Business Segments and Operations - Joy City Property Limited operates in four main business segments: investment properties, property development, hotel operations, and output management[7]. - As of June 30, 2022, the Group has established a presence in 23 cities across China, including major cities like Beijing, Shanghai, and Guangzhou[8]. - The Group manages or owns 26 Joy City projects, 3 Joy Breeze projects, and 2 Joy Life projects, along with premium investment properties in first-tier cities[8]. - The Group's properties are strategically located in central districts of first- or second-tier cities, ensuring superior quality and good investment value[8]. - The Group has expanded into five major city clusters, including the Beijing-Tianjin-Hebei and Yangtze River Delta regions[7]. - The Group operates several international luxury hotels, including The St. Regis Sanya Yalong Bay Resort and Waldorf Astoria Beijing, enhancing its service offerings[8]. - The Group's flagship brand, Joy City, focuses on sustainable development and aims to lead the real estate market in China[5]. - The Group aims to contribute to urban development and enhance the quality of life for residents, fulfilling its social responsibilities as a state-owned enterprise[8]. Financial Performance - Revenue for the first half of 2022 reached RMB 9,134,276, representing a 95.5% increase compared to RMB 4,672,074 in the same period of 2021[19]. - Gross profit for the period was RMB 4,091,924, reflecting a 91.2% increase from RMB 2,139,698 in 2021[19]. - Profit attributable to owners of the Company was RMB 866,086, an increase of 41.2% compared to RMB 613,507 in the same period last year[19]. - Core net profit attributable to owners of the Company was RMB 918,540, up 28.6% from RMB 714,014 in 2021[19]. - Total assets as of June 30, 2022, amounted to RMB 138,174,697, a 5.5% increase from RMB 131,020,391 at the end of 2021[19]. - The net debt to total equity ratio improved to 48.5%, down from 49.1% at the end of 2021[19]. - The weighted average borrowing costs decreased to 3.90%, compared to 4.13% in the previous year[19]. - Other service income increased significantly by 136.8% to RMB 62,776 from RMB 26,512 in the same period of 2021[19]. Market Conditions and Challenges - In the first half of 2022, China's GDP expanded by 2.5% year on year despite economic pressures, while nationwide sales of commercial buildings decreased by 28.9% to approximately RMB6.6 trillion[37]. - The total retail sales of consumer goods in China amounted to approximately RMB21 trillion in the first half of 2022, reflecting a year-on-year decline of 0.7%, although June saw a recovery with a 3.1% increase[38]. - The vacancy rates for office spaces increased in major cities like Beijing and Guangzhou due to slowed demand in the first half of 2022[38]. - The Group maintained a sound business strategy to ensure stable development amidst the challenges faced by the commercial property market[38]. - The Group's operational and management experience was flexibly applied to navigate the impacts of the COVID-19 pandemic on offline consumption[38]. Development and Expansion - The Group entered into a management services agreement for the Greenland Central Plaza project in Guangzhou, marking its official entry into the city[30]. - The Group's Sanya Joy City project received a five-star award for commercial building development at the Asia Pacific Property Awards, recognized for its design emphasizing greenness and ecological significance[34]. - The Group's Jinniu Joy City project in Chengdu is the first asset-light commercial project in the city, expanding its presence in the region[31]. - The Group introduced the "Green Joy City" product line, focusing on low-carbon and green transformation, and shared its development models at the China Building Energy Efficiency Industry Conference[32]. - The Group plans to open several new projects in the second half of 2022, including Qingdao Jimo Joy Breeze and Shaoxing IFC Joy City, to enhance brand influence[44]. Customer Engagement and Marketing - The Group recorded approximately RMB1,820 million in sales from Chaoyang Joy City in the first half of the year, contributing to its recognition as one of "China's Top 20 Shopping Centre Owners in 2021"[41]. - The nationwide sales during the "Joy Joy So Red Festival" event exceeded RMB6.1 billion, representing a year-on-year increase of 26%, with total footfall reaching 44 million, a year-on-year increase of 19%[56]. - The Group's partnership with Moutai Ice Cream led to the establishment of flagship stores in Xi'an Joy City and Changsha North Star Delta Joy City, targeting the youth market[53]. - The Group's marketing efforts included leveraging new media and organizing monthly featured marketing activities, yielding positive results[70]. Human Resources and Talent Development - The Group recruited more than 70 graduates from prestigious universities in its 2022 campus recruitment scheme, with over 71% holding postgraduate degrees[122]. - The Group had a total of 4,090 employees during the period under review, reflecting its commitment to talent development[121]. - The Group has established a performance-oriented remuneration system, providing comprehensive benefits including various insurances and a dynamic salary adjustment mechanism[126]. - The Group's training programs include initiatives like "Training Camp for Senior Executives" and "Future Star Training Camp," aimed at enhancing business capabilities and internal talent development[130]. Governance and Compliance - The Company has adopted all provisions of the Corporate Governance Code and has complied with the code except for the requirement for the Chairman to attend the annual general meeting due to COVID-19 travel restrictions[139]. - The financial statements for the period under review have been prepared in accordance with generally accepted accounting principles in Hong Kong, with no material uncertainties affecting the Company's ability to continue as a going concern[140]. - The Audit Committee and the auditor have reviewed the unaudited condensed consolidated financial statements for the six months ended June 30, 2022[141]. - There were no material acquisitions or disposals of subsidiaries, associates, or joint ventures during the six months ended June 30, 2022[147]. Shareholding and Financial Structure - COFCO Corporation holds 9,501,359,644 ordinary shares, representing 66.76% of the issued share capital[155]. - GIC Private Limited owns 1,135,920,000 ordinary shares, accounting for 7.98% of the total[159]. - Citigroup Inc. has a stake of 1,112,905,624 ordinary shares, which is 7.82% of the issued share capital[159]. - The total number of ordinary shares in issue as of June 30, 2022, is 14,231,124,858[161]. - The total liabilities of the company as of June 30, 2022, were RMB 38,942,196, an increase from RMB 31,478,796 at the end of 2021, representing a rise of approximately 23.7%[187].

