Hong Kong, 2 November 2011 – China Aoyuan Property Group Limited ("Aoyuan" or "the Group", SEHK Stock Code: 3883) today announced that it has acquired two plots of premium commercial lands at Guangzhou South Station, Guangzhou, in an auction for a minimum bidding price of approximately RMB669 million .

The two acquired lands, which located in the popular central district in Guangzhou, the Guangzhou South Station, is designed for commercial and financial uses. They have a total site area of approximately 16,700 square meters and a total gross floor area ("GFA") of approximately 133,800 square meters. The total consideration of the two acquired lands amounted to approximately RMB669 million, and the average land cost of the two plots of land is approximately RMB5,000 per square meter per GFA. According to the city planning of the Guangzhou municipal government, Guangzhou South Station, which is under construction, will be built as China"s largest hub of passenger transportation and an interchange point for inter-city railway, high-speed railway, subway and all the other means of public transportations. It will also be the largest railway station in Asia. The Group plans to develop a high-end commercial complex on the acquired lands, and the construction is expected to start in 2012.

The Group continues to adhere to the principle of prudent financial management policy and has plentiful cash and a low gearing ratio. As of 30 June 2011, Aoyuan had cash and cash equivalents( ) of approximately RMB3.8 billion and was at a net cash position. The Group"s outstanding financial strength will help it capture investment opportunities in the consolidation of the current property market. The Group will actively seek lands of low cost and high return. 

The Group adopts a dual strategy of developing commercial and residential properties in parallel. It has successfully developed a number of large and medium-sized commercial projects, including a large comprehensive commercial project Aoyuan Plaza in Guangzhou which   broke a sales record on a single day in the Pearl River Delta"s commercial property sector on the first day of its sales. The average sales price of the shops on the first three floors in the second phase of Aoyuan Plaza was approximately RMB40,000 per square meter, higher than those in the neighboring projects of the same type. Moreover, Aoyuan"s another project, Hai Jing Cheng, which is a city complex in Nansha, caused sensation in every of its sales. With its proven track record in commercial property development, Aoyuan is confident that it will be able to develop its commercial projects at Guangzhou South Station into landmarks. 

Mr. Guo Zi Wen, Chairman of Aoyuan, said, "We are very pleased that we have acquired premium lands in what will become Guangzhou"s central business district for a minimum bidding price. We are confident that, with the prime location, reasonable land cost and Aoyuan"s experience in commercial property development, we will be able to make the two commercial property projects a success. The Group will continue its dual strategy of developing commercial and residential projects in parallel to cope with the market cycles and macroeconomic policies. The strategy would help to generate stable and considerable income for the Group, and thus a better return for the shareholders."