22nd April, 2014

Pacific Alliance China Land Limited

Pacific Alliance China Land Limited (AIM: PACL) announces that as at the close of business on 31 March 2014, its unaudited net asset value per share was US$2.2918.
The NAV decrease of 5.35% this month was largely attributed to Project Auspice whose valuation is derived from a mark to comps model of its listed peers which experienced a severe drop in their P/E multiples recently, coupled with a lower than forecast net profit for the company. It's worthwhile to note that Auspice still achieved double digit revenue and profit growth in 2013.
However, as the broader stock market focuses on residential, it does not recognize a company with a majority of its revenue coming from its more stable commercial property activities. We continue to believe that Auspice is one of the best property companies in China as demonstrated by revenue and profit growth averaging 64% and 44% respectively per year over the last five years.

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