Company Overview - Grandjoy Holdings focuses on developing, operating, selling, leasing, and managing integrated and commercial properties in China, with a strong presence in 22 cities including Beijing, Shanghai, and Shenzhen[10]. - As of the end of 2021, Grandjoy Holdings has established a footprint in five major city clusters, including the Beijing-Tianjin-Hebei region and the Yangtze River Delta, managing 25 Joy City projects and 4 Joy Spring projects[11]. Financial Performance - Total revenue for 2021 was RMB 12,313.3 million, a decrease of 12.7% compared to RMB 14,109.8 million in 2020[123]. - The company reported a profit attributable to owners of the company of RMB 591.7 million, down 46.4% from RMB 1,104.5 million in 2020[123]. - Core net profit attributable to owners decreased by 33.4% to RMB 552.4 million from RMB 828.9 million[123]. - The annual profit recorded was approximately RMB 1,484.9 million, down 31.5% from RMB 2,169.1 million in 2020, with profit attributable to the company's owners at RMB 591.7 million, a decline of 46.4% year-on-year[159]. - The total assets increased by 5.5% to RMB 131,020.4 million from RMB 124,167.3 million[124]. - The net debt to total equity ratio rose to 49.1%, up from 34.7% in the previous year, indicating increased leverage[124]. Revenue Streams - Rental income from investment properties and related services increased by 13.1% to RMB 4,055.9 million from RMB 3,586.8 million[123]. - Sales of properties held for sale decreased by 25.3% to RMB 7,149.3 million from RMB 9,568.8 million[123]. - Hotel operations revenue grew by 28.1% to RMB 766.4 million from RMB 598.3 million[123]. - The shopping center achieved rental income of RMB 2.77 billion, a year-on-year increase of 16.2%[133]. - The hotel business generated revenue of approximately RMB 770 million, with a year-on-year increase of 28.1%[133]. Strategic Initiatives - The company plans to continue leveraging its brand advantages and operational experience to drive steady growth in performance amid market challenges[131]. - The company aims to expand its commercial area to 1 million square meters as part of its 14th Five-Year Plan strategy[139]. - The company is focusing on innovative business models and enhancing customer experience to adapt to changing consumer preferences[142]. - The company plans to continue expanding its investment properties and enhance its market presence through strategic acquisitions and new developments[160]. Market Position and Expansion - Grandjoy Holdings continues to expand its portfolio with high-quality investment properties in prime locations, enhancing its investment value and growth potential[11]. - The company expanded its commercial projects to over 40 in more than 20 first- and second-tier cities[138]. - The property development contract sales amounted to approximately RMB 27 billion, representing a year-on-year growth of 34.2%[133]. - The commercial real estate market in China showed signs of recovery, with a 12.5% year-on-year increase in retail sales, indicating a positive environment for the company's operations[151]. Challenges and Responses - The pandemic in 2021 impacted the group's business operations, affecting brand management, rent collection, and the opening of new brands, leading to a decline in overall project occupancy and rent collection rates[183]. - The group is actively responding to national policies by implementing rent reductions for small and micro enterprises, aiming to mitigate the impact of these reductions on annual performance indicators[183]. - The group faces cash flow interest rate risk related to floating-rate bank deposits and borrowings, and aims to mitigate this through negotiation and low-rate financing channels[180]. Governance and Management - Mr. Ma was appointed as a non-executive director on October 28, 2020, and has held various positions within COFCO Group since 1998[192]. - Mr. Liu has been with COFCO Group since August 1993, serving in multiple roles, and has been the secretary of the board since January 2018[193]. - COFCO Group has a diverse board with members holding various significant positions in other listed companies, enhancing its governance structure[198].

