Gelonghui, April 26 | Joy City (000031.SZ) released its 2023 annual report. In 2023, in the face of an increasingly complex and severe external environment, the company faced challenges and made steady progress. The sales ranking reached a record high, reaching 46.1 billion yuan in contracts throughout the year, and the sales ranking rose to 29th place, up 4 places from last year; remarkable asset revitalization results achieved multiple retail transactions; the shopping center successfully completed the high-quality opening of five projects: Wuxi Jiangnan Joy City, Jingxi Joy City, Guangzhou, Tianfu Joy City in Chengdu, and Xiqing Dayue Hui in Tianjin; the organizational structure continues to be optimized, laying a solid foundation for steady and sustainable development.

In 2023, the real estate industry was under pressure as a whole. The company adhered to the “double wheel and dual core” development model, and took more measures to strengthen marketing, speed up inventory removal, comprehensively promote fine management and operational efficiency, and achieve steady operation. During the reporting period, the company achieved revenue of 36.783 billion yuan, a year-on-year decrease of 2,795 billion yuan, and a year-on-year decrease of 7.06%. The comprehensive gross profit margin was 26.47%, up 2.41 percentage points from 24.06% in the same period last year; gross profit was 9.736 billion yuan, an increase of 214 million yuan over the previous year, an increase of 2.25%. During the reporting period, the company achieved net profit of 121 million yuan, a year-on-year increase of 2,344 billion yuan, turning a loss into a profit; net profit to mother - 1,465 billion yuan, a year-on-year decrease of 49.17%. During the reporting period, net cash flow from operating activities was 10.642 billion yuan, an increase of 292.61% over the previous year, and operating cash flow was good. At the end of the reporting period, the company's total assets were 198.01 billion yuan, down 7.63% from the beginning of the year; net assets attributable to shareholders of listed companies were 13.843 billion yuan, down 10.13% from the beginning of the year.

By business type, due to the reduction in settlement scale and changes in settlement projects, the current sales business achieved operating income of 29.044 billion yuan, a year-on-year decrease of 13.31%, a gross profit margin of 19.56%, a year-on-year decrease of 0.84 percentage points; with the steady recovery of the consumer market and commercial passenger flow, investment properties and related services achieved operating income of 5.393 billion yuan, a year-on-year increase of 24.35%, and a gross profit margin of 61.24%, up 8.29 percentage points year on year; Hotel revenue of 970 million yuan, up 75.14% year on year, gross profit margin 35.27% year on year, up 35.27% year on year 21.06 percentage points. In terms of investment and operation, the company insists on focusing on resources, controlling risks, and focusing on the layout of first-tier and second-tier cities to ensure high-quality investment. During the reporting period, the company obtained 3 parcels of land with a land area of 76,500 square meters, a planned construction area of 168,000 square meters, and a total land payment of 6.334 billion yuan. The average floor price for the new project was 37,710 yuan/square meter, with an average premium rate of 1%. Judging from the investment layout, the new land reserves are mainly located in Nanjing, Xi'an, and Shanghai. At the end of the reporting period, the company's land reserves were mainly distributed in core metropolitan areas such as Beijing-Tianjin-Hebei, the Yangtze River Delta, the middle reaches of the Yangtze River, the Guangdong-Hong Kong-Macao Greater Bay Area, and Chengdu and Chongqing. The land reserves had a saleable value of about 152.6 billion yuan (excluding land storage projects such as first-level development and renovation).

In terms of fund management, the company strengthened centralized capital management, balanced capital liquidity and risk control; actively broadened financing channels, reduced financing costs, and improved solvency; ensured the company's cash flow safety in an industry environment where the country established a long-term mechanism for real estate regulation and control, and achieved the company's steady financial development. In 2023, the average cost of new loans added by the company was 3.72%; the average annual financing cost was 4.61%, down 0.21 percentage points from 2022. During the reporting period, the company and its holding subsidiaries issued a total of 3 billion yuan in corporate bonds to rationally arrange debt maturities and optimize the debt structure. During the reporting period, China Chengxin International Credit Rating Co., Ltd. and China Securities Pengyuan Credit Assessment Co., Ltd. maintained the company's AAA subject credit ratings.