Business Operations - As of June 30, 2023, the Group has established a presence in 24 cities across Mainland China, including major cities such as Beijing, Shanghai, and Guangzhou, and operates or manages a total of 32 Joy City and Joy Life malls[6]. - The Group's business segments include investment properties, property development, hotel operations, and output management, focusing on urban complexes under the Joy City brand[6]. - The Group holds premium investment properties in prime locations, including Beijing COFCO Plaza and Hong Kong COFCO Tower, as well as high-quality properties for sale such as Beijing Chenyue Intl and Suzhou Joy Shishan One Majesty[6]. - The Group operates several international luxury hotels, including The St. Regis Sanya Yalong Bay Resort and Waldorf Astoria Beijing, contributing to its diversified revenue streams[6]. - The Group has expanded into five major city clusters, including the Beijing-Tianjin-Hebei and Guangdong-Hong Kong-Macao Greater Bay Area, enhancing its market reach[6]. Financial Performance - Revenue for the six months ended June 30, 2023, was RMB 3,812,356, a decrease of 58.3% compared to RMB 9,134,276 in 2022[73]. - Rental income from investment properties increased by 32.2% to RMB 2,150,054 from RMB 1,626,191[73]. - Sales of properties held for sale and hotel operations dropped significantly, with property sales down 85.8% and hotel operations down 89.6%[73]. - Gross profit attributable to owners of the Company was RMB 2,127,499, a decline of 48.0% from RMB 4,091,924[73]. - Core net profit attributable to owners of the Company increased by 10.8% to RMB 960,023 from RMB 866,086[73]. - Total assets as of June 30, 2023, were RMB 145,414,306, reflecting a 3.9% increase from RMB 140,003,492 at the end of 2022[74]. - The equity attributable to owners of the Company rose by 1.9% to RMB 30,497,846 from RMB 29,924,332[74]. - The net debt to total equity ratio improved to 48.5% from 49.5%[74]. - The weighted average financing cost increased to 4.51% from 3.97%[74]. Market Trends and Consumer Behavior - The total retail sales of consumer goods in China grew by 8.2% year on year in the first half of 2023, indicating a recovering consumer market[92]. - The domestic tourism market saw a recovery, with hotel demand surpassing pre-pandemic levels during key holidays[95]. - The Group aims to leverage macro policies to stimulate household consumption, particularly during traditional peak shopping seasons[101]. - The Group's marketing campaigns, such as "Joy Joy So Red Festival" and "Hi, It's New Shopping Festival," successfully boosted both sales and foot traffic[92]. Project Development and Sales - The Group recorded property sales of approximately RMB10.54 billion during the same period, despite a nationwide decline in commodity housing sales area by 5.3% year on year[94]. - The Group acquired 53,200 sq.m. of land bank in Nanjing during the review period, adhering to a selective investment strategy[97]. - New projects launched, such as Suzhou Joy Shishan One Majesty, sold out on the first day, achieving strong sales results[134]. - The Group achieved contracted sales of approximately RMB10.54 billion in property development during the review period[134]. Corporate Governance and Social Responsibility - The Group aims to maximize benefits for customers, shareholders, and staff, emphasizing its commitment to sustainable development in the real estate sector[2]. - The Group is committed to social responsibility and actively contributes to urban development and improving the quality of life for residents[7]. - The Group has complied with all applicable provisions of the Corporate Governance Code during the six months ended June 30, 2023[197]. - The Group's management emphasizes transparency, accountability, and independence in its corporate governance practices[195]. Employee Development and Corporate Culture - The Group employed a total of 3,751 employees during the review period[179]. - The Group's remuneration system is performance-oriented, linking compensation of core staff to operating performance[184]. - The Group's training programs include "Core Team Training Camp" and "Future Star Training Camp," aimed at improving business capabilities and internal talent development[190]. - The Group recruited over 50 high-quality talents through campus recruitment in 2023, emphasizing the importance of this channel for future development[186].

