Yuexiu Property Announces 2009 Annual Results

Contracted Sales Grow 98% to HK$6.93 Billion
Net Profit from Continuing Operations Increased by 73.6% to HK$725 Million

Hong Kong, 25 March 2010 Yuexiu Property Company Limited ( Yuexiu Property or the Company ) (HKEx Stock Code: 00123) announced the audited results of the Company and its subsidiaries (collectively the Group ) for the twelve months ended 31 December 2009 (the Year ). And analyst meeting and press conference hold at the JW Marriott Hotel Hong Kong in Pacific Place with more than 80 fund managers, analysts and reporters attending.

During the Year, revenue of the Group was approximately HK$5,300 million (2008: HK$3,159 million), representing an increase of 67.8% over 2008. Profit attributable to the shareholders from continuing operations amounted to HK$725 million, representing an increase of 73.6% over 2008. Basic earnings per share from continuing operations were HK10.17 cents, representing an increase of 73.6% over 2008.

Mr. Lu Zhifeng, Chairman of the Group, said, With the combined effects of a moderately relaxed monetary policy, government incentives to encourage purchases of commodity housing, and solid domestic demand, China s real estate market underwent rapid growth in 2009. The Group took full advantage of the opportunities arising from the revival of the domestic real estate industry, and reaped record-high contracted sales.

During the Year, contracted sales GFA amounted to 526,900 square metres, representing an increase of 77% over 2008 and representing 117% of the full-year target of 450,000 sq.m.. Contracted sales value amounted to HK$6.93 billion, an increase of 98% over 2008 and representing 139% of the full-year target of HK$5 billion.

Average contract sales price reached HK$13,100 per square metres, an increase of 12% over 2008. Excluding Cong Hua Glade Village and Southern Le Sand, both of which are located in the suburbs, the average transaction price for the Group s urban projects stood at HK$17,000 per sq.m., an increase of 41% over 2008.

During the Year, in line with the expansion plans of home base in Guangzhou and strategic expansion nationwide , the Group proactively expanded its land bank by winning bids on parcels of land located in Guangzhou, Jiangmen, Zhongshan and Yantai. As a result, total GFA acquired during the Year amounted to nearly 1.

38 million square metres. In particular, the sites in Guangzhou University City were acquired to form large combined tracts of land, which should help create strategic value and economies of scale. The acquisition of the Yantai site also marked a pivotal step in pursuing strategic expansion in the Bohai Rim Economic Zone.

At the end of 2009, the Group had a total of approximately 4,350,000 square metres as undeveloped land bank, comprising approximately 60% in residential properties, 9% in office properties, 15% in commercial properties and 16% in carpark and others.

Investment properties owned by Yuexiu Property amounted to approximately 990,000 square metres, while rental revenue from investment properties and property management fees amounted to approximately HK$692 million, representing an increase of 8.0% over 2008. During the Year, the Group s investment property portfolio appreciated in fair value by approximately HK$313 million to HK$8.

5 billion. Meanwhile, the Group has engaged Jones Lang LaSalle to provide property management services and CB Richard Ellis to launch global promotion for office leasing at the Guangzhou International Finance Centre (IFC). The Group also introduced top domestic and international brands, such as the Four Seasons Group and Guangzhou Friendship Store, to IFC.

During the Year, the Group spinned off its then subsidiary GZI Transport Limited ( GZT , HKEx : 1052) by means of distribution and sale of GZT shares. The exercise raised approximately HK$1.6 billion in cash for investment in real estate development. At the same time, the Company changed its name from Guangzhou Investment Company Limited to Yuexiu Property Company Limited , so as to reflect the Group s focus on its principal business.

The restructuring has successfully laid a solid foundation for the future sustainable and healthy development of both the Group and GZT. Due to the one-off non-cash loss of approximately HK$1,594 million arising from the difference between the net asset value of GZT and the market prices of GZT incurred upon the separation of the transportation business, the Group recorded losses attributable to the shareholders from both continuing and discontinued operations of HK$697million.

Looking ahead, Mr. Lu said, The Group is confident about the long-term prospects of the property market in the PRC. As the property business has been confirmed as the core business for the Group s development, the Group targets to reach contracted sales of HK$9 billion and 540,000 square metres in 2010 with the contracted sales exceeding HK$10 billion in 2011.

Meanwhile, the Group will continue to expand its land bank while carrying out strategies of steady expansion, so as to achieve its objective as adhering to home base in Guangzhou while extending footprints to the Pearl River Delta and first and second tier major cities in other regions. In future, the Group will capitalize on various opportunities so as to significantly increase operation profitability, thereby enhancing returns for shareholders.

Yuexiu Property Company Limited (HKEx Code: 00123)

The Company was listed in Hong Kong in 1992 and is one of the top 10 integrated property developers in Guangzhou. The Company s main business is property development with its operations mainly concentrated in the Guangzhou area.

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