Business Expansion and Development - As of June 30, 2021, the Group has expanded into 22 cities in mainland China and Hong Kong, managing 25 Joy City urban complexes and 3 Joy Breeze projects[11] - The Group's future outlook includes continued expansion in major city groups such as the Yangtze River Delta and Guangdong-Hong Kong-Macao Greater Bay Area[11] - The company is expanding its market presence by entering three new cities, which is projected to increase market share by 10%[19] - The Group's major business structure includes various Joy City projects across key urban areas, enhancing its market presence[14] - The Group plans to expedite the expansion of its light-asset commercial projects in first-tier, second-tier, and prominent third-tier cities[84] Financial Performance - The company reported a significant increase in revenue, achieving a total of $1.2 billion, representing a 15% year-over-year growth[19] - Revenue for the six months ended June 30, 2021, was RMB 4,672.1 million, representing a 32.5% increase from RMB 3,525.3 million in the same period of 2020[26] - The Group's profit for the first half of 2021 was RMB 950.6 million, with profit attributable to the owners of the Company amounting to RMB 613.5 million, up from RMB 114.6 million in the same period of 2020[111] - Core net profit attributable to owners of the Company reached RMB 714.0 million, a significant increase of 421.1% from RMB 137.0 million in the same period last year[26] - The Group's profit attributable to owners amounted to RMB 613.5 million, with basic earnings per share of RMB 4.0 cents[74] Revenue Sources - The Group's business segments include investment properties, property development, hotel operations, and output management, reflecting a diversified revenue stream[11] - Revenue from investment properties was approximately RMB 1,987.7 million, accounting for 42.5% of total revenue, an increase of 21.9% year-on-year[115] - Revenue from property development was approximately RMB 2,138.7 million, representing 45.8% of total revenue, with a year-on-year increase of 30.9% due to increased delivery scale in regions like Qingdao and Chongqing[116] - Hotel operations revenue reached approximately RMB 432.7 million, accounting for 9.3% of total revenue, marking a significant increase of 153.8% compared to the same period in 2020[118] Customer Engagement and Satisfaction - User data showed a 25% increase in active users, reaching 5 million by the end of the quarter[20] - Customer satisfaction ratings improved to 90%, reflecting a 5% increase from the previous quarter[20] - The introduction of the new retail brand Qpokee in Xidan Joy City resulted in sales exceeding RMB200,000 on its opening day[48][49] - The Joy Breeze brand launched the "Cherry Blossom Spring Festival," attracting over 115,000 visits in two days, marking an 88.5% quarter-on-quarter increase[57][58] Strategic Initiatives - The Group aims to maximize benefits for customers, shareholders, and staff, aligning with its mission of sustainable development[4] - The company emphasized innovation and business expansion as key strategies to enhance performance and brand value during the first half of 2021[38] - The Group's strategic focus on asset-light projects has been pivotal for large-scale business expansion, enhancing regional business networks[41][44] - The Group's marketing strategy included launching a sales mini-program "Joy Property Purchase GO," which contributed positively to sales performance during key shopping festivals[101] Operational Efficiency - Operational costs were reduced by 10%, resulting in improved profit margins[20] - The Group's leasing efficiency improved across various projects, with Shenyang Joy City seeing a 54.2% increase in leasing efficiency and a 126.6% increase in sales efficiency[51][53] - The average borrowing cost rate was reduced to 4.07%, a decrease of 0.29 percentage points from 2020, maintaining a relatively low level in the industry[86] Market Trends and Economic Context - The Chinese economy recorded a GDP of approximately RMB 53.2 trillion, with a year-on-year growth of 12.7%[76] - Nationwide commercial housing sales reached approximately RMB 9.3 trillion, representing a year-on-year rise of 38.9%[76] - The total retail sales of consumer goods amounted to approximately RMB 21.2 trillion, reflecting a year-on-year ascent of 23.0%[77] Talent Acquisition and Development - The Group had a total of 4,342 employees as of June 30, 2021, reflecting a commitment to talent acquisition and retention[184] - In 2021, the Group recruited over 110 graduates from prestigious universities, with more than 74% holding postgraduate degrees[185] - The Group implemented the "ten-hundred-thousand" talent scheme in 2021 to recruit experienced professionals, enhancing its team strength[188] Risk Management and Financial Stability - The Group acknowledges no material uncertainties that may cast doubt on its ability to continue as a going concern, ensuring stability in its financial reporting[198] - The Group's exposure to cash flow interest rate risk is managed through interest rate swaps to mitigate fluctuations in foreign currency borrowings[182] - The Group is gradually locking in exchange rate risks through forward contracts and other financial tools[183]

