(Hong Kong, 20 April, 2010) China Aoyuan Property Group Limited （"China Aoyuan" or “the Group", Stock code:3883.HK) announced 2009 annual results for the year ended 31 December 2009.

Even though the China real estate market fluctuated during the year under review, the Group"s revenue saw a substantial increase of 281.4% to RMB2,360 million. Gross profit increased 1,831% to RMB 440 million. Gross profit margin was 18.6%. Profit attributable to shareholders rose dramatically to RMB 320 million when compared with 2008. Basic earnings per share was RMB 13.23 cents. The Board of Directors proposed payment of a final dividend RMB3.3 cents per share and special dividend RMB 1.7 cents per share for the year end 31 December 2009. 

Commenting on the positive 2009 results, Mr. Guo Zi Wen, Chairman and CEO of China Aoyuan, said, “The Chinese government adopted a series of economic stimulus measures and rescue policies to boost the economy last year. The Chinese real estate market, thus, was able to come out of the shadows of the market downturn in 2008, and recover rapidly in 2009. China Aoyuan seized the opportunities for investment, for M&A of quality projects, and for the rapid capital return during the most appropriate time of the market turnaround. Because of our excellent marketing management and cost controls, the group achieved excellent sales and recorded strong growth in revenue, the Group achieved its annual sales target ahead of schedule in October 2009"

During the period, the Group"s contracted sales were RMB 2,880 million, up by 111.2%. Total gross floor area (GFA)sold was 589,100 sq. m., up 98.3% when compared with 2008. Chongqing Aoyuan ? City of Health and Nansha Aoyuan were the major income drivers in 2009. Chongqing Aoyuan ? City of Health entered into the monthly TOP 10 single site sales ranking of Chongqing in 2009 for 10 times. It also ranked the first in terms of area and units sold for single site in Chongqing property market in 2009. In addition, the processes of constructing show flats, sales and revenue collection at the Qingyuan Aoyuan Phase I were completed in a short period of time, demonstrating an outstanding performance of achieving development and capital return within the same year. The Chongqing and Qingyuan projects were two major contributors to our excellent sales and cash inflow in 2009. 

During the year under review, the completed and delivered GFA was increased by 129.4% to 522,800sq.m. and the recognized revenue was RMB2,360 million, representing an increase of 285.6% when compared with last year. This clearly reflects the Group excellent execution capabilities.

Building on the remarkable results and sophisticated financial planning, the Group had RMB 2.03 billion cash in hand for the year ended 31 December 2009. The gearing ratio was as low as 15.4%. In addition, with good banking relationships, the Group can capture the advantage of strong capital strength for the market business opportunities.

Investment performance of the Group was also outstanding, several mergers and acquisition projects during the year helped the Group successfully expand the size and the land bank in core areas. All of these will build a strong platform for the Group"s future development. The Group completed 3 acquisitions during the period, namely, 

1.Chang"an Ave.: Located at an excellent geographic location in Beijing"s CBD. The cooperation of the Beijing project is a milestone event in China Aoyuan"s history, which signals a shift of the Group"s strategic focus and further expansion into more tier one cities. The “low carbon high comfort" and luxury image of Chang"an Ave. was distinctive.  This greatly enhanced the brand value of China Aoyuan.

2.Zhongshan Aoyuan Plaza: A high-quality and low cost land reserve with total GFA of approximately 700,000 sq.m.. With our sophisticated financial leverage, the land has a very high internal return rate and will be able to sustain the Group"s revenue and profit growth for the next 3-5 years.

3.Aoyuan Plaza: A 100 % owned large-scale commercial project with a shopping mall and hotel/apartment complex. It is a high margin project and its development was greatly enhanced after it became the Group"s wholly owned project. 

With many years operation experience in Shenyang, the Group has deep local market knowledge and relationships. Through public auction, the Group successfully acquired the Sujiatun project in Shenyang, namely Shenyang Aoyuan ? International New Town. This project is located in a central location with a relatively low cost, it can be built to eventually total an area of 2.43 million sq.m.  The land auction price was only RMB 822 million, equivalent to RMB 338 per sq. m. 

With the above mentioned mergers, acquisitions and public auction, the Group has a strategic presence in top tier cities and cities with strong natural resources, spanning from Beijing, Shenyang to Guangzhou. The Group"s land bank has grown remarkably from 5.62 million sq. m. in 2008 to 9.03 million sq. m. in 2009.   

China Aoyuan"s brand characteristics and uniqueness have been further strengthened in 2009. Based upon our research and development, the Group developed a “low carbon emission healthy living place" standard. Our Chang"an Ave. project has adopted 15 world leading low carbon emission technologies.  Its environmentally friendly green concept has made the project become one of the representatives in the real estate industry.  Besides, it has built a strategic advisory relationship with CIHAF China Home. In addition, Nansha Aoyuan project sets low carbon emission healthy living as its development theme, and Zhongshan Aoyuan has applied for designation as a PRC healthy living apartment trial project.  All of the above progresses establish China Aoyuan"s strong image of building for a low carbon emission healthy life. 

Outlook for 2010 — Strengthen our presence in top tier cities and promoting the low carbon emission living concept 

Our major project in 2010 is Chang"an Ave.. Its first month internal sale results have been recognized as one of the top three best selling projects in Beijing. This reflects the enormous potential of the project. The Group is confident that after the project commenced launch pre-sale to the public it will have remarkable achievement and generate excellent returns for the Group in the coming 2 to 3 years.

For the future development, Mr. Guo said, “There are both opportunities and threats in the PRC property industry. China Aoyuan will strengthen its brand, focus on low carbon emission, healthy and energy conserving technologies at our property developments. We will continue to use our mergers and acquisition strategy to expand our presence in top tier cities and to grasp opportunities in second tier cities. Urban redevelopment projects will also be one of our focuses. China Aoyuan forecasts in 2010 to achieve an area of approximately 867,000sq.m. for construction newly commenced and 600,000 sq. m. for area to be completed. In view of the market developments, the Group will adopt appropriate cost control planning and enhance operating efficiency.  We are confident we will achieve good results for our shareholders in the coming year."