Aoyuan 2021 Interim Results Announcement- Guangzhou Main Venue

Aoyuan 2021 Interim Results Announcement- Hong Kong Sub-venue

Financial Highlights

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

announced today its unaudited interim results for the six months ended 30 June 2021.

Sustained sales and delivery growth to forge ahead with high-quality development

During the first seven months of 2021, Aoyuan’s property contracted sales increased by 28% y-o-y to RMB77.19 billion. During the first half of 2021, revenue increased by 15% y-o-y to RMB32.51 billion; net profit was RMB2.84 billion, net profit margin was 8.7%; core net profit was RMB2.87 billion, core net profit margin was 8.8%.

Arranges refinancing in advance and completed redemption of all public offshore senior notes due 2021

Exercising prudent capital management, Aoyuan issued US$738 million offshore senior notes and RMB1.82 billion onshore corporate bonds. It also secured 3-year offshore syndicated loans of over HK$2.1 billion in total from 12 commercial banks, completing offshore syndicated loan refinancing. Aoyuan values corporate creditability and has completed redemption of all public offshore senior notes due 2021.

As of 30 June 2021, total credit facilities amounted to approximately RMB242.6 billion, of which RMB128.3 billion were unutilized; cash collection rate was stable at 87%; liquidity was ample with total cash of approximately RMB68.3 billion.

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 30 June 2021, Aoyuan had over 70 urban redevelopment projects at different phases. They are expected to provide additional saleable resources of approximately RMB754.3 billion, of which RMB748.7 billion are located in the Greater Bay Area, accounting for 99%. In the first half of 2021, Aoyuan converted saleable resources from urban redevelopment of approximately RMB13.5 billion. In 2021-2024, saleable resources of approximately RMB242 billion are expected to be converted from urban redevelopment projects. Accelerating conversion of urban redevelopment projects enriches landbank and profitability.

Aoyuan maintained prudent land acquisition while leveraging its traditional strengths in merger and acquisitions, urban redevelopment, etc. with a focus on tier 1&2 cities. During the period, newly added saleable resources amounted to approximately RMB17.8 billion, of which 76% were converted from urban redevelopment projects. Proportion of new acquisitions located in tier 1&2 cities increased to 92%. As of 30 June 2021, total gross floor area of Aoyuan’s landbank was approximately 53.58 million sq.m. with total saleable resources of approximately RMB593.9 billion. Total saleable resources including urban redevelopment projects amounted to approximately RMB1,348.2 billion, with the proportion of projects in tier 1&2 cities rising to 84%, optimizing its landbank structure.

Outlook for 2H2021

Aoyuan management commented, “China maintains the long-term mechanism of ‘housing is for living, not speculation’ in the real estate industry, with the development model of property developers changing from scaling up to quality development. Aoyuan has been proactively optimizing its organizational structure. In particular, the Company has established Quality Living segment (core property business) and Joyful & Healthy Lifestyle segment (non-property business), strengthened integrated operations and delicacy management, and continued to enhance product competitiveness, customer experience and satisfaction. Operating results have seen improvement amid stability. 2021 marks the 25th anniversary of Aoyuan and a milestone year for a new phase of the Company. Aoyuan will continue to deepen its strategy of ‘one core business with vertical development’ and drive synergies between Quality Living and Joyful & Healthy Lifestyle. This gives full play to the Company’s comprehensive competitiveness, achieving sustainable and high-quality development, and thereby delivering stable and long-term returns to shareholders and investors.”