(25 August 2014 - 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 unaudited interim results for the six months ended 30 June 2014.

The Company continued to achieve outstanding performance in the first half of 2014, with revenue up 24% year-on-year to approximately RMB2.66 billion. Gross profit rose 22% year-on-year to approximately RMB812 million, and gross profit margin maintained at approximately 30.5%, a similar leve compared with last year. Net profit amounted to approximately RMB320 million, while core net profit (excluding after tax fair value gains on investment properties) amounted to approximately RMB306 million.

In the first half of 2014, China recorded stable economic growth. Due to macro-controls by the government, the real estate market entered a phase of adjustment. Facing both opportunities and challenges, Aoyuan maintained a mindset of steady operations, and adhered to its product strategy of "developing commercial and residential properties in parallel"and the development strategy of "rapid development and rapid sales". The Company continued to deepen the standardization of its management and products, delivering marked improvements in the efficiency and quality of management and control. The business has seen steady growth during the period.

To respond to market change, Aoyuan adopted innovative marketing model and actively maximized its marketing channels. The Company achieved contracted sales of approximately RMB5.15 billion with contracted GFA sold of approximately 538,800 sq.m., representing y-o-y increases of 38% and 16%, respectively. The average selling price was RMB9,561 per sq.m., representing an increase of 19% as compared with the same period of last year. Commercial properties, which mainly comprise commercial apartments and retail shops, accounted for approximately 55% of total contracted sales in the first half of the year.

The Company upholds sound and prudent operational and financial management while actively expanding its financing channels. In January 2014, the Company successfully issued an offshore US$300 million 5-year senior notes, which were well received by the international capital market and were 4.2 times oversubscribed. This issue further optimized the debt structure of the Company and allowed the Company to develop its business in a more healthy and steady manner.

The Company has a sound financial position. As at 30 June 2014, total cash and cash equivalent (including restricted cash) was approximately RMB6.28 billion, and the net gearing ratio was approximately 70.4%, keeping at a reasonable and manageable level in the industry.

Riding on its solid financial position, the Company expands its land bank with a principle of balanced development, while giving preferential consideration to cities and regions where the Company has expanded and achieved satisfactory sales. The Company has acquired five high quality land parcels designated for commercial and residential development in Guangzhou, Chongqing, Yingde and Yunfu, with a total GFA of approximately 1.45 million sq.m.

As at 30 June 2014, Aoyuan possessed a total land bank of GFA 11.96 million sq.m., including 1.56 million sq.m. of completed properties, 4.00 million sq.m. under construction and 6.40 million sq.m. reserved for future development, which can meet its need for development in the next more than 5 years.

Management of Aoyuan commented: "Looking ahead, with our established strategic layout, we will continue to deepen and improve our internal control mechanisms, and actively respond to market changes. In the meantime, we will continue to uphold the operation strategy of "rapid and balanced development", leverage our traditional advantage of composite real estate, and explore related services in real estate industry chain, so as to realize business portfolio synergy while laying a solid foundation for our balanced and sustainable development in the future. We will continue to optimize our regional distribution and seize right opportunities so as to bring sustainable returns for our shareholders.