Country Garden : · 2017-03-22 ANNUAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2016

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碧 桂 園 控 股 有 限 公 司

(Incorporated in the Cayman Islands with limited liability)

• For the year ended 31 December 2016, the Group together with its joint ventures and associates achieved contracted sales of approximately RMB308.84 billion with contracted sales GFA of approximately 37.47 million sq.m., representing a significant year-on-year increase of 120.3% and 74.0% respectively.

• Cash collected from sales of properties totalled approximately RMB284.08 billion, representing a significant year-on-year increase of 142.8% and as a result the Group generated positive net operating cash flow this year.

• As at 31 December 2016, the Group's net gearing ratio was 48.7%, representing a decrease of

  11.3 percentage points compared with that of 2015.

• For the year of 2016, the Group's total revenue rose by about 35.2% year on year to approximately RMB153.09 billion. Revenue from the property development segment grew by 35.4% year on year to approximately RMB148.18 billion.

• The Group's gross profit increased by 41.0% year on year to approximately RMB32.24 billion.

• The profit attributable to the owners of the Company rose by 24.2% year on year to approximately RMB11.52 billion.

• The Group's core net profit1 rose by 22.3% year on year to RMB11.98 billion.

• The Group's basic earnings per share rose by 22.6% year on year to RMB52.17 cents.

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• The Board recommended payment of a final dividend of RMB10.20 cents per share in the form of cash, up by 57.7% year on year. The total annual dividend reached RMB17.12 cents per share. The total annual dividend will equal to 31% of the core net profit.

1 It represents profit attributable to owners of the Company excluding the post-tax gains arising from changes in fair value of and transfer to investment properties, net exchange gains/losses on financing activities, loss on early redemption of senior notes and changes in fair value of derivative financial instruments.

The board (the "Board") of directors (the "Director(s)") of Country Garden Holdings Company Limited (the "Company") is pleased to announce the audited consolidated results of the Company and its subsidiaries (collectively, the "Group" or "Country Garden") for the year ended 31 December 2016.

In 2016, China's property market was booming in contrast with oversea observers' reservations about the market. By the same token, Country Garden was making bold strides while most of its peers were trying cautiously to follow suit. As of 31 December 2016, the Group together with its joint ventures and associates' contracted sales rose by 120.3% year on year to approximately RMB308.84 billion; the Group's total revenue increased by 35.2% year on year to approximately RMB153.09 billion, gross profit grew by 41.0% year on year to approximately RMB32.24 billion, and core net profit increased by 22.3% year on year to approximately RMB11.98 billion. The great achievements were not only brought by China's economic development but also reflected the determination of China's enterprises to thrive. In addition, China's urbanization is far from over. A breakdown of the Group's domestic contracted sales by its target markets showed that 59% of the Group's sales were derived from the projects which targeted the first and second-tier cities in China, and 41% from those that targeted the third and fourth-tier cities. The adaptation to different markets and a more balanced land bank are the key to counteracting market fluctuations and enabling the Group to grow consistently. Country Garden will strive for further improvement and generate more value for the shareholders.

A surge in contracted sales to over RMB300 billion for 2016 is an achievement that takes not only conviction and courage but also restraint and decisiveness. The robust capital structure helps the Group to cope with the ups and downs of an economic cycle in the future: it accelerates the Group's development amid the market's uptrend and buffers the impact of a downturn. As at 31 December 2016, the net gearing ratio of the Group decreased by 11.3 percentage points year on year to 48.7%. The weighted average borrowing cost was 5.66%, which was down by 54 basis points year on year. Cash and bank deposits (including restricted cash) amounted to approximately RMB96.49 billion, and undrawn bank facilities were approximately RMB162.84 billion. The Group has been recognised by credit rating agencies and major financial institutions for its sound financial position which was backed by sufficient working capital. The Group's capability to withstand risks has been further enhanced.

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In addition, Country Garden has to view things at a high altitude and be visionary. The Group's steady oversea business development has gradually yielded good results. The Group has formed a joint venture with the government of Johor State in Malaysia to develop Forest City, a project of long-term and strategic significance, for a term of more than 20 years. Forest City has a site area of approximately 20 square kilometers for development and it has been well-received in the international markets. Meanwhile, as the construction of Forest City is on a roll-over basis according to the progress in its sales and market response, the project has achieved positive net cash flow, and its own capital is sufficient to support its own development. The profit margin of the project is predicted to be much higher than those of the Group's other projects which are being undertaken in the same period in China, and will contribute to the Group's profit with the revenues from sales of properties of the project are recognised in the future. Country Garden has proved itself a leading property developer with great competitiveness in various markets all over the world. In the future, the Group will keep developing oversea markets at a steady pace.

The more competitive the Group gets, the more responsibilities the Group has. Country Garden upholds the corporate values of "being good to people and good to society", and strives for improvement in operating the community and benefiting home owners. As at 31 December 2016, the Group undertook contracts to manage properties with total gross floor area ("GFA") of approximately 210 million sq.m. for approximately 1 million home owners in 223 cities across

27 provinces in China. The Group's property management and community-related businesses generated revenue of approximately RMB1,959 million, up by 33.3% year on year. The business segment also recorded an operating profit of approximately RMB406 million, up by 59.7% year on year. In the future, the Group will leverage on the capital market to develop this business segment so as to enrich its sources of income and enhance its business value.

Country Garden can't enhance its competitiveness without the best team. As a business operator, the Group always focuses on the "people". Country Garden attracted top talents with excellent incentives. The Group has adopted a partnership scheme since October 2014. As at 31 December 2016, the partnership scheme was introduced to a total of 583 property projects, which recorded aggregate contracted sales of approximately RMB261.2 billion. The average net profit margin of the contracted sales at such projects under the partnership scheme is estimated to be about 12%, and positive net cash flow is estimated to be achieved at such projects in 8.4 months. The mechanism has ensured that the professional managers and shareholders can "share the gains together and work together as a cohesive group". As a result, Country Garden has recruited a large number of top talents in the industry, including 403 holders of PhDs, and these talents would gradually become the core managers of the Group. In the future, the Group will continue to build a team of professional and excellent property managers, and is gearing up for greater accomplishments.

The Group has a vision of itself thriving on tests and applying its practical experience to its business. Founded in 1992 and listed on The Stock Exchange of Hong Kong Limited (the "Stock Exchange") in 2007, Country Garden has been growing stronger and aspiring to higher goals in face of market regulation and competition. This is the key to the Group's survival and the driving force behind its endeavours to scale new heights. Since Country Garden can't predict the future or the capital market's preferences, the right way to cope with the situation is to excel in what the Group does. Country Garden needs to be perceptive to the changes and be receptive to opinions and new ideas from the market. Country Garden will also remain committed to providing state-of-the- art products while staying aware of the market and costs of operations. All these can help making us invincible.

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Country Garden aspires to a higher goal, and will pursue it through thick and thin. Country Garden will not stop taking on challenges, and will continue to build reasonably-priced, high-quality housing for people all over the world. Country Garden hopes to create a better society with our existence.