• Focus onHigh-Quality Growth
• Core Profit up 8.3% y-o-y
• Optimized FinancialPosition
• Enhancementof Operation Effectiveness and Efficiency

FinancialHighlights:

HONG KONG, CHINA - MediaOutReach - 24 August 2020- Zhenro Properties Group Limited ("Zhenro Properties" or "the Group"; stockcode: 6158), a leading PRC property developer, announced its unaudited interimresults for the six months ended 30 June 2020 (the "Period").

Results

During the Period, the Group achieved stable earnings growth. Its revenue increased by 6.5% yoy to RMB14,542 million. Profit for the Periodwas RMB1,275 million, representing a yoy increase of 8.1%. The core profit¹was RMB1,243 million, representing a yoy increase of 8.3%, core profit margin was 8.5%

Innovative Targeted Marketing in Response to the COVID-19 Pandemic

In the first half of2020, affected by the COVID-19 pandemic, the Group coped with the situation andestablished a "Pofeng Action (破風行動)"team which was responsible for the smooth resumption of construction projects, punctualsupply of units and minimization of risks associated with units delivery, and attainedproject resumption rate of 100% within 45 days of the shutdowns. In addition,the Group dynamically adjusted its business strategies. It quickly carried outonline-to-offline marketing, including the launch of an online sales app of"Zhenro Home (正榮置家)" to provide a new experienceof virtual reality online tour of residential units. The Group also launched aseries of innovative and targeted online live marketing activities to draw moreattention in the market. These measures have thus led to a continued recoveryin sales since March. In the first half of the year, the Group recordedaggregated contracted sales of RMB55.993 billion, which was equivalent to about40% of the annual contracted sales target of RMB140 billion.

Regional Penetration with Equal Emphasis on Quality andEquity Interests of Investment

The Group pursues the strategyof "regional penetration" by expanding its business presence in the metropolisand their surrounding areas. In the first half of 2020, the Group acquired 19parcels of land with total estimated GFA of 3.02 million sq.m. in 12 cities. Ofthe Group's newly acquired land bank, 52% and 26% are located respectively inthe Yangtze River Delta region and the Western Taiwan Straits region, which aretwo core areas where the Group has considerable advantages. In terms of thetiers of cities, 65% of the Group's newly acquired land bank is located infirst- and second-tier cities with good economic fundamentals. Besides, theGroup's overall equity interest in the newly acquired land bank increased to73% in the first half of the year. As at 30 June 2020, the Group had a landbank with GFA of 27.4 million sq.m. in 32 cities in the PRC, 76% of the landbank is located in first- and second-tier cities. The Group's equity interestin the land bank as at 30 June 2020 increased to 58% from 55% as at the end of2019.The average land cost was RMB4,919 per sq.m..

Improvement and Upgrade of Products, Enhancement of OperationEffectiveness and Efficiency

In the first half of 2020, theGroup strived to improvement and upgrade of products, as well as enhancement ofoperation effectiveness and efficiency, so as to achieve a sustainable "high-qualitygrowth". Having positioned itself as "Home Upgrade Master", the Group launched the "Zhenro Oasis Community Plan (正榮綠洲社區計劃)" for building an ideal andmodern community to live in. The plan is aimed at comprehensively upgradingthe system of common spaces in communities, the system of access to home and the system offurnishings and appliances for a home by considering such dimensions as "Truth","Arts", "Nurture" and "Return". The Group has been recognized by professionalorganizations in the industry for its high-quality products. In addition, theGroup strives to improve its operation efficiency throughout the wholedevelopment cycle. By improving the efficiency of the design and acceleratingthe standardization of products, the Group increased both the rate of projectstandardization and the rate of replication of furnished projects to 100%during the Period. The average period for a project to confirm its positioningafter land acquisition is 0.9 month and the average initial sale period of aproject is approximately 7 months. The Group has also enhanced its commercialproperty operation capability, setting benchmarks in terms of such performanceindicators as occupancy rate, rental collection rate, operating revenue andquality in the region of its operations.

Optimized Financial Structure and Decreased Financing Cost

In the first half of the year,the Group succeeded in raising funds despite the significant fluctuations inthe global capital markets. Besides, the Group has managed to secure a total ofapproximately US$161 million bank loan facilities offshore in July, reflectingthe banks' confidence in the Group's prospect. In the domestic market, theGroup also continued to deepen its cooperation with various financialinstitutions in traditional financing, while appropriately reducing itsreliance on higher-cost non-traditional financing channels, so as to optimizeits debt structure.

Due to its optimized debtstructure, cash collection and cash flow management, the Group's major financialratios and credit ratio were further improved. As of 30 June 2020, the Group'snet debt-to-total equity ratio was 71.4%, and its cash-to-short term borrowingratio was improved to approximately 2.1 times with the proportion of short-termdebts decreasing to 30.0%. The onshore other borrowings to total borrowingratios fell significantly to 9%. The Group also recorded a decrease in the costof its newly raised financing in both the domestic and offshore capitalmarkets. As at the end of the Period, the weighted average cost of borrowingsfurther decreased to 7.0%.

The Group has been recognizedby credit rating agencies for its prudent financial management and overallstrength. In the first half of the year, Zhenro Property Holdings CompanyLimited, a wholly owned subsidiary of the Company, was assigned "AAA" corporatecredit rating (which is the highest rating) with a stable outlook by ChinaChengxin International Credit Rating Co., Ltd. (中誠信國際信用評級有限責任公司) and Dagong Global Credit Rating Co., Ltd. (大公國際資信評估有限公司). Despite the increasingly complicated globalsituation, Moody's, Fitch Ratings and Standard & Poor's maintained thecredit ratings of B1 (stable), B+ (stable) and B (positive) respectively forthe Company.

Looking ahead, Mr. Huang Xianzhi, Chairmanof the Group said, "In the second half of this year, the PRC government is expected to press on withthe policy of 'stabilizing the prices of land and housing while managing marketexpectations' under the principle that 'houses are for living in, not forspeculation'. Meanwhile, its city-specific policies on the regulation of theproperty market will continue to play an important role in flexibly striking abalance between the housing prices on one hand and the new type ofurbanization, the absorption of immigrants as talent and the comprehensivedevelopment of urban clusters on the other hand. There is limited room forrelaxation on the financing channels of real estate enterprises in theforeseeable future but the real estate sector's role in stabilizing the overalleconomy cannot be downplayed, especially in the light of the current downwardpressure on the macro-economy. The reasonable needs of individuals andenterprises for capital will still be met. As the property sector takes itsdevelopment to the next level, the industry players will increasingly enhance theircore competitiveness by giving full play to their own strengths. To capitalizeon the rapid consolidation of the industry and the more segmented market, theGroup will seize opportunities for investment opportunity and improve both thequality and efficiency of its operation. All these will enable the Group toachieve 'high-quality growth'."

About Zhenro Properties Group Limited

Zhenro Properties GroupLimited is a leading property developer in the PRC with nationwide businesspresence in six key economic regions. The Group achieved contracted sales ofRMB130.7 billion in 2019 and was ranked 17th in the Best 200 China PropertyDevelopers by Comprehensive Strength in 2019. Upholding its brand position of"Home Upgrade Master", the Group focuses on bringing quality residences to middleclass and affluent home upgraders. Zhenro Properties was listed on the MainBoard of the Hong Kong Stock Exchange in 2018. It is a constituent stock in theHang Seng Composite LargeCap/MidCap Index, Hang Seng Large-Mid Cap Value Tilt Index and the MSCI China Index and is included in the list of eligible stocksfor southbound trading of the Shenzhen/ Shanghai - Hong Kong Stock Connect.