Yuexiu Property Announces 2010 Interim Results

The Group achieved considerable contracted sales during the Period. However, the amount of revenue recognized for the Period has declined due to the timing mismatch between the real estate development cycle and the relevant accounting rules. Recognised property sales amounted to only RMB383 million during the Period, whereas unrecognised contracted sales reached RMB9.

1 billion. On the other hand, as completion and delivery of the Group s projects will peak in the second half of 2010, revenue and profits for the entire year are expected to improve substantially as compared to the first half of 2010.

In the first half of 2010, confronted with increasingly tightened regulatory policies for the real estate sector, the Group managed to carry out intensive market research and analyses while accelerating project launches and sales. As a result, the Group achieved a new record in contracted sales. According to statistics from relevant institutions in the industry, sales of the Group ranked first in Guangzhou City and 19th nationwide in the first half of 2010.

During the Period, contracted sales in Gross Floor Area (GFA) reached 329,300 sq.m., representing a year-on-year increase of 58.9% and achieving 61.0 % of the target of 540,000 sq.m. for the whole year. Contracted sale value reached RMB 5,395 million, representing an increase of 156.4% year-on-year and achieving 68.

3% of the target of RMB 7,900 million (equivalent to approximately HK$9,000 million) for the whole year. The average selling price (ASP) reached RMB16,400 per sq.m, representing a year-on-year increase of 61.3%. The Group is confident in achieving the sales target for the whole year.

Mr. Lu Zhifeng, Chairman of the Group, said, During the Period, under the strategic goal of home base in Guangzhou and strategic expansion nationwide , Yuexiu Property actively sought and adopted diversified land procuring measures in various markets. With research and analysis on over 40 potential land acquisition projects in key cities in the Pearl River Delta region, the Bohai Rim District, the southwestern and central regions, the Group looked into potential market opportunities for expanding at reasonable costs.

In the first half of the year, the Group acquired through a 100% owned subsidiary the Qiguan Plot in Zhongshan with 137,000 sq.m. in GFA at a total cost of RMB305 million. The Group is optimistic about having more breakthroughs coming in the second half of the year.

Looking ahead, Mr. Lu said, Adjustments in the real estate market are expected to persist in the second half of the year. However, the Group remains optimistic about mid-to-long term prospects of the domestic real estate market. Therefore, the Group will continue to pursue its pre-set objectives and carry out various tasks, including increasing land bank and strengthening sustainable development; proactively coping with market changes and accelerating sales; and developing excellent core investment properties.

The Group s landmark project, Guangzhou International Finance Center (IFC), aims to soft open its hotel and shopping mall before the opening of the Asian Games in November. In future, the Group will capitalize on various opportunities so as to significantly increase operation profitability, thereby enhancing returns for shareholders.