Joy City Property Announced 2016 Annual Results

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Wednesday, 29 March 2017, 19:34 HKT/SGT

Insist On Holding And Selling, Rise Overall Strength Continuously

HONG KONG, Mar 29, 2017 - (ACN Newswire) - Joy City Property Limited ("Joy City Property" or the "Company", Stock Code: 0207) announce the consolidated results of the Company and its subsidiaries (the "Group") for the year ended 31 December 2016 (the "Period").

- Total revenue was 6,987 million RMB, increased by 30% YOY
- Cash held by the Group amounted to 8,828 million RMB increased by 133% .(2015: 3,796 million RMB)
- Gross profit increased by 30% to 3,760 million RMB; Gross profit margin was 53.82%.
- Excluding the non-cash income, core net profit increased by 20% to 600 million RMB
- Net gearing ratio of the Group substantially decreased by 32.83pps to 30.09%, compared with 31 December 2015.
- The Group's weighted average borrowing cost rate further decreased to 4.31%, representing a decrease of 1.27 percentage points as compared to that as at 31 December 2015.
- Annual profit was 1,275 million RMB, increased by 33% YOY; Profit attributable to shareholders was 798 million RMB.

During the reporting period, due to the excellent performance from property development and investment properties rental, the group?s total revenue was 6,987 million RMB, increased by 30% YOY; Cash held by the Group amounted to 8,828 million RMB increased by 133% (2015: 3,796 million RMB); gross profit increased by 30% to 3,760 million RMB, gross profit margin was 53.82%; Excluding the non-cash income, core net profit increased by 20% to 600 million RMB; Net gearing ratio of the Group substantially decreased by 32.83pps to 30.09%, Compared with 31 December 2015; The Group's weighted average borrowing cost rate further decreased to 4.31%, representing a decrease of 1.27 percentage points as compared to that as at 31 December 2015; annual profit was 1,275 million RMB, increased by 33% YOY; Profit attributable to shareholders was 798 million RMB.

In 2016, the Group achieved relatively steady performance in the four main segments such as property investment, property development, hotel operation, property management and related services.

For investment properties business, in 2016, the Group's investment properties maintained sound operation. The operation of Joy City recorded steady growth, with sales amounting to approximately RMB14.6 billion (representing a year-on-year increase of 23.0%) and rental income amounting to RMB2.1 billion (representing a year-on-year increase of 22%) respectively, which is in line with the benchmark level of the industry. On 24 December 2016, Tianjin Heping Joy City, the first entrusted management project of Group commenced operation after a grand opening. In addition, the company has entered into framework agreements for two projects, namely Kunming Luosiwan and Guiyang Joy City, has the area of 318,000 and 135,000 square meters respectively, which are currently under preparation. During the reporting period, the Group also successfully acquired the Parkside Plaza Project in Shanghai and held 100% stake, which was another strategic layout of Joy City Projects in Shanghai; The Hangzhou Joy City, which located in Hangzhou Gongshu District, has the area of 208,000 square meters and it is expected to open in 2018.

For property development business, during the period under review, the Group continued to insist on improving the high-end quality and customer experience on value, which are well accepted by the market. Among which, Hainan COFCO Hong Tang Joy Sea, being the prime project with a waterfront view along the only remaining primary coastline of Sanya, has attracted nationwide attention with phase one of the project achieved a brilliant start. Shanghai Jing'an Joy City Joy Mansion One also brought additional supply to the market. Against the backdrop of strengthened measures implemented in respect of macroeconomic regulation and control, Shanghai Joy City Joy Mansion One still broke the opening sales record for luxury properties in terms of the pace for contracted sales.

For hotel operation business, the Group continued to strengthen its refined operation, Amid the depressed high-end hotel market in general, the results of hotel operations basically remained stable. The averaged occupancy rate of hotel increased by 9pps to 70% compared with last year; EBITDA increased by17% to 261 million RMB (2015: 223 million RMB).

For property development and related services, the Group is committed to build the intelligence green property management system. Through the intelligence management methods including APP, EISS system and QR code, promote standardization and elaboration of property management, as well as product power and customer satisfaction.

Looking to the future, the Vice President of COFCO Group, the Chairman and General Manager of Joy City Property Limited, Mr. Zhou Zheng said: "the Group will seize the new opportunities arising from industry consolidation. Moreover, the Group will continue to maintain the two-wheel-drive development strategy of holding and selling properties under a balanced approach and uphold the business approach of "system optimization, quality and efficiency enhancement, innovation and change and compulsory enforcement". From the perspective of uplifting operating capacity and efficiency, we will strive to enhance consumer experience by continuously developing the O2O e-commerce platform and elevate the operating efficiency by revitalizing its asset stock with asset securitization. Moreover, benefiting from the cross-sector cooperation and business upgrade, our comprehensive competitiveness will be enhanced with continual consolidation and improvement will be achieved in brand influence, business innovation and resources integration of "Joy City" urban complexes in the industry. Under our profound financial ideology of "general asset management", we will achieve admirable transformation against the industry's new normal and build Joy City a long-lasting brand in the property industry in the PRC.

About Joy City Property Limited
Joy City Property Limited (HK00207) is the leading commercial property developer and operator of COFCO Group, focusing on the development, operation, sales, leasing and management of complexes and commercial properties in the PRC.

The group mainly engages in the development, operation and management of mixed-use complexes under the brand of Joy City, and owns projects include 9 Joy City complexes in 7 cities, namely Beijing, Shanghai, Tianjin, Shenyang, Yantai, Chengdu and Hangzhou, and 3 light asset output projects. The group also has prime investment properties strategically located in first-tier cities, including Beijing COFCO Plaza and Hong Kong COFCO Tower, as well as high quality properties held by the Group, namely Shanghai Joy City Joy mansion one. The Group operates a number of national high-end luxury hotels, including W Beijing-Chang'an, The St. Regis Sanya Yalong Bay Resort and MGM Grand Sanya. These high quality property projects are strategically located in central districts of first or key second tier cities with good investment and appreciation potentials.

Looking forward, the Group will maintain the two-wheel-drive business strategy of "holding and selling properties", the development strategy of "light and heavy asset", and establish the development model of "Joy City Asset Management" combined real estate with finance, enhancing product quality and cost-effectiveness, so as to create value for its customers, shareholders and partners. The group will inherit the ideals of "Sustain Operating for Centuries", and preserve with the "young, fashionable, trendy and quality" brand spirit of Joy City to lead the trend of new city lifestyle of China. It is a mission of the Group to assist in coordination among and development of cities in China and become a leading complex and commercial property developer in the PRC.

Topic: Press release summary Sectors: Daily Finance, Daily News
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