Yongqing is Ready to Set-off
Glory Eco-City Shapes Backyard Garden in Southern Beijing
At the end of December 2014, the long-awaited new airport in Beijing has commenced construction. To complement the supporting industries in the development of the brand-new airport, Beijing City invested more than RMB84 billion for the construction of Beijing new airport city with an area of approximately 300 sq. km.. The focus of the new airport city is to develop strategic emerging industries and modern service industries, which will drive the collaborative development of Beijing, Tianjin and Hebei. With a 15 km distance from the new airport, Yongqing is located in the Bohai Economic Rim and Beijing Economic Circle. It is believed that Yongqing will be an international city in the coming years.
Given the high expectation on the development potential of Yongqing, Guorui Properties Limited (Stock Code: 2329) strives to build the Glory Eco-City. Guorui Properties invited Dahlin Group, an international top construction planning and design company, and Belt Collins, the world-renowned landscape architecture design company, to jointly design the low-density residential area in Mediterranean style and landscape. The forest park in the Eco-City covers an area of 10,000 mu. The spacious picking garden in the city is built around Yongding River and across the whole Eco-City. To enhance convenience of residents, large retail stores, supermarkets, shopping malls, KTV, coffee shops, bars and other ancillary facilities are well-quipped in Eco-City. Glory Eco-City attracts people who intended to stay in Beijing with green and comfortable living style. Glory Eco-City received generally positive reception since its sales launch. As at 31 December 2014, Glory Eco-City's aggregate contracted sales amounted to RMB710 million with an aggregate contracted sales area of approximately 63,600 sq. m..
Guorui Properties is principally engaged in the development and operation of large-scale projects, focusing on exquisite residential and urban area complexes. It also owns self-developing and strategically top commercial properties. With an annual development capacity of over 3 million sq. m., Guorui Properties has completed reputable projects in ten core cities, including Beijing, Shenzhen, Hainan, Foshan, Langfang, Shenyang and Zhengzhou. Among these projects, the 0.88 million sq. m. Beijing Glory City, 1.5 million sq. m. Shenyang Glory City, 1 million sq. m. Haikou Haikuo Tiankong Glory City and other large-scale projects have demonstrated the company's capabilities and business operation experience. In 2014, Guorui Properties developed with strong momentum. The companies acquired Hainan Yunlong land of approximately 1 million sq. m. on 2 April and the company won the tender of Chancheng District Oriental Plaza commercial plot for RMB1.483 billion on June 16.
On 7 July 2014, Guorui Properties was listed on the HKSE main board, realising its connection to the international capital market. Calculating by the closing price of HKD2.61 on 30 January 2015, the current price has accumulated 10% of increase from the offering price. It reflects market recognisation on the Group. For the year ended 31 December 2014, the Group's unaudited aggregate contracted sales amounted to approximately RMB6,206.3 million, representing a year-on-year increase of 22.7%, with an aggregate contracted sales area of approximately 476,764 sq. m., representing a year-on-year increase of 24.2%. The average selling price amounted to approximately RMB13,017.5 per sq. m.. Currently, the Group's land bank is sufficient and Guorui Properties plans to seek for suitable lands in Beijing, Pearl River Delta and Yangtze River Delta in order to further expand its sales network.
As of the 4th quarter of 2014, more than 40 cities in the PRC have removed purchasing restrictions on property. The market recovery is expected to be stronger following the new implementation of mortgage policy. Meanwhile, as the rigid demand of housing is increased and the adjustment of industry fundamentals has decelerated, 1st -tier property market is hopefully recovering in the second half of 2015. As the real estate market resumes its steadiness, companies with steady financials and long-term development plans such as Guorui Properties would benefit.
