Stable Growth in Unit Rental and Contracted Sales Significantly Increased by 114%
HONG KONG — Joy City Property Limited (“Joy City Property” or the “Company”, Stock Code: 00207.HK) announced its unaudited operating figures of the Company and its subsidiaries (the “Group”) for the nine months ended 30 September 2017.
The impact of the Internet makes the commercial real estate market facing more intense competition but also more new opportunities on offline consumption. Under this circumstance, Joy City Property strives to accelerate the development of asset management and strengthen customer asset management, and deeper further practice on lean-oriented operation of shopping malls to achieve gratifying results in the first nine months of 2017.
Property Investment
Xidan Joy City
Xidan Joy City is situated in the prime location of Xicheng District, Beijing. The project is approximately 200 meters away from Chang’an Street in the south and adjacent to Financial Street and Xinjiekou Commercial District in the north. In 2016, Xidan Joy City continued to step up its efforts in brand adjustment and built up two unique themed streets – the Experiential Chic Street and Trendy Food Street. All these new highlights have led a fashionable trend and helped the project to realise enhancement in both rental and sales per square meter.For the first nine months of 2017, the average occupancy rate of Xidan Joy City was approximately 92% and the average unit rental increased by approximately 3% as compared with that for the same period in 2016.
Chaoyang Joy City
Chaoyang Joy City is located in prime zone of Chaoyang District, Beijing. It is approximately 5 kilometers away from Beijing CBD Commercial District and is surrounded by a number of high-end luxury apartments with a population of 2.5 million. In 2016, Chaoyang Joy City switched the focus of its promotional activities from boosting customer flow to enhancing customer quality with an aim to continuously optimize the brand ecosystem and reinforce the brand’s tonality and atmosphere that resonate with the Lifestyle concept. By strengthening its product quality, enhancing shopping experience and implementing precise marketing measures through the use of big data and VIP system, Chaoyang Joy City has guaranteed sustainable and rapid growth in its projects’ operating results. For the first nine months of 2017, the average occupancy rate of Chaoyang Joy City was approximately 97% and the average unit rental increased by approximately 17% as compared with that for the same period in 2016.
Tianjin Joy City
Tianjin Joy City is located in Old Town, the central district of Tianjin with convenient traffic. Tianjin Joy City constantly explored street models with different social functions, such as Cheer Market, No. 5 PARK, Super Factory and IF Street, the first outdoor street of Joy City series. In 2016, Tianjin Joy City topped the regional markets with its commercial sale segment. For the first nine months of 2017, the average occupancy rate of Tianjin Joy City was approximately 94% and the average unit rental increased by approximately 8% as compared with that for the same period in 2016.
Shenyang Joy City
Shenyang Joy City is located at the east end of Shenyang Zhong Street, a traditional commercial pedestrian street, where is right at the core of the local government construction project, which named “Golden Key” and “Dongzhong Street”. Shenyang Joy City continued to innovate and made a number of unprecedented breakthroughs in the industry. In 2016, the first Taste Good opened, an O2O-themed member experience centre in northeastern region and meanwhile the 4 1/2 Street District officially opened, which is the first street district characterized by easy art and lifestyle experience in northeastern region, turning a new page of commercial payment scenario reform of shopping centres in Shenyang. For the first nine months of 2017, the average occupancy rate of Shenyang Joy City was approximately 94%.
Shanghai Joy City
Shanghai Jianan Joy City’s Joy urban complex is located at the core district of the CBD of SuhewanGold Coast. Shanghai Jing’an Joy City has developed a pioneer intelligent shopping system. Users can enjoy an all-rounded experience in the interactive shopping scenario and exchange with other users whenever and whatever they want. Meanwhile, the use of APP/Light APP has facilitated the upgrade of consumption model by creating an interactive online shopping scenario. Users’ activities and data can be monitored on a real-time basis and customer experience can be enhanced through the data feedbacks. For the first nine months of 2017, the average occupancy rate of Shanghai Joy City was approximately 98% and the average unit rental increased by approximately 11% as compared with that for the same period in 2016.
Yantai Joy City
Yantai Joy City is in the northeast of the junction of Beima Road and Haigang Road of Zhifu District, Yantai. In 2016, Yantai Joy City adopted a series of measures to strive for sales growth and better result performance including introduction of new businesses, stores adjustment, brand upgrade and regional adjustments. It also comprehensively strengthened the refined operation of Joy City by way of BI innovation, membership management and services and property management, thereby enhancing the overall efficiency through management. For the first nine months of 2017, the average occupancy rate of Yantai Joy City was approximately 94% and the average unit rental increased by approximately 14% as compared with that for the same period in 2016.
