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Moody’s Places Jiayuan International’s Ratings on Review for Upgrade

HONG KONG, CHINA - Media OutReach - 15 May 2019 - Jiayuan International Group Limited ("Jiayuan
International" or the "Group"; SEHK stock code: 02768), an established property
developer of both large-scale residential and integrated commercial complex
projects in China, is pleased to announce that it has been placed on review for
the upgrade of the Group's corporate rating and debt rating by the
international credit rating agency Moody's Investors Service ("Moody's"), with the
ratings expecting to be upgraded in the near term.

 

Moody's says the review
for upgrade reflects the firm's expectation that Jiayuan's liquidity and
operating performance will improve because of the issuance of USD notes in May
2019 and the proposed acquisition of assets from the Group's major shareholder.

 

Moody's expects the
Group's balance sheet cash as of December 2018 and its operating cash flow in
2019 will be sufficient to repay its matured debts.

 

Moody's also points out
that Jiayuan proposed to acquire property projects from Mr. Shum Tin Ching, the
chairman and the largest shareholder of the Group, the signed agreement between
the Group and Mr. Shum are pending for approval. Upon completion of
transaction, the Group's business footprint and geographic presence will be
broadened, which will be positive to the credit rating. In addition, the
transaction that will funded through a new equity issuance to Mr. Shum will
also strengthen the Group's equity base and help alleviate its debt leverage.

 

Mr. Zhangyi, Vice
Chairman, President and Executive Director of Jiayuan International said, "The ratings
on review for upgrade placed by Moody's reflects the capital market's
affirmation of the Group's recent business performance and effort on optimizing
its debt structure. Jiayuan International, as a leading civilian-owned
enterprise that has access to abundant capital, will continue with its
pragmatic approach to business diversification. Looking ahead, Jiayuan
International will continue to capitalize on the state policies by acquiring
lands or property development projects in the Yangtze River Delta and
Guangdong-Hong Kong-Macau Greater Bay Area through tenders by itself or through
joint ventures. It will also seek to acquire quality property projects in
provincial capitals and economically vibrant cities in mainland China and other
countries and regions which are covered by China's Belt and Road Initiative so
as to maximize the shareholder value."

About Jiayuan International

Jiayuan
International is an established property developer of large-scale residential
and integrated commercial complex projects in different major cities in the
People's Republic of China ("PRC"). With over 20 years of experience in
property development, the Group develops property projects through
comprehensive planning, meticulous quality control, sophisticated operating
systems and experienced professional teams to meet the needs of different
regions and strengthen the Group's brand image. As of December 31, 2018, the
Group has a portfolio of more than 45 property projects in China, covering the
cities of Nanjing, Yangzhou, Changzhou, Nantong, Taizhou, Zhenjiang and Suzhou.
Since 2016, the Group has taken the lead in entering Guangdong-Hong Kong-Macao
Greater Bay Area, and has successively obtained a number of quality projects in
Shenzhen, Jiangmen and Macau. In 2018, it established a joint venture company
in Hong Kong to formally enter the Hong Kong real estate market. It has also
purchased some quality property projects in Shanghai and Anhui province as well
as a property management business from Mr. Shum Tin Ching, the chairman of the
Group. The moves can enhance Jiayuan International's brand influence in the
Yangtze River Delta. In addition, the Group also succeeded in exptending its
market coverage to key provincial capital cities, including Guiyang and Urumqi.
The Group also entered the markets of countries and regions covered by China's
Belt and Road Initiative. For example, it has entered the market of Cambodia,
marking a milestone in the internationalization of the Group's business.

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