Jiayuan International Announces Annual Results 2018

Net Profit Up 38.6% to RMB1.86 billion

Contracted Sales Hit Record High

Recently Acquired Property Management Business to Boost Profitability

Financial Highlights:

2018FY Results Highlights:

• Record-High Sales: Contracted sales and contracted sales area of the Group amounted to approximately RMB20.18 billion and 1,787,209 sq.m., representing a year-on-year increase of 95% and 52% respectively. Average price of contracted sales up 28.1% year on year to RMB11,292 per sq.m.Keeping a fast growing pace,for the two months ended 28 February 2019, the contracted sales and corresponding gross floor area sold was approximately RMB2,094.9 million and 190,725 sq.m., representing a year-on-year increase of approximately 88% and 60% respectively.
• National Layout: The Group acquired 13 premium projects of total gross GFA reaching approximately 3,900,000 sq.m. at a low premium in 8 regions, including Hong Kong, Shanghai, Taizhou, Changzhou, Jiangmen, Guiyang, Urumqi and Cambodia.
• Layout of the Guangdong-Hong Kong-Macau Greater Bay Area Taking Shape: The Group took the lead in entering city clusters in the Greater Bay Area in 2016 and has obtained premium land parcels in Hong Kong, Macau, Shenzhen and other cities of Guangdong Province.
• Embarking upon Property Management Business: The Group intended to boost its profitability with property management assets. The managed properties totaled 121 projects, and arelocated mainly in provinces including Zhejiang, Jiangsu and Anhui.
• Broaden Financing Channels: The Group successively public issued senior notes through various channels to optimize debt structure, including the public issuance of USD350 million senior notes due 2019 and USD400 million senior notes due 2020.

HONG KONG, CHINA - Media OutReach  - 27 March 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, announced today its annual results for the year ended 31 December 2018.

Leveraging on the forward-looking market layout and competitive product strategies of Jiayuan International, the Group accurate capture the demand for home purchases in important areas during the year, leading to a significant growth in the Group's performance indicators. For the year ended 31 December 2018, the Group's revenue increased by 37.5% to approximately RMB10.46 billion. Net profit increased by 38.6% to RMB1.86 billion while profit attributable to the shareholders increased by 34.7% to RMB1.79 billion.Earnings per share amounted to approximately RMB72.21 cents.The Board of Directors recommended a final dividend of HK 11 cents, together with interim dividend of HK10 cents, total dividend of the year is HK21 cents (2017: HK19 cents).

To cope with the Chinese government's tighter regulation of the property market in 2018, the Group implemented the development model of "focusing on real estate with diversification" and leveraged on the synergy effect among its various business segments. As a result, the Group precisely captured the housing demand in the second- and third-tier cities, adjusted sales strategy timely and accelerated cash collection cycle to ensure a steady increase in its sales. As of 31 December 2018, the contracted sales of the Group amounted to approximately RMB20.18 billion, representing a year-on-year increase of 94.6%. Contracted sales area of the Group amounted to approximately 1,790,000 sq.m., representing a year-on-year increase of 51.8%. The average price of contracted sales amounted to RMB11,292 per sq.m., representing a year-on-year increase of 28.1%. For the two months ended 28 February 2019, the contracted sales and corresponding gross floor area sold was approximately RMB2,094.9 million and 190,725 sq.m., representing a year-on-year increase of approximately 88% and 60% respectively.

In 2018, the increase in the Group's revenue was mainly due to the delivery of properties pre-sold under Jiayuan Centurial City in Yangzhou upon its completion in first half of 2018. During the year, revenue derived from property development reached approximately RMB10,381.9 million, representing a 37.9% increase year on year. Revenue generated from property investment of the group amounted to approximately RMB77.0 million. The Group recorded a 28.4% year-on-year increase in its gross profit, amounting to RMB3.31 billion, with a gross profit margin of 31.6%.

Jiayuan International is currently in a stage of rapid expansion where the Group's abundant land reserves can ensure consistent growth in its operating results in the future.Deeply rooted in the Yangtze River Delta Region for many years, the Group took the lead in entering city clusters of the Guangdong-Hong Kong-Macau Greater Bay Area in 2016. The Group acquired various property projects in core cities of the Greater Bay Area through project merger and acquisition and joint development. Meanwhile, the Group deployed in provincial capital cities with strong fundamentals and planned for high-quality projects in regions along the "Belt and Road" initiative, with abundant land reserves. As of 31 December 2018, the Group had 45 projects in total, spanning across 16 domestic and foreign cities. The Group has land reserves with a total GFA of approximately 9.2 million sq. m., of which 65%, 15%, 13% and 7% are in Yangtze River Delta Region, the Guangdong-Hong Kong-Macau Greater Bay Area, other key provincial capital cities and regions along the "Belt and Road" initiative, respectively, which will be enough to meet the development needs for the next three to five years.

The Group announced its acquisition of Zhejiang Jia Yuan Property Management Co., Ltd. from its major shareholders in September 2018 and the transaction was initially approved by shareholders in early 2019. The acquired property management assets are expected to boost Jiayuan International's profitability and provide strong support towards the Group's property sales business.The property projects managed by Zhejiang Jiayuan Property Management Services Group Co., Ltd. are located mainly in provinces including Zhejiang, Jiangsu and Anhui.In 2018, the managed properties totaled 121 projects, covering residential, commercial offices and urban complexes, including 104 residential communities, 14 commercial properties and 3 other properties, with total contracted GFA under management of over 30,000,000 sq. m.

Recently, Jiayuan International announced that it has entered into a memorandum of　understanding with Mr. Shum, the chairman of the group, to acquire a number of privately held projects in key cities in Anhui Province, thereby rapidly expanding its business footprint to Anhui Province and plans to pay for the acquisition price through the issuance of new shares. In order to increase the shareholding ratio of major shareholders. The Group expects that the increase in net assets will further optimize the structure of assets and liabilities, making the financial situation more stable.

Solid financial strengths are important pillars to support a diversified business development. The Group strove to speed up cash recovery from property sales and fortified capital budget management during the year, and issued senior notes through various channels to optimize debt structure, including the public issue of USD350 million senior notes due 2019 and USD400 million senior notes due 2020, thereby further boosting the Group's capital strengths.

Looking ahead, the Group expects that the government will continue to implement differentiating control policies and speed up the establishment of a long-term mechanism for the real estate market to promote its steady and healthy development. On the other hand, the county and township dwellers have an ongoing desire to improve their living conditions since urbanization is far from over.To embrace the challenges and opportunities brought by the change of the market, the Group will continue to strictly uphold prudent financial policies and risk control measures, ensure construction quality and safety, strengthen its contracted sales and cash collection and apply strict cost control to strengthen operating cash flows and ensure investment returns.

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; and purchased the quality properties of Shanghai from Mr. Shum Tin Ching, Chairman of the Group, thus enhancing its brand influence in the Yangtze River Delta Region. In addition, the Group also succeeded in expanding its business coverage to key provincial capital cities, including Guiyang and Urumqi. The Group also ventured into countries and regions along the "Belt and Road" initiative, such as acquiring fine and parcels in Cambodia. In addition, the Group is pending to acquire various projects located in major cities of Anhui province from Chairman Shum, signifying a new level in the Group's international development.