Chengdu Joy City
Chengdu Joy City is located in Wuhou District, Chengdu. Chengdu Joy City continued to optimise the brand portfolio and has become a benchmark project for fashion and entertainment experience in southwestern region. It is the most diversified fast fashion brand portfolio, the largest children-themed center and the most unique themed street in southwestern region. Chengdu Joy City achieved steady growth in its results and saw outstanding performance in the first year since the commencement of operation. For the first nine months of 2017, the average occupancy rate of Chengdu Joy City was approximately 94% and the average unit rental increased by approximately 37% as compared with that for the same period in 2016
Beijing COFCO Plaza
Beijing COFCO Plaza is located at the core area of the Second Ring in Beijing. In 2016, the project carried out upgrade and transformation on the shopping mall of Tower C, on 23 May 2017, the renovation of Block C of Beijing COFCO Plaza, which covering a total area of 54,237 square meters, have been completed. Without accounting for the influence of the renovation, the average occupancy rate of Beijing COFCO Plaza was 95%.
Hong Kong COFCO Tower
The project is situated at a prime location in Causeway Bay, Hong Kong. For the first nine months of 2017, the average occupancy rate of Hong Kong COFCO Tower was approximately 99%.
Fraser Suites Top Glory Shanghai
The project is located in the core area of Lujiazui CBD in Pudong New Area, Shanghai, along the Huangpu River and is a top-grade high-end serviced apartment project in Shanghai. In respond to the opening of the Shanghai Disneyland Park, the Happy Summer Package for Disneyland was launched to attract even more short-term customers that take a vacation on a family basis. By organizing a series of activities, customer experience was improved. For the first nine months of 2017, the average occupancy rate of Beijing COFCO Plaza was approximately 88%.
Property Development
For the period ended 30 September 2017, the Group’s aggregate contracted sales amounted to approximately RMB4,104 million and increased by approximately 114% as compared with that for the same period in 2016. The Group’s aggregate contracted sales area amounted to approximately 96,947 square meters and increased by approximately 79.5% as compared with that for the same period in 2016.
Hotel Operation
MGM Grand Sanya
MGM Grand Sanya is located in Yalong Bay National Tourism and Resort District in Sanya, Hainan, which is a first-class resort area in China. The project is a high-end luxury resort hotel operated and managed by Diaoyutai MGM Group. For the first nine months of 2017, the average room rate of the hotel was about RMB1,193 per room per night and the average occupancy rate was approximately 88%.
St. Regis Sanya Yalong Bay Resort
The project is located in Yalong Bay National Tourism and Resort District in Sanya, Hainan, which is a first-class resort area in China. The resort is adjacent to golf club and mangrove conservation area, and is a first-class luxury resort hotel operated and managed by Starwood Group. For the first nine months of 2017, the average room rate of the hotel was about RMB 1,439 per room per night and the average occupancy rate was approximately 71%.
W Beijing-Chang’an
W Beijing-Chang’an is located in a commercial district surrounded by foreign embassies in the center of Beijing. The hotel was successfully listed among the purchasing list of various international and domestic giants and had basically established the influence of W brand in sectors such as luxuries, e-commerce, fast moving consumer goods and automobile. For the first nine months of 2017, the average room rate of the hotel was about RMB 790 per room per night and the average occupancy rate was approximately 69%.
About Joy City Property Limited
Joy City Property Limited (0207.HK) is the leading commercial property developer and operator of COFCO Group, focusing on the development, operation, sales, leasing and management of complexes and commercial properties in the PRC.
The group mainly engages in the development, operation and management of mixed-use complexes under the brand of Joy City, and owns projects include several Joy City complexes in Beijing, Shanghai and other tier 1 and tier 2 cities. The group also has prime investment properties strategically located in first-tier cities, including Beijing COFCO Plaza and Hong Kong COFCO Tower, as well as high quality properties held by the Group, namely Shanghai Joy City Joy mansion one. The Group operates a number of national high-end luxury hotels, including W Beijing-Chang’an, The St. Regis Sanya Yalong Bay Resort and MGM Grand Sanya. These high quality property projects are strategically located in central districts of first or key second tier cities with good investment and appreciation potentials.
Looking forward, the Group will maintain the two-wheel-drive business strategy of “holding and selling properties”, the development strategy of “light and heavy asset”, and establish the development model of “Joy City Asset Management” combined real estate with finance, enhancing product quality and cost-effectiveness, so as to create value for its customers, shareholders and partners. The group will inherit the ideals of “Sustain Operating for Centuries”, and preserve with the “young, fashionable, trendy and quality” brand spirit of Joy City to lead the trend of new city lifestyle of China. It is a mission of the Group to assist in coordination among and development of cities in China and become a leading complex and commercial property developer in the PRC.