Longfor Properties H1 Revenue Exceeds RMB10 Billion on Effective Regional Strategy

Hong Kong, 6 July 2010 Longfor Properties Co Ltd ( Longfor Properties or the Group , Stock Code in HKEx: 960) announced today its half-yearly results for the six months ended 30 June 2010 with overall contract sales amounting to RMB10.48 billion, an increase of 30.6% year-on-year. This is the first time that Longfor Properties half-year revenue hit the RMB10 billion mark.

Contract sales from Longfor Properties projects in central and western regions totalled RMB4.14 billion, while the Bohai region contributed RMB5.13 billion, and RMB1.21 billion from the Yangtze River Delta region. A Longfor Properties spokesperson noted, the success of the Group s adoption of a regional strategy is evident in the stable sales growth achieved in the three main regions.

The Group recorded contract sales of RMB1.88 billion alone in June, indicating a stable recovery from May. The increase in June is a result of the increase in property supply of the Group in the period, according to market watchers who are closely following Longfor Properties performance. Two projects Wuxi Rose and Ginkgo Villa and Shanghai Sunshine City were launched in June. Both projects were well received in the market for their exceptional quality and craftsmanship.

Wuxi Rose and Ginkgo Villa is the first project launched by Sunan Longfor Properties. A total of 139 villas, or over 95% of the project, were sold in the first month the project s launch. The total transaction amount from Wuxi Rose and Ginkgo Villa accounts for over 70% of Wuxi s total villa sales. According to market watchers, the success of the Wuxi project proves that Longfor Properties has a very effective branding strategy as Wuxi is a new market for Longfor Properties.

The Wuxi project only took 10 months to develop from land acquisition to market launch. Mr. Qin Lihong, Executive Director of Longfor Properties, said that the speed turnover strategy is very successful, allowing the company greater flexibility in a volatile market. Longfor Properties core competitiveness lies in its products and services. We gain market share by emphasizing speed in our development. This strategy is particularly effective amid market uncertainties with the government introducing regulatory measures on the economy.

In addition to the impressive performance of new projects, the company s main projects in developed areas achieved stable sales. Summer Palace Splendor in Beijing recorded contract sales of over RMB1.5 billion in the first half of the year. In June, Sunshine City in Shanghai sold 80% of the units launched on the first day of sales. Both performed well compared to other projects of the same kind in the two cities. According to latest market information, Longfor Properties is among the top three developers in Beijing and Chongqing in terms of contract sales.

Mr. Qin Lihong added, Our half-year performance meets our expectation. The contract sales in June maintained steady growth as in May, indicating the success of our strategy. In the second half, we will launch our certain saleable commercial items and other new residential projects in cities such as Changzhou, Qingdao, Shenyang and Hangzhou. These projects will contribute substantially to the group s revenue, and deliver shareholder value.