Kaisa Group announces interim results for 2010

Contract sales reaching record-high of RMB3,430 million

Profit from core-business rose 42% to RMB247 million

Financial Highlights

(23 August 2010 Hong Kong) Shenzhen-based PRC real estate conglomerate Kaisa Group Holdings Ltd. ( Kaisa or the Group , stock code: 1638) today announces its interim results for the six months ended 30 June 2010.

Gross profit for the period grew 32.2% to RMB793 million while gross profit margin improved from 24.3% to 37.4%, reflecting the benefits of lower cost of property sales. Excluding revaluation of fair values on investmentproperties and financial derivatives and the corresponding deferred taxes, the Group s net profit for the period increasedby 42% year-on-year to RMB247 million. Revenue for the period decreased by 14.2% to RMB2,123 million mainly due tothe sales of the inventory of completed properties and delivery of these units in the sameperiod last year. Profit attributable toequity holders amounted to RMB247 million, a decrease of 32.9% against to the corresponding period last year.Basic earnings per share was RMB5.0 cents.

Despite the new series of measures introduced by the PRC Central Government during the first six months of 2010 to regulate the property market, the Group scontract sales hit a record high of RMB3,426 million, which was 41.2% higher compared to the same period last year, on the back ofsold GFA of approximately 321,960 sq. m.

Commenting on the interim results, Group Chairman Mr. Kwok Ying Shing pointed out that the Group had faced an extremely challenging domestic property market during the first six months of the year. The volume and prices of property transactions in several leading cities have been declining since the second quarter as a result of government initiatives to regulate the market, said Mr. Kwok. We managed to report record-high contract sales despite adverse conditions, however, thanks to swift adjustment of our sales strategy in response to market conditions, he noted.

During the reporting period, revenue from sales of properties decreased by 16.4%, toRMB2,010 million, which was primarily attributable to the decrease in total GFA delivered as well as average selling price per sq. m. The decline in average selling price was mainly due to the delivery of propertiesin Dongguan Dijingwan and Chengdu Lijing Harbour.

Positive growth in revenue from rental income and property management services was reported for the period. Rental income increased by 24%, to RMB52.90 million, which was primarilyattributable to the increase in leased retail space at higher rental rates. Revenue from property management service increased by 131% toRMB60.40 million.The increase was primarily attributable to the additional property management fees derivedfrom the provision of property management for the commercial properties and the residentialunits delivered.

The Group continued to engage in moderate expansion and further consolidated its leading position in Pearl River Delta Region by enlarging its land bank. As at 30 June 2010, the Group had land reserves of approximately 12.50 million square meters in aggregate, including 8.50 million square meters in the Greater Shenzhen region (comprising Shenzhen, Dongguan and Huizhou), which would assure ample land supply for business development in the next 5 years.

In April 2010, the Company issued 5-year senior notes with nominal value of US$350million to ensure the availability of sufficient funds for financing existing and newproperty projects and for general corporate use.

The Group acquired the Baoji Project in Longgang District, Shenzhen during the first six months of 2010, strengthening its emphasis on old district revamping projects. The Baoji Project occupies a site of approximately 322,000 square meters with an estimated GFA of approximately 1 million square meters. All requisite government approvals are expected to be in place by the end of 2010.

According to CREIS figures in respect of the Shenzhen property market in the first half of 2010, the Group ranked first in terms of GFA and number of units sold, further confirming its leadership in Shenzhen where the Group was founded.

Looking to the future, Mr. Kwok is optimistic that the fixed demand for housing will remain strong as urbanization gains pace in China in tandem with the nation s continued economic growth. Our solid foundation in the Greater Shenzhen region will render strong support as we continue to focus on realizing the value of old city conversion projects and further optimized the quality of our offerings, he noted. We will continue to leverage our strong brand recognition and proven experience in old city conversion to maximize returns for shareholders, concluded Mr. Kwok.