For Immediately Release 27 August 2015
Yuzhou Properties Company Limited (01628.HK)
Announces 2015 Interim Results
* * * * * *
Continued "Balanced Quality Growth" with Core Profit Up 13.58%
1H 2015 Contracted Sales Achieved RMB5.74 Billion
Confident over Full Year Target

Financial Highlights

(27 August 2015, Hong Kong) Yuzhou Properties Company Limited ("Yuzhou Properties" or the "Company"; stock code: 01628.HK) is pleased to announce the unaudited condensed consolidated results of the Company and its subsidiaries (the "Group") for the six-month period ended 30 June 2015 (the "Period").

During the period, revenue of the Group was RMB3,501.77 million. Gross profit was RMB1,188.17 million. Gross profit margin was 33.93%, staying at a healthy level in the industry. Profit attributable to owners of the parent recorded an increase of 14.86% to RMB642.43 million. Basic earnings per share was RMB18.16 cents, up 12.24%. Net profit margin increased by 2.45 percentage points to 18.98%. Core profit attributable to owners of the parent rose 13.58% to RMB552.04 million. Core earnings per share was RMB15.61cent, up 11.02% and the core profit margin was 15.76%.

In the first half of 2015, driven by favorable policies including credit easing and cancellation on restriction of house buying in several cities, housing demand was released. The China real estate market picked up generally, especially in the tier 1 and 2 cities. Going with the favorable market conditions, the Group adopted flexible strategies for project development and marketing in the first half of the year, and launched a number of projects meeting rigid demand and upgrade demand, including Yuzhou Central Coast, and Yuzhou Riverside City Town in Xiamen, Yuzhou Skyline and Yuzhou Central Plaza in Hefei, and Yuzhou Oriental Venice in Fuzhou. The Group achieved satisfactory results with excellent performance of market share in Xiamen and Hefei. In terms of contracted saleable GFA, the Group's market share ranked number one in Xiamen and as one of top four in Hefei.

Contracted Sales Met Expectation

During the period, the Group's contracted sales totaled approximately RMB5,736.45 million, representing an increase of 8.1% period on period, completing 43% of Yuzhou Properties's full-year contracted sales target. The contracted sales area amounted to 637,081 sq.m., and the average selling price was RMB9,004 per sq.m. for the first six months of this year. In addition, the sales of properties subscribed for but not contracted totaled approximately RMB662.09 million. As the development in Hefei City comes into the harvest period, Hefei has becomes one of the core members of the Group's strategic layout. For the first six months of this year, contracted sales in Xiamen reached RMB2.24 billion, accounting for 39.0%; contracted GFA was 141,364 sq.m., and the average selling price was RMB15,816/sq.m.. For the first six months of this year, the contracted sales in Hefei totaled RMB2.044 billion, accounting for 35.6%. The contracted GFA was 287,445 sq.m., and the average selling price was RMB7,114/sq.m..

Investment Properties Income Increased Steadily
For the six-month period ended 30 June 2015, the income from investment properties of the Group was approximately RMB31.35 million, representing a growth of approximately 10.84% as compared with the same period of 2014. The Group held a total of approximately 318,000 sq.m. of completed investment properties on lease. The occupancy rate of World Trade Center in Xiamen during the period was 93.32%. The occupancy rate of World Trade Plaza in Xiamen during the period was 96.34%. The occupancy rate of Shanghai Yuzhou Plaza was 67.64%. The occupancy rate of Xiamen Yuzhou Plaza was 44.21%. Both Shanghai and Xiamen Yuzhou Plaza commenced operation in December 2014.

Property Management Income Grew Satisfactorily with Value-Added Service provided
The Group continued to improve its service quality and maintained a high level of customer satisfaction through regular check on projects and trainings for customer service staff. To provide high value-added service to the Company's customers in order to match with the market trend, and as a part of the Company's efforts to create smart communities, Yuzhou Properties launched "Community O2O Service Platform"（社區O2O服務平台）on WeChat in the first half of 2015, which provide tailor-made service for home owners of the Company's communities, marking the official adoption by Yuzhou of online property management operating model. During the period, the property management companies of the Group recorded a property management fee income of RMB42.07 million, up 56.43% as compared with the corresponding period of 2014. With an increase in the area of delivered properties, the property management companies managed an aggregate GFA of approximately 4.27 million sq.m. in China as of 30 June 2015.

Sufficient Land Reserves
The Group adhered consistently to its strategic guideline of "Based in West Strait and Expand Nationwide Coverage in China""(立足海西，建樹中國) and focused on replenishing land reserve in West Strait Economic Zone, Yangtze River Delta, Bohai Rim region. On the principle of "Establishing strong foundation in every city entered", the Group selected strategic locations with high potential for project development. As of 30 June 2015, the aggregate salable GFA of land reserves of the Group was 8.81 million sq.m., with a total of 47 projects located eleven cities in West Strait Economic Zone, Yangtze River Delta, Bohai Rim region and Hong Kong; the average land cost was approximately RMB2,471 per sq.m.. The Group believes that its land reserves currently held and managed are sufficient for its development over the next four to five years.

