Steady Business Performance Growth and Another New High Contracted Sales Volume
(August 20, 2015, Hong Kong) - Yuexiu Property Company Limited (stock code: 00123) and its affiliated company (collectively referred to as "Yuexiu Property" or "the Group") proudly announced its interim results as of June 30, 2015 as follows:
Sustainable Growth in Business Performance and Contracted Sales Volume
In the first half year of 2015, the Group achieved the operating income of RMB 6.625 billion, with an increase of 4.7% on year-year basis. It achieved the gross operating income (including income on sales of investment properties) of RMB 6.841 billion, with an increase of 7.9% on year-on-year basis. It achieved the profit attributable to equity holders of RMB 1.198 billion, and the core net profit (excluding the estimated appreciation of investment properties and the exchange gain or loss) of RMB 730 million.
In the first half year of 2015, the Group accurately grasped the market trends, creating a new high of the corresponding period historically in the contracted sales volume by virtue of the diversified and innovative sales means. In the first half year, the Group achieved the accumulative contracted sales (including the sales of the projects of joint venture) volume of RMB 11.487 billion, the accumulative contracted sales area of 1.0896 million square meters, with an increase of 8.1% and 30.4% respectively on year-on-year basis, completing 46% of the full-year sales target of RMB 24.8 billion.
New Breakthrough in the Cooperation Mode and Mechanism Innovation
Along with the intensifying competition of Chinese real estate market, win-win cooperation has become an effective means for the advanced real estate enterprises to strengthen cooperation and to create a win-win situation. In July 2015, the Group cooperated with the subsidiaries of Greenland Group and Ping An Group, two of the top 500 enterprises in the world for the first time, to develop two plots of Guangzhou Papermaking Go., Ltd in Haizhu respectively, which was another breakthrough in the innovation of cooperation mode and the integration of development resources, helpful for the Group to steadily and rapidly expand the scale and to improve the operating quality.
In the new age of transformation and development of real estate industry, to stimulate the initiative and working enthusiasm of the employees by promoting the institutional mechanism reform is an important way for enterprises to adapt to the new normal economy and to strengthen the endogenous impetus. In the first half year of 2015, the Group established the employee incentive plan at the project level for the first time in the Foshan Chancheng Foping Road Project. The project management team members and the core employees participated in the equity investment in the project company. Such plan is now going smoothly, and can effectively motivate the project management to increase the rate of return on the project.
Mr. Zhang Zhaoxing, Chairman of the Group, said, "Since this year, the real estate market has been recovering to some extent, but de-stocking is still the main task for the majority of real estate enterprise at the present stage. In the long run, due to the continuous urbanization, Chinese real estate industry will enter the long bull run in the future. Therefore, we are still full of confidence in the development of Chinese real estate industry. In the future, the fierce competition of the real estate industry will also become a new normal state, the gross profit rate of the industry will remain under pressure, and the differentiation between different regions and cities will also be intensified."
Mr. Zhang Zhaoxing concluded, "in the current macro economy and market situation, in the second half year, Yuexiu Property will keep the sense of urgency for development, with 'management upgrading to increase internal force and reform innovation to enhance vitality' as the work theme, on one hand, to ensure completion of the main operation target, to continue expanding new financing channels, to carry out the interest rate and exchange rate risk management, and to maintain the investment rating, and on the other hand, to strengthen the endogenous impetus for enterprise development. The Group will vigorously promote the institutional mechanism innovation and accelerate the employee incentive plan to realize the implementation of long-acting incentive mechanism; continue expanding and innovating the new project cooperation mode to promote the continuous optimization of industry and finance integration mode; continue improving the operating quality and further improve the investment decision and cost control and other core capacities, thus further increasing the return on equity, pushing the enterprise development to a new step, and creating higher return for the shareholders!"
