Jinmao Hotel and Jinmao (China) Hotel Investments and Management Limited Announces 2017 Interim Results

Monday, 7 August 2017, 18:22 HKT/SGT

Steadily Enhancing Operational Efficiency and Maintaining Market Leadership

HONG KONG, Aug 7, 2017 - (ACN Newswire) - Jinmao Hotel and Jinmao (China) Hotel Investments and Management Limited (the "Company", and, together with its subsidiaries, the "Group", stock code: 6139.HK) today announced the interim results for the six months ended 30 June 2017 ("the Review Period").

Results Highlights
- Total revenue amounted to RMB1,288 million, up 6% YoY
- Revenue from hotel operations business was approximately RMB955 million, up 8% YoY
- EBITDA of hotel operations business was RMB301 million, up 17% YoY
- Profit attributable to holders of Share Stapled Units ("SSUs") of the Company was approximately RMB248 million
- Basic earnings per SSU was RMB0.12
- Gross profit was RMB758 million, up 8% YoY
- Interim distribution per SSU was HK$ 19.60 cents

During the Review Period, the Group generated total revenue of RMB1,288 million, increasing by 6% as compared to the same period last year. The hotel operations segment in the first half of 2017 recorded revenue of RMB955 million, representing an increase of 8% as compared to the same period last year. EBITDA of hotel operations business was RMB301 million, up 17% YoY. Profit attributable to Holders of Share Stapled Units amounted to RMB248 million and basic earnings per Share Stapled Unit amounted to RMB0.12. Excluding the fair value gains on investment properties, profit attributable to the Holders of Share Stapled Units amounted to RMB118 million. Gross profit amounted to RMB757.8 million, increasing by 8% as compared to the same period last year. The Boards have resolved to declare an interim distribution of HK19.60 cents per Share Stapled Unit, based on the Trust Distributable Income of RMB346 million (equivalent to approximately HK$392 million).

Mr. LI Congrui, Chairman and Non-executive Director of Jinmao Hotel and Jinmao (China) Hotel Investments and Management Limited said, "In the first half of 2017, the global economy picked up, while China's economy maintained a steady growth with an expected annual increase of over 6.7%. Despite of the intense competitions among high-end hotels in major cities in China, it is encouraging to see the development of domestic tourism remained its leading position, which drove a continued improvement in hotel operations. The macro factors for the mid- to long-term operation of high-end hotels in China remained favourable, and the performance for high-end hotels in the first-tier cities such as Beijing, Shanghai, Guangzhou, Shenzhen and some core second-tier cities started to stabilize and recover, and the occupancy and average daily rates both showed a rising trend."

In the first half of 2017, the Group rode on the market upturn and focused on operating performance, with efforts to introduce innovative sales and marketing initiatives, improve operational efficiency and steadily increase revenue. In relation to hotel operations, the Group continued to enhance the weak areas of the hotel operation results; promote the floor efficiency of the inefficient assets and idle areas; promote the establishment of direct sales ability and booking platform of the hotels of the Group; improve Food & Beverage sales and innovation of strategies. Meanwhile, the Group continued to carry out hotel cost optimization to increase operational efficiency. By establishing competence assessment scheme, service supporting mechanism and sales incentive scheme, the Group has adopted effective measures in human resources allocation, service enhancement, product innovation, and sales strategy, providing solid support for the growth of performance. The hotel operations segment in the first half of 2017 recorded revenue of RMB955 million, representing an increase of 8% as compared to the same period last year.

In relation to the leasing of commercial properties, with the opening of Shanghai Tower and the increasingly competitive market conditions in Lujiazui district, the Company has maintained the balance between the rental and customer structure while achieved a steady growth in occupancy and further improvement in the quality of tenants, by leveraging on the solid customer base, as well as the flexible commission and pricing strategy. For the first half of 2017, revenue from property leasing amounted to RMB249 million, decreasing by 2% as compared to the same period last year.

The Observation Deck on the 88th floor of the Jin Mao Tower was emphasized to enhance the tourist experience, to accelerate growth in the tourism business and its marketing model, and enhance the transformation of marketing channels. By utilizing the marketing campaigns of The Skywalk project, the Company improved the proportion of individual visitors and the customer structure became more reasonable.

Looking ahead, Mr. LI Congrui said, "In 2017, in light of the development environment and trend of tourism at home and abroad, it is estimated that Mainland China's total travel related revenue will exceed RMB5 trillion at a year-on-year increase of 11% and the visitor arrivals will amount to a total count of 4.8 billion at a year-on-year increase of 10%. We are generally positive and optimistic on the tourism economy this year and expect a steady upward market trend in the high-end hotels in Shanghai, Beijing, Shenzhen, Sanya and Lijiang. We will insist on our operating results as the core, promote development innovation, management innovation, operating mode innovation and system innovation, improve the profitability and enhance the ROE and distribution level of the Company. We will focus on hotel operations and actively identify high- end commercial and hotel property investment projects of strategic value at home and abroad to further enhance the quality and size of our asset portfolio. Meanwhile, the Group will actively develop asset-light businesses. We will continue to strive for excellence to achieve even more remarkable results in the future in order to maximize the returns for all Holders of Share Stapled Units."

About Jinmao Hotel and Jinmao (China) Hotel Investments and Management Limited
Jinmao Hotel and Jinmao (China) Hotel Investments and Management Limited ("Jinmao Hotel", stock code: 06139.HK), formerly known as Jinmao Investments and Jinmao (China) Investments Holdings Limited, is a fixed, single investment trust with an initial focus on the hospitality industry in the PRC. Jinmao Hotel primarily owns and invests in a portfolio of hotels with diversified income sources and customer mixes from a portfolio of high quality hotels and commercial properties, comprising 8 hotels and Jin Mao Tower, a mixed-use development. The properties are all located in prime, strategic locations in top-tier cities or tourist hot spots across the PRC, and comprise high quality hotels and commercial property. Adhering to its high-end, boutique positioning, the Jinmao Hotel has been investing in and operating hotels in Shanghai, Beijing, Sanya and other regions, enjoying strong brand recognition and a market leading position, and will continue to improve the operational efficiency of its properties and seek asset enhancement opportunities for further development. Jinmao Hotel's portfolio of hotels includes: Jin Mao Tower (Level 53-87 being Grand Hyatt Shanghai), Hilton Sanya Yalong Bay Resort & Spa, The Ritz-Carlton Sanya, Yalong Bay, The Westin Beijing Chaoyang, JW Marriott Hotel Shenzhen, Hyatt Regency Chongming, Renaissance Beijing Wangfujing Hotel, and Grand Hyatt Lijiang.

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