Yuzhou Properties Announces FY2010 Annual Results

HONG KONG, April 1, 2011 /PRNewswire-Asia/ -- Yuzhou Properties Company Limited ("Yuzhou Properties" or the "Company") (stock code: 1628.HK), one of the leading property developers in China, announced today the audited annual results of the Company and its subsidiaries (collectively referred to as the "Group) for the year ended 31 December 2010 (the "review period").

Financial Highlights:

The Group achieved very satisfactory results in the review period. It continued to consolidate its advantageous position in the West Strait Economic Zone, steadily penetrated into the Yangtze River Delta Region and strategically positioned itself in the Bohai Rim Region. Turnover of the Group substantially increased by 114.2% to approximately RMB 4.266 billion. Gross profit increased by 79.9% to approximately RMB 1.777 billion. Core net profit increased by 88.5% to RMB 757 million. The board of directors proposed a final dividend of HK 11 cents per share, representing a payout ratio of 30% of core profit attributable to shareholders. Core earnings per share were RMB 32 fen, up 52.4% from the previous year.

Overview of 2010 Annual Results

As of 31 December 2010, the Group recognized sales amount of RMB4,198.04 million and area sold of approximately 528,282 sq.m., representing a significant increase of 116% and 183% respectively over 2009. In 2010, contracted sales area of the Group was approximately 380,000 sq.m., The contracted sales was approximately RMB5,217.27 million, up 35% over 2009.

During the review period, the Group pursued the strategy of "focusing on the West Strait Economic Zone and aiming for contribution to China". It actively seized the opportunity for acquisition and strategically increased quality land reserves of approximately 5.44 million sq.m. with low land cost, of which the GFA of approximately 4.18 million sq.m. are with primary land development qualification. These lands are mainly located in the West Strait Economic Zone, the Yangtze River Delta Region and the Bohai Rim Region, accounting for 52%, 4% and 44% respectively.

The Group possesses quality land reserves at low cost. As at 31 December 2010, the aggregate GFA of the Group's land reserves was 4.92 million sq.m., average land cost of approximately RMB1,620 per sq.m.. In view of the primary land development qualification of two projects obtained by the Company, the Group believes that its land reserves currently held and managed are sufficient for future development over a period of five to six years.

As of 31 December 2010, the aggregate saleable GFA of the Group's land reserves was over 4.91 million sq.m., of which saleable GFA of completed and unsold properties amounted to approximately 150,000 sq.m.. Saleable GFA of projects under development amounted to approximately 1.95 million sq.m. and the GFA of projects held for future development was approximately 2.81 million sq.m.. In addition, we had two projects granted primary development qualification with expected aggregate GFA of no less than 4 million sq.m.. With the continued expansion of our business, the Group's targeted saleable GFA started in 2011 are approximately 1.01 million sq.m..

Sustainable growth in the long term

Based on the overall development needs, the Group will continue to identify suitable projects with good prospects. Meanwhile, it will continue to seize opportunities arising from the market consolidation to replenish its high-quality land reserves through acquisition and auction to promote its sustainable development.

The Company has experienced rapid growth in business. It was ranked one of "China's Top 100 Real Estate Developers" for fifth consecutive year from 2006-2010. And it has been named one of "China's Top 50 Real Estate Developers" for the first time this year, becoming the top real estate developer in Fujian Province. The "Research on China's Top 100 Real Estate Developers" was jointly conducted by the Enterprise Research Institute under the Development Research Centre of the State Council, the Institute of Real Estate Studies of the Tsinghua University and the China Index Academy. The ranking of Yuzhou Properties for 2011 was 47th, up 7 positions from the previous year. The improvement in its ranking reflects that the Group's corporate strengths and brand name are widely recognized in the market.

Looking ahead, Chairman Mr. Lam Lung On said, "As China's economy continues to grow, regional economies will become more balanced, and the level of urbanization is continuously increasing. The Group will continue to pursue our prudent development strategies in accordance with the government's development plan. We will strategically identify property projects with good potential for development and put our success business model into practice in the high-growth areas. With the management team is further strengthened and the appointment of new CEO, we will introduce our success business model into the areas with high economic growth. Moreover, we will further enhance our operating efficiency and internal control, providing customers with properties of higher performance-to-price ratio and maximizing shareholders' value."

About Yuzhou Properties

Yuzhou Properties Company Limited (1628.HK) is a leading Fujian-based property developer in China and one of the three largest property developers in Xiamen in terms of GFA contractually sold. It aims at becoming a leading property developer in China through the strategy of "focusing on the West Strait Economic Zone and aiming for contribution to China". Established in 1994, Yuzhou Properties specializes in the development of high quality residential, retail and commercial projects and has developed over 30 projects in Xiamen, Shanghai, Tianjin, Fuzhou and Hefei, respectively. Well-known for its outstanding product quality, diversified product portfolio, strong brand awareness and experienced management team, Yuzhou Properties was named one of "China's Top 100 Real Estate Developers" for fifth consecutive years and ranked one of "China's Top 50 Real Estate Developers" for the first time in 2011. Moreover, "Yuzhou" brand has been recognized as a "Renowned Brand in China" by the State Administration for Industry and Commerce and as a "Famous Brand" by the Fujian provincial government and the Xiamen municipal government.

SOURCE Yuzhou Properties Company Limited