Jiayuan International announces 2018 Interim Results

Net Profit surged by 88% and reached RMB980 million

New Record of Contracted Sales reached RMB7.357 billion

HONG KONG, Aug. 29, 2018 /PRNewswire/ --

Financial Highlights:

20181H Results Highlights:

• Contracted sales increased by 90% to approximately RMB7.357 billion and contracted sales area increased by 54% to approximately 719,000 sq.m. for the six months ended 30 June 2018 as compared to the corresponding period in 2017.
• As at 30 June 2018, the Group's land reserve was approximately 9.8 million sq.m.
• Revenue for the six months ended 30 June 2018 was approximately RMB4,130 million, representing an increase of approximately RMB1,222 million or 42% as compared to the corresponding period in 2017.
• The Net profit of the Group for the six months ended 30 June 2018 amounted to approximately RMB979 million, representing an increase of approximately RMB457 million or 88% as compared to the corresponding period in 2017.
• Basic earnings per share was RMB39.70 cents for the six months ended 30 June 2018, representing an increase of approximately 48% as compared with approximately RMB26.91 cents in the corresponding period in 2017.
• Declared an interim dividend with scrip option of HK10 cents per share (for the six months ended 30 June 2017: Nil).
• Through merger and acquisition, tender and bidding in the public market, joint development and so on. The Group acquired certain premium projects during the period. Examples included the acquisition of three property development projects in Hong Kong and the upgrade and renovation of Jiangmen Jiayuan Didu Hot Spring project. The Group has also obtained certain premium projects in Jiangsu Province and Shanghai during the period. Meanwhile, the Group has succeeded in expanding its business coverage to key provincial capital cities, such as Guiyang and Urumqi and made its first attempt to enter Cambodia.

Jiayuan International Group Limited ("Jiayuan International" or the "Group"; SEHK stock code: 02768), an established property developer of both large-scale residential and integrated commercial complex projects in China, announced today its interim results for the six months ended 30 June 2018 ("the Period").

Mr. Shum Tin Ching, Chairman of Jiayuan International (2nd from left), Mr. Huang Fuqing, Vice Chairman & Executive Director (1st from left), Ms. Cheuk Hiu Nam, Chief Executive Officer & Executive Director (2nd from right), Mr. Wong Kwan Long (1st from right), Financial Director, management of Jiayuan International Group Limited attended the interim results presentation.

During the period by precisely capturing the cities with strong growth prospects and adopting a proactive project launch approach, the Group sustained a steady growth in property sales in second-tier and third-tier cities in the first half of 2018. For the Period, revenue was approximately RMB4,130 million, representing an increase of approximately 42% as compared to the corresponding period in 2017. Profit attributable to the owners of the Company increased to approximately RMB973 million representing an increase of approximately 89% as compared of the corresponding period in 2017. Basic earnings per share was 39.70 cents, representing an increase of approximately 48% as compared with approximately RMB 26.91cents in the corresponding period in 2017. The Board declared an interim dividend of HK 10 cents for the period (for six months ended 30 June 2017: Nil).

In the first half of 2018, the central government of the People's Republic of China ("PRC") introduced a new round of city-specific measures to regulate the property market, which led to a slowdown in property market growth and more stable property prices in first-tier cities. However, both the sale volume and sale prices of residential properties surged in second- and third-tier cities mainly because of the demand for housing continued to spill over from overheated markets in first-tier cities since 2017. The surge was also driven by the demand for trading up to better housing as well. During the Period, the Group 's contracted sales surged by approximately 90% to RMB7.357 billion. Contracted sales area amounted to approximately 719,400 sq.m., representing a period-on-period increase of approximately 54%. The average contracted sales price was RMB10,226 per sq.m., representing an increase of 23% compared with RMB 8,301 per sq.m. in the same period last year.

Revenue from sales of properties for the six months ended 30 June 2018 was approximately RMB4.130 billion, representing a period-on-period increase of approximately of 42%. The increase was mainly due to the delivery of properties pre-sold under Yangzhou Jiayuan Centurial City upon completion. In addition, the Group's projects, including residential and commercial complexes, aim to provide a one-stop shopping experience that caters for the daily needs of residents and those of the wider community. During the period, the monthly rental income from the Group's investment properties increased. As a result, revenue generated from the investment properties increased to approximately RMB16 million. The Group's gross profit increased by approximately 35% year on year to approximately RMB1.370 billion.

