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].