In recent years, China's economic growth remained generally stable while the development of commercial real estate was transforming. The contribution of the service industry to economic growth continues to increase, and consumer demand is still the main driving force for economic growth. The road of commercial capitalization has become the direction of future development, and new retail and other trends have become the focus of enterprises.

In the first quarter of 2018, Joy City Property performed outstanding in operation, brand building and promoting M&A Fund steadily. Particularly, the average unit rental price of Shenyang Joy City and Chengdu Joy City rose sharply by 25% and 29% respectively.

Xidan Joy CityXidan Joy City is situated in the prime location of Xicheng District, Beijing. The project is approximately 200 meters away from Chang'an Street in the south and adjacent to Financial Street and Xinjiekou Commercial District in the north. In the past year, Xidan Joy City actively sought for innovations and changes to explore breakthroughs for results from various aspects such as solicitation, promotion, operation and research. With respect to operation, Xidan Joy City focused on the demand of customers, stood out from the horizontal competitions among department stores in the business district by continued introduction of key international fashion brands. For the first quarter of 2018, the average occupancy rate of Xidan Joy City was approximately 96% and the average unit rental increased by approximately 7% as compared with that for the same period in 2017.

Chaoyang Joy CityChaoyang Joy City is located in prime zone of Chaoyang District, Beijing. It is approximately 5 kilometers away from Beijing CBD Commercial District and is surrounded by a number of high-end luxury apartments with a population of 2.5 million. Chaoyang Joy City organized a number of theme campaigns and large-scale exhibitions featuring culture, creativity, art and interactive experience, creating buzz for promotions and attracting target customers. Meanwhile, through constant brand adjustment, the Group has created more selling points for its shopping mall, thereby expanding the target customer groups of Joy City. For the first quarter of 2018, the average occupancy rate of Chaoyang Joy City was approximately 91% and the average unit rental increased by approximately 15% as compared with that for the same period in 2017.

Tianjin Joy CityTianjin Joy City is located in Old Town, Nankai District with convenient traffic. Tianjin Joy City improved consumers' experience and enhanced its market shares by organizing various themed exhibitions and themed events. Meanwhile, Tianjin Joy City actively sought cooperation with various external resources such as film rights, balloons, Coca-Cola and TV stations which effectively enhanced its cost effectiveness. Targeted events were organised and exhibitions were held in vacant shops to boost the number of visitors to the street districts. For the first quarter of 2018, the average occupancy rate of Tianjin Joy City was approximately 98% and the average unit rental increased by approximately 7% as compared with that for the same period in 2017.

Shenyang Joy CityShenyang Joy City is located at the east end of Shenyang Zhong Street, a traditional commercial pedestrian street, where is right at the core of the local government construction project, which named "Golden Key" and "Dongzhong Street". Shenyang Joy City selected quality businesses by screening and renewed tenancy agreements of quality brands to perform a weeding out and replacement process with an aim to raise the rents generally. It also dug up the rental growth potential of certain lower-end areas. For the first quarter of 2018, the average occupancy rate of Shenyang Joy City was approximately 98% and the average unit rental increased by approximately 25% as compared with that for the same period in 2017.

Shanghai Jing'an Joy CityShanghai Joy City was opened in 19th December 2015 and is located at core district of Suhewan District, Shanghai. Shanghai Joy City adjoins the commercial district on Nanjing Road East, and is adjacent to Qufu station of Shanghai Subway and a number of bus stops with convenient traffic. Shanghai Joy City was widely welcomed among teen consumers for its SKY RING, the first cantilever Ferris wheel erected on the rooftop in China, More Fun 166, the new culture and arts community in Shanghai, as well as "Magical Romantic Landmark" built upon the innovative concept of intimate social place. The Ferris wheel opened for riders on the Valentine's Day and made a great success. For the first quarter of 2018, the average occupancy rate of Shanghai Jing'an Joy City was approximately 93%.

Yantai Joy CityYantai Joy City is located in Zhifu District, Yantai, and is the only shopping mall that enjoys premium sea view in Yantai. The project is adjacent to stations of Yantai Metro, train station of Yantai and a number of bus stops with convenient traffic and excellent geographical location. During the "Crazy Shopping Festival" held on 23 April, the sales reached approximately RMB5.87 million, of which the consumption from members accounted for approximately 69.4%. This opened up new landscape for the marketing in offseasons. For the first quarter of 2018, the average occupancy rate of Yantai Joy City was approximately 88% and the average unit rental increased by approximately 21% as compared with that for the same period in 2017.

