Financial Highlights 

Performance press conference

(24 March 2020 – Hong Kong) China Aoyuan Group Limited (“Aoyuan” or the “Company”, Stock Code: 3883) announced today its annual results for the year ended 31 December 2019.

High Earnings Sustainability with Stable and Generous Dividend Policy

  In 2019, Aoyuan’s property contracted sales increased by 29% y-o-y to RMB118.06 billion, exceeding its full year sales target of RMB114 billion, rendering Aoyuan among the top 30 PRC developers. The compound annual growth rate for contracted sales in 2016-2019 reached 66%. As of 31 December 2019, unbooked revenue amounted to RMB170.5 billion, which will be gradually recognized in the next 2 years, demonstrating high earnings sustainability.

  During the year, Aoyuan attained robust growth in both revenue and profit. Revenue increased by 63% y-o-y to RMB50.53 billion. Gross profit increased by 56% y-o-y to RMB15.02 billion; gross profit margin was 29.7%. Net profit increased by 78% y-o-y to RMB5.22 billion; net profit margin was 10.3%. Core net profit increased by 67% y-o-y to RMB5.12 billion; core net profit margin was 10.1%. Earnings per share increased by 74% y-o-y to RMB156.48 cents per share. To thank Aoyuan’s shareholders and investors for their support, the Board of Directors recommended a final dividend of RMB55.0 cents per share (equivalent to HKD60.1 cents), representing a dividend payout ratio of 35%, maintaining a stable and generous dividend policy.

Outstanding Financing Capability with Continued Upgrades in Credit Rating and Rating Outlook

  Aoyuan is committed to sound financing channels diversification and prudent financial management. In 2019, Aoyuan successfully raised US$1.45 billion through issuance of senior notes in public and private offering. Aoyuan opened the Asia USD bond market and subsequently launched the first fully marketed 3-year PRC property high yield issuance since end of 2018, and successfully issued USD bonds to the Singaporean sovereign wealth fund through private offering. Furthermore, Aoyuan successfully issued RMB1.5 billion onshore corporate bond. In 2019, Aoyuan successfully secured an aggregate of approximately HK$1.6 billion 3-year syndicated banks loans from 5 offshore commercial banks in two tranches. As of 31 December 2019, total credit facilities amounted to approximately RMB184.0 billion, of which RMB 64.7 billion were unutilized. As of 31 December 2019, total cash amounted to approximately RMB68.1 billion, sufficient to cover short-term borrowings.

  Aoyuan's outstanding financing and execution capabilities have been well-recognized by the capital markets. Aoyuan has earned three no. 1 rankings by Institutional Investor, specifically in “Global Fixed-Income Executive Team” overall weighted score, “Best Investor Relations - High Yield” and “Best Use of Debt - High Yield” in global real estate and construction sector. Meanwhile, Aoyuan’s corporate rating and rating outlook were upgraded to “positive” outlook by all 3 major international rating agencies, namely Fitch, S&P and Moody’s in 2016-2019. Aoyuan also received a “BB+” global scale long-term issuer credit rating with “stable” outlook from Lianhe Ratings Global. United Credit Ratings upgraded Aoyuan’s domestic credit rating to “AAA”, the highest credit rating in China, which helps further lowering borrowing costs.

Capitalize on Traditional Strength of M&A to Replenish Land Bank with Full Coverage of “Three Olds” Urban Redevelopment

  Aoyuan acquired a total of 87 new projects with newly added GFA of approximately 16.09 million sq.m. (M&A: 79%) and newly added saleable resources of over RMB186.1 billion, with an average land cost of RMB3,199 per sq.m, which helps maintaining reasonable land cost and stable margins to weather market downturn. As of 31 December 2019, total GFA of Aoyuan’s land bank was approximately 45.03 million sq.m. (attributable:79%) with total saleable resources of approximately RMB458.5 billion. Total saleable resources including urban redevelopment projects amounted to RMB684.5 billion.

  Aoyuan continued to advance its urban redevelopment projects. Having achieved full coverage of "Three Olds" urban redevelopment, including old towns, old villages and old factories, Aoyuan has over 30 urban redevelopment projects at different phases, providing additional estimated saleable resources of approximately RMB226 billion, of which 89% are located in the Greater Bay Area. These projects strategically replenish Aoyuan’s land bank, as well as providing additional sales momentum to Aoyuan’s future growth.

Outlook for 2020

  Aoyuan management commented, “In 2019, Aoyuan attained robust growth in both revenue and profit with contracted sales exceeding RMB100 billion, ranking among Top 30 PRC developers with growing comprehensive strength. In face of the COVID-19 outbreak since early 2020, Aoyuan has been actively and rapidly shouldering its corporate social responsibility through fully supporting medical professionals battling the epidemic at the frontline. Not only is Aoyuan among the first batch of property companies providing support to Wuhan, but also the first company to directly procure medical supplies and rapidly deliver them to frontline hospitals in urgent need. While the COVID-19 outbreak has been basically curbed in China, it is still spreading outside China. Global economic growth is under pressure while low interest rate and QE environment will continue. Looking forward, Aoyuan will maintain a measured scale, strengthen risk management, enhance delicacy management and lift customer satisfaction to elevate operating profits and achieve sustainable and high-quality development, delivering stable and long-term returns to shareholders and investors.