(5 October 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 S&P Global Ratings (“S&P”), a global leader in credit ratings, with its “B” corporate credit rating affirmed.

According to S&P, the upgrade reflects that Aoyuan’s credit profile will moderately improve while sales growth remains stable. It also reflects that Aoyuan will maintain a disciplined approach towards land acquisitions. Aoyuan has a larger operating scale in terms of sales than many of its similarly rated peers. In the first eight months of 2016, Aoyuan generated sales of RMB13.2 billion. Aoyuan is likely to control its spending on land acquisitions, and is not highly aggressive in its scale expansion. Aoyuan’s low-cost land reserves provide additional support for profitability and lower the need for aggressive land replenishment. At the same time, Aoyuan borrowing costs have continued to improve, and its liquidity is adequate. S&P may raise the rating if Aoyuan’s leverage ratio improves while the company maintains stable sales growth and margins.

Aoyuan management commented, "We are glad that S&P upgraded our credit rating outlook. Since the beginning of this year, the credit rating outlook of Aoyuan has been upgraded to “Positive” by the three major international rating agencies, namely Moody’s, S&P and Fitch, demonstrating wide recognition of Aoyuan’s operational efficiency, profitability and business strategies by capital markets and general public. In 2015, Aoyuan recorded contracted sales of approximately RMB15.2 billion, surpassing the full-year sales target. Aoyuan has maintained strong sales momentum in 2016, completing nearly 80% of its full-year sales target in the first eight months of the year. In addition, Aoyuan continues to maintain its prudent financial management and fully utilizes onshore and offshore financing channels to lower borrowing costs. Looking forward, Aoyuan will maintain its business growth at a rate above the industry average while continuously strengthening financial capabilities to achieve sustainable development, thus delivering satisfactory returns to its shareholders and investors.”