Financial Performance - Total revenue for the six months ended June 30, 2023, was RMB 3,812.4 million, a decrease of 58.3% year-on-year, while rental and related service income from investment properties increased by 32.2% to RMB 2,150.1 million[2]. - Contracted sales amounted to RMB 10,535.1 million, down 35.4% year-on-year, with a contracted sales area of 394,411.8 square meters, a decrease of 2.1%[2]. - Profit attributable to equity holders of the company was RMB 960.0 million, an increase of 10.8% year-on-year, while core net profit attributable to equity holders, excluding fair value gains and currency exchange effects, decreased by 32.2% to RMB 623.2 million[2]. - Gross profit for the period was RMB 2,127.5 million, compared to RMB 4,091.9 million in the same period last year, reflecting a significant decline[4]. - The total comprehensive income for the period was RMB 1,067.8 million, down from RMB 1,517.3 million year-on-year[5]. - The company reported a basic and diluted earnings per share of RMB 6.3 cents, compared to RMB 5.7 cents in the previous year[4]. - The group’s profit for the review period was approximately RMB 1,251.9 million, a decrease of 19.6% year-on-year, while profit attributable to the company's owners was approximately RMB 960.0 million, an increase of 10.8%[55]. Assets and Liabilities - Total assets as of June 30, 2023, were RMB 145,414.3 million, an increase from RMB 140,003.5 million at the end of 2022[6]. - Net asset value was RMB 57,382.3 million, slightly down from RMB 58,089.3 million at the end of 2022[7]. - The company's total equity as of June 30, 2023, was RMB 57,382,278, a slight decrease from RMB 58,089,278 at the end of 2022[8]. - The total interest-bearing borrowings amounted to RMB 44,456.2 million, a decrease of 2.9% from RMB 45,766.5 million at the end of 2022[57]. - The net debt to total equity ratio was approximately 48.5%, down from 49.5% at the end of 2022[58]. Revenue Sources - Rental income from investment properties and related services was RMB 2,150,054, up 32.1% from RMB 1,626,191 in the previous year[16]. - Hotel operations generated revenue of RMB 536,325, an increase of 89.5% compared to RMB 282,916 in the previous year[16]. - The company reported a total of RMB 1,958,979 in revenue from customer contracts, with property investment contributing RMB 296,677 and property and land development contributing RMB 1,004,763[17]. - The total rental income for the first half of 2023 was RMB 1,793.8 million, with an overall occupancy rate of 92%[46]. - The property development business reported a revenue of RMB 1,004.8 million, a significant decline of 85.8% year-on-year[48]. Expenses and Costs - Administrative expenses for the period were RMB 397.4 million, a slight decrease from RMB 404.5 million in the same period last year[4]. - The cost of sales and services for the same period was approximately RMB 1,684.9 million, down 66.6% from RMB 5,042.4 million year-on-year[43]. - The group's financing costs rose to RMB 1,009,418,000 for the six months ended June 30, 2023, compared to RMB 760,370,000 in 2022, reflecting an increase of 32.8%[29]. - The total tax expense for the group was RMB 435,412,000 for the six months ended June 30, 2023, down from RMB 1,214,303,000 in 2022, a decrease of 64.1%[31]. Market and Operational Strategy - The company continues to focus on expanding its investment properties and enhancing rental income as part of its growth strategy[2]. - The company is focused on property investment, development, and hotel management as its primary business segments[15]. - The company continues to explore market expansion opportunities and new strategies to enhance its operational performance[9]. - The company plans to enhance project profitability through professional operational capabilities and contribute to the development of the urban consumer market in the second half of 2023[60]. Governance and Compliance - The company has maintained its accounting policies consistent with the previous year, ensuring stability in financial reporting[11]. - The company has adopted all provisions of the Corporate Governance Code as its own, ensuring compliance with applicable rules and standards as of June 30, 2023[64]. - All directors confirmed adherence to the Securities Trading Code during the six months ending June 30, 2023[63]. - The independent review of the interim financial statements was conducted by the auditor, ensuring transparency and compliance with Hong Kong standards[64].

