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."