Agile : Interim Results Announcement 2016

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(23 August 2016 Hong Kong) Agile Group Holdings Limited ("Agile" or the "Group"; Stock Code: 3383) is pleased to announce its interim results for the six months ended 30 June 2016 ("Review Period").

For the Review Period, the revenue and gross profit of the Group were RMB22,558 million and RMB4,515 million respectively. Profit for the period was RMB1,001 million. Overall gross profit margin and net profit margin were 20.0% and 4.4% respectively. The board of directors of the Company has resolved not to declare any interim dividend in respect of the six months ended 30 June 2016.

Commenting on the Group's 2016 interim results, Mr. Chen Zhuo Lin, Chairman and President of the Group, said, "In the first half of 2016, the stable economic growth of China, coupled with a relatively easy keynote of policies over the property market, continued to release the demand of first time home buyers, contributing to a quick pick-up in the trading volume in the market. During the Review Period, the Group continued to enhance its product competitiveness while capitalising on market opportunities by adjusting its marketing strategy flexibly and launching projects in a timely manner at reasonable prices. The Group's accumulated pre-sales was RMB28,450 million, representing an increase of 36.7% when compared with the corresponding period of last year. The accumulated GFA pre-sold was 2.864 million sq.m., representing an increase of 27.0% when compared with the corresponding period of last year. The corresponding average selling price was RMB9,932 per sq.m., representing an increase of 7.6% when compared with the corresponding period of last year.

During the Review Period, the Group had 69 projects available for sale, and remained one of the leaders in property markets including Zhongshan, Guangzhou, Hainan, Nanjing and Wuxi, recording outstanding results. Furthermore, with the Group's intensive efforts to clear up inventory, the sell-through rate was in line with expectation, and the completed GFA held for sale had also decreased."

In respect of other businesses, the Group's revenue from property management increased by 23.6% during the Review Period when compared with the corresponding period of last year. Revenue from hotel operations also recorded an increase of 7.3% when compared with the corresponding period of last year. Revenue from property investment business increased by 156.7% when compared with the corresponding period of last year, of which, Guangzhou Agile Center recorded an occupancy rate of 82%.

As the Group further developed and expanded its scope of business, the Company's English

name has changed from "Agile Property Holdings Limited" to "Agile Group Holdings Limited",

and the dual foreign name in Chinese has changed from "

to "

during the period to reflect the future strategy of the Group. During the Review Period, the Group made intensive efforts to expand its existing business and explore other business opportunities, laying a solid foundation for its long-term development.

In respect of property development business, the Group adopted an active land acquisition strategy and increased its land bank by acquiring a total planned GFA of 664,418 sq.m. in cities including Beijing, Zhengzhou, Suzhou and Zhongshan. As at 30 June 2016, the Group had a land bank with a total planned GFA of 33.59 million sq.m. in 42 cities and districts, with average land cost being RMB1,176 per sq.m., which offers a certain competitive edge to the Group's property development business.

In respect of property management, the Group continued to expand the "A-Living" business, improve the service of "A-Steward" internet platform and cooperate with partners in various areas, with a view to providing owners and residents with more diversified services. In respect of hotel operations, the Group continued to optimise its services, expand marketing channels, broaden sources of income and reduce unnecessary expenditure.

During the Review Period, the Group made efforts to accelerate its sales turnover and achieved favourable results. Meanwhile, the Group optimised its debt structure successfully through diversified the onshore and offshore financing channels. On the onshore front, the Group successfully issued RMB1,600 million five-year corporate bonds with a coupon rate of 4.7%, RMB1,200 million four-year non-public corporate bonds with a coupon rate of 5.8% and obtained RMB2,500 million fifteen-year and RMB2,300 million fifteen-year loans secured by investment properties. On the offshore front, the Group obtained a syndicated loan of HK$6,707 million and a bank loan of HK$780 million, and redeemed in full US$650 million 8.875% senior notes due 2017. All these have reduced the Group's financing costs and gearing ratio successfully. As at 30 June 2016, the net debt to total equity ratio of the Group was 51.0%, representing a decrease of 13.0 percentage points when compared with 31 December 2015.

In order to mitigate the foreign exchange risk related to debts denominated in foreign currencies, the Group had entered into US$1,200 million capped forward contracts to mitigate its foreign currency exposure in United States dollars denominated indebtedness during the Review Period, and recorded a fair value gain on derivative financial instruments of RMB83 million due to the corresponding accounting gains from these contracts.

In addition, the Group further controlled its costs and expenses. As a percentage of revenue, the selling and marketing costs decreased to 4.6%, while administrative expenses decreased to 2.9%, representing a decrease of 1.2 percentage points and 1.3 percentage points respectively when compared with the corresponding period of last year.

Mr. Chen concluded, "Looking ahead, the overall economy of China is expected to maintain steady growth in the second half of 2016. The Group will adopt a strategy of diversified development and drive the steady growth of all its business segments, so as to create more profit centres.

In respect of property development, the Group will continue to offer new products in a number of its projects, a majority of which are products catering for end-users' demand from first time home buyers and upgraders. While maintaining reasonable profitability, the Group will continue its flexible sales strategies to improve its sell-through rate on an ongoing basis, in order to accelerate its asset turnover and enhance the cash flows. Meanwhile, the Group will continue its strict construction management to ensure effective management of resources for sale, and will further optimise its product design and improve quality while eliminating underperforming contractors. Furthermore, the Group will control costs effectively and shorten the development cycle through product standardisation. In order to replenish its land bank, the Group will implement an active but prudent land acquisition strategy, with priority given to opportunities in cities where existing projects with a competitive edge are located, as well as first and second tier cities with substantial growth potential.

In respect of hotel operations, the Group will continue to enhance the ancillary facilities and services of its hotels and improve its business model, with a view to maintaining its position in the competitive market. In respect of property management, with "A-Steward" internet platform launched nationwide, the service of "A-Living" will be further enhanced, and the coverage of service will be expanded continuously. In respect of environmental protection business, the Group will be committed to optimising the technologies and management of existing projects and further expand the business in the second half of the year. In respect of the education segment, the Group will continue to enhance the quality of education, recruit talents and drive the construction of new schools, with an aim to further expand the service coverage.

The Group will continue to enhance its overall management and execution capability, with a view to laying a solid foundation for healthy development in the long term, by further optimising the structure and streamlining the decision-making process, with ongoing control on administrative expenses and enhancement of efficiency."

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Caption:

Mr. Chen Zhuo Lin, Chairman and President of the Group (middle), and the management participated in the Interim Results Announcement 2016

Agile (stock code: 3383) is principally engaged in the development of large-scale comprehensive property projects, with extensive presence in the businesses of hotel operations, property investment, property management, environmental protection and education services. As a renowned brand in China, the Group currently owns a diversified portfolio in over 40 cities and districts.

The shares of Agile have been listed on the Main Board of Hong Kong Stock Exchange since 2005 and are constituent stocks of Morgan Stanley Capital International Emerging Markets Index, Hang Seng Composite Index and Hang Seng Global Composite Index.

For more information, please contact:

Callis Lau / James Wong / Maggie Chui

Tel: (852) 2136 6952 / 3920 7642 / 2136 8059

Fax: (852) 3170 6606

Email: agile@iprogilvy.com

Capital Markets & Corporate Affairs Department Email: ir@agile.com.cn