Jiayuan International : 2016 Interim Results Announcement

(Incorporated in the Cayman Islands with Limited Liability)‌‌‌‌‌‌‌‌‌‌

Stock Code : 2768

CONTENTS

Corporate Information 2

Company Profile 3

Financial Highlights 4

Chairman's Statement 5

Management Discussion and Analysis 7

Other Information 18

Report on Review of Condensed Consolidated Financial Statements 23

Condensed Consolidated Statement of Profit or Loss and 24

Other Comprehensive Income

Condensed Consolidated Statement of Financial Position 25

Condensed Consolidated Statement of Changes in Equity 27

Condensed Consolidated Statement of Cash Flows 28

Notes to the Condensed Consolidated Financial Statements 29

CORPORATE INFORMATION DIRECTORS Non-executive Director

Shum Tin Ching (Chairman)

Executive Directors

Huang Fuqing (Vice Chairman)

Cheuk Hiu Nam (Chief Executive Officer)

Wang Jianfeng

Independent non-executive Directors

Tai Kwok Leung, Alexander Cheung Wai Bun, Charles, JP Gu Yunchang

AUDIT COMMITTEE

Tai Kwok Leung, Alexander (Chairman)

Cheung Wai Bun, Charles, JP

Gu Yunchang

REMUNERATION COMMITTEE

Cheung Wai Bun, Charles, JP (Chairman)

Tai Kwok Leung, Alexander Cheuk Hiu Nam

NOMINATION COMMITTEE

Shum Tin Ching (Chairman) Cheung Wai Bun, Charles, JP Gu Yunchang

COMPANY SECRETARY

Siu Leung Wah (appointed on 14 April 2017)

AUTHORISED REPRESENTATIVES

Cheuk Hiu Nam

Siu Leung Wah (appointed on 14 April 2017)

AUDITOR

Deloitte Touche Tohmatsu

LEGAL ADVISERS

As to Hong Kong law:

Mayer Brown JSM

As to PRC law:

Jingtian & Gongcheng

As to Cayman Islands law:

Conyers Dill & Pearman

COMPLIANCE ADVISER

Messis Capital Limited

PRINCIPAL BANKERS

Hang Seng Bank Limited Wing Lung Bank Limited

Agricultural Bank of China Co., Ltd Nanyang Commercial Bank

Bank of Dalian Nanjing Bank

REGISTERED OFFICE

Cricket Square, Hutchins Drive PO Box 2681, Grand Cayman KY1-1111, Cayman Islands

HEADQUARTERS

Room 1403, 9 Queen's Road Central Hong Kong

PRINCIPAL PLACE OF BUSINESS IN THE PRC

No. 59, Gu Jia Ying Road Xuanwu District

Nanjing China

PRINCIPAL SHARE REGISTRAR

Conyers Trust Company (Cayman) Limited Cricket Square, Hutchins Drive

PO Box 2681, Grand Cayman KY1-1111, Cayman Islands

BRANCH SHARE REGISTRAR IN HONG KONG

Tricor Investor Services Limited Level 22, Hopewell Centre 183 Queen's Road East

Hong Kong

WEBSITE

www.jiayuanintl.com

STOCK CODE

2768

2 JIAYUAN INTERNATIONAL GROUP LIMITED Interim Report 2017

COMPANY PROFILE ABOUT JIAYUAN

Jiayuan International Group Limited (the "Company") (Stock Code: 2768) is an established property developer of large-scale residential complex projects and integrated commercial complex projects in Jiangsu Province, the People's Republic of China ("PRC"). On 8 March 2016, the Company completed the initial public offering with its shares listed on the Main Board of The Stock Exchange of Hong Kong Limited (the "Stock Exchange") (the "Listing").

As at 30 June 2017, the Company and its subsidiaries (the "Group") had a total land bank of more than 6.88 million square meters ("sq.m."). Pursuant to the Group's core development strategy of "major cities and selected key towns" 「( 大城市、 小城鎮」), the Group will focus on the development of (i) residential properties in major cities such as Nanjing, Yangzhou and Shenzhen; and (ii) integrated commercial projects in "key towns" (中心鎮) or towns which are under key development, such as Taixing and Changzhou.

In response to the national policy of continuing urbanisation, and the call for city modernisation emphasised by the Jiangsu Provincial Government, the Group envisages that key towns will be developed into major economic and transportation hubs among neighbouring towns, facilitating the pull factors for urbanisation. The Group expects that the economic development of key towns will also enrich the disposable income of the local residents, which, in turn, will attribute to a healthy demand for residential and commercial properties. The Group also plans to expand the operations by developing residential complexes in cities with sizeable economies and populations with a view to expanding the reach of the Group's business and maximising the Group's return under the projected property demand.

The Group's residential and commercial complexes have been and will be developed into mixed-use community centres, which are designed to provide a high level of convenience and enjoyment to customers. In this regard, the Group strives to infuse the following key values into the developments:

1. Education value: The Group believes that education is of paramount importance to customers as parents. Therefore, the Group focuses on selecting locations with relatively mature school net. In addition, the Group has participated in the construction of five schools in its developed property projects, aiming at building an excellent school net.

2. Leisure value: It is the Group's general practice to space a large portion of its site area for the construction of classical landmarks, European or Chinese theme parks and plazas, aiming to enhance the visual attraction of properties and bring leisure enjoyment to its customers; and

3. Commercial value: The Group also develops retail stores and shopping malls in its residential property projects providing a "one-station" shopping experience to its customers and taking care of the daily needs of residents and citizens nearby.

Therefore, the Group believes that the quality property development projects under the Group are and will be well received in the locations in which the Group operates or plans to expand operation.

Interim Report 2017 JIAYUAN INTERNATIONAL GROUP LIMITED 3