(Hong Kong – August 17, 2019) Beijing Capital Land Ltd. (“BCL” or the “Company”, together with its subsidiaries (collectively the “Group”); stock code: 2868.HK), one of the leading integrated property developers in China, today announced the Group’s interim results for the six months ended 30 June 2019.

During the first half of 2019, the Group’s revenue totaled RMB10,476,385,000, up 47% from the same period last year, operating profit increase 42% year-on-year to RMB2,178,675,000. Profit attributable to owners of the Company increase 61% year-on-year to RMB1,187,493,000. Earnings per share were RMB0.30, representing an increase of 58% compared with the first half of 2018. The Board resolved not to declare an interim dividend for the six months ended 30 June 2019.

Mr. Zhong Beichen, the President of BCL, commented, “During the first half, focusing on three key metropolitan areas including the Beijing-Tianjin-Hebei, the Yangtze River Delta and the Guangdong-Hong Kong-Macau Greater Bay Area, and key tier-2 cities with market potential, BCL continued to faithfully implement its ‘fast turnover’ strategy by taking advantage of an open window of market opportunities, accelerating project launches, cash collection and project delivery, and actively revitalizing inventory. Additionally, BCL effectively executed its “Endeavor Program”, a project co-investment platform launched at the beginning of the year, and achieved significant results. All of the new projects that were added within the year secured co-investments and the Group saw dramatic increases in both contracted sales and cash collection from operations. Looking ahead, the Group will proactively respond to market changes while adhering to its corporate values and strategic focus as it works to realize ‘quality growth’. In particular, adhering to the strategy of fast turnover and prudent investment, BCL will take advantage of its strategic synergies with Beijing Capital Group and its state-owned enterprise resources, and continue to explore innovative businesses to develop new profit drivers. BCL will sprint to create greater value for shareholders.”

During the first half of 2019, BCL adhered to its “fast turnover” strategy and captured opportunities presented by favorable market conditions to successfully launch high-quality projects, increase sell-through rate of newly released projects, and effectively revitalize inventory. The Group also fully upgraded its “BCL Made 2020” product strategy that encompasses thorough market research, first rate construction, high-end project design and timely delivery. The Group continued to hone its core product lines such as “Tian Yue”, “Xi Rui” and “Xi Yue” series, in an attempt to take its product quality and service quality to the next level. The Group’s in-house sales teams also dedicated to tap into multiple marketing channels and contributed contracted sales of RMB12.90 billion. Coupled with multiple measures including improving sell-through rate and strictly collecting cash on schedule, the Group hit a record high in terms of contracted sales and a great increase in cash collection.

During the first half of 2019, the total contracted sales area of the Group’s projects was 1.63 million sq.m., up 19.4% from the same period last year. Total contracted sales were RMB40.54 billion, up 12.4% from the same period last year. During the period, the three key metropolitan areas on which the Group focused contributed significantly. Contracted sales were RMB36.00 billion, up 23.9% from the same period last year, accounting for 90% of the total. In particular, Beijing further demonstrated its position as a major driver of contracted sales growth as the city alone contributed RMB21.50 billion, or 53% of the total contracted sales. During the period, some projects, including the “Capital of Vision” project in Shanghai and the “Novotown” project in Kunshan, achieved a 100% sell-through rate and total contracted sales of RMB5.00 billion.

As for land investment, the Group implemented its strategy to stabilize land investment by focusing on three key metropolitan areas and key tier-2 cities that management believes to have particular potential. The Group successfully acquired multiple plots of high-quality land at low cost through leveraging synergies in primary and secondary land development, acquiring land with Prime Golden Capital, and also through joint ventures. During the period, the Group acquired 13 secondary land development projects with a total GFA of 1.84 million sq.m. for a total of RMB17.1 billion, representing an average land premium rate of 16.9%. Specifically, investments in the three key metropolitan areas accounted for more than 81.3% of the total. During the period, the Company entered the Suzhou, Dongguan, Xiamen and so on residential property markets for the first time. While expanding its presence in the Yangtze River Delta and Guangdong-Hong Kong-Macau Greater Bay Area, the Group continued to expand its deployments in the single core cities. In addition, the Group leveraged its synergies in primary and secondary land development and newly acquired three projects in the Beijing region at floor price, with an aggregate investment of RMB6.74 billion, representing 39.3% of the total land investment.As of 30 June 2019, the Group had total land bank with an aggregate GFA of 13.09 million sq.m., and total ground area of 10.11 million sq.m.. The existing land bank is considered to be sufficient for the Group’s development over the coming three years.

