Kaisa Group named among Most Valuable PRC Listed Blue-chip Real Estate Companies 2010

At the Most Valuable PRC Listed Blue-chip Real Estate Companies 2010 awarding giving ceremony held in Beijing on 8 November 2010, Kaisa Group earned the title of Most Valuable PRC Listed Blue-chip Real Estate Companies on the back of its business strengths and enormous potential for development. As Kaisa Group continues to grow in strength, its brand influence is reaching out to new frontiers.

Since its IPO in December 2009, Kaisa Group has been gearing up efforts in its nationwide expansion strategy. Currently, a strategic layout featuring focused developments in 5 major regions as well as steady outreach to economically developed second- and third-tier cities has been formed. The 5 major economic regions are: Pearl River Delta Region, Yangtze Delta Region, Bohai Rim Region, Chengdu-Chongqing Region and Central China, covering 13 cities that include Shenzhen, Guangzhou, Dongguan, Huizhou, Zhuhai, Foshan, Shanghai, Jiangyin, Taicang, Chengdu, Changsha, Shenyang and Beijing, where we currently own 39 property projects that form a real estate business chain and brand name that offers strong core competitiveness.

In addition to its strategic layout, Kaisa Group is also actively expanding its land reserve to sustain its land cost advantage and further reinforce its leadership in the Pearl River Delta Region. Meanwhile, we will also increase our investment in the Yangtze Delta Region as part of its strategy to expand in other regions of the nation.

On 13 October 2010, Kaisa Group acquired a land parcel in Beijiao, Shunde, Foshan, Guangzhou for approximately RMB230 million in a land auction, which further boosted the Group s land reserve. On 20 October, the Group secured a second land parcel in Shunde through acquisition, this time in Xingtan Town. We also acquired a land parcel in Taicang, Jiangsu through land tender, auction and sale listing to establish our presence in a third city in the Yangtze Delta Region after Shanghai and Jiangyin. Kaisa Group s latest land acquisitions indicate that the Group is stepping up its move for land reserves to ensure adequate future land supply for sustainable development.

In the meantime, Kaisa Group assumes a flexible and prudent strategy that befits its long-term business development. Reasonable adjustments are being made to future development plans in response to market changes, while product mix and market strategies are being revised according to prevailing market conditions and product demands. More extensive and diversified financing is being sought overseas, leveraging our know-how of the Hong Kong market. Exposure to investment properties will be enhanced and our existing business operations will be reorganized to form a specialized and diversified branded business portfolio. Active efforts will be made to develop new commercial projects in tier-one domestic cities as part of our strategic of diversified development, in a bid to broaden its revenue base with the provision of stable and reliable revenue.

From 2007 to 2009, the Group s total assets increased from [RMB]10.46 billion to [RMB]17.98 billion, representing growth of over 70%. Sales revenue grew by more than 126%. During the 10 months ended 31 October 2010, the Group reported contract sales revenue of approximately RMB8 billion, a year-on-year growth of 87%. Given the additional impetus from the capital market following its IPO, Kaisa Group is expected to sustain its drive for strong growth.