hunan, Chongqing and Guangxi, among which 42.0% was located in Guangdong. The management believes that the existing abundant land bank can meet the needs of the Group's project development in the coming five to seven years.

Outlook of 2013

Looking forward, Mr. Guo Zi Wen, Chairman of Aoyuan said, "It is expected that the fundamental direction of regulating real estate market will not be reversed in 2013, and that the central government will continue to hold a tight grasp on policy directions, and curb investment and speculation to support and satisfy reasonable demands. In the future, the Group will continue to keep abreast of market conditions and acquire land in regions such as Guangdong, Shenyang, Chongqing, and Changsha-Zhuzhou-Xiangtan, our existing markets which have strong end-user demand and are less likely to be impacted by macroeconomic control measures by the Central Government. Meanwhile, the Group will also actively cooperate with the government to carry out the works on the 'transformation of the three olds' in a bid to acquiring lands with development potential at a low cost. The encouraging results we achieved in 2012 paved way for another successful 2013. In the new year, Aoyuan will continue to adhere to the operating strategy of 'rapid and balanced development', development strategy of 'rapid development and rapid sales' and product strategy of 'developing commercial and residential properties in parallel' to advance the development of Aoyuan in leaps and bounce. We will strengthen efforts in commercial property development and focus on achieving growth in both the commercial and residential sector.  We aim at bringing stable returns with sustainable growth to our shareholders."

Corporate Profile

Aoyuan is one of the leading property developers in Guangdong Province in China. Projects are mainly located in Guangdong, Shenyang, Hunan, Chongqing, Jiangsu, Guangxi, and Jiangxi. Aoyuan's land bank was 9,955,000sq.m. GFA as of 31 December 2012. Aoyuan takes the product strategy of "developing commercial and residential properties in parallel" and development strategy of "rapid development and rapid sale". With solid financial position and excellent project development and operation management capabilities, in 2013, Aoyuan will enter into a rapid expansion era.