In terms of commercial property, Beijing Capital Grand, the commercial property arm of the Group, continued to expand its presence, rolling out new projects such as the Beijing Fangshan Capital Outlets Phase 2 and Jinan Capital Outlets. To date, the Group has deployed outlet projects in 17 cities, and 10 outlet projects are currently open for business. The Group remains No.1 nationwide in terms of the number of outlets both deployed and operated in the industry. During the period, the Group accelerated outlets operating quality and efficiency by further optimizing its business structure and unveiling innovative new marketing strategies. On the tech front, the Group improved its operating efficiency by improving its technological capabilities across digital platforms and big data analytics. In terms of marketing, BCL continued to improve its brand influence by adopting innovative marketing strategies to effectively attract targeted customers and drive rapid growth in business performance. As a result, outlets in operation during the period achieved turnover of RMB3.64 billion, up 54% from the same period last year, and customer traffic of 18.64 million, up 103% from the same period last year.

During the first half of 2019, in response to the government’s policies, the Group actively pushed forward its expansion into diversified businesses, launching a number of rental housing projects and creative heritage projects at a fast pace. During the period, the Group’s Fangshan He Yuan Project in Beijing hit full occupancy and the Shuanggang He Yu Project in Tianjin reported an average occupancy rate of 85%. In addition, the Group officially started construction on the Shibalidian Project, the largest rental housing project developed on collectively owned land in Beijing. The Group also launched the Beijing Yongyuan Project, an intangible culture heritage themed park. It is the first project of its kind in China and joins the Group’s Langyuan Vintage Project as another benchmark development that promotes Chinese culture and creativity in Beijing. Both have become signature projects of BCL’s cultural and creative industries projects, which should help the Group expand its management know-how and rapidly improve its operating capabilities.

During the first half of 2019, leveraging its strong advantages in the capital markets, the Group pushed forward initiatives to establish a sound financial structure. During the period, the Group took advantage of favorable market conditions and successfully issued three tranches of private corporate bonds totaling RMB8.09 billion and RMB1.00 billion in perpetual medium-term notes in the inter-bank market. The Group was able to secure record low interest rates compared with other similar issuances. During the period, the Group’s rights issue plan was also approved at the general meeting of shareholders. Prime Golden Capital, the financial platform under BCL, began to pick up momentum with four newly acquired projects during the first half, providing an effective boost for the Company’s expansion and resource integration..

Looking out to the second half of 2019, China will continue to follow the overarching themes of “housing is for people to live in, not for speculation” and “one city, one policy” for the housing sector. The government’s policies, which set a primary goal of “stabilizing land and housing prices and guiding market expectations”, will promote the stable development of the housing market and give rise to the establishment of long-term housing policies suitable for different cities. While continuing to develop core projects in line with its “BCL Made 2020” strategy, the Group will adhere to a “fast turnover” strategy and speed up the launch and delivery of new projects, aiming to achieve an annual sales target of RMB80 billion. In response to the government’s policies, the Group will also accelerate the launch of new projects in its three diversified business lines, including cultural and creative industrial property developments, high-tech industrial property developments, and rental housing, in a bid to develop new profit drivers. Besides, the Group will actively promote a rights issue plan in an effort to achieve breakthroughs in equity financing. It will also leverage its edge in credit and capital operations to maintain smooth financing channels and expand new channels in order to further consolidate its advantage in financing costs. Additionally, the Group will be dedicated to further establish a multi- faceted incentive mechanism through further implementing the “Endeavor Program”, the project co-investment platform under BCL, thereby aligning the interests of employees and the Group.