Sales Performance - The total sales during the "Daiyue Crazy Festival" reached 331 million yuan, a 93% increase compared to the previous period, with total foot traffic of 1.75 million, up 22.6%[20] - The total sales during the second "Daiyue Hi New Festival" exceeded 433 million yuan, a nearly 184% increase, with total foot traffic of 2.93 million, up 77%[18] - The group achieved property development contract sales amounting to approximately RMB 20.12 billion in 2020[35] - In 2020, the group's total sales reached RMB 18.53 billion, with a foot traffic of 157 million and an increase of 1.8 million new members, achieving a member average spending of RMB 800[58] - The group achieved a property development contract sales amount of approximately RMB 20.12 billion in 2020, representing a year-on-year growth of 67.3%[61] Revenue and Profit - The company's revenue for 2020 was RMB 14,109.8 million, a 36.5% increase from RMB 10,337.8 million in 2019[26] - The company's net profit attributable to owners was RMB 1,104.5 million, representing a decline of 32.5% from RMB 1,635.9 million in 2019[26] - The hotel operations revenue was approximately RMB 598.3 million, representing a 28.9% decline year-on-year due to the impact of the COVID-19 pandemic[180] - The net profit for the year was RMB 2,169.1 million, a decrease of 18.7% compared to RMB 2,668.5 million in 2019, with attributable profit to shareholders at RMB 1,104.5 million, down from RMB 1,635.9 million[177] Investment and Land Acquisition - The company acquired core land parcels in Xiamen and Nanchang for future commercial complex projects[21] - The group acquired land reserves of approximately 752,700 square meters in Xiamen and Nanchang during the year[36] - The group successfully acquired a 100,000 square meter land parcel in Xiamen, further enhancing its strategic layout in the southeastern region[54] Operational Highlights - The company has established a presence in 20 cities and manages 23 Joy City urban complex projects as of the end of 2020[5] - The company launched a new commercial product line, Beijing Daxing Joy Spring, which had a grand opening on December 25, 2020[19] - The company is focused on developing, operating, and managing urban complexes under the Joy City brand, with a strong emphasis on sustainability and social responsibility[6] Market Trends - The total retail sales of consumer goods in China reached RMB 39.2 trillion, with a year-on-year decline narrowing to 3.9%[33] - The overall national commercial property sales in 2020 amounted to approximately RMB 17.36 trillion, with a year-on-year increase of 8.7%[59] - The real estate investment amount in China reached RMB 14.14 trillion, reflecting a year-on-year growth of 7%[33] Marketing and Customer Engagement - The group launched several innovative marketing campaigns, resulting in a 8.5% year-on-year increase in total sales during the "Super Red Luck Week" event[46] - The company launched a new membership growth system, "Yue Dou Growth Plan," to enhance customer engagement and drive in-store visits[67] - The group provided rent reductions for over 4,000 merchants to help them recover from the impact of COVID-19[37] Financial Metrics - The total assets of the company increased by 11.9% to RMB 124,167.3 million, up from RMB 110,977.4 million[26] - The net debt to total equity ratio improved to 34.7%, down from 40.9% in the previous year[26] - The average financing cost was maintained at 4.36%, a decrease of 0.19 percentage points from 4.55% at the end of 2019[37] Awards and Recognition - The company has won over 120 industry awards in 2020, reaffirming its position as an industry innovation leader[23] - The group has been recognized with 125 industry awards in 2020, reflecting its brand influence and leadership position[44]

Revenue Performance - Revenue for the six months ended June 30, 2020, was RMB 3,525.3 million, a decrease of 47.6% compared to RMB 6,732.0 million in the same period of 2019[12]. - Investment property revenue decreased by 26.1% to RMB 1,630.8 million, while property development revenue fell by 59.4% to RMB 1,633.3 million[12]. - Hotel operations revenue dropped by 60.7% to RMB 170.5 million, reflecting the impact of the pandemic on the hospitality sector[12]. - For the six months ended 30 June 2020, total revenue was RMB 3,525.3 million, representing a decrease of 47.6% compared to the same period in 2019[132]. - Gross rental income from investment properties accounted for 46.3% of total revenue, with a year-on-year decline of 26.1%[132]. - Revenue from property development and primary land development accounted for 46.3% of total revenue, representing a decrease of 59.4%[134]. - Hotel operations revenue accounted for 4.8% of total revenue, down 60.7% year-on-year due to reduced demand and occupancy