Urged sales of development properties
Remarkable growth of investment property
The Company achieved another height of business operating

(Hong Kong, 21 March 2013) Beijing North Star Company Limited (“Beijing North Star” or the “Company”; HKEx Stock Code: 0588, SSE Stock Code: 601588) is pleased to announce the annual results for the year ended 31 December 2012 (the ‘‘Reporting Period’’).

During the Reporting Period, The Company achieved revenue amounted to RMB5.74 billion, representing a year-on-year increase of 44.52%. Due to the decrease of fair value gains on investment properties over last year, profit before income tax and Profit attributable to equity holders of the Company were representing a year-on-year decrease of 16.51% and 17.27%. However, as driven by the increase in settlement of real estate development projects and the continued substantial increase in operation of investment properties, the core operating results of the companys principal business amounted to RMB771 million (after tax), representing a year-on-year increase of 29.17% with continued growth in three consecutive years. Earnings per share were RMB0.29. The Board has recommended the payment of a final dividend of RMB0.06 per share for the year ended 31 December 2012. (2011: RMB0.03 per share)

Reviewing the 2012 annual results, Mr. He Jiangchuan, Chairman of Beijing North Star, stated, ‘During the report period, the Company proactively extended the pathway of marketing ideas, flexibly coped with market changes, pressed ahead with the implementation of its innovative development strategies of capital expansion, brand expansion and low-cost expansion, whilst increasing the turnover of the development of real estate projects and enhancing the synergistic development of its business that is lead by convention and exhibition, thereby achieving another height in terms of its business and development.’

As for development properties, the D3 and E5 Blocks of Changsha North Star Delta Project have been completed and started to be delivered to customers. The operating revenue of the development properties segment of the Company recorded RMB3.21 billion (including car parks), representing a year-on-year increase of 90.35%. The profit before tax was RMB672 million, and the development properties segment achieved contracted sales and sale areas of RMB3.75 billion (including car parks) and 264,000 m² respectively, representing a sustained share in regional markets. During the year, Phase II of Bihai Fangzhou Garden Villas became sought-after by the market after release. As at the end of the year, 13 units was being subscribed with contracted sales of RMB856 million. Phase II of Changhe Yushu Villas, after preliminary strenuous efforts were made, successfully obtained the planning permit and construction permit. On the other hand, through innovative marketing approach and strategy such as quality output and brand establishment, three indicators regarding sale areas, contracted sales and units sold of Changsha North Star Delta Project achieved continued growth in three consecutive years since its first launch, thereby laid solid foundation for the delivery of objectives of the development property sector.

As for investment properties (including hotels), with a firm grip on the external opportunities in Beijing’s promising investment properties (including hotels) market, the Company fully capitalised on the advantages of its properties in the geographically preferred Asian Games core district and the comprehensive competitiveness of its two pillar products – venues for convention and exhibition as well as office buildings, thereby significantly increased the operation of its stock assets and accomplished continuous growth in benefits. The Company recorded revenue from principal businesses of RMB2.04 billion, representing a year-on-year increase of 15.81%. Profit before tax amounted to RMB 604 million, posting a remarkable growth of 29.33% over the same period last year. In particular, the economic benefits of new projects including North Star Times Tower, North Star Century Centre as well as the China National Convention Centre delivered continuous growth and recorded a year-on-year increase of RMB129 million in profit before tax, representing 94.35% of the growth in profit for the whole investment properties segment (including hotels) and also outperforming in their operations. As a leading enterprise and flagship brand in Beijing and even the whole country, China National Convention Centre strived to enhance the service and management of its convention and exhibition and recorded profits after considering all costs but interest expense and become a satisfactory model for the sustainable development of the Olympic Games venues through undertaking a series of large, high-end and international conventions and exhibitions. In addition, the Company actively proceeded with the strategy of brand expansion around the promoting of convention and exhibition brand and enhanced of the industry chain of convention and exhibition. During the year, the Company successfully entered into contracts on Daluqiao Convention and Exhibition Centre, Xuwei New District, Lianyun Port, Jiangsu (江蘇連雲港徐圩新區大陸橋會展中心) and Zhuhai International Convention and Exhibition Centre, Guangdong (廣東珠海國際會展中心), thereby accomplished breakthrough in promoting brand of convention and exhibition. Through adhering to the operating concept of professionalism and the strategy of multi-project co-sale, the Company actively switched and adjusted its structure of customers for its office business. However, North Star Times Tower and North Star Century have significantly driven up the profit of office business as a whole and that became a key source of the profit of the investment properties segment (including hotels).

As for commercial properties, By facing the keen competition in the commercial properties market, the Company increased its effort in marketing and promotion and boosted its management standard, so as to continuously fulfill the needs of the changing demand. The operation of stock commercial projects was generally stable and that of the new projects was also improving in commercial terms with the further increase in customer flows. According to the report, due to increased market competition and the impact of the new projects still under their infant stage, the operating revenue of commercial properties recorded RMB380 million and the profit before tax reached RMB7.53 million.

Looking ahead, the Company expects to realize properties under construction of an area of 2,526,000 m² and new construction of an area of 796,000 m², and complete construction of an area of 577,000 m². Area sold is targeted to be 365,000 m² and the amount of contracted sales is targeted to be RMB5.27 billion, including car parks.

Mr. He was confident in the market development of the 2013 and concluded ‘In an environment of heavy macroeconomic control on the real estate industry and complicated and changing markets, while strictly adhering to its theme of development, fully adopting and implementing its three major development strategies of “capital expansion”, “brand expansion” and “low-cost expansion” through consolidating its position and internal and external resources, the Company will focus on its capability in predicting the tendency of the market under the new situation, accelerate the quality development of its existing projects and strive to operate the functional district of North Star Convention and Exhibition and expand the influence of the brand of North Star Convention and Exhibition. The Company will unite with the public, be brave to explore, and strive to innovate, so as to develop a new layout of North Star’s business development.’