Chengdu Joy CityChengdu Joy City was opened in 24th December 2015 and is located in Wuhou District, Chengdu. Situated in the Outer Shuangnan luxury residential area, it belongs to an emerging commercial district in Chengdu. Chengdu Joy City is the first trendy joy park offering a variety of experiences and amenities. Under the experiential business model of life style that keeps abreast with the word, this low-density shopping park covers diverse elements, including catering, entertainment, shopping and leisure. For the first quarter of 2018, the average occupancy rate of Chengdu Joy City was approximately 93% and the average unit rental increased by approximately 29% as compared with that for the same period in 2017.

Beijing COFCO PlazaThe project is conveniently located in the heart of Beijing facing Chang'an Avenue and near the Jianguomen subway station and Beijing station. For the first quarter of 2018, the average occupancy rate of Beijing COFCO Plaza was approximately 78%.

Hong Kong COFCO TowerThe project is situated at a prime location in Causeway Bay, the busiest business and commercial district in Hong Kong. For the first quarter of 2018, the average occupancy rate of Hong Kong COFCO Tower was approximately 92% and the average unit rental increased by approximately 2% as compared with that for the same period in 2017.

Fraser Suites Top Glory ShanghaiThe project is located in the core area of Lujiazui CBD in Pudong New Area, Shanghai, along the Huangpu River and is a top-grade high-end serviced apartment project in Shanghai. In respond to the opening of the Shanghai Disneyland Park, the Happy Summer Package for Disneyland was launched to attract even more short-term customers that take a vacation on a family basis. By organizing a series of activities, customer experience was improved. For the first quarter of 2018, the average occupancy rate of Beijing COFCO Plaza was approximately 86% and the average unit rental increased by approximately 1% as compared with that for the same period in 2017.

Property Development

For the period ended 31 March 2018, the Group's aggregate contracted sales amounted to approximately RMB 1,044 million. The Group's aggregate contracted sales area amounted to approximately 37,876 square meters and increased by approximately 3.97% as compared with that for the same period in 2017.

Hotel Operation

MGM Grand SanyaMGM Grand Sanya is located at the center of Yalong Bay National Tourism and Resort District in Sanya, Hainan. The awareness and influence of MGM Grand Sanya in international market was reinforced by the successful hosting of annual meeting of Boao Forum for Asia; its market share in wedding market was increased by holding celebrity wedding that contributed to ensuring its activity in wedding market. For the first quarter of 2018, the average room rate of the hotel was increased by approximately 16% as compared with that for the same period in 2017 to about RMB 1,808 per room per night and the average occupancy rate was approximately 95%.

St. Regis Sanya Yalong Bay ResortThe St. Regis Sanya Yalong Bay Resort is located in Yalong Bay National Tourism and Resort District in Sanya, Hainan, and is a first-class luxury resort hotel operated and managed by Starwood Group. The room rate for various types in low and peak seasons was determined to secure more customers by analyzing customers' sensitivity towards room rate of different types in different seasons. For the first quarter of 2018, the average room rate of the hotel was increased by approximately 2% as compared with that for the same period in 2017 to about RMB 2,183 per room per night and the average occupancy rate was approximately 83%.

About Joy City Property LimitedJoy City Property Limited (0207.HK) is the leading commercial property developer and operator of COFCO Group, focusing on the development, operation, sales, leasing and management of complexes and commercial properties in the PRC.

The group mainly engages in the development, operation and management of mixed-use complexes under the brand of Joy City, and owns projects include several Joy City complexes in Beijing, Shanghai and other tier 1 and tier 2 cities. The group also has prime investment properties strategically located in first-tier cities, including Beijing COFCO Plaza and Hong Kong COFCO Tower, as well as high quality properties held by the Group, namely Shanghai Joy City Joy mansion one. The Group operates a number of national high-end luxury hotels, including the St. Regis Sanya Yalong Bay Resort and MGM Grand Sanya. These high quality property projects are strategically located in central districts of first or key second tier cities with good investment and appreciation potentials.

Looking forward, the Group will maintain the two-wheel-drive business strategy of "holding and selling properties", the development strategy of "light and heavy asset", and establish the development model of "Joy City Asset Management" combined real estate with finance, enhancing product quality and cost-effectiveness, so as to create value for its customers, shareholders and partners. The group will inherit the ideals of "Sustain Operating for Centuries", and preserve with the "young, fashionable, trendy and quality" brand spirit of Joy City to lead the trend of new city lifestyle of China. It is a mission of the Group to assist in coordination among and development of cities in China and become a leading complex and commercial property developer in the PRC.

Topic: Press release summarySectors: Daily Finance, Daily News^[1][2] http://www.acnnewswire.com From the Asia Corporate News Network

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References

1. ^{^} Daily Finance (www.acnnewswire.com)
2. ^{^} Daily News (www.acnnewswire.com)