(30 September 2016 - Hong Kong) China Aoyuan Property Group Limited (“Aoyuan” or the “Company”, Stock Code: 3883), a renowned property developer in China, is pleased to announce that the Company’s corporate credit rating outlook has been upgraded to “Positive” from “Stable” by Moody’s Investors Service (“Moody’s”), a global leader in credit ratings, with its “B2” corporate credit rating affirmed.

 

According to Moody’s, the upgrade reflects the improving trend in Aoyuan’s credit profile, stemming in turn from its strengthened level of sales execution, lower borrowing costs, and disciplined approach in land acquisition. Aoyuan has exhibited robust sales execution, as reflected in contracted sales of RMB13.2 billion in the first eight months of 2016, up 55% year on year. The growth is also higher than the national average growth for China’s residential sales. Moody’s also expects that Aoyuan will sustain these improvements and show credit metrics better than those of its B2 peers. Meanwhile, a further upward rating could emerge if Aoyuan demonstrates a track record of strong contracted sales and revenue recognition, a consistently prudent pace of land acquisition, and improvements in credit metrics, etc..

 

Aoyuan management commented, “Following that Fitch revised the rating outlook of Aoyuan to Positive early this year, Moody’s has also upgraded the rating outlook to Positive. This reaffirmed that Aoyuan’s operational efficiency, profitability and business strategies are well recognized by capital markets and general public. Aoyuan has maintained robust sales growth in recent years. The contracted sales in 2015 recorded approximately RMB15.2 billion, which tripled the contracted sales in 2012. Aoyuan achieved strong contracted sales totaling approximately RMB13.2 billion in the first eight months of 2016, completing nearly 80% of its full-year sales target. In addition, Aoyuan continues to maintain its prudent financial management. As of 30 June 2016, the net gearing ratio was kept at a reasonable level of approximately 56.0%. Looking forward, Aoyuan will maintain its business growth above the industry average while continuously strengthening financial capability to achieve sustainable development, thus delivering satisfactory returns to its shareholders and investors.”