rates[135]. Profitability - Core net profit attributable to owners of the Company was RMB 114.6 million, down 86.9% from RMB 877.5 million in the previous year[12]. - Profit attributable to owners of the Company amounted to RMB 114.6 million, with a basic earnings per share of RMB0.7 cent[42]. - The Group's profit for the same period was RMB 443.4 million, down from RMB 1,690.5 million in 2019, with core net profit at RMB 497.4 million[130]. - The Group's cost of sales was approximately RMB 1,419.1 million, with an overall gross profit margin of 59.7%, an increase of 6.6 percentage points from 53.1% in 2019[136]. - Other income increased by 55.6% to approximately RMB 173.6 million, mainly due to increased interest income and government subsidies[140]. - Tax expenses were RMB 623.6 million, representing a decrease of 52.2% compared to RMB 1,305.3 million for the same period in 2019, mainly due to a decrease in corporate income tax and land value-added tax[148]. Financial Position - Total assets increased by 3.7% to RMB 115,100.8 million as of June 30, 2020, compared to RMB 110,977.4 million at the end of 2019[13]. - The net debt to total equity ratio improved to 46.2%, down from 40.9% in the previous period, indicating better financial leverage management[13]. - As of June 30, 2020, the Group's net gearing ratio was 46.2%, an increase of 5.3 percentage points from 40.9% at the end of 2019[51]. - The Group had cash and cash equivalents of RMB 14,134.2 million as of June 30, 2020, up from RMB 9,627.5 million in the same period of 2019, reflecting a year-on-year increase of approximately 46.1%[165]. - The Group's total borrowings amounted to RMB 23,940.975 million, an increase from RMB 23,091.406 million as of December 31, 2019, representing a growth of approximately 3.7%[161]. Business Strategy and Operations - The Group's strategic focus remains on urban development and enhancing the quality of living spaces, aligning with its mission to lead in sustainable real estate development[8]. - Future outlook includes continued expansion in core cities and enhancing service offerings to meet urban development needs[8]. - The Group's proactive adjustment of business strategies allowed it to take the lead in business recovery amidst the challenges posed by COVID-19[21]. - The Group quickly launched digital transformation initiatives, including Wechat Mini Programs, to adapt to the "stay-at-home economy" during the COVID-19 pandemic[23]. - The Group implemented a strategy of "one store, one policy" to assist commercial tenants, enhancing sales recovery[30]. Marketing and Sales Performance - During the reporting period, the online shopping malls recorded total sales of over RMB 32 million, received nearly 35 million visits, and attracted more than 1.13 million new members[24]. - The Group conducted over 600 live broadcasts across all commercial projects, totaling over 1,500 hours, with a single live broadcast on May 3 achieving sales of over RMB 1.51 million[25]. - The "Star Carnival Week" event saw over 1,000 commercial tenants participating, achieving total online and offline sales of RMB 197 million and attracting over 1.632 million offline visits[28]. - Total sales during the "Hi, It's New Shopping Festival" exceeded RMB 433 million, growing by nearly 184% month-on-month[35]. - The event attracted 2.93 million visits, increasing by 77% month-on-month[35]. Real Estate Development - The Group recorded approximately RMB 6.84 billion in contracted sales of property development during the review period[47]. - The Group's real estate investment turned from negative to positive growth with a year-on-year increase of 1.9% from January to June[43]. - The Group emphasized strategic land acquisition and maintained a stable expansion pace in the commercial property sector[50]. - The Group's rental income from Joy City Shopping Mall was approximately RMB 1.04 billion, with sales performance recovering steadily since the second quarter[62]. - Contracted sales from property development reached approximately RMB 6.84 billion, with the Wuhan COFCO Guanggu Shine City project ranking first in its region[62]. Employee and Corporate Governance - The Group had a total of 4,249 employees as of June 30, 2020, reflecting its commitment to talent retention and development[175]. - The Group's 2020 campus recruitment scheme successfully recruited over 110 graduates, with more than 78% holding postgraduate degrees[177]. - The Group has established a performance-oriented remuneration system, providing competitive salaries and comprehensive benefits including various insurances and a corporate annuity plan[180]. - The Directors believe that the financial statements have been prepared in compliance with generally accepted accounting principles in Hong Kong, with no material uncertainties affecting the company's ability to continue as a going concern[174]. - The Company has complied with all corporate governance code provisions except for code provision E.1.2, which requires the chairman to attend the annual general meeting[186].

