Yuanda China Posts Stable Growth for FY2011

Revenue and Profit Surged 16.6% and 5.5% Respectively to RMB10.8 Billion and RMB850 Million

Successfully entered South America market

Strengthened position as the world's largest provider of curtain wall systems

HONG KONG, March 22, 2012 /PRNewswire-Asia/ --

Yuanda China Holdings Limited ("Yuanda China" or the "Company" and, together with its subsidiaries, the "Group", stock code: 2789), a leading global provider of one-stop solutions for curtain wall systems, today announced its audited annual results for the year ended 31 December 2011 ("the Period").

During the Period, although overseas markets were affected by global economic slowdown and the European debt crisis, the Group was able to achieve stable growth, driven by the ever-growing demand for curtain wall systems in the PRC. During the Period, the Group recorded turnover of approximately RMB10.8 billion, representing an increase of 16.6% over the previous year. Gross profit was approximately RMB2.3 billion, representing an increase of 11.2% as compared with 2010. Net cash generated from operating activities amounted to RMB31.1 million, representing an increase of 110.1% from the corresponding period last year. Profit attributable to shareholders of the Company was RMB850.3 million, an increase of 5.5% over the corresponding period last year. Basic and diluted earnings per share decreased by 15.8% from RMB0.19 in 2010 to RMB0.16 in 2011. The Board recommended payment of a final dividend of HK4.0 cents per share.

Mr. Kang Baohua, Yuanda China's founder and Chairman, said, "In 2011, the Group's overseas business was partly affected by the sluggish recovery of the economy in Europe and the US and a panic resulted from the debt crises in Greece spread among markets. The Group, however, continued to take a proactive strategy to expand into overseas markets. In 2011, the newly awarded projects in Europe soared by 139% with contract sales value reached RMB1,112 million. The Group succeeded in setting its foothold in the market of Brazil in South America with two new projects. For the South-Asian regions, to date, we have managed to be awarded the contract of World One Tower, which is located in India and ranks as the tallest residence worldwide. Leveraging on our industry-leading position both in the PRC and overseas, we also managed to secure certain landmark projects in the Period, including the Shanghai Tower, which is situated in Shanghai and expected to be the tallest building in the PRC and the second tallest building worldwide with a height of 632 meters, New Landmarks in London, Leadenhall Building and 100 Bishop Gate, etc."

In 2011, the Group was awarded 226 new projects with total contract value of approximately RMB13,652 million, an increase of approximately 22.9% as compared to 2010. The value of backlog amounted to approximately RMB17,186 million in total, which well-secured the Group's future income.

In terms of production capacity expansion, part of the construction of our new plant in Anshan was completed and was expected to commence production in 2013, which will increase an annual production capacity of the Group by 1 million square meters. The Group was planning to acquire a land of 150 Chinese mu in Chengdu and prepare to set up a new plant, which was expected to be put in use in 2013 and would increase an annual production capacity of 1.6 million square meters. A subsidiary in Shanghai was planning to purchase a land. Production capacity expansion was expected to be completed by mid 2013, by then the annual production capacity would be enhanced from 2.6 million square meters to approximately 4 million square meters.

The Group has been striving to enhance its R&D capability. During the Period, the strong research, development and design team of the Group mainly focused on developing cutting-edge products and technologies that represent the latest industry trends; developing innovative integrated solutions tailored to customers' needs; improving existing products; enhancing production efficiency and reducing costs. Among the newly awarded projects in 2011, approximately RMB1,654 million (12%) was related to new curtain wall systems, mainly including double-skin energy-saving curtain wall, LED curtain wall and membrane structure curtain wall. In addition, the Group has applied for the registration of 667 patents on its curtain wall products and technologies, among which, application of 551 patents were accepted by State Intellectual Property Office of the PRC and pending for approval, and 96 patents have obtained the relevant certifications. The Group has 144 national patents by the end of 2011.

Chairman Kang said, "A series of real estate adjustments and control measures in the PRC led to a shift on investment to commercial real estate projects from the nearly-saturated residential projects. This will effectively propel the development of the PRC's curtain wall industry. Meanwhile, the "12th Five-Year Plan for Further Promoting the Economy of the Western Regions" will stimulate heavy investment in infrastructure, which will benefit the growth of related industries including ports, airports, railways, real estates and hotels. We will seize the opportunities and intensify the efforts in the expansion in Western China region. Furthermore, with the development of urbanization and the rise of Midwestern and Western China Regions, there will be ample room for development in second-tier and third-tier cities. By means of years of sales networks operated, we believe that there is enormous growth potential in the future."

Chairman Kang concluded, "With respect to overseas, our future development will concentrate in Europe, North America, South America and South Asia. We will gradually increase the revenue from the overseas market by further expanding market shares in these regions. With the Group's leading position in the PRC's and the global markets, its proven track record, advanced research, development and design capabilities, extensive sales and marketing network worldwide, strong production and processing capacity, full range of high-quality services and its experienced management team, the management has full confidence in the long-term prospect of the Company."

About Yuanda China Holdings Limited

Yuanda China is the largest provider of curtain wall system in the world, as measured by revenue and net profit by the end of 2010. As a leading global provider of one-stop solutions for curtain wall systems, Yuanda China mainly focuses on the public facilities and commercial buildings, its service range covering design of curtain wall systems, procurement of materials, fabrication and assembly of curtain wall products, performance testing, installation of products at construction sites, and after-sales services. The Group, a provider of a comprehensive product portfolio, has further developed various curtain wall products by using more complex designs, new materials and advanced technologies to serve different functions, such as environmental protection, energy conservation and intelligent control. From 2008 till now, the Group has successfully completed over 800 projects worldwide, including many globally renowned landmarks, such as Theme Pavilion of Expo 2010 Shanghai China, the China National Swimming Center (also known as the "Water Cube"), the National Stadium of China (also known as the "Bird's Nest"), the Airrail Center Frankfurt, the COCOON Tower and the Executive Towers at Business Bay. Yuanda China owns four production bases strategically located in Shenyang, Shanghai, Chengdu and Foshan, serving clients from different regions and markets.

Issued by Porda Havas International Finance Communications Group for and on behalf of Yuanda China Holdings Limited. For further information, please contact:

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