(12 March 2017 – Hong Kong) China Aoyuan Property Group Limited (“Aoyuan” or the “Company”, Stock Code: 3883), a renowned property developer in China, is pleased to announce its audited consolidated annual results for the year ended 31 December 2016.

 

In 2016, the Company achieved total contracted sales of approximately RMB25.6 billion, representing a significant y-o-y increase of 69%, and exceeded its annual target by 51%. Among which, residential properties and commercial properties accounted for 73% and 27% respectively. Contracted sales from Guangdong province and non-Guangdong provinces each accounted for approximately 48% of total contracted sales, while sales from overseas projects accounted for approximately 4%.

 

In 2016, Aoyuan maintained strong growth momentum and achieved revenue of approximately RMB11.8 billion, representing a y-o-y increase of 24%. Gross profit increased by 24% to approximately RMB3.3 billion, with gross profit margin at approximately 27.7%. Net profit excluding exchange loss increased by 25% y-o-y to approximately RMB1.48 billion, while net profit margin was 12.5%. To celebrate the 10th year anniversary Aoyuan’s listing on the Stock Exchange of Hong Kong and its robust sales performance, the Board of Directors recommended a final dividend of RMB9.7 cents per share and special dividend of RMB5.3 cents per share. Thus the total recommended dividend is RMB15.0 cents per share.

 

Aoyuan continued to achieve satisfactory progress towards parallel development in domestic and overseas markets. The recognition of the local Australian market gained from the Sydney projects demonstrates the Company’s excellent execution capability in overseas markets. In November 2016, Aoyuan successfully acquired two high quality residential projects in Sydney, namely Altessa 888 Gordon and Mirabell Turramurra. The projects are expected to launch for presale in the first quarter of 2017, laying a solid foundation for the Company’s sustainable development in Australia. In March 2017, Aoyuan acquired a high quality project next to Vancouver CBD, Canada. The Company will replicate its successful experience in Australia and develop the Vancouver project by capitalizing on its localization strategy for overseas development and provide high-end residential units.

 

Aoyuan continued to adhere to its land acquisition strategy with a focus on Tier 1 and 2 cities in 2016. Leveraging its diversified land acquisition channels, Aoyuan has acquired a number of high quality land parcels in Guangzhou, Shenzhen, Foshan, Chengdu, Nanning and Sydney Australia, etc., with the newly added GFA of approximately 3,140,000 sq.m., laying a solid foundation for the Company’s sustainable development. As of 31 December 2016, Aoyuan had a total land bank of 14.7 million sq.m. in GFA, which is sufficient for the development needs for approximately five years.

 

Aoyuan upholds a prudent financial management while proactively diversifying its onshore and offshore financing channels, continuously strengthening its financial position. As of 31 December 2016, the net gearing ratio of the Company was 50.7% and the cash collection ratio remained at a relatively industry-high level of 90%. Since 2016, the Company raised funds of approximately US$900 million and RMB2 billion through diversified funding channels including offshore syndicated loans, issuance of senior notes and domestic corporate bonds so as to provide the Company with sufficient financial support.

 

In 2016, Aoyuan has completed the early redemption of an aggregate principal amount of US$225 million 13.875% senior notes due 2017 and US$100 million 9.25% senior notes due 2018 respectively. In February 2017, the Company has also completed the early redemption of US$300 million 11.25% senior notes due 2019, further optimizing its debt structure and lowering its borrowing costs.

 

Benefiting from rapid sales growth, disciplined land acquisition and healthy financial profile, Aoyuan became the only PRC developer whose credit rating outlook was upgraded to “Positive” by the three major international rating agencies, namely Moody’s, S&P and Fitch Ratings, in 2016, and Fitch Ratings further upgraded its long-term corporate credit rating to ‘BB-’ afterwards.