Jiayuan International Announces Annual Results 2017

HONG KONG, March 29, 2018 /PRNewswire/ --

Financial Highlights:

2017 Operational Highlights:

• Contracted sales increased by 123.1% to approximately RMB10.37 billion and sold gross floor area ("GFA") under contracts grew by 155.7% to 1,176,651 sq.m. in 2017.
• Through mergers, acquisitions and bidding on the open market, the Group acquired 7 quality projects in the year. As at 31 December 2017, the land reserve was 7.1 million sq.m. which also represented the Group's success in extending its footprint to Shenzhen and Macau.
• The Group raised funds through two top-up placements during the year to boost financial strength and would use the proceeds to acquire lands.
• The Group's bank balances and cash and restricted/pledged bank deposits increased by 374.2% to approximately RMB6.72 billion as at the end of 2017.

Jiayuan International Group Limited ("Jiayuan International" or the "Group", SEHK stock code: 2768HK), China's established property developer of both large-scale residential and integrated commercial complex projects, announced its annual results for the year ended 31 December 2017 (the "Year").

During the Year, the Group achieved good sales results by adapting itself to changes in the market. It did so by investing actively in lands. As at 31 December 2017, revenue of the Group increased by 87.7% to RMB6.95 billion. Profit attributable to owners of the Company surged by 58.3% to RMB1.28 billion. Earnings per share were 62.35 RMB cents. The Board recommended a final dividend of 19 HK cents (2016: Nil).

In 2017, China's property market was generally affected by the government measures that encompassed restrictions on purchase and sales of properties, price controls and the tightening of credit in the key cities. Although the policy has curbed the property price hikes effectively in such key cities, part of the housing demand spilled into third- and fourth-tier cities nearby, driving up the average selling prices and transaction volume there. Throughout 2017, the transaction volume and average selling price of commodity housing in China continued to rise moderately. Adhering to its right development strategy and long-term business philosophy that "Quality is above all else", the Group was able to record a 123.1% increase in contracted sales to a record high of RMB10.37 billion. Gross floor area sold under contracts surged by 155.7% to approximately 1,177,000 sq.m. Average contracted selling price was RMB8,813 per square metre.

During the Year, revenue derived from property development increased by 88.1% to RMB6.92 billion. The increase was mainly due to the delivery of properties presold under Zijin Mansion project upon completion in 2017. On the other hand, due to the increase in monthly rental income generated from leasing contracts of the investment properties, the revenue generated from investment properties increased by 22.5% to approximately RMB24.9 million during the year. Gross profit increased by approximately 89.8% to approximately RMB2.399 billion, while gross profit margin increased to 34.5% in 2017 from the 34.1% in 2016.

To maintain steady growth in contracted sales, the Group completed a number of significant transactions in 2017 by way of mergers, acquisitions, tenders, auctions and bids for lands in the listings posted by the government. The Group successfully acquired three residential property projects located in Hanjiang District and Guangling District, Yangzhou and the core district of Suzhou, as well as a parcel of land for residential and commercial property development in Suqian through tenders, auctions and bids for lands in the listings posted by the government. In addition, the Group also established its foothold in Macau's real estate market by acquiring two adjacent land parcels of good quality located at Taipa District, further expanding the Group's business presence in the Guangdong-Hong Kong-Macau Greater Bay Area. As at 31 December 2017, the Group's property portfolio comprised 32 properties in various major cities in China, with land reserve of 7.0 million sq.m., covering most of the cities of Jiangsu province.

Having anticipated interest rate rises, the Group raised funds through two share placements in 2017 to consolidate its financial position. Last June, the Group raised RMB1.02 billion through a top-up placement of approximately 353 million shares. Last December, the Group raised RMB1.175 billion through a top-up placement of 232 million shares. The funds raised will be used to boost financial strength and used for increasing a land reserves. Meanwhile, in 2017, the Company issued senior secured notes with a principal amount of US$300 million due in November 2018. As at 31 December 2017, the Group had an aggregate of pledged/restricted bank deposits and bank balances and cash of approximately RMB6.717 billion, representing an increase of approximately 374.2% compared with that as at 31 December 2016.

As the "Guangdong-Hong Kong-Macau Greater Bay Area" enjoyed the advantages of "One Country, Two Systems", location, and society and environment that are geared to open economy, it has the basic conditions for developing itself into a first-rate bay area. The "Guangdong-Hong Kong-Macau Greater Bay Area" will become a vital testing ground for China's plan for building world-class city clusters in the future. The Group will actively respond to the Chinese government's policy and will adapt to the market changes caused by the macroeconomic regulation and control measures. At the same time, the Group will also tap customers' demand so as to foster the growth of contracted sales.

Mr. Shum Tin Ching, Chairman of Jiayuan International Group Limited said, "The Group achieved encouraging results for the year. This reflects the satisfactory results of its strategies for operation and investment. In addition to our endeavors to further develop the property market in Jiangsu province, to expand our footprint to other major provinces and cities, and to develop the quality projects in Guangdong-Hong Kong-Macau Greater Bay Area, we will seek to develop promising, quality property projects in countries covered by China's Belt and Road Initiative such as Vietnam, Cambodia and Australia in 2018. We will try to increase our quality land reserves in overseas countries gradually so that we can seize the opportunities in the global real estate market and maximize the 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 at 31 December 2017, the Group has a portfolio of 32 property projects in the PRC, including 24 residential complex projects and 8 commercial complex projects covering cities such as Nanjing, Changzhou, Yangzhou, Taizhou, Suqian, Nantong, Zhenjiang, and Suzhou. Jiayuan International first successfully entered into the market of the Guangdong Province and acquired 2 quality projects in Shenzhen in 2016. The Group has also successfully gained a foothold in the market of Macau by acquiring a prime site in 2017, thus enhancing its brand influence in the Guangdong-Hong Kong-Macau Greater Bay Area.