Jiayuan International Announces Annual Results 2016

HONG KONG, March 30, 2017 /PRNewswire/ --

Financial Highlights:

Operational Highlights:

• Achieved contracted sales of approximately RMB4,648 million and contracted GFA of 460,091 sq.m, representing an increase of 21.6% and 21.5% respectively, compared to that in 2015
• Bank balances and cash amounted to RMB977 million
• Acquired land parcels: 6 via M&A, 1 via public land auction. As of 31 December 2016, the Group had a land reserve of 6.6 million sq.m. and extended footprint to Shenzhen
• Became a constituent stock of Hang Seng Composite Small Cap Index, MSCI China Small Cap Index, and Hang Seng Stock Connect Hong Kong Index Series and tradable under the scheme of Shenzhen-Hong Kong Stock Connect
• Raised USD100 million through a debut issuance of US dollar bonds successfully
• Flagship project, Zijin Mansion, won the "Nanjing Civilised Site & Quality Structural Engineering 2016" award from Nanjing Construction Committee

Jiayuan International Group Limited ("Jiayuan International" or the "Company" and, together with its subsidiaries, the "Group"; stock code: 2768), one of China's established property developers of both large-scale residential and integrated commercial complex projects, today announced its annual results for the year ended 31 December 2016.

Revenue of the Group mainly consists of revenue derived from (i) property development and (ii) property investment. During 2016, the Company recorded revenue of RMB 3,702 million, representing an increase of 97.7% compared to 2015. Profit and total comprehensive income for the year attributable to owners of the Company amounted to RMB811.2 million, representing an increase of 188.9%. Basic earnings per share was RMB 45.86 cents, the Board has not recommended any distribution of final dividend.

In 2016, revenue generated from property development amounted to RMB3,681 million, up 99.5% year-on-year. The increase was mainly due to the delivery of properties presold under Zijin Mansion project upon its first stage of completion. The Group achieved contracted sales of RMB4,648 million, representing a year-on-year increase of 21.6%. Contracted GFA sold was approximately 460,000 sq.m., representing a year-on-year increase of 21.5% and a historical compound annual growth rate of 36.7% between 2012 and 2016. Our contracted sales target for 2017 is no less than an estimated increase of 25% year-on-year.

Revenue generated from property investment amounted to RMB20.3 million. The Group's gross profit amounted to RMB1,263 million, up 217.6% year-on-year. Gross profit margin improved from 21.3% to 34.1%.

While principally undertaking property development in the Yangtze River Delta region, the Group has also extended its footprint to Shenzhen. During the financial year, the Group acquired six land parcels via acquisition of enterprises with land resources by way of mergers and acquisitions: one in Luohu, Shenzhen; one in Yangzhou, Jiangsu and four in Nantong, Jiangsu. The completion of these transactions during the year is a testament to Jiayuan's strong resource management and execution capabilities. In addition, the Group acquired one land parcel via public land auction, replenishing the Group's land reserve by an additional gross floor area ("GFA") of approximately 1.81 million sq.m, along with the land parcels acquired via M&A. As of 31 December 2016, the Group has 25 property development projects in Jiangsu and Guangdong Province and a land reserve of over 6.63 million sq. m.

Since its listing on the main board of HKEX on 8 March 2016, the Group became a constituent stock of benchmark indices, including Hang Seng Composite Small Cap Index, MSCI China Small Cap Index, and Hang Seng Stock Connect Hong Kong Index Series. The Group also successfully raised USD100 million by its debut issuance of US dollar bonds in September 2016, gaining access to financing channels in China, Hong Kong and international capital markets to improve capital structure and mitigate financing costs.

The Group believes China's housing loan policy is on its way to stability. We are hopeful that China's inventory reduction and other macro-economic policies will get the property market back on track. Going forward, the Group will, based on its financial position and market conditions, maintain an appropriate scale of investment in Jiangsu and strategically expand to the Pearl River Delta region through acquisition of enterprises with land resources by way of mergers and acquisitions. The Group also plans to participation in the redevelopment of shanty-towns and urban renewal projects, thereby increasing its land reserves through multiple channels in order to support stable growth in this 13th Five-Year Plan period.

The Group will position Hong Kong as an oversea business development center, and develop quality projects in surrounding countries and regions in order to increase its quality land reserves, thereby achieving parallel development in domestic and overseas markets and capturing the development opportunities in the global real estate market.

Mr. Shum Tin Ching, Chairman of Jiayuan International Group Limited, said, "Our performance in 2016 was encouraging, thanks to past operation and investment strategies. Despite an outlook of domestic and foreign social-economic complexities in 2017, we will preserve our unique competitiveness by leveraging on our solid foundation, visionary development strategy, industry expertise and our long-time commitment to 'quality first.'"

About Jiayuan International

Jiayuan International is an established property developer of large-scale residential complex projects and integrated commercial complex projects in different major cities in the PRC. With over 20 years of experience in property development, The Group provide different property projects through comprehensive planning, high quality control, sophisticated operating systems and experienced professional teams to meet the needs of different regions and strengthen the Group's brand image. The Group has a portfolio of 25 property development projects in the PRC, including 20 residential complex projects and 5 commercial complex projects covered Changzhou, Nantong, Zhenjiang, Nanjing, Yangzhou, Taizhou, Taixing, Suqian and Siyang, as at 31 December 2016. The Group has successfully entered into the market of the Pearl River Delta, extending the business footprint to the major cities in Guangdong Province including Shenzhen.