Corporate Structure and Strategy - The company completed a restructuring with COFCO Real Estate, forming an "A-share red chip" structure[16] - The company focuses on urban complex development and management, with four main business segments: property development, investment properties, hotel operations, and management services[9] - The company aims to maximize value for customers, shareholders, and employees, emphasizing high-quality green living spaces[4] - The company plans to leverage digital marketing strategies and smart design to enhance its competitive advantage in the commercial real estate market[55] - The company aims to accelerate its light-asset development strategy through management output projects, enhancing brand influence[85] Brand Initiatives and Marketing - The new brand initiative "Youth Gravity Field" hosted 1,878 events throughout the year, with over 7.22 million participants and brand exposure exceeding 3.35 billion times[15] - The company launched the "Youth Gravity Field" brand initiative, focusing on youth culture and enhancing emotional connections with the target audience[62] - The "Daiyue Spring Breeze" product line was introduced to cater to the evolving needs of the urban middle class, emphasizing a lifestyle of warmth, fashion, comfort, and quality[69] - The company’s strategic focus on cultural empowerment has led to the introduction of the "Commercial Upgrade Strategy," marking a new phase in its business development[58] - The company launched over 30 member-themed events to enhance member engagement and loyalty, focusing on localized interests[79] Sales and Revenue Performance - Total revenue for 2019 reached RMB 10,337.8 million, a 27.2% increase from RMB 8,128.9 million in 2018[41] - The company achieved property contract sales of RMB 12,026 million, representing a 35% increase year-on-year[53] - The total sales during the "Day of New Consumption" event reached 197 million yuan, a 26% year-on-year growth, with total foot traffic of 1.038 million, up 64% year-on-year[16] - The "Day of Crazy Shopping" event achieved sales of 236 million yuan in a single day, a year-on-year increase of 19.8%[18] - In 2019, the company's total sales exceeded RMB 22,600 million, representing a year-on-year growth of 19%[81] Financial Performance - The company's attributable profit decreased by 22.2% to RMB 1,635.9 million, with basic earnings per share at RMB 0.107, down 21.9%[51] - The core net profit attributable to the company was RMB 1,252.2 million, a decline of 20.1% compared to RMB 1,566.9 million in 2018[48] - The total assets increased by 12.3% to RMB 110,977.4 million from RMB 98,860.5 million in 2018[46] - The net debt to total equity ratio improved to 40.9%, down from 45.3% in the previous year, a reduction of 4.4 percentage points[55] - The group recorded a loss of approximately RMB 203.1 million in other gains and losses, an increase in loss of 25.5% compared to RMB 161.9 million in 2018, primarily due to goodwill impairment losses[181] Operational Highlights - The company has established a presence in 14 cities, managing 19 major projects and several high-quality investment properties in prime locations[7] - The company actively supported COVID-19 relief efforts, donating over RMB 77 million and providing nearly 500 tons of alcohol for epidemic prevention across multiple cities[31] - The company maintained a stable supply of essential goods during the pandemic, ensuring sufficient inventory of rice, flour, and oil products[31] - The company utilized its smart operation platform COFFICE to support online office operations during the pandemic, ensuring efficiency and safety for users[38] - The company’s hotels, including Waldorf Astoria Beijing and MGM Sanya, implemented strict daily disinfection protocols to ensure guest safety[39] Project Development and Expansion - The company expanded its operations into key urban areas across five major city clusters in China[7] - The project in Chongqing is progressing as planned and is expected to open in 2021, covering an area of approximately 46,000 square meters with a total construction area of nearly 400,000 square meters[118] - The Tianfu Dayue City project in Chengdu is advancing steadily, with a total land area of 36,000 square meters and a total construction area of 290,000 square meters[123] - The Sanya Dayue Plaza project is on track for completion in May 2024, with a total construction area of approximately 174,900 square meters[150] - The company secured land reserves of 1.162 million square meters in Sanya and Jinan, representing a year-on-year increase of 9.4%[171] Awards and Recognition - The company received multiple awards in 2019, including the "Top 10 Commercial Real Estate Companies in China" and "Best Brand Management Communication Award" at the ICSC China Awards[24] - The company achieved a historical high with 135 industry awards in 2019, showcasing its leading position in the market[61] - The company was recognized as a leading enterprise in energy-saving practices at the G20 International Best Energy-Saving Practices Awards[27] - The company’s commercial projects were awarded for excellence in marketing and management at various industry forums and conferences[26] Membership and Customer Engagement - Membership consumption accounted for over 50%, with youth consumption surpassing 76% during major sales events[19] - The company accumulated 15,386 paid members across five major projects, driving in-store sales to RMB 221 million, with paid members spending nearly four times more than non-paid members[76] - The company established a V+ paid membership system in Chaoyang Dayuecheng, accumulating over 10,000 members with a consumption increase of over 40%[98] - The "Dai Yue Crazy Grab Festival" marketing campaign significantly boosted member participation and sales performance[77] - The company is leveraging the "Yue Cloud" smart business system for precise marketing, enhancing community engagement and customer loyalty[73]

