Total capital liability ratio 41.6% Yuexiu Property outlines five-year business adjustment plan

March 21, Yuexiu Properties announced the full-year results of 2010. According to the announcement, in 2010, the Group realized operating revenue (including sale of investment properties) of about RMB6.979 billion, increased by 42.2% year-on-year. The profit attributable to shareholders was RMB919 million, up by 42.2%. Basic earnings per share was RMB0.1228 Yuan, increasing by 35.5% year-on-year.

Sales Target Achieved

In 2010, the contracted sales area of Yuexiu Properties was 543,000 square meters, up by 3.1% year-on-year. The amount of contract sales reached RMB8.855 billion, up by 45.2%, completing 112% of the annual target of RMB7.9 billion yuan. The average contracted sales price reached RMB16,300 per square meter, rising by 40.5% year-on-year.

The announcement pointed out that the area which had been sold in advance but not yet able to be recorded in the income statement was about 536,300 square meters, with an amount of approximately RMB8.403 billion and an average price of around RMB15,700 per square meter.

From the beginning of 2010 to now, Yuexiu has added 3.46 million square meters of land reserve, including the Linghai project in Shenyang with a floor area of 344,000 square meters which was signed at the end of 2010 and completed acquisition in January 2011. The total land reserve broke through 10 million square meters for the first time, basically establishing a national layout centered on the Pearl River Delta, focusing on the Yangtze River Delta, Bohai Rim, and central region.

Yuexiu Properties pointed out that its layout cities have increased from five in 2009 to the current nine: there are five cities in the Pearl River Delta, namely Guangzhou, Zhongshan, Jiangmen, Foshan and Hong Kong; two in the Bohai Rim area, namely Shenyang and Yantai; one each in the Yangtze River Delta and central region, namely Hangzhou and Wuhan.

By the end of 2010, the investment properties owned by Yuexiu Properties totaled about 920,000 square meters. Among them, the shop area accounted for about 34%, office area accounted for about 35%, parking lot area accounted for about 31%; rental income was approximately RMB289 million, increasing by about 1% year-on-year; total value reached RMB7.6 billion.

In terms of funds, as of the end of last year, the total capital debt ratio of Yuexiu Properties was 41.6%, the same as the previous year; working capital was about RMB18.163 billion, cash and pledged bank deposits were about RMB7.473 billion; committed undrawn bank credit lines were approximately RMB3.1 billion.