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Joy City Property Announces 2015 Annual Results

Focused on Customer Value Enhancement through Continuous Innovation on Products and Services
Joy City Property
2016-03-21 20:58 2416

HONG KONG, March 21, 2016 /PRNewswire/ --

Results Highlights:

  • Initiated 2 new Joy City projects -- Following the grand opening of Shanghai Joy City Phase 2 on 19 December 2015, the first cantilever Ferris wheel erected on the rooftop in China debuted. Chengdu Joy City, the first park that offers open space, entertainment and shopping experience in China, grandly opened on 24 December, covering four major retail formats, namely shopping, entertainment, catering and services.
  • Improved high-end quality and high-end customer value experience for property development -- The Group's property development business recorded revenue from sales of RMB3,165.5 million in 2015, representing a year-on-year increase of 79.2%.
  • Strived the exploration of the management and operation of "Properties + Internet" -- Through research and development of EISS intelligent management and monitoring systems, the Group put them into practice in all commercial properties in an effort to operate in an energy-saving and more efficient property management manner.
  • Developed themed street districts -- Created various themed street districts including Joy Yard, MORE FUN 166, Gollum College, IF Street and NO 5 PARK to enhance experience-driven consumption. 

Joy City Property Limited("Joy City Property" or the "Company", HKEx Code: 0207)today announced its audited annual results for the year ended 31 December 2015.

During the year under review, the Group has realized operation income of RMB5,374.2 million. Among which, rental income from investment properties reached RMB2,184.0 million, accounted for 40.7% of the total revenue. Revenue from properties development and sales and revenue from land development was RMB1,506.5 million and accounted for 28.0% of the total revenue, revenue from hotel operations accounted for 21.2%, respectively of the total revenue, which was RMB1,139.4 million. Revenue from property management and other related services accounted for 10.1% of the total revenue. Gross profit and gross profit margin were RMB2,894.6 million and 53.9%. Profit attributable to owners of the Company was RMB725.7 million. Basic earnings per share were RMB0.053.

Mr. Zhou Zheng, Vice President of COFCO and Chairman and General Manager of Joy City Property Limited said, "During the year under review, the Group adhered to its strategic development direction, focused on the nature of the business and set its sight on customer value enhancement through continuous innovation on products and services. Leveraging good operation momentum, the Group achieved outstanding results and positioned in the forefront of the commercial real estate sector. In 2015, the Group cautiously observed market situation and proactively conducted business model innovation to lay a solid foundation for Joy City's development. The Group's four core business segments, namely property investment, property development, hotel operations as well as property management and related services have achieved stable results performance."

From the perspective of investment properties, by the end of 2015, the Group had 7 Joy City projects and four leased properties in Beijing, Shanghai and Hong Kong. Its Hangzhou Joy City project was under construction and its operation scale was enlarging. Shanghai Joy City had its grand opening on 19 December, bringing the first cantilever Ferris Wheel to be erected on the rooftop in China and marking a romantic landmark for dating and gathering among youngsters. On 24 December, Chengdu Joy City grandly opened and attracted a substantial foot traffic from visitors leveraging its picturesque view.

In 2015, Joy City set its sight on customer value by establishing a complete set of customer identification systems and developing 5 types of street district offerings of their own distinctive characteristics, which became the drivers for more customers and business. The Group also rolled out Taste Good, the first O2O member experience platform to address customers' demand, explore customer value and unleash potential customer value by starting from the basics like members management to organization of fans group. Seven Joy Cities recorded a retail rental income of RMB1,731.0 million for the year, representing year-on-year growths of 14.0%.

Leveraging its profound operating experience and full-fledged business management systems, the Company proactive explores the development model of growing investment in light assets. In December 2015, it marked the grand opening of Tianjin He Ping Joy City, which serves as the first shopping mall with entrusted management and brands. It highlights the first stride taken by Joy City Property Limited toward the asset-light business expansion.

From the perspective of property development, during the year under review, the Group kept on with the improvement on high-end quality and high-end customer value experience and was well received by the market. The Group's property development business recorded revenue from sales of RMB3,165.5 million, representing a year-on-year increase of 79.2% during the year under review. Joy Mansion One of COFCO Shanghai opened for sale in 2015. Its total contracted sales reached RMB1.38 billion on the opening day, which broke the opening sales record for new luxury properties with value of RMB20 million.

From the perspective of hotel operations, the Group's premium hotel properties are primarily located in the prime area in Beijing city center and the waterfront of Yalong Bay in Sanya. The hotels are commissioned to be managed by prestigious international hotel management companies such as Starwood Group and MGM and operated under the first class brands including St.Regis and W. During the year under review, the Group's hotel properties still outperformed the market despite the increased pressure on general hotel operation. Through active yet effective revenue management and price sales strategy and improving management, MGM Grand recorded a significant growth in results, ranking top among the region. W Beijing-Chang'an undertook a number of celebrity and commercial events, which received overwhelming market responses and became the popular destination of the city.

From the perspective of property management and related services, the Group strived the exploration of the management and operation of "Properties + Internet" through research and development of EISS intelligent management and monitoring systems, and put them into practice in all commercial properties in an effort to operate in an energy-saving and more efficient property management manner.

From the perspective of land bank, while valuing conventional development, the Group also reinforced unconventional practices of timely acquisition, cooperation and equity participation. It sought opportunities to attain land plots for high quality complexes or land plots of mixed natures that include certain proportion for commercial use, with a view to further enriching its quality land bank. During the year under review, the Group newly acquired three new land parcels, including Qiantan Project, Hangzhou Joy City Project and Wuhou District Project in Chengdu.

From the perspective of financial capital, the Group consistently implemented prudent financial policies. As of 31 December 2015, the net debt to total equity ratio was 63.3%.Finance costs continued to decline. For the whole year of 2015, the weighted average finance costs of the interest bearing debts of the Group amounted to 5.58%.

Mr Zhou concluded, "Looking forward, the Group will maintain the two-wheel-drive business strategy of "holding and selling properties". Leveraging on the great support of COFCO Corporation and the extensive experience of our management and jumping on the bandwagon of the 13th Five Year Plan of China, the Group strives for self-development from strength to strength to create value for its shareholders, customers and partners through asset structure optimization and asset quality improvement. The Group will persevere 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 help the development of cities in China and become a leading complex and commercial property developer in the PRC."

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About Joy City Property Limited

Joy City Property is a commercial property listing company under COFCO Corporation, business of which covering commercial property, residential property, hotel, tourism property and regional comprehensive development. With the enterprise commission of "providing premium landscaping living environment and high quality service, leading a modern and fashion life style, and gradually became a brand property leader with sustainable development capability in China", the Company successfully built an urban complex under the brand of Joy City with the principle concept of " juvenility, fashion, modern and taste", and developed various products, including the top-level scenery series integrated with excellent natural resources and buildings, international living community series gathering international life styles and Chinese spirit, urban boutique resident series facing to city elites, top-level high-end hotels with international influence, such as MGM Grand Sanya, Regis Sanya, Waldorf Astoria Beijing, Beijing W Hotel, and the National Tourist Holiday Resort in Yalong gulf, Sanya with the reputation of "Oriental Hawaii", which formed a gorgeous property territory with rich formats, perfected product categories and balanced capital structure.

Source: Joy City Property
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