Yuexiu Property : Announcement of 2016 Annual Results (in PDF)

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(Incorporated in Hong Kong with limited liability)

• The revenue for the year was approximately RMB20.87 billion, representing a year-on-year decrease of 5.6%.

• The gross profit was approximately RMB4.34 billion, and gross profit margin was approximately 20.8%.

• Profit attributable to equity holders was approximately RMB1.54 billion, representing a year-on-year increase of 52.1%; core net profit* was approximately RMB1.72 billion, representing a year-on-year increase of 38.6%.

• The value of the aggregate contracted sales (including contracted sales by joint venture projects) for the year amounted to approximately RMB30.25 billion, representing a year-on-year increase of 21.7%, and accounted for approximately 117.3% of the full year contracted sales target of RMB25.8 billion.

• As at the date of this announcement, the Group has newly acquired 11 land parcels mainly located in Guangzhou, Hangzhou, Wuhan and Qingdao, with total GFA of approximately 4.21 million sq.m.. In terms of the attributable interest to the Group, the total GFA was approximately 2.04 million sq.m. and the land premium was approximately RMB10.58 billion.

• The Group successfully acquired the Nansha Phase 10 Land, with a total GFA of approximately 0.94 million sq.m., from its parent company Guangzhou Yue Xiu Holdings Limited (廣州越秀集團有限公司) to further strengthen the Group's leading market position in Guangzhou.

• Net operating cash inflow of approximately RMB5.15 billion was achieved; the cash and cash equivalents and charged bank deposits at the end of the year were approximately RMB22.02 billion, representing an increase of 45.2% as compared to the beginning of the year.

• Guangzhou City Construction & Development Co. Ltd., a subsidiary of the Company, successfully issued corporate bonds of RMB8.0 billion in the PRC with a weighted average coupon rate of 2.9963%.

• The Group's average borrowing interest rate decreased from 4.95% for 2015 to 4.64% for 2016; the net gearing ratio** went down from 73.1% at the beginning of the year to 53.1%.

• The proportion of foreign currency denominated loans decreased significantly to 14.5% from 53.4% at the beginning of the year. A match in essence between remaining foreign currency denominated loans and the existing offshore assets has been achieved and thus the impact of foreign exchange exposure on consolidated income statement has been basically eliminated.

• The Board proposed to declare a final dividend for 2016 of HKD0.032 per share (equivalent to RMB0.028 per share); together with the interim dividend, dividends for the full year of 2016 was HKD0.065 (equivalent to RMB0.056 per share), representing a year-on-year increase of 35.4% in terms of HKD; total dividends for the full year of 2016 accounted for approximately 40% of the core net profit.

• The plan of co-investment by project management teams and win-win profit-sharing plan was fully promoted and optimized and the senior management share incentive scheme has been successfully implemented.

• Revenue RMB20.87 billion (-5.6%)

• Gross profit margin 20.8% (-0.3 percentage points)

• Profit attributable to equity holders RMB1.54 billion (+52.1%)

• Core net profit RMB1.72 billion (+38.6%)

• Contracted sales value RMB30.25 billion (+21.7%)

• Unrecognized sales value RMB27.62 billion (+22.2%)

• Total assets RMB125.36 billion (+11.9%)

• Cash and cash equivalents and

  charged bank deposits RMB22.02 billion (+45.2%)

• Net gearing ratio 53.1% (-20.0 percentage points)

* Core net profit represents profit attributable to equity holders excluding net fair value (losses)/gains on revaluation of investment properties and the related tax effect and net foreign exchange (loss)/gain recognized in the consolidated income statement.

** Net gearing ratio represents the borrowings net of cash and cash equivalents and charged bank deposits divided by equity.

The board of directors ("Directors" or "Board") of Yuexiu Property Company Limited ("Company") is pleased to announce the consolidated results of the Company and its subsidiaries (the "Group") prepared under Hong Kong Financial Reporting Standards for the year ended 31 December 2016, as follows:

Note RMB'000 RMB'000

Revenue 3 20,871,021 22,115,677

Cost of sales 4 (16,531,420)_(17,456,861)

Note RMB'000 RMB'000

Attributable to

Equity holders of the Company 1,540,154 1,012,889

Non-controlling interests 186,722 141,655 1,726,876 1,154,544

Earnings per share for profit attributable to equity holders of the Company

(expressed in RMB per share)