Sunac China Announces 2010 Interim Results

  
Gross Profit and Net Profit Up 50.3% and 71.8%

Strives to be a Leading High-end Boutique Property Developer in China

HONG KONG, Oct. 20 /PRNewswire-Asia/ --

Sunac China Holdings Limited ("Sunac China" or the "Company" and together with its subsidiaries, the "Group", Stock code: 1918), an integrated residential and commercial property developer in China, announced its unaudited interim results for the six months ended 30 June 2010 ("the period under review").

At the beginning of the year, the Group expected that a number of adjustments would be made to the macro property policies in 2010 and the market would experience a certain degree of fluctuations and volatility thereafter. Revenue increased 8.4% over the same period last year to approximately 790,000,000 (2009: RMB728,000,000). Net profit recorded RMB189,935,000 (2009:RMB110,586,000), representing an increase 71.8% over the same period last year; while gross profit margin grew to 50.0%.

In the first half of the year, regarding the series of adjustments made by the PRC government, under the positive response in the Group, the Group still achieved the assigned objectives. In the first half of the year, the Group's operational revenue from sales was RMB789.8million, while achieved contracted sales were RMB3.867billion. All projects of the Group are located in various cities' prime areas and occupy rare resources, and target customers are high-income population in the cities, enabling the Company to operate in a stable manner and effectively withstand the risk arising from market fluctuation Under the background of the adjustment to macro-policies in the first half of 2010, selling prices of the Group's projects have not been affected or have even increased, combining with the fact that selling prices increased in 2009, resulting in a substantial increase in the Company's gross profit as compared with the same period last year. In addition, construction of the Group's various projects have commenced as planned. Under the period under review, the Group had 5 newly delivered projects with GFA of 73,000 sq.m.. 

During the period under review, the Group engaged in a total of 13 property development projects with a total site area of approximately 4,869,788 sq.m. and a total aggregate GFA of approximately 9,030,297 sq.m.. As of June 30, 2010, the Group and associated project companies had sold and delivered an aggregate GFA of approximately 3,128,169 sq.m. and held a total amount of aggregate GFA that have been completed but have not been sold or delivered and aggregate GFA that the Group and associated project companies are developing or plan to develop pursuant to the relevant land grant contracts or other approval documents of approximately 5,902,128 sq.m. comprising (i) a completed aggregate GFA of approximately 439,472 sq.m. held for sale or for investment, (ii) a planned aggregate GFA of approximately 1,530,926 sq.m. under development, and (iii) a planned aggregate GFA of approximately 3,931,730 sq.m. for future development. As of June 30, 2010, the Group and associated project companies achieved contracted sales of RMB3.867billion which was equivalent to 388,804 sq.m..

During the period under review, the Group has adopted a prudent and reasonable approach in expanding its land reserves. In the first half of 2010, the Group acquired the Yixing Dongjiu land parcel and Tianjin Xingyeli land parcel respectively with a total of RMB 4 billion and total of GFA 667,024 sq.m., the Group acquired another 49% shares of Wuxi Sunac Real Estate Co., by the way of listing the transfer, the Group also entered into an agreement relating to the primary land development of a land of about 938 hectares in Tianjin Tuanbohu and has been negotiating with the other two shareholders in respect of the fundamental framework agreement to acquire 40% shares of such company.

Looking ahead, Sunac China will continue to expand its business with a focus on most dynamic development in selected region, aiming to consolidate its leading position of property developer in China to offer high quality property unit. The Group plans to continue to focus on providing high quality products and services to mid-to-high income customers. Sunac China will continue to strengthen and consolidate its position in Tianjin, Beijing, Chongqing, Wuxi and Suzhou by developing existing and new projects in order to further enhance its comparative strengths in these markets, as well as maintaining quality land reserves through various channels in a prudent manner.

Besides, the Group maintained quality land reserves through various channels in a prudent manner. It will continue to negotiate for the acquisition of the 40% shares of Chongqing Yuneng Sunac Real Estate Co., Ltd. and take a prudent approach to continue its land requisition at reasonable costs. Meanwhile, the Company is now collecting, tracking and negotiating for related land information in the existing areas. The Group plans to use existing capital and proceeds raised from the listing to acquire new land.

Even though a number of adjustments would be made to the macro property policies in 2010 and the market would experience a certain degree of fluctuations and volatility thereafter. However, from a long-term perspective, the acceleration of urbanization would be the fundamental driver of ongoing growth of the real estate market in the PRC. Looking ahead, the urbanization in the PRC would follow a unique path in its development, providing a strong driving force for the speedy, balanced and sustainable development between the economy and the community through the clustering of cities as a major means and form of urbanization. With a forward looking vision, Sunac China will continue focusing on selected region and cities. Leveraging with the trend of urbanization development, the business of Sunac China must continue to be benefited and develop rapidly. 

About Sunac China Holdings Limited.

Sunac China Holdings Limited, ("Sunac China" or the "Company") is a leading integrated residential and commercial property developer with a focus on large-scale, medium to high-end property developments in selected cities in China. Since its establishment in Tianjin in 2003, Sunac has developed strong foothold in three of the dynamic economic regions of China including the Bohai Rim, Chengdu-Chongqing and South Jiangsu regions. Sunac China successfully listed on the Main Board of the Stock Exchange of Hong Kong Limited on 7 Oct 2010. Sunac focuses on developing a variety of residential properties for sale, including high-rise apartments, mid-rise apartments, townhouses and detached villas. The Company also develops various commercial properties primarily for sale as well as for lease, including retail stores, offices and serviced apartments. As of June 30, 2010, the Company had a valuable land bank of approximately 5.9 million sq.m. and a total of 13 projects which located in Beijing, Tianjin, Chongqing, Wuxi and Suzhou cities respectively.

For further information, please contact:

Ms. Miranda Fok
Tel: +852-3150-6781
Email: miranda.fok@pordafinance.com.hk

Ms. Alman Loong  
Tel: +852-3150-6731  
Email: alman.loong@pordafinance.com.hk

Ms. Samantha Yeung 
Tel: +852-3150-6735
Email: samantha.yeung@pordafinance.com.hk

Ms. Christine Gu               
Tel: +852-3150-6792
Email: Christine.gu@pordafinance.com.hk

Fax: +852-3150-6728