Yuzhou Properties Announces Net Profit Jumped 88.5% for 2010

Yuzhou Properties Company Limited, a leading Fujian-based property developer in China, announced on April 1, 2011 the audited annual results of the company and its subsidiaries for the year ended 31 December 2010.

According to a prepared statement by the company, turnover of the group substantially increased in 2010 by 114.2% to approximately RMB 4.26 billion. Gross profit increased by 79.9% to approximately RMB 1.78 billion. Core net profit increased by 88.5% to RMB 757 million. The board of directors proposed a final dividend of HK 11 cents per share, representing a payout ratio of 30% of core profit attributable to shareholders. Core earnings per share were RMB 32 fen, up 52.4% from the previous year. During 2010 Yuzhou continued to consolidate its strength in Fujian and nearby provinces, steadily penetrated into the Yangtze River Delta Region and began to move into the Bohai Rim Region.

As of 31 December 2010, the group achieved sales of RMB 4.2 billion and area sold of approximately 528,282 sqm, representing a significant increase of 116% and 183% respectively over 2009. In 2010, contracted sales area of the group was approximately 380,000 sqm, Contracted sales were approximately RMB 5,217.27 million, up 35% over 2009.

During 2010, the group increased land reserves to approximately 5.44 million sqm. The companys new land acquisitions in 2010 were mainly located in the West Strait Economic Zone around Fujian, the Yangtze River Delta Region and the Bohai Rim Region, accounting for 52%, 4% and 44% respectively of the acquisitions.

According to the company statement, the group believes that its land reserves currently held and managed are sufficient for future development over a period of five to six years.

As of 31 December 2010, the aggregate saleable GFA of Yuzhou’s land reserves was over 4.91 million sqm, of which saleable GFA of completed and unsold properties amounted to approximately 150,000 sqm. Saleable GFA of projects under development amounted to approximately 1.95 million sqm and the GFA of projects held for future development was approximately 2.81 million sqm. In addition, the company had two projects granted primary development qualification with expected aggregate GFA of no less than 4 million sqm. With the continued expansion of our business, the group’s targeted saleable GFA started in 2011 are approximately 1.01 million sqm..

In an annual survey jointly conducted by the Development Research Centre of the State Council, the Institute of Real Estate Studies of the Tsinghua University and the China Index Academy, Yuzhou Real Estate was ranked one of “China’s Top 100 Real Estate Developers” for five consecutive years from 2006-2010, and was named one of “China’s Top 50 Real Estate Developers” for the first time this year, becoming the top real estate developer in Fujian Province.