- Focused on "Eco-friendly and People-oriented Property" Market Segment
- Achieved Rapid Growth in Revenue and Profit
- Core Net Profit Increased
Significantly by 171.0% - Gross Profit Margin Up By 9 percentage
points
HONG KONG,
CHINA - Media OutReach - 26 March 2020 - JY Grandmark Holdings Limited ("JY Grandmark" or the "Company"; together
with its subsidiaries, the "Group", stock code: 2231), a property
developer, operator and property management service provider based in the
People's Republic of China (the "PRC"), is pleased to announce its annual
results for the year ended 31 December 2019 (the "Year").
JY Grandmark was successfully listed on the Main
Board of The Stock Exchange of Hong Kong Limited on December 5, 2019, and
officially entered the international capital market. This is an important
milestone for the development of JY Grandmark, marking the Group's entry into a
stage of accelerated development and expansion. 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 was RMB2,402.8 million (2018:
RMB1,328.9 million), representing an increase of 80.8% year on year("yoy"). The
Group's gross profit amounted to RMB 1,144.2 million (2018: RMB512.6 million), representing
an increase of 123.2% yoy. The Group's gross profit margin increased by 9
percentage points("ppts") from 38.6% in 2018 to 47.6%. Core net profit amounted
to RMB446.9 million (2018: RMB164.9 million), representing an increase of
171.0%. Profit attributable to shareholders amounted to RMB501.5 million (2018:
RMB386.5 million), representing an increase of 29.8%.
JY Grandmark operates a diversified business
portfolio, the core businesses of the Group are property development and sales,
hotel operations, property management, and commercial properties investment.
During the year, all segments have achieved good expected returns and increased
brand reputation.
Property development and sales business
performed satisfactorily with both volume and prices rising
The Group focuses on the market segment of
"Eco-friendly and People-oriented Property" to build distinctive properties. By
seizing the rigid demand of customers for improving their living environment
and space, the Group is aiming to provide high-quality products and services to
customers with purchasing power. Therefore, the Group's product positioning and
premium pricing power are strong. JY Gaoligong Town (景業高黎貢小鎮) of Tengchong project is a work in "Hui style (徽派)" architecture that targets at the underserved "modern Chinese style" niche segment in
regional market. Various apartment types and product style are built according
to the living habits of major target cities such as Beijing and Xi'an, making
customers willing to complete purchases on their first visit. The outcome of
destocking and price trends are satisfying.
The Group focuses on the development of
quality residential properties with comfortable and convenient living
environment. During the year, revenue from recognized sales of property
development of the Group amounted to RMB2,290.3 million, representing an
increase of 83.8% as compared with RMB1,245.8 million in 2018. The increase was
mainly attributable to higher recognized average selling price as well as the
aggregate GFA delivered in 2019. During the year, the average selling price
("ASP") was RMB 19,125 per sq.m., an increase of 14.7% from RMB 16,672 per sq.m.
in 2018.
Gross profit margin from property
development and sales increased from 40.4% in 2018 to 49.1% in 2019. Such
increase was primarily due to the contribution from sales of JY Lychee Town
Phase II, JY Clearwater Bay No. 3 Phases VI and VII, which attained gross
profit margin ranging from 47.8% to 51.1% in 2019 resulting from higher recognized
ASP.
Currently, JY Grandmark has a property
portfolio of 30 property projects in Guangdong, Hainan, Yunnan and Hunan, with
an aggregate GFA of approximately 3,000,000 sq.m., comprising completed
properties available for sale or lease with an aggregate GFA of 220,000 sq.m., properties under development with an
aggregate GFA of 820,000 sq.m. and
properties held for future development with an aggregate GFA of 1,960,000 sq.m.. The Group has managed to secure a
sufficient supply of land resources for property development over the coming
three or more years.
Effective
diversification strategy
During the year, the
Group's core businesses recorded satisfactory growth. Property Management segments
of the Group took over about 900 houses during the year. Zhuodu Property, one
of its property companies, owns a chargeable area of approximately 300,064
square meters and will increase the chargeable areas of different types of
properties through multiple channels. It is expected that there will be a
significant increase in property companies' business scale and operating income
in 2020. At present, Zhuodu Property is prepared for business improvement by
virtue of its well-established brand system. During the year of 2019, revenue
from property management of the Group amounted to RMB14.4 million, representing
an increase of 121.5% as compared with RMB6.5 million in 2018. The increase was
mainly due to increase in total GFA of the properties under management.
The Group's
currently self-operated hotels such as the 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) have achieved sustainable growth. Besides, such
hotels have also reached agreements with a number of governments, chambers of
commerce, enterprises, etc. to be the designated
or contracted hotels, and won the most popular hotel awards from platforms such
as Ctrip. During the year of 2019, revenue from hotel operations of the Group
amounted to RMB73.8 million, representing an increase of 10.8% as compared with
RMB66.6 million in 2018. It was primarily attributable to the increased revenue
generated from Just Stay Resort.
Other than holding
properties for development and sales, the Group also owns commercial properties
for leasing purpose. During the year of 2019, revenue from commercial property
investment of the Group amounted to RMB24.2 million, representing an increase
of 142.0% as compared with RMB10.0 million in 2018. The increase was mainly due
to increase in total GFA leased throughout the year of 2019.
Mr. Michael Chan,
Chairman and Executive Director of JY Grandmark said, "Looking ahead to 2020, the uncertainty over
the global spread of the epidemic may hit confidence of both investors and
consumers, coupled with financial market turmoil and general economic
activities have been affected by the epidemic, likely resulting in adverse
impact on the real estate industry. In view of the above, the Group is cautious
about the outlook of the domestic real estate market. However, the market expects
the central government will introduce policies to support the real estate
industry, one of the economic pillars, so as to offset the negative impact of
the epidemic in an active manner. In the long run, real estate policies will
remain stable, which will be conductive to promoting the healthy and
sustainable development of the real estate industry."
In the face of such
a challenging market environment, the Group will adhere to sound financial
strategies, prudent land purchase strategies, and respond flexibly to the
rapidly changing market conditions, in an effort to further consolidate its
advantages in the high-growth market segments, and to grasp the continuously
increasing housing demand from people with fundamental demand and looking for
home upgrade in the long term. The Group will add land parcels of desirable
quality to the land reserve in the regions where it has presence, such as
acquiring more high-quality lands in the Guangdong-Hong Kong-Macao Greater Bay
Area (粵港澳大灣區) and Yunnan, so as to gain further market share.
The Group will also evaluate the feasibility of establishing a presence in more
potential cities such as Yangtze River Delta, Shaanxi and other regional
markets, focusing on core cities and cities with population inflow in the
national economic strategic zone.
The Group has
achieved its goal of IPO in six years, which denotes the recognition and
affirmation of the Group by the capital market. In the future, while expanding
its business scale and promoting diversification, JY Grandmark will continue to
adhere to its positioning of "Eco-friendly and People-oriented Property
Developer", maintain financial stability, strengthen its own financing
capabilities, improve product development and enhance brand reputation. We are
confident that our business will continue to flourish and realize high quality
and high earnings. We are committed to delivering satisfactory performance to
shareholders and quality works to customers."
About JY Grandmark Holdings Limited
JY Grandmark is a property developer, operator and
property management service provider based in the PRC, and principally offered
residential properties in Guangdong and Hainan provinces during the track
record period. It has land resources in Guangdong, Hainan, Yunnan and Hunan
provinces for its future development. 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. As at 30 September 2019, the Group had a property portfolio of 30
property project phases in 10 locations with an aggregate GFA attributable to
it of approximately 3.0 million square meters.
