(16 Mar 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 that, Mr. Guo Zi Wen, the controlling shareholder and Chairman of Aoyuan, through his wholly-owned subsidiary Joy Pacific Group Limited, has entered into a sale and purchase agreement with Cathy Capital Group, the Company’s second largest shareholder, through its wholly-owned subsidiary Cathay Sino Property Ltd. on 16 March 2017. Pursuant to the agreement, Chairman Guo agreed to acquire and Cathay Capital Group agreed to dispose a total of 53,431,563 shares in the Company (representing approximately 2% of the entire issued share capital of the Company), for a cash consideration of HK$2.4 per share. Following the share purchases, Chairman Guo’s shareholding in the Company will be increased to 54.11%. 

 

Aoyuan management commented, “The increase of shareholding by Chairman Guo fully demonstrates his confidence in the Company’s future prospects. In 2016, Aoyuan achieved contracted sales of approximately RMB25.6 billion, exceeding its full year target by 51%. The Company has maintained strong sales growth in 2017 and recorded contracted sales of approximately RMB3.79 billion with a 72% y-o-y increase for the first two months of 2017. Benefiting from rapid business 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. Fitch Ratings further upgraded its long-term corporate credit rating to ‘BB-’ afterwards, which reaffirmed the wide recognition and confidence by capital markets and the public. Looking forward to 2017, Aoyuan will maintain its rapid growth momentum, while facilitating parallel development in domestic and overseas markets and internationalizing Aoyuan’s brand. We are confident in achieving our 2017 sales target of RMB33.3 billion, and will deliver fruitful returns to our shareholders and investors.”