JY Grandmark’s 2020 contracted sales increase by 13.1% y-o-y to approximately RMB3,523.6 million

Manifest Advantage of “Eco-friendly and People-oriented Property”

Contracted Sales Grow against the Market Trend  

Actively Expand Land Bank and Seize Opportunities on Urban Renewal

 

HONG KONG SAR – Media
OutReach – 25 March 2021 – JY Grandmark Holdings Limited, a property developer, operator and
property management service provider based in the People’s Republic of China,
is pleased to announce its annual results for the year ended 31 December 2020
(the “Year”).

 

The Group 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 Year, the Group’s revenue amounted to RMB2,347.1 million
(2019: RMB2,402.8 million), representing a year-on-year(“yoy”) decrease of
2.3%. The Group’s annual profit amounted to RMB478.4 million (2019: RMB494.4
million), representing a decrease of 3.3% yoy. The Group’s gross profit amounted
to RMB912.7 million (2019: RMB1,144.2 million), representing a decrease of 20.2%
yoy. Core net profit amounted to RMB427.3 million (2019: RMB446.9 million),
representing a decrease of 4.4% yoy. Profit attributable to shareholders amounted
to RMB485.2 million (2019: RMB501.5 million), representing a decrease of 3.3%
yoy.

 

Position
as an “Eco-friendly and People-oriented Property Developer” favored by the
market Contracted sales grew against the market trend

In 2020,
the Group achieved positive growths in terms of development area, sales area
and sales. The aggregated contracted sales of the Group amounted to
approximately RMB3,523.6 million, representing a growth of 13.1% yoy as
compared to RMB3,116.3 million in 2019. The aggregated sales area was
approximately 351,000 sq.m. ,representing an increase of 38.7% yoy as compared
to approximately 253,000 sq.m. in the previous year.

 

Due to
the epidemic, projects of environment improvement and living space improvement
were sought after, with five projects including JY Uniworld (景業壹方天地) in Zhaoqing, JY Gaoligong Town (景業高黎貢小鎮) in Tengchong, JY Grand Garden(景業雍景園) in Qingyuan, JY
Mountain Lake Gulf(景業山湖灣) in
Zhuzhou and JY Hot Spring Villas(景業瓏泉灣) in Conghua recorded satisfactory subscription results. JY Egret Bay (景業白鷺洲) located in Lingao County, featuring vacation
products, won active subscriptions from those who wanted home upgrading and
recorded ideal transactions. It verifies the correct prediction and the
competitive advantages of JY Grandmark regarding market layout and product
strategy.

 

Increased
Land Bank to Accelerate Geographic Deployment

In 2020,
the Group also actively expanded the land bank and acquired more high-quality
lands in the existing markets with established brand effect. In the meantime,
the Group focused on Yangtze River Delta, provincial capitals in central and
western China and hotspot cities to seek opportunities. Throughout the year,
the Group acquired a total of 12 lands via bidding in three hotspot provinces,
Guangdong, Yunnan and Jiangsu, adding 1,141,000 sq. m. to the reserve
development area. In the investment of lands acquired, the Group adopted the
cooperation model for some projects and developed the projects in collaboration
with strong real estate enterprises to improve the overall benefit. As at 31
December 2020, the total gross floor area of the Group’s land reserves reached
approximately 4 million sq.m..

 

Good
performance on operational indicators and credit rating gained recognition from
the capital market

With the
good performance of operational indicators and credit rating, the Group won the
recognition of the capital market and further developed the financing and
credit channels. In March 2020, the Group successfully issued US$150 million of
senior notes with the coupon rate of 7.5%. In December 2020, the Group entered
into a facilities agreement of HK$734 million with certain financial
institutions. As of 31 December 2020, net gearing ratio was at an industry-low
level of 16.9%, decreased by 30.2 percentage points from 47.1% as of 31
December 2019. The Group will continue to optimise the asset-debt structure and
maintain adequate liquidity in the long-run.

 

Property
management recorded strong operational indicators

During
the Year, Zhuodu Property (卓都物業), the
property management arm of the Group, recorded strong operational indicators:
the chargeable area under management reaching 662,400 sq.m., representing an
increase of over 210% yoy; the revenue reaching approximately RMB18.3 million,
representing a growth of approximately 27.1% yoy. What is worth noticing is
that in addition to the basic property management fees, approximately 30% of
the revenue of the property management arm were sourced from other operational
businesses, and innovative businesses will also become the revenue growth
drivers that Zhuodu Property will focus to develop.

 

Hotel
operations actively developed the market

Two Just
Stay hotels seized the opportunity of stable epidemic development and
consumption release, launched promotion activities in line with the trend and
actively developed the market, thereby ushering in the “peak season” with high
occupancy and recovering the operational loss caused by the pandemic. In 2020,
Just Stay Hotel (廣州卓思道酒店) and Just Stay Resort (從化卓思道溫泉度假酒店) recorded an aggregate revenue of about RMB61.4
million and the operating results remained stable.

 

Strengthening
urban renewal business with target land bank of 4 million sq.m.

Policies
will open channels for such businesses as urban renewal. At present, the Group is actively studying the
feasibility of several urban renewal projects, such as the core areas of
Guangzhou and Foshan. The overall planning area is approximately 4 million
sq.m., which is planned to be gradually converted in the future, thereby bringing
rapid growth to the land reserve and results of the Group.

 

Mr. Michael Chan, Chairman and Executive Director
of JY Grandmark said, “In 2020, the world’s economy has slowed down
due to the impact of COVID-19. Amid the pandemic, China’s economy witnessed a
turnaround and recorded a growth over the year, bringing a positive signal and
confidence to the recovery of all sectors and the improvement of business
environment. The Company responded promptly to the epidemic, strictly followed
the government’s instructions to implement epidemic prevention and control and
realised safe resumption of work. It also leveraged its core advantages. The Group
sprinted to the business performance objectives with collective wisdom and
concerted efforts, united to recover from the impact of COVID-19 and achieved a
robust growth.”

 

“The Group
anticipates that the overall domestic property market will trend positive in
2021: on the one hand, demands of objective nature in the property market will
be further released as the consumption recovers, which will stimulate the sales
volume; on the other hand, policies will open channels for such businesses as
urban renewal, and property investment and development will embrace new
opportunities and growth points. Furthermore, new turning points emerge in the
consumption market after the epidemic, with the focus on location and price
changing to the focus on integrated experience that covers multiple aspects
including products, supporting facilities and property services. This change
will bring opportunities to the Group’s position as an ‘Eco-friendly and People-oriented Property
Developer’.”

 

“Looking
into the future, the Group will seize the policy opportunities and follow the
process of city planning and urbanisation to develop the urban renewal business
in regions of high conversion and growth potential. Based on the business
strategy of diversified development, the Group will strengthen the resource
coordination in businesses of property development, property management, hotel
and commercial operation, to maximise the productivity of business
segments.  The post-epidemic era
highlights the advantage of ‘Eco-friendly and People-oriented Property’.  By creating products with unique competitive
advantages, the Group will improve the brand recognition and influence. In
2021, the Group will maintain the existing development advantages and improve the
competitiveness to promote high-quality growth and rapid scale expansion, so
that it will create greater value for owners and shareholders.”