Business Expansion and Market Presence - Joy City Holdings reported a significant expansion in its property portfolio, managing 27 projects across 24 cities in China by the end of 2022[9]. - The company achieved a notable milestone by entering the Guangzhou market through a light-asset management agreement for the Greenland Central Plaza project[17]. - Joy City Holdings has established a strong presence in key urban clusters, including the Beijing-Tianjin-Hebei, Yangtze River Delta, and Guangdong-Hong Kong-Macau Greater Bay Area[9]. - Joy City Holdings is committed to expanding its market presence and enhancing service offerings in urban development and lifestyle services[10]. - The company has secured land reserves of approximately 780,000 square meters in key first-tier and strong second-tier cities[38]. - The company successfully opened new projects including Wuhan Dayue City and Shaoxing Guojin Dayue City, focusing on key regions and core cities for accelerated expansion[61]. - The company’s commercial projects opened in 2022 included Guangzhou Huangpu Dayuehui and Chengdu Jinniu Dayue City, contributing to the growth of light asset management projects[64]. - The group plans to continue focusing on key regions and core cities in 2023, adhering to a "light and heavy asset" strategy to enhance commercial layout[73]. Financial Performance - The total revenue for the year ended December 31, 2022, was RMB 20.83 billion, representing a 69.2% increase compared to RMB 12.31 billion in 2021[25]. - The sales of properties held for sale increased by 130.6% to RMB 16.48 billion from RMB 7.15 billion in the previous year[25]. - The company's core net profit attributable to shareholders rose by 48.9% to RMB 822.71 million from RMB 552.45 million in 2021[25]. - The total assets increased by 6.9% to RMB 140.00 billion from RMB 131.02 billion in 2021[25]. - The average financing cost decreased to 3.97%, down by 0.16 percentage points from 4.13% in the previous year[25][39]. - The company achieved property development contract sales amounting to approximately RMB 28.6 billion during the year[38]. - The shopping center business generated revenue of approximately RMB 2.76 billion, with sales reaching about RMB 24.8 billion[37]. - The overall gross profit margin decreased to approximately 30.8%, down 7.5 percentage points from 38.3% in the previous year[76]. - The group recorded a net profit of approximately RMB 1,100.6 million, a decline of 25.9% year-on-year, with attributable profit to the company’s owners at RMB 530.8 million, down 10.3%[76]. Awards and Recognition - The company received international recognition with the Beijing Chaoyang Joy City winning the ICSC Global Gold Award for Experience and the Silver Award for Innovation[18]. - The company won two awards at the "Hong Kong Green and Sustainable Finance Awards 2022," recognizing its excellence in green loan issuance and ESG disclosure[21]. - The company was recognized with over 140 industry awards, enhancing its brand influence in the commercial real estate sector[69]. Strategic Initiatives and Marketing - The company is focused on enhancing its brand influence and operational efficiency through strategic partnerships, including agreements with Chengdu Overseas Chinese Town and Shenyang Huayue Century Investment[19][20]. - The group launched a series of marketing activities, including the "Daiyue Pet Fan Festival," to enhance sales performance amid market challenges[38]. - The "645" business strategy focuses on six dimensions: deepening urban presence, product reshaping, brand empowerment, refined operations, organizational transformation, and expedited development[42]. - The group aims to enhance its core competitiveness through the 4S system, which includes large operations, large services, large memberships, and big data[45]. Corporate Governance and Leadership - The company has established a strong governance structure with independent directors and various committees in place[111]. - The board includes members with significant experience in finance and strategic planning, enhancing decision-making capabilities[110]. - The company is committed to maintaining high standards of corporate governance and compliance[111]. - The company has appointed new executives to strengthen its leadership team, including a new CFO with extensive experience in financial management[121]. - The board consists of eight members, including one executive director, four non-executive directors, and three independent non-executive directors, with a recent change in leadership on September 30, 2022[130]. Risk Management and Internal Controls - The company has established a robust risk management and internal control system to monitor and manage various risks associated with business activities[182]. - The internal audit department conducts semi-annual reviews of the risk management and internal control systems, covering 190 sub-processes across major business units[188]. - The company has implemented a whistleblowing policy allowing employees and third parties to report serious issues directly to the audit committee or board[192]. - The board has reviewed the effectiveness of the risk management and internal control systems and found them to be adequate and effective[188]. Employee Engagement and Development - The company has established a comprehensive employee compensation and incentive system, with a total of 3,794 employees as of December 31, 2022[97]. - The company is focused on enhancing employee training and development through various core training programs, aiming to build a robust talent supply chain[98]. - The company recognizes the value of gender diversity and promotes an inclusive work environment while considering all relevant factors in recruitment[175]. Market Outlook and Future Plans - The group anticipates a recovery in the real estate sector in 2023, driven by macroeconomic policies and increased consumer demand[40]. - The company provided an optimistic outlook for 2023, projecting a revenue growth of 10% to 12% based on anticipated market expansion and new product launches[126]. - The company anticipates a steady recovery in consumer spending in 2023, particularly in the entertainment and hospitality sectors, driven by macroeconomic policies[100].

