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

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(incorporated in Hong Kong with limited liability)

• Contracted Sales Hit Another New High. In the first half of 2016, the value of aggregate contracted sales (including contracted sales by joint venture projects) was approximately RMB16.03 billion, representing a year-on-year increase of 39.5% and 62.1% of the full year sales target of RMB25.8 billion. By the end of June 2016, unrecognized sales value was approximately RMB33.87 billion, representing an increase of 49.8% as compared to that at the beginning of the year.
• A decrease in revenue. In the first half of 2016, the revenue of approximately RMB5.08 billion was recorded, representing a year-on-year decrease of 23.3%, mainly due to a year-on-year decrease of 29.1% in the recognized sales value. Most of the Group's projects as scheduled will be delivered in the second half of the year.
• An increase in core net profit. In the first half of 2016, core net profit (profit attributable to equity holders excluding fair value gains on revaluation of investment properties and the related tax effect and net exchange loss recognized in the consolidated income statement) was approximately RMB0.86 billion, representing a year-on-year increase of 17.2%.
• Significant improvement in the operating cash flow. In the first half of 2016, net operating cash inflow of approximately RMB4.84 billion was achieved, compared to net outflow of approximately RMB0.17 billion during the same period of last year. As of 30 June 2016, cash and cash equivalents and charged bank deposits were approximately RMB17.59 billion in aggregate, representing an increase of 16.0% as compared to those at the beginning of the year.
  • Decline in the net gearing ratio. As of 30 June 2016, the net gearing ratio was 55.7%, significantly decreased from 73.1% at the beginning of the year. The average borrowing interest rate was down from 5.02% for the first half of 2015 to 4.94%.
• Foreign currency exchange exposure was effectively controlled. In the first half of 2016, the Group's foreign currency denominated loans decreased by approximately RMB12.52 billion. The pro rata amount corresponding to foreign currency denominated loans decreased significantly to 24% from 53% at the beginning of the year. So far, a match in essence between the remaining foreign currency denominated loans and the offshore assets has been achieved, thus foreign exchange exposure has been effectively managed and controlled.
• Progress achieved in refined management. The Group fully implemented the Activity Based Cost accounting and control system and also established four platforms, namely commercial operation division, products center, financial center and property management, strengthening the core operating capacity in professional areas. The Group fully promoted core staff incentive scheme for project developments and has been contemplating the staff share incentive scheme.
• Return to shareholders. The Board proposed to declare an interim dividend for 2016 of HK$0.033 per share, which is equivalent to approximately RMB0.028 per share, representing 40% of profit per share attributable to equity holders excluding fair value gains on revaluation of investment properties and the related tax effect and net exchange loss recognized in the consolidated income statement.

• Revenue

RMB5.08 billion (-23.3%)

• Core net profit*

RMB0.86 billion (+17.2%)

• Contracted sales value

RMB16.03 billion (+39.5%)

• Unrecognized sales value

RMB33.87 billion (+49.8%)

• Total assets

RMB113.95 billion (+1.7%)



Cash and cash equivalent and charged

bank deposits

RMB17.59 billion (+16.0%)

• Net gearing ratio

55.7% (-17.4 percentage points)

* Core net profit represents profit attributable to equity holders excluding fair value gains on revaluation of investment properties and the related tax effect and net foreign exchange gain/loss.

The board of directors ("Directors" or "Board") of Yuexiu Property Company Limited ("Company") is pleased to announce the unaudited condensed consolidated results of the Company and its subsidiaries (the "Group") prepared under Hong Kong Accounting Standard 34 "Interim Financial Reporting" for the six months ended 30 June 2016, as follows:

Attributable to

Earnings per share for profit attributable to equity holders of the Company (expressed in RMB per share)

- Basic and diluted

Details of dividends payable to equity holders of the Company are set out in Note 10.