Beijing Capital Land :  Capital Land Announces 1H2016 Interim Results

(Hong Kong - August 22, 2016) Beijing Capital Land Ltd. ('BCL' or the 'Company', together with its subsidiaries (collectively the 'Group'); stock code: 2868.HK), one of the leading integrated property developers in China, announced the Group's interim results for the six months ended 30 June 2016.

During the first half of 2016, the total contracted sales area of the Group's projects totaled approximately 908,000 sq.m. Total contracted sales were RMB16.29 billion, up 34.4% from the same period last year. Average selling price was RMB17,932/sq.m., up 77.5% from the same period last year. The Group continued to strategically focus on core cities and effectively generated 94% of its total contracted sales from five core cities and the Australian market, representing a year-on-year increase of 9 percentage points. In particular, Beijing, Tianjin and Shanghai were the major sales drivers as their aggregate share of the total contracted sales reached 69%, representing a year-on-year increase of 11 percentage points. The Australian market, an important contributor of the Group's sales performance, accounted for 18% of the total contracted sales. The Group's newest market, Brisbane, which it just entered during the first half of 2016, contributed contracted sales of RMB1.07 billion, or 6.6% of the total contracted sales.

Mr. Jun Tang, the President of BCL, said, 'In the first half of 2016, the Group relentlessly strove to achieve 'quality growth'. The Group captured opportunities presented by the favorable market conditions, and launched projects at a balanced pace. In particular, the Group worked to ensure that key projects in Beijing, Tianjin and overseas market were launched successfully and in a timely fashion, and that the projects recorded high sell-through rates. At the same time, the Group stringently executed its sales strategy and made sure that a balance was maintained between transaction volumes and transaction prices. All of these efforts resulted in significant growth in both contracted sales and average selling price. As for land investment, the Group continued to focus on core cities and acquired a number of quality projects in Beijing, Shanghai and Tianjin, while further expanding into overseas markets by entering Brisbane, the third largest city in Australia. The existing land bank is considered to be sufficient for the Group's development over the coming 3-4 years.'

During the first half of 2016, the Group's revenue totaled RMB4,907,908,000, down 10% from the same period last year. Operating profit fell 6% year-on-year to RMB1,300,249,000. Profit attributable to equity holders of the Company increased 3% year-on-year to RMB519,616,000. Earnings per share were RMB17 cents, representing a decrease of 32% compared with the first half of 2015. The Board resolved not to declare an interim dividend.

In the first half of 2016, the Group placed substantial emphasis on launching its 'Tian Yue' series, a high-end product line. The Tian Yue series was a strategic move to take advantage of the rare resources that the Group owns in core cities. In particular, the Group launched 'Tian Yue Mansion', the apartment portion of the 'Capital Center' project in the Lize Financial District of Beijing. The project was well-received and recorded RMB1.2 billion in contracted sales on the day it was launched. The apartments that were put on the market were almost sold out on the launch day. Other projects within 'Tian Yue' series that will be launched in the second half include, 'Capital of Western Village' and 'Capital of Vision'.

As for land Investment, as of June 2016, the Group had added nine new investment projects with a total GFA of 1.21 million sq.m., or above ground GFA of 1.01 million sq.m., for an aggregate amount of RMB13.3 billion. Beijing, Shanghai and Tianjin accounted for 25%, 45% and 18% of the aggregate land investment, respectively. In addition, the Company entered into an agreement with its controlling shareholder, Beijing Capital Group, for the acquisition of the Capital Building and the Shijingshan Xihuang Village redevelopment project in Beijing, along with two residential development projects in Chongqing and Shenyang from Beijing Capital Group. As the Company is positioned as Beijing Capital Group's sole platform in the market-oriented property development segment, these transactions demonstrate Beijing Capital Group's firm commitment to support the Company, and these quality projects in core cities have strategically replenished the Company's prime land bank in core cities.

The Group achieved significant breakthroughs in commercial property development. During the first half of 2016, the Company continued to see robust performance in the outlets business. The four outlet projects had total sales of RMB1.25 billion, up 20% from the same period last year. The Group signed an agreement to inject three existing outlet projects located in Fangshan, Huzhou and Kunshan into Capital Juda, the outlet operating platform of the Group (stock code: 1329.HK). In addition, the Group also added three new outlet projects in Xi'an, Zhengzhou and Jinan during the period. As at the end of June 2016, Capital Juda was the largest operator of outlet projects in China with 11 total projects nationwide, and the Group plans to grow and propel Capital Juda to become 'The top Integrated Outlet Operator in China'. After injecting these mature and well-operated properties, the Group is set to enlarge the scale of its current outlets business and improve its operating capabilities, which should help us generate more attractive returns for shareholders.

Looking ahead to the second half of 2016, the macro economy is expected to remain stable, despite certain downward pressures. For the property sector, as future policies are likely to be stable, the industry will keep growing at a steady pace. The Group will continue striving for 'Quality Growth' by striking a balance between transaction prices and volumes, with the aim of achieving a full-year target of RMB38 billion in contracted sales. The Group endeavors to manage its land bank prudently and acquire more high-grade land plots through various channels outside of public auctions. Capital Juda will serve as an important platform that can help the Group further expand its presence nationwide. The Group will expand its use of the bond market as liquidity is currently abundant and control debt levels to optimize debt costs, and will proactively accelerate the process of its A-share listing application. Furthermore, the Group will look to acquire new business resources in an effort to upgrade and transform its overall business.