- Contracted Sales and
GFA Increased Significantly
- Steady Growth in
Revenue
- Successful
Implementation of Development Strategy on Urban Renewal
- Forged New Business Driver
HONG KONG
SAR - Media
OutReach - 19 August 2021 - JY
Grandmark Holdings Limited ("JY Grandmark" or the "Company", which together with its
subsidiaries, is referred to as the "Group", stock code: 2231), a
property developer and operator and property management service provider based
in the People's Republic of China (the "PRC"), is pleased to announce the interim
results of the Company for the six months ended 30 June 2021 (the "Period").
JY Grandmark positions itself as an
"Eco-friendly and People-oriented Property Developer" and acquired land
reserves in strategic locations with abundant natural resources, rich culture
and potential for growth. The Group takes into account the natural and cultural
resources of its project site in the design of properties to develop homes and
communities that the Group considers to be truly liveable for buyers. This
accurate positioning differentiates the Group from other property developers in
the PRC.
During the Period, the
Group's revenue amounted to approximately RMB1,042.8 million (1H2020: RMB924.7 million),
representing a period-on-period increase of 12.8%. The Group's gross profit amounted
to RMB412.1 million (1H2020: RMB404.5 million), representing a period-on-period
growth of 1.9%. Core net profit amounted to RMB167.5 million (1H2020: RMB193.8 million),
representing a period-on-period decrease of 13.6%. Profit attributable to
owners of the Company amounted to RMB170.8 million(1H2020: RMB196.9 million), representing a period-on-period decrease of 13.3
%.
The Group's board of directors declared payment of an
interim dividend of RMB3.63 cents per ordinary share (1H2020:
RMB3.59 per ordinary share), which accounts for approximately 35% of the profit
attributable to owners of the Company.
New Projects Meet
Market Demand, Boosting Sales Significantly
During the first
half year of 2021, the Group's properties across China recorded approximately
197,000 sq.m. of contracted sales GFA, representing a significant year-on-year
growth of 97.0%, and approximately RMB2,486.4 million of contracted sales,
representing a significant year-on-year growth of 128.2%. The growth was
attributable to the two new projects launched by the Group in the market, first
phase of both projects boosted the overall sales performance.
The Group targeted
urban residents of rigid demand and highlighted transmit-oriented development
and houses of high utilization rate to construct the new
project located in Zengcheng Guangzhou, Jinke JY Grand Garden (金科景業雍景園). It was the
first key project for the Group's layout in eastern Guangzhou, all the units of
the project were sold out on the debut day of the first phase with the
single-day order amount reaching RMB350 million. Another new project, JY Logan
Jiuyun Mansion (景業龍光玖雲府) in
Liuhe Districtof Nanjing, also had the superior location of core area in the
downtown and enjoyed comprehensive facilities of metro, parks, commercial
centers and medical services. In the first round of launch, the project offered
fine decoration residence of 115-140 sq.m. floor area per unit to first-time
home buyers and up-graders, and recorded satisfactory sales performance, with
the single-day order amount reaching RMB454 million.
Market Opportunity
Arise for "Urban Renewal Business"
The Group believed
that the urban renewal business based on city planning and redevelopment will remain
on an upward trend, and the Group will develop the urban renewal business as an
important driver of land bank expansion and business growth. Currently, the
Group takes the Guangdong-Hong Kong-Macao Greater Bay Area as the core region
to actively explore the development of quality urban renewal projects.
In April 2021, the
first urban renewal project the Group participated in, Zhujiang Village
Redevelopment Project in Huangpu District of Guangzhou, was inaugurated.
Located in Huangpu District of Guangzhou, a district where the government
offered strong policy support to the urban renewal, the project is at the core
position of the eastern Guangzhou's urban development, has a total of
approximately 785,800 sq.m. floor area and approximately 265,000 sq.m.
financing area within the overall redevelopment scope, and, expectedly, will
stimulate the Group's business.
While acquiring the
land of core position in the Group's first urban renewal project of smooth
progress, the Group will actively promote the materialisation of the other ten
projects under research, further leverage its local advantages, consolidate the
professional advantages of cooperation partners, and acquire property projects
in core areas within reasonable costs, so as to boost the balanced growth of
sales volume and operating profit in the future.
Diversified Business Portfolio Combined with the
Concept of "Eco-friendly and People oriented Property" to Exploit Long-Term
Advantages
The Group
continuously developed its long-term advantages in home upgrading and vacation
property sectors and market segments. During the
first half year of 2021, the Company further developed target markets by
seizing the right marketing opportunities, applying the strategy of "internal
consolidation and external expansion" and promoting projects to "go out", and
stimulated the sales of home upgrading and vacation property projects in
Guangdong, Hainan and Yunnan provinces by improving the community experience
and the added value of products with the in-depth research of residents'
demands and the innovative idea of creating the community culture. JY Uniworld
in Zhaoqing and JY Gaoligong Town in Yunnan province achieved improvement in
both sales and brand reputation, and brought strong branding effect to the
Group.
Based on the
development concept of "Eco-friendly and People-oriented Property", the Group
expanded the layout of core regions and urban projects in 2021, enriched the
product portfolio and offered the market diversified choices. It also broadened
the horizon and further developed the market to improve the capital turnover
efficiency.
Sound
Financial Position Gained Recognition in the Capital Market
The Group
continuously perfecting its financial structure and further broadening its
financials channels, its stable financial situation and diversified financing
channels enable the Group to achieve sustainable and high-quality development
under the tightening industry background. In February 2021, the Company
successfully issued 7.5% senior notes in an aggregate principal amount of
US$155 million, including completion of the exchange offer of the existing
senior notes amounting to US$137.5 million.
Mr. Michael Chan, Chairman and Executive Director
of JY Grandmark said, "In the first half of
2021, a series of policies including "three red lines" and "centralised land
supply" have been introduced in China with the aim of achieving stable land
prices, stable home prices and stable price expectations, a new long-term
property market mechanism has gradually taken shape, that regulates the supply
side, the demand side and the financing side, maintains stability in the market
and at the same time raises the requirements of the financing, development and
capital position of real estate companies.
In such market environment, while sticking to the
principle of "stability and progress", the Group continued to meet the
requirements of "three red lines" in the first half of 2021, promoted targeted
marketing actions in different markets, and accelerated the sales conversion of
existing land reserves. It further expanded the reserve of quality lands
through diversified channels, actively sought business breakthrough, enhanced
the brand effect by cooperating with strong enterprises, took effective
measures to advance the upgrading of all business segments on the basis of
improving the property business, and ultimately achieved the objective of
quality improvement and accelerating the speed of development.
Looking into the future, the Group will further
adjust and improve operation strategies, and ensure reasonable economic trend
prediction and market forecast from the macro perspective; from its own
perspective, it will stick to the prudent financial strategy, focus on cash
flow management, improve the capital turnover efficiency and lower the
leverage. In the meantime, the Group will refine the land strategy, improve the
product strategy and innovate the business strategy, to build a good brand
reputation and maintain the long-term development objective of "high growth,
high quality and high profit".
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