Company Operations and Market Presence - As of June 30, 2019, the Group operates or manages 16 Joy City urban complexes and 2 Joy Breeze projects across 13 cities, including Beijing, Shanghai, and Chengdu[9]. - The Group has expanded into five metropolitan areas, including Beijing-Tianjin-Hebei and the Yangtze River Delta, enhancing its market presence[9]. - The Group's investment properties include prime locations such as Beijing COFCO Plaza and Hong Kong COFCO Tower, indicating strong asset quality[9]. - The reorganization of Joy City Property under Grandjoy Holdings positions the company as the sole professional property development platform of COFCO Corporation, aiming for enhanced operational efficiency[10]. - The integration with Grandjoy Holdings aims to enhance sales capacity and leverage resources for urban complex development[19]. - The Group plans to utilize land reserves from Grandjoy Holdings to expand land acquisition channels and reduce costs[21]. - The Group's property projects are located in central districts of first- or second-tier cities, ensuring advantageous geographical positions and good investment potential[9]. Financial Performance - Revenue for the first half of 2019 reached RMB 6,732.0 million, a 67.2% increase compared to RMB 4,026.7 million in the same period of 2018[13]. - Property development revenue surged by 120.5% to RMB 4,021.0 million from RMB 1,823.6 million year-on-year[13]. - Core net profit attributable to owners of the Company decreased by 63.9% to RMB 550.6 million from RMB 1,526.3 million in the first half of 2018[16]. - Total assets increased by 3.9% to RMB 102,670.9 million from RMB 98,860.5 million[13]. - The net debt to total equity ratio rose to 50.2% from 45.3%, reflecting a 4.9% increase[13]. - Profit attributable to owners of the Company amounted to RMB877.5 million, with basic earnings per share of RMB0.057[39]. - Overall rental income for the first half of 2019 reached RMB1.87 billion, representing a year-on-year growth of 25%[42]. - The Group's net gearing ratio as of June 30, 2019, was 50.2%, an increase of 4.9 percentage points from 45.3% at the end of 2018[42]. Strategic Focus and Development Goals - The Group's strategic focus includes precise investment, scientific operation, strong risk control, and achieving high returns, which are essential for sustainable development[10]. - The Group aims to create perpetual value for cities and improve the quality of life for residents through its development strategies[10]. - The Group is committed to becoming a leader among PRC real estate brands with sustainable development capabilities[5]. - The integration of commercial, residential, and cultural elements is expected to strengthen the company's market position and enhance long-term sustainable development[23]. Marketing and Brand Initiatives - The "Joy, up to Youth" campaign in 2019 reached over 900 million hits and engaged 30 million young consumers, attracting 3.2 million attendees to interactive events across 12 Joy City malls[26]. - The "Joy City Hi New" campaign launched in 13 malls aimed to upgrade the original IP and establish a strong connection with youth culture[30]. - Joy City aims to enhance brand value by integrating local features into projects and organizing diverse events to promote its "youth fashion" brand[28]. - The company is focusing on building a strong brand identity by aligning its offerings with the spiritual demands of China's emerging middle class[25]. Customer Engagement and Experience - Joy City is committed to enhancing member rights and loyalty through innovative commercial IPs and improved indoor navigation in shopping centers[33]. - The introduction of new brands such as MUJI, KFC "smart restaurant," and Li-Ning flagship store in Shenyang Joy City enhanced its market presence and customer appeal[54]. - Chaoyang Joy City launched a new paid membership system – V+ membership, aimed at refining customer groups and enhancing membership value[60]. - The project in Shenyang has a site area of 51,000 sq.m. and a gross floor area of 322,700 sq.m., with a gross leasable area of 95,400 sq.m.[54]. Operational Efficiency and Growth - The operational efficiency of Joy City has improved, and the capacity for operation and expansion has been further enhanced[50]. - The projects across various cities emphasized brand upgrades and meticulous operations to improve customer quality and enhance overall performance[65]. - The Group's overall performance was driven by improved sales revenue from property and land development business[125]. Employee Development and Corporate Governance - The Group had a total of 4,487 employees as of June 30, 2019, reflecting its commitment to talent development[168]. - In 2019, the Group recruited over 42 graduates from prestigious universities, with more than 78% holding postgraduate degrees[169]. - The Group has established a performance-oriented remuneration system, providing competitive salaries and comprehensive benefits including various insurances and a housing provident fund[173]. - The Group's senior management remuneration is closely linked to the Company's overall performance, with a stock bonus incentive program in place[175]. Market Trends and Economic Outlook - The outlook for the second half of 2019 indicates strong endogenous growth momentum in China's economy, supporting the domestic commercial real estate market[176]. - The customer base for the commercial real estate market is expanding, particularly among young people and residents in third- and fourth-tier cities[176]. - The commercial property market is expected to undergo in-depth development with new consumer market reforms, targeting experiential and cultural products[44].

