HONG KONG, Aug. 25, 2015 /PRNewswire/ -- Joy City Property Limited ("Joy City Property" or the "Company", HKEx Code: 0207) today announced its unaudited interim results for the six months ended 30 June 2015.
| Results Highlights: · Investment properties maintained a rapid growth in visitors and revenue - Six Joy City projects in operation recorded a total of approximately 54 million visitors, with rental income of approximately RMB867.8 million, representing a year-on-year growth of 14.5%, showcasing Joy City's strength and outstanding operation capabilities. · Stable performance in hotel operations - Despite the overall unfavorable market environment of the hotel industry, the hotel operations achieved good performance. Revenue amounted to approximately RMB595 million, representing a year-on-year growth of 15%. The influence from the Group's hotels in the regional market also continued to improve. · Continue to enrich its land bank - the Group obtained a piece of land located in Gongshu District, Hangzhou for the Joy City complex through acquisition. The additional land reserve was approximately 310,000 sqm, which effectively improved the sustainable development ability of the Group. |
During the reporting period, the Group has realized revenue of RMB2,224 million. The proportion of revenue from property and land development within the total revenue was 48.3%, reaching RMB1,074 million. Revenue from investment properties and hotel operations accounted for about 12.7% and 26.8% in total revenue respectively, of about RMB283 million and RMB595 million respectively. Property management and related services income accounted for about 6.5% in total revenue. Gross profit and gross profit margin were RMB1,309 million and 58.9% respectively. Profit for the period attributable to owners of the Company was RMB 596 million. Basic earnings per share were RMB0.049.
Mr. Zhou Zheng, Vice President of COFCO and Chairman of Joy City Property Limited said, "During the period under review, the Group's management team adhered to the core goal of continuous uplift of ROE with focus on its four principle segments, namely property investment, property development, hotel operations and property management and related services, under the principle annual operation approaches of "organizational optimization, refined management, efficiency improvement and value creation." From the perspective of overall results performance, in the first half of 2015, the operating results of all segments were stable, while project operation and construction progress were basically in line with expectation."
From the perspective of investment properties, during the period under review, the Group had a total of 14 investment property projects in cities such as Beijing, Shanghai, Hong Kong and Chengdu, including office buildings, retail properties and serviced apartments, and the overall operation was satisfactory. Six Joy City projects in operation recorded a total of approximately 54 million visitors and rental income of approximately RMB870 million, representing a growth of 11.3% and 14.5% as compared to the same period last year, respectively. In particular, Shenyang Joy City recorded a rental income of approximately RMB78.3 million triumphing after upgrade and Tianjin Joy City recorded a rental income of RMB147.6 million by boosting visitor growth via innovation, representing a year-on-year growth of approximately 27.0% and approximately 22.4% respectively. Amidst slowdown in domestic economy and loss of traction in consumption growth, Joy City projects managed to maintain a rapid growth in visitors and revenue, further showcasing their vivid strength and outstanding operation capabilities.
From the perspective of property development, as of 30 June 2015, the Group focused on the continued enhancement of competitiveness of the projects for sale and delivering quality residential projects. Properties launched in the period had a brand influence and sound brand name in local markets. Brilliant Villa project recorded a contracted amount of approximately RMB590 million in the first half of the year, which made it maintain its leading position in the regional market. Meanwhile, the Joy Street of Chengdu Joy City is currently the sole commercial property in sale among all Joy City projects, and its value was also well recognized by the market.
From the perspective of hotel operation, as of 30 June 2015, the Group had a total of approximately 3,079 guestrooms in its hotels, most of which are international high-end luxury hotels. Despite the overall unfavorable market environment of the hotel industry, the hotel management achieved good performance. Revenue amounted to approximately RMB595 million, representing a year-on-year growth of approximately 15%. The influence from the Group's hotels in the regional market also continued to improve.
From the perspective of property management and related services, the Group continued to adhere to its customer-oriented strategy and maintain its leading positions in the commercial property service industry. With refined management as well as implementation of energy saving and emission reduction at commercial properties, the Group continued to create value from management and services.
From the perspective of land bank, in addition to public tenders, the Group has also taken a proactive approach in acquiring lands through acquisitions, cooperation and mergers. It sought 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 actively enriching its land bank. In the first half of 2015, the Group has successfully acquired a piece of land located in Gongshu District, Hangzhou for the Joy City complex which increased the land bank of the Company by approximately 310,000 sqm.
From the perspective of financial capital, the Group consistently implemented prudent financial policies. As of 30 June 2015, the net interest-bearing debt to total equity ratio maintained at a level of 63.4%, down 1.8p.pt over same period of last year. In April 2015, the Group announced the competition of Acquisition and Rights Issue, which marked the further integration of commercial property asset platforms under COFCO Corporation. Joy City Property acquired quality commercial complexes and properties including Joy City through the transaction, which effectively improved the profitability and sustainable development of the Company, laying a solid foundation for further growth and development of Joy City.
Mr Zhou concluded that, "Looking forward, the Group will give full play to its own unique competitive advantage by maintaining the "two-wheel-drive business strategy of holding and selling properties" and adhering to the main development pipeline of developing mixed-use complexes under the brand of "Joy City." Leveraging on the great support of COFCO Corporation, the Group will further penetrate into the strategic cities and foster core products. With reformation
and innovation as its driving force, the Group will also reinforce its established strengths and develop new momentums, so as to continue to enhance its core competitiveness and bring Joy City Property into the new era of innovative development. Meanwhile, the Group will persevere with the spirit of "young, fashionable, trendy and quality" of the Joy City brand to lead the trend of new city lifestyle of China and the new direction for the development of the real estate industry. 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."
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.
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