Financial Performance - Total revenue reached RMB 20,831.4 million, a year-on-year increase of 69.2%, with property development revenue at RMB 16,483.7 million, up 130.6%[2] - Profit attributable to the owners of the company was RMB 530.8 million, a decrease of 10.3%, while core net profit, excluding fair value losses and currency fluctuations, rose by 48.9% to RMB 822.7 million[2] - Gross profit increased to RMB 6,406.4 million, compared to RMB 4,713.6 million in the previous year[3] - Total comprehensive income for the year was RMB 812.5 million, down from RMB 1,724.1 million in the previous year[4] - The company reported a total of RMB 17,927,330 in revenue from customer contracts, compared to RMB 8,794,012 in 2021, indicating a growth of 103.3%[18] - The total segment profit for the year was RMB 4,077,753, with a significant contribution from property investment and management services[32] - The pre-tax profit before deducting certain items was RMB 530,773,000 in 2022, down from RMB 591,666,000 in 2021, indicating a decline of about 10.3%[57] - The annual profit for the group was approximately RMB 1,100.6 million, a decrease of 25.9% year-on-year, with attributable profit to the company’s owners at RMB 530.8 million, down 10.3%[80] Revenue Breakdown - Contracted sales amounted to RMB 28,558.0 million, reflecting a year-on-year growth of 5.8%, with contracted sales area increasing by 25.0% to 800,946.4 square meters[2] - Revenue from property sales reached RMB 16,483,682, significantly up from RMB 7,149,317 in the previous year, marking a growth of 130.5%[17] - Rental income from operating leases was RMB 2,904,027, down from RMB 3,519,285 in 2021, reflecting a decrease of 17.4%[31] - Revenue from hotel operations decreased to RMB 553,699 from RMB 766,392, a decline of 27.8%[17] - The group's investment property rental and related service income totaled approximately RMB 3,492.9 million, a decrease of 13.9% from RMB 4,055.9 million in the previous year[68] Assets and Liabilities - Non-current assets increased to RMB 78,439.6 million from RMB 73,899.4 million year-on-year, driven by growth in investment properties[5] - Current liabilities increased to RMB 27,102,922 thousand from RMB 15,598,770 thousand, representing a growth of 73.5% year-over-year[7] - Non-current liabilities for bank loans increased significantly to RMB 19,406,417 thousand from RMB 12,776,484 thousand, a rise of 52%[9] - The company’s total liabilities increased to RMB 47,453,291 thousand from RMB 31,478,796 thousand, marking a significant rise of 50.8%[9] - Total assets as of December 31, 2022, were approximately RMB 140,003.5 million, up from RMB 131,020.4 million in 2021[84] Cash Flow and Financing - The average financing cost was reduced to 3.97%, a decrease of 0.16 percentage points year-on-year, as the company focused on optimizing its capital structure[2] - The company reported a significant increase in cash and bank balances, totaling RMB 16,895.4 million, compared to RMB 10,352.9 million in the previous year[6] - The company’s cash flow management strategies are expected to focus on optimizing working capital and reducing reliance on third-party loans[10] - Total borrowings rose by 17.0% to RMB 45,766.5 million compared to RMB 38,989.7 million in the previous year[84] - The net debt to total equity ratio was approximately 49.5%, slightly up from 49.1% in the previous year[84] Dividends and Shareholder Information - The board proposed a final dividend of HKD 0.012 per share for the year, compared to no dividend in the previous year[2] - The company proposed a final dividend of HKD 0.012 per ordinary share for the year ending December 31, 2022, totaling approximately RMB 153,000,000, compared to no dividend in 2021[56] - The final dividend record date for the year ended December 31, 2022, is June 12, 2023[95] Market and Operational Insights - The company continues to focus on expanding its market presence and enhancing its service offerings to drive future growth[17] - The group plans to focus on enhancing consumer experience and adapting to changing consumer preferences in the retail real estate market post-pandemic[81] - The average occupancy rate for shopping centers was 93%, with rental income recorded at approximately RMB 2,157.6 million[68] - The total retail sales of consumer goods in 2022 reached approximately RMB 43.97 trillion, a year-on-year decrease of 0.2%[65] Governance and Compliance - The company has adopted all provisions of the Corporate Governance Code, except for the provision regarding the attendance of the chairman at the annual general meeting due to travel restrictions during the COVID-19 pandemic[91] - The audit committee reviewed the accounting policies and the audited consolidated financial statements for the year ended December 31, 2022[93] - The company confirmed compliance with the Securities Trading Code throughout the year[92]

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]