Corporate Overview - COFCO Group, the ultimate controlling shareholder of Joy City Property, is one of the 49 key state-owned enterprises managed by the Chinese central government and has been listed in the Fortune Global 500 for over 25 consecutive years[2]. - The company operates in four major business segments: property development, investment properties, hotel operations, and management services[8]. Project Development and Expansion - As of December 31, 2018, Joy City Property operates or is constructing 16 Joy City urban complex projects across 12 cities, including Beijing, Shanghai, and Chengdu, with a focus on core urban areas in five major city clusters[3]. - The company has successfully acquired key land parcels in Shenyang and Chengdu, indicating ongoing market expansion efforts[12][19]. - Joy City Property's projects are strategically located in prime areas of first- and second-tier cities, providing strong investment value and potential for appreciation[3]. - The group added land reserves of 1.062 million square meters during the year, expanding its land acquisition strategy[39]. Financial Performance - Total revenue for 2018 was RMB 8,128.9 million, a decrease of 30.3% from RMB 11,657.8 million in 2017[28]. - Rental and related service income amounted to RMB 3,632.9 million, reflecting a 5.8% increase from RMB 3,433.1 million in 2017[28]. - Property development revenue dropped by 49.9% to RMB 3,568.7 million from RMB 7,123.8 million in 2017[28]. - The company reported a net profit attributable to shareholders of RMB 2,103.3 million, an increase of 82.4% compared to RMB 1,153.2 million in 2017[28]. - Core net profit attributable to shareholders rose by 86.8% to RMB 1,566.9 million from RMB 838.9 million in 2017[28]. - Total assets increased by 14.5% to RMB 98,860.5 million from RMB 86,370.5 million in 2017[29]. - The net debt to total equity ratio increased to 45.3% from 28.2% in 2017, reflecting a 17.1% change[29]. - The company achieved a gross profit of RMB 4,499.8 million, down 14.3% from RMB 5,247.7 million in 2017[28]. - Basic earnings per share increased by 82.7% to RMB 13.7 from RMB 7.5 in 2017[28]. Operational Efficiency and Strategy - The restructuring plan between COFCO Property and Joy City Property was unconditionally approved by the China Securities Regulatory Commission, significantly enhancing the group's comprehensive strength and operational scale[4]. - Joy City Property aims to integrate its brand and create a new brand image that embodies "youth, fashion, trend, and quality" following the restructuring, establishing a comprehensive real estate platform covering both residential and commercial properties[4]. - The company is committed to high-quality development, precise investment, scientific operations, risk control, and good returns, aiming to become a sustainable urban lifestyle creator[4]. - The company is actively pursuing light-asset development strategies to enhance brand influence and operational efficiency[60]. Marketing and Customer Engagement - The company has launched several high-quality sales properties, including Shanghai Jing'an Joy City and Hainan COFCO Hongtang Yuehai, enhancing its market presence[3]. - The company launched the "Yue·Cloud" smart business system, integrating advanced technologies for precise customer flow and marketing[51]. - The introduction of smart robots and facial recognition payment systems has enhanced customer interaction and operational efficiency[63]. - The introduction of a paid membership card has strengthened high-value customer engagement and precision marketing[72]. Environmental and Social Responsibility - The company has established a comprehensive environmental management system to control pollutant emissions, with a 100% compliance rate for data reporting from subsidiaries[152]. - The company emphasizes the importance of environmental protection as a key component of its development strategy, aiming for sustainable growth[149]. - The company has set up an environmental, social, and governance (ESG) working group to assess and manage significant ESG issues[148]. - The company has implemented a solid waste management strategy, focusing on construction waste and daily operational waste from its stores[158]. Human Resources and Employee Welfare - The company has established a diverse recruitment channel, ensuring that 77.49% of its main business personnel hold a bachelor's degree or above, with 705 new hires in the current year, of which 65.2% are postgraduates[186]. - The company organized campus recruitment events at 15 key universities, reaching a total participation of 3,750 individuals, enhancing its employer brand and visibility among students[189]. - The company emphasizes employee health by conducting regular health check-ups and establishing personal health records for employees[193]. - The company has a strong focus on occupational safety and health management, continuously improving safety management actions to eliminate health hazards for employees[192]. Safety and Emergency Preparedness - The group implemented large-scale inspections 4 times throughout the year, effectively improving on-site safety conditions[199]. - A total of 223 emergency drills were organized for grassroots projects, enhancing emergency preparedness[200]. - The average score for the emergency capability assessment of the Dayuecheng project was 89.17, indicating a good level of preparedness[200].