In January 2015, the Group acquired one new parcel of high quality residential and commercial land with an aggregate GFA of 305,160 sq.m in Xiamen Jimei Region. The average land cost of approximately RMB8,979 per sq.m.. This project is expected to commence presale next year and provide satisfactory returns to the Group.

Outlook and Development Strategies
In view of the future trend of the property industry and increased market concentration, the Group will continue to cultivate and root in the West Strait Economic Zone market, and take tier 1 and 2 core cities in the Yangtze River Delta Region and the Bohai Rim Region with great development potentials as regional centers, to form a synergetic development layout, and assure the prudent strategic expansion "from the core cities to the regions and the whole country" is viable.

Looking ahead, Mr. Lam Lung On, Chairman of Yuzhou Properties said: "We will prudently select projects with a good potential for return and which are in line with its development needs. It is envisaged that the West Strait Economic Zone, with Xiamen as its center, will remain the key region for our future development. For areas outside the West Strait Economic Zone that we have already had a foothold, we will also allocate resources appropriately to increase land reserve at reasonable prices. We will cultivate Xiamen, Hefei, Shanghai, Fuzhou and Nanjing with the goal to grow our business in these core cities, so that a regional strong scale can be formed while excessive expansion avoided."

Mr. Lam Lung On also said: "We will continue to balance the weight of income from property sales and investment property, focusing on property sales and selectively holding investment properties including mall, hotels and office building situated at prime locations in tier 1 and 2 cities. In response to the general development of the property sector and continuous adjustment of the market, Yuzhou Properties will transform itself from a simplex developer to an integration of developer, operator and service provider by leveraging on its resources, and by further developing its online community service platform, as well as seeking to explore new business growth drivers and make more breakthroughs in terms of community service or other aspects of property management in the Internet Age. We will also actively explore fundraising opportunities through innovative financing channels and collaborations, to reduce finance cost in different ways. In addition, we are prudently optimistic about the prospects of the property market in China. We have geared up for the sales campaign for all our projects in a bid to seize opportunities brought by market changes. With a number of projects are expected to be launched in the second half of 2015, we are confident of meeting the target for this year's contracted sales based on the current market conditions. "

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About Yuzhou Properties
Yuzhou Properties Company Limited (01628.HK) is a leading property developer in the West Strait Economic Zone and is one of the largest property developers in Xiamen, in terms of land reserve and market share. Yuzhou Properties strives to become a leading property developer in China with a well-defined expansion strategy as to enhance its dominant market position in the West Strait Economic Zone and to establish footprints in the Yangtze River Delta Region and Bohai Rim Region respectively.

Established in 1994, Yuzhou Properties specializes in the development of high quality residential, retail and commercial projects. As at 30 June 2015, the Company had around 47 projects under various stages of development in Xiamen, Fuzhou, Shanghai, Tianjin, Nanjing, Hefei, Quanzhou, Zhangzhou, Longyan, Bengbu and Hong Kong. Sites measuring a total GFA of 8.81 million sq. m. are under development or held for future development. Those located in Xiamen measure a total GFA of 2.22 million sq. m and in Hefei measure a total GFA of 2.54 million sq.m. Known for its outstanding product quality and diversified product portfolio, strong brand awareness and its experienced management team, Yuzhou Properties has been named "Top 100 China Real Estate Enterprises" for ten consecutive years; and Top 50 China Real Estate Enterprises from 2011 to 2015. "Yuzhou" brand has been recognized by the State Administration for Industry and Commerce as a "Renowned Brand in China" and a "Famous Brand" by the Fujian provincial government and the Xiamen municipal government.

For more information about Yuzhou Properties, please visit the company's website: http://www.xmyuzhou.com.cn

Please feel free to contact us if you have any enquires:
Yuzhou Properties Company Limited (HKEX: 01628)
Manager of Corporate Finance & Investor Relations/
Assistant Manager of Corporate Finance & Investor Relations
Sophie Zhang/ Minnie Li
Tel:(852) 2508 1718
Fax:(852) 2510 0265
Email: zhangsy3@xmyuzhou.com.cn/ minnie.li@xmyuzhou.com.cn
Yuzhou Properties Investor Relations QR Code:

Wonderful Sky Financial Group Holdings Limited (HKEX: 01260)
Alice Wong / Sylvia Deng
Tel: (852) 2851 1038
Fax: (852) 2598 1588
Email: alicewong@wsfg.hk/sylviadeng@wsfg.hk