Continuing its sales success in 2009, the Group"s achieved an outstanding growth in property sales with contract sales amounted to approximately RMB 4.8 billion, increased by 65.5% as compared to last year. Total sale areas were approximately 442,400 s.q.m. The Group"s revenue was approximately RMB 2,442 mm, gross profit increased 49.2 % to RMB 656 mm, and gross margin was 26.9%. Profit attributable to shareholders was RMB 321 million. Basic earnings per share was RMB 12.3 cents. The Board of Directors has recommended a final dividend of RMB 3.3 cents per share.

Commenting on the Group"s remarkable results during the year under review, Mr. Guo Zi Wen, Chairman of Aoyuan, said, "2010 is a year of challenge for the real estate industry as the central government implemented successive macro control measures to curb housing speculation. Nevertheless, thanks to Aoyuan"s astute investment and strategic planning coupled with its outstanding execution capability, the Group launched a number of quality projects during the year and achieved extraordinary sales performance, turning 2010 into a year of tremendous success for Aoyuan. During the year, the Group also enhanced its branding program and management system, which boosted its core competitiveness and sales further, and ultimately contributed to the record-breaking revenue growth."

Achieving Stunning Sales Performance with Successful Project Launches

In 2010, Aoyuan launched a number of quality projects under its strategic development program, from residential to commercial projects with a rapid subscription rate, which brought a remarkable sales success. For the Group"s large-scale commercial complex in Panyu District, Guangzhou City — "Aoyuan Plaza", all 140 commercial shops in phase 1 were sold out on the first day of its official launch and 260 out of 286 apartments were also sold on the same day, which generated a total subscription sales of RMB 910 million in aggregate. "Shenyang Aoyuan·The Metropolis" also recorded brilliant sales since all 70 townhouses and 184 low-rise apartments in phase 1 were sold out within 4 hours of its launch, which generated subscription sales of more than RMB300 million. The selling craze created by these commercial and residential complexes reflected the successful implementation of the Group"s strategy on maintaining a balance mix of residential and commercial projects, which has not only secured consistent sales growth but also enhanced Aoyuan"s profitability and risk resistance ability.

Implementing Brand Strategy of "Building a Healthy, Low-carbon Lifestyle"

In 2010, incorporating its expertise on low-carbon technology, exercise and wellness regimen in construction projects, the Group successfully implemented its concepts of "Building a healthy, low-carbon lifestyle", which enhanced the projects" value-added advantages and boosted the Group"s property sales. These acclaimed environmentally-friendly projects have received nationwide recognition and established Aoyuan as a pioneer developer of low-carbon housing.

During the year, Aoyuan introduced a number of advanced international green technologies and won authoritative recognition. "Zhongshan Aoyuan" was awarded "The China LivCom Project Award" and "The Nomination Award of the LivCom Award" by United Nations Environment Programme (UNEP). "Shenyang Aoyuan?The Metropolis" received "UNHABITAT Ecological Technology Best Practices Award". In addition, teaming up with Guangzhou University of Traditional Chinese Medicine, the Group created "Aoyuan?Regime City" in Nansha District, Guangzhou City, which was the well-known large-scale health care and health management institution in China. Nansha Aoyuan successfully developed regimen residential products, and created very competitive operation model. Nansha recorded contracted sales amount of over RMB 1 billion for the year.

Maintaining Healthy Financial Position for Stable Growth

Aoyuan enjoys a healthy and stable financial position. In August 2010, the Group made an early cash redemption of US$60 million in total principal amount of the convertible notes which are due in 2012. As of 31 December 2010, the Group"s bank balances amounted to approximately RMB 3,839 mm. Aoyuan is at a net cash position that will help the Group grasp market opportunities and further its expansion in future.

Outlook for 2011

Currently, the Group has 17 projects under development, which are primarily located in Guangdong Province, Beijing City, Jiangxi Province, Chongqing City, Yulin City and Shenyang Province. Mr. Guo said, "Despite effects of the ongoing macro control measures on the real estate market, we believe that the reform on income distribution system, wage hike and urbanization will create huge demand for better housing. To tap this enormous market potential, Aoyuan will enhance its brand advantage and strengthen its eco-friendly building program that incorporated low-carbon technology, exercise and wellness regimen system, thereby creating more value-added benefits for home buyers and unique selling factors for the Group. In addition, the Group will maintain its strategy on balance mix of commercial and residential projects for stable income and business growth. Backed by healthy financial position and diversified project mix, Aoyuan will actively explore other opportunities in the real estate market and strive to become a leading property developer in China."