Financial Highlights

(30 March 2021 – Hong Kong) China Aoyuan Group Limited (“Aoyuan” or the “Company”, Stock Code: 3883)

announced today its annual results for the year ended 31 December 2020.

Performance press conference

Performance press conference

Sustainable revenue and earnings growth with stable and generous dividend policy

In 2020, Aoyuan’s property contracted sales increased by 13% y-o-y to RMB133 billion, completing its full year target and ranking solidly among top 30 PRC developers. As of 31 December 2020, unbooked revenue amounted to RMB196 billion, demonstrating high earnings sustainability.

During the year, Aoyuan achieved sustainable growth in both revenue and earnings. Revenue increased by 34% y-o-y to RMB67.8 billion; net profit increased by 35% y-o-y to RMB7.1 billion; net profit attributable to shareholders increased by 41% y-o-y to RMB5.9 billion. Earnings per share increased by 40% y-o-y to RMB218.8 cents per share. During the year, urban redevelopment achieved satisfactory profit from primary development. In addition, with 2021 marking the 25^th anniversary of Aoyuan, the Board of Directors recommended a final dividend per share of RMB66 cents and a special dividend per share of RMB11 cents, making up a total dividend per share of RMB77 cents, up 40% year-on-year, maintaining a stable and generous dividend policy.

Seizes market window and arranges refinancing in advance

Exercising prudent capital management, Aoyuan places great value on corporate credibility and arranges refinancing in advance. In 2020, it issued US$1.23 billion of offshore senior notes and RMB3.72 billion of onshore corporate bonds, setting record low borrowing cost among Aoyuan’s offshore and onshore issuances . It also secured a total of US$370 million of offshore syndicated loans and bilateral loans from 10 commercial banks. As of 31 December 2020, total credit facilities amounted to approximately RMB255.0 billion, of which RMB134.8 billion were unutilized; total cash amounted to approximately RMB70 billion, sufficient to cover short-term borrowings.

Accelerating conversion of urban redevelopment with optimizing landbank structure

Aoyuan has made early foray into urban redevelopment with abundant talent, experience and resources in the realm, rendering the Company a top notch player of urban redevelopment in the Greater Bay Area. As of 31 December 2020, Aoyuan had over 60 urban redevelopment projects at different phases. They are expected to provide additional saleable resources of approximately RMB673 billion, of which RMB655.2 billion are located in the Greater Bay Area, accounting for 97%. In 2020, 10 urban redevelopment projects have been successfully converted, 8 of which entering the landbank, providing saleable resources of approximately RMB38.2 billion. In the next three years, saleable resources of approximately RMB160 billion are expected to be converted from urban redevelopment projects. Accelerating conversion of urban redevelopment projects enriches landbank and profitability.

In 2020, Aoyuan replenished landbank with newly added gross floor area (“GFA”) approximately 20.15 million sq.m. and newly added saleable resources of approximately RMB242.6 billion. The proportion of projects in Tier 1&2 cities increased to 70%. Aoyuan has maintained diversified land acquisition channels with the proportion of urban redevelopment projects and others rising to 16% in terms of saleable resources. As of 31 December 2020, total GFA of Aoyuan’s landbank was approximately 57.18 million sq.m. (attributable: 71%) with total saleable resources of approximately RMB620.8 billion. Total saleable resources including urban redevelopment projects amounted to approximately RMB1,293.8 billion, with the proportion of projects in Tier 1&2 cities rising to 82%, optimizing landbank structure.

Outlook for 2021

Aoyuan management commented, “In 2020, albeit the challenges of COVID-19 and complex macro environment, Aoyuan achieved sustainable revenue and profit growth and successfully accomplished its full-year sales target. Ranking solidly among top 30 PRC developers, the Company has maintained sound business development. 2021 marks the 25th anniversary of Aoyuan and a milestone year for a new development phase of the Company. Aoyuan actively seeks changes to achieve flat management, strengthening the headquarters’ direct control of city subsidiaries with a focus on high-tier cities to groom city subsidiaries achieving RMB10 billion sales or above. Aoyuan has also established Yuekang Holdings to comprehensively coordinate the non-property business segment and empower the core property business. The continuous deepening the strategy of ‘one core business with vertical development’ will give full play to the comprehensive competitiveness of the Company, achieving sustainable and high-quality development in the stride towards Global 500, and thereby delivering stable and long-term returns to shareholders and investors.”