In order to implement its strategy for developing itself into a bigger and stronger company, the Group stepped up its effort to carry out mergers and acquisitions of property projects. During the first half of 2018, the Group further expanded its land reserve in the Guangdong-Hong Kong-Macao Bay Area by acquiring 12 property projects through mergers and acquisitions, tenders, auctions and bids for lands in the listings posted by the local government and partnerships for joint property development, etc. For example, the Group acquired 3 Hong Kong property projects; and it also invested in the upgrading and renovation of Jiangmen Jiayuan Didu Hot Spring project. In addition, the Group remains focused on the major cities in Yangtze River Delta, and obtained certain premium projects in Jiangsu province and Shanghai during the year. Meanwhile, the Group succeeded in extending its market coverage to key provincial capital cities, including Guiyang and Urumqi. The Group also entered the markets of the countries and regions covered by China's Belt and Road Initiative. For instance, it made its first foray into Cambodia, marking a milestone in the Group's effort to internationalize its business. As at 30 June 2018, the Group's land bank was approximately 9.8 million sq.m. in site area, and its property portfolio comprised 41 properties in various major cities in the PRC, comprising 29 residents complex and 12 commercial complex.

In order to bolster its financial strength, the Group issued senior notes in the principal amount of US$350 million, beginning interest at a fixed rate of 8.125% in the first half of 2018 and recorded oversubscribed of more than US$1 billion. As at 30 June 2018, the bank balances and cash and restricted/pledged bank deposits of the Group were approximately RMB9.984 billion, representing an increase of approximately 49% compared with the approximately RMB6.717 billion as at 31 December 2017.

Looking ahead to the future, the Group believes that there will be more opportunities for mergers and acquisitions of property projects, Steady financial situation will help the Group to seize more market resources. The Group will continue with a prudent financial policy, speed up contract sales and collection of cash from property sales, ensure the quality of construction and employees' safety, and strictly control various expenses to ensure good performance in terms of operating cash flow and return on investment.

Founder and Chairman of Jiayuan International - Mr. Shum Tin Ching

Mr. Shum Tin Ching, Founder and Chairman of Jiayuan International said, "In the second half of 2018, the Group expects China will maintain steady economic growth, and property prices to stabilize gradually as the central government of the PRC continues to increase land supply and to implement its measures to regulate the property market. The Group will continue to work towards the goal of becoming a bigger and stronger company. It will grasp the opportunities for development and enhance its competitiveness in each of its businesses in the value chain of the property sector. The Group will continue to pursue a strategy for sustainable development in order to maximize shareholder value."

About Jiayuan International

Jiayuan International is an established property developer of large-scale residential and integrated commercial complex projects in different major cities in the People's Republic of China ("PRC"). With over 20 years of experience in property development, the Group develops property projects through comprehensive planning, meticulous quality control, sophisticated operating systems and experienced professional teams to meet the needs of different regions and strengthen the Group's brand image. As of June 30, 2018, the Group has a portfolio of more than 40 property projects in China, covering the cities of Nanjing, Yangzhou, Nantong, Taizhou, Zhenjiang and Suzhou. Since 2016, the Group has taken the lead in entering Guangdong-Hong Kong-Macao Greater Bay Area, and has successively obtained a number of quality projects in Shenzhen, Jiangmen and Macau. In 2018, it established a joint venture company in Hong Kong to formally enter the Hong Kong real estate market; and purchased the quality properties of Shanghai from Mr. Shum Tin Ching, Chairman of the Group, thus enhancing its brand influence in the Yangtze River Delta Region. In addition, the Group also succeeded in expanding its business coverage to key provincial capital cities, including Guiyang and Urumqi. The Group also ventured into countries and regions along the "Belt and Road" initiative, such as acquiring fine and parcels in Cambodia, signifying a new level in the Group's international development.

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